A case study on Brand Amul

Submitted to- Submitted by-

Prof. Pragya Keshri Anil Gautam

Ajay Chodhary

Purushottam Prajapati

A case study on Brand Amul

•In 2001 Gujarat Cooperative Milk Marketing Federation(GCMMF) planned to Leverage its brand equity and distribution under the brand Amul to make it India’s biggest food brand.•GCMMF entered in market with the launch of vegetable pizzas under the brand SnowCap in Ahmedabad and also planning to launch in western India.•Pizzas were offered in four flavours : plain tomato – onion – capsicum , fruit pizza, mushroom and jain pizza . The price range was in Rs 20/-- 25/-.

• GCMMF planned to open 3000 pizza retail franchise out lets all over the country by 2005. The pizza would be made at the retail outlets. The technical training and the recipe for the pizza would be provided by GCMMF.

• The GCMMF would provide cheese at lower rate than market and vegetables would also be provided at wholesale rate to retailers.

Cont..

Cont..• In 1996, after a survey Amul launched ice

cream,curd, paneer, cheese and condensed milk.

• In 1997 Amul launched ice creames after HLL Kwality, Milkfood and Dollops HLL’s these product positioned as the ‘Real Ice- cream’.

• In 1999 it launched “Masti Dahi” each pack of 400 gm. At Rs. 12.

• In 2000, Amul re-entered the carton milk market with the launch of “Amul Taaza” it was non -sweetened ,plain, low fat milk.

Cont..

• Mozzarella cheese which was used in pizza ,Amul tried to promote it in pizza making copanies.

• In july 2001, Amul planned to enter the instant coffee market through a tie- up with Tata Coffee for enchasing its strength in distribution network.

• In August 2001, it desided to enter the ready- to- eat stuffed paratha, cheesburger, cheese and paneer pakoda, and cheese sandwhich segment under the brand of SnowCap including tomoto sauce and ketchup.

• It also tied up Campco to supply cocoa beans.

SWOT AnalysisStrengths

• Price of Amul’s pizza range Rs 20-25/- and available in four flavors'.

• It is well established and having strong distribution.• Amul’s milk products portfolio is leading in market

and it also having competitive position in ice-cream and market leader in cheese.

• It’d provide technical training and recipe for the franchise and would negotiate with bulk suppliers of vegetable to get these at wholesale rates.

• It’d also supply cheese at cheaper rate.

Weakness :- • It was compelled to buy all the milk that was

produced in Gujrat . So the pressure was to make and market more and more processed milk products.

• Though the pizza would be made by retailer s so Amul would have little control over the quality of the pizzas .

• Dealer s are been given less commission as compared to the competitors‘.

• Analysts also pointed out that amul might not have the financially strong.

Opportunity-• The prices of Amuls products are

comparatively less so it can penetrate the market .

• If pizzas become a mass consumption item then the sell of mozzarilla cheese would we increase.

• The entry into the confectioneries market can increase the consumption of milk.

Threats-• If the existing brand of pizzas also lower down

the prices then market will become competitive.

• Competitors can increase more margin to retailers.

• If retailers could not maintain the same taste and quality through out the country then it can deteriorate the brand SnowCap.

Q & A-

Q.1/ Ans- The globalization and liberalization of the Indian economy has increased per capita income which results the change in life style and the food taste of people.

Q.2/Ans- Amul set up cold chain for new range of frozen food like ice creams and another chain for perishable items like curd.

• Q.3/Ans- CGMMF used the brand name SnowCap for its pizzas because it do not want to take risk of defame, if brand become unsuccessful in the market.