Sub title- Strategic Management

AMUL

By: Pooja H Shah

Index

IntroductionProduct Variants Business ModelBusiness StrategyMarketing and Advertising StrategiesMarketing MixMarket SegmentationTargeting and positioningProduct StrategiesConclusion

• Formed in 1946, is a dairy cooperative movement in India.

• A brand name managed by Gujarat Co-operative Milk Marketing Federation(GCMMF)

• Jointly owned by 2.79 million milk producers in Gujarat

• Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

Introduction

• Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.

• Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries

• Fresh plans of flooding the markets of Japan & Sri Lanka.

• Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs

900 crore organized ice-cream segment.

1. Milk2. UHT Milk3. Bread Spread4. Cheese5. Beverage6. Ice cream7. Paneer 8. Dahi9. Ghee10. Chocolate11. Mithai

12. Mithai Mate13. Pouched Butter Milk14. Nutramul15. Milk Powders16. Recipies

Product Range

• Deliver profitable and equitable returns to a large number of farmers for a long period of time.

• Develop the supplier over the long term through social change

Objectives

Am

ul B

usin

ess

Mod

el

Developing Demand> Limited Purchasing power, Consumption level,> A low cost strategy products

The distribution network >dry and cold warehouses>cash transactions throughout the supply chain

Umbrella brand>Common brand for most product categories

Third party service providers

Logistics of collection ,distribution and sale of dairy products

Amul’s Business Strategy

Robust Supply chain

Low Cost Strategy

Diversified product mix

Strong distribution network

Technology and E initiative

Sucess

Reasons Behind the success

• High collection rate of milk• Required increasing membership with more village

societies• Better Cattle management-• Better milk yield• Ensure cost to farmers and high quality to

customer at low prices

Reasons behind success

1)Quality No brand can survive long if it’s quality is not equal or

exceed customer expectations. Incase of food product hygienic, taste, bacteriological &

organo elliptic standard ± main essence.

2) Value for money Customers get more than what they pay. Keep price fair & do best to ensure that retailers don’t gain

at the expense of customer.

Marketing and Advertising Strategies

3)AvailabilityBrand available when and where customers want.Amul has nation’s finest distribution network.

4)ServiceCommitted to total quality.

Marketing and Advertising Strategies

Product• Dairy Products• Cooking Products

Price• Low Pricing Strategy

Place• Rural & Urban Market• International Market

Promotion• Advertisements

Marketing Mix

• One of the most conservative FMCG entities, GCMMF spends a mere 1% of its turnover on promotions.

• Amul butter girl is one of the longest running ad campaigns in the country for 41 years.

• Intelligent marketing of milk, icecream and butter milk.

Intelligent Marketing

Expansion to foreign shores GCMMF had signed an agreement with Wal-Mart to stock its

shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul's Mithaee Gulab Jamuns are few of the products marketed in the US markets.

50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and third-generation Indians, offering low-fat versions of its brands, would make a lot of commercial sense.

Hence targeting the large Indian community in the US markets with its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.

Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages)

Being exposed to a brand, it is natural for a customer to try more products

Defense Strategy

Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Café, as it has a cool imagery associated with it.

Segmentation

• Changing retail environment • Striking out on its own, with Amul Outlets or

parlours to deliver consumers total brand experience

• Launched in 2002, there are now over 4700 Amul parlours across the country, which contributed 3% to the brand’s total turnover in year 2009.

Targeting

• Given this wide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years.

• After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable.

• The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink

Promotion

Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various

issues increased brand’s fan following.

Promotion

Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets.

The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amul’s website.

Slogan Likho Disneyland Dekho Contest

Promotion

AMUL sponsored the Singing Competition AMUL Star Voice of India, Amul music ka maha mukabla

Promotion

:

1. Product Positioning Strategy- Low price Amul Ice - Creams made Kwality walls

life hell. Chocolate milk was launched ‘Amul Kool koko’

2. Product Re-Positioning Strategy- Jaldhara – Narmada Neer

Successful Product Strategy

3. Product Overlap Strategy – Amul Processed Cheese Vs Cheese Spread Nutramul Energy Drink Vs Amul Kool

4. Product Design Strategy – Use of Utterly – Butterly Girl since 1967

5. Product Elimination – Eliminated Jaldhara – bottled water

Successful Product Strategy

6. Diversification Strategy – Dairy ProductsEg: Fresh Milk, Milk Drinks & Desserts, Bread

Spreads, Cheese Products

Non Dairy ProductsEgg: Veg Oils , Snacks, Instant Food

Successful Product Strategy

• BRITANIA• NESTLE• HUL• CADBURY• MOTHER DAIRY

Competitors :

Butter Britannia NestleCheese BritanniaBaby Food Nestle HeinzDairy Whitener Segment Nestle BritanniaIce creams HUL Kwality

Different segments& Different Competitors

Chocolates & Confectionaries

Cadbury NestlePizza Pizza Hut Dominos Nirulas Frozen pizzaCurd Nestle Mother DairyUltra High Treated Milk Nestle Britannia

Sweet Condensed milk

NestleCottage Cheese (Paneer)

BritanniaMilk Additives

Cadbury Smithkline

BeechamFlavored Milk

Britannia Nestle

• Amul has risen from Indian soil and it remains Indian in every sense.

• There is ample scope in the low priced segment as also in other categories.

• There are a significant number of retailers who are currently stocking more than two brands.

• Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.

CONCLUSION