AMUL

About the Company:

Over the years, Amul, is amongst one of the most beloved brands of our country, has become the taste of
India, just as they say in their taglines. A brand so peculiarly Indian, that has been a part of our lives for
nearly sixty-three years now and is an Important part of daily lifestyle for most of the Indian’s. As a brand
AMUL has grown from just being a mere differentiating factor to protect the interests of producers and
consumers. AMUL inspired ‘Operation Flood’ and gave the clear signs that the ‘White Revolution’ is started
in India. It all started with two village cooperatives and 250 litres of milk per day, nothing but drop as
compared to the flood it has become over time.

Amul (Anand Milk Union Limited), was established in 1946. It is the biggest vegetarian brand located in
Anand, Gujrat is one of the best examples of co-operative achievement in developing economy.

Amul is the country’largest milk manufacturing cooperative it's busy with international food market chain
WALMART to sell its vary of dairy farm product and
have conjointly busy with Glaxo over the assembly of baby food in Asian nation.
Amul value-added sweet milk powder, a second complete of baby food and a
high macromolecule exchange food. It conjointly sells its product to Asian nation. Amul has list of product
marketed to varied countries few of its product area unit Amul butter,
Amul change of state butter, Amul spread, Amul dish cheese, Amul shrikhand,
Amul contemporary cream, Amul fat milk, Amul pure drawn butter, Amulya dairy

farm bleach, Sagar Tea and low bleach, Amul butter milk, Amul ice creams like cassata , cool candy

 and frostik, Amul chocolate and Amul Eclairs.

AMUL is taken into account as India’s best legendary native complete across all classes. Indians like dairy
farm frozen dessert instead of frozen desserts and Amul encompasses a big selection within the dairy farm
frozen dessert phase, 35% market share within
the national frozen dessert market. Amul is biggest sourcing base for milk product in Asian nation,
individual’s area unit softer shopping for product within the price for cash phase and Amul is well gift
during this division.

Gujarat Cooperative Milk promoting Federation (GCMMF) is India’s largest

food product promoting organization. Amul is state level apex body of milk cooperatives in Gujarat that
aims to supply remunerative returns to the farmers and serves the interest
of customers by providing quality product. it's been awarded a “Trading House” standing & has received
the APEDA Award from Government of Asian nation for Excellence in food product Exports for the last
eight years. Amul is during a position to manage these assets to effectively command the market leader’s
position within the rising contemporary dairy
farm product market thanks to its milk process capability. Amul has invariably been a model to that
different cooperatives have searched as AN example and
inspiration additionally collectively from that several have benefited.

Success in Distribution: the main development on the distribution front was the event and alignment of 4
distribution highways-those of contemporary product, Chilled product,
Frozen product and close product. this can be a major accomplishment as a result
of it permits them to develop synergies among all product lines and to leverage these highways to
introduce and distribute new product as per market demand.

No different organization in Asian nation has been ready to develop this type of channel
activity to date.

About the Industry

Dairy industry occupies an important place in animal husbandry. It embraces the production of milk, its
preparation for sale as well as the manufacture of dairy products. The Central Statistical Organization,
Department of Statistics. Government of India, have under the annual survey of industries, classified dairy
industry under industries major group-20, Food Manufacturing Industries.

A dairy industry depends on milk. Milk is raw material for dairy product. Milk is the ‘nature’s perfect food’
for all ages. It has almost all the vital nutrients needed for growth and well-being of the human body. Milk
is the richest source of calcium and essential amino acids which is good for bone formation. It is
particularly beneficial for people recovering from sickness, children, sport person, aged ones, women etc.
The dairy industry of India has grown from an almost completely unorganized but vastly complex industry
of a large magnitude to an organized industry during the last 55 years with an annual milk production of
about 29 million metric tonnes in the year 1979-80. India’s milk production in 2001 is forecasted at 81
million tones. In India it took nearly 30 years to achieve self- sufficiency in milk production. The country
had produced 162.53 million tones of milk in 20116-17. India continued to rank third amongst the countries
of the world. The first two position being held by Union of Soviet Socialist Republics and United States of
America.

The dairy development in India has twin objectives of increasing total milk supply on commercial basis and
diversifying agricultural structure by developing dairy as a supplementary or principal occupation which
would help increasing the income of the small and marginal agriculturists and/or landless labourers. Dairy
industry occupies an importance place in Indian economy. It embraces the production of milk, its
preparation for sale as well as manufacture of dairy products. It gives an opportunity to about eight crores
families across India. It processes tremendous potential for providing employment to the massive rural
population.

It can equitably distribute the gain and thus assists even the weakest sections of our society. Further, milk
is one of the few commodities which give the producer a large share of what the consumer pays for it.
Thus, dairying is a very important instrument for the upliftment of the rural economy of our country

. The composition of the milk production in India has been dominated by buffalo milk with 76 per cent of
the total milk production as compared to 94 percent of cow milk in the total production of milk in the ward.
In additional, dairying provides a source of nutrition and additional income to our farmers. Inefficient and
poor maintenance of large number of cattle in the context of available resources could be responsible for the
fact that although there are 12 percent more dairy animals in India than four leading countries put together,

India produces less than 12 percent of the milk produced by these leading countries of the world.

India is the biggest producer of milk on the planet, yet just 18-20% of the complete milk produced is being
channelized in a sorted out way. It contributes around 26% of the absolute farming GDP. India's milk
generation is evaluated at 165.5 mt in 2018, an expansion by 3.% from the earlier year.

Segmentation of Amul

Segmentation is divided into four categories Geographical, Demographic, Psychographic, and

Behavioural.

• Demographic Segmentation- Demographic segmentation is based on age gender, family size,

occupation, income, education, income, race, and nationality. Amul segmented its products based on
age and gender. There are various products under a single roof for everyone. For kids, various
products of Amul are Amul Kool, chocolate, energy drink, Amul milk. For youth, various products of
Amul are Amul pizza, Amul pizza cheese, Amul cheese spread. For women and older people, there is
Amul Calci+.

• Psychographic Segmentation- Psychographic segmentation is based on the lifestyle, social class,

personal values, and attitudes. Amul segmented its market based on calorie-conscious and health-
conscious. For calorie conscious, the products are Amul lite butter, sugar milk powder and skimmed
milk powder. For health-conscious, the products are nutramul, Amul Shakti.

• Industry based market segmentation- Market segmentation of Amul is done on the basis industry
of milk and butter/cheese/ghee. The milk industry comprises of ice cream manufacturers, coffee
shop chains, restaurant/food chains, and butter/ghee/cheese comprise of bakery and confectioneries,
Pizza and snack retailers. The data for the market share of various products is as follows-

 Market
Share

90%
85%

50% 50%

40%

25%

10%

Bu e Milk Powder Chees Ice Sweet Chocolate Chocola

r e Cream s Drink te

Targeting for Amul

Targeting is a strategy adopted by the organization where they break the large market into various smaller
segments to focus or target a band of customers within the market. To concentrate on product-specific
audience organizations, use target marketing. Target market comprises a set of buyers who share similar
needs or qualities that an organization chooses to serve.

Market targeting are of four main types: -

Undifferentiated marketing Differentiated
marketing
Concentrated marketing (niche marketing)
Individual marketing
• Person
• One to one

Amul is currently following a differentiated marketing strategy as Amul uses its brand name to attract the
target market. With time and again Amul introduces specific offers as well as the quality of its product
attracts the customers over its competing brands.

Talking about the income-based targeting Amul targets regular middle-class people. It is so because the
higher-end customers have various other high-end products as an alternative in ice cream and similar other
products, however, for various other products like butter and cheese which has no close substitutes or
tt

alternatives, Amul targets both high- and low-end customers.

Amul's target audience in terms of the age category includes both children as well as adults. Amul caters to
the needs of all the age groups. For example, its product ranges from roti softener to pouch buttermilk to
Amul chocolates and ice-cream.

Amul does not indulge in premium offerings of products as Amul does not believes in offering two or more
complementary products together at a lower price for the promotion of the products.

It is a mass-market player as it covers the major section of the country providing a variety of products
thereby satisfying the daily needs of customers.

Its unique selling point is its quality along with the affordability as the prices of its product suits all the
major three income levels namely upper, middle, and lower. Since a majority of the consumers base
comprises middle- and lower-income groups, so the organization adopted the low-cost pricing strategy to
make sure that it can be affordable and thus ensuring a larger portion of market share in its kitty.

Positioning of Amul

Amul has top of the mind positioning because it is the first brand that comes in mind of customers while
talking of ice-cream, milk, cheese, butter or any other milk-based products.

It positioned itself as a brand for butter that everyone’s used in their daily meals. From a category point of
view, it serves the purpose of bread spread like all other brand's butter. But it has little more salt in it which
makes it that delicious flavour and the competitive advantage over other brands.

Amul butter also used by people of all classes, i.e. whether they belong to the upper class, middle class or
lower class.

➢ Amul has carefully cultivated its family-based image and run various campaigns like "Taste of India"
it helps in maintaining the emotional touch for their brand.
➢ The Amul butter is now a family product and acquired a homely image

➢ It is also the best quality butter at a reasonable price, the brands also created a huge supply chain and
distribution network across India and has a strong link back to the sourcing farmers.

Amul essentially uses indirect action advertising to create a long-term relationship with the consumer and
never focused on aggressive selling tactics.
The basic communication strategies used to promote the AMUL brand are:

The various media platform is used by AMUL to increase awareness in the market: -

 ➢ Broadcast Media (Television Shows)

➢ No- broadcast Media (Cinemas)

➢ Print Media (Newspapers, Magazines)

➢ Internet & Social Media

➢ Outdoor Media (Billboards, Hoardings)

• Amul is inheritably associated with the image of its logo, the Amul butter girl, serving as a functional as well
as image brand over the past years it has cultivated into a brand of its own, is a very strong asset for the firm.
This is the brand concept map of the Amul butter girl moppet.

Marketing Mix of Amul

• Product: The existing product line of Amul includes Amul dahi masti, sagar pure ghee, amul
slim and trim skimmed, amul gold, amul fresh cream to the likes of product like amul
processed cheese, amul pure ghee, amul dark chocolate, etc.

• Price: The Prices of various products of amul are kept as such that people belonging to all the income
level namely high, medium and low are in a state to afford to the product. The main strategy of Amul is
that along with quality it focuses on the affordability. Amul follows the low-price cost strategy.

• Place: Amul has a huge distribution channel because its products like ice creams, milk, cheese and
various other products are consumed all over the country. Amul has two different distribution channels
one being the procurement channel and other being the distribution channel. Amul’s distribution
channels have various agents, distributors, dealers and retailers.

 • Promotion: Amul runs various advertising characters like that of the amul girl. Amul only denotes 1%
of its margins to advertisements because it does not want to give away margins so the advertisements of
amul do not include any celebrity. Amul mainly advertises through outdoor, trade promotions, sales
promotions and various other schemes.

Innovative Strategies

• Advertise Individual Products- Amul is famous for its consistent advertisements. Amul raises
voice against issues by their advertisements which is uncommon in FMCG product advertising.
Amul should focus on advertising of individual products to increase the sales of each product.
• Maintain its high quality to survive cut-throat competition- Amul should focus on the quality of
the product not only to expand its market share but also to retain its current customer base.

• Study of the competitor product- Amul should focus on the strategies adopted by the competing
firms and plan accordingly to target the consumers. As there are some products of Amul like amul
basundi, gulab jamun and chocolates which are not as popular as other products like amul ice cream,
so market research of products needs to be done to understand the cause behind it.
• Use a celebrity brand ambassador- Amul can advertise its products by a celebrity. This can be
done for the products which are not generating revenues up to the mark or the new launched
products as well.
• Provide free samples with associated products- Amul can provide free samples with the associated
products to gain trust and to increase its sales.
• Effective Market Analysis- The FMCG market is highly competitive in nature and includes both
organized players as well as unorganized players. Both direct and indirect competition are
important in FMCG sector. The analysis needs to be done as in some cases Amul is found to be the
market leader and in some cases as the competitor in the market.
• Targeting should be done on the basis income level- Amul should do targeting of its products on

 the basis income of the consumers. The price range of the products should be diversified.

Consumer Behaviour

• Consumer buying behaviouris the sum total of a consumer's attitudes, preferences, intentions, and decisions
regarding the consumer's behaviour in the market place when purchasing a product or service. The study of
consumer behaviour draws upon social science disciplines of anthropology, psychology, sociology, and
economics.

• Consumer behaviour is broadly studied field. It lets the companies understand how consumer decides about
buying their product or acquiring services. Marketing managers are always interested to know more about
consumers’ behaviour so they can prepare better communication and advertising campaigns and messages
about their products and services. Consumer makes buying decision every day and many people don’t even
know the factors which derive them to this decision. Usually the factors affecting consumer buying
behaviour include psychological, social, cultural and Buying the new home cleaning service involves
consumers’ research for the best option available and it might take various factors in account in its
decision-making process. This thesis is about studying which factors of social, cultural, personal or
psychological characteristics has the most effect on consumer decision making process when selecting
home cleaning service company.

• The research work is carried out to highlight the important elements for customers in the household and let
the service provider understand overall picture of customer behaviour towards the Amul company with the
help of understanding the factors affecting consumer behaviour for choosing a certain service provider.
Better understanding of consumer behaviour would let the marketers make the service structure as desired
and attractive for the household customer and maintain business activities according to customer demands.
This research work would let the customer record their voice in understanding the companies what kind of
service do they want which can improve their life quality with the tailored services by the service provider.

Brand Loyalty and relationships

The Brand Loyalty is the faithfulness and trust of the consumer in a particular brand irrespective of the
offerings by the competing brands. The brand loyalty is the consumer’s emotional decision to buy a specific
brand again and again. The consumer understands that the brand meets their expectations and identifies with
the consumer on a personal level. Hence It is always cheaper to retain existing consumers than it is to acquire
new consumers, and brand loyalists aren’t just repeat purchasers. Brand loyalty is very important for the

company. First, brand loyalty reduces the production cost as the sales volume is higher. Secondly, companies
with loyal consumers not need to spend huge money on promotion of the product, which will allow the
company to either retain more profits as deposit or to invest this earning elsewhere. Third, companies may
use high pricing policy that increases profitability. Finally, loyal consumers always recommend products/
services that they like to their friends and relatives that also increase consumer base and profit also.

Brand Personality And Brand Personification (Image)

• Amul is the brand name for milk-based products manufactured by Gujarat Co-operative Milk Marketing
Federation - a state level apex body of milk cooperatives in Gujarat started in 1946. Its major functions
involve collection of milk from farmers, procuring and processing the milk and most importantly, marketing
of milk and milk products. Amul is synonymous with White Revolution, instrumental in making India
world's largest milk producer India. Its product range includes milk powders, milk, butter, ghee, cheese, curd,
chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others.

• According to Kapferer, more than the concepts of brand image and positioning, brand identity is more
important. It is an identity which the brand defines for it self. The identity of a brand is important to ensure
durability of the brand and make it more coherent and realistic.
• There are 6 aspects to brand identity which are addressed by Kapferer's Prism -
• Physique - Refers to physical features which generate instant recall and awareness
• Personality - A characterisation of the brand, providing it qualities and mannerisms of a human being to
explain its products and services
• Culture - Values that inspire the brand and are reflected in its products and its communication
• Relationship - The brand in a way represents the transactions and exchanges that take place between people
and forge a bond between them
• Reflection - The brand builds an image of the user/buyer that it is addressing - the image as a result of brand
usage by the customer.
• Self-Image - The consumer of the brand makes an image of himself as a result of the usage of the brand.
• Physique - The connotations associated with Amul with respect to this aspect are the unique taste of its milk
products, the "utterly, butterly" Amul girl and the butter.
• Personality - The connotations associated with Amul with respect to this aspect are the facts that it is a
completely Indian product, traditional and innovative, simple yet honest - someone who will never cheat the
consumer and only take what is its due.

• Culture - The connotations associated with Amul with respect to this aspect are that there is a co-operative
culture with emphasis on sharing and being socially responsible
• Relationship - The connotations associated with Amul with respect to this aspect is reliability which
consumers perceive on basis of product experience. Another feature that is associated with this aspect is
being sociable - Amul is a part of the consumers' social lives as experienced by the extensive use of Amul
products
• Reflection - The connotations associated with Amul with respect to this aspect is the feeling of care and
concern for loved ones and also, a deep respect and orientation for values.
• Self-Image - The connotations associated with Amul with respect to this aspect include being fun-loving, a
proud Indian, who at the same time, believes in quality and is a firm believer in values.

• PART II - CHARTING THE PRODUCT LIFE-CYCLE OF AMUL

• Amul is the brand representation for Gujarat Cooperative Milk Federation - formed in 1946 to give farmers
their due and protect them from unscrupulous middlemen. Apart from collecting milk, Amul had to find ways
to make efficient use of the surplus milk it had which gave rise to launch and marketing of milk-derived
products, starting with butter
• Launched in 1955, butter was one of the first milk products offered by Amul which also helped it to beat its
rival, Polson Dairy. The same year, it launched ghee and skimmed milk powder which also garnered success.
In 1959, came processed cheese from its stable followed by cheese powder in 1970's which by 80's, had
become popular
• Economic reforms of 1990 brought lifestyle changes and changes in tastes. The management of GCMMF
thus, wanted to go with the trends. Thus, there was emphasis on higher quality and diversification of product
portfolio. An increase in milk production meant that an increase in consumption base of milk -based products
was important to make its products more regular in the households.
• In 1996, an IMRB survey for GCMMF showed that the consumers wanted that Amul should come out with
the following products - ice cream, curd, paneer3, cheese, and condensed milk. Thus, the next few years were
focused on these
• In 1997, Positioned as the 'Real Ice-cream,' Amul Ice cream was one of the few milk-based ice creams in the
market. Branded yoghurt got a start in India for the first time, when Amul came out with Masti Dahi in 1999.
• In January 2000, Amul launched "Amul Taaza" - non sweetened, low fat, carton milk which served
functional and lifestyle purposes. In November same year, came mozzarella cheese which had use in pizzas.
• 2001 saw Amul tie-up with Tata Coffee for instant coffee distribution in July while in August, they entered
ready-to-eat segment with parathas, cheeseburgers and sandwiches under Snowcap brand which also had
ketchup. Soon, Snowcap came out with pizzas in flavours like tomato-onion-capsicum, fruit pizza
(pineapple-topped), mushroom and 'Jain pizzas'(pizzas without onion or garlic). Amul also entered the
domain of soups called 'Masti' in tetra packs with flavours like Hot 'n' Sour and Tomato.

• In 2003, Amul discontinued its flavoured milk brand Shakti and launched Amul Kool instead in an attempt to
target the youth with its cool and trendy positioning but with a nutritional base
• In 2007, bottled water segment caught Amul's attention and it looked to launch Narmada Neer brand of
water, in the aftermath of its failed attempt earlier to market Jaldhara brand of bottled water of NDDB.
• In July 2008, bakery segment became the next area to venture in with the plans of GCMMF to manufacture
biscuits and cakes
• In February 2010, GCMMF declared plans to launch a tea brand having already sold it to their milk
producers at concessional rates. In July same year, came the plans to market a milk-based sports drink called
'Stamina' which would compete directly with Gatorade and is aimed at sports professionals
• More recently, Amul has announced plans to launch pro-biotic lassi by the coming summer season in major
metros of India having already test marketed it in Ahmedabad.