AMUL Marketing Strategy

World's Largest

Pouched Milk

Brand

World's Biggest

Vegetarian Cheese

Brand

LARGEST FOOD BRAND AND BUSINESS IN INDIA

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

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.

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

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.

INTRODUCTION

BUSINESS MODEL Amul followed a unique business model.

"Anand pattern" cooperative system

Every day Amul collects 8.4 million liters of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country.

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

GCMMF has written and re-written rules of the game.

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 Maharani contest: in this contest questions about Amul are asked

Promotion

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

Promotion

SUCCESSFUL PRODUCT STRATEGY:

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

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:

BRITTANIA NESTLE HLL CADBOURY MOTHER DAIRY

Competitors :

Butter Britannia NestleCheese BritanniaBaby Food Nestle HeinzDairy Whitener Segment Nestle BritanniaIce creams HLL

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

THANKYOU…