marketing managerment

7/30/2019 Marketing Managerment

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Marketing Management (MG 401)Project Presentation

Group 6

Company: AMUL


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AMUL

The BrandAmul (Anand Milk Union Limited) Formed in 1946

Dairy cooperative movement in India. brand name managed by an apexcooperative organisation, Gujarat Co-operative Milk Marketing Federation

Ltd. (GCMMF), which today is jointly owned by some 2.8 million milkproducers in Gujarat, India.

Sterling example of a co-operative organization's success in the long term.

It is one of the best examples of co-operative achievement in the developingeconomy.

Amul has spurred the White Revolution of India, which has made India thelargest producer of milk and milk products in the world. World's biggestvegetarian cheese brand.

Largest food brand in India and world's Largest Pouched Milk Brand withan annual turnover of US $1050 million (2006-07).

Currently Amul has 2.8 million producer members with milk collection

average of 10.16 million litres per day.


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AMUL

The Brand

"Anyone who has seen ... the dairy cooperatives in the stateof Gujarat, especially the highly successful one known as

AMUL, will naturally wonder what combination ofinfluences and incentives is needed to multiply such amodel a thousand times over in developing regionseverywhere.

Alexander Fraser Laidlaw. Cooperatives and the Poor


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SWOT Analysis Strengths An extremely well managed distribution channel that has stood the test of time

as well as expansion.

Wide variety of products.

Low cost inbound logistics from the basic level of the input production.

Well established brand

Sense of trust

Image of social welfare firm which is targeted to help the farmers in ruralregion rather than bagging in huge amount of profits.

Decentralised milk collection from various sources at the cheap rates andcompetitive quality.

Highly influential and the longest running ad campaign (Utterly Butterly Girl). The pasteurization process is being outsourced for much superior quality in the

final products.

It captures almost all of the economy based market segments right from A1 toC2.


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SWOT Analysis - Weaknesses

All the farmers which provide the milk are deemed as co-owners of thecompany under the co-operative ANAND.

Umbrella branding strategy. Substandard product in the market affects thewhole image of the brand.

Some of the products are not very popular in their desired markets.

It supplies primarily in Gujarat, Maharashtra and Rajasthan because FMCGneed to be taken special care in terms of freshness and quality and theirtransportation to far away areas is difficult.

The extreme low class do not buy dairy products from Amul.

There have been incidents of slackening of the supply because of the

problems faced at the very basic level in the input collection. This results inthe huge losses to the company as well as the compromise in the image ofthe brand name. (This was an input received from mess secretaries in IIThostels.)


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SWOT Analysis Opportunities & Threats

Opportunities:

It can expand in the various other parts of the country by either upgradinglogistics or by establishing a new plant in other parts with associations withthe rural farmers. Strong brand name will help gain an edge over the localproducers.

It can sell the processed milk products at the prices comparable to that ofMNCs. However, the capitalist policies are against the basic ideology of thecompany which says that it has to provide the best quality milk products ataffordable prices to the Indian households.

Threats:

Any compromise on the quality will lead to the severe depreciation of itsbrand value. This can happen either by the farmers in the pre productionphase or by the factories in the production cum processing phase.

The competition from the multi national companies like Cadburys inchocolate, quality walls in ice creams and Britannia in cheese markets.

The regional famous brands like Saras in Rajasthan receive regional politicalsupport.


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PESTLE AnalysisPolitical: Political support in Gujarat because most of the rural livings in thestate are directly or indirectly related to Anand. So, no one poses anyunnecessary threats in their operations there. But in other states, the stategovernments may try to encourage their own establishments for more andmore profits.

Economic: Low prices of the local good may cause a shift away from Amulproducts. Also, the magnitude of sales needs to be very large in order to gainprofits due to the lack of expensive products in the range. It is not affected byminor changes in the regional market as it caters to a much larger targetmarket.

Socio-cultural: The ad campaign by the company leaves a strong impact onthe society as the ads generally based on the contemporary issues. They arenot only a source of amusement but also create awareness among itsconsumers thereby leaving positive impact on all the demographic segments

of the society. It has made the farmers of Gujarat self-sufficient and provedcrucial in transforming their lives.


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PESTLE AnalysisTechnological: It uses only pasteurised milk for producing all its goods. Alsouses high quality packaging for its products like tetra pack in which milkremains fresh for a longer period of time. It also provides milk with variousdegrees of fat content depending on the various psychographic sections of thesociety. It has technologically advanced logistics e.g. refrigerated trucks for

purity and freshness parameters.

Legal: It is a cooperative firm and follows the same legal procedures as anyother firm. Although, there is no major threat in the legal arena, Amul hasfound itself in the court on both sides. In one case, it won a copyrightinfringement case against local shops using the name Amul to increase sales.On the other hand, Zydus Cadila Ltd. Brought a stay order on sales on Amulssugar free products claiming copyright violations.

Environment: It is does not cause any kind of externalities in direct orindirect form. Besides, Amul has also launched a mass tree plantation plan

under which it has planted around 152.78 lakh trees by year 2009.


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Market Segmentationa. Market - People who buy packaged edible products.

b. Target Market - People who buy dairy products.

c. Segments:

1. Geographic

i) Gujarat

ii) Outside Gujarat

2. Demographic

i) Income All income classes

ii) Psychographic Lifestyle, Living standards.

iii)Age Different segmentation for different products - all age groups

d. Target Segments:

1. Geographic

i) Gujarat

ii) Neighbouring states i.e. Rajasthan and Maharashtra

2. Demographic:

i) Income groups: A1, A2, B1, B2

ii)Age: Amul Kool - teenagers, All age groups otherwise

iii) Psychographic: Health conscious people - double toned milk, Nutramul etc.


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The 4 Ps of MarketingPRODUCT:

Variety: A wide range of products - large width of product lines - depth of the productlines is also considerable

Quality: Comparable to MNCs - motto of Amul - providing supreme quality ataffordable prices

Design and Packaging:Average households needs - affordable and good packagingBrand Name: Single brand name - AMUL - considered one of the most trusted - Brandperception - social initiative rather than a profit motivated company

Sizes: Available in different sizes - catering to the different needs. Mainly meant for theretail purposes not B2B

Services: No direct services retails is most of the market share - has also launched a

cyber storeWarranties: No warranty provided - company follows routine protocol of consumercomplaints in case of any dissatisfaction

Returns: major share in returns - AMUL butter - market leader Milk and ice creamscontribute tremendously to the returns


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The 4 Ps of MarketingPRICING

List price: Mentioned on the product itself decided with motive to achieve minimumprice without compromise in quality

Discounts and Allowances: No discounts or allowances direct retail based marketindividual specific - absence of B2B transactions

Payment period: Payment Instant in almost all casesCredit Terms:As such there are no credits terms by the company itself but the dealersmay see the credit terms at their own level.

PROMOTION

Sales Promotion: No specific sales promotion events

Advertising: Various ad schemes Has had the most successful ad campaign in thehistory of the Indian consumer market - signifies the taste ofIndia by promising thebest taste and simultaneously pointing out relevant issues

Public Relations: Management has people who listen and respond to the complaintsposted by the consumers regarding any aspect of the product


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The 4 Ps of Marketing

PLACE

Channels: Extensive channel to supply the products to all the retail stores

even rural regions

Coverage and Locations: States of Gujarat, Maharashtra and Rajasthan.

Inventory: FMCG inventory is minimal transactions are rapid

Transport: huge and advanced system of transportation


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New Product

The team has envisioned a horizontal relatedexpansion plan

The new product includes. The product - traditional Indian Sweets orMithai.

The brand name of the product will be

Chandravilaas


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Cow logo courtesy: DeviantArt


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STP AnalysisSEGMENTATION

Psychographic: A semi-urban to urban lifestyle - packaged sweets will be

costlier than the normal sweets available in the market More hygienespecific Desire brand value in the product - contemporary youth whichrespect Indian traditions and culture is also a major segment

Behavioural: Occasions at which the sweets are used as gift items e.g.Diwali, Holi, Rakshabandhan etc

Geographic: Only Rajasthan, Gujarat and the adjoining states due to thetransportation constraints and the behavioural preferences


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STP AnalysisTARGETING

People living in these specific geographic regions with moderate income level

The target consumer prefers buying sweets which are hygienically prepared

and have brand value associated with themPeople who have their roots in traditional Indian culture but with decentfinancial footing prefer traditional sweets over chocolates and othercompeting goods

POSITIONING

Trusted household FMCG brand which has been in the circulation in themarket for many years. Initial market wave is expected to be in favour of thelaunch of new comestible item. Bikaji poses a threat in Rajasthan as it has aheadstart in the packaged sweets market. Amul would be positioned as abrand that the new India trusts. It would be the brand of the youth which

respects Indian culture and tradition.


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Policy and Strategy DecisionsProduct Design: The product will be available in packet sizes of 250grams, 500 grams and 1000 grams. All packets will be gift packedwith ribbons and will have a very regal/festive look to them. The aim toproject the product in the same festive light that Cadbury has achievedwith its celebrations brand.

Pricing strategy: Brands like BIKAJI in Rajasthan prices at 80 INRfor 1 kilogram. The price of our product would range from 90 to 100 perkilo gram depending on the geographic location in which we are sellingthe product. Also it will be dependent on the variety of products.


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Policy and Strategy DecisionsPromotion strategy: Initially, a small complimentary pack of sweets ofanother variety will be given free with a large pack of sweets. This willintroduce the whole range of sweets to the consumer more effectively. Major

part of promotion would be during the festive season. There will be specialpacks and assorted ranges priced at various levels. These will be aggressivelypromoted and advertised. The aim would be that the user is compelled to buythe normal pack of the other mithaitoo.

Distribution strategy: Current supply chain would be used transport andwork force channels which distribute the milk products. As such Amul will notrequire expanding the given level of infrastructure to distribute the newproduct as both old and new products are equally perishable and require thesame amount of quality control Our fort would be that the sweets would beeasily accessible as easily as Amuls other milk products.


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Thank You!

So long

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