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THE UNIVERSITY OF

BURDWAN

DIRECTORATE OF DISTANCE EDUCATION

Paper : Marketing Management (MBD-301)

SOFIUL ISLAM

Enrolment No.: DDE/MBA/Jan2010/36Session: 2010-2012

:: SUPERVISOR ::

DR. PRADIP KR. MALLIKTHE UNIVERSITY OF BURDWAN

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CONTENTS

1. Declaration

2. Acknowledgement

3. History of Amul

4. Product Line

5. Market Segmentation

6. Market Segmentation of Amul CHOCO CRUNCH

7. The Process-Data Model of Market Segmentation

8. Marketing Targeting

9. Marketing Mix

10.Pricing Strategy

11.Promotional Strategy

12.Bibliography

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DECLARATION

SAFIUL ISLAM

(Signature)

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ACKNOWLEDGEMENT

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HISTORY OF AMUL

Amul was formally registered onDecember 14, 1946. The

brand name Amul, sourced from the sanskrit word Amoolya,

means priceless. It was suggested by a quality control expert in

Anand. Some cite the origin as an acronym to (Anand Milk

Union Limited). The Amul revolution was started as awareness

among the farmers. It grew and matured into a protest movement

that was channeled towards economic prosperity. It is a dairy

cooperative movement in India. It is a brand name managed by

an apex cooperative organisation, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly

owned by some 2.41 million milk producers in Gujarat, India[1].

It is based in Anand town of Gujarat and has been a sterling

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

term. The Amul Pattern has established itself as a uniquely

appropriate model for rural development. Amul has spurred the

White Revolution of India, which has made India one of the

largest milk producers in the world. It is also the world's biggest

vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter,

ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer,

gulab jamuns, basundi, Nutramul brand and others. In January

2006, Amul plans to launch India's first sports drink Stamina,

which will be competing with Coca Cola's Powerade and

PepsiCo's Gatorade. Amul is the largest food brand in India with

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an annual turnover of US $868 million (2005-06). Currently

Amul has 2.41 million producer members with milk collectionaverage of 5.08 million litres/day. Besides India, Amul has

entered overseas markets such as Mauritius, UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few

South African countries. Its bid to enter Japanese market in 1994

had not succeeded, but now it has fresh plans of flooding the

Japanese markets. Other potential markets being consideredinclude Sri Lanka.

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PRODUCT LINE

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Market Segmentation

Market segmentation is the process in marketing of

grouping a market (i.e. customers) into smaller subgroups. These

markets are often termed niche markets or specialty markets.

These segments are fairly homogeneous in their attitudes about

certain variables. Because of this intra-group similarity, they are

likely to respond somewhat similarly to a given marketing

strategy. That is, they are likely to have similar feeling and ideas

about a marketing mix comprised of a given product or service,

sold at a given price, distributed in a certain way, and promoted

in a certain way.

The purpose of segmentation is to identify and target prime

customer groups (eg the 20% that account for 80% of your sales)

so that you get the maximum return from a limited marketing

budget (the most bang for your buck).

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Market Segmentation of

Amul CHOCO CRUNCH

Homogeneity within the segment

Heterogeneity between segments

Segments are measurable and identifiable

Segments are accessible and actionable Segment is large enough to be profitable.....

These criteria can be summarized by the word SADAM:

S -Substantial: the segment has to be large and profitableenough

A -Accessible: it must be possible to reach it efficiently D- Differential: it must respond differently to a different

marketing mix

A -Actionable: you must have a product for this segment

M -Measurable: size and purchasing power can bemeasured .

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The Process-Data Model of

Marketing Segmentation

This model consists of the three main activities:

segmenting, targeting and positioning. It shows the chronological

dependency of the different activities. On the right side of the

model the concepts resulting from the activities are showed. The

arrows show that one concept results from one or more previousconcepts; the concept can not be made when the previous

activities have not taken place. Below the three main activities

are shortly described as well as their role as a basis for the next

step or their dependency on the previous step.

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MARKETING TARGETING

After the most attractive segments are selected, a company

should not directly start targeting all these segments. The

attractiveness of the segments is also depending on other

important factors. In the main activity of defining a target

market, four sub activities are given which are the bases for

deciding on which segments will actually be targeted.

AGE GROUP TARGETED

The four sub activities performed by Amul while targeting are:-

Defining the abilities of the product and resources needed to

enter a market

Analyzing competitors on their resources and skills

Considering the companys abilities compared to the

competitors

Deciding on the actual target markets.

The first three sub activities are described at the topic

competitor analysis. The last sub activity of deciding on the

actual target market is an analysis of the information made

available when comparing the companies abilities to the

competitors. This analysis leads to a list of segments which are

most attractive to target and have a good chance of leading to a

profitable market share.

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MARKETING MIX

The major marketing management decisions can be

classified in one of the following four categories:

PRODUCT

PRICE

PLACE

PROMOTION

These variables are known as the marketing mix or the 4

P's of marketing. They are the variables that marketing managers

can control in order to best satisfy customers in the target market.

The marketing mix is portrayed in the following diagram:

The Marketing Mix

The firm attempts to generate a positive response in the

target market by blending these four marketing mix variables in

an optimal manner. Now, lets see the marketing mix for new

launch of AMULS CHOCO CRUNH i.e., their products, price,

place and promotion.

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PRICING STRATEGY

Amuls new launch Choco Crunch Pricing is based on

three types:-

1) Product is lasting distinctiveness from competitor's product.

here we can assume a) The product has low price elasticity. b)

The product has low cross elasticity. c) The demand of the

product will rise.

2) Products have parishable distinctiveness from competitor's

product, assuming the product features are medium

distinctiveness.

3) Products have little distinctiveness from competitor's product.

assuming that: a) The product has high price elasticity. b) The

product has some cross elasticity. c) No expectation that demand

of the product will rise.

Price is the factor that beats out all other choclates in the

competition. Such as Cadbury. If you have been you must have

seen that Amul and Cadbury frenchise are right next to each

other. But if given the choice people would prefer Amul products

and not Cadbury as the prices of Amul product is quite cheap as

compared to their competitors like Cadbury and this has worked

as an advantage for Amul since most of the customers prefer

amul product over cadburys product, due to this price factor.

The prices for an average milk product ranges between Rs. 20

and Rs. 35.

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PROMOTIONAL STRATEGY

A successful product or service means nothing unless the

benefit of such a service can be communicated clearly to the

target market. An organisations promotional strategy can consist

of:

Advertising: Is any non personal paid form of communication

using any form of mass media?

Public relations: Involves developing positive relationships with

the organisation media public. The art of good public relations is

not only to obtain favorable publicity within the media, but it is

also involves being able to handle successfully negative

attention.

Sales promotion: Commonly used to obtain an increase in sales

short term. Could involve using money off coupons or special

offers.

Promotion Budget

Cost sheet

** Schedule A

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Above A Pull Strategy (Left) Push Strategy (Right)

Communication by the manufacturer is not only directed

towards consumers to create demand.

A push strategy is where the manufacturer concentrates

some of their marketing effort on promoting their product to

retailers to convince them to stock the product. A combination of

promotional mix strategies are used at this stage aimed at the

retailer including personal selling, and direct mail. The product is

pushed onto the retailer, hence the name.

A pull strategy is based around the manufacturer

promoting their product amongst the target market to create

demand. Consumers pull the product through the distribution

channel forcing the wholesaler and retailer to stock it, hence the

name pull strategy. Organisations tend to use both push and pull

strategies to create demand from retailers and consumers.

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PRODUCT STRATEGY

A starting point is to define and understand the company's

marketplace, customer needs and competition. Based on this

assessment, the company's primary competitive dimensions can

be selected and a strategy defined to develop and enhance these

competitive dimensions. Once this is done, product and process

design based on IPD can be oriented to implement this strategy.

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POSITIONING STRATEGY

When the list of target markets is made, a company might

want to start on deciding on a good marketing of a product. But

an important step before developing the marketing mix is

deciding on how to create an identity or image of the product in

the mind of the customer. Every segment is different from the

others, so different customers with different ideas of what they

expect from the product.

The Process Of Positioning The Product Of A Company:

1. Identifies the differential advantages in each segment

2. Decides on a different positioning concept for each of these

segments. This process is described at the topic positioning, here

different concepts of positioning are given.

The process-data model shows the concepts resulting from the

different activities before and within positioning. The model

shows how the predefined concepts are the basis for the

positioning statement. The analyses done of the market,

competitors and abilities of the company are necessary to create a

good positioning statement.

When the positioning statement is created, one can start on

creating the marketing mix.

B2C and B2B

The process described above can be used for both

business-to-customer as well as business-to-business marketing.

Although most variables used in segmenting the market are

based on customer characteristics, business characteristics can be

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described using the variables which are not depending on the

type of buyer. There are however methods for creating apositioning statement for both B2C and B2B segments. One of

these methods is MIPS: a method for managing industrial

positioning strategies by Muhlbacher, Dreher an Gabriel-Ritter

(1994).

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DISTRIBUTION STRATEGY

In order to ensure a continuous & efficient distribution, an

approximate figure has to be arrived at for getting the initial

orders & to ensure adequate supply so that any delays or

resultant losses are avoided. For this purpose, the company

adopted the consumer response hierarchy model so that, it is

ensured that all the company enters the market with a bang

avoiding any problems of late or inadequate supplies. This is

highly essential to support the huge promotional budget, since if

the supplies arent at the right time, all other effort can be in

vain.

As Per The Consumer Response Hierarchy Model; The

Calculations Are Like Below:

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Bibliography

(1) Marketing Management Philip Kotlet

(2) Marketing Management - Saxena

(3) http://www.google.com

(4) http://www.buruniv.ac.in

(5) http://amul.com