MARKETING MIX Marketing mix is a combination of four elementsused to satisfy the needs of an organization targetmarket and at the same time achieve its marketingobjective.1. Product2. Pricing structure3. Distribution system4. Promotional activities
IMPORTANCE OF MARKETING MIX Marketing mix serves as the link between thebusiness firm and its customers. Marketing mix gives consideration to the variouselements of marketing system.
PRICE: Amul Pricing Strategies At the time Amul was formed, consumers hadlimited purchasing power, and thus Amul adopted alow-cost price strategy to make its productsaffordable and attractive to consumers. Despite competition in the high value dairy productsegments from firms such as Hindustan Lever,Nestle and Britannia, it ensures that the product mixand the sequence in which Amul introduces itsproducts is consistent with the core philosophy ofproviding butter at a basic, affordable price to appealthe common masses.
PROMOTION It is a process of communication involvinginformation, persuasion, and influence. It includes personal or impersonal communication. Its purpose is to inform, persuade and influence theprospective customers.
PROMOTION MIX It is used to refer to the communication of differentkinds of promotional tools used by a firm toadvertise and sell its products The main promotional tools which make uppromotion-mix are Personal selling Advertising Public relations Direct mail and tele-marketing Sales promotion
PROMOTION: Initial Promotional Strategyat Amul The butter, which had been launched in 1945, had astaid, boring image, primarily because the earlieradvertising agency which was in charge of theaccount preferred to stick to routine, corporate ads. They didn‟t help in creating a brand image of AMULbutter which was their then motive.
However, in 1966, Sylvester daCunha took over theAmul account. The Amul moppet, the little girl who created a homein the hearts and minds of millions and millions ofIndians. From the political scene, to entertainment, fromlocal news to international, from sports to stars, shehas a line for everything. Often she is said to be playing the role of a “socialobserver with evocative humor”.
MARKETING STRATEGIES4 MAIN STRATEGIES First is quality Second, value for money Third, availability Fourth, service
LEVERAGING COMPANY IMAGETHROUGH SPONSORSHIP Sponsorship provides a great means of broadeningcompetitive edge by improving the companys image,prestige and credibility through supporting eventsattractive to target markets. It can help pave the way before a company startsselling in a new territory . Besides enhancing visibility and image, other thingssuch as differentiating the company fromcompetitors, helping to develop closer and betterrelationships with customers, both existing andpotential ones, showcasing services and products isalso a benefit.
Beneficial for companies that take part in or areplanning for international trade, because sponsorshiptranscends cultural and language barriers. Events allow business owners or executives to relatedirectly with their customers. In comparison, MR methods are usually costly andmay not focus on the right kind of people and usuallydo not allow prospective customers the opportunity totry out products. Heightened visibility due to positive publicity throughthe media is another reason corporate sponsorship ofevents - especially those that attract large numbers ofpeople like popular sports events - can be the mosteffective marketing tool.
Amul, Asia‟s largest milk brand has recently beenseen sponsoring various International sports events. Amul has its continuing focus on the youth segment. GCMMF signed a memorandum of understandingwith IOA to sponsor the Indian contingent and thusAmul became its official sponsor. Amul wants to strengthen the Olympic movement inIndia and thus launched a series of advertisements topromote this .
There had been campaigns for cheese, butter, ghee,milk, and paneer. Other than this a special packaging was introducedfor the same. Mr. Sodhi, their MD, explained the reason behindthis as that milk is nature‟s original energy drink. It plays a very significant role in building thephysical as well as mental strength of the players. Sodhi also says it will make them enjoy a hale andhearty life and strive towards reaching theirendeavours.
Sodhi also says it will make them enjoy a hale andhearty life and strive towards reaching theirendeavours. Amul decided onto for sponsorship during Olympicsbecause Olympics games are today regarded as theworld‟s foremost sports competition wherein around200 and more countries participate. Also the government now focuses on Olympic playersin India by providing them proper training anddevelopment as well as recognition.
REASONSQ1. AMUL CHOSE TO ASSOCIATE WITHGLOBAL SPORTING EVENTS
Amul has chosen to associate with international sportsevents to help the players and also help itself as abrand. It will allow it to push its multiple products that havebeen positioned for the purpose of building staminaand strength and also enable it to encourage aspirantsto go out and deliver their best performance at thevarious events. This will improve awareness and possibly, even sales ofproducts. It is a good and positive way to connect to the youth.
Such associations will help the brand as India is ayoung nation with over 60 per cent of the populationbeing below the age of 35 years and sports is a highinterest area for them. It is a good fit- Amul‟s dairy products stand for highenergy and complete nourishment and the sportsevents stand for values like strength, determination,vigor and winning which every person aspires to, andwishes to imbibe and practice in his daily life. Also this is a great platform for Amul Milk to assertthe positioning of „World‟s original energy drink‟.
DOES IT INCLUDE ANY OF THEFIVE PRIMARY TOOLS OF THEMARKETING COMMUNICATIONMIX?Q2. VARIOUS WAYS IN WHICH AMULHIGHLIGHTED ITS SPONSORSHIP OF THEINDIAN CONTINGENT
In order to popularize product within the countryand internationally, it promoted association by:1) Launching advertising campaign for butter, cheese,paneer and ghee to promote association.2) Special product packaging.3) Integrating sports with milk and milk productswhich is considered as „the world‟s originalenergizer‟.
4) Executed the „energise the Olympians‟ Facebookapplication to encourage brand interactivity onsocial media.5) Premiered the Amul milk Olympics commercial onFacebook.6) Integrating sports with milk and milk productswhich is considered as „The World‟s OriginalEnergizer‟.
Yes it is linked with product promotion of marketingcommunication mix as it used investment in LondonOlympics as a promotional tool to increase goodwill. Promotion is communication from sellers to buyersin the market as it tries to instil into consumer‟sminds, images (through advertising, personal selling,sales promotion and publicity) that make them buythe product. Amul uses the investment promotionpolicy i.e. investing in London Olympics 2012 inorder to make image of its products in the mind of aconsumer.
HOW?Q3. AMUL FOLLOWED UP ON INDIA‟SPERFORMANCE AT THE LONDONOLYMPICS AND USED THIS FOR FURTHERPROMOTIONS.
Participation in Olympics is the aspiration of everyathlete and with the kind of investments made by thecountry in the arena to select, nurture and train thebest athletes and the sponsorship from Amulenhanced the Indian contingent‟s performance in theLondon Olympics. Milk is nature‟s original energy drink and plays apivotal role in building the physical and mentalstrength of athletes.
Amul executed the Energise the OlympiansFacebook application to encourage brandinteractivity on social media and in the process alsoboost the Indian spirit and support for the Indianathletes in London. Energise the Olympians strengthens Amulscommitment and association with the Olympics,encouraging youngsters to support their favouriteathlete. An innovative way to strengthen the energyplatform owned by the brand by bringing in variousathletes representing various sports.
Amul showcased its product as necessary for thehealth of an individual which is helpful in brandbuilding. It used advertising and packaging promotional toolsin order to make public aware of its investment inLondon Olympics . This provided a positive impact on its image.