Amul's communication strategy - A report.
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Amul's communication strategy - A report.

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It is a study report about Amul's communication strtaegy used all through the years.

It is a study report about Amul's communication strtaegy used all through the years.

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  • 1. SARDAR PATEL COLLEGE OF COMMUNICATION AND MANAGEMENT 2013 Amul Communication Strategy A Report Rahul.R.Pillai K A S T U R B A G A N A D H I M A R G , N E W D E L H I
  • 2. 2 APENDIX 1 AMUL- COMMUNICATION STRATEGY A PROJECT REPORT SUBMITTED BY RAHUL .R. PILLAI in partial fulfillment for the award of the degree of PG DIPLOMA IN PUBLIC RELATIONS SARDAR PATEL COLLEGE OF COMMUNICATION AND MANAGEMENT, K.G MARG NEWDELHI GURU JAMBESHWAR UNIVERSITY, HISSAR January 2013
  • 3. 3 APPENDIX 2 CERTIFICATE Certified that this project report “COMMUNICATION STRATEGY of AMUL” is the bonafide work of “RAHUL .R.PILLAI” who carried out the project work under my guidance & supervision. Prof. Suresh Gaur (Project Guide)
  • 4. 4 Acknowledgment I have taken efforts in this project. However, it would not have been possible without the kind support and help of my internal faculty and guide Mr. Suresh Gaur. I would like to extend my sincere thanks to Mr. Gaur for suggesting the topic for the project. I am highly indebted to Sardar Patel College of Communication & Management for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards each member of Bharatiya Vidya Bhavan for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special thanks to my parents as without their support this project will not be possible. My thanks and appreciations also go to my friends in developing the project and people who have willingly helped me out with their abilities.
  • 5. 5 APPENDIX 3 TABLE OF CONTENTS PAGE NO. CHAPTER NO. TITLE 1. INTRODUCTION 1.1 The History and orgin 6 1.2 Growth & Development 7 1.3 Distribution & Retailers 9 1.4 Amul as a Brand 15 2. STRATEGY 2.1 Amul Communication strategy 22 2.2 Promotional Campaigns & Advertising 25 2.3 Public Relation Strategy 30 2.4 Target Market & Competitors 43 3. Research Methodolgy 3.1 Problem 48 3.2 Scope of Study 48 3.3 Source Of Data Collection 49
  • 6. 6 3.4 Choice of Research Design 49 3.5 Research Instruments Used 49 4. SWOT Analysis 4.1 Suggestion 53 4.2 Improvement 53 Conclusion
  • 7. 7 CHAPTER 1 THE ORIGIN An image of long cultivated wisdom and honour for which we trust more than anything else, the name we love and a movement which shook up our soul . Like the mighty Gangs originates from tiny streams of Gangotri ranges of Himalayas and from a spirit of revolution that changed the whole world. Similar is the story of AMUL which took birth from the inspiration of „Operation Flood‟ and prospered through „White Revolution‟ in India. It all began with two village cooperatives and 250 liter of milk per day, nothing but a small contribution as compared to a much large corporate as it today. Amul collects, process and distribute over a million liters of milk and milk products per day, during the peak hours , on behalf of more than a thousand cooperative villages owned by half a million of farmers creating a form of liberation and self-reliance for each and every farmer to follow in the years. The revolution Started as an awareness program that followed in to matured protest movement and the determination to liberate themselves from the middlemen. The life of a farmer in Kaira District (Anand ,Gujarat) was very much similar to the fate of their counterparts living in india. His income is entirely driven from seasonal crops and milch buffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. At a perishable stage, Farmers were compelled to sell at whatever price they were offered.Milk producers had to travel long distancesto deliver milkto the only dairy, The Polson Dairy in Anand. Milk went sour as producers had to physically carry the milk in individual containers, especially in the summer season. More often, they had to sell cream and Ghee at throw away prices. In this situation, the ultimate gain was for private traders. Gradually, farmers came to realize this exploitation from traders could be checked only if they market their milk themselves. They approached Sardar Vallabhai Patel ( who was later the First Home Minister of Independent India) under the leadership of local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson. He sent Moraji Desai (who later became the prime minister of india) to organize the farmers. In 1946, the farmers of the area went on to milk strike refused to be further oppressed , thus the Kaira District Cooperative Union was established to collect and process milk in the district of Kaira in 1946. Milk collection was also decentralized , as most producers were
  • 8. 8 marginalized farmers who were in a position to deliver 1-2 liters of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of the villages. The cooperative was further developed and managed by Dr. Verghese Kurien along with Mr. H.M. Dalaya. Dr Kurien, a recipient of World Food Prize and Ramon Magsaysay Award , was the pioneer behind the White Revolution. The first Modern dairy of the Kaira union was established at Anand. The success of the dairy cooperative movement spread rapidly in Gujarat. Within a short span of time five other district unions- Mehsana, Banaskatha, Braoda, Sabarkantha and Surat were organized. In order to combine forces and expand market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus in 1973, the GCMMF(Gujarat Milk Marketing Federation) was established the brand name Amul in 1955 decided to hand over the name to GCMMF (AMUL). Impressed with the development of dairy cooperatives in Kaira District and its success, Prime Minister Lal Bahadur Shastri, during his visit to Anand in 1964, asked Dr. Kurien to replicate and spread the Anand type diary cooperative all over India. Thus , National Diary Development Board was formed and Operation Flood Programme was launched for replication of Amul Model all over India. Obstacles Every time failure leads to stepping stone for success and each stumbling block can be turned to successful story. In the early years , Amul had to face a number of problems . With every problem came opportunity and a chance to turn negative to positive . Milk products and supplimentry yields which suffered as same lack of marketing and distribution facilities became encumberances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advance in animal husbandry and vetinary practices . The Growth & expansion. The response to these provided a greater boost for further growth. As an example ,the movement spread in the entire district , it was found that Bombay Milk Scheme could not handle the entire milk collection by the Kaira Union in winter, when the production on an average was 2.5 times more than in summer. Thus even by 1953 the farmers had no assured market for extra milk produced in winter. They were again forced to sell a large surplus at low rates to middlemen.The remedy was to set up a plant to process milk in to products like butter and milk powder. A Rs 5 million plant to manufacture milk powder and butter was completed in 1955. In 1958, the factory was expanded to manufacture sweetened condensed milk. Two years later, a new wing was added for the manufacture of 2500 tonnes rolled dried baby food and 600 tones of cheese per year. It was based on a formula developed with the help Central Food Technological Research Institute (CFTRI), Mysore. It was the first time anywhere in the world that cheese or baby food
  • 9. 9 was made from buffalo milk on a large commercial scale. Another milestone was completion of balanced cattle feed.The plant was donated by OXFAM under the freedom from hunger camapaign of the FAO. The Kaira Union was asked by the government of India in 1963 to setup additional milk drying capacity. A new dairy capable of producing 40 tons of milk powder and 20 tons of butter a day was speedily completed. It was declared open in April 1965 inaugurated by late Shri. Moraji Desai . Further expansion of the dairy milk handling capacity to 750000 liters a day came in 1974. In the same year , the union set up a plant make high protein earning food , chocolates , at Mogar plant 8 km away from Anand town. The investment in this plant was 100 crores. The National Dairy Development Board (NDDB) financed 70% of its cost as loan and 30% as grant. Milk to this dairy was brought from insulated tanks instead of cans thus reducing transportation cost significantly. Further, another plant was established in 1992 , this plant had the capacity of producing 14 lakhs of milk per day. From the late fifties Kaira Union has been heavily invested in schemes to improve the milk yield of animals. The Union built fully fledged infrastructure for breeding animals and ensuring animal health care. This was infact, came in to detail account, as traditionally dairy was subsidiary occupation of the farmers of Kiara. However contribution of farmers was not prominent as his attachment to dairying was traditionally hand down from one generation to next. The milk yield from animals, which were maintained mainly on by products of the farm was decidedly low. That together with the lack of being able to market the product look very bleak. It was a vicious cycle reinforced by generation of beliefs. The Kaira union broke the cycle by not only taking the responsibility of collecting the marketing surplus of milk but also provided the members with every provisons needed to enhance production. As said above, the Kaira union was fully fledged machinery geared to provide animal health care and breeding facility. A early as fifties, the union started making high quality buffalo semen . Through village society workers artificial insemination service was made available to rural animal population. The union started its mobile veterinary services to reneder animal health care at the farmer‟s doorstep . Probably, for the first time in the country, veterinary first aid services by trained personnel, were made available in the villages,. The union‟s 16 mobile veterinary dispensaries are manned by fully qualified staff. All the villagers are visited bi-monthly on a predetermined day and to provide animal health care and 24 hour emergency services is also available at a fee of Rs 35 for members and Rs 100 for non members. The cooperative dairying system was beneficial and viable. The union which statedwith two societies has now 945 societies with 535000 members in 1955-56, which rose to 10 lakh in 2010-11 milk production went up from 250 liters to 1 million liters a day. The turnover of the union in 1994-95 was Rs 344crore. 2008-09 Amul has collected 8.4 million liters of milk per day and increased to 12.5 million liters of milk per day as latest 2012 survey.Every day amul collects 4,47,000 liters of milk from 2.12 million farmers converts them in to branded , packaged products and deliver goods worth Rs 6 crore to over 500,000 outlets across the country.The village Anand the Kaira District Milk Cooperative Union better known as Amul expanded exponentially. It joined hands with other milk cooperative as said earlier with Gujarat network it covers 2.12 million farmers , 10,411 village level milk collection centers and fourteen district level plants under the overall supervision of GCMMF.
  • 10. 10 Distribution & Retailers Distribution expansion in emerging markets of small towns continued to be major initiative of the GCMMF during this year. Almost 500 new distributors were inducted as channel partners- mostly in small towns. At the same time to bear up with the first emergence of organized retail in India, suitable distribution model was developed during the year for servicing modern format stores. The Amul Model The Amul model of dairy development is a three tier structure with dairy cooperative societies at the village level federated under milk union at the district level and a federation of member unions at state level.  Establishment of direct linkage between milk producers and consumers by eliminating the traders  Milk producers control the procurement , processing and marketing.  Professional integrated management. Moreover, the Amul model has helped India to emerge as largets milk producers in the world. More than 15 million milk producers pour their milk in 1,44,246 dairy cooperative societies across the country. Their Milk is processed in 177 district cooperative unions and marketed by 22 state marketing federations. The Following Model explains at all.
  • 11. 11 Fig2. Amul network Source: www.amul.com Fig.1 Amul model How the distribution network works The milk is procured from the village and collected at village cooperative society from there the milk is taken to manufacturing units where the milk is processed in to various products. The product is then transported to company depots located in various parts of the country. The product is then sent to wholesale distributors and from there to retailers. The facts  Milk is procured twice a day from 2 millions from Gujarat alone  The payment is made under twelve hours of procurement  There are 10000 village cooperative societies  There are 3600 wholesale distributors in the country.  45 depots  The C& F‟S agents are not fixed nad are decided by local company offices.  There are approx 4,50,000 retailers spread all over india.  Total household consumers covered are 100000  The milk procured per day is 5 million liters  These cooperatives are bound to supply their products only to GCMMF. Market Logistics Enterprise Resource Planning (ERP): the company has implemented the resource planning with TCS (Tata Consulting Service) where a company plans the internal and external management
  • 12. 12 information across the entire organization or cooperative villages in order to manage the connection inside the stakeholders within the company. GCMMF had implemented SAP-ERP across their amul milk chain. SAP is a German software company that makes enterprise softwares to manage business operations and customer relations. It was launched in April 6th 2011 The channels of Distribution  Upstream  Downstrean Upstream Channel, in which milk is procured from farmers to manufacturing units. 1. In the first step, the milk is taken to Village Cooperative Societies (VCS) by the farmers on foot or bicycle in small quantities 2. Second step involve the transportation of milk from cooperatives to the manufacturing units this is done in special truck whicha re equipped with tankers to carry milk. Downstream Channel , it is the distribution part of supply chain from manufacturing units to retailers. 1. First step of transport is from manufacturing unit to the company depots. This is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the company therefore is sometime the quantity ordered is lesser than club loading which means that product ordered is supplied with some other products.  Frozen food temperature is kept low -18°C  Diary wet the temperature of these trucks is kept between 0-4°C 2. Second step is from the depot to wholesale distributors, this transport is carried out in insulated 3 and 5 MT TATA 407‟S here a permanent dispatch plan where the distributors plan out the quantity of various products to be ordered on particular date. 3. Third step is flow of good from WD „s to retailers, a beat plan is prepared and transportation is done on auto –rickshaws and bicycles. Selection& Motivation of Channel Members Selection: The company takes in to consideration of host factors while selecting the channel members.This is because GCMMF believes that selection of channel members is a long run decision and rest of the decision regarding the supply chain depends upon the efficiency and coverage of channel members. The following are the host of factors considered by the company in selecting the channel members.  Authentication and reliability is required regarding the identity of the channel members which includes the name and address, photograph of the location.
  • 13. 13  Proof of solvency which requires name and address  Safety of inventory which means that the distributors/dealers should get the stock of the company insured.  Inventory or perishable goods kept by the distributor/dealer should be in good condition which means a detail storage space and refrigeration facility is to be provided. Refrigiration system should have deep freezes , cold room and walk in coolers.  Details of the delivery vehicle, which includes light commercial vehicles, metadoor , three wheeler van, tricycle van & handpush cart. The number and model of each of the vehicle needs to be furnished to the company.  GCMMF acknowledges the fact that it needs to be sensitive to the market demands. For this is to require number of salesman needs to be present on the field. The salesman are divided in to various categories like the field salesman & counter salesman. Also the details of clerical staff & mazdoors are to be provided. The technical competence of the salesman need to be mentioned.  Details of the product kept of other companies have to be provided. The annual sales of these products too have to be mentioned. Also details of the complementary products and product lines need to be mentioned.  Dealers of the company must have a good reputation. This due to the fact that company believes in reputation of the dealer affects the clientele.  Market coverage by the distributors need to be defined which includes deatails of the geographic coverage & outlets per market area.  The company also requires the dealers to furnish any advertising and sales initiative undertaken by them on behalf of the company.
  • 14. 14 Motivation of Channel Members GCMMF strongly believes in maintaining good relationship with channel members so that they are genuinely motivated to work for the company. Also if the channel members are motivated, they can also initiate advertising sales promotion and public relation activities on behalf of the company. However to keep channel members motivated to work, the company has to incur certain cost but the benefits of it are felt in the long run. The following are the motivational programs run by the company:  One of the main factors, which keep the distributors motivated, is the margin. Usually the margin offered by the company are 8% & it is raised to 8.5%. It comes to big figure in volumes since Amul product has a good demand in the market. However, compared to other companies the margin is still lower since the new players in the market offer higher margin. But the very fact that Amul products have good demand in the market motivates the distributor to stock it.  Amul being a cooperative cannot afford to give heavy monitory incentives in the given period of time, as Amul products are considered to be value for money since the company does not believe in charging high margins. In fact all monitory incentives are just the short run means to promote company‟s product. In order to keep the channel members motivated in the long run, Amul builds the concept of “Trade Marketing” which makes the dealers / distributors believe that company‟s products are worthy of being pushed in the market.  The company is organizing various total quality management initiatives & workshops. Infact GCMMF conducts Hoshin Kanri (Policy deployment) meeting twice a year one in February and one in September. The meeting is conducted by large scale interactive process of the internal and external management. It includes Managing Directors, General Managers, Depot in charge, Zonal Managers, Zonal Account Incharge, Zonal System Incharge, Zonal MMO Incharge, Departmental Heads, Product Officers, Ad Agency etc. Participate in this meeting. Here various counseling measures undertaken by the company to improve the overall working of the distribution network.  Vision & Mission statement: company cascades down the vision to the various channel members, this is done through various events organized by the company and regular updates through press releases and interaction through websites and feedbacks. The company‟s public relation activities and updates is active during the years to keep the interest of the public especially the distributors and retailers. Amul being acooperative society cannot afford to spend huge amount on events and therefore it has a very traditional way of organizing the events which leaves an impact on members.
  • 15. 15  Amul Yatras : Another public relation activity this include the channel members on a guide tour of the manufacturing and procuring facilities in Gujarat. So that the channel members have an experience of the working of the company and can pick up small quality measures that can help them to synchronize and improve their own functioning at various levels. This in turn helps the company to coordinate the entire value chain, as the channel members understand the various constraints and liberties the company goes through. The company has already got the Rajiv Gandhi Award for quality. The Retailers  Trade Schemes: These are undertaken by the company only for hard selling items eg. Icecream, flavored milk etc.For this company raises the margin by 2% also schemes like good packaging in case of butter and cheese is undertaken by the company. However this is only a short term initiative to push the products of the company.  Glow Boards : the company puts up glow board at the retailer and pays the major portion of the cost . These boards help them to identify their products and according to good demand in the market they make available to consumers.  Schedule of the salesman : They provide the retailers with this schedule so that retailers can pre estimate the quantities of the various products needed.  Infrastructure Facilitaion: the company facilitates the retailers to buy freezers and fridges by formulating an easy payment program and a commitment to buy back the equipment at a reasonable price when the value of the equipment is depreciated.
  • 16. 16 The Brand Brand building The name that every Indian knows and abroad, the success of Amul brand name has no doubt, resulted in to being asked to comment on historical milestones and achievements. It associates to the long history with many success stories behind it. Amul is a name which is widely respected not only in our cities and towns but in our villages as well . The easier part to recognize and brand recall this was all happened with nothing less than a good marketing strategy. Certainly it has helped that those who were responsible for keeping the Amul name in the public eye have used considerable imagination and well thought of idea if you see the concept of “Taste of India‟‟. As for a customer approach with a product goes through experience and durability. In the simplest form known as testing, but for a product in market the customer should be aware of the product , as it is the awareness, consideration, Preference and Purchase. With the emergence of new media (like internet and digital media) and abundant available information, product experience and repeat purchase also become important. Additional to these now stages consist of eyeball, awareness, consideration , preference, purchase, experience and repurchase or loyalty. While creating a brand, marketers try to create an image of what they want consumers to perceive about their product and offerings .Perceptions are more important than the actual features as it along with product utility decides the loyalty of consumers. Also the successful consumer product is the object of thousands, even ten thousands of transactions every day. In these transactions, brand name serves in terms of relationship that established like a contract. It is the assurance to the buyers that her specifications will be met. It is the sellers assurance that quality is being provided at fair price. If Amul became a successful brand- if the trade lingo, it enjoys a brand equity- it is because Amul was closely associated to customers for long 50 years. It is not easy to be with the customers and maintain the relationship for so many years. It would have not been that successful if Amul the brand remain aloof or had nothing to do with rural market. The significant
  • 17. 17 contribution made by Amul in Rural milk production made them a respectful brand bot only in india but all over the world. The toughest part of using abrand is its renewal , if just once , the brand fails to meet the customer‟s expectations or more it fails to delight the customer then the relationship loses its value. If Amul‟s sales continue to rise it is because that relationship has been honoured again and again, even after generation to generation the brand follows breaking all boundaries the expectation and quality force them to buy the product just as when Amul launched their product in West Asia or in America the taste captured them , the loyalty even far from home craved for “ The Taste Of India”. As what is the main element of a relationship associated with brand name ? First and foremost is quality. No brand survives long if its quality does not equal or exceed what the buyer expect. There can be simply no compromise. That is the most crucial element in the product and the brand.In the case of food product , this means that brand must always represent the highest hygienic and offer better quality food standards. Second, for the long term relationship the brand must give value for money. If a customer buys an Amul product, he/she gets what they pays for, and more. For the value of its services it owes to the owners of the product to earn a goodwill without exploiting the consumer. During adverse conditions when the product is not available or supplies got reduced, the company must ensure that they should not increase the price and make sure that retailers do not gain from consumer‟s expense. The third element of building relationship is availability. The brand should be available when and where the customer wants it. There is no benefit achieved in creating a positive brand image, and then being unable to supply customer who wants to buy it. In Amul case, over the years they had built a what is may be the finest distribution network. We reach hundreds of cities and towns through a cold chain that only ensures that our product are available , but they reach the customer at farthest end of the country with same quality as it is found in Ahmedabad or Vadodara. Fourth and most important part is service, any brand to build its image . Total commitment with total quality , that is what amul is known for years. Occasionally company may make a mistake or when customer is not happy with the products or the customer is complaining and that must be heard not only listened . And every cutomer‟s complained must be rectified to the extent possible. Amul has honoured its customers with building relationship with consumers.It means quality, value for money,availability and service. How Amul become a brand. The history is discussed well above, we shall discuss about Amul as a brand name. Amul the name derives from a Sanskrit name Amoolya meaning priceless, was suggested by quality control experts in Anand. The first product with Amul brand
  • 18. 18 name were launched in 1955. Since then, they have been in use in millions of homes in all parts of India, and beyond. Amul is the symbol of many things: high quality products sold at reasonable prices, of availability, of services. There is something more , through, that makes the Amul bran special and that something is that reason for commitment of quality and value for money. Amul is a brand name of 2 million farmers, members of 10,000 village dairy cooperatives societies through out Gujarat. This is the heart of Amul, and it is what is so special about the Amul saga. What began way back in 1946 was really an effort to carve out a truly Indian company That would have involved millions of Indians and place direct control in the hands of the farmers. It was mandate for producing, owning and marketing and above all, building truly Indian Brand and successfully did that. Amul is a brand that lives with lakh of farmer‟s expectations and when the history is grounded on independent movement, when not only competetitors but your ouwn government questions you,then you resolve to be best as like a finest steel. Amul , is there fore a brand with difference, that difference manifests itself in a larger than life purpose. The purpose- freedom to farmers by giving total control over procurment production and marketing. Amul and all other milk products produce by coopertaives were born in struggle. It was priducers sruggle for command over the resources that they create, a struggle to obtain equitable returns and struggle for liberation from independence on middlemen. It was struggle over exploitation. A refusal to be cowed down in the face of what others believe to be impossible. Amul‟s birth was thus the harbinger of the economic independence of our farmer‟s brethren. Amul‟s mission was the development of farmers, nutrition to the nation and heart in heart, real development of India. Today, 173 milk producers cooperative unions and 22 federations play a major role in meeting the demand for packed milk products. Quality packed milk is now available more than 1000 cities through length and breadth of India. And this milk with difference – Pasturized, Packed, Branded ,owned by farmers- carrying the milk drop logo, like amul the symbol of quality. Over the course of Operation Flood, Milk has been transformed in to commodity in to brand , from insufficient to self-sufficient, from rationing to enormous availability, from loose
  • 19. 19 unhygienic milk to milk that is pure and sure, from a domination of middlemen to farmer‟s economic independence, to consumers greatest insurance with policy of good health. It should be clear from the fact that agriculture will remain most important engine of our economy. Amul and its cooperative sister brands are aware of this challenge. The future they say, is a best mystery. But it should be clear that the need of the nation on the move must be met. The country is young. There are more working women. The needs are ever growing population have to be met with sustainable economic development. And the demand for milk and milk products, therefore is only going to grow further. Combine this with nutritional needs of the new and old generations and it is quickly clear that there will be a need for more value added milk products. Amul did the same thing to understand the market with their various products and as a brand Amul has successfully managed it. The brand personality of Amul is simple and Indian in nature. Its personality of common Indian individuals who loves to have fun, cooperate with society and share the benefits with brotherhood. Amul range of products include fast range of perishable goods such as butter cheese, Ghee, chocolates etc, Amul butter is the laeder in terms of brand equity. Amul has one of the strength is that they work upon umbrella branding. Amul‟s business model revolves around milk and milk products, which occupies a central role in any Indian diet, thus trust is an important issue to take in to account when thinking of the consumer, as no housewife would want an adulterated dairy product in her larder . Amul delivered on the front by dint of quality. Moreover it stood with challenge and has a strong emotional connect with the consumer cemented after generations after generations as said earlier. Today Amul is the most trust brands among Indians, Housewives don‟t think twice before buying Amul. Another strong point on which Amul relates to the consumer is taste. Anyone who buys butter would want it to be tasty. Amul reinforces this in the minds of the consumer through their tagline Utterly Butterly Delicious – so that the consumers know that they are in for a treat. This is a simple tag line, which at the same time communicates that the brand is not a stickler for conventions. Sylvester de Cunha, who was behind the successful creative which established Amul in the minds of the consumer, wanted the brand to move away from the staid and dour approach which other brands in the food industry had adopted. This helped Amul relate directly to the consumer. In fact, this tagline was so successful that another dairy spread brand was launched in UK with the name Utterly Butterly. Brand Positioning Giving its wide product description, Amul has number of competitors in each field, being one of the early entrants in terms of branding , and pretty much owns the category. The position is taken by its strongly topical, as the hoardings of Amul moppet keep changing to reflect the change taken place in the nation. The below hoarding was meant to capitalize on people‟s mind share with tennis star Sania Mirza was getting at the time of hoarding release, thus initially allowing a connect to the customers.
  • 20. 20 All these activities helps in keeping the message relevant, while at the same time not cutting down the fun quotient of the brand. Moreover, it reflects the Indian heritage which the brand carries , typically the tagline „Taste of India‟. How Amul stand different from others all through the years The brand Amul stands different from other brand irrespective of stiff competition but due to effective strategies used by Amul made them stand out. Here are some of the strategies to take on the rivals and remain in the market. Enthused by its performance in FY 08, GCMMF introduced fresh game plan for its flagship brand „Amul Fresh Milk , rival Mother diary India was not far behind. To sustain the competitive edge, Mother Diary chalked out aggressive growth strategy to reach out wider target audience.
  • 21. 21 Amul‟s Diversification Strategy Amul started a new strategy of introducing fast food in their kitty, in 2005 it opened up 3000 retail chain outlets. The pizzas were offered in four different flavours –plain-tomato- onion- capsicum –fruit pizza- mushroom and Jain pizza. GCMMF launched the pizzas in 20-25 price range. The existing players in the pizza market, like Dominos pizza, Pizza Hut and nirula Ofered prizes at nothing less than Rs.39. It was the move to force existing players to reduce the price in the long run. Amul as a brand , has done following steps to consolidated its brand image.  The core benefit being offered by Amul is quality Milk , which is shown by trust which the Indian public puts in Amul, then Amul chosen to diversify in to more milk products. For latest eg. Launch Of Amul PRO whey protein malt beverage in april 2012.  Amul strengthened its umbrella branding  Amul has stronger correlation to milk and for that reason it made in to a huge competition of making chocolates and given that it had strong distribution network.  Amul started sponsoring sports events , in order to draw correlation with health, as sports stars are perceived to be healthy and energetic. They done for their brand promotion by sponsoring Indian team in London Olympic games. Carried their topical cartoons with it.
  • 22. 22 Apart on Facebook, regular post based on games, it has launched an app called „energise your Olympians. The application primarly focuses on two things  Position Milk  Associate the Brand with London Olympics. The „Energise your Olympians‟ Campaign: Like most third party apps, users have to first „Like‟ to participate. He/She can then choose a favorite sport and show their support by energizing the contingent with a glass of milk. The app has an educational value attached to it too- it lists out the members of the contingent as well. Users can also add a badge to their profile as a token of appreciation for showing their support. According Draft FCB Ulka interactive – the agency behind the application, the app was encouraged brand interactivity on social media and in the process also boost Indian Spirit and support for Indian Athletes in London.
  • 23. 23 Chapter 2 Strategy Communication Strategy Communication is a process of transforming information from one entity to another. For an organization it is very essential to communicate well in order to sustain the highly competitive market. We all know organization always pools its resources in the marketing segmentation and product positioning and public relation activity. The preparation of message is a complex process and it includes all forms of indulging customers from persuasive to ultimate action, according to one research consumer approximately comes under the scanner of messages 6400 times a day out of that he retains only 10-12 or less information, so the communication pattern must be innovative and creative. Amul involved in to big communication strategy, it has a common business objective to have self sufficiency in milk production and farmers can earn their own benefits out of the production and procurement of milk. The quality of milk supplied cannot be maintained when cattle owners live in unhygienic conditions. Apart from proper infrastructure facilities , roads , for the collection of milk good water supply is required. All the profits earned cannot be distributed to village cooperative societies. With this business objective they had developed a plan to create a good communication objectives and a proper implementation of plan . The use of extensive communication media in order to achieve the following twin objectives.  Putting across a specific idea , theme or service or selling a product.  Communicated related themes aimed at providing benefits to farmers indirectly. They used leaflets, posters , TV programs. The TV programs were prepared with the collaboration with space application center of Indian Space Research Organization located at Ahmedabad, and were of two types. There were programs, by way of features which would be exhibited almost every week. The veterinary doctors prepared the script for such programs and these werethen checked by experts in the space application center and produced on video tapes. In fact two of the vetrenary doctors had become experts in producing such programs were in the nature of TV advertisements which were termed as quickies.
  • 24. 24 The following strategy was to inform the farmers about extensive use of milk production and later when amul went on to diversified umbrella marketing it made in to complete make over of brand image with suitable strategy . The topical ad campaigns were came as a boon it made the brand more popular. The role of Advertising in promoting the brand image of Amul. Its advertising used a impressive strategy to communicate with the public jovially as a muppet Amul baby muppet ( A chubby Butter Girl) commenting on the latest news or currents events, The pun in her word were popular and Amul ads were one of the longest running ads based on a theme, now viewing in Guiness records. The first outdoor ad using the Amul body started in 1976. Sylvester Da Cunha,Then the managing director of advertising agency,ASP clinched the account of Amul Butter. The butter which had been launched in 1945, had staid boring image, primarly because earlier advertising agency which was in charge in account preferred to stick to routine corporate ads. If you look to the history of Amul butter girl that charm has endured fickle public opinion, gimmickry and all else.The moppet who put Amul on India‟s breakfast table 50 years after it was first launched Amul‟s sales Figure have jumped from 1000 tonnes a year in 1996 to over 25000 tonnes in 1997.No othet brand comes even close to it. All because a thumbsized girl climbed in to the hoardings and put a spell on the masses. Summer of 1967 was the time when first Amul hoarding that was putup in mumbai people loved it and became a favourite topic of discussion over tea.For over 50 years the utterly butterly girl has managed to keep her fan following intact. So much so that it enetered in to Guiness book of Records for long time running campaign ever.The ultimate compliment came with a British company launched a butter and called it Utterly Butterly. In1969, when the city first saw the beginning of Hare Ram Hare Krishna Movement Sylvester Da Cunha, Mohammed Khan & Usha Bandarkar, then the creative team working on the Amul account came up with clincher „ Hurry Amul, Hurry Hurry “Bombay reacted to the ad with a fervour with almost like a storm that hits on shores. That was first many topical ad that were in news. From then on Amul began playing the role of social observer. Over the years tha campaign acquired that all important amul touch. India looked forward for the amul‟s evocative humour. The real turning point came in 1976 when the brand started taking controversial issues like emergency or the compulsory sterilisation program launched by indira gandhi government. Conveying the message through the events takin place in the country, amul always had a reply to it. It is upto date with current affairs . The first escalator with mumbai in 1979 was celebrated with slogan Automatic Amul , when mumbai was facing shortage of power Amul said Ta ta power Amul , unlimited supply. From Sixties to Nineties , Amul had came a long way. While most people agree that amul were at the peak of eighties and still remain to continue to tease and eek out laughter on serious issues.
  • 25. 25 some of the ads generate wide opinions among the public and generates emotions. These ads made public think and glare on human interest stories. The Amul topical ads always discussed about relevant issues to generate some creative thinking and observational techniques to capture the mind of the audience. These topical ads always hold discussions and pun associated with it and able to control the masses and more over such ads use their communication strategy more effectively. It also had a special interest over national issues and Speak up to the common problems that associated with It, Amul always keen to understand the public and it is the Most important factor that they used in their public relation Strategy - :  They followed the public attitude  Served for national interest  Followed the principles of public relation  They acted accordingly to the sentiments of the nation  Used various communication mix to have a stronger value to the service  Connected their value with emotions and always used a network of communication. The major activity of communication is done through its Advocacy and promotional films . What it takes , a promotional film that tells aboutwhat amul is and what it had done how it originated , intends to communicate to the public. Talk about the success story and remembering Dr.V.Kurien. This also tells about why big marketing budgets, huge ad campaigns is not always necessary , what you need is genuinely interesting way to interact with customers and your public. Tell them the story and engage them in the conversation, even if you are selling something commoditized like butter. Amul has been consistent over communication campaign and brand strategy. As said in above sections we have discussed about its product positioning as “Taste Of India” and have ensured
  • 26. 26 that their communication is in line with their positioning strategy. By insisting upon umbrella branding they have not only ensured inter union conflicts but also created an opportunity for union members to cooperate in developing products. What is Umbrella Branding Amul‟s advertisng strategy has followed the concept of Umbrella Branding. Amul is the common brand name for most of the common products across categories. For example Amul Girl has been used to advertise Amul Ghee and milk. Its ad campaign Amul dhoodh peeta hai india is created by FCB ulka was drafted to proclaim the leadership position and was targeted across all income categories. The corporate advertising campaign – The Taste of India caters to people belonging to all works of life and cultures. It revolves around one day old child who needs milk as much to a dead man who needs Ghee. Umbrella Branding can be successful marketing strategy. However this depends on having consistent and clear brand identity across the variants. It also need to recognize that, while this approach can help “ kick start” the variant vehicles. How Umbrella branding helped in communication of different products Amul always used the umbrella brand strategy in their advertising campaigns but one of the most important thing they always had they all had connected to different Indian traditions and taste. Public relation strategy really worked here for Amul that some advertorials and corporate films always promoted the brand in various ways. One of the greatest example is the adjacent figure, that talks about the brand as a “ most beautiful feeling in the world is still Indian” this message created the domestic image among the public and had an appeal of Indian taste that spread all across the country and that is wonderful for a brand that is Indian . We have discussed about role of advertising in case of Amul and how they used their brand for their different products now it is importantto understand the various communication mix of Amul.
  • 27. 27 Communication Mix Amul has not relay been in personal selling or direct marketing in order to capture individual attention, because its aim is to promote and establish the brand image. Moreover, in case of consumer marketing that is when product is for masses then personal selling is not feasible mode of communication towards your target audience. Sales Promotion: The most common objective of sales promotion is  To gain additional target market share or additional revenue  To expand the target market  To inform the customers about the new uses of existing product  To develop favourable customer experience about the product Amul following sales promotional techniques have been used , if a customer make online request for product He/ She can avail offer through online. For instance , one can order Amul ice cream at the new A mul ice cream cyberstore and from Amul.com. Products shipped in a reusable attractive Styrofoam Ice US $ 5.00 retail value. Receive Amul promotional items with your package like Amul recipe book, Buttergirl refrigerator package. Public relation: Amul always keen to spread its image all over the country and informed about the public relation activities  One of the public relation activity of Amul is CSR where they holds Amul yatra, in which their distributors and their salesman are taken on to visit thjey are shown dairy plants , their upkeep international standards and hygiene quality practice adopted for clean milk production.  They also come up with corporate films and recently paid tribute their green revolution father Dr.V.Kurien .  A featured movie called Manthan Directed by Shyam Benegal (1976) has been sponsored by 5,00,000 farmers of Gujarat , constituents of Gujarat Coopertive Milk Federation Of India.  Also come up with short movie Amul Heroes 35min. talks about life of an employee working in Amul and their networks.  Amul Vidya Award, Amul‟s vision is to see educated talented students contributed to the nation. For this purpose Amul took the initiative as Amul vidyashree and vidyabhushan
  • 28. 28 award instituted to recognize the brilliance of students across India as well as the quality of education and guidance imparted by the schools the study in. The inception of this award dates back 2004-05.  Amul‟s Tree plantation initiative  Amul relief trust.  Amul sponsorship programmes like Amul Star Voice of India. Direct Marketing Amul has recently entered in to direct retailing through Amul “Utterly Delicious” parlours in major cities like Ahmedabad , Bangalore, Baroda, Delhi, Mumbai, Hyderabad, Surat. Amul has plans to create large chains such outlets to be managed by franchise through out the country. “Amul Utterly Delicious” parlours are in excellent business opportunity for investors, shopekeepers and organizations. In order to come closer to the customer, they decided to create model for retail outlets, which would be known as “Amul preferred outlets” (APO). GCMMF released its first press ad on Amul preferred outlets on 8th April 2007 all over india on TMT basis. The ad wasappered in all vernacular languages as given below Places Total News papers covered Total Editions covered Different Languages in which Ad appeared Northern Region 15 49 Hindi, Urdu, English, Punjabi Southern Region 25 71 Kannada, English, Malayalam, Tamil, Telugu, Urdu, Hindi Eastern Region 14 34 Bengali, Hindi, Oriya Western Region 14 25 Marathi, English, Hindi, Gujarati
  • 29. 29 Central Region 10 31 Gujarati, Hindi, Sindhi North Eastern Region 13 13 Bengali, English, Hindi Total 91 223 GCMMF, in their last Hoshin Kanri meeting, decided to expand their retail universe by creating more number of Amul Preferred Outlets. The purpose of this ad was to bring awareness among the retailers who are interested to make their shop as APO which is an exclusive shop for Amul products. GCMMF wholesale distributors and the depot did a tremendous efforts to make the project success , they have so far received around 6500 enquiries from the prospective retailers. Consumer Advertising This is also called final product advertising . Such advertisements are primarily directed at consumers. These are the advertisements which are most prominent as very substantial portion of the total advertising budget is directed to potential buyers of consumer products through mass media. The fact that the number of buyer consumer items are generally and widely dispersed in wide geographical area . As such case, consumer advertising used as marketing tool. Amul has resorted to consumer advertising as a marketing tool. Amul had as its target was the middle class of Indian sector, but the point to be highlighted here is that they relied more upon emphasizing their brand rather than single product. Outdoor Advertising through Mascots The longest running ad still not faded away as never changing famous moppet in polka dotted frock and half pony tied up. The slogan has influenced so much so that it connects to the common man. No particular time or period could have frozen this character . It does not belong to that era. It has moved along with time reacting to the new events through time.  Mascot Advertising is very successful concept which is being used in western countries but it is not that successful in india. Amul had taken that gamble with its polks dot blue haired frock girl and had paid them rich dividends.  Almost 60 years after its inception , Amul‟s sales figures jumped from1000 tonnes a year in 1966 to over 60000 tonnes a year in 2011. It is all because of the thumb sized girl climbed in to hoardings and put a spell on the masses.  The success story of Amul says one thing to all other campaign that it did not manage to last too long or had to get a whole new look in order to
  • 30. 30 stay in the market. It‟s a mixture of keeping at times humor and understanding. Amul hoardings are thing of attraction in india.  This use of mascot as a marketing medium highlights the clever use of topical advertising by GCMMF using humor , to generate high brand recall. It was an effective marketing tool for marketers.  Where does Amul magic lies? It lies in simple message and creativity that has lots of fun and humor Online Marketing Amul had a basic thing to advance markting technique to expand their business, as IT initiatives of Amul started in 1994. IT became a major thrust area for GCMMF as it can facilitate improvements in operational efficiency since then GCMMF is marching in a big way starting from AMCUS (Automatic Milk Collection System) It‟s in these operations that IT plays a critical role. The installation of over 3,000 Automatic Milk Collection System Units (AMCUS) at village societies to capture member information, milk fat content, volume collected, and amount payable to each member, has proved invaluable in ensuring fairness and transparency throughout the entire 30ervor30s30ion. The role of IT in Amul is best summed up by B M Vyas, chief executive officer, Amul (GCMMF) when he says, “Amul is not a food company, it is an IT company in the food business.” Moreover GCMMF is the first Indian Corporate on the web since 1996 and put up Amul Cyberstore as a first step towards e-coomerce activity in India. This has helped them to interact with customers and with exciting offers and values for them. GCMMF has linked under Amul.com as a part of Amul B2B inuitiative. Today Amul cyberstore offer its service to 120 cities.In order to attract more customers GCMMF has launched amulgreetings.com and amulkids.com to extend the brand identity to kids and teenagers who are increasing its target market for its icecream and chocolates Amul also set up its virtual production facility in second life. Amul launched the application in march by setting up its virtual parlour , is now working to exapand its presence in the virtual world. Trimensions, a Gurgaon based company, helped Amul to develop its excistence on second life, Amul brought about eight such virtual lands to set up a simulation of its production and distribution facility. The objective behind setting up virtual land is to demonstrate its functioning to the consumers, and experiment with change in the production or distribution system virtually before executing it in the world. Second life is internet enabled virtual world in which users can create their virtual identities. These identities can move around, interact and socialize with other users.Members of second life can participate in individual or group activities and create trade items like virtual property or services with each other. A member has to pay for the space he purchase on second life. Second life is developed by Linden Lab, company based in the US.
  • 31. 31 Public Relation Strategy Amul Sponsorship and Corporate Social Responsiblity Image Building – AMUL In a country like India , if any cooperative is perceived well managed corporate it is the Amul brand of cooperative. In buiding its image Amul followed slow and steady process. Some important steps in building imgae include: Business Philosophy The Business Philosophy of Amul or GCMMF is in two fold : one to serve the interest of milk producers and second to provide quality products to consumers as value for money. The milk producers are paid for their milk in accordance with market forces and realization of value for their produce. The corporate mission is to “to produce world class dairy products from best quality milk through latest available technology and competent professionals . We (the members) shall establish the most efficient marketing and distribution network to win the confidence of large number of coinsumers across the globe. We shall strive to ensure that our cooperative network leads to all round development of milk producers”. The ineterst of members has been sustained by giving autonomy and power to the producer to take decisions with regard to his own produce – milk. The lasting impression of Amul that comes in mind is its continuing process as a cooperative that has redeemed farmer‟s faith in himself and in the organization that he and his collegues have created, nurtured and brought to the existing glory. Product Quality The biggest challenge to any consumer industry is the challenge of quality. The GCMMF has paid definite and focused attention to the principles and practice of the total management quality. The products have obtained the certification under ISO9000 and ISO 14000 series of international standards. The plant follows HACCP, good hygiene practices,good manufacturing practices and good housekeeping practices. The GCMMF trusts that it can compete with any brand of the world and by maintaining quality standards of international class. The quality and price of Amul 31ervor31s is the biggest builder of its image amongst the consumer‟s in india and abroad. Because of its high quality of products and services, the GCMMF was awarded Rajiv Gandhi National Quality Award in 1999. This is the Highest quality award given in india
  • 32. 32 The butter girl or utterl butterly delicious is the famous ad campaigns of Amul and followed a big public relation strategy used by them . This strategy worked so effectively that every one connects Amul with buterly girl that generated a brand name.It has the distinction of entering in to Limca BookOf Records as the oldest campaign started in 1967. In its 2003 edition, LIMCA Book Of Records has dedicated two full pages to „AMUL- The Taste Of India‟ under this cover section „doing India proud. The corporate campaign strongly focus people; make emotional appeal and address consumers across region , religion, cast, colour, gender, generation,rich, poor, urban and poor.  In another corporate campaign recently during London Olympics Amul was the official sponsors of Indian team. Amul started sponsoring sports events , in order to draw correlation with health, as sports stars are perceived to be healthy and energetic. Carried their topical cartoons with it.  According to a press release issued by Amul, Mr. R S Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (Amul) said that , “Amul is committed to strengthening the Olympic movement in India and encourage young generation from all corners of the country to take up Olympic sports. I take great pleasure and pride in announcing our sponsorship of the Indian contingent to the London 2012 Olympic Games as „Olympic Partner‟.”  Amul has also sponsored programmes like Amul Masterchef and Amul Star voice of india
  • 33. 33
  • 34. 34 Amul Maharani contest 2009 , AMUL MAHARANI CONTEST is an annual event specially designed for the Indian women. Gujarat Cooperative Milk Marketing Federation Ltd., the marketers of the AMUL brand, is conducted this contest. The contest aims at recognizing the awareness and creativity among the Indian women. The Amul Maharani Contest, is simple & exciting in format with high value attractive Gold prizes and hundreds of Gift hamper prizes. This is becoming increasingly popular every year and receiving over lakh entries. Amul Chef Of the Year , is a contest held for promoting the product and scribble down recipes using Amul product. Amul also promoted Food Festival 2009. Amul in sports events- Apart from sponsoring Indian team in London Olympics 2012, Amul also sponsored Netherlands Cricket Team in World Cup 2011.
  • 35. 35 Amul sponsors Swiss Sauber F1 team at Indian Grand Prix Asia’s largest dairy brand, Amul seems to have got the taste of global events. After having sponsored Netherlands’ cricket team in the ICC cricket world cup this year, the “Taste of India’ has decided to be the official partner of Switzerland-headquartered Sauber F1 team at the inaugural Indian Grand Prix, which is slated to be flagged off from October 28. “The Indian Grand Prix is a global event and Amul is India’s largest dairy and milk products maker. Considering the global appeal, we at Amul thought that we should also associate with this global event,” said RS Sodhi, managing director, Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns and markets Amul brand of milk and milk products. According to Amul, this association with Sauber F1 Team will enhance Amul’s global brand presence. Currently, there is no food brand associated with any F1 team with on-car presence. Source- Business Standards
  • 36. 36 Corporate Social Responsiblity Amul Relief Trust A devastating earthquake (Richter scale 7.9) hit Gujarat on 26th January 2001. The epicenter of quake was located in Kutch district. It caused the death of thousands of people, tens of thousands were injured, hundreds were renedered homeless and damage of billion of rupees GCMMF formed a specific organization named “Amul Relief Trust” (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in Kutch area. Four of these schools started re-functioning from the last two academic sessions and the other two schools from the current session. A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of Gujarat
  • 37. 37 A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka of Gujarat A school reconstructed by Amul Relief Trust in the earthquake affected Moti Bhadai Village in Mandvi Taluka of Gujarat
  • 38. 38 Tree Plantation GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK PRODUCERS OF DAIRY COOPERATIVES Amul Coops plant more than 311.98 lakhs trees Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have been celebrating the nation‟s Independence Day in a novel manner by planting lakhs of saplings across Gujarat and have taken up an ambitious plan to save the environment by planting trees, making India green and thereby reducing the effects of global warming. The milk producers of Gujarat Dairy Cooperatives are conducting mass tree plantation drive every year on Independence Day for last five years. In last five years (2007 to 2011) the milk producers have planted around 311.98 lakhs trees). The most striking feature of these entire programmes was that it has been initiated by milk producer members of the dairy cooperatives. The unique fact about the programme was that the milk producer members took up the oath to protect tree saplings till it survives and grows into tree. Over the years, due to intensive agriculture and dairying various natural resources are getting consumed at faster pace in Gujarat state of India. The state level apex body of dairy farmers in Gujarat gave a serious thought in this direction and discovered a novel idea for giving back to nature. The idea was “one member one tree” plantation on our 60th Independence day – 15th August 2007.To put this idea in to the practice a design team constituting of representatives of member unions were formed. The team accepted the idea by heart and immediately decided to spread it among farmer members of village dairy cooperative societies. Then the idea was communicated to farmer members and they all welcomed it and enthusiastically agreed to implement the idea. For smooth implementation of the idea, the design team chalked out the road map for various activities. Execution teams were formed at district union level to give final shape and put the plan in action. Village level coordinators were identified and they were trained to streamline activity of tree plantation. Various awareness materials were prepared. Through various communication media farmer members were made aware of benefits of tree plantation and tree plantation activity schedule
  • 39. 39 The entire plantation activity was coordinated at all the three tiers of Anand pattern – at village, district and state level dairy cooperatives. On 15th August, 2007, after the flag hoisting ceremony, each member took an oath to plant saplings and ensure that they grew in to trees. Then individually they planted sapling on their own at their identified locations like their farm, near their home, on Farm bunds, etc. They have taken necessary care to ensure that this sapling survives and they also reported regarding the survival to village level coordinator and district milk unions after five months. In this way, 18.9 lakh trees were planted on 15th August 2007. This was just the beginning. Henceforth, the Village Dairy Cooperative Societies of Gujarat as a mark of respect for our nation decided to conduct such event on every Independence Day and accepted 15th August (Independence Day) as a”Green Revolution Day by Afforestation to Protect Mother Earth from Pollution, Climate change and Global Warming”. Â But all this required immaculate planning and execution. An action plan of tree plantation programme was drawn up months back in advance. After the identification of the chief
  • 40. 40 coordinator for each district milk union, the organization of a task force for the programme was put in place. Roles and responsibilities were assigned to each member and area of operation allocated. After preparing the overall action plan, each union issued a circular to the Dairy Cooperative Societies regarding the programme and arranged meetings with the societies covered. At the village level, coordinators were identified in respect of the villages to be covered and the number of saplings required. Along with logistical arrangements direct contact was established with different agencies for receipt of saplings. Pointwise methodology for implementation of tree plantation programme on such a mass scale is as following. Point wise Methodology of execution of programme is as following: 1. Member Unions were informed about the programme and channels of procurement of saplings, almost six month before to scheduled date of programme. 2. Continuous follow up were taken from the member unions about the status of activities planned for the programme. 3. A meeting on tree plantation programme was held at GCMMF Ltd., Anand almost a month ago in which status of action plan was each Member Union was discussed at length. 4. Milk Unions identified the coordinator for the programme and organized a task force for the successful implementation of the programme. The coordinator at Milk Union level chalked out overall action plan for the programme and assigned roles and responsibilities and area of operation to each member of task force. 5. Milk Unions (Mus) issued circular to their respective VDCSs (Village Dairy Cooperative Societies) mentioning the entire activity and procedure planned for the celebration of the programme. In circular details for milk producer members to make necessary preparations like deciding the place, digging the pit, taking care of saplings etc. well in advance were also provided. The circular was placed on notice board of VDCSs. 6. Mus task force members contacted & communicated about the concept to VDCS and identified the village level coordinator and assigned them roles and responsibilities. 7. Mus Coordinator properly explored and communicated the saplings acquiring sources/nursery details to VDCSs. They also ensured that saplings reach the VDCSs before 3 days. 8. A press note was prepared by the coordinator of the programme at MU level and which were given in the newspapers on a day before tree plantation to boost morale of producer members and mentally prepare them for the execution of programme on next day. 9. At time of handing over the saplings to members from VDCS, the producer members took oath to protect the saplings and accepted the responsibility for successfully growing the sapling into tree. 10. On 15th August, after the milk collection process, at a predecided time sirens at VDCSs were sounded or other means like beating Thali/utensil, loudspeaker etc. were used to facilitate the gathering producer members in time at predecided place in the village for celebration of Independence Day in VDCS premises, common plot, school etc. After flag hoisting ceremony, the tree plantation activity was executed by the producer members. 11. In many villages the milk producer members planted the trees after performing the Puja (worship) of saplings before planting them.
  • 41. 41 12. To add 41ervor and enthusiasm in the programme at many places the Chairman, Managing Director and Board of Directors of Member Unions participated in the programme. 13. Next day after the programme on a post programme press note was prepared giving details of the programme celebrations along with photographs. Similar such notes were published in house magazines/ newsletters. 14. After the completion of the programme the MU‟s were asked to submit the report on tree plantation activity. 15. Mus conducted survey after 5 months to find out the survival rate of sapling under the programme. First tree plantation programme (15th August, 2007) was carried out on “one member, One tree” basis. Second tree plantation programme (15th August, 2008) in which around 52.74 lakhs tree were planted was conducted on “one member three tree” basis. In year 2009 and in year 2010, in mass tree plantation programme around 84.24 and 83.5 lakhs tree saplings were planted respectively. The programme was conducted on “One member, Five tree” basis. Further, this year 2011 around 72.6 lakhs trees were planted, the programme was carried out as per the same process and procedures followed in last year. Hence, in last five years, milk producers of GCMMF planted around 311.98 lakhs tree saplings in 21 districts of Gujarat. By doing so, milk producers of Gujarat Dairy Cooperatives have shown their concern, awareness and commitment for betterment of environment.Yearwise details of tree plantation and survival of tree saplings planted is as under. Sr. No Year of tree plantation No. of trees planted (in lakhs) No. of trees Survived (in lakhs) Survival percentage 1 2007 18.90 11 58 2 2008 52.74 26 49 3 2009 84.24 38 45 4 2010 83.5 39 47 5 2011* 72.6 34 47 Total 311.98 148.122 47 *estimated (as survey for survival percentage of the saplings planted in year 2010 is ongoing) According to statistics of Forest Survey of India considering on an average 30-40 cm diameter of these trees, 106 trees would provide one hectare of green tree cover. Considering 47% survivability of planted trees (based on post plantation survey data, around 148.12 lakhs out of 311.98 lakhs tree planted survived during last five years), when they fully grow up, would provide additional 1,39,735 ha. Of green cover which is additional 6.41 percent forest cover of Gujarat State of India.
  • 42. 42 Achievements: This effort to provide green cover to the earth was also acknowledged when the state level apex body of Gujarat Dairy Cooperatives – GCMMF received four successive prestigious “SRISHTI‟s G-Cube Award”-2007, 2008, 2009 and 2010 for Good Green Governance in the “Service Category”. Further, “Amul Green” movement has also been awarded by International Dairy Federation for best environment initiative in the “sustainability category” during the 4th Global Dairy Conference held at Salzburg Congress Center, Austria on 28th April, 2010. It has been estimated that when one tree is cut, in monetary terms there is loss or Rs. 33 lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for reduction of pollution of atmosphere and Rs. 5.3 lakh towards Flowers / Fruits and habitation to birds – animals). But the benefits that accrue to mankind when a tree is planted cannot be measured in money and is priceless. The producer members of GCMMF have really set an example for all the cooperatives and other institutions to turn India green in the era of Global warming and environmental crisis. When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh trees in just five years and are planning to plant more trees every year, they are doing an invaluable – truly Amul – service to the society. In an era of global warming, Amul is contributing its share in making Gujarat lush green. In this way, the milk producers of Gujarat are ushering in a silent revolution of greening Gujarat.
  • 43. 43 Amul‟s Baby growth plan One of the best public relation activities done by Amul is designing the communication strategy for baby care and growth collaborating with trained and professional doctors . Amul‟s Baby growth plan included:  Pregnancy  Anti-Natal Care  Confinement  Breast Feeding  Outside Feeds  Changeover to solids  Baby‟s Routine  Baby‟s Progress  Prevention Of illness  First Aid  Common Ailments  Sick child  Emotional Problems in infancy and childhood  Points to remember  Suggesting Names for baby girl and boy. Amul has support of millions of Indians, and it encourages social views and express concerns. It is the best way of engaging the brand with public. No one has done such activities to promote their product .Many times Amul promoted their brand name in events and sponsored in many sports events as well. Amul also encouraged woman to participate in diary cooperative socities. To develop and enhance leadership qualities and skills among womens, Amul member unions organizes three managing leadership workshop at Prajapita Brahmakumaris, Mount Abu, Conduct annula general meetings and Hoshin Kanri meetings as well, Organizes Amul Yatra to Anand.
  • 44. 44 Target Market and Competitors Amul diffrentiated its product with all other brands and substantially diffrentiated market segments . Following flow chart will explain the segmentation of Amul. Amul target market mostly seven to twenty followed by 40- 50. After the most attractive segments are selected, a company should not directly start targeting all the segments. The attractiveness of the segment is also depending on other important factors. In the main activity of defining target market, four sub activities are given which are the bases for deciding on which segments are actually targeted. There are 4 sub categories that defines the target segments.  Defining the abilities of the product and resources needed to eneter in the market  Analyzing competitors on their resource skills  Considering the company‟s abilities compared to competitors  Deciding the actual target markets Amul has targeted their milk products to various segments of the market. Products like Nutramul Energy Drink, Amul Kool Chocolate Milk,Amul Kool Flavoured bottle milk are targeted for kids aged 4-16 specially school going. Products such as Amul Kool Milk Shake, Amul Kool Milk, Amul Kool Café, Kool Koko, Nutramul Energy drink are mainly targeted for the college going young people. Whereas, products such as Amul Masti spiced buttermilk, Amul lasee , Amul Kool Thandai are targeted for specific season. Define corporate objectives Determine actual potential customers Identification of segments Analyse competetitor intensity for each segment select attractive customer segment Define Target Market
  • 45. 45 Competitors Amul vs Nestle vs Mother Dairy: Indian Dairy Business Difference India has the largest and fastest milk producers in the market in the world. If the growth of the sector is estimated to be in observation that in next ten years production will increase to about three times today‟s number. India Produces milk with the lowest cost at around 40 cents per liter. Amul, Nestle , Britannia, Motherdairy are some of the major companies that produce milk and milk products in India. However , factors such as lack of adequate amount of fodder and unavailability of veterinary doctors have reduced the yield of milk per animal. Amul has stiff competition with these brands and we can analyse these companies to trace the difference between the three. Nestle SA(Switzerland) runs its subsidiary in India with the name Nestle India. It has set up seven factories throughout the country. Apart from India, Nestle SA operates in eighty five other countries. Nestle originated in 1905 and it is named after Henry Nestle. It grew rapidly during World War I . Amul is based in Gujarat, owned by Gujarat Cooperative Milk Marketing Federation (GCMMF) . It has won many awards includes Rajiv Gandhi National Quality Award and Ramakrishna National Quality Award. Mother Dairy is owned by National Dairy Development Board (NDDB). It was established in 1974 . More over its Quality Assurance Laboratory is certified by National Accredition Board for testing and caliberation laboratory (NABL) department of science and technology , Govt.of India.
  • 46. 46 Products Nestle Offers its products in four categories viz Milk Products and nutrition prepared dishes and cooking aids , beverages and chocolates and confectionaries products. Milkmaid, Nescafe, Maggie, Everyday, Polo, Kit-Kat are some of its very famous brands.It has total six thousand brands. Amul delivers Milk, Butter, Ghee, Icecream,Cheese, Milk drink, Amul PRO, Curd (Amul Dahi) etc. Its turnover is 67.11 billion in 2008-09. It has more than 500 products in the market and has greater demand all the time. Mother Dairy on the other hand , in addition to its milk products, it offers the Dhaara- range of edible oils and Safal- range of organized fruit and vegetable business in Delhi NCR where it sells 300 MT /day through a network of 350+ executive retail outlets. Production & Earnings In 2009, Nestle recorded a net profit of CHF $10.43 billion. Amajor portion of this came from Europe and America, with 16% coming from Asia. Mother Dairy markets around 2.8 million liters of milk everyday with a market share of 66% in the branded sector . It has its main market share in Delhi, Hyderabad,Saurashtra, Mumbai. Amul has milk handling capacity of 11.2 million liters per day and recorded sales turnover of $ 1504 million (US) IN 2008-09. With the above comparison the following three brands are complimentary to each other but has some limitations to expand the market. Amul not able to expand their product range from chocolates and health drinks , whereas Nestle was not able to gain maximum sales in milk powder Everyday which is dominated itself by Motherdairy. Motherdairy though they have largest market share in curd and Milk products but due to geographical limitations they fail to become a well known global brand, despite of their SAFAL outlets in Europe and other parts of the country. Domination Amul, Nestle and Mother Diary share a common background of farm produce but diversified market that make them unique with their product differentiation and USP. Amul infact make people aware of their brand name regularly through their topical advertisements , but simultaneously lost some market share with stiff competition of Mother Diary which is more cost effective. Nestle always had a dominant side of snacks and cooking aids such as Maggie and Milkmaid . But as in others Nestle also falter in their health drinks range and that it faced stiff competition with Boost and Horlicks early in 1990‟s , Milo‟s marketing techniques were so vibrant that it pick up sales so rapidly but unfortunately it lost its pace and swept away by other giants. Other Rivals are also create challenges to these brands other than challenge to each other. Britannia, Cadbury, Glaxosmithkilne (Horlicks), Paras, Bru, TATA tea etc. These brands are dominating one type of brand rather than Amul, Nestle and Mother Dairy. Cadbury is dominating the world of chocolates and health drinks as well . Amul has failed to establish a brand name in chocolates because it is dominated by Cadbury dairy milk with largest market share and this possible to be a challenge for Amul.
  • 47. 47 Secret behind Amul‟s success on July 1 2009: One of India‟s most successful organizations, Amul has been ranked among the largest dairy business in the world by International Farm Comparison Network(IFCN). The IFCN analyses global dairy trends and guides the stakeholders in the dairy sector in over 80 countries. Amul has been ranked at number 21 in the world based on milk production during the year 2007. With the seller growth pace that it has set, Amul is likely to move up the ranking this year. The other dairy business includes in the ranking are Fonterra, Campina & Friesland, Dairy Farmers of America, Arla Foods, Dean Foods etc. The white revolution heralded by Amul under the leadership of Dr. Vergheese Kurien boosted India‟s Milk Production. India‟s Milk production has hit 114.4 million MT making it largetst milk producers in the world, ahead of United States Of America and Germany. Many believe that the charm lies in the catchy lines, because the humour is what anybody would enjoy. They don‟t pander to your nationality or certain sentiments They don‟t pander to your nationality or certain sentiments. It is pure and simple and every day fun. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has made India one of the largest milk producers in the world. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life purpose. The purpose – freedom to farmers by giving total control over procurement, production and marketing. Finally according to the website Amul.com “Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage . To hope. To live.
  • 48. 48 Chapter 3 Research Methodology Problem The research problem is Feasibility or possibility of Amul to be an independent brand name in Chocolates and effective communication and public relation activities to promote their image in the product. Every time Amul product is advertised under butterly girl and it is not always possible that the umbrella strategy and topical cartoons works. It is critical to define Amul marketing and communication strategy. They have used umbrella strategy to communicate to the whole masses and as a barnd they are conscious about it but how they can pierce through the diverse market segments with different needs and wants , with several products under them.Only few products have good sales turnover , but other products such as Chocolates, Sweets (Gulab Jamun) are far dominated by domestic and international brands. Amul has not known for vibrant marketing giant but they produce some of the finest product on the list, they lack some of the best strategies that adopted by their rivals. Lack of control of yield, if we consider , the control of milk yield they are the world‟s largest and leading market in milk production. With so many new comers entering in the country competition becoming tougher day by day , so it is a challenge for Amul. In the research problem the key issues discussed here how Amul uses communication strategy to present a position in the market. Scope of study Amul The following research study talks about different communication strategies of Amul during the past and analyzing the strategy during the years adopted by them. Further how Amul had long vision to have a market positioning. As a student of public relations it is one of the best method to understand the different public relation strategies that made them identified in the market. The following point will clarify further  To study the various communication strategies adopted by Amul  To study the facets of Amul products  How Amul positioned their brand  To analyze the competition graph of Amul  To analyze the plans and schemes.
  • 49. 49 Source of data collection The information collected from the presentations and blogs and official websites and from books, the following source for online data collection are as follows: http://www.scribd.com/doc/52993273/amul-branding, http://amul.com/, Public Relation management a comprehensive insight by Ajit Pathak ISBN 81-8430-038-7, http://www.scribd.com/doc/72228056/Saleas-and-Promotional-Strategy-of-Amul-Ice-Cream, http://www.skylinecollege.com/blog/dissertation/amul-communication-strategy Choice of research design The research design is systematically arranged for the case study, which explains the strategies adopted by Amul . Case study,a form of qualitative descriptive research that is used to look at individuals, a small group of participants, or a group as a whole. Researchers collect data about participants using participant and direct observations, interviews, protocols, tests, examinations of records, and collections of writing samples. Starting with a definition of the case study, the guide moves to a brief history of this research method. Using several well documented case studies, the guide then looks at applications and methods including data collection and analysis. A discussion of ways to handle validity, reliability, and generalizability follows, with special attention to case studies as they are applied to composition studies. Finally, this guide examines the strengths and weaknesses of case studies. Research instruments used Websites and presentations as a research instruments for the source for collection and authentication datas, clinically proven for the fact that all the instruments were used are correct justification of the research purpose . The following justification of the research instruments.  Analytical level study  Descriptive level study  Delebrative level study The analytical element of the study includes the interpretations and meaning are drawn from the study , stated and presented in depth so that it canbe easily understood in the context of history of the company , the innovation and how it emerged and why. Descriptive element of the study description of events ie. Public relation activities and other marketing activities Delibrative elements of study brought about the changes during the years and negotiations made, positioning etc.
  • 50. 50 Chapter 4 SWOT ANALYSIS Strength Demand profile- absolutely optimistic Margins- quite reasonable Flexibility of product mix- Tremendous , with balancing equipment you can keep on adding to your product line Availability of raw materials: abundant . Presently , more than 80% of milk produced is flowing to the unorganized sector. Strong communication- The above points contributes to strong communication networks Topical advertisement- it is the biggest strength of Amul of its advertising strategy and associating with its legacy with the help of public relation activities. Product Quality- As said above paragraphs, Amul‟s world class products are famous around the world and that is the reason it has strong market force. Engaging- Amul always connects with present scenario Weakness Competition- with so many new comers in the market entering in this industry, competition is becoming tougher day by day. But then competition has to be faced a ground reality. The market is large to carve out their niche. Consistency- Amul lacks consistency in advertising and not vibrant kind of advertising, Amul‟s public relation activities are also very less frequent, sponsoring of events are also once in awhile, even the London Olympics sponsoring Indian team was not on large scale . No specific targets- Amul lacks specific targets that they want to communicate they are unable to satisfy the huge customer needs at regular intervals. No clarity with brand- Amul infact was able to position their market with mascot of utterly butterly but they hardly utilizes much physically, not much large hoardings in number, no clarity with brand‟s identity in each of the topical ads , everytime covers some topics that has brand‟s views with the presence of the utterl butterly girl , but it is not sufficient to have a consistent market position , people fail to understand the products true identity. No new sponsorship and promotional publicity – Amul hardle does any public relation activities onceor twice not regular and it can be a huge threat for them. Opportunities “ Failure is never final, and success never ending”. Dr.Kurien bears out this statement perfectly. He entered this industry when there were only threats. He met failures head on and now he is clearly an example of „never ending success‟! If dairy entrepreneurs looking for opportunities in
  • 51. 51 communications and marketing is to develop a brand loyalty among customers , packaging and presentation . Key potential areas of value addition: Steps should be taken to promote Amul products regularly in the market to create an awareness and brand recall. This will lead to greater presence and flexibility in the market place along with the opportunity in the field of brand building. Steps should be taken seriously on public relation strategies, how better Amul can use their „Utterly Butterly‟ girl in promoting brand. Conducting CSR events and advertorials, newspaper articles , Awards etc. Create an active social media platforms to engage with customers with regular updates in Twitter and Facebook pages . Excellent opportunity in sponsoring the events and cookery shows also. There is a need to have a constant upadate of activities and events conducted by Amul. Threats Milk Vendors, the unorganized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers with respect to product quality and for profit margin. The study of this SWOT analysis shows the „strength‟ and opportunities‟ far outweigh „weakness‟ and threats. Strength and opportunities are fundamental and weakness and threats are transitory. Any investment idea can do well only when you have three essential ingredients : entrepreneurship (the ability to take risk), innovative approach (in product lines and marketing) and values (quality and ethics). The Indian diary industry, following its delicensing has been attracting large number of entrepreneurs. Their success depends on factors such as an efficient economy, procurement network, hygiene , cost effective facilities and innovativeness in the market place. All the need is to be done is: to innovate, convert products in to commercially exploited ideas. All the time keep reminding yourself. The market need to be captured by good communication strategies. Ability to attract customers with good public relation strategies. Public Relation strategies  Amul as a brand , organize press conference on various activities that they are doing publish news stories, conduct interviews conduct exhibitions  Develop a concept that Amul can directly associate with people and create advertising that Amul is the part of their family for long years.  Sponsor more sports events and teams, try also in Moto GP events also.  Conduct stage shows , samples , inserts, pamphlets, flyers for various new products launched and existing as well.
  • 52. 52 Suggestions Amul has done great to the extent that they are in market, but there are some threats for them , Amul has even never compromised with their products quality and that could be highlighted in their advertisements and corporate films to attract investors and cutomers. Amul in advertising:  Advertisements should be made in such a manner that they had a strong brand recall value  They should have used more attractive jingles in their advertisements  Rather than advertisements covering all products they should focus on single product advertising . Because if it tries to advertise all the products then it leads to advertisement clutter  As we can see the advertisements are not as humorous and not having pun to that extent as we can see in Hoardings.  Advertisement fails to touch the heart of customers, add some more pun and humourus and emotional copy in int.  Use celebrities for endorsement. Outdoor advertising  Hoardings should be more creative and eye catchy  Billboards should be more and attractive that can have a better reach  Use more topical ads of mascots connecting with the products  Make sure that your hoarding should be understandable and pleasing. Online media  Use more social media platforms regularly  Regular updates on twitter pages  Conduct contest and special offers , users comment is important  Generate a favorable content that engage users  Add daily videos in YOUTUBE about the activities Improvements  Try and change the perception of people through word of mouth about Amul  There is a need to give advertisement only to memorize  Company should take care of packaging and marketing segments  Company should be more active in public relation activities .  Company should do vibrant advertising regularly to have a brand reacall  Built community relations and more CSR‟s
  • 53. 53 CONCLUSION This brings to the end of my project report. I hope that I have been able to bringforth the point for which I had undertaken the project . They had put much efforts on creativity. Amul is one of the successful business houses and other companies should learn from them that how to do their business in corporate social responsibility manner. This shows that Amul uses only 1% of its turnover for promotions. This shows that it is not necessary to spend millions on promotions when you have creativity. Amul brand management strategy is effective with the help of effective advertisement of the utterly butterly girl, its longest advertisement and longest campaign in 1967, as it was effective and also reflected in its sales of Amul butter which was jumped from INR 1million in 1967 to 5 billion in 2007. Over the last 40 years , the basic structure of the campaign has remained the same with the Amul girl holding out her favorite packet of butter. Amul sales doubles every year, the biggest headache is its marketing communications and supply chain. Amul‟s umbrella branding and direct marketing gives a good platform to build for the growth of business of Amul.