Amul followed a unique business model, which aimed at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who were its suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was not sold before the end of the day.The cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came to be known as the "Anand pattern" cooperative system. It was a three-tier structure that comprised village societies, district level dairy unions and a state level federation.
High profile locations: Amul parlours are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro rail and railway stations in Gujarat.
So Amul can overcome it as earlier it had to overcome this problem in the Mumbai market. Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. Amul should direct its resources towards cashing in on Walls market development.
INTRODUCTION Formed in 1946, is a dairy cooperative movement in India. A brand name managed by Gujarat Co-operative Milk Marketing Federation(GCMMF) Jointly owned by 2.79 million milk producers in Gujarat Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.
INTRODUCTION Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries Fresh plans of flooding the markets of Japan & Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul. Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs 900 crore organized ice-cream segment.
BUSINESS MODEL Amul followed a unique business model. "Anand pattern" cooperative system Every day Amul collects 8.4 million liters of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods to over 500,000 retail outlets across the country.
AMUL GROWTHSales Turnover Of 1505 million US dollar in 2008-2009 Sales US $ (in million) 1600 1400 1200 1000 Sales US $ (in million) 800 600 400 200 0
Intelligent Marketing One of the most conservative FMCG entities, GCMMF spends a mere 1% of its turnover on promotions. GCMMF has written and re-written rules of the game. Amul butter girl is one of the longest running ad campaigns in the country for 41 years. Intelligent marketing of milk, icecream and
EXPANSION TO FOREIGNSHORES GCMMF had signed an agreement with Wal-Mart to stock its shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amuls Mithaee Gulab Jamuns are few of the products marketed in the US markets. 50 per cent of Americans being medically obese, and if Amul is really looking to capture the hearts of the second- and third- generation Indians, offering low-fat versions of its brands, would make a lot of commercial sense. Hence targeting the large Indian community in the US markets with its niche products like mithai, packaged ready to eat foods market it can definitely expand its market to a large extent.
Defense Strategy Moving consumers from loose milk to packaged milk and gradually move them up the value chain (tetra pack to beverages) Being exposed to a brand, it is natural for a customer to try more products
Segmentation Wide range of product categories caters to consumers across all market segments. For example, Amul Kool is targeted at children, while teenagers prefer Kool Café, as it has a cool imagery associated with it.
Targeting Changing retail environment Striking out on its own, with Amul Outlets or parlours to deliver consumers total brand experience Launched in 2002, there are now over 4700 Amul parlours across the country, which contributed 3% to the brand’s total turnover in year 2009.
Promotion Given this wide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years. After ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable. The focus shifted to cheese in 2001, Amul Masti Chaas in 2004-05 (sales of Masti dahi grew by 25%), Nutramul and Kool Kafe in 2006 and this year the focus is on Amul Koko — cold chocolate drink
Promotion Uses a variety of media to communicate Most famous is billboard campaign The endearing polka dressed girl and pun at various issues increased brand’s fan following.
Promotion Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets. The Chef Of India contest invites people to come up with recipes using as many Amul products as possible. The recipe can be submitted on Amul’s website. Slogan Likho Disneyland Dekho Contest
Promotion Amul Maharani contest: in this contest questions about Amul are asked
Promotion AMUL sponsored the Singing Competition AMUL Star Voice of India, Amul music ka maha mukabla
SUCCESSFUL PRODUCT STRATEGY:1. Product Positioning Strategy- Low price Amul Ice - Creams made Kwality walls life hell. Chocolate milk was launched ‘Amul Kool koko’2. Product Re-Positioning Strategy- Jaldhara – Narmada Neer
SUCCESSFUL PRODUCT STRATEGY:3. Product Overlap Strategy – Amul Processed Cheese Vs Cheese Spread Nutramul Energy Drink Vs Amul Kool4. Product Design Strategy – Use of Utterly – Butterly Girl since 19675. Product Elimination – Eliminated Jaldhara – bottled water
CONCLUSION Amul has risen from Indian soil and it remains Indian in every sense. There is ample scope in the low priced segment as also in other categories. There are a significant number of retailers who are currently stocking more than two brands. Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.