This document is the October 2012 edition of MARkezine, the marketing magazine of the School of Inspired Leadership. It contains articles focusing on the fast moving consumer goods (FMCG) industry in India. The lead article examines important growth drivers in the rural FMCG sector and prospects for growth. Another article discusses a case of ambush marketing by Hindustan Unilever. A third article analyzes loyalty among consumers in the FMCG sector. The magazine is edited by students at the School of Inspired Leadership and pays tribute to Dr. Verghese Kurien, who helped transform the lives of farmers through the success of the Amul brand.

1. October 2012
MARkezine
ezine
Marketing magazine of School of Inspired Leadership
FMCG Industry
Moving along
with Fast Moving
Consuner Goods
“With the variety on offer,
customers have little to
worry about issues like
inflation. Life's not so
blissful for the players
though, and inflation is
just the tip of the
iceberg” says Savreen
Gadhoke of B&E.

2. October 2012
TEAM MARKezine 's Doddle
Dear Readers,
With a long battle won at last, the government has been able to allow FDI
in multi and single brand retail. FDI in other sectors like insurance, pension
and aviation are more than welcome in India. By allowing big players to
invade India, it seems like a second revolution after liberalization in 1991
which gave the Indian economy a high growth rate irrespective of the fact
that even at that time many of the political parties raised serious
objections. Even today the entire nation has mixed opinions about the
impact of such a decision. The future will tell us, whether the move is
meant to help the poor Indian farmer or the Indian consumer or to fuel
more foreign currency into the economy to offset the petrol price rise or is
it just a play of politics.
What we need to think about is that are we dependent on such timely
foreign funded revolutions to act as a catalyst to pump up the growth rate
of our economy? Well, No! We had an inspiring leader who created the Taste
of India and made the poor villagers proud owners of it. Dr. Verghese Kurien
(1921-2012), the founding Chairman of the Gujarat Co-operative Milk
Marketing Federation (GCMMF) was behind the success of the Amul Brand of
dairy products. Today, India faces a dearth of such dynamic leaders who can
create a great impact on lives in the rural sector and build multinationals.
We, the students of the School of Inspired Leadership family pay tribute to
the father of the white revolution in India whose contribution to the farmers'
society has transformed millions of farmers’ lives.
©SCHOOL of INSPIRED LEADERSHIP 1 | MARKezine

3. October 2012
One step in the right direction is followed by more. The news that
Companies Bill 2011 will make CSR mandatory for companies is another
such step. In a land of diversity, like ours, we also have mixed views about
whether it needs to be made mandatory of not.
In this edition of Markezine we have an insightful article focusing on the
FMCG in rural India. It examines the important growth drivers for Indian
FMCG industries, its impact on the Indian economy and growth prospects.
We have an interesting article on ambush marketing done by HUL. We have
also focused on how loyal is today’s FMCG customer.
As always, we try our best through our efforts to bring in excellence in our
work with a hope that we will all learn and grow together.
Happy Reading!
Team MARKezine
.........................................................................................................................................................................
THE MARKezine TEAM
Editors
Ishwarya Lakshmi | Sabharish Koruturu | Sandeep Singh | Shivaraj Ganesh
Creative Design
Karan Chhabra | Nikhil Girhotra | Sheeza Shakeel
©SCHOOL of INSPIRED LEADERSHIP 2 | MARKezine

4. Contents October 2012
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FEATURED ARTICLES PAGE NO.
.............................................................................................................................................................................
FMCG in Rural India 5
Important growth drivers and the growth in the rural
sector Sarvesh Pingulkar, School of Inspired Leadership
.............................................................................................................................................................................
The Dirty Picture in FMCG 16
Ambush marketing by HUL
Kushagra Jhalini, School of Inspired Leadership
.............................................................................................................................................................................
“Butterfly Consumers” of the FMCG Sector 19
Loyalty in the FMCG sector
Sandeep Singh, School of Inspired Leadership
.............................................................................................................................................................................
4 Ps Unleashed 24
4 Ps for Dove
Sarvesh Pingulkar, School of Inspired Leadership
.............................................................................................................................................................................
Dr. Verghese Kurien 28
Amulya person Lost
Shivraj Ganesh, School of Inspired Leadership
.............................................................................................................................................................................
©SCHOOL of INSPIRED LEADERSHIP 3 | MARKezine

6. FMCGIN RURAL INDIA October 2012
Sarvesh Pingulkar
Business Leadership Program
What are FMCG goods? Care, Marico Industries,
NIRMA, Coca-Cola, Pepsi and
FMCG is an acronym for Fast
others.
Moving Consumer Goods (also
named as consumer packaged
goods), which refers to goods
that we buy on daily basis for
frequent consumption and
these goods have high turnover.
The goods in this category
include all consumables (other
than groceries/pulses) like
toilet soaps, detergents, What is rural market?
shampoos, toothpaste, shaving
The FMCG sector is divided into
products, shoe polish, packaged
two distinct segments –
food, household accessories
• The premium segment,
and certain electronic goods.
which caters mostly to the
Major players in this sector urban upper middle class.
include HUL (Hindustan Unilever • The popular segment with
Ltd.), ITC (Indian Tobacco prices as low as 40% of the
Company), Nestle India, AMUL, premium segment. This
Dabur India, Asian Paints segment is further subdivided
(India), Cadbury India, into Mid-priced segment
Britannia, Procter and Gamble (semi-urban) and Low priced
(P&G) Hygiene and Health segment (mass rural market).
©SCHOOL of INSPIRED LEADERSHIP 5 | MARKezine

7. October 2012
Hence, the rural market, The important growth
present at the bottom of the drivers for Indian FMCG
pyramid, is characterized by
industry in near future
presence of poor population,
will be–
low median income, poor
infrastructure and agrarian (not • Availability of key raw
industrial) activity. materials, cheaper labor costs &
presence across the entire value
But in recent past, this
chain, giving the Indian
perception has changed
companies a key competitive
because of the increasing per
advantage.
capita income of the rural
population. The villages that • Rise in per-capita consumption
come under the sphere of and disposable incomes
developing metros and (specifically in rural area)
neighboring cities are enabling the companies to focus
responding to the overall on premium brands.
development. Also, growing • Increase in category
size of educated population, penetration in rural markets with
rising per capita disposable strong distribution channels.
income, along with the higher Investment in this sector stocks
aspirations of people have also attracts investor’s attention
transformed the rural market because the demand for
into a place with immense an FMCG product is throughout
growth possibilities. the year.
This change has also impacted • Constant innovation in existing
the growth drivers of FMCG products from customer
industry, which now focus on feedback.
©SCHOOL of INSPIRED LEADERSHIP 6 | MARKezine

8. October 2012
Impact of Rural FMCG FMCG Industry - India 2012
(in Billion Rs.) _ AC Nielson
segment on Indian Report
Economy – ....................................................................................
2000
...........................................................
...........................................................
The FMCG sector is the fourth
largest sector in Indian ....................................................................................
1500
economy (Rs.1830 billion) and
Rural segment forms 1/3rd of ....................................................................................
1000
the total FMCG sales in India.
The report by AC Nielson on ....................................................................................
500
Indian FMCG industry shows
that FMCG sector will grow at ....................................................................................
15-20% per year and reach the 0 2010 2011 2012
size of Rs. 6000 billion by
Industry Size
2020.
Urban market Size
At present, urban India Semi Urban abd Rural Market
accounts for 66% of total FMCG Size
consumption, with rural India
The growing spending of rural
accounting for the remaining
and semi-urban segment
34%. However, rural India
towards FMCG products is
accounts for more than 40%
mainly responsible for the
consumption in major FMCG
growth in this sector, asking the
categories such as personal
manufacturers to deepen their
care, fabric care and hot
concentration on high sales
beverages, along with long
volumes.
term growth categories like
food and dairy. As per the analysis by
©SCHOOL of INSPIRED LEADERSHIP 7 | MARKezine

9. October 2012
ASSOCHAM, Companies like • Slowing consumption rates
HUL and Dabur India get 50% in urban markets
of their sales from rural India. Currently, in urban India, rising
While Colgate Palmolive India disposable income & are leading
and Marico constitute nearly to “value vaulting” wherein,
37% respectively, however, after a threshold level of
Nestle India Ltd and GSK penetration, consumers move
Consumer drive 25% of sales up the value chain, rather
from rural India. than increase consumption.
Hence, companies are looking
FMCG: Urban vs Rural segment
growth - 2003 - 2012 towards the rural segment for
18 18
.......................................................................................... higher sales volumes.
20
.........................................
.........................................
14 16
17
15 ..........................................................................................
10 Also, the urban population is
13 14
10 ..........................................................................................
10 developing a craze for organic
5 products in the FMCG sector and
3
..........................................................................................
0 since there will not be a large
2003 2005 2007 2009 2011 2012
-5 .......................................................................................... number of FMCG organic
-8
-10 .......................................................................................... products in the near future, this
Urban Rural
industry will have to look
towards rural markets
Why focus on rural (ASSOCHAM report’11).
markets?
• Rising rural markets
With the presence of ~12.2%
in the rural and semi-urban
of the world’s population in the
areas and the FMCG market
indian villages the Indian rural
penetration is currently about
FMCG market is something no
2% in general as against its
one can overlook.
©SCHOOL of INSPIRED LEADERSHIP 8 | MARKezine

10. October 2012
total growth rate of about 8%. recently announced has a cut of
The Indian rural market with its 4% in excise duty to fight with
vast size and demand base the slowdown of the Economy.
offered a huge opportunity that This announcement has a
FMCG companies cannot afford positive impact on the industry.
to ignore. With 150 million But the benefit from the 4%
households, the rural population reduction in excise duty is not
is nearly three times the urban likely to be uniform across
population. FMCG categories.
Due to the recent waiver of
loans, national rural
employment guarantee scheme
and increasing minimum
support price, disposable
income in rural India has been
increasing.
• Foreign Direct Investment
(FDI)
Automatic investment approval
• Governmental Policy (including foreign technology
Government has enacted agreements within specified
policies aimed at lifting of the norms), up to 100% foreign
quantitative restrictions, equity is allowed for most of the
reducing excise duties, FDI and food processing sector except
food laws resulting in an malted food, alcoholic
environment that fosters beverages and those reserved
growth. The government
©SCHOOL of INSPIRED LEADERSHIP 9 | MARKezine

11. October 2012
for small scale industries (SSI). addition to easy availability of
There is a continuous growth in raw materials.
net FDI Inflow.
• Sectoral Opportunities
• Vast Market opportunities Dairy Products - India is the
Rural India accounts for more largest milk producer in the
than 700 Million consumers or world, yet only around 15% of
70% of the Indian population. the milk is processed. The
The working rural population is organized liquid milk business is
approximately 400 Million. And in its infancy and also has large
an average citizen in rural India long-term growth potential.
has less than half of the
Packaged Food - Only about
purchasing power as compare
10-12% of output is processed
to his urban counterpart.
and consumed in packaged
• Export - “Leveraging the form, thus highlighting the
Cost Advantage” huge potential for expansion of
Cheap labor and quality product this industry.
& services have helped India
Oral Care - The oral care
achieve a cost advantage over
industry, especially toothpastes,
other countries. Even the
remains under penetrated in
government has offered zero
India with penetration rates
import duty on capital goods
around 50%. With rise in per
and raw materials for 100%
capita incomes and awareness
export oriented units. Multi-
of oral hygiene, the growth
national companies outsource
potential is huge.
their product requirements from
their indian branches. It Beverages - Indian tea market
provides a cost advantage in is dominated by unorganized
©SCHOOL of INSPIRED LEADERSHIP 10 | MARKezine

12. October 2012
players. 50% of the market is HUL is a major established
captured by unorganized player in rural markets. Project
players highlighting high Shakti started in 2001 with the
potential for organized players. objective of capturing the
media-dark regions by turning
RURAL MARKETING BY rural women into direct-to
FMCG SECTOR home distributors of HUL’s
mass-market products, after
Few of the FMCG companies
analyzing the slowing
had understood the importance
consumption patterns of urban
of the untapped rural market
markets. This project is also
and explored it with innovative
aimed at increasing the
techniques.
company's rural distribution
1. Hindustan Unilever reach.
Limited (HUL) – Project
Shakti
The Shakti Entrepreneurs or
volunteers (Shakti Amma)
invest Rs. 20000 initially
©SCHOOL of INSPIRED LEADERSHIP 11 | MARKezine

13. October 2012
to buy products and then sell this initiative, HUL has been
the products door-to-door and successful in maintaining its
earn 10-15% margin on the distribution reach advantage
products. This program helped over its competitors.
the women increase their
2. ITC Limited - Project
income from Rs. 25/day to Rs.
e-Choupal
100-120/day. A support
ITC designed the e-Choupal
program, Shakti Vaani, trains
model to tackle the challenges
people in schools and villages
posed by fragmented farms,
on sanitation and hygiene.
weak infrastructure and the
The main advantage of the involvement of numerous
Shakti program for HUL is intermediaries, among others.
having more firm feet on the Appreciating the significance of
ground. Shakti Ammas are able intermediaries in the Indian
to reach far flung areas, which context, 'e-Choupal' leverages
were economically unviable for Information Technology to
the company to tap on its own, virtually cluster all the value
besides being a brand chain participants, delivering
ambassador for the company. the same benefits as vertical
Currently the Shakti network is integration does in mature
of 55,000 Ammas covering agricultural economies like the
140,000 villages across 15 USA.
states reaching 3 m homes. The
'e-Choupal' ensures world-class
long term aim of the company is
quality in delivering all these
to have 100,000 Ammas
goods & services through
covering 500,000 villages and
several product / service
reaching 600m people. With
©SCHOOL of INSPIRED LEADERSHIP 12 | MARKezine

14. October 2012
specific partnerships with the
leaders in the respective fields,
in addition to ITC's own
expertise. While the farmers
benefit through enhanced farm
productivity and higher farm
gate prices, ITC benefits from
the lower net cost of
procurement (despite offering
They have created a character
better prices to the farmer)
“Sangeeta Bhabhi” to hardsell
having eliminated costs in the
their products in rural India.
supply chain that do not add
The personality of an educated
value. Launched in June 2000,
married woman was conceived
'e-Choupal', has already
to push P&G's leading brands,
become the largest initiative
Tide and Head & Shoulders as a
among all internet-based
dual proposition called 'kamyab
interventions in rural India. This
jodi' in rural areas of Uttar
initiative, which has covered
Pradesh. The company is
over 70,000 hectares, has a
planning to roll the initiative
multiplier impact and reaches
further to cover nearly 5,000
out to over 1.6 million farmers.
villages across the state of UP.
3. Proctor and Gamble -
Growth prospects of
Project SB
FMCG in rural India –
P&G is trying hard to enter the
battle on rural FMCG market, In the future, planned growth of
which will give them a base for rural India will help companies
their vast product portfolio. leverage their efforts.
©SCHOOL of INSPIRED LEADERSHIP 13 | MARKezine

15. October 2012
Creating Buying Power
• Access to credit
• Income generation
Communication Links Shaping Aspirations
• Distribution systems • Consumer education
• Communication Links • Sustainable
development
Tailoring local
solutions
• Targeted product
develpment
• Bottom - up innovation
Increased focus on farm sector if the companies are able to
will boost Rural income, hence convince the rural consumers to
providing better growth buy branded, new generation
prospects to the FMCG products, they would be able to
companies. generate higher growth in the
near future. Surely, the rural
Better infrastructure facilities
income will rise in future,
will improve their supply chain.
boosting purchasing power in
FMCG sector is also likely to
the countryside. But it will test
benefit from the growing
innovative approach, targeted
demand in the market. Because
product development, product
of the current low per capita
access and robust distribution
consumption of almost all the
channels offered by FMCG
products in the rural areas of
companies.
India, FMCG companies have
immense possibilities for References: Google Images
growth. Hence,
©SCHOOL of INSPIRED LEADERSHIP 14 | MARKezine

17. The Dirty Picture In FMCG
October 2012
Kushagra Jhalini
Human Resources Leadership Program
Traditionally, Ambush Marketing certainly remember how Nike
refers to a company's attempt attempted to ambush Adidas
to capitalize on the goodwill, during 2012 Olympics). But
reputation and popularity of a Indian advertising industry,
particular product/event by being a powerhouse of think
creating an association with it, tanks who run their imagination
without any official authorization beyond traditional boundaries,
or consent of the necessary have utilized ambush marketing
parties. in the most creative means,
including advertising campaigns
Ambush marketing has
for companies belonging to
traditionally been the bread and
FMCG as well as aviation
butter for companies craving for
industry.
that extra attention during
promotion of major sporting Procter and Gamble began an
events (most of us would aggressive advertising
©SCHOOL of INSPIRED LEADERSHIP 16 | MARKezine

18. October 2012
campaign, which seemed almost spellbound! Hindustan Unilever
ubiquitous as the company certainly proved that apart from
deployed its billboards at cricket, timing can be
multiple locations (including immensely important in FMCG
advertising space available on industry as well. It was a
bus panels as well) for about a mind-boggling effort by
couple of weeks or so. Their Hindustan Unilever to grab a
billboard advertisement only greater pie of the market share.
conveyed: “A mystery shampoo. This campaign spearheaded by
Eighty percent women say is Hindustan Unilever attracted
better than anything else”, tremendous attention from the
without even mentioning that general public, advertising
the advertisement is about industry and the competitors
Procter and Gamble’s Pantene alike.
shampoo.
It was, indeed, a watershed in
But just before Procter and the Dove saga. And that’s what
Gamble was about to reveal the happened to Procter and
mystery, Hindustan Unilever Gamble’s gamble.
deployed its billboards adjacent
(References: Wikipedia.org,
to those deployed by Procter
gala-marketlaw.com)
and Gamble in most of the
cases, which stated: “There’s no
mystery. Dove is the number
one shampoo!!” We don’t know
about Procter and Gamble, but
this campaign certainly left the
target audience
©SCHOOL of INSPIRED LEADERSHIP 17 | MARKezine

20. The “Butterfly Consumers”
of the FMCG sector
October 2012
Sandeep Singh
Marketing Leadership Program
The demand created by create, but also and maintain
fast-moving consumer goods loyalty among consumers.
(FMCG) will never die out. From
“Loyalty” means faithfulness. it
a simple detergent to clean the
means unwavering devotion. Yet
floors to a pain relief spray, the
the concept of loyalty, at times,
need will always be forever.
runs parallel to our own
The rapidly increasing interests. But this romantic
competitiveness within the ideology is not feasible in a
FMCG market compels an commercial setting. Today, the
organization to not only entice big brands are asking the Indian
the consumers to buy the youth, not only for their devout
organization’s brand, but loyalty but at a certain level,
compel the consumer to commitment as well. And this
continue with the same. It is commitment is born when the
therefore essential that an consumer feels they a are part
organization does not merely of the bigger initiative.
©SCHOOL of INSPIRED LEADERSHIP 19 | MARKezine

21. October 2012
Therefore, the focus of most of
the FMCG companies has
shifted to creating more of
consumer engagement,
involving the consumers in
purchase decisions.
Instead of a physical
company-to-consumer old female, shopping at a posh
approach, big brands are mall in Delhi. Walking past a
seeking the help of social cosmetic counter, she was
media, blogs and digital stopped by a saleswoman.
technologies. Increasingly, Some twenty minutes later, she
brand awareness through social had bought a new brand, at a
media is becoming a key 300% premium to her regular
strategy for any tech savvy brand.
FMCG firm. The most recent What happened in these 20
initiative by NOMARKS to get a minutes to delight her was that
face from the consumers for a frontline person of the store
packaging itself is a great way engaged her and offered her a
to engage consumers, advertise personalized skin analysis to
the brand and build consumer
better understand her skin.
loyalty.
Based on the test, she was
With growing competitiveness, advised on her diet, fitness and
the companies are directly finally, recommended a specific
targeting the consumer’s skincare product. She walked
psyche. One of the better away, delighted with this
examples of this was a 24-year personalized experience. She
©SCHOOL of INSPIRED LEADERSHIP 20 | MARKezine

22. October 2012
would, of course, discuss this Hundreds of birds will sing,
with many of her friends. She is while, dragonflies & many other
not unique. She represents 50 will join in, flowers and fruits
million young Indian consumers will bloom, an odd owl and
who account for over 60% of pussycat will sing along, and the
the new consumption in entire planet will form the
discretionary categories such as chorus and wish him a long life.
durables, skincare and apparel. A genuine effort to save the
planet and create customer
A friend bought a fabulous blue
loyalty, isn’t it?
shirt from LOUIS PHILIPPE,
earlier this year. On his birthday Most FMCG products are low
a month later, to his surprise, involvement products, so
he was greeted with a card incentive and not the product
wishing him happy birthday and becomes the primary reward.
telling him that the card This becomes more relevant, if
certified that a tree had been the incentive is exotic & not in
planted in his name at Satkosia proportion to the cost of the
Gorge Sanctuary, Orissa, in product. But due to its low
association with Grow Trees margins, most FMCG products
NGO for him, for us and for cannot afford to do so.
mother earth. The company Further, there is low product
drew him in by informing him differentiation that leads to low
that this year, friends and customer loyalty and high
relatives would not be the only switching. Customer retention
ones singing on his birthday. becomes very important as
The sky, clouds and winds will acquiring a new customer is
also join in the celebration. five times more costly than
©SCHOOL of INSPIRED LEADERSHIP 21 | MARKezine

23. October 2012
retaining the existing customer. bit too far.
If one organization is not
Another problem with the
providing customer satisfaction,
loyalty program is that they
then its competitor will provide
have become so popular that
the same and drive it out of the
there are actually too many of
market. This is why most efforts
them. We all probably have a
in the direction of loyalty
reward card for every major
program are limited to short
supermarket in the country, but
term efforts to boost sales to
do any of them actually have
achieve quarterly targets or to
our exclusive loyalty? And when
promote new categories / brand
it comes to supermarkets in
extensions. Innovation in
particular, we are often bound
products has become an
to shop at our nearest and most
important aspect which the
convenient shop and not
company needs to address, in
according to
order to keep the customer
the best loyalty scheme.
happy and loyal as there is not
one market in India but many. References: www.facebook.com
In this age of instant
satisfaction, the Indian psyche
is tuned towards a decreased
level of tolerance and greater
expectations. Thus, we can
'satisfy' such a customer but
level of tolerance and increasing
expectation from them to be
'loyal' is stretching the issue a
©SCHOOL of INSPIRED LEADERSHIP 22 | MARKezine

25. 4P Unleashed Dove Soap:
Movement of Self Esteem
October 2012
Sarvesh Pingulkar
Business Leadership Program
Product Promotion
Place
Pricing
(Distribution)
Introduction – Dove entered India in 1995, as
a personal care brand of
Dove was introduced to the
Hindustan Unilever and soon in
world by Unilever in 1957, not
2000; it was tapped to become
as soap but as a beauty bar.
Masterbrand with long term
This product used the marketing
strategy.
strategy - “the product would
not dry your skin because it has From its introduction, Dove has
one-fourth of cleansing milk”. always been known to be
Dove then slowly changed its having characteristic marketing
strategy from “cleansing cream” strategies and in 2004, for the
to “moisturizing cream”, which first time, Hindustan Unilever
made it America’s one of the won “marketer of the year”
most recognizable brand. award for its brand Dove.
Product Mix (4 Ps)
1. Product Strategy –
The important criterion to
decide on product strategy is
to differentiate the product
©SCHOOL of INSPIRED LEADERSHIP 24 | MARKezine

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27. October 2012
Dove at the third position in convinced the consumers to
India pay for combination of good
moisturizer and skin nourishing
• Currently Dove runs the
agent.
promotion campaign using
“Market Specialization Concept”, • Dove has priced the product
which promotes the product as such that high levels of
“Real Beauty” and good for perceived quality are related to
people of all ages. higher price but just high
enough not to be unattainable
• Dove’s promotional video on
to target consumers.
social media (Facebook and
Youtube) has been watched by 4. Place and Distribution
over 30 Lakh people. channels –
• Major distribution channels
• Dove also promotes using
for Dove have been HUL’s
consumer magazines,
regular distribution channels,
newspaper.
including 2500 distribution
3. Price – stockists, 2000 suppliers and
Dove entered the Indian market 6.3 million retail outlets. This
in 1995 with price tag of Rs. created a competitive
50/-, which made it difficult for advantage for Dove.
the consumers to accept it.
• General trade comprised of
Dove then lowered the price to
grocery stores, chemist shops,
Rs. 28/-, focusing on broader
wholesalers and general shops.
Indian consumer market.
• Dove India priced the product
with clear promotions, which
©SCHOOL of INSPIRED LEADERSHIP 26 | MARKezine

29. Dr. Verghese Kurien –
an Amulya person Lost
October 2012
Shivaraj Babu
Marketing Leadership Program
AMUL- Brain child of Dr dairy industry offering
Kurien opportunities galore to
It all started 60 years back at entrepreneurs worldwide.
Anand, an unknown village but
White Revolution
as years passed; it became the
Mr. Kurien gave a unique name
Milk capital of India due to the
to KDCMPUL and it was named
presence of AMUL dairy. AMUL
as Amulya and then modified it
was started in the year 1946 by
to AMUL which stands for
Tribhuvandas Patel as KDCMPUL
priceless. The brand AMUL
(Kaira District Cooperative Milk
(Anand Milk Union Limited)
Producer’s Union Limited). The
came into existence and
phase of KDCMPUL changed became the leading market
when a young engineer, Dr. player in Gujarat. AMUL adopted
Verghese Kurien was employed a strategy of forming several
at Anand, later to be known to co-operative societies for a
the whole world as "the group of villages. The upstream
Milkman of India". Today, India supply chain was entirely
is 'The Oyster' of the global designed by Dr. Kurien.
©SCHOOL of INSPIRED LEADERSHIP 28 | MARKezine

30. October 2012
Co-operative mechanism of Dr. Be it politics, sports, Bollywood,
Kurien kept getting better and the Amul girl is everywhere.
by the end of 1960, Amul had AMUL is often said to be playing
become a success story in the role of a “social observer
Gujarat. Late in 1965 with the with evocative humor”, their
combined efforts of Prime billboards are always very
Minister Lal Bahadur Shastri creative and unique. The
and Dr. Kurien NDDB (National punch-lines by AMUL girl are
Dairy Development Board) was inimitable and they have won
established. the maximum number of awards
in India for any ad campaign
Building the Brand ever! Many other brands tried
AMUL copying what Amul has done
The slogan of AMUL- “Taste of but they have failed miserably.
India” was given by Dr. Kurien.
The first advertisement of AMUL
came in 1966 for AMUL butter
with AMUL girl to compete
against polson butter girl. The
AMUL girl became a huge
success and it is has been
continued for more than 40
years and it is the longest
marketing campaign in India.
The Amul girl is still as young
as she was 46 years back; in
fact she is glowing even more.
©SCHOOL of INSPIRED LEADERSHIP 29 | MARKezine

31. October 2012
Promotional strategy of stood for the ‘Taste of India’. He
AMUL relentlessly focused on this;
that’s why such a big brand was
built on less than one per cent
marketing outlay, while other
companies spent upwards of
seven to 10 per cent as
marketing expenses. He was
conscious that this was farmers’
money and had to be judiciously
spent. Dr. Kurien believed that if
the quality of your product is
good it sells by itself and that is
how with less than one percent
of marketing outlay, he was able
to built a huge reputation
among consumers
Conclusion
Dr. Kurien is the recipient of
more than 150 national and
international awards, including
the Raman Magsaysay Award
for Community Leadership
(1963), Padma Shri (1965),
In Dr. Kurien’s mind Amul stood
Padma Bhushan (1966), Wateler
for an umbrella brand which
Peace Prize (1986), World Food
straddled many categories, and
©SCHOOL of INSPIRED LEADERSHIP 30 | MARKezine

32. October 2012
Prize (1989) and Padma
Vibhushan (1999). Dr. Kurien
writes in his life history, My
unfinished dream will only be
accomplished when the farmers
of India have a level-playing
field to compete with other
forms of businesses. Although
Dr. Kurien is no more with us
his, his contribution to the
country is immense.
RIP Dr Kurien…!!!
©SCHOOL of INSPIRED LEADERSHIP 31| MARKezine

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