REPORT OF A CASE STUDY ON

AMUL DAIRY: CAMEL MILK LAUNCH IN INDIA

TARGET SEGMENTS

Cities Ahmedabad, Delhi, Jaipur, Mumbai

Age Flavored milk- all age to strengthen their immunity, non -flavored
milk- 35+ (those with type 1 diabetes).

Young Autistic patients <15 years age.

Lifestyle Health Conscious Urban population.

Lactose Intolerant consumers.

Customer seeking benefits

Behaviour User status-potential, first time users

Customer readiness- not aware about the product

Positioning- A high nutrient milk product line with special medicinal properties
for health conscious consumers.
SWOT ANALYSIS

•Low availibility
•Robust Distribution network •Complex supply chain
•High Functional benefits •Short shelf Life
•Advantage of AMUL as Umbrella •Higher price compared to
brand. cow milk.

Strength Weakness

•Absence of major
competitor for camel
•Customer
Threat Opportunity mik
•Growing market of
reaction to taste is health concious
unknown. consumers
•Decreasing Camel •High Disposable
Population income of middle
class
•Export Opportunities
LEVELS OF PRODUCT

•Nutritional Benefits
•Insulin of 52 microunit per mL

Core benefit •Presence of anti-bacterial properties

•Develops immunity

Basic • Liquid and powder milk with Vitamin C,

Vitamin B1, Lower fat, Calcium.
Product

• Natural Probiotic Properties

Expected • Effective anti oxidant

Product

• Home delivery
Augmented • Availability across different channels
• Attractive packaging.
Product

• More Number of flavors in flavored milk

Potential products.
• Ensuring Customer Delight.
Product
PRODUCT

Type of product--- Specialized Product

Product variants
1. Liquid non- flavored Milk SKUs – Composition of 70% camel milk,30% cow’s milk(to
neutralize the salty taste of camel milk)
2. Milk Powder-
3. Flavored Milks Tetra Packs SKUs

Functional Benefits
1. Presence of Vitamin C, Vitamin B1, and Calcium
2. Beneficial for patients of Autism, Type 1 Diabetes patients( High Insulin)
3. Easy to digest
4. Can be consumed by lactose intolerants (baby boomers).

Packaging
1. Tetra packs- SKU sizes of 200mL, 500mL, 1L
2. Flavored Milk glass bottles- 200mL
3. Powder sachets -20 gram, 50 gram

Points of difference from competitors

Only one Competitor exists in the market that sells camel milk products-
Aadavik Milks
PoD
1. The price will be reasonable because of economy of scale unlike that of
Key Points:
Aadavik.
KEY 2.POINTS
Better Freezing technology
3. Better availability due to robust distribution network.
  For packaging, we cannot use poly pouches because there are risks of spill offs over long
distances. Hence, tetra packs have been suggested.
 To reduce plastic wastes, Sachets will be made from disposable compost based
packaging with vacuum and flavored milks will be served in glass bottles, in line of
recent PET bans by some states.
 The Liquid Milk comprises of 70% camel milk and 30% cow milk. Cow milk will be add
Vitamin A, Vitamin B2, folic acid and pantothenic acid which camel milk lacks in. It will
help in reducing the salty taste of camel milk.

SOURCING
Expected Quantity Sourced-
According to Union agriculture ministry’s 19th livestock census report of 2012,
Camel population in India is 400,000
Milch camels are estimated to be 210,000.
Note- It is difficult to collect milk directly as the camel breeders always keep moving place to place. Hence it is
to be collected through Camel Milk Breeders Associations (CMBA) and supply it to the nearest milk producing
cooperatives
Camels can breed 1 calf every 2.5 years
(http://www.bwcindia.org/Web/Awareness/LearnAbout/Camels.html)
Camels on average have a 15 years fertility period and hence can give birth to 5-6 calves
Total Lactation period of camel- 15 months
Weaning period of camel calf- 10 months
Daily milk yield of Dromedaries Camel in India- 6.9 litres
Average milk requirement of camel calf- 2 litres per day
Average expected milk output from Indian Camels- 5 litres per day (with some allowances for domestic
consumption)
(http://www.fao.org/docrep/003/x6528e/x6528e02.htm)

Regions of high camel population densities- 7 (as per case study)

No. of major camel breeder associations- 3 (to be setup; 1 at Kutch already existent)
Female camels that can be tapped through big CMBA’s-2000* 3= 6000
 Average potential total output at present= 6000*5= 30000 litres per day (Cow milk sourced by Amul
per day is 60 lakh litres)

OPERATIONS-
1. TetraPak /Flavored milk - Pasteurization, Packaging (Pasteurisation at High Temperature & less
time-UHT which prevents de-naturation of proteins)
2. Milk powder- Spray-drying, Packaging (Spray drying is considered as it is around 10 times less
costlier than Free-drying)

SCM Model-

Modern Retail or e-
commerce channel partners

Individual herders/farmers will be organized by Camel Milk Breeders Associations (CMBA) in Village
level cooperative societies (VCS) (with chilling units). The collections from VCS will be send via
refrigerated or non-refrigerated insulated stainless steel tankers (designed for 1’ increase in
temperature in 24hrs) to State- level Milk Processing Union or Plant. After processing and packaging,
the finished product will be send to Exclusive brand outlets or Modern retail stores or warehouses of e-
commerce partners via various brand wholesalers.
PRICING
Cost of raw camel milk procurement- Rs. 40 per litre (https://www.business-
standard.com/article/companies/amul-gets-fssai-nod-for-camel-milk-to-launch-by-march-2017-
116120101427_1.html)
Operational costs for cow’s milk- 5% of procurement costs (as per case study)
Around 80% of the retail price is supposed to be returned to the camel herders.
Premium pricing strategy is intended for the upliftment, encouragement and formalization of the
nomadic herders. Also, the incentives will encourage in better fodder and immunization programs of
the camels.

PROMOTION MIX

1. Trade discounts
Trade discounts to retailers for purchasing and providing favorable shelf positions.
2. Trade fairs- To attract bulk buyers.
3. Tie ups with Export promotion Bodies for exporting in established Camel milk
markets in Middle East region.
4. Bundling -500mL camel milk + 20g Amul chocolate (confectionery forms 0.6% of
Amul’s retail share).
5. Tie ups with premium gym owners and chains like Gold gym to attract health
conscious segment.
6. Free samples-Organizing Camps outside public parks to attract diabetes patients and
making them try Camel milk samples

Advertisement
ATL Techniques
1. Articles in health and fitness magazines.
2. Purchasing spots on national TV channel
BTL Techniques
1. Social media campaigns on Facebook, Twitter, YouTube, etc.
2. Collaborating with websites like Healthkart.com to sell products using invites only.
3. Direct mails by online channel partners.
BRANDING

The Product Line will be under Branded House- Amul

Mascot-Polka Dotted Amul Girl Feeding Camel
Tagline-Amul, Taste of India. “Ab Tasty bhi Healthy Bhi”
No Brand Cannibalization: - The Camel milk Product Line is launched as a
specialized product with special focus on diabetes and autistic patients, hence
should not cannibalize the existing product lines in the mix.

******