MARKETING MANAGEMENT

SHRI RAMSWAROOP MEMORIAL COLLEGE OF

ENGG.&MANAGEMENT

AMUL-MILK
SUMBMITTED TO:- SUMBMITTED BY:-

Mr. PANKAJ DHINGRA GROUP- FANTASTIC 4

SAMARTH SHUKLA
PRATEEK MISHRA
VARUN ANAND
RAVINDER SINGH
Brief history of AMUL

The Kaira District Cooperative Milk Producers’ Union Limited was established
on December 14,1946 as a response to exploitation of marginal milk
producers in the city of Anand (in Kaira district of the western state of
Gujarat in India) by traders or agents of existing dairies. Producers had to
travel long distances to deliver milk to the only dairy, the Polson Dairy in
Anand – often milk went sour, especially in the summer season, as producers
had to physically carry in individual containers. These agents decided the
prices and the off-take from the farmers by the season. Milk is a commodity
that has to be collected twice a day from each cow/buffalo. In winter, the
producer was either left with surplus unsold milk or had to sell it at very low
prices. Moreover, the government at that time had given monopoly rights to
Polson Dairy (around that time Polson was the most well known butter brand
in the country) to collect milk from Anand and supply to Bombay city in turn
(about 400 kilometers away). India ranked nowhere amongst milk producing
countries in the world in 1946.

The producers of Kaira district took advice of the nationalist leaders, Sardar
Vallabhbhai
Patel (who later became the first Home Minister of free India) and Morarji
Desai (who later
become the Prime Minister of India). They advised the farmers to form a
Cooperative and supply directly to the Bombay Milk Scheme instead of
selling it to Polson (who did the same but gave low prices to the producers).
Thus the Kaira District Cooperative was established to collect and process
milk in the district of Kaira. Milk collection was also decentralized as most
producers were marginal farmers who would deliver 1-2 litres of milk per
day. Village level cooperatives were established to organize the marginal
milk producers in each of these villages. The first modern dairy of the Kaira
Union was established at Anand (which popularly came to be known as AMUL
dairy after its brand name). The new plant had the capacity to pasteurize
300,000 pounds of milk per day, manufacture 10,000 pounds of butter per
day, 12,500 pounds of milk powder per day and 1,200 pounds of Casein per
day. Indigenous R&D and technology development at the Cooperative had
led to the successful production of skimmed milk powder from buffalo milk –
the first time on a commercial scale anywhere in the world. The foundations
of a modern dairy industry in India had just been laid as India had one of the
largest buffalo populations in the world.
 PRODUCT
1- Bread Spreads: -Amul Butter: -Utterly Butterly
Delicious,Delicious Table Margarine: -The Delicious way
to eat healthy, AmulLite: -Low fat, low Cholesterol Bread Spread.

2- Milk Drinks : -Amul Kool Millk Shaake, Amul Kool,

Amul Kool Café, Amul Kool Chocolate Milk, Amul Kool
Thandai, Amul Lassee, Amul Kool Flavoured Tetra Pack,
Amul Kool Flavoured Bottled Milk, Kool Koko: -A delight to
Chocolate Lovers. Delicious Chocolate taste, Nutramul Energy
Drink: -A drink for Kids - provides energy to suit the needs of
growing Kids, Amul Masti Spiced Buttermilk: -Amul introduces
the Best Thirst Quenching Drink.

3- Powder Milk: -Amul Spray Infant Milk Food: -Still,

Mother's
Milk is Best for your baby, Amul Instant Full Cream Milk
Powder: -A
dairy in your home, Sagar Skimmed Milk Powder: -Which is
especially
useful for diet preparations or for use by people on low calorie
and high
protein diet, Amulya Dairy Whitener: -The Richest, Purest Dairy
Whitener, Sagar Tea Coffee Whitener.

4- Fresh Milk: - Amul Fresh Milk: -This is the most hygienic

milk available in the market. Pasteurised in state-of-the-art
processing plants and pouch-packed for convenience, Amul Gold
Milk, Amul Taaza Double Toned Milk, Amul Lite Slim and
Trim Milk, Amul Fresh Cream, Amul Shakti Toned Milk,
Amul Buttermilk, Amul Calci+.

5- Cheese: -Amul Pasteurised Processed Cheese: -100%

Vegetarian
Cheese made from microbial rennet, Amul Cheese Spreads:
-Tasty Cheese Spreads in 3 great flavours, Amul Emmental
Cheese: -The Great Swiss Cheese from Amul, has a sweet-dry
flavour and hazelnut aroma, Amul Pizza Mozzarella Cheese:-
Pizza cheese...makes great tasting pizzas!, Gouda Cheese.

6- For Cooking: - Amul/Sagar Pure Ghee: -Made from fresh

cream.
Has typical rich aroma and granular texture. An ethnic product
made by dairies with decades of experience, Cooking Butter,
Amul Malai Paneer: -Ready to cook paneer to make your
favourite recipes!, Mithai Mate: -Sweetened Condensed Milk -
Free flowing and smooth texture. White to creamy color with a
pleasant taste, Pro-biotic Dahi, Utterly Delicious Pizza, Masti
Dahi.

7- Desserts: -Amul Ice Creams: -Premium Ice Cream made in

various
varieties and flavours with dry fruits and nuts, Amul Mithaee
Gulab Jamuns: -Pure Khoya Gulab Jamums...best served piping
hot, Amul Shrikhand: -A delicious treat, anytime, Amul
Chocolates: -The perfect gift for someone you love, Amul
Basundi.

8- Health Drink: - Nutramul: -Malted Milk Food made from

malt
extract has the highest protein content among all the brown
beverage
powders sold in India, Amul Shakti Health Food Drink:
-Available in
Kesar-Almond and Chocolate flavours.

9- Curd Products: -Yogi Sweetened Flavoured Dahi

(Dessert),Amul
Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk, Amul
Lassee.
10- Amul Icecreams: -Royal Treat Range-(Butterscotch,
Rajbhog,
Malai Kulfi),Nut-o-Mania Range-(Kaju Draksh, Kesar Pista
Royale,Fruit Bonanza, Roasted Almond), Nature's Treat-
(Alphanso Mango,Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black
Currant, Santra Mantra, Fresh Pineapple), Sundae Range-
(Mango, Black Currant, Sundae Magic, Double Sundae), Assorted
Treat-(Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta),Utterly Delicious-(Vanila,
Strawberry, Chocolate, Chocochips, Cake Magic).

MARKETING STRATEGIES
1: -Developing demand: -At the time Amul was formed,
consumers had
limited purchasing power, and modest consumption levels of
milk and other dairy products. Thus Amul adopted a low-cost
price strategy to make its products affordable and attractive to
consumers by guaranteeing them value for money.
2: -Introducing higher value products: -Beginning with liquid milk,
GCMMF enhanced the product mix through the progressive
addition of higher
value products while maintaining the desired growth in existing
products.

3: -The distribution network: -Amul products are available in over

500,000
retail outlets across India through its network of over 3,500
distributors. There are 47 depots with dry and cold warehouses to
buffer inventory of the entire range of products.
4: -Umbrella branding: -The network follows an umbrella branding
strategy.
Amul is the common brand for most product categories produced
by various
unions: liquid milk, milk powders, butter, ghee, cheese, cocoa
products, sweets,
ice-cream and condensed milk. Amul's sub-brands include
variants such as Amulspray, Amulspree, Amulya and Nutramul.
The edible oil products are grouped around Dhara and Lokdhara,
mineral water is sold under the Jal Dhara brand.By insisting on an
umbrella brand, GCMMF not only skillfully avoided
inter-union conflicts but also created an opportunity for the union
members to
cooperate in developing products.

5: -Managing the supply chain: -Even though the cooperative was

formed to bring together farmers, it was recognised that
professional managers and
technocrats would be required to manage the network effectively
and make it
commercially viable.

6: -Coordination: -Given the large number of organisations and

entities in the
supply chain and decentralised responsibility for various
activities, effective
coordination is critical for efficiency and cost control. GCMMF and
the unions
play a major role in this process and jointly achieve the desired
degree of control.

7: -Managing third party service providers: -From the beginning, it

was
recognised that the unions' core activity lay in milk processing
and the production
of dairy products. Accordingly, marketing efforts (including brand
development)
were assumed by GCMMF. All other activities were entrusted to
third parties.
These include logistics of milk collection, distribution of dairy
products, sale of
products through dealers and retail stores, provision of animal
feed, and veterinary services.
8: -Establishing best practices: -A key source of competitive
advantage has
been the enterprise's ability to continuously implement best
practices across all
elements of the network: the federation, the unions, the village
societies and the
distribution channel. In developing these practices, the federation
and the unions have adapted successful models from around the
world. It could be the implementation of small group activities or
quality circles at the federation. Or a TQM program at the unions.
Or housekeeping and good accounting practices at the village
society level.

9: -Technology and e-initiatives: -GCMMF's technology strategy is

characterized by four distinct components: new products, process
technology, and complementary assets to enhance milk
production and e-commerce.GCMMF was one of the first FMCG
(fast-moving consumer goods) firms in India to employ Internet
technologies to implement B2C commerce. Today customers can
order a variety of products through the Internet and be assured of
timely delivery with cash payment upon receipt. Another e-
initiative underway is to provide farmers access to information
relating to markets, technology and best practices in the dairy
industry through net enabled kiosks in the villages. GCMMF has
also implemented a Geographical Information System (GIS) at
both ends of the supply chain, i.e. milk collection as well as the
marketing process.

10: -Low Price Strategy: - Amul adopted a low-cost price strategy

to make its products affordable and attractive to consumers by
guaranteeing them value for money.
 SEGMENTATION

Wide range of product categories caters to consumers across

all market segments. For example, Amul liquid milk is targeting
the every segment consumer in the market. Milk is necessary
product , so AMUL is segmenting the product according to their
pricing strategy in the market.

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 400 Amul parlours across
the country, which contributed 3% to the brand’s total
turnover last year.

POSITIONING
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.
• A mass market player, no premium offerings
• USP – Quality with affordability
• Up against niche players – value addition to customers
 PROMOTION
• Given this wide product portfolio, Amul’s approach is to
promote its brands in a rotational cycle of two to three
years.
• 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.
• Below-the-line activity has grown too — such as the Amul
food festival, which has been held for the last four year
between October and December in about 50,000 retail
outlets.

ADVERTISING:-

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows

the "Amul baby" in between George Fernandes and Vajpayee.
Its advertising has also started using tongue-in-cheek sketches starring
the Amul baby commenting jovially on the latest news or current
events. The pun in her words has been popular.

BANNER:-
 PRICING STRATEGY
Competition Based Pricing

Established players such as Amul, Mother Dairy, Nestle and

Gowardhan by offering higher margins to retailers and 10% extra
milk to customers.

Product is lasting distinctiveness from competitor's

product here we can assume

a) The product has low price elasticity.

b) The product has low cross elasticity.

c) The demand of the product will rise.

The prices for an average milk product ranges between Rs.

22 and Rs. 35.

Demand for milk and milk products has increased in urban areas
despite recent price hikes. Govardhan increased price of its milk
products by 5% over the past two months due to increased prices
of cattle food and below-average rainfall. two months due to
increased prices of cattle food and below-average rainfall. Gujarat
Cooperative Milk Marketing Federation, India’s largest food
products marketing organisation and owner of Amul brand, hiked
prices of brands such as ‘Taaza’ and ‘Slim and Trim’ by Re 1 per
litre and by Rs 2 per litre for brands such as ‘Gold’ and ‘Shakti’ in
Gujarat. per litre for brands such as ‘Gold’ and ‘Shakti’ in per litre
for brands such as ‘Gold’ and ‘Shakti’ in Gujarat. The National
Dairy Development Board, a nodal agency for the country’s dairy
programmes, says that feed accounts for about 70% of the cost of
milk production. “Prices of cattle feed increased by 20%
compared to last year due to insufficient monsoon,”

RETAILING: -The concept of Amul parlors initiated in 2002

has come
a long way and has today, evolved into the most visible face of
brand Amul. The network of more than 4000 parlors in almost all
major towns of the country bears testimony to the fact that the
model is hugely scalable and inherently sustainable. This retailing
initiative has not only enabled them to interface directly with
consumer, it has also helped them in there endeavor to reduce
middle-men from the supply chain.

Taking cue from the success of AMUL parlors, commitment from

there
sales team and all there channel partners dealing in milk, ice-
cream and dairy
products; they plan to take the total tally of Amul parlors to 10000
by adding 6000 parlors during the coming financial year.

DISTRIBUTION NETWORK: -

Over a period of time AMUL have built unique capabilities of

distributing Ambient, Chilled, Frozen and Fresh products
simultaneously through there versatile distribution highways.
Today, 3500 Distributors for Value added milk products, 1800
Distributors for Fresh Milk, ensure that Amul Products are
available to all segments of consumers in India through more than
2 Million outlets.
In Federation, there distributor is considered to be the real
Marketing
Manager. To update them with modern marketing concept a
workshop on
Marketing and Sales Management is being conducted in
collaboration with a
premier business school. So far, 1100 Distributors have been
benefited from this
workshop.
There Amul Yatra Programmes ensure that there every new
distributor and
other business partners visit Anand to get an exposure to our co-
operative
structure, there culture as well as there operational systems and
processes. The
initiative continued this year as well and so far, about 7400
Distributors and other business associates have visited Anand on
Amul Yatra.

NO. OF STORES
The firms run 180 stores and are present in Uttar
Pradesh,Punjab, Haryana, Rajasthan and Madhaypradesh. These
stores saw a 30 to 40 percent growth in FMCG sales and a three
figure growth in grocery sales during the April Jun quarter.
Amul is the largest food brand in India and world's Largest
Pouched Milk Brand with an annual turnover of US $1050 million
(2006-07). Currently Amul has 2.6 million producer members with
milk collection average of 10.16 million
litres per day.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 3.05 billion litres
Milk collection (Daily Average 2008-09):8.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3500 Mts per day

As Per The Consumer Response Hierarchy Model; The Calculations Are Like
Below:

Re-
5% of Trial
purchase

10% of
Trial Preference

20% of
Preference Liking

40% of
Liking Knowledge
60% of
Knowledge Awareness
80% of
Awareness Targeted
Studying The Demographic Conditions Of INDIA

• It is expected that 80% of this targeted population will get aware about the
products with the help of the sales promotion, advertising and other marketing
tactics.

• Out of the People being aware of the products & the company, 60% will have
somewhat exact knowledge of the product.

• It is expected that out of the people having the knowledge of the product, with the
product features and the requirement of milk in the country, 40% will develop a
liking for the products.

• 20% of the target audience who have developed a liking, will opt for the
company’s product as against the products they are using for daily consumption.

• 10% of the people who might prefer the product, will actually try it for the first
time.

• 5% of the people who have tried it for the first time, might be convinced to
purchase the product again

• Thus, adding up the people trying the product and the re-purchaser of the products.
Gujarat Cooperative Milk Marketing Federation or
GCMMF

National Dairy Development Board (NDDB) and the

National Co-operative Dairy Federation of India
(NCDFI)

Dairy Cooperative Structure and details for State of Gujarat

NDDB/NCDFI

FEDERATION FEDERATIONS
in Other States
GCMMF
GCMMF

INDIVIDUAL MILK PRODUCERS

VILLAGE SOCIETIES
UNIONS

AMULLevel
13,328 Village and 13 Other
Milk Districtcentres
Collection
2.79 million Milk Farmers