THE UNIVERSITY OF BURDWAN

DIRECTORATE OF DISTANCE EDUCATION

Term Paper
on

MARKETING MANAGEMENT

Paper : Marketing Management (MBD-301)

SOFIUL ISLAM
Enrolment No.: DDE/MBA/Jan2010/36 Session: 2010-2012

:: SUPERVISOR ::

DR. PRADIP KR. MALLIK

THE UNIVERSITY OF BURDWAN

CONTENTS

1. Declaration 2. Acknowledgement 3. History of Amul 4. Product Line 5. Market Segmentation 6. Market Segmentation of Amul CHOCO CRUNCH 7. The Process-Data Model of Market Segmentation 8. Marketing Targeting 9. Marketing Mix 10. Pricing Strategy 11. Promotional Strategy 12. Bibliography

DECLARATION

SAFIUL ISLAM (Signature)

ACKNOWLEDGEMENT

HISTORY OF AMUL
Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Union Limited). The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India[1]. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade. Amul is the largest food brand in India with
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an annual turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

PRODUCT LINE

Market Segmentation
Market segmentation is the process in marketing of grouping a market (i.e. customers) into smaller subgroups. These markets are often termed niche markets or specialty markets. These segments are fairly homogeneous in their attitudes about certain variables. Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. The purpose of segmentation is to identify and target prime customer groups (eg the 20% that account for 80% of your sales) so that you get the maximum return from a limited marketing budget (the most bang for your buck).

Market Segmentation of Amul CHOCO CRUNCH

Homogeneity within the segment Heterogeneity between segments Segments are measurable and identifiable Segments are accessible and actionable Segment is large enough to be profitable.....

These criteria can be summarized by the word SADAM:

S -Substantial: the segment has to be large and profitable enough A -Accessible: it must be possible to reach it efficiently D- Differential: it must respond differently to a different marketing mix A -Actionable: you must have a product for this segment M -Measurable: size and purchasing power can be measured .

The Process-Data Model of Marketing Segmentation

This model consists of the three main activities: segmenting, targeting and positioning. It shows the chronological dependency of the different activities. On the right side of the model the concepts resulting from the activities are showed. The arrows show that one concept results from one or more previous concepts; the concept can not be made when the previous activities have not taken place. Below the three main activities are shortly described as well as their role as a basis for the next step or their dependency on the previous step.

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MARKETING TARGETING
After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted.

AGE GROUP TARGETED The four sub activities performed by Amul while targeting are: Defining

the abilities of the product and resources needed to

enter a market
Analyzing

competitors on their resources and skills the companys abilities compared to the

Considering

competitors
Deciding

on the actual target markets.

The first three sub activities are described at the topic competitor analysis. The last sub activity of deciding on the actual target market is an analysis of the information made available when comparing the companies abilities to the competitors. This analysis leads to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share.

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MARKETING MIX
The major marketing management decisions can be classified in one of the following four categories:

PRODUCT PRICE PLACE PROMOTION These variables are known as the marketing mix or the 4

P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram: The Marketing Mix

The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner. Now, lets see the marketing mix for new launch of AMULS CHOCO CRUNH i.e., their products, price, place and promotion.

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PRICING STRATEGY
Amuls new launch Choco Crunch Pricing is based on three types:1) 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. 2) Products have parishable distinctiveness from competitor's product, assuming the product features are medium

distinctiveness. 3) Products have little distinctiveness from competitor's product. assuming that: a) The product has high price elasticity. b) The product has some cross elasticity. c) No expectation that demand of the product will rise.

Price is the factor that beats out all other choclates in the competition. Such as Cadbury. If you have been you must have seen that Amul and Cadbury frenchise are right next to each other. But if given the choice people would prefer Amul products and not Cadbury as the prices of Amul product is quite cheap as compared to their competitors like Cadbury and this has worked as an advantage for Amul since most of the customers prefer amul product over cadburys product, due to this price factor. The prices for an average milk product ranges between Rs. 20 and Rs. 35.

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PROMOTIONAL STRATEGY
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional strategy can consist of: Advertising: Is any non personal paid form of communication using any form of mass media? Public relations: Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.

Promotion Budget Cost sheet ** Schedule A

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Above A Pull Strategy (Left) Push Strategy (Right) Communication by the manufacturer is not only directed towards consumers to create demand.

A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name.

A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.

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PRODUCT STRATEGY

A starting point is to define and understand the company's marketplace, customer needs and competition. Based on this assessment, the company's primary competitive dimensions can be selected and a strategy defined to develop and enhance these competitive dimensions. Once this is done, product and process design based on IPD can be oriented to implement this strategy.

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POSITIONING STRATEGY
When the list of target markets is made, a company might want to start on deciding on a good marketing of a product. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. The Process Of Positioning The Product Of A Company: 1. Identifies the differential advantages in each segment 2. Decides on a different positioning concept for each of these segments. This process is described at the topic positioning, here different concepts of positioning are given. The process-data model shows the concepts resulting from the different activities before and within positioning. The model shows how the predefined concepts are the basis for the positioning statement. The analyses done of the market, competitors and abilities of the company are necessary to create a good positioning statement. When the positioning statement is created, one can start on creating the marketing mix. B2C and B2B The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be
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described using the variables which are not depending on the type of buyer. There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is MIPS: a method for managing industrial positioning strategies by Muhlbacher, Dreher an Gabriel-Ritter (1994).

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DISTRIBUTION STRATEGY
In order to ensure a continuous & efficient distribution, an approximate figure has to be arrived at for getting the initial orders & to ensure adequate supply so that any delays or resultant losses are avoided. For this purpose, the company adopted the consumer response hierarchy model so that, it is ensured that all the company enters the market with a bang avoiding any problems of late or inadequate supplies. This is highly essential to support the huge promotional budget, since if the supplies arent at the right time, all other effort can be in vain. As Per The Consumer Response Hierarchy Model; The Calculations Are Like Below:

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Bibliography
(1) (2) (3) (4) (5) Marketing Management Philip Kotlet Marketing Management - Saxena http://www.google.com http://www.buruniv.ac.in http://amul.com

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