Sagar S MM 2

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PART 1

Find examples of two Indian companies whom you believe possess the equity of a loyal customer base. Identify the reasons for their market’s
unflinching loyalty.

Maruti Suzuki India Limited


Maruthi is a leading car manufacturer in India. Maruti Suzuki has remained India’s favourite carmaker for the common man for more than
three decades. Autocarndia also states that “The country's largest carmaker Maruti Suzuki has registered its highest-ever domestic sales in
the financial year ending 2017-18 (Apr-Mar). It announced record volumes of 17,79,574 units, up 13.4 percent year-on-year from 1,568,603 in
the previous fiscal”. They make cars just perfect for the Indian conditions and needs – compact, low maintenance, easy to handle and light
on the pocket. They have excellent service quality, service facility and service initiation.

Bharti Airtel
Telecom operator Bharti Airtel always continues to lead the market with their customers who get back to airtel even after testing other
operators. Its toughest competition has been Reliance Jio, which did give a blow with the sales records but can never match u p the service
standards of Airtel.
Airtel gives its customers consistent calling facility, undisrupted data facility, prices if not cheaper, at least around the same range and
excellent service facility. Jio has definitely lured customers with its free facilities, but as said what comes free does not stay long. Airtel
maintains its standards over the years and hence Customers their Brand Loyalty.

Provide your recommendations to two other brands that you opine suffer from low customer loyalty.

Micromax
Micromax is losing its market share because it's losing its brand value on a relative scale. It is virtually falling in the eyes of the Indian
market. Micromax came with a vision. A vision to empower every person in India with a handheld smart device, irrespective of the class
they belonged to. But with rise in competition by Sony, Xiomi, Samsung and other bigger but newer brands, they have failed to catch up.
These other companies provide better phones with better features and at affordable prices with easy service facilitie s.

Videocon
It is the debt end of business for Videocon. This company has made huge losses in the telecom, TV, and D2H industry. They hav e lost the
technological race to other better brands like Sony, Samsung etc. In the D2H service, players like Tata Sky have eaten their market away.
Their main fall back is quality. What customers want in return to their money is the best viewing experience. Videocon lacks that. It tried to
make through with the pricing strategy, but it did not suffice. Customer experience and customer satisfaction is what Videocon lacks.
PART 2
Choose a brand of your choice and discuss as to how this brand currently uses various elements of the integrated marketing mix while delivering value to
its target market. Study across all the marketing mix elements and analyse the extent to which they are used in this brand’s integrated marketing
programs. You should consider how all the marketing mix elements such as the brand name, price, retail channels and other marketing elements
communicate with the company’s target audience. Are all the marketing tools used by the brand integrated and sending a consistent image and message for
the brand? Provide your recommendations for betterment of the same.

AMUL - Anand Milk Union Limited is an Indian dairy cooperative, based at Anand in the state of Gujarat.
Formed in 1946 by Dr.VergheseKurien, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation
Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat.
Brand name – Amul i.e.Amoolya in Sanskrit means invaluable or priceless. With a presence in almost every product which can be made by
milk, Amul has won over hearts along with market share to become a highly valued brand with an Indian origin. Its tag line “Taste of India”
has been formed keeping in mind the taste and the diverse culture of the people of India. Their slogan “Utterly butterly delicious” says it all
about their product about their butter being the most delicious. The reason Amul is such a strong brand is because of the marketing mix of
Amul. Here is an in depth analysis of the Marketing mix of Amul.

PRODUCT

Amul was started by the white revolution of many farmers. It sells the most needy consumer product – milk. It has a very strong portfolio
which comprises of almost all products that can be as a by-product of milk. Amul butter, Amul cheese and Amul ice cream are cash cows for
Amul as they have the major market share in their product category. Amul ice cream is amongst the top 10 ice cream brands of India.Amul
milk is the largest selling product and the packaged milk is also a fast selling product.

The Amul family tree has the following brands – Amul Milk, Amul bread spreads, Amul Cheese, Amul Milk, Amulkool and its variants, Amul
pro, Amul ice cream, Amul Paneer, AmulDahi, Amul Ghee, Amul Milk powders, AmulNutramul, Amulmithai range, Amul mithai mate, Amul
chocolates, Amul butter milk.

When one thinks of milk, one thinks of Amul. It’s the Indian-ness of this brand that makes it so popular. This is the business strategy of the
brand. Amul provides pure and hygienic products. Its products are manufactured with the health of the people in mind. This is the major
reason that Amul has a sustainable competitive advantage over its competitors.

PRICE

Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But penetrative pricing strategy is used when the market has a
high level of competition and a player wants to establish itself in the market by giving low prices. However, in the case of Amul, when Amul
started, there were no national players and the dairy market was unorganized. During the introduction stage itself, Amul had a vision to
provide their products to end customers at the best affordable rates. And the same vision is in place even today.

The products are Amul cannot be called inexpensive or cheap. They are rightly priced for the Indian market well in competition to the other
brands.

The brand added a new feather in their cap by installing “Any Time Milk” machine which dispenses a 300 -ml pouch of fresh milk for Rs 10,
at Anand’sAmul Dairy. As a first step, Amul plans to install six such ATMs in Anand itself. According to Dr. K Rathnam, MD of Amul Dairy,
Amul wants to add a whole range of dairy products, which could be dispensed through these machines.

PLACE

Amul has spread its network all over India, from the remotest village to a metro city and also to the overseas market. The network “Amul
Model” is based on a structure called ‘Three-tier Co-operative’. Under this, the dairy co-operative society that is at the village level is
affiliated to the society at district level and this in turn to the state level federation. The collection of milk is the responsibility of village
society, the procurement and the stage of processing of the district union and the marketing of products like butter is the w ork of state
federation.
Presently Amul has one hundred and seventy six unions of dairy that includes 1,25,000 societies of co-operatives with a
membership of farmers that are near to thirteen million. The company has processing plants that number more than one hundred
and ninety. The network for distribution includes more than fifty sales offices, five thousand wholesalers, seven lakh retailers that
are spread in every nook and corner of the country. Amul is one of the leading brands of India that has successful networks in more
than forty countries across the globe such as West Indies, USA, Singapore, SAARC Countries, Australia and Mauritius.
PROMOTION

Amul Butter has always made advertisements that are innovative as well as new. The ads are not limited to a particular media but has been
broadcast on all types like the outdoor media including billboards and hoardings, the broadcasting media that is the televisi on, the print
media that includes magazines and newspapers, various portals and websites on the internet, even the social internet sites
like Facebook and twitter. Promotional activities are also organized at various events to promote the brand name and its products.

The Amul mascot has been a young girl wearing a red colored polka dot frock and singing the jingle “ utterly, butterly, delicious…..Amul”.
Since the year 1967, the mascot remains unchanged because it has become synonymous with the brand name. Its Tagline is “ The taste of
India”. Amul food festivals are organized at different retail outlets where the participants are encoura ged to participate in the contest by
making recipes with the help of Amul products. The Company has also sponsored many TV shows like Amul Star Voice of India and Amul
Music KaMahamukabla. Their ads always have the current topics in the interest of the soc iety. They have an emotional connect with the
public

The Marketing strategy of Amul covers various aspects of the business right from segmentation and targeting to the
overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in
the market.
Recommendation –
• Amul market presence in the basic products such as milk is concentrated in the northern regions of India. Their market in the south
is eaten up by the local brands like Nandini in Karnataka. Being a global brand, they have to concentrate in penetrating to the south.
One of the ways could be forming co-operative societies and repeating the Amul story.
• Focus on the health benefits. In India milk is considered to be Good for health. Concentrate and market the health benefits of the
milk and its products eg. Low calorie, Low cholesterol, High calcium etc.

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