01-09-2021

Amul Camel Milk Launch

Dr. Dinesh Jain

Case summary
• Amul, the market leader in the Indian milk industry, has
pioneered several progressive initiatives and stayed current
with consumer trends through continuous product
development. With camel milk being hailed as “white gold”
and touted as the latest superfood in Australia and the West,
Amul is considering whether to launch the sale of camel milk
in India. No company in India has yet tapped into the camel
milk market; therefore, Amul would have a head start in this
unexplored segment.
• The company needs to assess its capabilities and
competitors in India’s booming dairy products market, and
consider how a growing economy and increasing health
awareness are influencing consumer preferences.
• Given the market, should Amul enter the promising camel
milk segment to take advantage of the evolving preferences
of Indian consumers and current industry and global trends?

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Discussion Questions

• Analyze the Amul brand and the reasons for its

branding success over the years.
• Is it opportune for Amul to launch the sale of camel
milk in India?
• Evaluate the possible risks/ obstacles to the success
of camel milk sales in India.

Analyze the Amul brand and the

reasons for its branding success over
the years

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Key reasons for Amul’s success:

• Good quality
• Wide range of products
• Wide distribution network
• Operational efficiency
• Reasonably and competitively priced products in
comparison to regional and international
companies
• Good and effective advertising campaigns
• Profit shared with participating farmers for their
socioeconomic improvement and common good

EXHIBIT TN-1: SWOT ANALYSIS FOR AMUL

STRENGTHS WEAKNESSES

• Established brand with high brand • Dependent on the villagers for milk
equity supply and thus, faces consistency
• Biggest distribution network for dairy risk.
products, which constitutes over 3 • Limited shelf life of the product
million milk producers all over the • High operations costs
country • High price compared to many
• Large product portfolio and a lion’s regional players
share of the dairy products market
• Pedigree of successful marketing
campaigns continuing for more than
half a decade
• Market leader in the butter segment

OPPORTUNITIES THREATS

• Growing and untapped rural market • Growing competition from unorganized

• Expansion of product market following and regional players
increasing disposable income • Aggressive presence of international
• Large chocolate segment that Amul players
can cater to given its brand equity • Increasing inflation impacting the
• Increased acceptance of premium prices of milk and milk products
value-added milk products by health- • Rising production costs
conscious young population
• Export opportunities in the
neighbouring countries
• Increased awareness about chronic
diseases such as osteoporosis,
contributing to the acceptance of milk
and related products

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Is it opportune for Amul to

launch the sale of camel
milk in India?

Facts
• The Indian dairy industry has predicted a
substantial growth in the industry over the next
several years. Demand is expected to reach 200
million tonnes of milk by 2022.1
• With strong domestic demand, the per capita
availability of milk is anticipated to reach 336 grams
per day in 2017.2
• The share of liquid milk in the milk and related
products category is 73 per cent.3
• Camel milk has been identified as a viable
alternative to cow’s milk.

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Launch Camel Milk

• Camel milk is considered a superfood in Western, developed countries.4
• The United Nations has acknowledged the nutritional value of camel milk and
predicted higher consumption once consumers can buy it easily.5
• The Indian economy is growing, thanks to an ever-increasing population.
• Disposable income and aspirations are on the rise.
• Rapid Westernization and health awareness are leading Indian consumers to
try new things.
• Amul is the market leader in the Indian milk market.
• Amul has the advantages of a wide distribution network and strong brand
value.
• Amul will benefit from the first-mover advantage.
• The health-conscious consumer segment is growing.
• Camel milk has benefits for various health and genetic issues such as diabetes
and lactose intolerance. The number of diabetic patients in India is increasing.
• Absence of any major player in this category.

Do Not Launch Camel Milk

• The market for camel milk might be limited.

• Prices will have to be high because of the high cost of procuring
and processing camel milk; this can be a disincentive to purchase.
• There is little awareness of camel milk, let alone its benefits.
• The launch of a new milk product could lead to the
cannibalization of existing milk products.
• Identifying and educating customers about the benefits of camel
milk will require a huge expenditure on promotional and
advertising activities.
• The production capacity is likely to be limited.
• Camel milk contains less vitamin A, B2, folic acid, and pantothenic
acid than cow’s milk; this could be considered by some as a
negative.

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Evaluate the possible risks/obstacles to the success

of camel milk sales in India.
• Cost: The product is likely to be more expensive than regular cow’s or buffalo’s milk.
Higher cost can be a problem for price-sensitive Indian customers.
• Short shelf life: Camel milk has a very short shelf life of four to five hours — half that of
cow’s milk.
• Taste: Peculiar taste as compared to cow’s and buffalo’s milk could hinder the
acceptance of camel milk among the target customers.
• Consumer perception: Camel milk is a very unique product, which has never been
produced on a large scale. Consumer knowledge about camel milk is almost non-
existent, and, as a result, education will be the main priority for any company that
wants to invest.
• Complexities associated with the product: Some of the camel milk properties can make
it difficult for the sale of camel milk to succeed; for example, difficult digestion and
difficult production of alternative products such as butter and curd.
• Storage and processing: Milk needs to be processed very quickly because the high
temperatures in the desert can cause the milk to spoil. An efficient storage and
processing system would be required.
• Low camel population: The consistent procurement of camel milk becomes difficult due
to the constantly decreasing camel population.12 This can also raise problems with the
success and scalability of the product.
• Government regulations: This is a new product in the diary market; the regulations and
government oversights have not been established. These regulations can impact the
growth of this segment.