Market segmentation,Targeting and positioning

It 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, distributes in a certain way,
and promoted in a certain way.

Amul's robust strategies regarding STP for the product Milk has helped it to be no.1 throughout
India

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Segmentation

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Amul Milk has identified the various segments that it needs to cater to where there exist people
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who prefer to consume low fat milk, milk with fat and milk with the highest content of fat which is
served by Amul Taaza, Amul Gold and Amul Diamond respectively. Amul is a segmented market
as kids, women, youth, calorie conscious and health conscious segment is present.It can be
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defined as a customer based market segmentation where they have launched a slew of product
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for each market segment. The segmentation of Amul is the mass population in general.
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Customer Based Segmentation of Amul

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 Kids:

 Amul cool
 Chocolate mix
 Nutramel energy drink
 Milk Shake

Women

 Amul Calci : Builds bones, Builds life

Calorie conscious

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 Amul Lite
 Sagar Skimmed milk powder

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Youth
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 Utterly delicious pizza

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 Amul cheese spread

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Health Conscious
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 Nutramel
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Industry based segmentation

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 Targeting

As can be seen from segmentation strategy of Amul, it has a very deep product portfolio, it does not
differentiate in its customers but uses a mass marketing principle. And till date, this principle has worked
very well for the marketing strategy of Amul. Thus the target audience are the regular middle class
people which forms the mass of india . This is because higher end customers do have a lot of high end
products as an alternative in ice cream. However, for other products like Butter and cheese, both high
end and low end customers are the target.

AMUL uses undifferentiated marketing strategy for targeting its customers as far as
its milk and milk product line is concerned. While the company implements
differentiated marketing strategy for targeting its customers for the other product lines
that are ice creams and chocolates, wet products and dry products. Differentiated
marketing means market coverage strategy in which a firm decides to target several
market segments and designs separate offers for each. AMUL targets its customers

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according to the segments like geographic and demographic.

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POSITIONING FOR AMUL rs e
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AMUL has carefully cultivated its family based image.
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Brand Positioning Statement : "The taste of India"- It has created a value for everyone in the value chain,
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be it a customer or the supply chain.

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Positioning Components of Amul :

Emotional Components : through the campaigns like “Amul Doodh Peeta Hai India”and "Taste of india"
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Functinal Attributes : Unique functional attributes of Amul are :-

1. Value for money : The best Quality Butter (dairy product) at the reasonable price
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2. Product Availability : It has huge supply chain and distribution networks across India and has
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strong link back to the sourcing farmers.

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Descriptive factor :
The Milk is now a family product and relates to its homely image.

Brand Consistency :
Amul Milk comes under the biggest brand that has been a part of the Topical campaign for 4 decades
now,one of the longest running advertisements in the world.

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