Annexure -V – Cover Page for Academic Tasks

Course Code: MKTM673 Course Title: Product market Strategy

Course Instructor: Dr Ashwani Paneswar

Academic Task No.: 01 Academic Task Title: Assignment

Date of Allotment: 09/05/2022 Date of Submission: 23/05 /2022

Student’s Roll No: RQ2127A10

Student Registration Number: 12112614

Learning Outcomes:
Data Analysis and Interpretation must include demand supply dynamics, Market drivers
and risks, Regulatory changes and supply chain and bottlenecks across the supply chain.
Analyzing the data and concluding and recommending the best techniques for the
research done.

Declaration:

We declare that this Assignment is our group work. We have not copied it from any
other students work or from any other source except where due acknowledgement is
made explicitly in the text, nor has any part been written for ours by any other person.

Student signature: Sonali

Evaluator’s comments (For Instructor’s use only)

General observations Suggestions for Best part of assignment

Improvement

Evaluator’s Signature and Date:

Marks Obtained: …………… Max. Marks: ………
CONTENTS
Sr. No TITLE
1. INTRODUCTION
2. MARKET SHARE OF AMUL BUTTER
3. IDENTIFICATION OF TARGET SEGMENT
4. BRAND INSIGHT
5. CONSUMER INSIGHT
6. PRODUCT DESCRIPTION AND INNOVATION

7. OBSERVATION MARKET RESEARCH

8. SEGMENTATION, TARGETING, TARGETING,
POSITIONING
9. COMPETITIVE ADVANTAGE
10. BCG MATRIX
11. DISTRIBUTION STRATEGY
12. BRAND EQUITY
13. COMPETITIVE ANALYSIS
14. MARKET ANALYSIS
15. CUSTOMER ANALYSIS
16. SWOT ANALYSIS
17.
CUSTOMER VALUE PROPOSITION
18.
CONCLUSION
ABOUT AMUL
The term Amul is abbreviated as ANAND MILK UNION LIMITED, which is
an Indian originated cooperative societal body that produces dairy products
world widely. The headquarters is located at Anand, the administrative center
of Anand district in the state of Gujarat, India. Anand is primarily called as the
Milk Capital of India. Anand is known for the milk revolution caused by the
Amul dairy’s trinity: Tribhuvandas Patel, Verghese Kurien and H. M. Dalaya.

The type of Industry in which Amul operates is the food processing sector i.e.,
Fast Moving Consuming Goods (FMCG). Amul is initially known as Kaira
District Milk Union Limited, founded in the year 1946 by the efforts of
Tribhuvandas Patel and later it was renamed by a name proposed by Dr.
Maganbhai Patel as Anand Milk Union Limited-Amul. Amul foundation was
an important contributor to the White Revolution that took place in India by
playing a major role in India’s White Revolution. This made AmulL to become
the world’s largest producer of milk and its subsidiary products.

The parent organization of Amul is a cooperative body named Gujarat Co-

operative Milk Marketing Federation Limited (GCMMF) which manages all
the operations that takes place in Amul. This GCMMF is currently jointly
owned by 3.6 million milk producers of Gujarat and is primarily a highest body
to 13 District Milk Unions which spread across 13000 villages of Gujarat.
The success to Amul is mainly brought by Dr. Kurien, who is known as the
Father of White Revolution in India. Tribhuvandas Patel hired Dr. Kurien into
Amul in the year 1949. After becoming a part of Amul organization, Kurien
introduced the billion litre idea, the Operation Flood (1970) which made the
Indian dairy farming sector to become the largest self-sustaining industry by
providing largest employment in rural regions which accounted for one-third of
rural income. The idea proposed by Dr. Kurien made India to transform itself
from a milk deficiency country into the world’s largest milk producer where it
surpassed the milk producing capacity of USA in 1998. Dr. Kurien played a
major role in the success of Amul, India.
Actually Amul was initially formed as a union by local farmers of Kaira
district due to the unfair exploitation practices done to the farmers by the traders
and agents of small cities. At that time milk prices were randomly determined
which unfavoured the local farmers of Kaira. The farmers of Kaira then
consulted Sardar Valla Bhai Patel and he suggested them to form a cooperative
union called Kaira District Co- operative Milk Producer’s Union which is
presently called as Anand Milk Union Limited. Now presently Amul operates
revenue of about 5.4 billion US dollars as of 2020 with a total of 3.6 million
milk producers serving world widely.

ABOUT AMUL BUTTER

Amul butter is what makes it the undisputed market leader, accounting for around 85%
of the Rs 3,500 crore butter market in india, according to industry sources more than six
decades after it launched, AMUL BUTTER has managed to hold dominance in market.
PRODUCT FEATURES

▪ Unsalted Butter is made from fresh cream and nothing else.

▪ It is Amul Butter in its purest form, and doesn’t contain any salt at all.

▪ With lower moisture content than most other butters, it is an essential

cooking and baking ingredient making it especially helpful when making
pastries and puddings.

▪ 100% Natural.

▪ Surety of brand Amul.

MARKET SHARE OF AMUL BUTTER
Amul Butter Consumer Products' consolidated net profit rose 5.08% to Rs 527.60
crore on an 8.08% increase in net sales to Rs 3,302.58 crore in Q3 December
2021 over Q3 December 2020. The Amul Butter growth by momentum,
delivering double-digit sales growth. The firm continued to gain market share,
led by micro-marketing initiatives to fuel growth. Amul butter Products continue
to navigate high input cost through calibrated price increases over Q3 December
2020. Volume growth remained flat while Q3 FY22 EBITDA declined by 3% Y-
o-Y to Rs 450 crore.

IDENTIFICATION OF TARGET SEGMENT:

Amul butter has targeted the mass market of India by offerings and works on
providing the best quality butter at affordable prices.
Also Amul formulates its pricing policy on the low-cost price strategy which
has attracted a lot of customers in the past and it continues to do so.
INDUSTRY BASED TARGET AUDIENCE
The target audience study tells us that Amul butter has a strong presence in both
business-to-business (B2B) and Business-to-Customers (B2C).

BRAND INSIGHT:
Amul is seen as a neighborhood brand in different areas of India: it is seen as a
brand of 'my district' or 'my city' and that is the manner by which we do the
publicizing innovative also,
It assumed an essential part in India's, which saw the nation change from a milk-
lacking country into the world's biggest milk maker, outperforming the USA in
1998.

CONSUMER INSIGHT:
Indian customers global brands, particularly when it came to food items and you
will find nearby or local brands possessing the front racks.
In any case, with regards to Amul Butter Consumers have uninformed
religiosity in Amul, They realize this brand won't swindle them in any capacity
and this sort of confidence comes throughout some undefined time frame."

PRODUCT DESCRIPTION AND INNOVATION:

Product Description
Product Name Amul Butter
Description Amul Butter (Made of pure milk FAT)
Packing(weight) 100g,500g,50g,20g,10g Blister

Product Specifications
Composition Milk FAT, Min: 80%
Moisture MIx: 16%
Salt Max: 3%
Curd Max : 1%
Nutritional Information Nutritional Information
Amount per 100g
Energy, kcal 722
Energy from fat, kcal 720
Total Fat, g 80
Saturated fat, g 51 Total
Cholesterol, mg 180
Sodium,mg 836
Total Carbohydrate, g 0
Added Sugar, g 0
Protein, g 0.5
Vitamin A, mcg 650
 Not a significant source of dietary
fiber,sugars, vitamin C, Calcium and
Iron,

Shelf Life Best before 12 month from packaging

when stored refrigerated at 4 °C or
below

Storange condition At 4 ° c or below

INNOVATION

OBSERVATION MARKET RESEARCH:

Chunk that led to the Success of Amul is its Branding strategies. We are all aware
of Amul’s tagline- ‘The taste of India’. The tagline banished the notion that bread
and butter are a staple of only the British breakfast and pulled nationalism in. The
never-aging girl who wore a polka-dotted dress, with blue hair and an orange face
was the company’s icon. Amul marketed all of its products under a single name,
which led to advertising merely costing one percent of its revenue.
Amul's Low-Cost Pricing Strategy
The third angle is item evaluating. It is one of the most outstanding limited time
techniques embraced by Amul. It settled on a minimal expense evaluating
methodology for items that are consumed consistently. This evaluating
methodology of Amul made it reasonable for its ideal interest group. Expanding
the cost of merchandise corresponding to their crowd's expansion in pay assisted
them with holding their client base. A serious valuing methodology, like a one-
on-one deal, was embraced for items confronting weighty contest.

Segmentation, targeting, positioning in the Marketing strategy of

AMUL:
It is the interaction in promoting of collection a market (for example Clients) into
more modest subgroups. These business sectors are in many cases named
specialty markets or specialty markets. These portions are genuinely
homogeneous in their mentalities about specific factors.
On account of this intra-bunch comparability, they are probably going to answer
to some degree correspondingly to a given promoting system. That is, they are
probably going to have comparative inclination and thoughts regarding an
advertising blend contained a given item or administration, sold at a given price,
distributes with a specific goal in mind, and advanced with a specific goal in
mind.
Amul's vigorous procedures in regards to STP for the item Butter has assisted it
with being no.1 all through India.

SEGMENTATION OF AMUL
The motivation behind division for AMUL margarine is to distinguish and
target prime client gatherings (for example the 20% that record for 80% of your
deals) so they get the most extreme return from a restricted advertising financial
plan.

Homogeneity inside the section

Heterogeneity between the sections
Sections are quantifiable and recognizable
Sections are open and noteworthy
It is sufficiently huge to be beneficial

TARGETING FOR AMUL

After the most attractive segments are selected, a company
should
not d i r e c t l y s t a r t t a r g e t i n g a l l t h e s e s e g m e n t s . T h e a t t r a c t
i v e n e s s o f t h e segments is also depending on other important factors. In the
main activity o f d e f i n i n g a t a r g e t m a r k e t , f o u r s u b a c t i v i t i e s a r e
g i v e n w h i c h a r e t h e bases for deciding which segments will actually be
targeted on.

POSITIONING FOR AMUL

AMUL has carefully cultivated its family-based image.

Brand Positioning Statement: "The taste of India"- It has created a value for
everyone in the value chain, be it a customer or the supply chain.

Positioning Components:

Emotional Components: through the campaigns like ______ and "Taste of

india"

1. Functional Attributes: Unique functional attributes of Amul are :-

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

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

Brand Consistency:
Amul butter 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.

Target market and segment:

It has positioned variety of products for different market segments.

Competitive advantage in the Marketing strategy of Amul

First and foremost is the supply chain. Because of the large numbers of dairy
suppliers, Amul has a tremendous strength and reliability in its supply chain.
Hence it is able to produce such high volumes.
The second competitive advantage is the wide product portfolio due to which
it can run Amul shoppe’s and also have its products present in retail. The
product portfolio is such that products like Butter and Ice cream are cash
cows for the company.

BCG Matrix in the Marketing strategy of Amul

When we plot the BCG matrix, Amul has certain products which are stars
whereas others are cash cows. And in fact, Amul chocolates are question marks
because they have very low market share in a growing market. Amul ice cream
and Amul butter can clearly be said to be a cash cow because they have very high
market share and the market in itself is growing with the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, amul kool
etc have a lot of direct and indirect competition in their niche. However, when
compared with the same type of product, then Amul has a high market share.
Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies
in huge amounts to its C&F, who is required to have the right arrangements to
store Amul products in bulk. This C&F then transfers the products to distributors
who in turn give it to retailers. Furthermore, Amul has a direct sale team too
which sells to modern retail. Besides this, the company has exclusive Amul stores
which sell all products of Amul brand. Thus, in the marketing strategy of
Amul, distribution is another strength of the brand.

Brand equity in the Marketing strategy of Amul

Because of the excellent products, the top of the mind positioning, the fantastic
distribution and supply chain channels and finally the point of
purchase branding and advertising of the Amul girl, Amul finds itself in a very
strong position where its brand equity is concerned. Amul brand is worth $3.2
billion as per the 2013 brand equity report. Furthermore, most analysts say that
Amul would have touched the $4 billion mark, but the dropping value of the rupee
is what caused the difference.

Competitive analysis in the Marketing strategy of Amul

Amul has some good competitors who have entered the market in the
last decade and growing strong steadily. Most of these ice creams
entered regionally but then held on to the regional market share. Thus,
even though individually these brands might not be a worthy adversary,
combined and with their total net aggregate, all of them together are
giving a very tough competition to Amul.

Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun
Ice cream, Baskin Robbins, London dairy and others. Many of these ice cream
products have their own niche or geographic targets. Arun ice cream is strong in
the south whereas havmor and Vadilal are strong in the west.

Besides these organized players, there are many unorganised local players who
also give competition to Amul by having their own outlets and their own variants
of ice cream. However, the competition in Butter and Cheese and other dairy
products is far lesser.

Market analysis in the Marketing strategy of Amul

The FMCG market is highly competitive in nature and is known to have a
combination of organized players as well as unorganized players. Similarly, in
FMCG, direct competition is equally important as indirect competition. For
example – During winters, ice cream and cold milk products will not sell, whereas
butter and cheese will sell equally well.

But on the other hand, during summers the demand of ice cream shoots up so
much so that companies are not able to meet demands. Thus, when we analyse
the market of Amul, in some cases Amul is the clear market leader, whereas in
other products it is a competitor in the market.

Customer analysis in the Marketing strategy of Amul

The typical customers of Amul belong to the Sec B and Sec C segment wherein
they are either middle class or lower class. Amul in general uses mass
marketing and therefore it targets these 2 classes majorly. The high end customers
are more likely to prefer a Naturals, a Baskin robbins, or any other such brand
which meets their taste and status.

SWOT ANALYSIS:

Strengths of Amul Butter:

Strong Advertising: Amul as a brand is renowned for its creative advertising
with Amul Girl’s ads on print, electronic and social media. This creates a
strong brand image of Amul.

One of the strongest brand mascots: The Amul girl is one of the strongest brand
mascots across India and she is loved for her witty hoardings which people look
forward to seeing.

Strong market share: Amul has a leading market share in most products in its
portfolio, especially, in the Butter Category where it has a market share of over
85 percent.

Excellent distribution channel: Amul has a very strong distribution network,

with presence all over the country. It distributes through modern as well as
traditional retail channels.

Good Product Quality: Amul butter has been rated high on product quality and
has successfully been able to gain trust in the market. It stands by its slogan which
says “Amul – The Taste of India”.

Affordable Pricing: In order to sustain its high market share, Amul resorts to
keep a low pricing strategy. It has a market-oriented pricing strategy which is
affordable for the common Indian household.

Product portfolio backing up: Because of the strong product portfolio of Amul,
such as ice creams, milk and other such dairy products, Amul can dominate the
retailer in selling Amul butter.

Weakness in the SWOT Analysis of Amul Butter:

People prefer local butter (Ghee) – Some households in India still prefer using
local or homemade butter. This reduces the market size for Amul.
Rare specific advertising: Amul butter has its share of disadvantages being a
part of a branded house Amul. While Amul as a brand is really popular, its
products generally remain in the background and rely upon the popularity of
Amul.

Short Shelf-life: Butter has a short shelf life and needs refrigeration to be able to
sustain its form. Amul has a large supply chain network and it requires special
care considering the shelf life of all the dairy products.

Opportunity in the SWOT Analysis of Amul Butter:

Developing Rural Market: Amul should come out with specific butter products
for the rural market in small packages in order to tap the high potential rural
market as well.

Tie-ups with Hotels and restaurants: Amul should look forward in tying up
with restaurant and hotel chains. It already has huge tie ups but this is an ever
growing segment. This will help in increasing revenues and profitability.

Introduce new Variants: Amul should look to introduce new variants to capture
a wider base of customers. It has already brought in variants like garlic flavoured
butter and low-fat butter.

Threat in the SWOT Analysis of Amul Butter:

Local Butter Manufacturers: Local butter manufacturers can shake the market
share of Amul and hence can also affect the profitability.

Increasing Health Awareness: The increasing health awareness reduces

consumption of dairy products especially butter. This affects the bottom line of
the company.

Growing Prices of Constituents: Due to excess demand in dairy products and

increasing cost of production, the cost of constituents of butter like milk is
constantly increasing which creates pressure on Amul to increase prices of Amul
butter.
Low-Fat Variants are Less Popular: Low variants of Amul butter like Amul
Lite are less popular and thus create an opportunity for competitors like
Nutralite to create a market for itself.

Customer Value Proposition

“Please consider your customer smarter than you. Don’t think that you can
tinker with the ingredients or weight. If you employ short-term marketing
strategies, your customer will lose faith in you. We are growing thanks to
Amul’s value system.”

Conclusion
AMUL is famous because of its products and its sheer drive and arduous labour
that insured the farmers' self-sufficiency. Today, the brand has helped farmers
to become entrepreneurs and earn a livelihood on their own. The fact that the
entire procedure is public has guaranteed that no one gets exploited.

The Amul brand has demonstrated that it is more than simply a commodity; it is
a movement that represents farmers' economic independence. Farmers now have
the confidence to dream, hope, and live because of the brand. Amul in its
entirety has demonstrated that it is Amulya, i.e., 'Priceless,' for our nation and
that it must be preserved.