BRIEF HISTORY OF AMUL

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organization, Gujarat Co-
operative Milk Marketing Federation Lt. (GCMMF), which today is jointly owned by some 2.6
million milk producers in Gujarat, India.
AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing world.
"Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly
successful one known as AMUL, will naturally wonder what combination of influences and
incentives is needed to multiply such a model a thousand times over in developing regions
everywhere.
‖ 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 the
largest producer of milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres per 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.
Milk is a commodity that has to be collected twice a day from each cow/buffalo. In winter,
the producer was either left with surplus unsold milk or had to sell it at very low prices.
Moreover, the government at that time had given monopoly rights to Polson Dairy (around
that time Polson was the most well known butter brand in the country) to collect milk from
Anand and supply to Bombay city in turn(about 400 kilometers away). India ranked nowhere
amongst milk producing countries in the world in 1946. The producers of Kaira district took
advice of the nationalist leaders, Sardar Vallabhbhai Patel (who later became the first Home
Minister of free India) and Morarji Desai (who later become the Prime Minister of India).
They advised the farmers to form a Cooperative and supply directly to the Bombay Milk
Scheme instead of selling it to Polson (who did the same but gave low prices to the
producers). Thus the Kaira District Cooperative was established to collect and process milk
in the district of Kaira.
Amul was born:
The late Dr Verghese Kurien, rightly called the Milkman of India, was Amul’s true architect.
His journey at Amul began in 1949 when he arrived in Anand as a government employee to
manage a dairy. He went from helping farmers repair machinery to revolutionising India’s
dairy industry with the White Revolution (or Operation Flood), the largest dairy
development programme in the world. The new dairy with the milk processing plant was
ready for operation in October 1955, the year that also saw a breakthrough in dairy
technology —processing of buffalo milk to make products for the first time in the world. The
word ‘Amul’, derived from ‘Amulya’, which means ‘precious’ or ‘priceless’ in Sanskrit, was
used to market the range of milk products developed by the Kaira Union. It was also an
acronym for Anand Milk Union Ltd. Dr Kurien wanted to offer small-scale dairy farmers
quality-control units and centralised marketing, which were missing at that time in the dairy
economy. Thus, the Gujarat Cooperative Milk Marketing Federation (GCMMF) was created
in 1973 to market milk and all milk products produced by six district cooperative unions in
Gujarat. GCMMF became the largest exporter of dairy products in India and Amul was the
umbrella brand for all of its products. Amul brand earned recognition all over the world
when GCMMF introduced it on the Global Dairy Trade (GDT) platform. Only six other top
dairy players across the world sold their products globally. Exhibit 2 displays the Products of
Amul.

Amul’s vision:
Amul’s vision was to provide more and more satisfaction to the farmers, their customers,
employees and distributer.

Amul’s mission: Amul’s mission was, “We the motivated and dedicated
workforce at Amul are committed to produce wholesome and safe foods of excellent quality
to remain market leader through development of quality management system, state of art
technology, innovation and eco-friendly operations.
 COMPANY PROFILE OF AMUL
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya,"
was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are
found in several Indian languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a
symbol of many things. Of high-quality products sold at reasonable prices. 50 years after it
was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over
25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-
sized girl climbed on to the hoardings and put a magical spell on the masse

AMUL stands for

A = Anand
M = Milk
U = Union
L = Limited
Amul (Anand milk union ltd.) is abased on four hands, which are coordinated with each
other. The actual meaning of this symbol is co-ordination of four hands of different people
by whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.Second
hand is of processors, who process the row material (milk)into finished goods Third hand is
of marketer, without whom the product would have not reached the customers Fourth
hand is of customers, without whom the products would have not carried on.
MAIN BUSINESS AMUL is mainly into the business of marketing, transporting and
distributing the milk and milk products manufactured by its owners. Besides creating urban
employment in dairy plants, marketing, transporting and distribution, it has helped to
provide farmers with a sustainable rural employment program. AMUL has always tried to be
a step ahead of the market. It has always been a model to which other cooperatives have
looked up as an example and inspiration as well as one from which many have benefited.
AMUL was one of the first major organizations 13 GUJARAT CO-OPERATIVE MILK
MARKETING FEDERATION LTD in India to have a website. This site has been used both to
develop an intranet of AMUL distributors as well as a cyber-store for consumers , one of the
first examples of e-commerce activity in India.

AMUL PATTERN
3 tier structure of Amul
1.Village Dairy Cooperative Society (VDCS)The milk producers of a village, having surplus
milk after own consumption, come together and form a Village DairyCooperative Society
(VDCS). The main functions of the VDCS are as follows:
• Collection of surplus milk from the milk producers of the village & payment based on
quality &quantity
• Providing support services to the members like Veterinary First Aid, Artificial
Inseminationservices, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales,
conducting training onAnimal Husbandry & Dairying, etc.
• Selling liquid milk for local consumers of the village
• Supplying milk to the District Milk Union
Thus, the VDCS in an independent entity managed locally by the milk producers and assisted
by the District MilkUnion
2.District Cooperative Milk Producers’ Union (Milk Union)
The Village Societies of a District having surplus milk after local sales come together and
form a District Milk Union. The main functions of the Milk Union are as follows:
• Procurement of milk from the Village Dairy Societies of the District
• Arranging transportation of raw milk from the VDCS to the Milk Union.
• Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
• Selling liquid milk & milk products within the District.
• Process milk into various milk & milk products as per the requirement of State Marketing
Federation.
• Decide on the prices of milk to be paid to milk producers as well on the prices of support
services provided to members.
3. State Cooperative Milk Federation (Federation) The Milk Unions of a State are federated
into a State Cooperative Milk Federation. The Federation is the apex tier under the three-
tier structure. The main functions of the Federation are as follows:
• Marketing of milk & milk products processed / manufactured by Milk Unions.
• Arranging transportation of milk & milk products from the Milk Unions to the market.
• Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
• Arranging for common purchase of raw materials used in manufacture / packaging of milk
products.
• Decide on the prices of milk & milk products to be paid to Milk Unions.
 Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,
milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul,

Amul Ganthia and Amul lite.
Third plant is at Kanjari, which produces cattelfeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name
Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is
matter of proud for Gujarat and whole India.
 AMUL’S SEGMENTATION, TARGETING,
POSITIONING STRATEGY
The segmentation of Amul was the mass population and in general, one will find people of
all different age groups and demography enjoying Amul products. Milk, butter, cheese and
ice cream gained popularity. As it had a very deep product portfolio (Exhibit 2), it did not
differentiate in its customers but used a mass marketing principle. And till date, this
principle had worked very well for the marketing strategy of Amul. The target audience
were the regular middle-class people. In terms of positioning, Amul had top of the mind
positioning because it was the first brand which comes in mind when talking of Ice cream,
milk, cheese, butter or any other milk based products.

More than a mere slogan:

Amul’s famous slogan, which was now a part of its logo, was created in 1994 by Shri Kanon
Krishna of a Mumbai-based advertising agency called Advertising and Sales Promotion (ASP).
According to Amul, the Taste of India slogan was more than just corporate positioning or
advertising jargon. This slogan gave meaning to the brand’s never-ending commitment to
taking quality food and products to the rural man, which he otherwise couldn’t have
afforded.

The Butter Girl:

Amul did not always have the round-eyed moppet as its mascot. The Butter Girl was born in
1966 when Sylvester daCunha, the then MD of the advertising agency handling Amul
butter’s account, created her for Amul’s campaign. It was a pleasant change from the dull,
corporate ads that the previous agency had come up with. Being a seasoned marketer
himself, Dr Kurien gave daCunha complete creative freedom to create and release the ads
without taking the company’s permission. Till today the Utterly Butterly Girl still won hearts
wherever she is, whether on a billboard or on the packet of butter. Various campaigns like
Sign up for Newsletters, check out our popular newsletters and subscribe Amul were started
by Amul. The name was now a household term that was here to stay, and the chubby-
cheeked Amul girl continued to cast a spell on the public.

PRODUCTS
A. Bread Spread
AMUL BUTTER: Utterly Butterly Decision
AMUL LITE: Low fat, low Cholesterol Bread Spread
Delicious Table Margine: The Delicious way to eat healthy

B. Powder Milk
Amul spray infant milk food: Still, mother milk is best for baby.
Amul instant full cream milk powder: A dairy in your home
Sagar skimmed milk powder: Which is especially useful for diet preparations or for use by
people on low calorie and high protein diet.
Sagar tea coffee whitener
Amulya dairy whitener: The Richest, Purest Dairy Whitener

C. fresh milk
Amul fresh milk: This is the most hygienic milk available in the market.Pasteurized in state-
of-the-art processing plants and pouch-packed for convenience
Amul Gold Milk:
Amul Tazza Double Milk:
Amul Lite slim and trim milk:
Amul fresh cream:
Amul cool chocolate milk
Amul cool flavoured botteled milk:
Amul cool flavoured Tetra pack:
Amul Shakti toned milk:
Amul masti spiced buttermilk: Amul introduces the Best Thirst Quenching
Drink

D. Cheese
Amul pasteurized processed cheese: 100% Vegetarian Cheese made from
microbial rennet
Amul cheese spreads: Tasty Cheese Spreads in 3 great flavours
Amul Emmental Cheese: The Great Swiss Cheese from Amul has a sweetdry flavour and
hazelnut aroma.
Amul Pizza Mozzarella Cheese: Pizza cheese...makes great tasting pizzas
Guuda Cheese:

E. For cooking
Amul/Sagar Pure Ghee: Made from fresh cream. Has typical rich aroma and granular
texture. An ethnic product made by diaries with decades of experience.

Cooking Butter:
Amul Malai Paneer: Ready to cook paneer to make your favourite recipes
Utterly Decisious Pizza:
Mithai Mate: Sweetened Condensed Milk - Free flowing and smooth texture.
White to creamy color with a pleasant taste.

Masti Dahi:

F. Desserts
Amul Ice Creams
Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul Shrikhand: A delicious treat, anytime
Amul Mithaee Gulab Jamuns: Pure Khoya Gulab Jamuns...best served
piping hot.
Gulab Jamuns Mix:
Amul Chocolates: The perfect gift for someone you love
Amul Lassee:
Amul Basundi:

G. Health Drink:
Nutramul: Malted Milk Food made from malt extract has the highest protein content among
all the brown beverage powders sold in India.
Amul Shakti Health Food Drink : Available in Kesar-Almond and Chocolate flavours.

RAW MATERIAL & PRODUCTION PROCESS

Introduction:
This section receives milk from tankers only and is located in the new dairy premises.Here
milk is tested and processed further automatically as per requirements of the other
departments. The milk is also received from other states but only in tankers.

Process flow chart:

Raw chilled milk reception

Sample
Grading and analysis Not O.K.
 O.K. High acid
COB negative
Empty tankers Raw milk released

CIP bay for cleaning Online filter

Chiller
Raw milk buffer tank
Milk clarifier
Raw milk silo
Balance tank of the pasteurizer
st regeneration section of the pasteurizer
Separator Surplus cream
Skim milk Balance tank
Online standardization Cream pasteurization
Pasteurize
Pasteurized standardized
Pasteurized milk silo
a. F-60
b. TFD
c. AMUL II
d. ROAD TANKER
e. RAIL TANKER
Packaging machine
Pouches
Manual placing in crates-each 10 lits
Storage in the cold store at
Temperature less than 5 degress cent.
Dispatch in the trucks.
Parts of this section :
 a. Reception
b. Milk standardization and processing
c. Cream processing
d. Dispatch
For successful operation of these activities, a control room has been provided.All the
operations in the Dairy are Programmable Logic Controller controlled. A set of logical
programmes through a programmer is prepared on the PC and stored in the memory of the
CPU of the PLC. This is possible due to the microprocessor technology. Whenever the
operator performs the operation these programmes are recalled and executes accordingly
the commands and signals for activating or deactivating the solenoid valves and start and
stop of the pumps are affected.
There is one PLC in the control room. All the parts of the PLC are run on 24V DC supply
which is converted from 220 v AC supply by the transformer in each unit of PLC. Incase of
power breakdown the PLC continues to get the power supply from the UPS system.
The control room has also information system for updation of production data of milk,
cream, raw milk intake, centerwise milk reception and dispatch record,inventories, CIP
programming and its timing, trend charts, consumption of steam,electricity, water and
compressed air, etc.
Raw milk is received only in tankers at the 3 bays of reception dock of Amul3 process
section. Each reception line has:
1] Centrifugal pumps of 30,000 LPH
2] Deaerator to remove air from the milk
3] Autosampler to take the uniform sample
4] Pasilac Continous Mass Meter to measure the milk unloaded in

Kilograms. It has 5 modules such as

* Vortex generator for uniform flow.
* Density transmitter that has Americium (Y-RAYS).
* Flow transmitter
* Non-return valve
* Display unit
* Duplex filters one for each line
* PHE for each filter
* Raw milk silos
All the incoming milk is tested by the lab in the control room for % fat, % snf, % acidity as
lactic acid, temperature, MBRT and organoleptic evaluation. If the temperature of the milk
is less than 10 deg. Centi. And its acidity is less than 0.136% L.A., and the fat and SNF
percent matches with the delivery challan sent by the center then only the milk is unloaded.
Recently, Amul has been receiving milk from the outside states in order to fully utilize its
capacity of the powder plants. The milk comes from Rajasthan (Udaipur, Bhilwada,
Bhanswada, Raniwara) and Madhya Pradesh (Ujjain). Milk is received from the following
centres in tankers:- 1] Khatraj
2] Balasinor
3] Khambhat
4] Kapadvanj
5] Anand

MARKETING STRATEGIES

DIVISION OF MARKETING DEPT

HEAD OFFICE
↓
ZONAL OFFICE
↓
DEPOT OFFICE
 ↓
CARRYING & FORWARDING AGENTS (C & F)
↓
WHOLESALE DEALERS
↓
RETAILERS
↓
CONSUMERS

MARKET RESEARCH
Market research is a method of getting facts to be used by the executives in formulating
policies and plans. It enables a manufacturer or producer to know what the customers want,
at what time and what quantity. It is an organized attempt to reduce market risk. He
principle task of marketing research is to widen the basis of facts upon which business plans
can be laid. Marketing research shows changes from time to time , if any. AMUL conducts
basically two types of market research. One is for products and another for the advertising
conducted by the company. These research results serve as an input in future decision
making. The company basically collects feedback from the customers, about the
effectiveness of its advertising campaign and liking of the product especially in case of new
products launched. It tries to find out by conducting a survey in a target market whether or
not the product is liked by the consumers and ask for their suggestions for improvement.
However AMUL is not much into conducting research before the launch of the product.
Most of its research is done only once when the product is already launched in the market.
It doesn’t have any separate department for this purpose but its sales agents themselves do
the work of research for the company. Yet the results are almost comparable to those
conducted by professionals.

NEW PRODUCT DEVELOPMENT

New product development means development of original product or product improvement

or modification or new brands through Research & Development efforts .New product
development has become more difficult with the passage of time, due to shortage of new
ideas, keen competition, government and environmental constraints .It is an expensive
affair which involves lot of crucial decision making.
A number of decisions are taken by AMUL with regards to launch plans and strategies for
the new product , which are as under:
• Deciding the target customers
• Designing the promotional campaign
• Deciding the price
• Market analysis
• Deciding the sales force to be employed
• Deciding the marketing mix
• Deciding whether to launch the product across the country or in the
selected area
• Appointing distributors
• Conducting market research

PRODUCT LIFE CYCLE STAGES

A product passes through distinct stages during its life in market, each posing different
challenges, opportunities and problems .Profits rise and fall at different stages of the
product life cycle. There are four different stages of product life cycle, namely
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life cycle. Products like
milk, butter, chocolate and cheese are in the maturity stage, while ice-creams , chocolates
and shrikhand are still in the growth stage. On the other hand, products like milk powders,
infant food, frozen food items and mix are in introduction stage. The company adopts
aggressive selling techniques for those products which are in the introductory stage, while
very less promotional programmes are carried out for those products which are in the
growth or maturity stage.

PRODUCT RANGE
A vast varieties of products are offered by AMUL which are as follows:

BREADSPREADS
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter

CHEESE RANGE
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza

MITHAEE RANGE (ETHNIC SWEETS)

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix

UHT MILK RANGE

Amul Taaza 3% fat Milk
Amul Gold 4.5% fat Milk
Amul Slim-n-Trim 0% fat milk
Amul Chocolate Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Amul Taaza Double Toned Milk

PURE GHEE
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee

INFANT MILK RANGE

Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food

MILK POWDERS
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener

SWEETENED CONDENSED MILK

Amul Mithaimate Sweetened Condensed Milk

FRESH MILK
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 3% fat
Amul Smart Double Toned Milk 1.5% fat

CURD PRODUCTS
Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Lassi

AMUL ICE-CREAMS
• Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti
Frutti)
• Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar
Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
• Utsav Range (Anjir, Roasted Almond)
• Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry,
Black Currant)
• Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
• Millennium Icecream (Cheese with Almonds, Dates with Honey)
• Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,
Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
• Cool Candies (Orange, Mango)
• Cassatta
• Tricone Cones (Butterscotch, Chocolate)
• Megabite Almond Cone
• Frostik - 3 layer chocolate Bar
• Fundoo Range - exclusively for kids
• SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

CHOCOLATE & CONFECTIONERY

• Amul Milk Chocolate
• Amul Fruit & Nut Chocolate
• Amul Eclairs

BROWN BEVERAGE
• Nutramul Malted Milk Food
MILK DRINK
• Amul Shakti Flavoured Milk

MARKETING MIX OF AMUL

Amul was definitely an “Amoolya” brand. Amoolya in Sanskrit means something which was
invaluable or priceless. With a presence in almost every product which can be made by milk,
Amul had won over hearts along with market share to become a highly valued brand with
an Indian origin. Amul was formed because of a revolt of dairy farmers. Today, Amul had a
strong brand even amongst the competitors. The reason Amul was such a popular brand
was because of the marketing mix of Amul.

Product in the Marketing mix of Amul.

Product in the marketing mix of Amul. Amul had a very strong product portfolio Amul
product portfolio was comprised mainly of Dairy products. Amul butter, Amul cheese and
Amul ice cream were cash cows for Amul as they have the major market share in their
product category. Amul ice cream was amongst the top 10 ice cream brands of India. Amul
milk, Amul Paneer and Amul Dahi consumption wason the rise. In fact, Amul milk had 26%
of market share in the packaged milk segment. The only disappointing performance was
seen in Amul Chocolates which were a burden for Amul and lot of push was required for the
sales of the same. This was mainly because the chocolate market had established players
like Parle, Dairy milk and others. The Amul family tree had the following brands – Amul Milk,
Amul bread spreads, Amul Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul
ice cream, Amul Paneer, Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul
mithai range, Amul mithai mate, Amul chocolates, Amul butter milk. Thus, Amul had a very
vast range of product portfolio. Amul has various competitors based on different products.
In ice cream it is Vadilal, Dinshaws and Havmor. In butter and milk there is Mother Dairy,
Britannia and others. However, no competitor has such a vast dairy based product portfolio
as Amul. This is the major reason that Amul has a sustainable competitive advantage over its
competitors.

PRICE IN THE MARKETING MIX OF AMUL

Amul had a strategy of low cost pricing. Penetrative pricing strategy was used when the
market had a high level of competition and a player wanted 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.
The same vision was in place even today. Today also, one will find that Amul butter, milk
and cheese were available at affordable prices keeping in mind the end customers.

PLACE IN THE MARKETING MIX OF AMUL

Amul has a massive distribution network because of which its ice creams, milk, butter and
cheese was found practically everywhere. As it was a FMCG product, Amul follows the
methodology of breaking the bulk. The initial factory output was transported in bulk
packages. Later on this bulk packages became smaller and finally one individual slab of
butter or scoop of ice cream was sold at the retail place.Amul products were distributed
mainly through two channels. One was the procurement channel which is responsible for
collection of Milk through dairy co-operatives. The other wasthe distribution channel which
is responsible for distributing the finalized product to the end customers.In the procurement
channel, the milk was individually delivered from farmers to the co-operatives. The co-
operatives then collected all this milk and send the bulk to the manufacturing facility. At the
manufacturing facility, the milk was used to manufacture the finalised products.In the
distribution channel, there were carrying and forwarding agents, distributors, dealers and
retailers involved. There were also Amul shoppe’s which sell all products in the Amul
product portfolio. The distribution is as follows.
Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer / Amul Shoppe >>
CustomerAmul >> Modern retail. Thus, there was a lot of transportation involved for all of
Amul’s products. However, the distribution channel of Amul ensures that the products reach
every nook and corner of India.
 PROMOTIONS IN THE MARKETING MIX OF AMUL

Amul was responsible for one of the most unique and longest running outdoor campaign as
well as one of the most known outdoor advertising characters – The Amul girl. Mr Eustace
Fernandes, was the creative brain behind the sweet girl. The Amul girl is sweet and cute, she
was also known to be the naughtiest advertising girl ever. Amul hoardings mainly featured
the current news and were used to take a tongue in cheek viewpoint at current happenings.
However, each advertisement hits The promotions of Amul were mainly for butter but for all
the other products there was hardly any promotions. During the launch of products, Amul
was known to go ATL and advertise milk, butter etc. The Smita Patil ad wherein Smita Patil
was shown as a village milk collector was one of the most famous ads for Amul. But overall,
the main advertisement was BTL through outdoor, trade promotions, discount schemes and
sales promotions. The major reason for Amul’s absence in hardcore advertising was that
Amul did not want to give away margins in advertising its products. As per Amul, their
maximum budget for advertising was 1% of the turnover. The major reason for Amul’s
strong presence in the market wasits excellent quality combined with the affordable price.
Thus, overall promotions will always be low for Amul except for the outdoor advertising of
Amul butter.

The main dilemma: Promotion during Lockdown in

the COVID 19 crisis situation
The moppet Amul Butter girl had put Amul on India's breakfast table When it was first
launched, Amul's sale figures had jumped from 1000 tonnes a year in 1966 to over 25,000
tonnes a year in 1997. The demand was growing rapidly ever since. No other brand came
even close to it. One of the reasons was a thumb-sized girl climbed on to the hoardings and
put a spell on the masses. Amul ads, relating to day-to-day issues, were popular. These
advertisements earned a Guinness world record for the longest running ad campaign in the
world. In this lockdown situation, however, people were restricted to their homes,
newspapers were banned. There was no use to put up billboard or newspaper
advertisements of the Amul Butter Girl to help people recall the brand. Like most or the
people and organizations were going virtual and operating in the virtual space, this could be
a new place where Amul could place the advertisements and still remain relevant and firm
in the minds of the India consumer. However, will Amul advertisements on social sites
work? Will such advertisements cost more and affect the pricing of the product? Will the
consumer recall the brand on watching the advertisements on social media? Other option
was to introduced retro advertisements of Amul and sponsor the re-telecast of Ramayana
and Mahabharata. During the lockdown period viewers had requested in large numbers to
re-telecast some blockbuster serials on the National Doordarshan channel. On the request
of masses many serials like Ramayana, Mahabharat, Byomkesh Bakshi, to name a few were
re-telecast on the National Doordarshan Channel. These serials had a major viewership.
During the lockdown period the TRP ratings of Ramayana and Mahabharata were the
highest. Releasing retro advertisements of Amul for sponsoring Ramayana and Mahabharata
would help the brand reach the masses. Michael had many such questions which were still
untested, unanswered and needed urgent attention. The lockdown situations posed various
changes. It was very important for a brand like Amul to keep itself relevant and in the minds
of the people even in this tough situation.

SWOT ANALYSIS

STRENGTH:
Largest milk producer in the world A huge base of around 11 million farmers Traditional
emphasis on consumption
Amul has a strong growth as its turnover for previous year increased by almost 18% and
growth revenue by 67% making it the world thirteenth largest dairy organization With
Amul’s products being popular and being in the market for a while now, it has developed its
brand name and their customers are very loyal to the company.
. Although Amul’s distribution network is wide and dispersed, it has managed to maintain its
quality throughout the world. The credit also goes to the fact that Amul has a very strong
supply chain.
Their diverse and wide ranges of products are also one of its strengths. .The global mascot
(Amul girl) used in their advertising is their icon throughout the world.
1. Corporate Image.
2. Diversified product line.
3. Dedicated work force.
4. Totally integrated operation.
5. Good for sightedness and long term vision.
6. Low capital cost
7. Brand Power.
8. High quality product.
9. Customer as well as customer support.

WEAKNESS:
1.Supply is not regular.
2. Distribution of Amul pouch milk is not proper in some of areas
3. Co-ordination of company or retailer is not proper
. 4.―Weak management support and less effective customer care‖ said some retailers.
5. With too many international brands in competition with Amul, it now finds difficult to
control its cost of operations. And thus is facing huge competition especially in international
markets.
6. Amul introduced its chocolate a while back but it has not been able to gain the
acceptance that it was aiming for.
7. The shelf life for most dairy products is limited which makes the company vulnerable to
losses
 8. Despite the distribution being strong, it is still not dispersed to rural areas. 5. Amul
invests very low in terms of advertising.

OPPORTUNITIES:
1. With the liberalization new avenues of exploiting open market economy are being open
up.
2. Being the oldest co-operative society use their brand name as already being leader in
dairy products, the other competitors are very far behind AMUL.
3. New product from Amul i.e. Amul preferred outlet(APO) can be very successul in the
market as we receive better response from Distributors as well retailers and consumers
.4. Must take the advantage of priority given to the Dairy industries by the Govt. in terms of
loan.

THREATS:
1. With the globalization and liberalization various global brands are started to peak in.
2. Competition from other Co-operative and local industries are present in the market.
3. The milk curdling problem allows the competitors to penetrate the market which is
previously covered by the Amul. The milk from Softe plant is responsible for that as a
retailer can not bear huge loss. Some serious problem found is of the late delivery of milk in
area like R.K.Puram. Sometime distributor‘s attitude and rude behavior is responsible for
decrease in sales.

ABOUT PRODUCTS
AMUL means "priceless" in Sanskrit. The brand name "Amul," from theSanskrit "Amoolya,"
was suggested by a quality control expert in Anand. Variants, allmeaning "priceless", are
found in several Indian languages. Amul products have beenin use in millions of homes since
1946. Amul Butter, Amul Milk Powder, AmulGhee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Icecream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand inIndia. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is a
symbol of manythings. Of high-quality products sold at reasonable prices. Of the genesis of a
vast cooperative network. Of the triumph of indigenous technology. Of the marketing
savvyof a farmers' organisation. And of a proven model for dairy development.
 PRODUCT MIX

A product mix consists of all the product lines and items that a particular selleroffers for
sale. A company’s product mix has four important dimensions : width,length ,depth and
consistency.
Product mix width refers to how many different product lines the company carries.
AMUL has 4 different product lines namely milk and milk products, chocolate and ice-cream,
wet products and dry products.
Product mix length refers to the total number of items in the mix . In the milk and milk
products line there are 14 different products, while in ice-cream and chocolate range there
are 21 products and in wet and dry products line there are 20 and 10 different products
respectively. Product line depth refers to how many variants are offered of each product in
the line .
Product line consistency refers to how closely related the various product lines are in the
end use, production requirements, distribution channels or some other ways . Although the
products vary in many ways there is still product line consistency in AMUL. All the products
of AMUL are marketed through same channels of distribution.

MARKET SEGMENTATION
Market Segmentation is the act of sub dividing a market into distinct sets of customers who
merit attention. Targeting these customers for marketing by evaluating, selecting, and
concentrating becomes a corollary to segmentation. Market segmentation assumes
importance in the context of intense competition market is bombarded with. A market
consists of buyers, and buyers differ in one or more ways. They may differ in their wants,
resources, locations, products requirements. These variables have to be considered in the
process of segmentation. There are different levels of market segmentation. They are mass
marketing, segment marketing, niche marketing and micro marketing. Markets can be
segmented on the geographical basis, demographical basis, psychological basis, behavioral
basis and loyalty status.

AMUL segments its market on the following basis:

1. GEOGRAPHICAL BASIS:
This segmentation is done on the basis of the lifestyle of people in different regions and
their tastes and consumption patterns which are distinct according to their geographical
situation. AMUL has segmented India geographically into 5 zones.

2. DEMOGRAPHICAL BASIS:
They have segmented its market on the basis of the socio-economic status of the customers.
i.e. on the basis of their purchasing power and income level as follows:
GROUP’A’:
Consumers falling in this group are from higher social and economic class.
GROUP’B’:
Consumers falling in this group are from middle socio-economic class.
GROUP’C’:
Consumers falling in this group are from the lower middle class.

MARKET TARGETING
After segmenting the market, company evaluate the various segments and decides how
many and which ones to target.
Generally the market is targeted in three ways:-

 UNDIFFERENTIATED MARKETING
 DIFFERENTIATED MARKETING
 CONCENTRATED MARKETING
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 according to the segments like
geographic and demographic.
 PACKAGING

Packing includes the activities of designing and producing the container for the product.
Packaging has become the potent marketing tool. Well designed packages can create
convenience and promotional value. Various factors contribute to packaging growing use as
a marketing tool:
• SELF SERVICE
• CONSUMER AFFLUENCE
• COMPANY AND BRAND IMAGE
• INNOVATION OPPORTUNITY
Packaging of the products of AMUL varies according to the nature of the product. As most of
the products are perishable in nature special care is taken in packing them. MILK AND MILK
PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND CHOCLATES are
packed in cardboard packing. The company maintains the standards prescribed by BIS, with
regards to packing. These products are then packed in cartoons, for greater safety measures
and for transporting them to the market.

LABELING
Labeling printed information that appears on or with the package, is also a part of
packaging. Labels may range from simples tags attached to products to complex graphics
that are part of the package. Label identifies describes and promotes the product through
attractive graphics. The label might carry only the brand name or great deal of information
or pictures. Even if the seller prefers a simple label the law may require additional
information.
The labels of the products of AMUL are attractively designed. It contains all the information
as per statutory requirements. Information like name of product, brand name, logo, date of
packing & manufacturing, expiry date, price, code number, ingredients, storage and usage
instructions, weight, manufacturer’s and marketer’s name, logo showing “ PURE VEG ” etc
appears on the label of the products.

BRANDING

A brand is a name, term, sign, symbol or design or a combination of these used to identify a
product or company. A trademark is a legally recognized brand. Branding has become so
strong that today hardly anything goes unbranded. Today customers view a brand as an
important part of the product and branding adds value to a product.
Brand names help customers identify products that might benefit them and also tells the
buyer something about the product quality. To the sellers brand name and trademark
provides legal protection for unique product features that otherwise might be copied by the
competitors and it also helps them to segment markets. A brand name is selected keeping in
view the product and its benefits, the target market and proposed marketing strategies.
Decisions about branding are taken at the Head Office at Anand. AMUL means “priceless” in
Sanskrit. The brand name “AMUL” from the Sanskrit “Amoolya” was suggested by a quality
control expert in Anand. Variants, all meaning “priceless”, are found in several languages of
India. AMUL manufactures and markets its products under two brand names AMUL and
SAGAR Information Technology (IT) has played a significant role in developing the Amul
brand. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village
Societies to capture member information, milk fat content, the volume collected and
amount payable to each member has proved invaluable in ensuring fairness and
transparency throughout the whole Amul organization.

UMBRELLA BRAND
The network follows an umbrella branding strategy. Amul is the common brand for most
product categories produced by various unions: liquid milk, milk powders, butter, ghee,
cheese, cocoa products, sweets, ice-cream and condensed milk. Amul's sub-brands include
variants such as Amulspray, Amulspree, Amulya and Nutramul. The edible oil products are
grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while
fruit drinks bear the Safal name. By insisting on an umbrella brand, GCMMF not only
skillfully avoided inter-union conflicts but also created an opportunity for the union
members to cooperate in developing products.

BRAND EQUITY
Brand equity refers to the value of a brand, based on the extent to which it has brand
loyalty, brand name awareness, perceived quality, strong brand associations, and the other
assets such as patents, trademarks and channel relationship.
It is evaluated on the basis of brand assets which are:

1. BRAND AWARENESS: Awareness ultimately enhances brand equity.AMUL enjoys

very high brand awareness among its customers. According to the survey done by the
company, brand awareness is as high as almost 90%.

2. BRAND LOYALTY: Brand loyalty means the ability to retain the existing customers.
AMUL is blessed with high brand loyalty among its customers. As it is one of the biggest
market players it has proportionately larger group of loyal customer, who are in turn a
medium of marketing/ advertising.

3. BRAND ASSOCIATIONS: Consumers associate the brand with certain tangible and
intangible attributes. Most of these associations are derived from brand identity and brand
image. Customers associate AMUL’s brand with high quality standards and reasonable price.

4. BRAND IMAGE: Brand image is the meaning consumers give to a product based on
the perceived values it delivers. AMUL has created brand image by offering excellent quality
products at reasonable price. Perfect distribution channel; continuous & effective
advertising; use of different promotional tools; wide loyal market share, has contributed to
create an excellent image in its trade operations.

Types of media used

1) Print medium
Amul Chocolates started publicity with print advertisement in the 1970s.But the occurrence
and reach of these advertisements was restricted and unsuccessful to create the desirable buzz
in the market. Amul Chocolates also advertised in Indrajal Comics, a series of comics
launched by The Times of India, in 1964 which was relatively popular in 1970s and 1980s.

2) TV commercials:

Series of these advertisements were launched on TV with filling the blanks by the right words
of this punchline. In one of the adds, a young teenage girl sings ‘I am 2 old for dolls, 2 young
for the disco’, her elder sister (I think!!), sings back, “But I think you are just right for Amul
chocolates” in the year 2000, There were 2 famous TV advertisements that were aired in year
2005.
“Insert Figure 4 here”

Father – son ad
Father role played by actor Ram kapoor is flying back home from trip and has bought Amul
chocolates for his kid. He habitually keeps the chocolate in the right side of his coat but this
time to puzzle his kid he keeps the chocolate on left side. On coming home the kid checks the
left side only and is very happy to find the chocolates. And in the background of add the wife
is shown smiling. The ad focuses on strength of a father son relation is, similarly a consumer
will have an enduring connection with Amul Chocolates.

Rose day
This advertisement have the tagline that for somebody you love, is acceptable by showing a
boyfriend gifting his girlfriend Amul chocolate which give to happiness the girl.

Inspite of these advertisements being aired for 6 years old; they were also aired during the
cooking reality show, Master Chef India (Amul sponsors) in 2011. This evidently shows that
the advertisement was not altered with the new changing times.
 INFORMATION TECHNOLOGY INTEGRATION

Amul is bolstering its brand identity as a farmers' co-operative through the Internet based
"amul.coop" URL and e-mail addresses. This will continually remind the world's consumers
that they are a cooperative, and proud of it. This identity gives Amul a vital business
advantage and facilitates Amul brand penetration across the world. It also strengthens their
co-operatives by bringing their members together and closer to consumers.

Technology and e-initiatives

GCMMF's technology strategy is characterized by four distinct components: new products,

process technology, and complementary assets to enhance milk production and e-
commerce.
Few dairies of the world have the wide variety of products produced by the GCMMF
network. Village societies are encouraged through subsidies to install chilling units.
Automation in processing and packaging areas is common, as is HACCP certification. Amul
actively pursues developments in embryo transfer and cattle breeding in order to improve
cattle quality and increases in milk yields.
GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ
Internet technologies to implement B2C commerce.
Today customers can order a variety of products through the Internet and be assured of
timely delivery with cash payment upon receipt.
Another e-initiative underway is to provide farmers access to information relating to
markets, technology and best practices in the dairy industry through net enabled kiosks in
the villages.
GCMMF has also implemented a Geographical Information System (GIS) at both ends of the
supply chain, i.e. milk collection as well as the marketing process.
Farmers now have better access to information on the output as well as support services
while providing a better planning tool to marketing personnel.

MANAGING THE SUPPLY CHAIN

Even though the cooperative was formed to bring together farmers, it was recognized that
professional managers and technocrats would be required to manage the network
effectively and make it commercially viable.

Coordination
Given the large number of organizations and entities in the supply chain and decentralized
responsibility for various activities, effective coordination is critical for efficiency and cost
control. GCMMF and the unions play a major role in this process and jointly achieve the
desired degree of control.
Buy-in from the unions is assured as the plans are approved by GCMMF's board. The board
is drawn from the heads of all the unions, and the boards of the unions comprise of farmers
elected through village societies, thereby creating a situation of interlocking control.
The federation handles the distribution of end products and coordination with retailers and
the dealers. The unions coordinate the supply side activities. These include monitoring milk
collection contractors, the supply of animal feed and other supplies, provision of veterinary
services, and educational activities.

Managing third party service providers

From the beginning, it was recognized that the unions' core activity lay in milk processing
and the production of dairy products. Accordingly, marketing efforts (including brand
development) were assumed by GCMMF. All other activities were entrusted to third parties.
These include logistics of milk collection, distribution of dairy products, sale of products
through dealers and retail stores, provision of animal feed, and veterinary services. It is
worth noting that a number of these third parties are not in the organized sector, and many
are not professionally managed with little regard for quality and service. This is a particularly
critical issue in the logistics and transport of a perishable commodity where there are
already weaknesses in the basic infrastructure.

Establishing best practices

A key source of competitive advantage has been the enterprise's ability to continuously
implement best practices across all elements of the network: the federation, the unions, the
village societies and the distribution channel. In developing these practices, the federation
and the unions have adapted successful models from around the world. It could be the
implementation of small group activities or quality circles at the federation. Or a TQM
program at the unions. Or housekeeping and good accounting practices at the village society
level. More important, the network has been able to regularly roll out improvement
programs across to a large number of members and the implementation rate is consistently
high.
For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of
GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their
various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda
and Limit (PAL) with a process check at the end to record how the meeting was conducted.
Similar processes are in place at the village societies, the unions and even at the wholesaler
and C&F agent levels as well.
Examples of benefits from recent initiatives include reduction in transportation time from
the depots to the wholesale dealers, improvement in ROI of wholesale dealers,
implementation of Zero Stock Out through improved availability of products at depots and
also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions
have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by
multi-disciplined teams, Kaizens are highly focused projects, reliant on a structured
approach based on data gathering and analysis.) For
example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour
milk/curd received at the union. The most impressive aspect of this large-scale roll out is
that improvement processes are turning the village societies into individual improvement
centers.
PRICING
The amount of money charged for a product or service or the sum of the values that
consumers exchange for the benefit of having or using the product or service is called its
price. A company’s pricing decisions are affected by both internal factors like company’s
objectives, marketing mix strategy, cost and organizational considerations and external
factors like nature of the market and demand, competition and other environmental
elements.
While deciding the price of its products AMUL takes into consideration all the below
mentioned factors, this is true for all the products.
• Cost of raw materials
• Cost of labour
• Profit margin of distributors
• Various administrative and manufacturing overheads
• Prices of the competitors
• Demand and supply position in market
• Fair return to the farmers
AMUL believes that the company with largest market share will enjoy lowest cost and
highest long run profit to become the market leader. They set prices as low as possible .

PRICING APPROACH
AMUL employs different pricing policies for different products depending upon the life cycle
stage of the product, market condition and the nature of product. In case if the product is
newly launched in the market the company doesn’t emphasize on the profit margin and
keeps its prices as low as possible so as to penetrate in the new market.
However in case of the already established products the company uses a mix of cost plus
pricing approach and competitor based pricing approach i.e. it sets its prices keeping in view
the cost of production, desired profit margin and prices of competitor’s products.

DISTRIBUTION CHANNEL
A distribution channel is a set of interdependent organizations involved in the process of
making a product or service available for the use of consumption by the consumer or
business user. In other words, the channel decision is one which takes the product to the
customer. The channel selected affects every other marketing decision and has a bearing on
the future. Marketing channel decision is among the most decision that management faces.
Before selecting a particular channel, every firm takes some factors into consideration and
then only decides a particular channel. Decisions taken by AMUL are as under:
1. ANALYSING CONSUMER’S NEEDS
2. SELECTING CHANNEL OBJECTIVES
3. TYPES OF INTERMEDIARIES
4. NUMBER OF INTERMEDIARIES
5. EVALUATING ALTERNATIVES
Distribution channel can be described by the number of channels levels involved. Channel
level is the level of intermediaries that performs some work in bringing the product and its
ownership closer to the final buyer. The following are the different types of distribution
channel that a firm may use:
(i) ZERO-LEVEL CHANNEL:
Manufacturer---------------Consumer
(ii) ONE-LEVEL CHANNEL:
Manufacturer---Retailer---Consumer
(iii) TWO-LEVEL CHANNEL:
Manufacturer--Wholesaler--Retailer--Consumer
(iv) THREE-LEVEL CHANNEL:
Manufacturer-Wholesaler-Agents-Retailer-Consumer
AMUL has three-level distribution channel, i.e. it employs carry forward agents, wholesaler
and retailers to carry its products to the final consumers. Till today, the major development
on the distribution front is the development and alignment of four distribution highways -
those of Fresh Products, Chilled Products, Frozen Products and Ambient Products. This is a
significant achievement because it allows AMUL to develop synergies among all their
product lines and to leverage these highways to introduce and distribute new products as
per market demand. No other organization in India has been able to develop this kind of
channel synergy so far.
Another major initiative undertaken is the Time-based Military Technique (TMT) of
distribution. This has been deployed to effect a nationally synchronized mass distribution of
their products with the objective of achieving total channel penetration on a single day.
After Distributor Salesmen in the previous year and Distributors in the year before last, it
was the turn of the top Retailers across the country to participate in the Amul Yatra
Programme which is a unique experiment conducted by Amul to bring their channel
partners face to face with their cooperative institutions, activities, culture and achievements
through a guided tour in and around Anand. A total of 114 Distributor Salesmen and 482 top
retailers from across the country participated in the Amul Yatra this year. With the opening
of several new milk markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and
Boisar, the number of Milk Area Delivery Agents has increased.

DECISION ABOUT THE CHANNEL MEMBER

Decisions about selecting a channel member is taken by the head office. Wholesalers are
appointed by conducting the market survey , finding out the number of distributors
available ,manpower and financial capabilities of each of them, market likelihood,
infrastructural facilities etc. all this information is filled in a form which is sent to the head
office where it moves from Marketing Manager to the General Manager who finally selects
the one that suits the best to the company.
Distributors have to give a bank guarantee or demand draft in against of the value of goods
they want to purchase and have to make a payment for the same within four days of the
dispatch of the order. The seller then forwards the goods to the retailers for which prices
and norms of delivery are fixed by the head office. Both the retailers and wholesalers are
required to maintain certain basic infrastructural facilities.
The head office and all the depot offices have their own authorized transporters who carry
the order from the production place to place of order.

Introduction on Ice Cream Industry

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the
total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs
4.9bn, rest all is with the unorganized sector. Among the major players in this industry
Hindustan Lever has a market share of around 50%, represented mainly by Kwality Walls
brand. Amul with an estimated market share of 41% is rapidly gaining market share and
lastly Vadilal is the player in the national market with 8-9% of the market share.Production
area In rural areas, kulfi / ice creams made by small / cottage industry are popular. The
market for organized sector is restricted to large metropolitan cities. In small towns and
villages, there are thousands of small players who produce ice- creams / kulfis in their home
backyard and cater to the local market. Almost 40% of the ice creams sold in the country are
consumed in the western region with Mumbai being the main market, followed by 30% in
the north and 20% inthe south. Growth promotional activities The Indian government
adopted the policy of liberalization regarding the ice cream industry also and it is since then
that this sector has shown an annual growth ranging from 15- 20% per annum for last 1- 2
years. Types Indian Ice Cream market can be segmented in three different ways, namely on
the basis of flavours; on the basis of stock keeping units / packaging and on the basis of
consumer segments. On the basis of flavours the market today has a number of flavours like
vanilla, strawberry, chocolate, mango, butterscotch and a number of fruit flavours, dry fruit
flavours traditional flavours like Kesar Pista, Kaju Draksh etc.

The market is totally dominated by Vanilla Strawberry and chocolate, which together
account for more than 70% of the market followed by butterscotch and other fruit flavours.
Amul Ice-Creams Variants
1) Prolife Ice-cream – Vanilla with chocolate sauce, Shahi anjir
2) Sundae – Sundae, Sundae magic ,Double sundae
3) Sticks – Frostik, Dollies, Candies
4) Cones – Butter Scotch, Choco crunch
5) Novelties – Cassata, Hum Tum, Cake magic
6) Malai Kulfi – Masti kulfi, Shahi pista
7) Kids – Sundae fundoo, fundoo chocobar, Fundoo balls (vanilla & mango)
8) Utterly Delicious Take away (Available in 500ml, 1.25L, 1.5L & 2.2L) Vanilla Royale, Two
in One, Butter Scotch, Chocolate Passion, Fruit n Nut Fantasy,Alphonso Marvel.
9)Utterly Delicious Cups - Alphonso Mango, Vanilla, Strawberry, Chocolate, Kaju Draksh,
Butter Scotch, Kesar Pista Royale, Kis Mis Kaju
10) But 1 Get 1 Free –
a) Spanish Saffron with Cream Balls + Same
b) Rajbhog + Same
c) Fresh Litchi + Same
d) Shahi Anjir + Same
e) Kesar Pista Royale + Same
f) Fresh Pineapple + Same
g) Fruit Bonanza + Same
h) Chocolate + Same
i) Alphonso Mango + Same
j) Tutti Fruti + Same
k) Green Pista + Same
l) Prolife Vanilla + Butter Scotch
m) Vanilla Royale + Same
n) Butter Scotch + Same
o) Gauva + Same
p) Cookie and Cream + Same
q) Thandai + Same
r) Afghan Dry Fruit + Same
s) Shahista Pista Kulfi + Same
11) Couple Pack (250ml) – Vanilla Royale, Strawberry, Butter Scotch Chocolate

Various Other Brand of Amul

AMUL‟S OFFERINGS
Breadspreads:
1. Amul Butter
2. Amul Lite Low Fat Breadspread

Cheese Range:
1. Amul Pasteurized Processed Cheddar Cheese
2. Amul Processed Cheese Spread
3. Amul Mozzarella Cheese

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):
1. Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
2. Amul Amrakhand
3. Amul Mithaee Gulabjamuns
4. Amul Mithaee Gulabjamun Mix
5. Amul Mithaee Kulfi Mix

UHT Milk Range:

1. Amul Taaza 3% fat Milk
2. Amul Gold 4.5% fat Milk
3. Amul Slim-n-Trim 0% fat milk
4. Amul Chocolate Milk
5. Amul Fresh Cream
6. Amul Snow-cap Softy Mix

Pure Ghee:
1. Amul Pure Ghee
2. Sagar Pure Ghee
3. Infant Milk Range:
4. Amul Infant Milk Formula 1 (0-6 months)
5. Amul Infant Milk Formula 2 ( 6 months above)
6. Amulspray Infant Milk Food

Milk Powders:
1. Amul Full Cream Milk Powder
2. Amulya Dairy Whitener
3. Sagar Skimmed Milk Powder
4. Sagar Tea and Coffee Whitener

Fresh Milk:
1. Amul Taaza Toned Milk 3% fat
2. Amul Gold Full Cream Milk 6% fat
3. Amul Shakti Standardised Milk 3% fat
a. Amul Smart Double Toned Milk 1.5% fat

Curd Products:
i. Amul Masti Dahi (fresh curd)
ii. Amul Butter Milk
2. Chocolate & Confectionery:
i. Amul Milk Chocolate
ii. Amul Fruit & Nut Chocolate
iii. Amul Éclairs

Brown Beverage:
 1. Nutramul Malted Milk Food

SWOT Analysis of Amul Ice Cream

Strengths:-
1) Biggest Sourcing base for milk and milk products in India.
2) 38% market share in the national ice cream market.
3) Penetration pricing strategy- Amul is the price warrior in the ice-cream market and
currently has a very wide range to offer for all the price points.
4) Reputation of high quality.
5) E-commerce, new products and process technology.

Weaknesses:-
1) Advertising is low profile, as the results of the survey show. Majority of the
respondents have hardly seen any ad of Amul ice cream. However Kwality Walls on
the other hand is into heavy advertising and consequently, is popular.
2) Shortage of stock during season.
3) Less attractive packaging.
4) Distribution problems.
5) Retailers now demand freezers without having to pay any deposit. This is especially
true of those retailers who already stock one or the other ice cream brands.
6) Limited international presence as compared to leading global brands

Opportunities:-
1) Internet promotions are a good means of awareness which should be tapped.
2) It is a high growth segment as the population is every increasing with never- ending
demands.
3) Distribution coverage

Threats:-
1) Amul is currently facing stiff competition from Kwality Walls and may face more threat
from the local manufactures in the low priced segment ice creams.
2) The customers have very well received the Kwality Walls product differentiation strategy
and Mother Dairy is also pushing up its advertising pitch.
3) Also the low per capita income low per capita consumption of the people is a threat to
Amul.
4) Free entry to the markets.
5) Even Vadilal is coming up with their new strategy and promotions of various variants Of
ice creams
6) Health conscious people refraining from sweets.

SALES FORCE MANAGEMENT

The organization of sales department is as under:
ZONAL INCHARGE
↓
DEPOT INCHARGE
↓
EXECUTIVES
↓
F.S.R. (Field Sales Representative)
↓
PSM (Pilot Sales man)
The total staff at AMUL is of nearly 750 people. The company conducts intensive training
programme for its employees. The company sends any of its employees for training who will
later train the other employees. It’s not necessary that the person sent for training must be
someone from the top or middle management, he can be any employee. The company
treats all its employees equally. Various training programmes like TQM, Self management
Programmes, etc conducted so far. The turnover and absenteeism ratio is almost negligible
at AMUL which is the proof of the well functioning of the Human Resource Management. All
the agents and sales force is giving a percentage of sales as commission.

INTERNATIONAL BUSINESS
AMUL stands out a star performer both in the domestic and international market.With the
perfect mix of technical know how and business acumen the company has grown into a
major of milk and milk products producing company.
AMUL is India’s largest exporter of dairy products. It has been accorded a “Trading House”
status. It has received the APEDA Award from Government of India for excellence in dairy
product exports for the last 8 years.
AMUL has its market in almost 20 countries which include USA, Iraq, Kuwait, Russia, Nepal,
Qatar, Muscat, Singapore, Saudi Arabia, Sri Lanka, Bangladesh, Gambia, Uganda,
Madagaskar, Tanzania, U.A.E., Bahrain. Major export products of AMUL are:

Consumer Packs
• AMUL PURE GHEE
• AMUL BUTTER
• AMUL SHRIKHAND
• AMUL FULL CREAM POWDER
• AMUL MITHAEE GULAB JAMUN
• AMUL SKIMMED MILK POWDER
• NUTRAMUL BROWN BEVERAGE
• AMULSPRAY INFANT MILK FOOD
• AMUL CHEESE
• AMUL MALAI PANEER
• AMUL UHT MILK (LONG LIFE)
• AMUL FRESH CREAM

Bulk Packs
• AMUL SKIMMED MILK POWDER
• AMUL FULL CREAM MILK POWDER

SALES TURNOVER
 Gujarat Cooperative Milk Marketing Federation: An
Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest foodproducts
marketing organization. It is a state level apex body of milk cooperatives inGujarat which
aims to provide remunerative returns to the farmers and also serve theinterest of
consumers by providing quality products which are good value for money.

Members 12 district cooperative milk producers'Union

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
No. of Producer Members 2.5 million
No. of Village Societies 11,962
Total Milk handling capacity 9.91 million litres per day
Milk collection (Total - 2007-08) 2.28 billion litres
Milk collection (Daily Average 2007-08) 6.3 million litres
Milk Drying Capacity 511 metric Tons per day
Cattle feed manufacturing Capacity 2340 Mts per day
The annual sales turnover of AMUL in last 9 years is as follows, which itself is the proof of
the huge turnover and the success and profitability of the company.
Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 43280 975
 INTERNATIONAL DISTRIBUTION STRATEGIES
The company has appointed special carry forward agents for distributing its products in the
international market .It has rented cold storages in various countries to store its products
from where they are distributed as per orders. Although the distribution network for
international market is not so well knitted as in case of domestic market, it has been
successful in maintaining a satisfactory network that ensures smooth functioning.

INTERNATIONAL PRICING STRATEGIES

While deciding the prices for international market the company takes into consideration the
prices of the competitors , production cost , distribution cost for international market , taxes
and duties to be paid ,etc. However the company tries not to have much difference in prices
in National and the International markets.

PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in National and
International markets, except for the fact that the company has to maintain the quality
standards as per the regulations of the respective countries. Not all the products
manufactured are yet available in International market because of the difference in
preferences and consumption pattern of the people in various countries.

EXPORT POTENTIAL
India has the potential to become one of the leading players in milk and milk product
exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close
to India.
Low Cost of Production: Milk production is scale insensitive and labor intensive. Due to low
labor cost, cost of production of milk is significantly lower in India.

CONCERNS IN EXPORT COMPETITIVENESS ARE :

Quality: Significant investment has to be made in milk procurement, equipments, chilling
and refrigeration facilities. Also, training has to be imparted to improve the quality to bring
it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all
over the world.

TOTAL QUALITY MANAGEMENT

In 1994 AMUL had embarked on the Total Quality Management and in 1999 received the
Rajiv Gandhi National Quality Award for the year 1999, India’s premier recognition for
quality. Continuing to learn their employees have consistently striven to maintain improved
product and service quality at each stage of the value chain.
More than 25000 Kaizens—small improvements in work areas-were made by employees in
different areas like cost cutting, time saving and process improvement. To ensure minimum
wastage and maximum productivity and quality, house keeping initiatives have been
zealously pursued at the Federation offices, Warehouses and Distributor points.
Learning from employing Total Quality Management principles have been cascaded to both
the member dairies as well as distribution channel members. Workshops on Statistical
Quality Control have been conducted across the member dairies to achieve total quality in
the production process.
On of AMUL’s most remarkable achievements has been creation of more than 225 Quality
Circles across the length and breadth of the country. The federation’s wholesale dealers
meet every month in these quality circles and discuss and resolve distribution problems and
improve their distribution process.
Amul continues its commitment on improving the competency of its professional managers
through its Competency Based Training Programmes which builds both generic and
functional skills through in-house, customized training programmes. Another unique feature
of the TQM programmes at AMUL is the HOSHIN KANRI.
The word Hoshin is made up of two Chinese characters “HO” and “SHIN” which means a
methodology for strategic direction setting. In Hoshin Kanri, at the strategic level the
company identifies certain strategic thrust areas and the entire organization, i.e. all
employees focus their attention and energy to achieve the goals derived from these
strategic thrust areas. At the same time, however, more routine and fundamental aspects of
the business are also covered in Hoshin Kanri in addition to the strategic goals.

COMPETITORS
Competitors are the once who produce and sell the same product as producer by the unit
competitors affect the business with several caused. The main rivals are following.
1. Nestle
2. Kwality Walls
3. Vadilal
4. Mother Dairy

1. Nestle India is a subsidiary of Nestle.S.A. Of Switzerland. With seven factories and a large
number of co-packers, Nestle India is a vibrant Company that provides consumer inIndia
with products of global standards and is committed to long-term sustainable growth and
shareholder satisfaction.
2. Kwality Walls Was previously known as Kwality owned by Pishorilal Lamba Kwality Wall's
is a major producer and distributor of ice cream and other dessert products in India,
Pakistan, Sri Lanka,Malaysia and Singapore. It is a company of Hindustan Unilever, the arm
of Unilever in India, and is an extension of the Wall's ice cream brand of Great Britain.
Kwality, the original Indian company, was founded in 1956, and was the first in the region to
import machinery for the mass production and sale of ice cream on a commercial scale. In
1995, in view of the growth potential of the frozen confections market, Kwality entered into
an agreement with Lever, and has since been known by its current umbrella name.
3. Vadilal (Vadilal Industries Limited) From a small outlet in Ahmedabad over 80 years back,
Vadilal Industries Ltd has today emerged as India‟s second largest ice cream player. The
company is also one of the largest processed food players in India with significant exports of
frozen vegetables and ready to eat snacks, curries and breads.Vadilal‟s aim is to become an
Indian MNC in Ice creams and frozen foods and to provide products and services at an
affordable price without compromising on quality.

3. Mother Dairy, set up in 1974, is a wholly owned subsidiary of National Dairy

Development Board (NDDB) of IndiaMother Dairy's range of products includes the
brands Mother Dairy (milk, milk products, curd, ice cream, butter, etc.), Dhara (range
of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit
juices)

QUSTIONNAIRE
Note :-Your response via this questionnaire will be used strictly for
academic purposes. There will be any commercial solicitation or usage of
the response in any kind/ form whatsoever.
A. Personal Information
1. Name:-
2. Age :-
3. Gender:-
4. Monthly income (optional):-
5. Occupation:-
B. Specific Information

6. Which brand do you like to buy?

(a) Amul (b) Mother Dairy (c) any other

7. Since how long you are using this milk brand?

(a) 1-2 year (b) 2-3 year (c) more than 5year

8. What are the reason behind your preference?

(a) Taste (b) Brand (C) packaging

9. Which variety of milk you prefer?

(a) Full cream milk (b) Toned milk (c) cow milk

10. Except milk how many other products you are using of same brand?
(a) Cheese (b) Ghee (c) Shrikhand

11. How much milk you purchase in a day?

(a) 1to 3ltr. (b) 4 to7 ltr. (c) More than 8ltr.

12. Are you satisfied with the price of the prefer brand?
(a) Yes (b) No

13. Would you like to change in this brand?

(a) Yes (b) No

14. What factors influenced you to buy this brand?

(a) Quality (b) Easy availability (c) Attractive packing

15. How do you react with customer complaint to dairy product?

(a) Refuse to take back (b) To solve the complaint (c) Consider the
customer mistake

16. Do you have any leakage of milk packets problem?

(a) Yes (b) No

17. What is your opinion about the quality of dairy products?

(a) Excellent (b) Average (c)Good

18. Which ice cream is better?

(a) Amul (b)Mother Dairy (c) Any Other
 19. Would you specify the reasons for purchasing Amul and Mother
Dairy brand milk?
(a) Regular Supply (b) Reasonable price (c) Safe for consumption

20. Any other suggestion for product development in dairy?

-- -- -- -- -- -

QUESTIONAIRE
Survey on Amul Ice Cream
Name: ___________________________
Gender: _________________________
Location: ________________________
Ph. No\Email id: ________________________________
Age: ________
Occupation: _______________________________________
1. What ice cream brand comes in your mind when you heard the word
ICE CREAM?
a) Kwality walls
b) Amul
c) Mother dairy
d) Baskin robins
e) Naturals
f) Other (please specify)

2. Do you like AMUL ice-cream?

Yes/No
3. Have you seen the ads of amul ice-creams?
Yes/ No
4. Do you think that price of amul ice-creams are high?
Yes /No
5. Is the brand name visible?
Yes/ No
6. Do you like the packaging of the brand?
Yes /No
7. Have you visited the amul parlour?
Yes/ No
8. Do you think amul should use the brand ambassador or it should stick
with the amul girl?
Amul Girl /Brand Ambassador
9. Would you prefer amul ice-cream in a less-sugary base?
Yes /No
10. Do you still prefer amul ice-creams after the worm controversy?
Yes/ No
11. Do you think that amul has succeeded in all marketing strategies it
has undertaken to get the control of the confectionery market?
Yes /No
12. From where do you come to know about the amul ice-creams?
i. news paper
ii. advertising
iii. radio
iv. hoardings
13. Would you prefer a „low calories‟ ice-creams even if it is priced
high?
Yes /No
14. Are you satisfied with the amul ice-cream?
Yes /No
15. Any other suggestion?
___________________________________________________________
_______________
 QUESTIONNAIRE

I am a student of PGDBM from INSTITUTE OF RURAL

MANAGEMENT, JODHPUR conducting a survey on Effectiveness of
advertising towards sales of Chocolates.

[1] What kind of Chocolate do you eat?

Branded ______ Non-branded ______

[2] Who uses chocolates in your family?

Children          Teenager         
Young          Old         

[3] What form of Chocolate do you like?

Cookies _____ Bar _____
Wafer _____ Other _____

[4] Which Television channel you like to watch most?

STAR _______ ZEE ________
SONY _______ CARTOON ________
Others _______

[5] In between what time you like to watch television?

Timings _____________

[6] By which media you prefer to watch advertisements?

Television Hoardings            
Newspapers Magazines            
Others (Mention)           
[7] Which advertisement you like the most?
_______________

[8] What factors effects you in a chocolate advertisement?

Brand ambassador _______ Jingles ________
Comedy _______ Music ________
Others (Mention) _______

[9] Have you ever tasted Amul Chocolate?

Yes _____ No ______

[10] Can you recall AMUL Chocolate advertisement?

Yes ____ No ____

[11] What is the frequency of purchasing Chocolate?

Daily ______ Weekly _______
Fortnightly ______ Occasionally _______

[12] How do you scale your Chocolate?

ATTRIBUTE POOR AVERAGE GOOD EXCELLENT

PRICE

SWEETNESS

PACKAGING

SOFTNESS

SCHEMES

AVAILABILIT
Y
[13] Which Chocolate do you like most?
AMUL ____________
CADBURY ____________
NESTLE ____________
PERFETTI ____________
OTHERS ____________

[14] What would you like to see in a chocolate advertisement?

______________________________________________
______________________________________________
______________________________________________
______________________________________________

NAME: ___________

AGE: ___________

10-15 15-25 25-35 35-45 45 and

above