INTRODUCTION

History of the organization

Amul is basically operated from Anand and it’s on co-operative basis. Amul produces large
variety of product range starting from Milk, Misti Dahi, Mozzarella, Cheese and Ready to eat
pizza as well as Ice creams and chocolates. Amul has been the market leader in butter for last 56
years. No such competitor stands before Amul butter.
Therefore Amul decided to enter into Ice cream field in 2002. After a long research in this field,
an output obtained was positive. Though of the tough competitors like Mother Dairy, Britannia,
Cadbury and many more. Amul was ready to face them. Amul was very successful and got a
positive response from the market in 2002. It was because of its brand image, product range and
test which were given to the retailers.
The main competitors in Sahibabad and Ghaziabad were Mother Dairy, Paras and Parag milk .
Mother dairy was very strong due to its facilities as well as it has made a room in customers
mind. Whereas Amul had also provided a deep freeze on security on preference of the retailer.
Paras was the second major competitor due to its huge investments of money on sales promotion
as well as Paras provides a large variety of product range and attractive packaging.
Amul had a very good advantage of its good brand image. It has captured a very good market in
Ghaziabad and Sahibabad area. Amul has a start to end range of every product. Consumers are
very much attracted towards Amul’s quality, which was highest among all competitors .
The basic strength of the Indian economy is agriculture on which seventy percent of the
Population depends for their livelihood. And a part of it is the Indian dairy industry.
Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy
processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. As he expands his overseas operations to India many
profitable options await him. He may transfer technology, sign joint ventures or use India as a
sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's
and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their domestic milk products sector. Also
India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared
with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of
milk production and increasing production in the country multinational companies are planning
to expand their activities here. Some of these milk producers have already obtained quality
standard certificates

from the authorities. This will help them in marketing their products in foreign countries in
processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43, 500 corers by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00,000
million. Presently the market is valued at around Rs7, 00,000mn

Background

India with 134mn cows and 125mn buffaloes has the largest population of cattle in the world.
Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent
of the buffaloes and twenty percent of the cattle in the world are found in India and most of
these are milk cows and milk buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative
dairy federation. Milk production gives employment to more than 72mn dairy farmers. In terms
of total production, India is the leading producer of milk in the world followed by USA. The
milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous
year. This production is expected to increase to 81mn MT by 2000-01. Of this total produce of
78mn cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia's production. The top five
milk producing nations in the world are India, USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are
 Lack of use of scientific practices in
mulching.
 Inadequate availability of fodder in all
seasons.
  Unavailability of veterinary health
services.

Milk Yield comparison

Source: Export prospects for agro-

based World Trade
Country Milk Yield
industries, Centre,
(Kgs per year)
Mumbai.

USA 7002
Production of
milk in India
Year Production in million MT
UK 5417

2008-09 48.4
Canada 5348

2009-10 51.4
New Zealand 2976

20010-11 53.7
Pakistan 1052

2012-12 56.3
India 795

2012-13 58.6
World (Average) 2021

2013-14 61.2

2014-15 63.5

2015-16 65

2017-18 68.5
 2018-19 70.8

2019-20 74.7

2021-22(E) 78.1

2022-23(T) 81.0

E= estimated

T= target / expected
Fresh Milk

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo milk
contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6%
protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%
protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year
2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267
per MT. Fresh pasteurized milk is available in packaged form. However, a large part of milk
consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is
scarcely available in India.

Packaged milk can be divided according to fat content as follows,

Whole (full cream) milk - 6% fat

Standardized (toned) milk - 4.5% fat

Doubled toned (low fat) milk - 3% fat

Another category of milk, which has a small market is flavoured milk.

MILK PROCUREMENT
The total milk procurement by our Member Unions reached an average of 52.35 lakh
kilograms per day, a 10.6 percent increase over the 47.32 lakh Kilograms per day, achieved
in 2001-2002. Peak procurement touched a high of 67.52 lakh kilograms in a day. This is
an all time record of milk procurement.
SALES
During the year, your 2021-22 sales registered a growth of 17.5 percent increase to reach
Rs. 2,745.74 crores including consignment sales of Rs. 404.53 crores. In addition your
Federation coordinated Rs. 34 crores in product sales to the Defence services. This year,
Amul ice cream achieved record sales, with volume growth by 29 per cent. Sale of Amul
Milk in pouches increased by seven percent in value terms. UHT Milk has grown in
volume terms by 56 percent, which is a very encouraging market response. Amul and
Sagar brand

pure ghee sales in volume increased by 27 per cent over the previous year. Despite intense
competition and a market recession, sales of Amul Butter grew by seven percent and milk
powders remained steady. The sales volume of the Amul Cheese range increased by 15 per
cent. This is particularly pleasing as it demonstrates our ability to resist MNC competition.
New products like Paneer, Mithaimate, Softy Mix, and fresh curd demonstrated their
potential to become dominant brands in the coming few years.

DISTRIBUTION
Amalgamation of the distribution networks carried out in the previous year continued to
yield results in terms of vast improvement in distributor infrastructure including cold
rooms, computers, bank guarantees and deep freeze storages. Our Amul Yatra programme
has already covered 80% of the distributors and 60% of the distributor salesmen, who carry
the philosophy of all that Amul stands for, to the market. Over 200 Amul Quality Circles
continue to be steered month after month with a national perspective and local focus. The
annual business plan for each product is now broken up town-by-town and distributor-by-
distributor, thus making the entire planning process thoroughly focused.
EXPORTS
I am pleased to inform you that this year your Federation's export turnover has grown by
17 % in terms of volume. As you have witnessed, European Union declared heavy
subsidies during last year and as a result international prices have remained at very low
level as compared to previous year. As a result, the export turnover in value terms has
declined by 6 % in spite of good growth in volume.

We are proud to inform that our Long Life milk has been very well accepted in the UAE
and Singapore markets. In the International Market we have grown at a rate of 34% in
consumer packs reflecting growing
 ORGANIZATION STRUCTURE

ANAND MILK UNION LIMITED

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and
followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across
the country in 1999.

In January 2017, Amul introduced SUGAR FREE & Pro Life Pro biotic Wellness Ice Cream,
which was a first in India.

VISION AND MISSION

Vision
Amul vision is to provide more and more satisfaction to the farmers, employees and distributers
the farmers, employees and distributers Mission……
We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the taste
and nutritional requirements of the customers of the world, through excellence in marketing by
our committed team. Through co-operative networking, we are committed to offering quality
products that provide best value for money.”

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 hones since 1946. Amul Milk Powder, Amul Ghee, Amul Spray, Amul Cheese,
Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. (Rs. 29225 Million in 2004-05). Today
Amul is a symbol of many things. Of high quality products sold at reasonable prices. Of
the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of
the marketing savvy of a farmer’s organization. And of a proven model for dairy
development.
AMUL MILK - An Overview
AMUL MILK – BUSINESS PHILOSOPHY

 To serve the interests of milk producers.

 To provide quality products to consumers – value for money.

INDUSTRY STANDING

India’s largest food products marketing organisation with an annual turnover of over Rs. 2700
crores.
Market’s popular brands Amul and Sagar.
India’s largest exporter of dairy products.
India’s largest “cold chain” network.
No.1 market share holder in India for Butter, Cheese, Ice-cream, Dairy Whitener, Condensed
Milk, UHT Milk, and Baby Food.
Presently marketing pouch liquid milk in five states namely, Gujrat, Maharashtra, Chattisgarh,
Rajasthan, Delhi and Madhya Pradesh.

OUR VALUES

Customer Orientation.

Commitment to Producers.

Belongingness.

Co-operation.

Pride in Organisation.

Employee Satisfaction.

Integrity.

Excellence.
MISSION STATEMENT

We, at GCMMF, endeavour to satisfy the taste and nutritional requirements of the world,
through excellence in marketing through our committed team.

Trough co-operative network, we are committed to offering quality products that provide best
value for money

AMUL MILK – JOURNEY 2022

GCMMF will be an outstanding marketing organisation with specialization in marketing of food

and dairy products, both fresh and long life, with customer focus and information technology
integration. The network would consist of over 100 sales offices, 7500 stockists covering atleast
every taluka headquarter town, servicing nearly n1 million retail outlets with a sales turnover of
Rs.10,000 crores (100 Billion), and serving several cooperatives.

GCMMF shall also create markets for its products in the neighbouring countries.

Facts on 47th Annual General Body Meeting

Adopted at their meeting held on 8th June, 2014 for presentation at the 30th Annual General
Body Meeting.

As Amul was founded on a sound business model: providing quality products to consumers
at an affordable price. The Pundits have described our model as "value for money" and it
has been adopted by a number of companies. While imitation may be flattery, most other
organisations fail to understand that "value for money" is not just about low prices - it
means offering the best quality products at the most reasonable price. As a cooperative, our
faith requires that we safeguard the interest of both our major stakeholders the farmers - and
the consumers whose loyalty is essential to our continued success.
MILK PROCUREMENT

Total milk procurement by Member Unions averaged 51.13 lakh kilograms per day, a
marginal decline from 52.35 lakh kilograms per day, achieved in 2002-2003. However, the
good monsoons experienced during last year and the better procurement prices on offer are
expected to encourage higher milk production and procurement in the current year.

SALES

During the year, the sales registered a growth of 5 percent increase to reach Rs. 2,881.96 crores
including consignment sales of Rs.62.95 crores. The dairy line grew by about 18% despite the
loss of a sizable edible oil business. In 2019-20, the sale of Amul Milk in pouches increased by
34 percent in value terms. A notable development in the area of liquid milk in pouches has been
the successful launch of Amul Milk in the Delhi market during November 2003. Within under 60
days of launch, achieved sales of 1 lakh liters per day. UHT Milk has grown in both value and
volume terms by 60 percent, which shows that it has really come upon the high growth stage.
Despite intense competition, sales value of Amul Butter grew by 19 percent and that of milk
powders has firmed up further. The sales of the Amul Cheese range increased by 13 percent.
Products like Flavoured Milk, Amul Fresh Cream, Paneer, Mithaimate, Softy Mix, and fresh
curd demonstrated their potential to become dominant brands

DISTRIBUTION

During the year, the major development on the distribution front was 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 us to
develop synergies among all our product lines and to leverage these highways to introduce
and distribute new products as per market demand. I take pleasure in declaring that no other
organization in India has been able to develop this kind of channel synergy so far.

Another major initiative undertaken during the year was the Time-based Military Technique
(TMT) of distribution. This has been deployed to effect a nationally synchronized mass
distribution of products with the objective of achieving total channel penetration on a single
day. Most of our products launched or re-launched through this technique have seen
significant gains in distribution and availability.
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. It is conducted by your Federation to bring our channel partners face to face
with our 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. 95 Milk Area Distribution Agents also visited
Anand for Amul Yatra. Distributors have further enhanced their infrastructures in terms of
installation of cold storage arrangements, enhanced bank guarantee limits with Federation
and introduced good quality delivery vehicles. An objective evaluation was done in the form
of distributor renewal and Performance appraisal.

COOPERATIVE DEVELOPMENT PROGRAMME

During the last four years, Member Unions have implemented an Internal Consultant
Development (ICD) intervention focused on developing leadership among member
producers, helping them to better manage their dairy business.

During the year, Member Unions continued to implement the module on Vision Mission
Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives.
Facilitated by specially trained consultants, 1,073 Village Dairy Cooperative Societies
(VDCS) have conducted Vision Mission Strategy Workshops, and have prepared Mission
Statements and Business Plans for the next five years. The VMS module has prompted milk
producers to initiate activities at villages that have far-reaching effects on the milk business.

The success of the program has led to Member Unions focusing on implementing this VMS
module and developing Business Plans for all VDCS, thus strengthening them to face the
fierce competition ahead.

With the objective of encouraging professional management by Milk Producers and dairy
cooperative societies, Member Unions have initiated Members' Business Development
Programme (MBDP). During the last three years, 2,483 villages and 1,53,108 milk
producers participated in the programme. This has resulted in introduction of new scientific
animal husbandry management methods on a significant scale.
WHAT THE FUTURE HOLDS

As there is a steady increase in consumer expectations. Product and service quality is

rapidly becoming the minimum threshold for consumer acceptance. To achieve and
maintain competitive advantage, innovation in product design and delivery are increasingly
essential. Innovation must now define us as an organization.There must innovate at each
stage in our value chain - production, procurement, processing, marketing and branding.

Innovation can not be mandated or forced out of people. It is everywhere a function

of the quality of people and environment. Need to have enough skilled people working
in a self-actuating environment to produce innovation. In these times of increasing
market opportunities, to devise more effective ways of attracting and retaining skilled
human resources. It is to be realized that just as the market is expanding for our products,
so it is opening up new opportunities for the skilled people that we need to tap the
market. Further, it does not suffice merely to retain skilled human resources. It is also
necessary to provide them an adequately self-motivating work environment that draws
out the best out of them on a sustained basis.

From the year 1994, our unions have been engaged in the practice of third party validation
of its practices. Since then, we have been awarded the ISO 9002:2000, the HACCP, the ISO
14001 and similar marks of our excellence in milk procurement and processing. The
importance of standardization of our village society election processes lies in their 28
instrumentality in throwing up genuine and visionary leaders. It determines the future of the
cooperative movement.
THE BIRTH OF AMUL

Linked to the freedom movement of India.

Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen.

A Co-operative movement – member control on milk production, processing and marketing.

A humble beginning with two village societies and 247 litres of milk.

THE GROWTH OF AMUL

Co-operative movement spread like wild fire in the state. Rapid
increase in milk procurement.

Identification of Bombay liquid market.

Investing in manufacturing plants that produce milk powder, butter, cheese and condensed milk.

Launch of “Amul” as a brand.

 PRODUCT PROFILE

List of Products:

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

UHT Milk Range:

 Amul Taaza 3% fat Milk

 Amul Chocolate Milk

 Amul Fresh Cream

 Amul Taaza Double Toned Milk

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

Milk Powders:

 Amul Full Cream Milk Powder

 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 Double Toned Milk 1.5% fat

COMPETITORS OF AMUL:

MOTHER DAIRY

PARAS (VED RAM & SONS)

MADHU SUDAN

GOPALJEE (G.K.DAIRY)

PARAM

MOTHER DAIRY

Mother Dairy - Delhi was set up in 1974 under the Operation Flood Programme. It is now a
subsidiary company of a wholly owned company of the National Dairy Development Board
(NDDB).
Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives.
Mother Dairy sources fruits and vegetables from farmers/growers associations. Mother Dairy
also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the
Dhara range of edible oils by undertaking to nationally market all Dhara products. Mother
Dairy's constant endeavor to ensure that milk producers and farmers regularly and continually
receive market prices by offering quality milk, milk products and other food products to
consumers at competitive prices and; uphold institutional structures that empower milk
producers and farmers through processes that are equitable. At Mother Dairy, processing of
milk is controlled by process automation whereby state-of-the-art microprocessor technology
is adopted to integrate and completely automate all functions of the milk processing areas to
ensure high product quality/ reliability and safety.

Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization.
Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for
Testing and Calibration Laboratory (NABL)- Department of Science and Technology,
Government of India.
Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk,
Dahi, Ice Creams, Dairy Whitener and Butter), Dhara range of edible oils and the Safal range of
fresh fruits & vegetables, frozen vegetables and fruit juices at a national level, through it's sales
and distribution networks, for marketing food items.

Type of Milk Milk Fat SNF

Double Tonned 1.0% 9.0%

Full Cream 0.5% 8.7%

Skimmed 6% 9%

Amul Gold Milk

Amul Gold is Long Life standardized milk. It is fresh and only fresh milk, which has been
processed with a technology called UHT (Ultra High Temperature), hence also known as UHT
milk. Notwithstanding popular misconception, UHT technology does not involve any use of
preservatives. The UHT treatment ensures zero microbial activation, while preserving the
maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product
from air and light and guarantees a long shelf life of 180 days without refrigeration.

Amul Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for making sweet
dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for drinking straight
from the pack for kids and adolescents who simply love its creamy taste sans the
inconvenient cream layer! Amul Gold comes in convenient 1 liter and 500ml packs.
 SALES TURNOVER

Sales Turnover Rs (million) US$ (in million)

1997-98 11140 355

1999-00 13790 400

2000-01 15540 450

2001-02 18840 455

2002-03 22192 493

2003-04 22185 493

2004-05 22588 500

2005-06 23365 500

2006-07 27457 575

2007-08 28941 616

2008-09 29225 672

2009-10 37736 850

2010-11 42778 1050

2011-12 52554 1325

2012-13 67113 1504

2013-14 80053 1700

2014-15 97742 2172

2015-16 116680 2500

2016-17 137350 2540

2017-18 181434 3020

2018-19 220212 3203

2019-20 219080 3132

2020-21 25989 3324

2021-22 26766 3356

PEST Analysis

Political Factors:

The political factors in the Amul PEST Analysis of Amul.

Due to favorable political factors, the Amul company achieved a growth of 11.35% across their
operations units in Kolkata, Pune and Mumbai. The company focuses on developing long lasting
relationships with their milk producers by ensuring that they pay them higher prices. The
company has set its milk procurement operation in West Bengal under “Amul Pattern”. This has
resulted in significant progress to the socio-economic conditions of the members of the
producer’s community. In Maharashtra, Punjab and Gujarat the company has established and
maintained new milk societies. The union has established milk societies outside Gujarat under
“Anand Pattern”. They provide high quality feed and veterinary services  to the cattle owned by
the milk producers of such societies. For the international dairy industry, the latest years have
been quite difficult due to import and export hurdles faced in Russia. Lower demand for dairy
products in Chinese market, other upheavals in European countries and product regulations
leading to lower level of demand in Germany has proved to be a barrier in company’s growth. If
the Amul company receives adequate support from the State as well as the Union level then by
adopting latest technologies, they would be able to achieve one of the highest rate of
procurement and progress the company name to a successful level.

Economic Factors:
The economic factors in the PEST Analysis of Amul:
In many countries Amul has received significant benefits in terms of lower milk procurement
rates by almost 30 to 60 %.

This further benefits the company in terms of reduction in the price of its products such as milk
powder and butter by 30%. The price of the milk powder in India improved substantially from
Rs.130 to Rs.150 which affected the milk procurement prices by Rs.4 to Rs.5 per litre. The
national as well as the international markets are facing recessionary conditions. Increase in
transportation costs can significantly affect the ability of the company to deliver its products to
the end consumer. In the year 2019 an increase of 11.24%, in milk procurement costs and an
increase of 14% in Diesel costs lead to an increase in milk transportation costs for Amul. During
the same year there was an increase in Interest and Bank Commission by approximately 10%.
Social Factors:

Following are the social factors impacting Amul PESTLE Analysis:

The individual buying decision is mainly the output of social factors like culture and society.
Friends, peer groups, families, reference groups can have a major influence on the consumption
pattern and buying behavior of the consumer. Amul has taken advantage of these factors and has
successfully targeted women and children. It has created a strong and vital presence in the dairy
segment. Vegan lifestyle is being increasingly adopted by a large number of consumers. Increase
in the number of vegans would negatively influence the dairy industry as the lifestyle itself
doesn’t permit consumption of dairy products obtained from animals. The overall picture for the
company looks in a beneficial position as the Indian households are more accustomed to morning
tea and the people are in general more accustomed to milk and milk products. The culture of fast
food also promotes a certain type of lifestyle that increases the consumption of ice creams.

Technological Factors:

The technological factors in the PEST Analysis of Amul:

Amul as global brand, understands the need to invest in different technologies and updating the
current technology as well in order to capture as well as retain the current customers. The brand
has invested 600-800 crore, in the current fiscal year for setting up new milk processing plants.
The company has also invested in order to expand the capacity of the existing units as well. The
entire industry in general in adapting to a variety of latest technology that helps in supervising
the productivity of milking animals and dairy farmers. The idea is to identify any faulty practices
and take corrective steps in order to meet the market demand.
Marketing Mix Strategy of Amul

Marketing Mix of Amul focuses on 4Ps Product, Place, Price, and Promotion. Marketing Mix is
a framework which helps Amul to decide its Product, Price, Promotion and Distribution Strategy.
Amul is definitely an “Amoolya” brand. Amoolya in Hindi means something which is invaluable
or priceless. Amul has marked its presence in almost every corner of the country. Every product
that is made of Milk is made of Amul Product. Due to an aggressive marketing strategy, Amul is
able to create a good brand image. Amul is able to win the hearts of the Indian people. Amul is
known to be a highly valued brand with an Indian origin. Amul was formed in 1946 to stop
middlemen exploitation. It is a brand of the Gujarat Cooperative Milk Marketing Federation
(GCCMF). Amul was formed because of a revolt of dairy farmers. Most of the leading Milk and
Milk Product Manufacturers are competing with Amul. But aggressive marketing strategy has
made Amul the number one player in the dairy industry and it is also said that the Marketing Mix
of Amul has made it a number one player. In this article, we will analyze the Marketing mix of
Amul.

Product in the Marketing Mix of Amul – Amul Product Strategy

Amul has a strong product portfolio. Amul product range consists of Dairy products. Some of
the Cash Cow Products are Amul Gold Milk, Amul Dahi, Amul cheese, Amul butter, and Amul
Ice cream. Amul ice cream is ranked among the top 5 brands of the country.

Consumption of Amul Paneer, Amul Milk, and Amul Dahi is increasing day by day. Amul holds
a market share of 26.2% in the packaged milk product segment. Amul Chocolates are good in
taste and also preferred by a large population of the country.
Some of the Amul Products are:
Amul Milk
Amul Gold Milk
Amul Milk powders
Amul Cheese
Amul Kool and its variants
Amul ice cream
Amul Dahi
Amul Paneer
Amul Ghee
Amul mithai mate
Amul Nutramul
Amul chocolates
Amul Masti
Amul Buttermilk
Amul Flavoured Milk
Amul Shrikhand
Thus the product portfolio of Amul is constitutes of Milk and Milk Products. The main
competitors of Amul are Dinshaws, Vadilal, and Havmor, Mother Dairy, etc. in the ice cream
segment. In the milk segment, Amul is competing with Sanchi Dairy, Mother Dairy, Britannia,
etc.

Price in the Marketing Mix of Amul – Amul Pricing Strategy

Amul has a competitive pricing policy. Some might call it penetrative pricing. But a penetrative
pricing approach is used where the market has a high degree of competition and the player seeks
to position himself on the market by providing products at lower prices. However in the case of
Amul, when Amul launched, there were no national players and the dairy industry was
unorganized. During the phase of launch itself, Amul had a goal to provide end-customers with
their goods at the most reasonable prices. And the same vision is still in place today.
Today also, you will find that Amul butter, milk, and cheese are available at affordable prices
keeping in mind the end customers. You may call these products costly, but the cost has nothing
to do with Amul’s strategy. Remember that transportation costs, as well as storage and
distribution costs, are very high in FMCG. Thus, as the cost of transportation, storage, and
distribution has increased over the years, so has the cost of Amul products gone up. But
considering their value for the average Indian consumer, these products are still priced at an
affordable rate. Amul butter is preferred by a large population of the country because of its taste
and aggressive and informative advertising strategy of Amul. Amul is no. 1 brand because of this
pricing strategy.

Place in the Marketing Mix of Amul  – Amul Distribution Strategy

Amul has a large distribution network because its ice creams, milk, cheese, and butter are found
nearly everywhere. Amul distribution strategy is one of the best distribution strategies of its kind.
As it is an FMCG commodity, Amul practices the process of splitting the bulk. The initial
production of the plant is in bulk. Later on, this volume gets smaller and smaller, and then a
single slab of butter or ice cream is sold at the store site.
There are two separate networks by which Amul Delivery takes place. One is the distribution
channel responsible for the collection of milk by dairy cooperatives. The other is the sales system
responsible for delivering the finalized product to end-users.
In the procurement channel, the milk is acquired separately from farmers and transferred to
cooperatives. The cooperatives then gather all this milk and give the bulk to the Amul
manufacturing plant. Milk is used at the production plant to produce the finished goods.
Agents, manufacturers, suppliers and retailers are interested in the sales channel. There are also
Amul shoppers who sell all the product in the Amul portfolio.
Structure of Distribution channel is as follows:
Amul Manufacturing Unit >>> C & F agent >>> Distributor >>> Dealer / Amul Outlets /
Retailer >>> Customer
Amul >>> Modern retail

An Amul product goes through a lot of transportation. Distribution channel of Amul is such that
its product reaches every corner of the country in the desired time.

Promotions in the Marketing Mix of Amul – Amul Promotion Strategy

Amul Girl is the center of attraction in the Promotion mix of Amul. Famous Amul girl was a
creative idea of Mr. Eustace Fernande. Amul hoardings primarily feature recent happenings.

The promotions of Amul are mainly for butter but for all the other products there are hardly any
promotions. During the launch of products, Amul is known to go above the line and advertise
milk, butter, etc. But overall, the main advertisement is below the line through outdoor, trade
promotions, discount schemes and sales promotions.