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Marketing Mix and Strategy of Amul (1) (1) - 2
Marketing Mix and Strategy of Amul (1) (1) - 2
BHUBANESWARE, ODISHA,
2023-25
Certificate
This is to certify that thesis entitled “ The Marketing Mix strategy of AMUL” being
submitted to the faculty of Management, Centurion University Technology and
Management is a bonafide work of Bighnesh Panda , Rajashree Paikaray, Avipsa Patra ,
Chinmayee Sahoo , Sibasoni Devi, carried out under my / our supervision , is in accordance
with the standards prescribed by the University for the award of the drgree of Master Of
Business Administration of this university. It is to further certify to the best of my / our
knowledge , that this work has not been submitted earlier in this institute and the university or
elsewhere for the award of any degree.
SIGNATURE-
HEAD OF THE DEPARTMENT / DEAN OF THE SCHOOL
DEPARTMENT SEAL
DECLARATION
I heard declare that the Thesis entitled “The Marketing Mix strategy of AMUL” submitted for
the Master Of Business Administration is my original work and the project has not formed the
basis for the award of any Degree or any other similar titles in any other University / Institute .
Rajashree Paikaray(230402100014)
Place : Bhubaneswar
Date
ACKNOWLEDGEMENT
I wish to express my profound and sincere gratitude to Prof. Dr. Chinmayee Kumar Dash ,
School of Management , CUTM , Bhubaneswar Campus , who guided me into the intricies
of thesis nonchalantly with matchless magnanimity.
I am highly grateful to Dr. Chinmayee Kumar Dash who evidenced keen interest and
invaluable support in the progress and successful completion of my thesis work.
I am indebted to my friends for their constant encouragement, co- operation and help.
Words of gratitude are not enough to describe the accommodation and fortitude which they
have shown throughout my endeavor.
Rajashree Paikaray(230402100014)
Place : Bhubaneswar
CONTENT
Introduction
Company Background
Market Analysis
Product Quality
Brand Image
Feature Outlook
Conclusion
References
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Introduction :
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TYPE: Cooperative
FOUNDED :1946
WEBSITE: WWW.AMUL.COM
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OBJECTIVES
4.To know how effectively “AMUL” can manage its critical area and to know
knowledgeable facts about company “AMUL”.
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COMPANY BACKGROUND
When Dr. Kurien returned to the newly independent India in 1949, he was sent by the
government to a run-down creamery at Anand, Gujarat, to serve as an officer in the
Department of Dairy.
There he met Tribhuvan as Patel, a freedom fighter who sought his help to set up a co-
operative to purchase the milk brought by nearby farmers. There, Kurien set up the Kaira
District Cooperative Milk Producers’ Union Limited (KDCMPUL), which is today known as
Amul.
The Amul model has helped India to emerge as the largest milk producer in the world. More
than 15 million milk producers contribute their milk in 144,500 dairy cooperative societies
across the country. Their milk is processed in 184 district co-operative unions and marketed
by 22 state Marketing Federations, ensuring a better life for millions.
MISSION STATEMENT
GCMMF endeavour to satisfy the taste and nutrition requirements of the customers, of the
world through excellence in marketing by their committed team. Through co-operative
networking, they are committed to offer quality products that provide best value for money.
VISION STATEMENT
“Amul’s vision is to provide more and more satisfaction to the farmers, their customers,
employees, and distributors.
Market Analysis:
India is the world leader in milk production with total volume of 115 million tons. Driven by
steady population growth and rising income, milk consumption continues to rise in India.
Dairy market is currently growing at an annual growth rate of around 7 per cent in volume
terms. The market size of Indian dairy industry stands at around US$ 45 billion. Since India
‘s population is predominantly vegetarian; milk serves as an important part of daily diet.
Indians use milk in various preparations such as in brewing tea and coffee, in making yogurt
or curd and in preparing many Indian dishes. For most households, milk is also a popular
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beverage due to its nutritional value. In India, rural households consume almost 50 percent of
total milk production. Of the share of milk sold in the domestic market, almost 50 percent is
consumed in fluid form, 35 percent is consumed as traditional products (cheese, yoghurt and
milk-based sweets), and 15 percent is consumed for the production of butter, ghee, milk
powder and other processed dairy products (including baby foods, ice cream, whey powder,
casein, and milk albumin). Most dairy products are consumed in the fresh form and only a
small quantity is processed for value addition. In recent years, however, the market for
branded processed food products has expanded. Although only around 2 per cent food is
processed in India, still the highest processing happens in the dairy sector, where 35 per cent
of the total produce is processed, of which only 13 per cent is processed by the organised
sector
Amul is one of the very old Indian companies, which has made its mark since 1946. Now
GCMMF has become the largest exporter of dairy products across the world. Amul was built
up in 1950 with the revolution of dairy agriculturists who were inspired by the independence
of India.
In any business, there are several companies & brands which compete by offering similar
products & services.
For any company to thrive, it is not only important for them to improve their own products,
but to also look at what their competitor is offering.
Quick Glance:
1. Britannia
2. Nestle
3. Mother Dairy
4. Cadbury
5. Baskin Robbins
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6. Kwality Walls
7. Danone
8. Del Monte
Target audience
Amul operates on a three-tiered business model federated at the village, district, and state
levels. It provides cost-effectiveness and ensures that farmers will maintain their interests. It
had a significant impact on the Indian economy and made substantial changes through the
White Revolution.
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Amul has a broader target audience, from a toddler to aged people. It caters to the widest
range of products, like Amul milk, buttermilk, lassi, butter, cheese, milk powder, etc., for
every social group and member of society by keeping their best interests in mind to meet their
needs at an affordable price.
Over many years, Amul has proved to be a household name in every aspect: price, quality,
social work, etc. Here are some marketing techniques that helped it sustain itself throughout:
In the initial years, Amul was only known for milk, but over some time, Amul expanded its
product reach and diversified its products to customers’ needs and wants. It has introduced
products for different age groups.
For toddlers and children, Amul introduced products like milk powder, butter,
flavoured milk, etc.
For the age group 10-20, it introduced bread spreads like pizza cheese, cheese
spread, chocolates, etc.
For people 20 and above, it introduced all products related to dairy like Amul
Dahi, lassi, buttermilk, and many more.
This diversification helped Amul gain trust and build regular customers over some time.
Product Quality
Amul has always believed in value for money quality with the affordability concept, by
which it has created products of good quality. Quality products build trust in consumers and
make them regular and valuable customers of an enterprise. Amul has gained immense love
and valuable customers by providing quality products.
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Networking Strategy
Networking is another important aspect of marketing strategies. A product cannot be made
and reach the targeted audience without the correct network. Amul has created a vast network
that provides a strong base for the company and is beneficial. Amul’s network includes
contacting dairy farmers for their supply and setting up Amul’s stores in every district,
efficiently catering to the consumers’ needs.
Advertising Strategy
Advertising is essential to reach the target audience. Before, TV was the only source of
entertainment. But now, Amul has cut down on its TV ads and continues to advertise online.
The Amul Girl was a hit during the early stages of its growth and is still the face of the
company. Amul’s ad campaign is considered the longest-running ad campaign till now and is
recorded in the Guinness Book of Records.
Product portfolios
PRODUCT RANGE:
Amul produce a large range of milk products . These products individually cover the
largest market share of dairy industry.
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Dahi – Masti Dahi, Probiotic, Flaavyo ,
Ghee – Amul Ghee, Sagar Ghee, Amul Yello ghee
The first time that most of us came across Amul was when the catchy tune of ‘Amul Doodh
Peetha Hai India’ rang from the television. Though many of us were really young at that
time, ever since we grew up, whenever we encounter some variation or the other of the same
tune, it never fails to evoke a melange of memories.
Anand Milk Union Limited., also known as Amul, is a well-known brand that has been a
household name in India for several decades. Founded in 1946, Amul is a cooperative society
that has been successful in marketing a range of dairy products across the country. From milk
to butter, cheese, and ice cream, Amul has an extensive product portfolio that caters to the
diverse tastes and preferences of its customers. Amul is still a market leader when it comes to
dairy products. Amazing, isn't it?
The answer is the quality of the Amul products, their innovation, and no doubt its innovative
marketing strategies that have helped the brand establish a strong presence in the market.
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Amul's advertisements, which are often humorous and catchy, have been a hit among
consumers and have helped the brand gain a loyal customer base.
When the Covid-19-induced lockdown marred many companies and disrupted their
marketing strategies, sales and revenues, Amul managed to come up with a turnover of Rs
53,000 crore. Furthermore, the brand also successfully added 60 new products to its inventory
along with donating Rs 800 crore to the rural farmers. Amul in 2022, is aiming to clock Rs
60,000 crore and is eyeing to achieve the Rs 1 lakh crore mark in sales by 2025.
In this blog, we will take a closer look at the marketing strategies that have helped Amul
become one of the most successful dairy brands in India. We will delve into the brand's
history, Amul's advertising strategy, Marketing Mix, STP Analysis, Pricing Strategy &
more. Whether you are a marketing enthusiast or simply curious about the strategies behind
Amul's success, this blog will provide you with a comprehensive overview of Amul's
marketing journey.
Amul's digital marketing strategy has been nothing short of spectacular and the brand has seen
phenomenal growth in recent years. The traditional marketing of Amul through its moment
marketing strategy made the best use through social media platforms like Facebook,
Instagram, and others, while not having as much of a presence on television commercials as it
formerly had.
Amul stands out as a national icon not only because of its good marketing strategy but also,
with the exclusive Amul shops and distribution centers that it has opened across India.
The company has thus been able to reach out to customers directly, giving them easy access to
its products. This has helped to increase its customer base substantially over the years.
BRAND IMAGE
They work superbly in choosing a drifting subject and make an ad about it. Through different
advertisements, they have frequently raised voice against issues, which are generally not
considered important in FMCG product advertising.
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In 1966, AMUL recruited Sylvester da Cunha to design an ad campaign for Amul
Butter. DaCunha created a series of hoardings with different ads on it related to
daily issues. The campaign became famous and earned a Guinness World Record
for the longest-running advertisement crusade in the world.
The Amul Girl is the public mascot for the promotion of the brand. AMUL has
been keenly utilizing the cartoon figure in its longest-running advertisement
crusade. The main motive of using this cartoon figure for each and every print ad
is to add a pinch of humor to it. The Amul Girl is capable of commenting on
touchy subjects without offending anybody, whenever something happens; people
wonder “what will the Amul Girl say?”
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CHALLENGE AND SOLUTION
Problems and issues with respect to supply chain faced by the AMUL
Managing this supply chain efficiently is critical as GCMMF's competitive position is driven
by low consumer prices supported by a low cost system. In the past years the concept of just-
in-time was not introduced, all GCMMF branches were engaged in route scheduling and have
dedicated vehicle operations. Even though the cooperative was formed to bring together
farmers, professional managers and technocrats would be still required to manage the
network effectively and make it commercially viable. It is worth noting that a number of 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
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of a perishable commodity where there are already weaknesses in the basic infrastructure. Its
network which consists of large number of members requires regular roll out +
improvement programs and high implementation rate of these programs. Having a strong
supply chain is only the beginning, the remaining part includes making consumer products
that sell well and that the same consumers are able to be impacted by marketing and
advertising movements. The organization was also suffering from the high middleman cost
which was tackled by managing milk supplies from the cattle farmer and sending it straight to
the factory. Due to the perishable nature of the product, it has to invest in cold storage which
is an extra burden in distribution and warehousing. At the time Amul was formed; consumers
had limited purchasing power, and modest consumption levels of milk and other dairy
products. Thus Amul adopted a low-cost price strategy to make its products affordable and
attractive to consumers by guaranteeing them value for money. In addition to the weaknesses
in the basic infrastructure, logistics and transportation services are typically not
professionally managed, with little regard for quality and service. 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
Amul Marketing Mix
The Amul marketing mix has combined all the elements of marketing strategies to create a
comprehensive framework that can easily influence consumers in purchasing Amul products.
The Amul brand has become a household name thanks to the Amul business model and
the marketing strategy of Amul which has managed to create a successful bridge between
the company and the Amul Shoppers.
Amul’s marketing mix puts the focus on moment marketing strategy, product innovation,
Amul product portfolio, Amul distribution strategy, pricing strategy, umbrella marketing
strategy, Amul digital marketing strategy and famous Amul girl campaigns to create
brand awareness in the market.
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Quality Amul products like Amul Dairy Milk, Amul Paneer, Amul Cheese Spread, Amul
Gold Milk, Amul Butter, Amul Dahi, Amul Chocolates, Amul Milk Powder and Amul Ice
Cream are an integral part of Amul portfolio through which Amul managed to create waves
in the dairy industry.
Amul is the biggest dairy processor in India with diversified and vast product offerings. The
marketing mix of Amul puts the focus on the taste, quality and affordability of Amul products
which is unbeaten in the Indian market. This is why the company is growing by leaps and
bounds and achieving new landmarks day by day.
AMUL BUTTER
AMUL LITE BUTTER
DELICIOUS TABLE MARGARINE
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AMUL GOLD MILK
AMUL FRESH MILK
AMUL FRESH CREAM
The marketing mix of Amul includes a variety of cheese ranges that can be eaten with
sandwiches, nans, roti, paratha and bread.
AMUL SRIKHAND
AMUL MITHAEE GULAB JAMOON
AMUL BASUNDI
NUTRAMUL
AMUL SHAKTI WHITE MILK FOOD
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Amul Chocolates
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Place in the Amul Marketing Strategy
The state-owned Amul cooperative Society is managed by GCMMF and controlled by milk
unions from 13 districts and 3.6 million milk producers spread across 13,000 villages in
Gujarat. Amul operates with help of two divisions Banas Dairy and Dudhsagar Dairy and has
spared its operations and product portfolio to every part of India as well as several overseas
markets.
The marketing mix of Amul puts focus on distribution strategies and distribution channel so
that all Amul products reach the end consumers easily.
Acquisition Strategy
Amul acquisition strategy includes buying raw materials or milk directly from villagers and
dairy cooperatives and sending it to the Amul manufacturing unit.
Distribution Strategy
Amul Manufacturing Plant >> Carrying & Forwarding Agents >> Distributors >>
Dealers >> Retailer >> End Customer
Amul’s Distribution strategy includes transferring the finished Amul products from the Amul
manufacturing plant to the distributors, dealers and retailers with help of carrying and
forwarding agents so that they can reach the end customers through retail outlets.
Amul caters to the middle and economic class of society and hence has adopted a pricing
strategy for which the customers are willing. Amul started its journey when there were no
other national players in the field as an affordable dairy brands. Even after so many years, it
has maintained its pricing strategy and position in the Indian market.
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The low and reasonable product price has been advantageous for the company in
earning brand loyalty from its customers and increasing its customer base day by day.
Amul has segmented its product offerings based on demand. The products that are used daily
and have a huge market share like Amul Butter, Amul Lite Butter, Amul Ghee, Amul Gold
Milk, Amul Paneer and Amul Dahi are offered at lower rates compared to the competitors
and niche products like milk powder, Amul Spray and Amul Prolite are priced based on
competitor’s prices.
Marketing strategy of Amul has adopted the following pricing strategies for its vast product
offerings
Amul faces stiff competition from domestic and international brands in several product
categories. The marketing strategy of Amul has adopted a competitive pricing strategy to
minimize the impact of rival brands and gain a competitive advantage in the market.
As the brand targets the middle-class section of society, the marketing strategy of Amul has
adopted a reasonable pricing policy so that its target audience can afford the products easily.
The marketing mix of Amul has focused on its promotional activities with help of branding,
the Amul Girl mascot, hoardings and digital campaigns. Amul does not spend too much on
promotional activities as the advertising costs are within 1% of the total brand revenues.
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for Amul Butter with the tagline “Utterly Butterly Delicious”. One has to hear her singsong
voice or look at the hoardings to associate her with Amul.
Tagline
Amul is associated with several taglines like “Pehla Pyar Amul Pyar”, “Har Ghar Amul
Ghar”, “Amul Doodh Peeta Hai India” and “Taste of India” that remind the viewers of the
brand in an instant
Amul’s advertising strategy uses digital marketing to advertise the products and the brand
through social media platforms like Twitter, Instagram, Facebook and YouTube.
Amul Hoardings
Amul Hoardings with the Amul Girl as its mascot has been a hit with the masses since the
beginning. Amul has gained the upper hand over other brands because of high brand visibility
due to these hoardings which have been placed at almost all strategic locations all over India.
Amul has been using this strategy first in newspapers and now on social media platforms
to boost brand awareness. It takes the help of current trends and events to start relevant
conversations with the customers and build a viable bridge between them.
The Amul website has more than 960,000 visitors monthly with most of the traffic generated
because of branded queries. As it enjoys a domain authority of 59 as soon as a new page is
published Google quickly ranks it because of high authority.
Taste of India
Ad campaigns like “Taste of India” has helped the brand to position itself strongly in the
minds of the consumers as a family product necessary for every household.
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Utterly Butterly Delicious
The Amul Girl’s first advertisement was the ad campaign “Utterly Butterly Delicious”. It was
created in reply to the Butter Girl of the rival brand Polson and today it has become the
symbolic face of Amul.
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Feature Outlook
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk products
under the Amul brand has identified 6-8 new categories to help drive its ambitions of growing
over 20 percent over the next few years, Amul’s new Managing Director Jayen Mehta told
CNBC-TV18 in an exclusive chat. These categories include some of its recent forays such as
protein, probiotics, Organic food products, among others.
“At the current rate, if our turnover is about $9 billion, we need to identify multiple billion-dollar
categories to grow amidst the kind of opportunity that exists,” Mehta said.
One of Amul’s larger focuses is the category of protein, where Mehta says, the company has a
large advantage. India currently imports over Rs 10,000-15,000 crore worth of whey protein – raw
material for protein – and Mehta says as the largest manufacturer of cheese and paneer in India,
GCMMF has close to 25-30 lakh litres of cheese whey every day at its disposal.
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Conclusion
Amul dominat presence in the dairy foods market has led to Amul becoming a household
name. AMUL is one of the most successful business houses and other companies should
learn from Amul how to do its business in a socially responsible manner .In fact Amul
uses only 1 percent of its turnover for promotions .This shows that it is not always
necessary to spend millions on promotion when you have creatively.
Amul has truly ruled the heart of the Indians and continues to do so even now with its
overwhelming products and its simple, yet memorable and effective marketing
strategies. The brand's focus on quality, affordability, and innovation has helped it grow
and establish a strong presence in the market.
As a fun fact, Amul has produced more than 1500 hours of content within the 1% of its
marketing budget allotted in 2020 whereas, on the other hand, companies like Netflix
spent more than INR 1 lakh crore. This is more than impressive, isn't it? However, all that
is to be credited is Amul's exceptional branding and marketing efforts along with the no-
compromise attitude in terms of quality that the brand has firmly stuck to!
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References
www.amul.com
www.gcmmf.org
www.indiandairy.com
www.nddb.com
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