Case Studies/ Use cases / Caselets
1. The Product Life Cycle Simplified using Amul Products
Since more than a thousand years ago, we have lived in a consumerist civilization,
Products, are, of course, one of the foundations Supporting materialism and the
“more is good” mindset. Items are being made, sold, marketed, traded, and even
thrown away everywhere you look or go, and milk is one of them: Inthe article,
‘we will discuss about the product life eycle of amul ina detailed case study,
INTRODUCTION TO PRODUCT LIFE CYCLE OF AMUL
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‘Since more than a thousand years ago, we have lived in a consumerist civilization.
Products are, of course, one of the foundations supporting materialism and the
“more is good” mindset. Items are being made, sold, marketed, traded, and even
thrown away everywhere you look or go, and milk is one of them,
With a capacity of 115 million tonnes, India produces more milk than any other
country. Milk consumption in India is still increasing, driven by stable population
growth and increased wealth. The dairy industry is now expanding at a volume.
based yearly growth rate of about 7%. The dairy market in India is estimated to be
worth $45 billion. Considering that most people in India are vegetarians, milk
plays a significant role in the daily diet. Indians use milk in various preparations,including creating yogurt or curd, boiling tea and coffee, and cooking a wide
variety of Indian meals.
The majority of milk products are eaten fresh, But in recent years, the demand for
labeled packaged foods has grown. Even though India processes just around 2% of
its food, the dairy industry nonetheless undergoes the most processing (35% of the
country’s total production, of which only 13% is done by the organized dairy
sector).
SHORT STORY OF AMUL
THE BIG BOYS
Led by Amol, all leading players inthe organised dairy industry
have been growing at 3 fast clip
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India’s dairy cooperative movement, AMUL (Anand Milk Union Limited), was
established in 1946. It is a brand name administered by Gujarat Co-operative Milk
Marketing Federation Lt. (GCMMP), the top cooperative organization in Gujarat,
India. It is now under the control of almost 2.6 million milk farmers.
AMUL, which has its headquarters in Anand, Gujarat, is a prime example of a
cooperative business that succeeds over the long haul. It is among the greatest
instances of cooperative success in a developing country.Yocludiing annual sales of US $1050 million, Amul is the leading food company in
Andia and the leading brand of pouched milk worldwide (2006-07), Currently,
10.16 million litres of milk are collected each day on average by Amul's 2.6
million producer members. Aside from India, Amul has expanded into foreign
markets such as Maur
the United Arab Emirates, the United States,
Bangladesh, China, Australia, Singapore, Hong Kong, and a handful of South
African nations. It failed in its 1994 attempt to break into the Japanese market, but
it now has new ambitions to flood it, Sri Lanka is among the additional possible
markets thought of.
‘Amul has a new objective now that it has reached the historical record of Rs. 6,700
crores. Mission 2020 was announced by Federation Chairman Parthi Bhatol. In the
year 2020, the Gujarat dairy cooperative is projected to generate total revenue of
Rs. 27,000 crores. Additionally, they plan to increase the dairy plant’s production
capability to 20.7 million kilograms each day.
STAGES OF THE PRODUCT LIFE CYCLE OF AMUL
‘Throughout a product's existence on the market, it goes through many stages. Each
of the product lifecycle stages presents its difficulties and possibilities.
‘Throughout the life cycle of a product, profits fluctuate. The product life eycle of
Amul has four distinct stages, including
Stage 1: Introduction stage in product life cycle of amul
‘That the very first farm, Kaira District Co-operative Milk Producers’ Union, was
founded in the Gujarati district of Anand in 1946, It produced Amul in 1955 and
transferred ownership of the brand name to GCMMF in 1973. Since farmers in
‘Anand sold all of their milk through a cooperative union, it was customary to
‘market the product under the AMUL brand. At first, just 250 liters of milk per day
‘were obtained, However, milk collecting grew as people became more aware of the
advantages of cooperation. When compared to the per capita milk supply, milk
output increased by only 1% year between 1955 and 1970
Stage 2: Growth
By 1980-81, 53.9 million metric tonnes of Amul milk had been produced, and in
1990-91, 84.6 million metric tonnes had been produced. ‘The yearly growth rate
during Operation Flood’s initial phase was 4.08 pereent. In the second phase, itwas significantly higher (7.85%), while in the third phase, output grew at a rate of
5.05% annually.
Dairy consumption in India has grown from a low of 112 grams per day in 1968—
1969 to over 226 grams per day in 2002 resulting in a significant increase in milk
output. Amul produced new products such as Amul milk gold, Amul moti, Amul
chai maza, and Amul thin trim in response to increasing competition from
companies like Nestle, Mother Dairy, Britannia, Amul taza and Gokul.
Stage 3: Age of Maturity
One of India’s most recognizable brands is Amul, It is the first and only
organization in the world to have its farmer cooperatives certified to the ISO 9000
standard. Amul now collects 11 lakh liters of milk every day. It is now the most
popular pouch milk brand in the world. With $2 billion in revenue, the brand is as
‘well-known in India as Coca-Cola, and most recently, Amul Milk has expanded
into foreign markets including Mauritius, the United Arab Emirates, Oman, the
United States, Bangladesh, China, Australia, Singapore, Hong Kong, and other
South African nations. Gujarat and every one of India should be happy that Amul
Dairy is currently No. | in Asia and also no. 2 in the globe.
Stage 4: Reduction
‘The stage of reduction occurs when a product deteriorates and expires. Amul milk
withstood the “mozzarella-like milk” issue and did not allow the product to
degrade. Additionally, very few additional Amul products have reached the point
of decline and have had manufacturing halted.
EXAMPLE OF AMUL BUTTER LIFE CYCLE,
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‘Amul butter has reached maturity as of right now. ‘Amul Butter is undoubtedly
‘earning big profits at this time since it is the most lucrative, with an overall market
share of 86%. Sales are growing, but more slowly, and there is a great deal of
awareness, which means there is less need for promotion.
“The brand-building strategy used by AMUL to develop its present brand image and,
iltimately, its brand equity is better-understood thanks to the already mentioned
fifecycle, Its specific product’s life eycle illustrates the ongoing brand-building
activity that is necessary to preserve its current reputation,
But to examine the product's life cycle more thoroughly, we must establish a
Connection between the acceptance of Amul butter by users.
EXAMPLE OF AMUL ICE CREAM LIFE, CYCLE
Gujarat welcomed Amul Ice Cream on March 10. 1996. Ice cream sticks, cones,
and cups were among the impulse purchases in the ‘portfolio, along with take-home
packs (tetra packs) and systemic packs. The Real Milk system served as the
Taunchpad for Amul’s ice cream, Real lee Cream has 2 ‘competitive advantage over
rivals since it is a milk firm ‘and its goods are healthy.a
‘Amul ice cream made its debut in Mumbai in 1997, followed by Chennai in 1998,
Kolkata in 2002, and Delhi in 2003, Nationally, with its implementation in 1999
throughout the nation. It defeated rivals like Wall's and Mother Dairy to take the
top spot in the nation. This position was attained in 2001 and has remained at the
top ever since. It has not only expanded at an incredible rate, but it has also
expanded its already expansive flavor selection. There are currently 220 goods
available for selection. Ice creams have benefited from Amul’s continued
innovation of its products.
SUCCESSFUL MARKETING oF AMUL PRODUCTS
‘The buffalo is the favoured dairy animal. India produces over 65% of the world’s
buffalo milk. The worth of its high amount of fat is 7% compared to a cow's 3.5%,
‘Additionally, it has a lot of proteins, lactose, calcium, and phosphorus. The dairy
industry prefers buffalo milk because it is easy to handle and offers profitably.
‘Amul is a symbol of the belief in the farmers’ potential to end the cycle of poverty
‘and bring about a socio-economic transformation in rural Areas. The farmers
showed the world the secret to effective “Management Of Development” through
the “Anand Pattern.” Anand Pattern is a revolutionary three-tiered framework that
unites diligent farmers with skilled management and cutting-edge technology.
‘Amul has slowly and steadily increased the scope of its national distribution
system. There are now 3,500 wholesalers for value-added milk products and 1800
dealers for fresh milk to guarantee that Amul items are accessible to all consumer
groups in India through much more than 20 lakh outlets. In several Indian towns
and cities, GCMMF has increased the size of its network to over 4,000 parlours,
Structure of the Company
‘Amul uses a very distinct structure, also known by the name ‘Anant Style’
cooperative framework. Now, this structure works on a three-tier model,
«Village Cooperative society: In this, every manufacturer is a member of the
cooperative village.
«District Unions: Villate cooperative society, elects their own representatives
in their unions
«State milk federation:This federation is responsible for the distribution and
sale of milk in the stateProduct Strategy of Amul
Amu! follows a low-cost marketing strategy targeting volumes. Hence Amul has a
‘mass target audience it tries to tap into while keeping its prices low.
So, even if we look at the products from a customers angle
+ Kids: Chocolate, Amul Kool, Amul milk
+ Youth: Amul Pizza cheese, Cheese spread
+ Health conscious: Amu! shakti, Amul lite butter
Marketing Campaigns of Amul
Amul has managed to keep its brand awareness simple yet highly effective. As
soon as we see the gir] with a bread image, we know it is Amul.
However, what you might not be aware is that this brand image was in made
response to the butter girl campaign by its rival.
‘Also, the Amul butter campaign is now officially the longest-running campaign in
the world.
CONCLUSION
Amu! has gained widespread recognition as a result of its dominance in the dairy
product industry. AMUL is among the most prosperous corporate organizations,
and other corporations should take a cue from Amul on how to do business
ethically. Amul utilizes just 1% of its revenue for promotions. It demonstrates that
‘when you are inventive and it is not necessary to invest millions in marketing.