A

Term Paper Report

On
A STUDY ON THE MARKETING STRATEGY OF AMUL

For The Partial Fulfillment Of The Requirement For The Award

Of
Bachelor of Business Administration(BBA)Semester II, Class of
2022-25

Under The Guidance & Supervision Of:

PROF. K. SATYANARAYANA RAO

Submitted By
PUNEET PATEL
A30606422071

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 DECLARATION
Title of Term Paper Report:

A STUDY ON THE MARKETING STRATEGY OF AMUL

I declare that the work presented for assessment in this Term Paper is
my own,

that it has not previously been presented for another assessment and
that my debts (for words, data, arguments, and ideas) have been
appropriately acknowledged.

The work conforms to the guidelines for presentation and style set out
in the relevant documentation.

PUNEET PATEL
Date: 27/07/23
Hyderabad

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 Faculty Guide Certificate

This is to certify that Mr.Puneet Patel student of the semester II class

of BBA 2022-2025 has completed the Term Paper Titled “A Study on
Marketing Strategy of AMUL” It is bonafide work and has worked
under my guidance sincerely for the partial fulfillment of Bachelor of
Business Administration for the year 2022 – 2025 to the best of my
knowledge and wish him success for the future endeavors.

Prof. K. Satyanarayana Rao

Date: 27/07/23
Hyderabad

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 Acknowledgments
My heartfelt sincere Thanks to Dr. P. Prasada Rao, Director General,
Amity Global Business School Hyderabad for giving me this
opportunity for doing my project on A Study on Marketing
Strategies of AMUL.
My sincere and grateful thanks to my faculty guide Prof. K.
Satyanarayana Rao for guiding me throughout my project. My
sincere thanks to my family member who stood by me motivating me
to complete my project successfully.

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 Table Of Content

Content Page No
Chapter 1: Introduction 7-11
Chapter 2: Data Analysis and 12-17
Interpretation
Chapter 3: Findings and 18-20
Conclusion

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 Abstract

The main objective of this research paper is to understand the strategies and the
marketing mix, Amul used as a cooperative society to market its products and make
them available to its customers in such a way that made it one of the top 10 dairy
product producers in the whole wide world.
Amul is a cooperative society based out of Anand in Gujarat, The word Amul is
derived from the Sanskrit word “Amulya” which means precious. Amul is the reason
behind the success of India’s White Revolution which made India the biggest producer
of milk in the world.
In today's date, Amul manufactures and sells various dairy products in India, few of
the famous ones include Amul Milk, Butter, Dahi (curd), Paneer, Cheese, Fresh
cream, Ghee, Bread Spreads, Mithai Mate, Ice-creams, Chocolates, the list goes on
and on.
The Current CEO of Amul Mr. R.S. Sodhi is one of the reasons why Amul has
retained its position as India's top Milk processor and is still a household name in
India. Amul’s Revenue in 2020 was INR 38,550 Crores.
It is said that Amul collects 4,47,000 liters of milk from various agriculturalists,
converts them into packaged products, and delivers them to over 5,00,000 retailers
throughout the country.

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 Chapter 1
Introduction :
Amul cooperative society was founded and registered on 19th August 1946 as a
response to the activities relating to agents and traders taking advantage and giving
unfair treatment to small dairy farmers, these agents belonged to the dairy giant of that
time named “polson”. The price of milk was randomly determined by polson as they
had a monopoly in India. They used to collect milk from dairy farmers in Kaira
District and supply it to Mumbai.

Infuriated and annoyed by such unfair behavior the leader of the farmers of Kaira
“Tribhuvandas K. Patel” initiated a discussion with “Sardar Vallabhai Patel” about the
problem. The result of the discussion of this conversation led to the formation of a
new organization titled “Kaira District Co-usable Milk Producers Union Limited
(KDCMPUL)”. This organization supplied Milk directly to Bombay and stopped
dependence on Polson Dairy. A meeting was conducted in Chaklasi, Gujarat where it
was made official for the union to stop cooperating with Polson Dairy.

The aftereffects of this led to each town having its own cooperatives as each small
farmer could only contribute around 1-2 liters of milk every day Dr. Verghese Kurien
and H.M. Dalaya played an important role in the formation of these new unions and
the manufacturing of the innovative skimmed milk powder made of buffalo milk for
the very first time in the world.

Amul Celebrated its 25th anniversary in

1973 with Morarji Desai, Tribhuvandas
Patel, Maniben Patel, and Varghese
Kurien.

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Additional cooperatives were also set up in bigger cities in Gujarat including Baroda
and Surat.

Timeline of Amul:

● 1946: The Kaira District Cooperative Milk Producers Union Limited

(KDCMPUL) was registered and this marked the beginning of Amul.

● 1950: Dr. Varghese Kurien joined the Amul Cooperative organization and was
entrusted with the task of running and operating the dairy.

● 1955: A new factory was set up where products like butter, ghee, milk powder,
etc were produced, and the Kaira-based cooperative union choose the brand
name “Amul” to market these products.

● 1973: The Gujarat Cooperation Milk Marketing Federation (GCMMF) a

marketing body was formed to combine forces and reduce expenditure to
eliminate the competition from the market. The GCMMF marketed Amul
products.

● The 2000s: In this time period, Amul started the production of a variety of
diverse milk products including cheese, ice creams, chocolates, etc this helped
Amul register a turnover of over 38,550 crores INR in the year 2020.

● Present day: Amul has over 6000 preferred outlets and 10,000 milk parlors
across 1400 places throughout India. They're located in every place including
residential areas, Institutes of Education, Railway stations, etc.

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Company Profile :

Title Brand

Founding Date December 1946

Founders Verghese Kurien and Tribhuvandas Patel

Headquarters Anand, Gujarat

Managed By Gujarat Co-operative Milk Marketing Federation Limited

Fullform Anand Milk Union Limited

Website amul.com

CEO R.S. Sodhi (2010 - Present)

Revenue 38550 crores INR (Year 2020)

Awards Marketer of the Year FMCG Food - IAA Leadership

Award (2019)
World Dairy Innovation Award (2018)
BML Munjal Award (2017)
Forbes India Leadership Award (2015)
Development Leadership Award (2015)

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 Objective Of The Study:
● To know and understand various marketing strategies used by Amul in
order to promote its products and become the top 10 milk processors in
the world and the best in India.
● To know and understand the contents of the 4 Ps of the marketing mix
used by Amul in order to promote their products to become a household
name in India.
● To know and understand various marketing strategies used by other
businesses to promote their products.
● To learn how Amul as a cooperative society helps the members of the
society and to get a brief understanding of the business model of Amul
and what its production process is.

Need for this study:

The need for this study will allow the world to know all the general objectives
that Amul has as a cooperative society and how it could achieve them, and this report
will also help the world understand all the marketing strategies and tactics used by
Amul in order to attract all the customers.

Research Methodology:
Primary Data:
Not collected and used
Secondary Data:
This report consists of data collected from multiple case studies and the official
website of Amul

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Amul’s Success Factor:

● Innovation: Amul is a brand that focuses on innovation the most, whether it is

the product itself or the way the product is marketed. One instance where Amul
has innovated is the making of skimmed milk powder using buffalo milk. Its
innovative three-tier cooperate structure also plays an important role in the
success of Amul today.

● Product Portfolio: Amul in today's dairy market has the biggest and the most
diverse portfolio as it has products in every dairy-related segment this allows
Amul to target customers from every market segment and build a powerful
brand image, this is also a reason for Amul's success today.

● Efficient Supply Chain: Amul follows a supply chain strategy where the first
stage is the village-level dairy cooperative strategy, this is associated with a
regional-level cooperative strategy which is associated with the state-level
dairy association. This model has efficiency and high speed of operations and
this can be proved by seeing the success of Amul today.

● Advertising: Amul uses topical advertising where they take an incident from
the current affair and make an animated image where they feature a girl who is
popularly known as the “Amul girl”. They also have catchy taglines including
“Amul the taste of India” and “Amul doodh peeta hai India”. Advertising is
also a reason which shows how successful Amul is.

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 Chapter 2
Swot Analysis Of Amul :
Strengths: are those that are internal to the company, it comes from within the
company.
● Technology: Amul has used and adapted to comprehensive and wide
range of technologies in the dairy industry which has led it to become
the market leader with exponential growth in every fiscal year.
● Quality: Amul has always maintained the quality of its product, they
have never faced any issues regarding the quality in the Indian
marketplace, and this has led it to become a trusted brand with a loyal
consumer base.
● Production Capacity: The Amul cooperative society has access to
more than 18 million liters of milk every day because of their business
strategy, This makes it the largest producer of dairy products in the
country.

Weaknesses: are also internal to the company, they are those vulnerable points
of the business that lack a certain aspect.
● Portfolio Expansion: Amul has a very big product portfolio including
butter, ghee, cheese, etc. It is the best in most of the products in the
market but there are some products such as chocolates where they
haven't seen a lot of success comparing it to the other products.
● Operational Costs: Amul has been facing high operational costs as they
rely on dairy unions for their supply of milk, nowadays the prices of the
milk in the unions are increasing leading to higher operational costs.
● Legal Issues: Amul had a fair share of legal issues one of the most
recent is when Hindustan Unilever accused Amul of disparaging their
brand image in one of the advertisements. This case deteriorated Amul’s
image as the verdict was in favor of the opposition.

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 Opportunities: These are those points that can be possibly converted into
strengths if they are worked upon.
● International Expansion: Amul has a very specific brand identity that
appeals to Indians worldwide, If they aggressively advertise their
products in foreign markets then Indians living in those countries will
surely buy them.
● Larger Product Portfolio: The Amul brand name gives a sense of trust
to their customer, It also has an extensive distribution channel which
will allow it to introduce more products in the near future.
● Increase in milk consumption: As per research the amount of milk
being consumed in the nation is being increased every annum, the main
reason for this is increase in population. In India, the population is
increasing every year which leads to an increase in milk consumed per
capita.

Threats: include all those points that are in a niche, the company needs to
make strategies that can help convert these threats into opportunities
● The trend of Veganism in India: Most of the youth today are following
the trend and converting to veganism where they don't consume any
product made with the help of animals, and Amul is a dairy company
where the main raw material itself is milk.
● Increasing Competition: The dairy industry is an industry where exists
a huge number of brands including Heritage, hatsun, Nandini, Masquati,
Arokya, etc and there are many local companies in different regions of
the country. Amul also faces a lot of competition in the ice cream
segment competitors including Heritage, kwality walls, etc

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4p’s of the marketing mix:
Product Mix:
Amul has the most strongest and diverse portfolio in the dairy products and
milk processing industry, Amul’s cheese, butter, and ice cream are called their
cash cow products, and Amul has an upper hand when it comes to comparing
with the competition in the domestic and local level as there is no other brand
that has an extensive product range, that's why Amul always comes out at the
top. Amul also has the highest market share in the packaged milk segment
(26.2%). Amul is known to keep investing in the research and development of
its products, this allows Amul to bring different products to its customers.
Other products in the Amul product line include Amul’s Beverages (Amul
Kool flavored milk, Amul Lassi, etc), Amul Bread Spreads (Amul Butter,
Amul Cheese spread, Amul cheese sauce, etc), Amul chocolates, Dahi, Paneer,
Ghee, etc.

Price Mix:
Amul uses a competitive pricing strategy, but they have a penetrative pricing
approach. The pricing of Amul products is always around the prices of the
products of the competitors not more not less because when Amul was set up
and launched there were no domestic and local competitors, so Amuls main
goal was to provide their end consumers with products at an affordable and
reasonable price, they still use this as an inspiration till date.
Today all of Amul's products are available at a reasonable price keeping in
mind the end consumer. Few people in rural areas call amul products costly and
they end up consuming local products, this is because of the increasing
production cost of producing the end product, for instance in the recent years
the price of transporting the products and storing them has drastically
increased, leading Amul to increase the prices of certain products, even though
the prices of the products have been increased consumers still prefer Amul over
competitors brands because of the trust they have on the brand and taste of the
products.

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Place Mix:
Amul’s place marketing mix can be explained by its distribution strategy,
Amul’s products are found nearly everywhere throughout India which shows
that it has a strong distribution channel. In Amul’s main plants, all the products
in the portfolio are made in huge bulk quantities, and as it is distributed further
its volume gets lesser and lesser. Amul has two different distribution channels
one of them is how they collect milk from various small farmers and bring it all
at one place and the other is how it is distributed to the end consumer.
Structure of distribution channel:
Manufacturing unit > Agent> Distributor> Amul outlet/Retailer> Consumer
Amul’s product placement and the location of the outlets are also important
reasons for Amul’s success today. Amul’s distribution channel is so well
planned and perfectly made it reaches its desired customers at the desired time.

Promotion Mix:
Only a few companies with the best marketing team have a victorious,
triumphant and prolonged advertising campaign, the most prominent example
of such a company is Amul, this company has used the proposition of using a
topical advertisement method where they feature a girl popularly known as the
“Amul Girl”. In this type of advertisement, amul uses a recently conducted
event and uses a creative approach to advertise its products, this method of
advertising has become so successful that Amul to this day advertises in this
way, this is also a reason why Amul today is a household name.

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Amul’s Business Model:
Amul’s Business model is a cooperative society business model where they aim
to produce and manufacture their products with the primary goal of delivering
them to their end consumer at a reasonable and affordable price. The main
objective of the cooperative society is to take responsibility and be in charge of
the finances, resource management, and operations. Amul follows a three-tier
business Model.

First-tier:
The first tier consists of all the local farmers from the villages who are a part of
the local village dairy cooperative society, all these local societies select a
representative who will represent the society in the district-level milk union, and
these representatives showcase to the union what all the local cooperative society
additionally needs to grow.

Second-tier:
The second tier consists of all the representatives of the local-level cooperative
societies and all together manage the district milk union. This union is
responsible for the collection of milk from the local farmers and then
accumulating all of it in one place, all the milk is then processed into various
dairy products. Then these dairy products are sold to the state milk federation.

Third-tier:
The third tier of Amul’s business model consists of all the state milk federations
in India, this also involves all the processed dairy products that are purchased
from the dairy milk unions, Amul’s main objective with the third tier is the
facilitation of the distribution of selling all of these products in the market, this
involves creatively endorsing the products that make it attractive to the customer
and collection of revenue which is later re-distributed in a similar way.

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Amuls Sales Turnover Over The Years:

Year INR (Million) USD (Million)

1994-95 11140 355

1996-97 15540 450

1998-99 22192 493

2000-01 22588 500

2002-03 27457 575

2004-05 29225 672

2006-07 42778 1050

2008-09 67113 1504

2010-11 97742 2172

2012-13 137350 2540

2014-15 207330 3410

2016-17 270850 4100

2018-19 331500 4800

2020-21 392480 5300

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 Chapter 3
Conclusion:
From the above report, we can understand that Amul has a marketing strategy that is
extraordinary and effective when it comes to the promotional needs of its dairy
products range. Amuls main focus has always been on the quality of the product and
how it can be affordably reached or delivered to its customers.
Amul as a brand has a customer-centric idealogy, its innovative ways to conduct
business have made it a dominant figure in the market. Amul uses a cooperative
society business model, this particular business model has helped empower countless
farmers, these farmers are also the reason why Amul has an abundant supply of fresh
raw materials every day, this gives them a competitive edge.

Amuls main marketing and advertising strategy depends on its iconic and prominent
mascot which has been very lucky for them. The mascot also gave Amul a very
powerful brand identity. This particular mascot is known by everyone in the last few
generations all because of how famous it has become.
Amul also knows how to take care of their customer as they keep introducing new
products as per their customer’s preferences, the new range of Amul’s chocolates is a
very well-known example. Their product range also tells us that Amul has a
forward-looking approach.
Amul also has a great infrastructure which means its supply chain management and
distribution network, the distribution network is so effective that it ensures timely
delivery even to the smallest villages, this helped Amul make a continuously
increasing consumer base, this also played a pivotal role in making Amul a household
name in India.
Amuls commitment to safety standards and the quality of its product has ensured the
brand with a very trusted and loyal consumer base.

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Amuls marketing strategies have been a remarkable success and it is also an great
example to other businesses around the world on how the promotion of a product
should actually be done. Amul is a brand that has been very dynamic when it comes to
adaptability, we can see this when Amul launched a whole new range of products
when there was an increase in the number of health-conscious people worldwide.
Amul has also adapted nicely to all the technological developments in various fields
like customer relations, production (became automated), marketing is also done
digitally, etc.
Amul as a brand has also been very committed to its corporate social responsibility, as
it introduced a new cooperative society in every village across Gujarat in its early
days, this indirectly developed the rural areas of the state. Amul also believes in
environmental conservation, it also got a positive reputation for that.

In the end, we know that Amull’s marketing strategy is a pleasant blend of traditional
marketing, modern marketing, sustainability, and social responsibility. These strategies
have made Amul a well-established foundation with imperishable success.
Amul’s success and popularity continuously pave the way and expand its market share.

(P.T.O)

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Finding Points:

I. The above report covers Amul’s ideologies of marketing, their marketing

strategy, and their 4Ps of marketing with clarity.
II. It also shows what Amul’s strong points are, what its weak points are, and how
it can change their weakness into strengths with a detailed SWOT analysis.
III. We also know how Amul focuses on the quality of the product and how it is a
consumer-oriented brand with great detail.
IV. From the above reading, we can also be aware of what Amul’s journey has been
from 1946-till date, and how it became India's top dairy company and the
world's top 10 dairy company.
V. Additionally, this report also includes a brief idea of Amul’s business model and
its company profile.

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 References
Companies official website
Amul's About Us Page (amul.com/m/)

Case Studies
Marketing Mix Case Study Of Amul (iide.co/case-studies)
Case Study on Amul's Success (blog.ziploan.in)
Amul Case Study (startuptalky.com)

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