AMUL BRAND AUDIT

INTRODUCTION

• Amul, formed in 1946, is a dairy cooperative, based in Anand, Gujarat.

• Establishment of Amul was marked as an epoch in the White Revolution
• Largest food brand in India & world's Largest Pouched Milk Brand
• Product Portfolio - Bread Spreads, Milk Drinks, Fresh Milk, Power Milk,
Cheese, Desserts
• Market leader in ghee and butter with 85% market share
• Symbol of high quality products sold at reasonable prices, of availability, of
service.
• Brand name of 2 million farmers, members of 10,000 village dairy cooperative
societies throughout Gujarat.
• Positioned itself as "Taste of India“, consistent communication campaign &
brand strategy for the past 60 yrs.
• Recognizable mascot “Amul girl” & tagline “Utterly Butterly Delicious Amul!”
• Amul’s advertising and marketing spend has never exceeded 1% of its revenues.
• Buttressing Strengths: Distribution & value-for-money seem to be the major
strengths on which the brand’s popularity rests.
 Understanding Levels of Competition

Level Of
Competition Butter Ice- creams Milk Chocolates
Mother Dairy, Mother Dairy, Vita
Product form Vita Dairy, Kwality Walls, Dairy, Kwality Nestle, Cadbury,
Mother Dairy, Lotte
Home- made Cream Bell Dairy
butter
Baskin Robbin,
Product Gyanis, Nirulas, Nestle, Britannia
Nutralite, Le-
Haagen-Dazs, (condensed milk , Hershey, Mars,
category Bon, Britannia,
flavoured milk& Ferrero
Nestle, Kissan Coco -Berry
Powdered milk)

Frito Lay, HUL Frito Lay,

Frito Lay, Britannia Bisleri, Coke, Britannia, Nestlé
Generic Nestlé, HUL Pepsi, Kingfisher, HUL
Nescafe

Beverages, Fast
Budget Chocolates, Fast Beverages, Fast Britannia, Video food, Video
food, Ice-creams, food, Chocolates, Rentals, Ice Rentals, Ice
Video Rentals Video Rentals creams, Fast food creams
CATEGORY ATTRACTIVNESS STUDY

Overview of Dairy Industry

 CATEGORY ATTRACTIVNESS STUDY
Factors
Category Size & Growth
Profitability
Product Life Cycle
Sales Seasonality
Bargaining power of Suppliers
Bargaining power of Customers
Threat of New Entrants
Threat of Substitutes
Intensity of Rivalry
Attractiveness Analysis
• Food Processing Industry is growing at
++ 14% p.a.
• Consumption of milk has registered a
growth of 8.4%
Increased category competitiveness may
+ lead to lower pricing & profits
- 60 yr old brand, reached maturity
Year-round sales, Diverse product
+ portfolio
Suppliers are rural milk producers, don’t
+ exercise much power
Undifferentiated products, substitutes
- exist
Profitable category, fairly easy to enter,
- increasing relevant to customers
Considerable, Giants Britannia, Nestle
- competing to gain larger market share
Creation of PODs’ in terms of taste,
- flavor, variety & customer segmentation
 Competitor Analysis - POP v/s POD
POP’s
• Very effective marketing program
• Great penetration of distribution
channels
• Disciplined & rigorous product
development process.
• Effective technology
management.
• Continuous surveillance of the
marketplace & understanding of
customer needs.
• Creative & brilliant
advertisements
• Enjoys excellent reputation with
customers
• Provides “value for money”
POD’s
• Quintessentially Indian
• A mass market player, no premium
offerings
• It focuses on issues important to the
common man - ‘aam aadmi’.
• USP- is its taste. Amul butter is made
from fresh cream.
• Quality with affordability
• Very strong supply chain
• Have always taken care of dairy
farmers
• Offerings for health conscious and
vibrant India - Probiotic wellness ice-
cream & sugar free delights for the
diabetic patients.
 Understanding the Customer (STP)

Young Nation – have to meet the ever-increasing nutritional

needs of the new & old generations
• Segmentation is not so easy because of mixed audience & various
culinary application of Amul products.
Nevertheless, segmentation can be done as follows:
a) Customer based:
• Kids – Amul Kool, Chocolates, Nutramul
• Women – Amul Cacli+
• Youth – Milk shakes, Café, Cheese, Desserts
• Calorie conscious – Amul Lite, Trim milk, Amul Shakti
b) Industry based:
• Milk – Ice cream manufacturers, Restaurants, Coffee shops
• Butter/Ghee/Cheese – Bakery, Snacks retailers, Pizza joints

• Targeting – Concentrating equally on end-users as well as the third

parties involved in supply chains. Amul has particularly identified
“youth” as one of its potential segments. Working towards this aspect, it
has come up with Amul parlours in cities.
 Understanding the Customer (STP)

• Positioning
 A mass market player, no premium offerings
 USP – Quality with affordability
 Amul as “Taste of India” creates value for money for both the dairy
farmers and the customers
 New offerings for health conscious & vibrant India – Probiotic ice
creams, sugar free delights, Amul Kool Café etc.
 Marketing Mix – 4Ps’
• Pasteurizes milk & produces condensed forms;
focused on dairy segment
• Total length of Amul’s product mix is 42; Width is 8
• Portfolio: Butter, Milk, Milk Powder,Ghee, Cheese &
PRODUCT Spreads, Chocolates, Desserts & so on
• Been innovative & introduced products for specific
customer segments (diabetic people)- India’s First
Pro-Biotic Wellness Ice cream & Sugar Free Delights;
Product for price sensitive India-Low Priced Amul Ice
Creams & affordable ‘sugar’ whitener

• Follows a low-cost price strategy – Quality with

Affordability (core essence of Amul)
• Totally market oriented pricing strategy to appeal to
common masses.
• GCMMF sets up pricing model & considers cost aspects: PRICE
Cost of milk, Labour cost, Processing cost, Packaging
cost, Advertising cost, Transportation cost, Sales
promotion costs, Taxes etc.
• For eg. Products like- Amul butter: 100gm-Rs 25;
500gm- Rs.122, Amul lite: 200gm-Rs.32
 Marketing Mix – 4Ps’
• Covers 2.41 million producer members with milk collection
average of 5.08 million litres/day.
• SCM: Farmers Village Cooperative Societies (VCS)
Manufacturing units Company Depots Wholesale
Distributors Retailers.
PLACE • Market Logistics:
– 10000 village cooperative societies
– 3600 wholesale distributors, 45 depots in India
– Over 5,00,000 retailers spread all over India
• Besides India, Amul has entered overseas markets such as
Mauritius,UAE, USA, Bangladesh, Australia, China, Singapore, H
ong Kong etc.

• Amul Moppet, little girl whose charm has endured fickle public
opinion; created a home in hearts & minds of millions of Indians.
• Since 1967, this little girl appears at billboards, strategically placed
all over India.
• Often said to be playing the role of a “social observer with evocative PROMOTION
humor”; topic of conversation amongst millions.
• AMUL promotes its products through newspaper, T.V.; hoarding
etc. GCMMF however uses hoarding for advertising in local areas.
• Amul's magic - Those catchy lines don't pander to your nationality
or certain sentiments. It is pure & simple, everyday fun
 Overall Brand Strategy

Umbrella Branding Strategy

• Stuck to the core benefits of brand; Commonality of benefit is a must –
Amul stands for richness of milk (focused on Dairy segment)

• It could easily leverage the positive product characteristics of powerful

existing brand into new product categories.

• For e.g. the Utterly Butterly Amul values associated with Amul Butter for
over half a century gave Amul Cheese instant place on the shelves.

• Amul ice-cream – Real milk, Real ice-cream – rapidly climbed to number

two position in just a short span of three years.

• Amul’s ad campaigns - in the form of billboards or the Taste of India

campaign - have always managed to evoke a larger-than-life brand feel,
consistency & spirit of Indian culture in a contemporary way.

(Brand Hierarchy table on next slide)

 Overall Brand Strategy

Ice cream Chocolates Shrikhand Fresh Milk Milk Power Cheese

Breadspread Ghee (1956)
(1996) (1973) (1980) (1956) (1958) (1962)

Fat Free
Softy Mix Dessert
Amul Spray Amulya Paneer Pizza Cheese
(2001) (1968) (1987) (1997) (1998)
(2002)
Condensed Butter Milk Amul Butter Amul Lite
Nutramul Eclairs
Milk (1996) (1998) (1956) (1994)

(The hierarchy goes down stating all 42 brands, but we haven’t included here,
as it was turning illegible.)
 Sources of Brand Equity (CBBE Pyramid)

Resonance
Loyalty, Connect with
customer, Attachment

Judgments
Feelings
Quality, product
for every class, Trustworthy,
credibility, Fun, Exciting
innovative

Performance Imagery
Convenient, widely available, Traditional, Pure,
reliable, satisfaction, value for Natural, Fresh
money
Salience
Brand recall, strong distributor network, awareness, range of products, packaging.
 Leveraging Secondary Associations

a) Managed by an apex cooperative organization, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF)
• Amul is the brand name of 2 million farmers, members of 10,000 village dairy
cooperative societies throughout Gujarat.
• GCMMF ensures that product mix & new product introduction is consistent
with the core philosophy of providing milk at a basic, affordable price.

b) Distribution Channels – Soul of Amul Saga

• Collects 447,000 litres of milk from 2.12 million farmers everyday
• Delivers goods worth Rs 6 crore to over 5,00,000 retail outlets across country
• Aim is to transform lives in rural India & contribute to development of society.

c) Mascot – "Amul baby" (a chubby butter girl dressed in polka dotted dress)
• A ‘pun’ loving star – with her bold tongue-in-cheek topicals
made way directly into the hearts of millions.
• Found her way directly into the Guinness Book of World
Records for the longest running campaign ever.
• Playing the role of a social observer, its weekly comments have
tickled India’s funny bone since 1967
 Leveraging Secondary Associations

• Amul’s consistently been into sponsorships - associated itself with high TRP
show’s like:
– Surabhi (1990’s, Doordarshan)
– Star Voice of India (2007, Star TV)
• Conducts various contests:
– Chef of the year
– Amul Maharani of the year
– Amul Food Festival Contest
– Slogan likho, Disneyland dekho contest
– Amulya Fly to Bangkok contest
 Possible Brand/Category Extension

2007: GCMMF introduced Amul range of sugar free & pro-biotic ice-
creams. A first of its kind product, the ice creams – Amul Prolife &
Amul Sugar Free – are targeted towards the health-conscious &
diabetic segment.

Such extension adds back value to the parent brand. Projects that
Amul isn’t just a traditional brand, it looks into the changing needs
of different demographics.

What more can Amul do?

 Can introduce Proteins Shakes – going ahead with their strategy
to meet needs of emerging market segments
 Can introduce Bread – will complement rest of the products in
the portfolio. Will try to increase the usage occasions of Amul
products.
THANK YOU !

Efforts by:
• Dhruv Mittal (815)
• Mansi Verma (829)
• Pooja Chauhan (838)
• Prerna Mehta (839)
• Ridhima Gandhi (845)
• Sneha Das Sharma (858)
• Swati Dureja (861)