4P's of Amul -V-2.pptx

Marketing Mix of Milk products

1. Marketing Mix of Amul

2. Marketing Mix of Amul Formed in the year 1948, Amul is a brand not only well known in India but is also gaining popularity in overseas markets. Mainly dealing with dairy and dairy products, Amul name is synonymous with trust and quality. With the presence in more than 60 countries, its all because of the right marketing mix of Amul that has helped the brand achieve such stronghold. Let’s dig deep into the marketing mix of Amul and understand what really makes it different from its competitors

3. PRODUCT: One of the leading dairy products brand, Amul, has a diverse product portfolio and offers a variety of dairy products. Below is a list of a few popular products that Amul has to offer Amul Butter Amul Milk, Amul Tazaa , Amul Slim lite Amul Paneer Amul Chocolates Amul Cheese Amul Buttermilk Amul Beverages Amul Icecream Amul fresh cream Amul Dahi Amul Ghee Amul Tru , is a combination of milk andfriut in a ₹10 bottle

4. Who is a leader in Cow Ghee market in India? Ghee, which is widely used in Indian cooking, is the pure butter fat left over after the milk solids and water are removed from butter. It is very fragrant with a rich nutty taste and represents the second largest consumed dairy product in India, after liquid milk market reached a value of around INR 1,990 Billion in 2018. 1. Amul Pure Ghee . Amul is the top in the list of best cow ghee in India with the tagline “The Taste of India.” Other brands are……. Mother Dairy Pure Ghee. ... Gowardhan Cow Ghee. ... Patanjali Cow Desi Ghee. ... Aashirvaad Svasti Ghee. ... Vedaka Cow Ghee.

5. Amul R&D: NPD (New product development) Amul invests a lot of money in research and development and tries to bring up new products for different customers segments. There are a lot of competitors that offer similar offerings to customers but its the vast variety of products that Amul has to offer that allows it to have a sustainable competitive advantage over its competitors

6. Price : Amul uses a combination of Competitive and Low-Cost Pricing for its marketing mix. Amul was started with a vision to provide the best quality dairy products at economical prices . For products like milk, Ghee, Ice-cream etc, Amul follows low price strategy where they offer these products at a lower cost than their competitors. For products like Amul spray, Prolite , condensed milk , the company follows competitive pricing where the price of these products are kept close to or less than the competition Pricing of different products is set keeping in mind different factors that are involved in its production like Raw material cost, labor cost, farmers profit, transportation cost etc.

7. PLACE : Place plays an important role in the Marketing Mix of Amul. The company boasts an enormous distribution channel which spreads across the country. Amul works on the model of economies of scale where the product is produced in masses and then broken down into a single unit for each customer, Eg : Butter is produced in bulk and is broken down at each level till it gets down to a single unit for the end user consumption. There are two channels that Amul uses for the production of its goods and the distribution of the end product. Acquisition Channel : Amul works directly with the villagers and village co-operative societies to gather milk which is then sent to manufacturing units for producing different productions Distribution Channel : Amul has an extensive chain of distributors which help it in distributing the products across the country. The products are sent to company depots from where it is sent to whole sellers and then finally to individual retailers .

8. Promotion : Amul is one of the few companies that has been running the longest and one of the most successful promotional campaigns with a promotional character – “ Amul Girl ” Amul uses the current scenarios and gives a tongue in cheek viewpoint on those current happenings. The promotions done by Amul are mainly for its Butter and mainly uses ATL and BTL promotion during the launch of their new products. ATL” Above the Line –Mass and direct, TV ad BTL: Below the Line – Indirect, word of mouth, hidden As per Amul, just to maintain the economies and not to affect the cost of the product, their advertising budget does not exceed 1% of their turnover. It is because of these reasons that Amul is able to provide quality products at affordable prices.

9. Uncover the growth opportunities to sell more milk Shelf space in the dairy aisle is precious. To get it right and reinvigorate the dairy case, it’s critical that retailers make every foot count. Amul to invest Rs 1,500 crore in 2 years to set up dairy, edible oil, bakery, potato processing plants

10. Milk Processors Education Program ( MilkPEP ). The dairy case has seen dramatic changes with the proliferation of new product segments competing with milk for space. Simultaneously, shopper behavior has changed and the retail landscape evolved. As part of our commitment to finding business solutions for processors, MilkPEP conducted new research with leading industry partners Willard Bishop and Prime Consulting. This research, which is available to processors to share with their retail customers, uncovers growth opportunities, best practices and insights that have the potential to maximize the dairy case, increase retailer profit and ultimately drive milk sales. Milk Processors Education Program ( MilkPEP ). With strong industry momentum – including new introductions, powerful national marketing programs and elevated scrutiny on milk alternatives – the time really is right to maximize the dairy case. Plus, milk aligns with current food trends and offers so many of the benefits consumers are now seeking – from natural, high-quality protein, to farm-fresh nutrition. Shelf space in the dairy aisle is precious . To get it right and reinvigorate the dairy case, it’s critical that retailers make every foot count. You can help by encouraging your retail customers to consider how to optimize the product mix, and specifically, how they manage fluid milk – typically the largest component of the case. We encourage you to leverage these insights in your retail meetings to position your brand as a category advisor.

11. Milk Processors Education Program ( MilkPEP ). The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service monitors the operations of the board, which is comprised of 15 fluid milk processors from 15 geographic regions and five at-large members. At least three at-large members must be fluid milk processors and at least one must be from the general public. MilkPEP.org is the central hub for our Milk Brands. Here you will find the latest Social Media Content, Point of Sale Materials, Webinar Calendar and Registration, Research Documents and much much more. Happy Exploring! MilkPEP offers powerful national retail campaigns that are steeped in consumer insights and customizable for processor brands. These campaigns reach a broad target with support from a robust advertising strategy across TV, print and digital and take a holistic approach

12. Why there’s an opportunity to sell more milk Milk far outperforms on space: Generates 18% of dairy department profit from only 10% of the space. Milk drives trips + profit: Milk is a key driver of shopping trips and leads the dairy case in sales productivity. In fact, milk is bought by more than 95% of households, and baskets with milk are 23% more profitable than those without. Milk has huge merchandising potential: The dairy case and fluid milk often lack the in-store interest of other catego­ries. Yet, milk’s benefits are in-line with consumer demands, and MilkPEP programs offer significant support for opportunities in-store. Milk has an uncaptured C-store opportunity: Sales have shifted to other channels, and C-stores have lost more than $1 billion in potential milk sales and $321 million in potential milk profit since 2008.

13. Keep milk in stock; merchandise it with messages You can help your retail customers capture this opportunity by ensuring milk is in stock, focusing on days-of-supply, increasing milk variety, targeting the right shoppers and merchandising milk with in-store mes­saging: 1. Help retailers remedy the out of stock issue Space reductions and out-of-stocks in stores result in lost sales. Restocking alone is costly and not likely the solution. Converting shelf space back to milk could drive more profit. 2. Increase days-of-supply for more profit On average, milk’s days-of-supply is lower than most any other product in store. Increasing days-of-supply could improve profit and help retailer’s solve out-of-stocks too. 3. Increase product variety mirror how consumers see, think about and purchase milk.

14. MilkPEP Researh Fluid milk innovation – specifically lactose-free, health-enhanced and single serve flavors – represents sizeable category growth and an opportunity to increase milk sales.[6] 4. Focus on convenience store business 5. Optimize milk merchandising Shopper insights suggest that communicating the benefits of milk beyond price – in particular, milk’s protein advantage (8 grams in every 8 ounces) or chocolate milk’s benefits as a post-exercise recovery drink – could drive increased purchase. MilkPEP offers powerful national retail campaigns that are steeped in consumer insights and customizable for processor brands. These campaigns reach a broad target with support from a robust advertising strategy across TV, print and digital and take a holistic approach

15. Indian Dairy Product Market & Global Trade India is the world’s largest producer of dairy products by volume, accounting for more than 13% of world’s total milk production , and it also has the world’s largest dairy herd. This is because India has 75 million dairy farms, about half of all dairy farms in the world. India has merely managed to capture only 1% of global dairy trade

16. Amul Competitors

17. Cadbury Dairy Milk Silk: Campaign INDIA — Cadbury Dairy Milk Silk has launched a new TVC to continue the “ How Far Will You Go for Love ” campaign which was launched earlier in the year.

18. Questions?