4P's of Marketing Amul.pptx

In this presentation I have covered 7Ps of Marketing Mix of Amul
1 Product
2 Price
3 Promotion
4 Place
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1. AMUL – THE TASTE OF INDIA

2. INTRODUCTION AMUL also known as Anand Milk Union Limited, is an Indian cooperative dairy company founded in 1946, Gujrat and is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). The founder of Gujarat Co-operative Milk Marketing Federation is Dr Verghese Kurien and the current Chairman is Shri Shamalbai B. Patel. Anyone, regardless of class, race, or gender, can be a member of the cooperative formed under the Anand Pattern, however, they are required to own a minimum of one cow or buffalo and are inclined on supplying milk. Amul has been ranked number one in the list of top 1000 brands in Asia by Campaign Magazine. Their main aim was to establish a co-operative based society to cease consumer and farmer exploitation by the local milk cartels.

3. INTRODUCTION Amul  is definitely an “ Amoolya ”  brand . Amoolya in Sanskrit means something which is invaluable or priceless. With a presence in almost every  product  which can be made by milk, Amul has won over hearts along with  market share  to become a highly valued brand with an Indian origin. Amul was formed because of a revolt of dairy farmers. And today, Amul is a brand against which companies want to compete and come on top but the same is not being allowed by the smart minds in Amul . The reason Amul is such a  strong brand  is because of the  marketing mix  of Amul . Here is an in depth analysis of the Marketing mix of Amul .

4. PRODUCT Amul is one of the leading brands in milk products in India. Amul has a very diverse product range in its marketing mix. It mainly involves all the available dairy products. Amul uses the milk obtained from their primary source and then turn it into different products after going through various process. Amul has a strong product portfolio. Amul product range consists of Dairy products. Some of the  Cash Cow  Products are Amul Gold Milk, Amul Dahi , Amul cheese, Amul butter, and Amul Ice cream. Amul ice cream is ranked among the top 5 brands of the country. Consumption of Amul Paneer, Amul Milk, and Amul Dahi is increasing day by day. Amul holds a market share of 26.2% in the packaged milk product segment. Amul Chocolates are good in taste and also preferred by a large population of the country.

5. PRODUCT Milk: Amul Milk, Amul Taaza , Amul slim trim milk etc , are the biggest produce of the company. The company also offers UHT milk as a part of its offering. Milk: Amul Milk, Amul Taaza, Amul slim trim milk etc, are the biggest produce of the company. The company also offers UHT milk as a part of its offering.

6. PRODUCT Bread spreads: Amul butter, Amul Lite, delicious table margarine, unsalted butter, garlic butter & Amul Cheese are the most popular bread spreads by the company. Milk: Amul Milk, Amul Taaza, Amul slim trim milk etc, are the biggest produce of the company. The company also offers UHT milk as a part of its offering.

7. PRODUCT Beverages: Beverages like Amul Kool flavoured milk, Amul Masti buttermilk are some popular offerings of the company Milk: Amul Milk, Amul Taaza, Amul slim trim milk etc, are the biggest produce of the company. The company also offers UHT milk as a part of its offering.

8. PRODUCT Other products: Amul Ice cream, Paneer, Dahi , Ghee, Amul chocolates, fresh cream, pouch butter milk are some of the other products which the company has widely diversified its product portfolio in. Milk: Amul Milk, Amul Taaza, Amul slim trim milk etc, are the biggest produce of the company. The company also offers UHT milk as a part of its offering.

9. PRODUCT Amul has always been known for coming up with new innovative products for different customer segments. From the above products we can see how it has classified its products in different niche segments according to demand or need of consumers. For every product range there are lot of competitors but no one has been overcome Amul because of its very highly diverse and innovative dairy products. The company is driven by 1000+ employees who work with over 3 million milk producing partners. Amul has  various competitors  based on different products. In ice cream it is Vadilal , Dinshaws and Havmor . In butter and milk there is mother dairy,  Britannia  and others. However, no competitor has such a vast dairy based product portfolio as Amul . This is the major reason that Amul has a sustainable  competitive advantage  over its competitors.

10. PRICE Amul has a competitive pricing policy. Some might call it penetrative pricing. But a penetrative pricing approach is used where the market has a high degree of competition and the player seeks to position himself on the market by providing products at lower prices. However in the case of Amul , when Amul launched, there were no national players and the dairy industry was unorganized. During the phase of launch itself, Amul had a goal to provide end-customers with their goods at the most reasonable prices. And the same vision is still in place today. With the same initiative they have followed the low pricing strategy in their marketing mix. To make this strategy follow they segmented out their own products.

11. PRICE Products which covers a huge market segment and are used on the daily basis like milk, ghee, ice-cream, cheese, butter were provided to the consumers at a lower rate in comparison to competitors whereas the price of products which were of niche segment like Amul Spray, Prolite , Milk powder were completion oriented. Mostly Amul follows a strategy which is more incline towards market. In Amul GCMMF sets up the price range of different products which is based on different factors like raw materials, labor cost, distributors margin, farmers profit, Administrative and manufacturers overhead, demand and supply of products, competitors prices, transportation cost, packaging cost, govt. taxes etc. With the rise in Indian economy transportation cost, storage cost has piled up but still Amul provides quality products at a fair and affordable price in comparison to others. The company has an annual revenue of over $5 billion.

12. PRICE Today also, you will find that Amul butter, milk and cheese are available at affordable prices keeping in mind the end customers. You may call these products costly, but the cost has nothing to do with Amul’s strategy. Remember that transportation costs as well as storage and  distribution  costs are very high in FMCG. Thus, as the cost of transportation, storage and distribution has increased over the years, so has the cost of Amul products gone up. But considering their value for the average India consumer, these products are still priced at an affordable rate.

13. PLACE Amul has a large distribution network because its ice creams, milk, cheese, and butter are found nearly everywhere. Amul distribution strategy is one of the best distribution strategies of its kind. As it is an FMCG commodity, Amul practices the process of splitting the bulk. The initial production of the plant is in bulk. Later on, this volume gets smaller and smaller, and then a single slab of butter or ice cream is sold at the store site. There are two separate networks by which Amul Delivery takes place. One is the distribution channel responsible for the collection of milk by dairy cooperatives. The other is the sales system responsible for delivering the finalized product to end-users.

14. PLACE In the procurement channel, the milk is acquired separately from farmers and transferred to cooperatives. The cooperatives then gather all this milk and give the bulk to the Amul manufacturing plant. Milk is used at the production plant to produce the finished goods. Agents, manufacturers, suppliers and retailers are interested in the sales channel. There are also Amul shoppers who sell all the product in the Amul portfolio.  There indeed is a lot of transportation that lead to the final product distribution, however, Amul doesn’t fail to deliver their products to every corner of India. 

15. PROMOTION Amul Girl is the center of attraction in the Promotion mix of Amul . Famous Amul girl was a creative idea of Mr. Eustace Fernande . Amul hoardings primarily feature recent happenings.

16. PROMOTION The promotions of Amul are mainly for butter but for all the other products there are hardly any promotions. During the launch of products, Amul is known to go above the line and advertise milk, butter, etc. But overall, the main advertisement is below the line through outdoor, trade promotions, discount schemes and sales promotions. The biggest possible reason for Amul’s exclusion from hardcore advertising is that Amul does not want to give out margins in advertising its goods. As per Amul , the overall advertising budget is 1% of the turnover. Over and beyond that, the cost of the goods would have a significant effect. And the key reason for Amul’s strong market position is its outstanding content combined with an inexpensive price.

17. CONCLUSION From combating the exploitation of middlemen to making it a mandatory product in every Indian household, Amul has come a long way. Amul made its way to success by devising an amazing strategy that could touch the minds of every Indian. Amul was able to build a strong presence in the minds of its customers by posting it on various advertising locations with the “ Amul Girl” and then on every social media platform with current events.  Amul has indeed paved its way as one of the leading cooperative dairy product sellers with all their continuous hard work, research and developments. They know their target audience and strive to satisfy their demands.  The bottom line is that we love that an Indian brand like Amul has reached such staggering heights and that we are a part of the time when such a white revolution took place.

18. THANK YOU SMIT GALA ROLL NO – 13 BBA HONS – MM FUNDAMENTALS OF MARKETING ASSIGNMENT 1