EXECUTIVE SUMMARY

The first phase of the project aimed at introduction of Amul and repositioning of Amul ice-
creams. In order to execute the same, initial activities included recording the existing volume of
sales &analyzing the emerging patterns in ice-cream consumption and also Research conducted.
This helped in arriving at important conclusions regarding packaging of the product,price,new
positioning of the product,and if customer want less calories ice creams or not.questions
encountered to the customers.

Introduction

AMUL means"priceless"in Sanskrit. A quality control expert in Anand
suggested the brandname Amul(AnandMilk Union Limited) from the Sanskrit Amoolya,
Variants, allmeaning "priceless", are found in several Indian languages. Amul products have
been in use inmillions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amul spray, AmulCheese, Amul Chocolates, AmulShrikhand, Amul I ce cream, Nutramul,
Amul Milk and Amulyahave made Amul a leading food brand in India. Today Amul is a symbol
of many things.Of high-quality products sold at reasonable prices, of the genesis of a vast co-
operative network, ofthe triumph of indigenous technology, of the marketing savvy of a farmers'
organization andhave a proven model for dairy development.And have a proven model for dairy
development and have a proven model for dairy development.

Background of the organization

History of Amul

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on December 1, 1946
as a response to the exploitation of marginal milk producers by traders or agents of the only
existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District of
Gujarat).
Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to
Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the
government at that time had given monopoly rights to Polson to collect milk from Anand and
supply it to Bombay city.
Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised
them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of
Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the
farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was also decentralized, as most
producers were marginal farmers who could deliver atmost 12 litres of milk per day.
Cooperatives were formed for each village too.

Introduction on Ice Cream Industry

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the
totalsize of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn,
restall is with the unorganized sector. Among the major players in this industry Hindustan
Leverhas a market share of around 50%, represented mainly by Kwality Walls brand. Amul with
an
estimated market share of 41% is rapidly gaining market share and lastly Vadilal is the playerin
the national market with 8-9% of the market share.

Production area

In rural areas, kulfi / ice creams made by small / cottage industry are popular. The market
fororganized sector is restricted to large metropolitan cities. In small towns and villages, there
arethousands of small players who produce ice- creams / kulfis in their home backyard and
caterto the local market.
Almost 40% of the ice creams sold in the country are consumed in thewestern region with
Mumbai being the main market, followed by 30% in the north and 20% inthe south.

Growth promotional activities

The Indian government adopted the policy of liberalization regarding the ice cream industryalso
and it is since then that this sector has shown an annual growth ranging from 15- 20% perannum
for last 1- 2 years.

,Types

Indian Ice Cream market can be segmented in three different ways, namely on the basis
offlavors; on the basis of stock keeping units / packaging and on the basis of consumer segments.

Reference: http://seminarprojects.com/Thread-marketing-strategy-of-amul-ice-creams-
report#ixzz2rE7ugkHW