Marketing Mix of AMUL

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.

PRODUCT.

Amul has a very strong product portfolio. Amul product portfolio is comprised mainly of
Dairy products Amul butter; Amul cheese and Amul ice cream are cash cows for Amul as
they have the major market share in their product category. Amul ice cream is amongst
the top 10 ice cream brands of India.

Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact Amul milk
has 26% of market share in the packaged milk segment. The only disappointing
performance is seen in Amul Chocolates which are a burden for Amul and lot of push is
required for the sales of the same. This is because the chocolate market has established
players like Parle, Dairy milk and others.
The Amul family tree has the following brands Amul Milk, Amul bread spreads, Amul
Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul ice cream, Amul Paneer,
Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul mithai range,
Amul mithai mate, Amul chocolates, Amul butter milk. Thus the product portfolio of
Amul considering its dairy origins is astounding. 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.

NEW PRODUCT DEVELOPMENT

Amul introduced small packaging sugar free sweetened milk, for health conscious people
who usually travel long distances. It could be a direct mix for coffee and other protein
powders. A lot of people prefer the taste of sweetened milk over plain milk but they dont
consume flavored milk due to the calories attached to it so this product can be the best for
them.

The Product line and depth of AMUL Milk is shown below: -

Product line includes all the different types of milk provided by Amul like Pouch milk,
UHT Milk, flavored milk (Amul KOOL).

-------------------------------------------PRODUCT LINE-------------------------------------------
 POUCH MILK. UTH MILK. FLAVORED MILK
(AMUL KOOL).
AMUL TAZA. AMUL GOLD. THANDAI.
AMUL GOLD. AMUL TAAZA. CHOOLATE.
AMUL DIAMOND. AMUL CALCI. ELAICHI.
AMUL CHAI MAZA. AMUL SLIM. KESAR.
AMUL SHAKTI. AMUL MOTI. ROSE.
AMUL SLIM TRIM. BADAM.
AMUL KOOL CAF.
AMUL KOOL KOKO.
STAMINA DRINK.
PRO DRINK.

PRICE.

Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But
penetrative pricing strategy is used when the market has a high level of competition and a
player wants to

establish itself in the market by giving low prices. However, in the case of Amul, when
Amul started, there were no national players and the dairy market was unorganized.
During the introduction stage itself, Amul had a vision to provide their products to end
customers at the best affordable rates. And the same vision is in place even today.

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 Amuls 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.

PLACE.

Amul has a massive distribution network because its ice creams, milk, butter and cheese
is found practically everywhere. As it is a FMCG product, Amul follows the methodology
of breaking the bulk. The initial factory output is in bulk. Later on this bulk becomes
smaller and smaller and finally one individual slab of butter or scoop of ice cream is sold
at the retail place.

There are two different channels through which Distribution happens in Amul. One is the
procurement channel, which is responsible for collection of Milk through dairy co-
operatives. The other is the distribution channel which is responsible for distributing the
finalized product to the end customers.

In the procurement channel, the milk is individually delivered from farmers to the co-
operatives. The co-operatives then collect all this milk and send the bulk to the
manufacturing

facility. At the manufacturing facility, the milk is used to manufacture the finalised
products.
In the distribution channel, there are carrying and forwarding agents, distributors, dealers
and retailers involved. There are also Amul shoppes which sell all products in the Amul
product portfolio.

The distribution is as follows: -

1. AMUL >> Carrying & Forwarding Agents >>Distributors

>>Dealers/Retailers/Amul shoppe >> Customers.

2. AMUL >> Modern retail.

Thus there is a lot of transportation involved for all of Amuls products. However, the
distribution channel of Amul ensures that the products reach every nook and corner of
India.
AMUL has developed federation and AMUL parlors located in several part of country.
The GCMMF handles the works relating to managing of stocks and distributors in
country. Thus GCMMF look after the disbursement of product to the various marketing
channels

PROMOTION.

Amul is responsible for one of the most unique and longest running outdoor campaign as
well as one of the most known outdoor advertising characters The Amul girl. We would
like to take this opportunity to specially thank Mr. Eustace fernandes, the creative brain
behind the sweet girl. But we should know by now that the Amul girl is hardly sweet or
cute. She is known to be the most naughty advertising girl ever. Amul hoardings mainly
feature the current news and are used to take a tongue in cheek viewpoint at current
happenings. However, each advertisement hits the nail on the head.

The promotions of Amul are mainly for butter but for all the other products there is hardly
any promotions. During the launch of products, Amul is known to go ATL and advertise
milk, butter etc. The Smita Patil ad where in Smita patil is shown as a village
milk collector is one of the most famous ads for Amul. But overall, the main
advertisement is BTL through outdoor, trade promotions, discount schemes and sales
promotions.

The major reason for Amuls absence in hardcore advertising is that Amul does not want
to give away margins in advertising its products. As per Amul, their maximum budget for
advertising is 1% of the turnover. Above and beyond that will directly affect the cost of
the product. And the major reason for Amuls strong presence in the market is its excellent
quality combined with the affordable price. Thus, overall promotions will always be low
for Amul except for the outdoor advertising of Amul butter.

Amuls Advertising Campaign Simple, Creative & Always Funny.

Amul the Amul ad campaign which is Indias longest running ad campaign at present is
going to make a bid in the Guinness Book of World Records for being one of the longest
running ad campaigns in the whole world (Only the American Smokey Bear campaign is
older). The Amul ads have almost become a part of folklore in the Advertising and
Communications industry nowadays.

Amuls advertising strategy has followed the concept of umbrella Branding. Amul is
the common brand name for most of its products across categories. For instance, the Amul
girl has also been used to advertise Amul ghee and milk. Its ad campaign Amul doodh
peeta hai India, conceptualized & created by FCB ulka, was drafted to proclaim its
leadership position and was targeted at people across all income categories. Their
corporate campaign

THE TASTE OF INDIA caters to people belonging to all walks of life & across cultures.
It is circled around a one-day-old child who needs milk as such as to dead man who needs
ghee.

This is what one would call keeping it straight and simple!

Another one from the days when things were beginning!

During 2007 T20 world cup win!

Given its wide product portfolio, Amul has stuck to the kind of promotional activities it
does but still has been the number 1 in the market.

Amul Butter has dominated this field, being one of the early entrants in terms of
branding, and pretty much owns the category. The positioning taken by it is strongly
topical, as the hoardings of the Amul Moppet keep changing to reflect the changes taking
place in the nation.

They have promoted Butter also through various cookery shows and other such food
related programmes to target the consumers like housewives and chefs.Their pricing and
promotion strategy together have made it available at food hawkers and stalls on Indian
roads only to gain maximum visibility across all consumer groups.