For Office Use:

Grade

Marketing Management-II
Group Assignment
Report on
“Amul”
Submitted by:
Group No: 9

Srl No Names Roll No

1 Anmol Thaiya 191209

2 Divyesh Jain 191222

3 Palak Jain 191235

4 Shashwat Shrivastava 191248

5555555

5 Vishakha Tantia VVVVV Visha

191262

Section: B
Batch: MBA – FT (2019-2021)
Institute of Management, Nirma University
Date of Submission: 13th November, 2019
 TABLE OF CONTENTS

Srl No. Title Page No

1 Industry Overview 3-5

2 IMC tools and techniques 6-13

3 Suggestions for future Promotional Activities 14-15

4 Individual Contribution and learning 16 – 17

5 References 18 – 18

6 Undertaking 19

Page 2 of 19
 Industry Overview
India is known as the largest milk producer in the world. The Indian diary industry has also
begun exported milk to neighbouring countries. In the agriculture and food sector, share of
milk industry has increased more than the combined shares of rice and wheat industry. India
holds the first position in dairy industry by producing more than 12.8% of the world’s total
milk production. In recent years, Indian diary industry has grown rapidly, thus opening
various opportunities for entrepreneurs in milk and milk products market. With Indian
economy providing great opportunities in milk sector, various MNC’s and foreign investors
have also started showing interest in Indian dairy market.

With the use of crossbred technology in the dairy farms, the overall milk production has also
increased, further resulting in lowering of overall prices. There has been a vital increase in
the employment opportunities in the dairy industry. Out of 8.47 million people working in the
dairy industry, 72% are women, working mostly in production and processing of dairy
products.

• Size of Dairy Industry 11 million dairy farmers (approx) selling milk to

one of 171 milk producer’s cooperative unions.

• Per annum output More than 6.1% per annum

• Geographical distribution Gujarat, Haryana, Delhi, Punjab, Mumbai, Bihar

• Market capitalization Contributing over 1,16,862 Crore in the overall

Indian economy.

Source: https://www.indianmirror.com/indian-industries/dairy.html

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Distribution Channels for Dairy products:
Distribution channel includes the all those people, merchants, etc, who help in distribution of
services and goods in one way or another. Their main aim is to cover a huge geographical
region and to provide the desired good in earliest of time.

While planning the strategy for a new distribution channel, the company should analyze the
value addition by the corresponding channel and the possibility of market growth. The
markets are usually categorised into provincial, local, international or national.
The factors influencing the choice of the distribution channel are as follows:-
➢ Market Consideration
➢ Product Consideration
➢ Producer Consideration
➢ Government policies and regulations
➢ Accessibility to the market

Economic Times report tells us that despite a rapid growth in the consumption and production
of milk, a large amount of milk is still distributed through the unorganised or informal
channels in Indian market. Presently, around 82% of the total milk produced is distributed by
the informal channel, which generally includes retailers, wholesalers, local milk vendors, and
milk producers themselves. Remaining 18% is distributed by the formal, organised
distribution channel.

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AMUL: THE TASTE OF INDIA

Amul, established in 1956, is a co-operative brand under Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF). After the White Revolution in India, there was a huge
increase in the production of milk and milk products throughout the nation. Approximately,
451,524 litres of milk is collected from 2.13 million farmers, and then collected milk is
converted into branded, packaged products, which is then delivered to over 600,000 retailers
across the nation.

After covering a vast region in liquid milk segment, GCMMF developed the product mix
with the addition of higher value products while maintaining the requisite growth in existing
dairy products. Entering the high value dairy product segment brought huge competition from
companies like Britannia, Nestle, Hindustan Lever, etc. Amul successfully manages to still
remain at top by following its core philosophy of selling milk and milk products at low and
affordable prices.

Amul is also known for following an umbrella branding strategy. Amul is presently selling in
various product categories produced by different sub unions including liquid powder, ghee,
butter, cocoa products, cheese, ice-cream and sweets. This umbrella strategy helps Amul and
its sub-brands such as Amulspree, Amulspray, Nutramul and Amulya to cater a huge sector
by providing a wide variety of products at affordable prices.

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 IMC tools and techniques
Integrated marketing communication effectively integrates and uses all forms of brand
communication simultaneously to promote various products and services to customers and
ultimately increase brand equity and customer equity of the organization.
CREATIVE MESSAGE STRATEGY:
Amul has adopted a uniform marketing communication and branding strategy. Over the
years, it has successfully positioned itself as the “Taste of India” through its various IMC
tools. Thus, maintaining the Principle of Congruency in its communication strategy.
The Amul girl, apart from promoting the Amul brand, has also developed a strong identity for
the brand. This explains why you need an effective marketing communication mix, as it
involves interacting with customers, telling them the story and the need to talk to them, even
if you are selling something that is too simple to be commercialized like butter.
The major IMC tools and techniques used by AMUL are:
1. Advertising:
AMUL changed the way companies advertised their products. Traditionally company’s used
advertising methods which focused on the product, and the tone of the promotion was
serious. Amul changed the way, it promoted its mother brand AMUL, instead of its
individual product. Thus, AMUL is successfully following its Umbrella Brand strategy.
The main elements of Amul ads (Exhibit 1) are:
- Image: The image attracts the attention of the audience and inspires curiosity
because it is always the main component of expressing the message.
- Main text: Once the image is resolved, another important component is the text,
which helps in conveying the wit/message of the ad.
Slogans: They play an important role in ad designing, as the repetitive usage of the same,
creates a recall capability of the product/brand

Page 6 of 19
 Amul in the past has used following media:
a) Print Media
• Newspapers: Amul in its newspaper ads is prominent in deciding the
position of the ad and in linking the issues/news with the
advertisement. (Exhibit 2), which serves the purpose of attention point.

Exhibit 2: A newspaper ad clipping of AMUL referring to Nadal’s win

• Magazines: Amul often uses magazine advertisement for developing a contact with
the mass. The message incorporates a brand presence in the minds and heart of the
reader. (Exhibit 3)

Exhibit 3: Amul’s advertisement in a magazine’s back page

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b) Broadcast Media
• Radio: Amul used jingles which formed an important recall association of the brand.
The jingles which amul used are:
➢ Aage Aage badta hai india
Amul dodh pita hai india
➢ Charo aur mach gaya shor
Give me more (2)
Doodh doodh,
Piyo glassful doodh
➢ Utterly butterly delicious
Amul designed its jingle which promoted its product category and brand simultaneously.

• Television: Amul through its television advertisements developed an image of

relationship importance with the audience.
Its advertisement of 2011 – “Mero Gaam” highlighted the cooperative society of amul and its
working model, for community/society awareness. (Exhibit 4)

Exhibit 4: Amul Manthan Song – Mero Gaam for community awareness

• Cinema: Amul also features its advertisement in cinema halls for grabbing the
attention of its target audience the middle-income group of income.

c) Display Media
Billboards: Amul used its billboards which communicated its products to the target audience,
the point of contact with the prospects is very important. (Exhibit 5)

Page 8 of 19
Amul majorly places its billboards at railway stations, at bus stops and at public places for
maximum visibility.
AMUL’s 2017 OOH campaign for its milk variants through billboard talks in Delhi NCR.

Exhibit 5: Billboard of Amul at Bus stop in order to reach the target market
• Posters: Posters of Amul products highlighted the product, brand and a contact to the
prospects. They are generally designed very colorful, to seek the maximum attention.

• Point of Purchase Displays: They grab the attention of the buyer and results into quick
conversion of sales. Amul places its point of purchase displays near the counter or at
the entrance of the shops. (Exhibit 6)

Exhibit 6: Point of Purchase display of Amul at shops

Page 9 of 19
 2. Sales Promotion:
Brands can be promoted through encouraging the target by short term incentives of
coupons, samples, gifts, etc. It helps in developing a trial attitude in the behavior of
the target market.
Sales promotion tools used by AMUL are:
• Premiums and gifts: AMUL during its factory visits give its new and existing
variants for tasting and as gifts to its visitors. It ensures the incentive to try or
purchase the product.
• Samples: It encourages the buyers’ behavior to try or purchase the variant after
getting an experience of its taste.

3. Events and Experiences:

AMUL sponsors various activities and programs in order to create daily or special
brand related interactions with general public. AMUL has sponsored following
activities and programs:
• Amul SaReGaMaPa Contest
• Amul Dance India Dance Lil Masters
• Amul MasterChef of India Contest (Exhibit 7)
• Amul Slogan likho Disneyland dekho contest
• Amul’s Amulya fly to Bangkok contest

Exhibit 7: MasterChef India sponsored by Amul

4. Public Relations and Publicity:
It helps in promoting a brand through press releases, news, public appearances, etc. It is a
non-paid form of marketing communication tool.
• Annual Reports: Amul presents its Annual reports in order to show its position in the
market and ensuring that the organization is working for its stakeholders’ value
creation.

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 • Press releases: Press releases are a platform for Amul to put forward its opinion or
internal working plans for the general public’s trust assurance. (Exhibit 8)

Exhibit 8: Amul’s Press release in response to a rumor in the marketplace

Page 11 of 19
5. Online and Social Media Marketing:
Activities and programs designed to engage customers to raise awareness or increase sales,
conducted on online and social media platforms are referred to as online and social media
marketing.
• Websites
• Facebook, Twitter, Instagram, YouTube Channel and Videos (Exhibit 9)
• Display ads

Exhibit 9: Amul’s Website colorful and attractive and National Milk Day bike
rally in remembrance of Dr. Kurien

Page 12 of 19
6. Personal Selling:
It helps organizations in strengthening the relation ships with the end users. It also gives an
insight through recommendations after usage by the end users for changes in the product or
service.

RS Sodhi, Managing Director at Amul said that Amul spends less than 0.8% of its annual
turnover on advertising.
AMUL’s success in marketing communication lies in majorly 2 distinctive features:
1. Umbrella Branding: It promotes the brand first and then its product range. It helps in
developing a quick identification and recall capability of the brand in minds of the
customers or prospects.
Though Umbrella Branding has a disadvantage of non-identification of the product,
but the purpose of creating brand equity can be met.
2. Amul’s Mascot: It is a mascot who has developed likeability of the prospects and
customers and thus the target market is able to develop a connect with the marketing
communication of Amul.
Amul’s mascot is also able to case on AMUL’S TOPICAL STORY: the posts which
it makes on recent happenings and news.

Page 13 of 19
 Suggestions for future Promotional Activities

• The “Taste of India” ad which ran on TV had a very national appeal. It conveyed the
message of quality products at an affordable price.
“Har Ghar Amul Ghar” ad was a three-minute ad which ran only on YouTube. It had
slice of life communication strategy. This ad was basically to outreach new generation
of consumers. It was shared on various social media platforms like Facebook &
Twitter.
More such ads need to be developed as there is no continuity in previous TV
campaigns other than tropical.
AMUL should aim to spend more on advertisement as the total advertisement
expenditure is even less than 1% of net revenue when it is around 14% for Unilever,
8% for Nestle & Britannia and for Cadbury it is about 10%.
• There is poor interaction among the retailers and distributors of AMUL.
• The retailers demand products on Credit basis. For the retailers who used to work
with Amul previously were not satisfied with their late delivery. Local Competitors
provide delivery within 2 hours. Not so good brand image among retailers because of
lower margins associated with products.
• AMUL must focus on better HoReCa penetration which includes identifying and
approaching few restaurants and hotel in order to pitch Amul products.
This also requires taking constant feedback from the managers of these hotels and
continuously approaching in order to convincing them to replace other brands with
AMUL.

Page 14 of 19
Future Strategy that are worked by Amul

• Amul is set on launching innovative programmes like “cow to Consumer”. It is aimed

at making the diary sector “contemporarily cool”. This programme will be of
immense important in the near future.
The consumption of per capita milk is rising in India at the rate of 2% and due to
urbanization, the youth is shifting from villages to cities which leads to a situation
where there will be less production as compared to the demands. So, the programme
is aimed at modernizing diary farming in order to attract youth. (
https://www.business-standard.com/article/pti-stories/amul-plans-innovative-
programmes-to-make-dairy-industry-117120300150_1.html)

• It is also going to launch around 40 to 60 new products in the next two years. Mostly
the products will be in the high margin zone. Despite the plans to introduce a great
range of product the company still wants to be a diary company and will launch
products related to the segment. (https://www.business-
standard.com/article/companies/from-cookies-to-sweetmeat-amul-plans-40-60-new-
products-in-two-years-119082500774_1.html)

• Amul has also launched Amul Tru which is it brand for fruit juices. As the industry
for health drinks is rapidly on rise and juices has a large share in it. But it has added
milk solids in their juices. So, the strategy of the company to not diversify out of diary
products is still maintained.
(https://www.theweek.in/theweek/business/2019/05/03/how-amul-plans-to-go-
beyond-dairy-sector.html)

• GCCMF the owner of the brand Amul is en to keep its position as the global player
So to make its presence make sound it was the main sponsor of the New Zealand
cricket team for the champions trophy in England. It was a high visibility for Amul
and also a nice strategy to align with the diary capital of the world. It was also the
official sponsor for Indian Rio contingent for the Olympics 2016.
(https://www.rediff.com/business/report/amul-from-taste-of-india-to-taste-of-the-
world/20170621.htm)

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 Individual Contribution and learning

Anmol Thaiya (191209)

Contributed in Industry overview
Learnings:
This project on amul, gave me the opportunity to learn more about the sales promotion
techniques used by the company to increase awareness among the customers, thereby
increasing overall sales. It also helped me in exploring more about various IMC techniques
used by several companies as their marketing strategy. This analyses also provided me with
the thorough understanding of the dairy industry, distribution channels, competition in the
market and the strategic planning done by company for sales promotion while bringing a new
product in market.

Divyesh Jain (191222)

Contributed in content development and compilation part of project
Learnings:

• This assignment helped me in understanding key advertising and IMC practices in

real business.
• It also helped me in understanding effectiveness of IMC in promotion strategy of
company
• By exploring for assignment I also had a chance of understanding IMC promotion
strategy of its competitor group companies and its pros and cons.

Palak Jain (191235)

Contributed in IMC tools and technique part of project
Learnings:
The project helped me providing following industry insights:
• Promote the brand or the product category first and then the product.
• Design your advertisements which grab the attention and convey the message of the
brand.
• Integrate all your marketing communication tools and techniques to a designed
objective.
• Always keep your media presence up-to-date in order to develop a market presence.
• Change your marketing communication mix according to the trends in the market,
switch to social media platforms more if your target audience has an access to it and
do away with traditional communication mediums.

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Shashwat Shrivastava (191248)
Contributed in Suggestions and recommendations part of project
Learnings:
Through this assignment of Marketing Management on Integrated Marketing
Communication, I learned that how brands use different channels for the most effective
marketing communication possible. Also, I gained some insights in different strategies used
by AMUL. Moreover, this project also gave me the opportunity to study the dairy sector and
understand its distribution complexities, as this industry mostly has a huge product and brand
base. I also got to know the issues faced by the company and suggesting measures to
overcome such problems. Overall, this assignment was insightful and had a practical
learning experience.

Vishakha Tantia (191262)

Contributed in Suggestions and recommendations part of project
Learnings:
This project helped in getting how the company strategizes for their future in accordance to
their competitions and the industry they are in. The growth of the industry also leads to new
entrants in the market makes company to market and diversify to maintain the position and
the share it has in the market. The different types of tools and techniques that can be used in
doing the same.

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 REFERENCES

https://www.researchgate.net/publication/324558638_Context_and_Humor_Un
derstanding_Amul_advertisements_of_India

https://www.managementstudyguide.com/integrated-marketing-communication-
tools.htm

https://www.google.com/search?q=press+release+of+amul&rlz=1C1RLNS_enI
N747IN747&source=lnms&tbm=isch&sa=X&ved=0ahUKEwijiqjM8eTlAhUa
63MBHaJ4A_cQ_AUIEigB&biw=1366&bih=625#imgrc=JIPADYua3l6wSM

https://www.slideshare.net/rahulpillai374/amuls-communication-strategy-a-
report

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 7. UNDERTAKING

To Whom It May Concern:

We, Anmol Thaiya, Divyesh Jain, Palak Jain, Shashwat Shrivastava, Vishakha Tantia hereby
declare that this assignment is our original work and is not copied from anyone/anywhere. If
found similar to other sources, we shall take complete responsibility of the action, taken
thereof by, Prof. Himanshu Chauhan

Group No. : 9
Section : B
Batch : MBA – FT (2019-2021)
Date : 13th November, 2019

Signature

Name Anmol Thaiya Divyesh Jain Palak Jain Shashwat Vishakha

Shrivastava Tantia

Roll No 191209 191222 191235 191248 191262

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