Amul final

AMUL BUTTER

PRODUCT AND BRAND MANAGEMENT

PROF. JAYANTA SENGUPTA

Submitted by:

726 Jenisha Eugene

731 Kenil Shah

734 Sayyed Masood Quadri

736 Mita Mandawker

752 Shreya Bhalavat

758 Twinkle Chheda

Amul The Taste of India!

Product name: Amul Butter

Utterly Butterly Delicious...Amul

Character/ Mascot: The Amul moppet has been the mascot of Amul since 1967 sporting a young girl in red polka dot frock.

Amul as a brand name is familiar to almost every individual in India, Amul is known for its

quality products purity and hygiene. For over more than the past 50 years, Amul has been

serving the consumers of India with a variety of quality products. Amul follows a business

model to provide products to customers which provides 'value for money' to the consumer.

Amul has enjoyed its status of market leader in products like butter, cheese and dry milk, by

providing customers with quality products at competitive prices. It is one of the largest food

products manufacturing organization of India. It is a Dairy Cooperative of Gujarat, also known

as The Gujarat Cooperative Milk Marketing Federation Limited (GCMMF).

Amul has brought a significant change in social and economic situation of our rural people. The

Dairy Cooperatives have helped to bring an end to the exploitation of farmers and has

increased the level of benefits to our rural producers of milk.

The turnover of Amul during 2012-13 was US$ 2540 million. Amul's Total Quality Management

ensures that the quality of products meets its standards right from the starting place of milk

producer through the value chain until it reaches the consumer thus Amul is trying to provide

value to its customers which not only satisfies the customer needs but delights the customer.

Amul has time and again came up with innovative advertising which has helped Amul to

develop itself as a brand which appeals people with assurance of its quality. The creative

advertisement of Amul has created a position of its products which is generating higher sales

for Amul. For 30 odd years Amul's Utterly Butterly girl has managed to keep her fan following

intact, the advertisements are now ready to enter the Guinness Book of World Records for

being the longest running campaign ever.

Business Mission

Amul has prepared a comprehensive roadmap in order to guide that the dairy cooperatives of

Gujarat to have a group turnover of Rs. 27000 crores by the year 2020. The company is planning

on its expansion and through expansion the company will create fresh avenues for growth by

catering to the rising demand for new products, this would include increasing the capacity for

major product categories including milk powders, butters, Ice-cream, paneer, cheese, curd,

ghee and other dairy products. The company is planning to double its processing capacity of its

plants to 20.7 million kg per day.

WHAT NEED DOES AMUL SERVE?

Amul brand is not built as a product but as a movement to make India the largest milk producer

of the world. The core values of the company are:

To provide remunerative returns to the farmers

Give the best quality product to the consumer

And at the best possible price

SALES TURNOVER

The sales trend followed by Amul, as an entire entity, is an upward trend. This shows that the

company has been gaining profits since past many years, leading to a widespread in the Indian

markets and the minds of the consumer. Amul has been able to deliver its products in the

remotest parts of the country and hence the sale is continuously increasing since past many

years.

Sales Turnover Rs (million) US $ (in million)

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

MARKET SHARE OF AMUL

Formed in 1946, Amul is jointly owned by 3.03 million milk producers in Gujarat. Amul spurred

the White Revolution in India which in turn made India the largest producer of milk and milk

products in the world. It is also the world's largest vegetarian cheese brand.

Amul is the largest food brand in India. It is selling milk and other products through 6500 outlets

across the country.

The brand positions itself as a brand of both masses and classes, unlike competitors like

Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of

milk and dairy products The country's largest dairy cooperative, Gujarat Co-operative Milk

Marketing Federation's (GCMMF), that markets its products under the brand name Amul,

turnover for the 2012-13 fiscal is likely to touch Rs 13,750 crore.

According to provisional figures, the cooperative has registered an 18 per cent growth in its

annual turnover compared to the previous fiscal.

Amul owns 88 percent share in butter market and 75 percent in cheese share market. Amul is

the market leader in Rs. 600 crores cheese market in India with 65-66% share. 63% share in

infant milk and 45% market share in dairy whitener. Amul also enjoys a 26% share in the

25,000-crore packaged milk market. Sales of Amul Milk pouches grew by 34 per cent. Sales of

Amul processed cheese showed a consistent growth rate of 29 per cent and Amul beverage

which includes flavoured milk, buttermilk and lassi grew at 28 per cent over the last year. Sales

of Amul Masti Dahi grew by 39 per cent. With expected growth rate of 20 percent, 12% growth

rate can be attributed to price rise and another 8 percent to rise in demand for dairy products.

The cooperative aims to grow milk procurement during FY14 by around 10-12 per cent.

AMUL BUTTER

CUSTOMER BASED BRAND EQUITY MODEL

The premise of this model is that the power of the brand – Amul lies in what customers have

felt, seen and heard about the brand over time. The power of brand resides in the minds of

customers.

RESONANCE

A VERY HIGH BRAND

LOYALTY AND

ATTACHMENT

CULTURALLY ROOTED,

INDIANNESS, TRUSTED

CATERING TO NEED OF ALL THE

SEGMENTS

HIGH QUALITY AND

CREDIBILITY, HIGHLY

CONSIDERED BRAND FOR

BUTTER

FEELINGS HUMORUS AND FUN,

TOGETHERNESS,

EMOTIONAL CONNECT

HIGH BRAND AWARENESS, GENERIC NAME FOR BUTTER

JUDGEMENTS

SALIENCE

PERFORMANCE IMAGERY

WHAT NEED DOES IT SERVE?

Spread: On Bread, Parantha, Roti, Nans, Sandwitches.

Topping: Pav Bhaji, Dals, Soups, Salads, Dal, and Rice.

Ingredient: Biscuits, Cakes, Breads.

Cooking Medium : Butter Paneer Masala, Butter Corn Masala and thousands of delightful

recipes.

Also Amul Butter is available in segments like Kirana Store / Modern Format store / Amul

Parlors / Hotel & Restaurant segment / Railway and Flight Kitchen etc.

DESCRIPTION OF MARKET:

SIZE IN VALUE AND VOLUME:

Currently, Amul has 88 per cent market share in the approximately Rs 600-crore butter

segment. Amul is taking initiatives to expand it share and plans to come up with smaller size

packs in the segment. Amul has preserved its market dominance by keeping consumers prices

unchanged for the last four years and forcing others to follow suit. The other reason for Amul

selling more — despite offering lower retail margins — is strong consumer pull, resulting from

its brand being virtually synonymous with butter.

GROWTH RATE:

The sales of Amul butter grew by 18 per cent. Sales of Amul Butter showed an impressive growth rate of 26 per cent. The growth rate is continuously showing an upward trend.

AAKER’S MODEL OF BRAND MAPPING

Like other brand mapping tools, this system helps you to clearly define a brand and position its

product. Once a brand is mapped, this system goes on to track performance against competitor

brands, reporting progress against key performance metrics that aid diagnosis of each reported

brand’s strengths and weaknesses.

It represents what the brand, Amul stands for and offers to customers.

MARKET DISPERSION

BREADSPREADS Amul Butter, Amul Lite, Delicious Table Margarine

CHEESE RANGE

Amul Pasteurized Processed Cheddar Cheese, Amul Processed

Cheese Spread, Amul Pizza (Mozarella) Cheese, Cheese, Amul

Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly

Delicious Pizza

FRESH MILK

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised

Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim &

Trim, Amul Cow Milk

UHT MILK RANGE Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza

1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

MILK POWDER

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea

and Coffee Whitener

MILK DRINKS

Amul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool

Koko,Amul Kool Milk Shake, Amul Kool Chocolate

Milk,Nutramul Energy Drink

HEALTH DRINKS Stamina Instant Energy Drink

BROWN BEVERAGE Nutramul Malted Milk Food

CURD PRODUCTS Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,

Amul Lassee, Amul Flaavyo Yoghurt

PURE GHEE Amul Pure Ghee, Sagar Pure Ghee

SWEETENED

CONDENSED MILK Amul Mithaimade

MITHAEE RANGE Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul

Basundi,Avsar Ladoos

ICE CREAM Sundae Range, probiotic,sugarfree and probiotic

CHOCOLATE AND

CONFECTIONARY

Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul

Chocozoo, Amul Bindass, Amul Fundoo

KEY COMPETETION AND THEIR PERFORMANCE

MOTHER DAIRY:

Area of competition: In milk and has big plans for cheese, ice cream and butter.

Mother dairy has approximately 10% market share in its butter segment.

Mother Diary dared to go different in their advertising campaigns as almost 60%

of butter consumption is done by kids, so Mother Diary wanted them to sit up

and take notice of their company. Almost all the companies in butter market are

targeting adults instead of children this way the company has differentiated

itself.

BRITANIA

Area of competition: Cheese, butter mainly.

Britannia expects to have an estimated market share of 38%.

Britannia came up with Milkman Butter in the year 2000. This product is

processed using advanced dairy technology. Its formulation ensures easy spread

ability even at a lower temperature.

NUTRALITE

Area of competition: Butter substitute Margarine.

Performance: Zydus, with its product Nutralite, claims to have garnered a 75 per

cent share of the "butter alternative" market. Nutraliteis a table margarine and

is widely used as a substitute of butter all over the world by strengthening its

presence in the healthy dietary supplement segment

Market Share of Amul:

The brand positions itself as a brand of both masses and classes, unlike competitors like

Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of

milk and dairy products, posted sales of Rs 11,670 crore for the year ended March 2012,

almost 55% more than Nestle India’s Rs 7,541-crore sales.

Amul owns 88 percent share in butter market and 75 percent in cheese share market. Amul is

the market leader in Rs 600 crores cheese market in India. It also has 63% share in infant milk

and 45% market share in dairy whitener. Amul also enjoys a 26% share in the 25,000-crore

packaged milk market.

With expected growth rate of 20 percent, 12% growth rate can be attributed to price rise and

another 8% to rise in demand for dairy products.

Market share of Amul:

Category Market Share Market position

Butter 88% 1

Milk powder 40% 1

Cheese 75% 1

Ice-cream 25% 2

Sweets 50% 1

Chocolate drinks 90% 1

Chocolates 10% 3

PRODUCT LIFE CYCLE:

Amul Butter has been the market leader in the butter category since past many years. The

competition has failed to beat Amul’s leadership in the butter category. The Product Life Cycle

curve of Amul Butter shows that Amul Butter is at its maturity stage. Diagrammatically, it could

be represented as:

SALES VOLUME AND HISTORICAL PERFORMANCE OF AMUL:

GCMMF posted a turnover of Rs 11,668 crores in 2011-12 fiscal, which was 20 percent higher

than Rs 9,775 crores in the previous fiscal. GCMMF, which is based at Anand in Gujarat,

processed 14.5 million liters of milk per day in 2011-12 and has planned to increase the

processing capacity to 18 million liters a day by 2018 to meet future demands.

This is the historical sales value turnover of the brand Amul:

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

GCMMF, which markets products under the Amul brand, posted 18 percent jump in turnover at

Rs 13,735 crore for 2012-13.The federation had posted a turnover of Rs 11,668 crores in the

previous fiscal, and it expects to hit Rs 17,000-crore turnover in 2013-14.

Plan for 2013-14 includes further expanding distribution reach to 700 new markets with

addition of more distributors and super-stockiest. GCMMF would seek to achieve turnover of Rs

17,000 crores in 2013-14. Exports have risen from Rs 95 crores in 2011-12 to Rs 140 crores in

2012-13, and we are targeting exports of Rs 300 crores in FY 2014, of which up to Rs 90

croreshas already been achieved.

AMUL BUTTER : ‘UTTERLY BUTTERLY DELICIOUS’

CUSTOMER BASED BRAND IDENTITY PRISM

Brand identity is required because the more meaningful people find your marketing, the more

they will be willing to pay for your stuff, and the more loyal they will become to your brand.

They will make more of an investment in your brand emotionally, and they will be more

motivated to choose it and spread the word about it.

This model shows that, for Amul through its Personality tried reaching its Customers which

reflects the value proposition perceived by customers. In doing so, Amul goes through Rational

Route of Physique and Social and Emotional Route of Culture and Self-image.

Marketing mix of Amul:

PRODUCT

AMUL BUTTER was the first product which was officially launched by AMUL in 1945.It has been

a market leader during the last 4 decades.

AMUL BUTTER

Amul Butter is made from Butter, Common Salt, permitted natural colour- Annatto

Special Features:

Made from fresh cream by modern continuous butter making machines.Marketed in India since

4 decades.

Product Specification:

Meets AGMARK standard and BIS specifications No.IS:13690:1992

AMUL LITE

Unlike Butter and Margarine, , Amul Lite is low-fat, low-calorie and low-cholesterol bread

spread and hence a healthier substitute. It contains 26 % less fat and calorie content as

compared to butter and margarine.

Special features:

Since Amul lite is low in calories one can maintain slim trim shape without sacrificing on taste.

Amul Lite is a low fat , low cholesterol product and less cholesterol means less chance of heart

disease. Amul Lite is low in saturated fats and high in “PUFA” for a healthy heart. Amul Lite

contains “Omega-6 & Omega-3 fats” which help to maintain healthy cholesterol levels. Amul

Lite is fortified with vitamins A & D essential for good vision and healthy skin. It is manufactured

in a fully automated, ISO9000 certified plant with strict hygiene conditions.

Product Specification:

The product is certified by AGMARK for quality.

AMUL DELICIOUS TABLE MARGARINE

Table Margarine is characterized by a physical consistency similar to butter and is commonly

known as butter-substitute. Margarine is prepared exclusively from vegetable oils and fats.

Special features:

Contains Zero Cholesterol and fortified with Vitamins A & D.

Product Specification:

Delicious Table Margarine is a preferred choice for people with cardiac ailments due to zero

cholesterol level. This is widely used as a low-cost substitute for butter .Manufactured in an ISO

9000 certified plant under strict hygienic conditions. The product is completely untouched by

human hand.

PRICE:

Amul Pricing Strategies

At the time when Amul was formed, consumers had limited purchasing power, and modest

consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price

strategy to make its products affordable and attractive to consumers by guaranteeing them

value for money.

Despite competition in the high value dairy product segments from firms such as Hindustan

Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which

Amul introduces its products is consistent with the core philosophy of providing butter at a

basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its

brand image in the household sector of the society. It has a totally market oriented pricing

strategy.

PLACE:

A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"

status. GCMMF has received the APEDA Award from Government of India for Excellence in

Dairy Product Exports for the last 11 years.

Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,

Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter

Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the

Japanese markets. Other potential markets being considered include Sri Lanka.

PROMOTION:

Initial Promotional Strategy

The butter, which had been launched in 1945, had a staid, boring image, primarily because the

earlier advertising agency which was in charge of the account preferred to stick to routine,

corporate ads. They didn’t help in creating a brand image of AMUL butter which was their then

motive. Amul’s management thinks that:

“When people think of butter, the first picture that comes in mind is of that little girl in red and

white frock, holding a packet of Amul Butter”

Advertising :

Amul – A taste of India

However in 1966, a man named Sylvester Da Cunha(MD of ad agency ASP) clinched the account

of Amul butter, who along with his partner Eustace Fernandez decided that what they needed

was a girl who would worm her way into heart of a housewife. And who better than a little girl?

Thus came the idea of Amul moppet.

For initial years the thumb-sized moppet starred on hoarding mesmerizing people with her

witty, catchy humorous one-liners. It was from 1969 Amul began playing the role of a social

observer. And over the years the campaign acquired all that Amul touch. Amul campaign is a

unique marketing device . Giving the brand a caricature, an emblem, a finite identity and then

bringing it across with humour , satire , and sarcasm to reflect current affairs , has been most

innovative . It is a departure from the straight-in-your face pronouncement of the product. It

thereforefor has a threefold effect as opposed to perhaps one in all the others- the brand, the

humpur and the topicality.

Amul’s Marketing Strategy:

In order to maintain costs at lower levels, Amul India has never spent more than 1% of its

budget on advertising. However it has still been successful in creating the same impact, it

created 60 years ago through its simple yet appealing ad campaigns.

Talk about universally recognizable Brands grown in India, and one prominent contender is the

Amul mascot, a cute and chubby girl usually dressed in a polka dot. Over 45 years of existence,

the brand has always given a fresh flavor to Amul Mascot.

Amul Product’s Packaging:

Amul’s marketing strategy has always been consumer centric. Thus it is kept in mind that the

packaging of all Amul products appeals to the emotional side of the consumer.

Information

Also the need to highlight the nutrient value and best possible use of the product is an

important feature of all Amul products packaging.

Use of Information in Amul’s packaging

Amul’s Branding and Promotion:

The Amul mascot, a cute and chubby girl usually dressed in a polka dot dress, is universally

recognisable in India. And the tagline, ‘Utterly Butterly Delicious Amul’ is just as catchy.

Together, these two elements are a fantastic combination of brand elements for Amul. And get

this, the Amul mascot has been the same since its inception in 1967. That’s almost 45 years ago.

But the Amul girl is still as relevant as ever.

The Amul girl was the brainchild of Sylvester da Cunha, the managing director of the advertising

agency AS. The ads were designed as a series of hoardings with designs relating to day-to-day

issues. The beauty of these ads is that instead of using a celebrity, a character was created from

scratch and associations built around it. The brand recall for the Amul girl is phenomenal across

India today. And the biggest reason for this is the topical nature of the ads.

The Amul ads have witty one-liners which capture relevant events that have caught the fancy of

the nation. This instantly creates a connect with the populace and helps them to identify with

the brand in a surrogate manner. Apart from this, the humour is incisive and funny. The style of

drawing is also very distinctive, and there is instant recognition of the brand without even

needing to take a close look. All in all, the Amul girl has become iconic in Indian advertising.

While today’s advertising revolves around creating stylistic ads and abounds in celebrity

endorsements, Amul is like a breath of fresh air that has held onto its roots and yet managed to

stay relevant over the years. Kudos to this very Indian brand!

Advertising campaign of Amul:

Advertising campaigns for Amul turned around in 1966 when Sylvester da Cunha, then the

managing director of the advertising agency, ASP, clinched the account for Amul butter. The

butter, which had been launched in 1945, had a staid, boring image, primarily because the

earlier advertising agency which was in charge of the account preferred to stick to routine,

Corporate ads.

Sylvester da Cunha designed an advertisement campaign as series of hoardings with topical ads,

relating to day-to-day issues. Thus was born the Amul Moppet, a little girl who would warm her

way into a housewife’s heart. Amul since then have been following different promotion and

advertising campaigns with Amul moppet taking central role in the advertisements.

Amul advertisements:

Uses a variety of media to communicate - Most famous is billboard campaigns using

Amul moppet and topical ads.

Call her the Friday to Friday star because Every Friday, since 1967, this little girl appears

at billboards, strategically placed all over India, focusing on the item of the week –

tongue in cheek, of course.

Amul food festival, which has been held for the last four year between October

and December in about 50,000 retail outlets.

The Chef Of India promo invites hotel chefs to come up with recipes using as

many Amul products as possible, and is conducted at city, state and national

level. There are no boundaries and nothing is off limits.

From the political scene, to entertainment, from local news to international, from sports

to stars, Amul moppet has a line for everything.

Often said to be playing the role of a “social observer with evocative humor”, the

billboards became, and still are, a topic of conversation amongst millions. With their

“hing-lish” (a combination of Hindi and English) punch-lines, they have won the

maximum number of awards in India for any ad campaign ever.

This little thumbelina seems to have the masses, right where she wants them – wanting

more of her and of Amul. No other brand comes close to what Amul has been able to

accomplish.

The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness

records for being the longest running ad campaign ever.

Some of the ad campaigns of Amul are as follows:

Analysis of competitors:

BRITANNIA BUTTER & PASTEURISED BUTTER

Britannia Butter is known for its rich yellow butter color, great taste, and excellent spread-

ability, even after refrigeration! It is made by churning fresh cow's milk, Britannia butter can be

used as a spread on your breads, or as a dollop on your paranthas, or in baking, sauce making

and frying. Though it contains milk proteins, fat and water, Britannia Butter remains solid (yet

spreadable!!) when refrigerated, softens at room temperature and melts to a thin liquid

consistency at 32-35degree celcius.

Place:

Britannia had started selling products in India, but now it has expanded overseas to places like

Middle East and Sri Lanka.

They have even started to export their goods to places such as: USA ,Ghana, Saudi Arabia,

Kuwait, Bahrain, Qatar, UAE, Oman, Seychelles, Singapore,

Price:

Britannia has adopted the Market Penetration Method of pricing. It focuses on the quality of

the products keeping in mind the pricing strategy. This helps improve and generate large sale

volume for their products. It aims at maximizing the market share and to produce new product

lines.

Promotion:

Britannia came up with an ad campaign for dairy products after a very long time, in 2012. In it

Britannia decided to concentrate on the cheese and milk – the areas where the market leader

in diary category butter was not particularly strong.

It is now taken for granted that overthrowing Amul from the butter market would be a really

tough task. Hence Britannia is concentrating on the next best thing where Amul is still a bit slow

– Cheese and Milk. The cheese market has been proven to be huge especially in western

countries. However, consumption pattern of Indians is still more inclined towards Butter.

Furthermore, recently the wellness streak has brought down the sale of both – Butter and

Cheese. Thus companies like Britannia which are 2nd in these products would like to be on top

through advertising their products.

Zydus Cadilla Nutralite

Nutralite is table margarine. The brand was then launched with a controversial positioning

“Better than Butter ". The slogan prompted Amul to take the issue to ASCI which directed Zydus

to substantiate the claims in their future campaigns.

Product:

Nutralite has less cholesterol and does not contain hydrogenated fats compared to butter. It

also has PUFA (poly unsaturated fatty acid) and MUFA (monounsaturated fatty acids) which are

known cholesterol fighters.

Place:

It is available in all retail outlets across the year. The reach in the entire market has been quite

extensive.

Promotion:

The brand was launched with television commercial showing the husband indulging in Aalu

Paratha without being worried about health. The controversy over the slogan - better than

butter has prompted the brand to slightly alter the positioning to: Healthier than Butter.

The brand is now running a high decibel campaign featuring Sathish Shah. The message of the

ad is to encourage the consumers to indulge in food without worrying about health. The brand

is targeting the ladies in the households who are worried about their husband's health.

The direct attack on butter will definitely catch the attention of the consumer. Convincing the

consumer to opt for Nutralite instead of butter is not an easy task. Firstly the brand has to

convince the customer that the good old Amul Butter is unhealthy. Second it has to achieve

parity (Points of parity) with butter. Then it has to convince the customer that Nutralite is

indeed healthy. Hence the brand has no other alternative but to directly attack butter. The high

profile launch of Nutralite may also see an emergence of margarines as a new product

category.

Mother Diary

Product:

Mother Butter is creamier, tastier and spreads easily. Mother Dairy Butter is produced under

totally hygienic conditions using Mother Dairy's wholesome milk.

Place:

Mother Diary is available at all the retail outlets across the country.

Promotions:

For butter, Mother Diary focuses on children. Mother Diary dared to go different in their

advertising campaigns as almost 6% of butter consumption is done by kids, so Mother Diary

wanted them to sit up and take notice of their company. Almost all the companies in butter

market are targeting adults instead of children this way the company has differentiated itself.

For kids, Mother Diary came up with Makkhan Singh, a sturdy jovial cow (a cartoon character)

as its brand ambassador.

Mother Diary has been carrying out school programmes – games and activites involving

Makkhan Singh in all the major metros.

Analysis Of Prices

Below is the analysis of the pricing strategies adopted by the suppliers in the market:

It is observed that the pricing strategy of the competitor brand is more like a “me too” brand.

This also means that the prices do not vary much between the brands.

It is also seen that variable costs in the form of Transportation & Distribution have gone up over

the years which mainly adds to the overall pricing.

A known fact encountered in the research is that, since Britannia is comparatively new brand it

is not preferred over Amul. The price of Britannia is such that it is above all other brands which

adds to its low consumption.

Brand 100 gm (INR) 500 gm (INR)

Amul 32 157

Britannia 33 155

Mother Diary 31 152

Nutralite 28 135

Analysis of target consumer’s survey:

A field research was conducted by taking a sample size of 30 customers, all of which were

females. The reason behind targeting females as the sample size was that, it was observed that

usually females are the influencers of purchase of butter for their household. The findings of

the field study are mentioned along with the analysis of it:

Q.1. Do you use butter?

It was found that all the samples for the survey used butter, for some or the other purpose.

Q.2. What kind of butter do you use?

Majority of the customers consumed salted butter for their consumption. Low fat and low

cholesterol butter was rated as second most used butter by the people surveyed.

0

5

10

15

20

25

30

35

Yes No

0

5

10

15

20

25

Salted Low fat, lowcholestrol

Pasteurised Others

Q.3. What is your reason for purchasing butter?

Majority of the customers rated taste as the reason for purchasing butter i.e. they liked the

taste of the butter and hence they purchased it.

Q.4. What brand of butter do you use?

This was an open ended question and majority of the customers said Amul is the brand of

butter that they use.

0

2

4

6

8

10

12

14

16

18

Taste Cost Receipe callsfor it

Specialoccasions

Other

0

5

10

15

20

25

30

35

Amul Nutralite

Q.5. What influenced you the most to purchase the particular brand of butter?

The influencer for majority of the customers was the past experience that they had.

Advertisement showing the small bubbly girl was rated as the 2nd most popular medium of

influence.

Q.6 (A) Identify the brand/s of butter that you have used in past 6 months?

This question was asked to them to analyze the switching behavior of the customers. The

survey, however, resulted in saying Amul was the brand that they used and hardly switched.

Only 2 customers said they switched from other brand to Amul, but no costumer shifted from

Amul to another brand. This shows strong position of Amul among all its competitors.

0

5

10

15

20

25

30

Advertisements Word of Mouth Past Experience Availability Other

0

5

10

15

20

25

30

35

Britannia Nutralite MotherDairy

Amul Govardhan Other

Q.6 (B) What is the reason for switching?

This question was asked to analyze the reasons why the customers switched. Both the

customers rated non-satisfaction as being the reason for switching between the brands.

Q.7. How often do you purchase butter?

This question was asked to check the frequency of purchase of butter by the customers.

Majority of the customers bought butter when they required, followed by the customers saying

they bought it only once in 3 months.

0

0.5

1

1.5

2

2.5

Not satisfied Health issues Cost Taste Receipe callsfor it

Other

0

5

10

15

20

25

Once in 3 months Once in 6 months Once in a year As per requirement

Q.8. What comes to your mind when you hear the words “Amul Butter”?

This was another open ended question which was asked to know what customers related to

Amul Butter. Majority of the customers related Amul with its mascot girl in white frock with red

polka dots. Taste and delicacy was 2nd most rated attribute when they heard about Amul

butter.

Retailer’s insights:

As a part of our field research, we also visited 3 retailers and these are their insights:

Majority customers ask for Amul. The reason being it is an old brand and people feel its reliable.

Since Amul is a cooperative firm its reasonable and affordable by everyone. Hence people

prefer Amul.

Also Britannia is 2 -3 Rs expensive and people are not aware about Nutralite being margarine.

8%

22%

3%

16%

6%

11%

5%

11%

5%

3%

5%

5% Delicious

Amul girl

Food is incomplete without it

Taste and delicacy

Trusted brand

Taste of India

Pure

Utterly Butterly Delicious

Quality

Nothing really

Best

Perfect combination for bread