Increasing prices of raw materials, demand for dairy products in emerging markets and the drive for health and wellness, are putting pressure on dairy manufacturers to develop innovative but cost effective products. Key growth strategies for many of the top companies include strengthening brand portfolios and expansion in growth markets such China and India. The Top 10 Dairy Companies is a report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the dairy industry. This report identifies the product areas that the top 10 players are seeking to develop and also highlights the respective markets where each individual company is looking to grow. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world’s leading dairy companies. Benchmark your performance against the leading dairy companies using market share and financial data in this report... Key findings from this report... -The global dairy industry is highly fragmented, with the top 10 companies representing about 22.4% of the total market size in 2006. -The global dairy market reached $402.5bn in 2006, representing a five-year CAGR of 3.7% and it is forecast to reach about $487.2bn in 2011, representing a five-year CAGR of 4.9%. -The leading dairy companies are focussing innovation on organic and functional dairy. Other latest developments have included products that are low fat, contain natural ingredients and no preservatives. -Nestlé was the global industry leader with a 5.0% market share in 2006, followed by Danone (2.5%) and Dean Foods (2.4%). -Parmalat’s dairy business recorded revenues of R3,546m ($4,861m) for the fiscal year ended December 2007, an increase of 6.1% over 2006. Higher revenues in fiscal 2007 were mainly due to higher sales volume in Canada and Italy. The dairy revenues accounted for 91.8% of its
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Increasing prices of raw materials, demand for dairy products in emerging markets and the drive for health and wellness, are putting pressure on dairy manufacturers to develop innovative but cost effective products. Key growth strategies for many of the top companies include strengthening brand portfolios and expansion in growth markets such China and India.
The Top 10 Dairy Companies is a report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the dairy industry. This report identifies the product areas that the top 10 players are seeking to develop and also highlights the respective markets where each individual company is looking to grow. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world’s leading dairy companies. Benchmark your performance against the leading dairy companies using market share and financial data in this report...
Key findings from this report...
-The global dairy industry is highly fragmented, with the top 10 companies representing about 22.4% of the total market size in 2006.
-The global dairy market reached $402.5bn in 2006, representing a five-year CAGR of 3.7% and it is forecast to reach about $487.2bn in 2011, representing a five-year CAGR of 4.9%.
-The leading dairy companies are focussing innovation on organic and functional dairy. Other latest developments have included products that are low fat, contain natural ingredients and no preservatives.
-Nestlé was the global industry leader with a 5.0% market share in 2006, followed by Danone (2.5%) and Dean Foods (2.4%).
-Parmalat’s dairy business recorded revenues of R3,546m ($4,861m) for the fiscal year ended December 2007, an increase of 6.1% over 2006. Higher revenues in fiscal 2007 were mainly due to higher sales volume in Canada and Italy. The dairy revenues accounted for 91.8% of its consolidated revenues in 2007.
Some key issues answered by this report...
-Growing demand for dairy products in Asia is driving global milk prices. The increase in demand has been fuelled by population growth, increases in personal income and Western-style influences on the Asian diet (demand for non-native foods such as cheese slices, yogurt and skimmed milk among young urbanites).
-Contracting European supply of milk. The milk quota system (introduced in 1984) has placed a limit on the amount of milk produced each year by EU dairy farmers. EU-25 milk production declined 0.3% during September 2004–07 and 1.4% in September 2007.
-Adverse climatic conditions in Australia and New Zealand. Australia and New Zealand are the two major milk exporters in the world. In 2005, both countries witnessed a drop in milk production due to adverse climatic conditions, with Australia’s output falling 0.3% and New Zealand down 4.0% year-on-year. Decline in output of world’s major milk exporters will impact the global milk supply and therefore, will lead to a rise in milk prices.
Some key questions answered by this report...
-What are the trends in the global dairy industry?
-Who are the top 11 to 20 companies?
-Which regions and segments offer the leading dairy companies the greatest growth opportunities?
-How do the leading dairy companies compare in terms of financial performance and coverage by country and category?
-What are the key strategies of the leading dairy companies and how do these strategies drive revenue and market share?
This new report will enable you to...
-Benchmark the world’s leading dairy companies with this report’s ranking of the top 10 companies, detailing their financial performance and future prospects.
-Identify and target future growth areas from this report’s analysis of the acquisitions and divestments made by leading dairy companies and their strategies for growth.
-Understand the key trends in the dairy market and the impact that they are expected to have, using this report.
-Enhance your product development strategies with this report’s analysis of the leading dairy companies’ innovation and NPD strategies and recent product launches.
-Create more effective competitive strategies based on this report’s SWOT analyses of the top dairy companies.
-Assess the performance of leading dairy companies, identify their strengths and weakness and learn about their growth strategies with this report...
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Milk was always manufactured and consumed in bulk in India. But with the rise in disposable incomes the demand for milk and related items are on a continuous rise. Milk is said to be among the most important part of the diets of Indian after wheat and rice.
Milk production in India ranges from rural areas to the highly urbanized ones. In the rural areas every farmer having one or two cows or buffaloes yields around -3 litres of milk per animal. India is highly acclaimed for its high contribution of buffalo milk because of factors like high fat content and a host of other nutrients.
India happens to be the highest producer of milk in the world. India contributes almost 65% of the total world buffalo milk. With the advent of modern technology India has risen from an insignificant amount of 200,000 liters per day (lpd) of milk in 1951, to 20 million liters per day in 2010. The country is home to almost 400 dairy plants.
The milk market in India does not have many active brands. The one major brand that has been dominating the diary industry in India since quite a few decades is Amul. Since Indians are very peculiar and choosy about the milk that they consume they do not like to try out other brands. They like sticking to trusted brands and the brand that has definitely occupied a major mind share of the Indian population as far as milk is concerned is Amul. It can easily be called the top milk brand in India.
The undisputed Top Milk Brand in India is Amul. Established in 1946, the company deserves maximum credit for making India the world's largest milk and milk products producer. Evolved over the years as the most preferable liquid milk brand in the Indian subcontinent Amul churns out a turnover of almost ` 8,000 crore annually. According to industry experts the production forecast for the next year happens to be even better with an estimate turnover of` 10,000 crore. The best thing about the brand is that it has not only penetrated the urbanized areas but the rural market as well. Amul apart from milk is the manufacturers of a host of allied products like Ghee, butter, cheese, powder milk, flavored milk, curd, cold coffee, Lassi etc.
Top Milk Brands in India
Amul Paras Mother Dairy Saras Verka Sweet
Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called milma was established in April, 1980 with its Head Office at Thiruvananthapuram for the successful implementation of the Operation Flood ( a dairy programme launched in 1970 under the aegis of National Dairy Development Board(NDDB).The name milma represents:-
2678 Primary milk co-operative societies now functioning as on 31.03.2010 8.31 lakhs farmer members Three Regional Co-operative Milk Producers' Union Thirteen Dairies capable of handling 12lakhs
litres of milk per day Ten Milk Chilling Centres Two Cattle Feed Plants with cumulative capacity of 600MT per day One Milk Powder Plant of 10MT per day capacity A well established Training Centre 5,200 retail outlets
Over 32,000 people working either directly or indirectly for the functioning of milma
Apart from these we serve millions of consumers day-in and day-out.
ABT INDUSTRIES LIMITED (ABTIL) - Dairy Division
Founded in the year ….the Dairy Division of ABTIL procures and processes close to 2, 00, 000 liters milk per day. Uniquely, this is the only Company in Tamil Nadu using 'Procurement of milk through Bulk Milk Coolers' for collecting the entire quantum of milk it procures.
'Sakthi Milk' is marketed in various towns of Tamil Nadu and Kerala. It is the second largest brand in Kerala next to the state owned Co-operative brand.
ABTIL is also manufacturing and marketing value added milk products like ghee, butter, curd, sterilized flavored milk, paneer, etc. Attributing future growth of the division the export of Sakthi to foreign countries has earned significant market response.
It is predicted that in the imminent future there will be a strong market potential for Diary products from India. Bearing this in mind ABTIL has been working towards expanding its facilities by commissioning of advanced milk processing plants, continuous butter making units and milk powder plants.
SRI MAHALAKSHMI dairy was founded by Mr. R. Ponnuswamy,Chairman and Managing Director of the
Aroma Sri Mahalakshmi Group of Food industries in the year 1972 and our brand NameAROMA MILK is a
house hold name in the city of Coimbatore and Tiruppur. Sri Mahalakshmi dairy had a humble beginning in
1972 in a small village called a Telugupalayam, nearby Coimbatore. The dairy was started with an ideological
goal to serve the poor and economically weaker dairy farmers of Coimbatore Dist. and nearby Tiruppur dist.
From the time the dairy started, it has served the farmer community with complete dedication and affection.
The farmers have developed an ever increasing loyalty to this organisation which is reflected in the yearly
growth rate of the company.
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk cooperative societies, 17 member
unions covering 24 districts, and 3.18 million milk producer members.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA.
For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.
The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.
Aavin(Tamil:ஆவி�ன்) is the trademark of the Tamil Nadu Co-operative Milk Producers' Federation
Limited, a Tamil Nadu-based milk producer's union. The aim of AAVIN is to procure milk, process it, chill
it, pack and sell it to the consumers.
Contents
[hide]
1 Etymology
2 History
3 Headquarters
4 Activities
5 Milk Products of AAVIN
6 References
7 External links
8 See Also
[edit]Etymology
Aavin comes from Tamil meaning 'from cow'. So 'Aavin paal' (ஆவி�ன் பா�ல்) translates to cow's milk.
Interestingly the second letter of the Tamil alphabet, Aa or ஆ, is one of the many one-letter words in the
language.
[edit]History
The Dairy Development Department was established in Tamil Nadu in the year 1958 to oversee and
regulate milk production and commercial distribution in the state. The Dairy Development Department
took over control of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers
Federation Limited in the year 1981.
On February 1, 1981, the commercial activities of the cooperative were handed over to Tamil Nadu Co-
operative Milk Producers' Federation Limited which sold milk and milk products under the trademark
"aavin".
With many private companies entering the field of dairy, the Tamil Nadu government is giving high priority
to improve the performance of the cooperatives.Tamil Nadu is one of the leading states in India in milk
production with about 14.5 million litres per day.
[edit]Headquarters
The Tamil Nadu Cooperative Milk Producers Federation (AAVIN) is located
at 13°9′10″N 80°14′40″E Aavin Illam, Madhavaram Milk Colony, Chennai.
[edit]Activities
The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District
Cooperative Milk Producers' Unions.The Federation has four dairy plants at the following locations in
Chennai.[1]
1. Ambattur with a capacity of 4.00 lakh litres per day
2. Madhavaram with a capacity of 3.00 lakh litres per day
3. Sholinganallur with a capacity of 4.00 lakh litres per day.
4. Ambattur - Product Diary.
These dairies collect milk from District Unions, process and pack in sachets and send for sale to the
consumers in and around Chennai City. The Ambattur product Dairy is also engaged in the manufacture
of milk products such as Yogurt, Ice Cream, Khova, Gulabjamoon, Buttermilk, Curd and Mysorepak.
[edit]Milk Products of AAVIN
Aavin produces 4 varieties of milk.[2]
1. Toned milk (3% Fat)
2. Doubled toned milk (1.5%)
3. Standardized Milk (4.5%)
4. Full Cream Milk (6%)
[edit]References
1. ̂ Dairy Development Department, Government of Tamilnadu. "Policy Notes". Retrieved 16 July 2010.
2. ̂ Government of Tamilnadu (11 March 2008). "Press Release Notes". Retrieved 16 July 2010.
[edit]External links
Swot Analysis of Amul
Strengths
1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers.
2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers.
3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do.
4. People are quite confident for the quality products provided by Amul.
5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses.
6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.
Weaknesses
1. There are various big players in the chocolate market, which acts as major competitors restricting their growth.
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2. Lack of capital invested as compared to other companies.
3. Improper distribution channel in India.
Opportunities
1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting.
2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.
equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for Amul butter.
But in recent years in a second wave of ad campaign for Amul products, she has also been used for other
product like ghee and milk.
[edit]Advertising
An Amul butter ad on Pakistan's Kargil Warfiasco. The image shows the "Amul baby" in between George
Fernandes and Atal Bihari Vajpayee.
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to design a
new ad campaign for Amul Butter. daCunha designed an ad campaign as series of hoardings with topical
ads, relating to day-to-day issues.[23] The campaign was widely popular and earned a Guinness world
record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and
script writer Bharat Dabholkar had been involved with sketching the Amul ads; the latter rejected the trend
of using celebrities in advertisement campaigns. Dabholkar credited chairman Varghese Kurien with
creating a free atmosphere that fostered the development of the ads.[24]
Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of
not backing down. Some of the more controversial Amul ads include one commenting on Naxalite
uprising in West Bengal, on the Indian Airlines employees strike, and the one depicting the Amul butter
girl wearing a Gandhi cap [23]
Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream.
[edit]In popular culture
The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the
notable Indian film-makerShyam Benegal to base his film Manthan (1976) on it. The film starred Smita
Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh
rural farmers in Gujarat who contributed Rs 2 each to the film'š budget. Upon its release, these same
farmers went in truckloads to watch 'their' film, making it a commercial success.,[25][26] the film was chosen
for the 1977National Film Award for Best Feature Film in Hindi
Amul’s ads have become the stuff of legend. But behind every great ad, there’s a great client, and Verghese Kurien was one of the best.
Reams have been written on the achievements of Verghese Kurien as an innovator and creator of the milk revolution in India. However, there has been little said on
another facet of his: as an advertising man and the role he played in building a cult brand such as Amul; and how the Amul brand grew to be worth $2.5 billion with its variants and extensions.
If one were to dissect the advertising journey, the differences between him and the other stalwarts in the advertising business today become distinct.
HIRE THE BEST TALENT, NOT THE BEST ADDRESS
Kurien never believed in flashing the advertising agency as a trophy; yet he believed in the most capable talent. He wanted the best brains who believed in the same principles and causes as he did. So the big advertising agencies with the most respected and feared names never stood a chance as they never believed that much could be achieved from bringing farmers together across villages in India to build a business. Low-profile names such as those of K. Kurrian of Radeus Advertising and Eustace Fernandes come to mind for their rapport with V. Kurien.
DELEGATE TO THE MORE CAPABLE
He was the first one to realise that consumer understanding and the hot buttons that click human emotions are no child’s play and are a specialist’s domain. Hence delegation of authority was necessary and this came naturally to him as he believed in the integrity of professionals who worked with him. So when Eustace Ferandes created the Amul moppet and K. Kurrian suggested outdoor as the main medium, Kurien was not convinced but he approved. Later he seldom insisted on seeing the final creations and the executions before they were released. This is a rare quality that differentiates him from the leaders of today who hold on to authority and delegate responsibility.
INNOVATING WITH A FEATURE FILM
This chemistry with the team saw stalwarts such as Shyam Benegal makingManthan which was like a 150-minute commercial outlining the real purpose and commitment of Anand and Amul. Never has this kind of merchandising of an idea been attempted or done successfully. The actors in the film rave, even today, about this social role they performed apart from winning fame and respect. The title song sung by Preeti Sagar is still belted out regularly by Doordarshan and its 23 channels in a commercial avatar, even after three decades of its creation.
PART OF THE BRAND CURRICULUM
The ‘Amul Story’ over the years is part of the syllabus and has been analysed and dissected by the best brains at business schools. It has set benchmarks of defining impossibility and the scope within it. It has defined what true grit, commitment and integrity can achieve. Experts refer to it as the “Sholay of brand-building in India”. Its brilliance lies in the fact that it can be adapted to any situation, and any genre. Its nuances are part of branding folklore and hence it is imperative we acknowledge the architect.
THE BRAND VOICE IS THE FEARLESS CONSUMER VOICE
Another impossible trait that no brand in India has possessed or ever will do. The style, topicality and blatant honesty of the Amul campaign has not changed in the last five decades. It is India’s longest running creative format. The only other one I can think of is the Marlboro communication, which too relied on the outdoor medium as it was a handicapped category in the mainline media. In Amul’s case it was purely by choice. Few would have the guts to take on the establishment in a tongue-and-cheek style as the legendary Amul advertisements. Even during extremely tense times such as the Emergency in the mid-Seventies the brand continued its endeavour in the same unabashed, classy way without flinching.
Over the years this style, format and placement became the common man’s way to express their frustrations. Till today few have challenged the content or the veracity of the issue. This created the buzz around the brand and the obvious favourability when one is fighting multinational giants with deep pockets. This medium with the message amalgam also resulted in the best return on investments vis-a-vis the competing brands.
PROUD TO BE INDIAN
This was a hallmark quality that differentiated Kurien from the very best in the business. He fiercely believed in creating something in India that would be in the world’s showcase. It is this wild desire that led to collecting millions of litres of milk from three million farmers everyday; creation of an umbrella brand called Amul which extended to various other products such as milk powder, ghee, butter, chocolates, health beverages and buttermilk. But the important fact is that it made millions happy everyday and hence evolved ‘The Taste Of India’. This created the much-needed halo Indian brands lacked. Today the Amul story is revered worldwide.
NEVER ASK FOR A PITCH
Another notable trait of Kurien was that he never tested anyone’s ability before awarding the business to an agency. One never heard of him asking for a pitch. This is such a differentiator from today’s norm where business is moving every year and every professional’s ability is constantly under scrutiny which results in the joy disappearing from the place of work
I had the rare opportunity of spending a couple of minutes with the great man at a TV news channel’s function which was to confer a lifetime achievement award. I congratulated him and asked him that as everything seems so right in his life, is there anything in the past that he would like to change or would do differently? He sized me up and said, “Maybe some more butter on my breakfast toast.”
Gopinath Menon is CEO, Melon Media, Crayons Communications Group.
Keywords: Amul ads become the stuff of legend, Ferandes created the Amul moppet, K. Kurrian suggested outdoor as the main medium, ‘The Taste Of India’
Amul has just been ranked as the No. 1 Indian brand by Campaign magazine in its list of Top
1000 Brands of Asia for the third consecutive year. And I’m really excited. Amul is one brand
which truly deserves this accolade. Formed in 1946, Amul is not one of those flamboyant
multinationals but a dairy cooperative, jointly owned by 2.8 million milk producers in
Gujarat. Talk about unity!
Amul has been a stellar example of rural development and has been at the forefront of the
White Revolution in India which has made the country a production powerhouse for milk and
milk products. With an annual turnover in excess of US$1.7 billion, Amul is the largest food
brand in India and has a presence in 40 countries globally. Here’s a mind boggling statistic.
The daily milk collection from Amul’s producer members stands in excess of 9 million liters.
So what makes Amul such an amazing brand? While Amul is synonymous with milk and
butter, it’s product range is quite formidable and inclues ghee, cheese, curd, yogurt,
chocolate, ice cream, shrikhand and many other products. This strategy has allowed it to
reign supreme in the dairy products segment in India. The other thing that works in Amul’s
favour is its amazing network. It has about 50 sales offices pan-India with more than 3,000
wholesale dealers and more than 5,00,000 retailers. That is huge!
But they also have a secret weapon. 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 daCunha, 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!
Rediffusion-Y&R wins Paras DairyBy Anushree Bhattacharyya, afaqs!, New Delhi, October 12, 2011
Section: News Category: Advertising
The agency has won the account through a multi-agency pitch that started in August this year, and witnessed participation from agencies like Grey, Crayons, and a few more.
Rediffusion-Y&R has bagged the creative, as well as the media duties of the popular dairy brand Paras Dairy.
The account was won through a multi-agency pitch that started in August this year, in New Delhi, and
witnessed participation from other agencies lie Grey, Crayons, and a few more. The size of the account,
however, could not be obtained at the time of filing this report.
Prior to this, Percept/H was the incumbent agency on the business.
Confirming the development to afaqs!, Gajinder Singh, managing partner, Paras Dairy, says, "We have
assigned the creative and media duties to Rediffusion-Y&R and TME, based on their credentials of handling
large businesses, as well as the strategic and creative prowess shown by the current team."
So, while Rediffusion will handle the creative part of the business, the media duties will be managed by its
sister agency, TME.
Abhik Santara, vice-president, Rediffusion-Y&R, says, "We will develop the brand architecture from scratch, as
well as work on the mother brand and all sub-brands, both existing, as well as new brands the company will
For the record, Paras Dairy was established by Ved Ram & Sons, in partnership, in April 1986. The first unit of
the dairy business was established in 1987, under the company name VRS Foods. The dairy company
currently sells over 2,50,000 litres of milk per day in Delhi Metro. The dairy company has created a network of
5,000 villages as collection centres for milk across western Uttar Pradesh, Haryana, Rajasthan, Maharashtra
and Gujarat.
NEXT STORY
Devesh Rai calls it a day in Mail TodayTags: Rediffusion-Y&R, Paras Dairy, Gajinder Singh, Abhik Santara, Percept/H, TME
Some reviewing, some innovation – the dairy brand has to do this to stay ahead of the competition.
In its signature style, Amul paid tributes to Verghese Kurien, its founder, saying, “Thank you for giving us Hausla, Pragati and Anand”, punning on how his vision gave all involved courage, progress and happiness. The legendary founder of the almost 50-year-old Amul ensured that the brand was always larger than the person who created it. What lies ahead for the brand that is nearly twice the size of its nearest competitor and has great brand recall? It cannot afford to rest on its laurels, and much needs to be done if it is to maintain its premier position, say observers.
“Kurien built Amul as an organisation but there is no single hero who built the Amul brand. Today it is one of those brands which is not going to be harmed from the outside but can get weakened from the inside,” observes Anand Halve of chlorophyll, a brand consultancy.
While Kurien may have built the organisation from the outside, nurturing the brand and maintaining its dominant position in the foods business is going to be imperative.
It must move with the times and be careful while getting into new categories. After all, its foray into pizzas and chocolates has not been that successful compared to the rest of its dairy portfolio. Keeping this in mind it must innovate quickly and successfully to keep abreast of competitors.
It may face certain hurdles in the future. “There were concerns about the Amul brand when Kurien had stepped down in the company. But the company has been professionally managed and the brand continues to be strong. However, Amul cannot afford to get complacent because of its stature and should think of becoming a global entity if it has to defend itself in the domestic market,” claims Harminder Sahni, Managing Director, Wazir Advisors.
Agrees Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, “Amul has reached deep into the hearts and minds of Indian consumers and it is time it reached out to the hearts and minds of international consumers.”
But there are others who believe that Amul, in spite of its greatness, has done little to re-invent itself with the changing times and continues to remain primarily a ‘cheese and butter’ company.
Raghu Viswanath, Managing Director, Vertebrand Management Consulting, says, “Amul has not re-invented itself and has remained more of a butter and cheese company. It has not done enough to leverage the new categories such as milk and ice cream and even curds where it has just managed to stay afloat with its competitors. It needs to exploit the brand beyond just butter and cheese. While it may continue to record profits and revenues as a company, the brand has lost its sheen over the years and needs to rejuvenate to keep up with the changing times.”
Amul needs to keep track of consumers’ changing preferences as and when it decides to enter new categories. As Halve of chlorophyll warns, “Just like Nokia, which, in spite of being a strong brand, lost out since it could not see consumer preference moving towards smartphones, Amul should not lose sight of the changing times. It may be sitting on a Rs 12,000-crore gold mine but it must have a product range which is going to be exciting for the new consumer.’’
But the rub is that at the same time Amul cannot afford to move away from its core competency of pure milk products catering to the masses. “Getting into pizza was a wrong move as the basic product was bread and not cheese. The same failure was faced by Cadbury when it tried to launch biscuits,” observes Halve.
There could be other challenges such as sourcing and keeping up with the expectations of modern trade. As Damodar Mall, Director, Food Strategy, Future Group, says: “Amul could face challenges on the sourcing side as it is dependent on families to get milk. These families may not like to continue in the same line of business as incomes grow and then Amul might have to look at bigger aggregators to source its milk. Also, the brand may have enough awareness and pull, but it has to look at forging a better working relationship with retailers and have more SKUs.”
In fact, Amul has similar concerns. R. S. Sodhi, Managing Director, Amul, says, “Back-end milk procurement will be a challenge as the next generation may not like to continue with dairy farming. We have also increased procurement prices as an incentive.”
Amul believes it is doing its best to appeal to the youth and make itself contemporary. As Sodhi says, “In the past few years we have been making constant efforts to target youngsters with products such as Amul Cool. Associating with the World Cup and Olympics and sponsoring programmes such as Master Chef is all about connecting with the youth. After all, we are competing with the MNCs and domestic players and have to keep ahead with products which have different
attributes.” Amul has pioneered new products such as frozen yogurt and probiotic ice cream and this should re-affirm its position as an innovator and market leader.
Keywords: Amul paid tributes to Verghese Kurien, Amul needs to keep track of consumers’ changing preferences
Title: A STUDY ON HOW TO INCREASE THE SALE OF AMUL ICE CREAM THROUGH DIFFERENT PROMOTIONAL TOOLS Objectives:“The objective of this dissertation is to study the different promotional tools through which the sale of amul ice cream can be increased. The promotional tools can be affected by various factors.Some of the factors are:1. Why the retailer is interested in keeping the ice cream:In India the consumption of the ice cream is very less compare to USA and even to Pakistan. So hare in India there is sufficient scope for the ice cream companies to expand their business. Now the consumer are moving towards the branded companies .so retailers want to become the part of this growing fields and the margin is also very good in comparison to other products like cold drinks, biscuit , chocolates etc.2. Why the retailer is not interested in keeping the ice cream:Some retailers were not interested in keeping the ice cream due to many problems associated with the ice cream like first it needs a big amount of investment, so the retailer don’t want to invest their own money to keep the ice cream.Secondly the retailers are not ready to take risk, they think that I will buy the deep freezer and the sale of ice cream will not increase then what will I do? Or if your freezer will not work then is your service id good enough to replace the ice cream? Some retailers don’t have sufficient space for keeping the deep freezer.Some retailers have very serious electricity problem in their area like Seelampur and BrahampuriSome retailers are very much satisfied with their existing business and they do not want to expand it like some medical shops in Brahampuri and Kabir nagar.3. What type of factors is able to influence the retailer to sell the ice cream?The first and the most important factor is, all the retailers do not want to invest their money in purchasing the deep freezer and if any company is providing the deep freezer on security basis or on the installment then the retailers will definitely go for the same company irrespective of the brand name.Second factor is the margin provided by the company. Here the amul is the leader in the branded companies. Amul is providing the best margin of 21.25%.The third factor is the product range .if the product range is large then the retailers will definitely go for that company. Here also amul is providing the best range.The fourth factor is the after sales service. This is one of the most important factor which influence the retailers to keep the ice cream,. Here I think all the companies are same and amul here also trying to lead to other companies. Yes, some retailers are unsatisfied with amul, but most of the retailers are satisfied.4. Identifying the area of improvement.Here the main area of improvement for amul is the after sales service. Amul should concentrate more on the existing customer than opening a new outlet. Because if existing customer are satisfied than and only than the company can grow.I think the ratio of our resources using should be 70:30 means 70% we should used our resources on satisfying the existing and 30% we should use on opening the new outlet.If the outlet is very good then we should give some relaxed schemes to the retailer because he is going to give us a very good sale and help in creating the good brand image. If we will not give them good schemes than other companies will give them and that will be loss to our company. so the company should adopted the flexible schemes. 5. How can the sale of the ice-cream are increased.
a. Quality: this is the major aspect of consideration because without quality nothing will work. We can sell
the poor quality product only once with good promotion activities but after that no body will buy the poor
quality product. So promotion, marketing, advertising all these are secondary .the primary thing is only
the quality .so we can increase the sale of the ice cream if we offer the better quality.
b. Best schemes: The retailer always want something free with the product he buys, Some retailers asked
to us “sir what are you giving on purchase of your deep freezer”. We said “sir this is already reduced
price “. But they said “no we want some thing free “.This indicates that the retailers want something free whether we are giving the deep freezer at higher rates. So we should increase the price of deep freezer to some extent and give the free ice cream of that amount. that will work definitely.One thing we wand to add here that the person who book the deep freezer should have some flexibility in the price range, because many retailers bargain with us and said that sir reduce the price of the deep freezer or cut your margin (commission) etc.one retailer ready to purchased the deep freezer of 400lt but he wanted to give only Rs18000 instead of Rs20, 677 He may be thinking that the sales man receive some commission on the sale of freezer. Because sales persons don’t have any flexibility in their hand so it is very difficult to convince such type of retailers. If the sales person have flexibility in their hand then the sale if ice cream will definitely increase.
a. We should provide tailor made hoardings to the retailers because Advertising is the most important.
There is the threat of loosing the outlet due to not providing the hoarding of the retailer’s choice. Some
retailers want the big hoardings.But one thing here in important that we should not provide every retailers the big hoarding because the small retailers cannot afford the big boards expense. so we should provide the big hoarding to only those retailers who are capable to sell the ice cream of Rs 2500-Rs3000 daily. We should not loose the big retailers due to the hoardings.By proper advertising we can increase the sale of ice cream.
a. By emphasizing on the posh cart:The area such as seelampur in which we have less outlet because in these areas the customer are not the brand loyal in case of the ice cream. So instead of trying more on opening the outlet, we should emphasizing on push carts, which will be beneficial. After analyzing the sale and data collected regarding the sale of the ice cream we can convince the retailer to keep the ice cream. so in these types of areas our emphasis should be more on the push carts so we can increase the sale of the ice cream.
a. After sales service:We can increase the sale of the ice cream by satisfying the existing retailers. Because if they are satisfied than they will sell our ice cream and tell other relatives retailers to sell the ice cream of the same brand.One incident I want to share here is there was a retailer in shahadra, he was not a satisfied retailer .He hanged the cream bell poster but not selling the ice cream of cream bell because he was the exclusive outlet of Amul. Cream bell is providing him only posters because cream bell found the loop hole in the Amul service .We want to say that if this retailer will stop selling the amul ice cream then he will definitely keep the cream bell ice cream. This is the future policies of cream bell .So amul should satisfying their existing retailer. Then and only then Amul is able to grow.
a. We should give some reward either in the monetary terms or in the recognition term to our good
retailers. We should give the target to our retailers and after achieving the target we should give them
gift, rewards etc. This also increases the sale of ice cream.6) What type of services are necessary for satisfying the retailers and customers:
a. The deep freezers should be delivering within one or two days after the clearance of payment by the
retailers.
b. Hoarding should be providing within one week after delivery of deep freezer.
c. Price list and other posters should be deliver to the retailer with the first supply of the ice cream A the
price list is very necessary without this it is very difficult to sell the ice cream.
d. If painting is committed by the sales person then it should be done within the two or three weeks. There
was a retailer in shahadra whose shop was painted after two years.
e. The sales persons should tell the retailer about all the new schemes and new product launched by the
company.
f) As ice cream as perishable product so if there is a electricity problem in the area then the distributor should do all the arrangement regarding the ice cream as ice cream should not melt at the shop.7) Determining the type of offer most requested for /needed by the retailer:
a. Retailer want good margin.
b. Retailers want the hoarding on time.
c. Retailers want better after sales service.8) Identify the important characteristics that make an ice cream maker attractive to the retailers:a) By increase the product range.b) By introduce the better quality of ice cream.c) By introduce the cheap ice cream.
a. By giving the better after sales service.
b. By making the distribution channel strong.
c. By providing the deep freezer according to the retailers need. We means we should provide the deep
freezer of 75Lt.to the small shops who cannot invest the large sum of money but want sell the ice cream.
This is also another way to penetrate the market to the deepest. SUGGESTIONS AND LIMITATION”
1. 1) We should do aggressive marketing as to stop the growth of the new growing companies
like cream bell, dairy fun etc.Amul is very strong brand name .If amul want then they can cover more than 50 % of the total market share. The need is to do the aggressive marketing. There are now many companies try to penetrate the market like cream bell dairy fun. I amul do the aggressive marketing then the growth of these companies can stop or minimize. Amul should do this things as these companies should not give the good fight to amul.
1. 2) Amul should give the regular advertise.Amul do very less advertising on T.V. and radio. Advertising on TV and radio leaves their impact on the consumer’s mind. If we do the good advertisement on electronics media than the sale of amul could be double. Because due to advertisement the consumer is able to know about the products and the current schemes running. We can see the impact of the advertisement on the “Dandi salt” .Due to the heavy advertisement the “Dandi salt” did business of Rs 50cr in just 6 months.Amul should also give their advertisement on the Bus stand and behind buses. We think that will work definitely.
1. 3) Should give more concentrate on pushcart.Amul should give the more concentrate on the pushcart in those areas where the amul outlets are very less or the sale of the ice cream is very less. Actually the pushcart implies the impulse buying .The company should try to increase the impulse buying behavior of the consumer by opening the more outlets or the pushcart in the area where the consumer is not interested in knowing the brand of ice cream. . In the area like seelampur where the 90% sale of ice cream is through the impulse buying .The more and more push carts will definitely work and once the consumer is familiar with the brand name then we can open our outlets by convince the retailers by showing the data related to the sale of ice cream through push carts. So amul should do the marketing step by step.
1. 4) Should give the rewards to the good retailers.Amul should give the rewards to the good retailers who are giving the good sale to the amul. The rewards could be in the monetary terms or in the recognition term .The big retailers want the recognition they don’t want the monetary rewards. But the small retailers those are not giving the good sale of ice cream, amul can give the achievable targets and after achieving the targets amul should give then the reward in term of the gifts. By adopting these policies we can capture more and more market share of ice creams.
1. 5) Should open exclusive outlets at shopping malls and good restaurant.Amul should open their exclusive retail outlets at the shopping malls and restaurants. Where amul should sale all the products manufactured by amul. Actually these type of retail outlets now a days are very popular The public now a days go to these malls very frequently for seeing the movies and for shopping .If there will the amul exclusive outlets then this helps in strengthen the Amul Brand name. Which is very important now days? After opening these types of the outlet the sale of the amul ice cream will increase definitely.
1. 6) Should give on installments not on security.If the good retailer wants the deep freezer on the installments then amul should do the arrangements for that. Amul should make such types of policies in which the whole amount will be recover in two or three installments and not more than that. Because in the policies of the more than tree installment if the retailer will not able to sell the ice cream then it is difficult to collect the money. We have seen the many retailers who are ready to give the whole amount in two or tree parts. In these cases the retailers will try to sell the ice cream at their best.Amul should not give the deep freezer on security to the retailers because on security basis the retailer is not committed to sell the ice cream. He think that if he will not be able to sell the ice cream then his security will return and he will be out of danger. This thinking of the retailer will be dangerous to the company because in the case of the security the 70% of the investment is of the company and only the 30% investment is of the retailer and which is refundable also. If the retailer demands his money back then the whole loss will be in the side of the company. Here the main thing is that in the case of the security the sale of the ice cream will not increase due to the less commitment of the retailers.
1. 7) Should celebrate the Amul ice cream day.Amul should celebrate the amul day on which the amul should give the best offers to consumers and retailers. On this day amul should launch the new products and can give the discount to the public.
1. 8) Should making some policies regarding the replacement of the ice cream.The retailers are in the threat that if there will be the electricity problem then whether the ice cream will be replaced by the company or not. The distributor should do some arrangement for the ice cream if there is the electricity problem in the area, at some terms and conditions.That will strengthen the brand name and will help in increasing the market share. By meeting with the some retailers we found that the service of quality walls is not so good. and the many retailers are in the loss due to melting the ice cream and the kwality walls did not replace the ice cream so they stooped the sale of the ice cream .So the ultimate loss goes to the company not to the retailers. ............................................................................................................................................................................................................... The above article was extracted from dissertations in Marketing, Finance, Human Resources, Strategy, Information Systems by the students from Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).
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