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A Marketing Management-2 project
Marketing Report on Amul Butter under the guidance of Prof. Kartik Dave
(Group 06)
Dhruv Gupta (13DM066)
Gaurav Gupta (13DM070)
Gayathri Pravallika Lavu (13DM071)
Gunjan Kalita (13DM075)
Jigyasa Gautam (13DM087)
Kishlay Saurabh (13DM092)
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Contents
Page No Introduction 3
Porter’s Five Force Model 3
SWOT Analysis 4
Marketing 4 P’s for Amul Butter 5
Product 5
Place 10
Price 12
Promotion 15
Branding 21
Market Survey 25
References 30
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Introduction
Formed in 1946, Amul is an Indian dairy cooperative with revenue of US$2.15 billion (2012–
13) and based at Anand in Gujarat, India. The brand name Amul means “AMULYA”. This
word is derived from the Sanskrit word “Amoolya” which means “ Priceless”. Brand Amul is
managed by Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). Amul has
spurred the White Revolution of India, which has made India the largest produer of milk and
milk products in the world and the White Revolution has finally created a billion-dollar
brand. Today Amul dairy is No.1 in Asia and No.2 in the world, a matter of proud for whole
India. Amul has more than 150 chilling centres in various villages. The man behind the
success of Amul is Dr. Verghese Kurien, former chairman of the GCMMF.
Reasons For Success
1. Robust Supply Chain
2. Low Cost Strategy
3. Diverse Product Mix
4. Strong Distribution Network
5. Technology and e-initiatives
6. The Brand value of Amul (Quality, Value for Money, Availability and Service)
Porter’s Five Forces Model
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SWOT Analysis
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Marketing 4 P’s for Amul Butter
In the subsequent topics, we will look at the 4 P’s of Marketing – Product, Place, Price and
Promotion – in context to Amul Butter.
Product
PRODUCT MIX
PRODUCT MIX Column1
CATEGORY PRODUCTS
Bread spreads 1. Amul butter
2. Amul lite low fat breadspread
3. Amul cooking butter
Cheese Range 1. Amul Pasteurized Processed Cheddar Cheese
2.Amul Processed Cheese Spread
3. Amul Pizza (Mozarella) Cheese
4.Amul shredded Pizza Chesse
5.Amul Malai Paneer (cottage cheese),Frozen, Refrigerated and Tinned
(Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
Sundae Range
(Mango, Black Currant, Chocolate, Strawberry)
Millennium Ice cream
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(Cheese with Almonds, Dates withHoney)
Milk Bars
(Chocobar, Mango Dolly, Raspberry Dolly, ShahiBadam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green PistaKulfi)
Cool Candies
(Orange, Mango)
CassattaTricone Cones
(Butterscotch, Chocolate)
Megabite
Almond Cone
Frostik - 3 layer chocolate Bar.
Fundoo Range
So we see the range of product of Amul you will notice it is everywhere it has made its
presence felt in each and every segment from milk to flavoured ice-cream it is gaining its
customer base in every nook and corner with passage of time it is penetrating deep in into
the market.
Market Share of different products of Amul
Category Market share Market position
Chocolate drink 90% 1
Butter ,ghee 85% 1
Cheese 50% 1
Sweets 50% 1
Milk Powder 40% 1
Ice –cream 24.75% 2
Chocolate 10% 3
Amul- Product Diversification
Seeking unfamiliar products or markets in the pursuits of growth with both dairy and non-
dairy products, Amul has come out with a lot of products at affordable price and most of
them are dominating in their particular segments.
Amul always had a secret philosophy behind its marketing strategy .
1. From the time of its existence Amul has made its entry into a lot of segments but at the
same it has maintained its growth in existing product line.
2. Despite market transition and foray into different segments, Amul never forgets its
principle of providing product at low cost price.
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Amul Butter
1. Amul butter’s core competency lie in the fact that they offer –they follow worked
standard methods like Quality Management in their operation .right from the beginning till
end they adopt Kaizan practices to ensure the quality of milk in term of acidity and its
sources.
2. Amul butter products advantage is not only restricted to the superior quality that it has
but also constant innovation that they undergo in their packaging. Right under their product
basket .Amul butter is available in following size.
500gm 100gm 50gm 20gm 10gm
3. As a move to target caterers and restaurants has put cases with 30 packs each 500gm This pack is not meant for retail selling and are without the outer packing that one finds on the retail package. This cuts down the cost for the High Consumption group as they are priced much less than the retail packs. 4. With the introduction of Amul Lite which offers a low fat and is a no cholesterol table margarine, it is targeting those group of customer who are health conscious. 5. With 86% market share and presence through more than 5, 00,000 retail outlets, it is the biggest brand in India. 6. Right now it is in the maturity stage and thus, is making huge profits.
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Line Extension Line extensions occur when a company introduces additional items in the same product category under the same brand name, usually with new flavours, forms, colours, added ingredients, package sizes, and so on. Amul extended its Amul Butter line to the following items:
Amul Unsalted Butter – without any added salt
Amul Cooking Butter – specially for cooking purposes
Amul Lite Breadspread – low-fat, low-calorie breadspead
Amul Delicious Table Margarine – a butter-substitute, prepared specially from vegetable oils and fats
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Place
How different can AMUL’s butter be, from butter offered by any other brand? Butter from
any brand, tastes more or less the same, offers similar nutrition and comes in similar
packaging. Yet, the customer, standing at the shop aisle, without any ambiguousness
chooses Amul over its competitors. That is a result of offering great value over a period; a
result of delivering great quality; result of powerful branding; and when all these come
together, you have consumers showing trust in brand, the ultimate prize that a marketing
company can hope to win.
Distribution Strategy:
Distribution is one of the prime factor for Amul’s success. Apart from being available at over
5,00,000 retail stores, Amul products can also be found at its own parlors located in various
cities. This large distribution network of Amul is the reason for easy availibility of its
products. In our survey of 53 consumers, over 95% consumers said that Amul butter was
available to them in near proximity.
With 6000 parlours across india, Amul already has a strong distribution network. Amul had
1000 parlours during 2010-11, but as chairman of GCMMF, Parthibhai G Bhatol, realised the
potential for growth, he and took the number of parlours to 6000 by 2013. These parlours
that retail the entire range of Amul products under one roof, have generated business of Rs
406 crore during the 2010-11 fiscal, growing by 37 per cent on a year-on-year basis.
Amul parlors run at conventional locations like residential and commercial areas,
educational institutions, railway stations, bus stands and other high traffic locations. This is
brilliant distribution strategy, as putting parlors in these areas not only increae sales but also
help in improving brand image. Amul already created 160 parlours at railway stations and
177 parlours at various centers of excellence.
Amul is now betting on quick service restuarants, that serves Pavbhaji, Amul pizzas, Amul
cheese burgers, sandwiches, ice-cream, sundaes and milk shakes, called Amul Cafes. Tasting
success with the two federation owned outlets of Amul Cafes at Ahmedabad, GCMMF is
eying to spread the network of cafes across the country in the coming two years. The
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federation now owns and operates two outlets in Ahmedabad, which have a turnover of Rs
1 lakh per day per outlet.
AMUL Supply Chain System Strong supply chain network is one of the prime reasons for success of Amul. It has one of
the largest supply chain system in India, with over 2.8 million milk producer members.
Presently it has 10000 village cooperative societies, 3600 wholesale distributors, 45 depots
in India with over 5,00,000 retailers spread all over India.
Amul, has recently kicked off its largest distribution expansion exercise to take its chilled
products like butter, cheese, ice-cream and paneer to small towns and districts to
population of up to 5,000 people. Now Gujarat Cooperative Milk Marketing Federation,
owner of the Amul brand, will service these districts through feeder markets.
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Price
Amul’s Pricing Strategies
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya,"
was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are
found in several Indian languages. Amul products have been in use in millions of homes