MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE

TASTE OF INDIA

INTRODUCTION

Amul (Anand Milk Union Limited), formed in 1946, is a dairy

cooperative movement in India.

It is a brand name managed by an apex cooperative organisation, Gujarat Co-

operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by some 2.6 million milk producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-
operative organization's success in the long term.

It is one of the best examples of co-operative achievement in the developing economy.

Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world.

It is also the world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand
with an annual turnover of US $1050 million (2006-07).

Currently Amul has 2.6 million producer members with milk collection average
of 10.16 million litres per day.

The brand name Amul means “AMULYA”. This word derived from the
Sanskrit word “AMULYA” which means “PRICELESS”. A quality control
1
expert in Anand had suggested the brand name “AMUL”.

Amul products have been in use in millions of homes since 1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have
made Amul a leading food brand in India.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

HISTORY.

The Amul revolution was started as awareness among the farmers. It grew and
matured into a protest movement that was channeled towards economic
prosperity.

The Kaira District Co-operative Milk Producers' Union Limited (KDCMPUL)

began pasteurizing milk for the Bombay Milk Scheme in June 1948.

By the end of 1948, more than 400 farmers joined in more Village Society, and
the quantity of milk handled by one Union increased from 250 to 5,000 liters a day.

Meanwhile, Dr. Verghese Kurien, fed up being at the government creamery in

Anand, Gujarat, which held no challenge, volunteered to help Shri Tribhovandas
Patel, the Chairman of KDCMPUL, in setting up a processing plant. This marked
the birth of AMUL in 1946.

The success of Amul was instrumental in launching the White Revolution that
resulted in increased milk production in India. It is officially termed as
Operation Flood by Amul. The breakthrough technology of spray-drying and
processing buffalo milk, developed by Mr.
Dalaya, was one of the key factors that contributed to the Revolution.

Over six decades ago the life of a farmer in Kaira was very much like that of
farmers anywhere else in India. His income was derived almost entirely from
seasonal crops. Many poor farmers faced starvation during off-seasons. Their
income from milch buffaloes was undependable. The milk marketing system
was controlled by contractors and middlemen. As milk is perishable, farmers
were compelled to sell their milk for whatever they were offered. Often they had
to sell cream and ghee at a throwaway price.

3
They were in general illiterate. But they could see that the system
under which contractors could buy their produce at a low price
and arrange to sell it at huge profits was just not fair. This became
more noticeable when the Government of Bombay started the
Bombay Milk Scheme in 1945.
Milk had to be transported 427 kilometers, from Anand to Bombay.

4
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

After preliminary trials, the Government of Bombay entered into

an agreement with Polsons Limited to supply milk from Anand
to Bombay on a regular basis. The arrangement was highly
satisfactory to all concerned except the farmers.

The Government found it profitable; Polsons kept a good margin. Milk

contractors took the biggest cut. No one had taken the trouble to fix the
price of milk to be paid to the producers. Thus under the Bombay Milk
Scheme the farmers of Kaira District were no better off ever before.
They were still a t the mercy of milk contractors. They had to sell their
milk at a price the contractors fixed. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated
farmers’ co-operatives as early as 1942.
Sardar Patel reiterated his advice that they should market their milk through a co-
operative society of their own. This co-operative should have its own
pasteurization plant. His advice was that the farmers should demand
permission to set up such a co-operative. If their demand was rejected,
they should refuse to sell their milk to middlemen.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the

cooperative's dairy soon spread to Anand's neighbourhood in Gujarat.
Within a short span, five unions in other districts – Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat – were set up. To
combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing
body of these district cooperatives, was set up in 1973. The Kaira
Union, which had the brand name Amul with it since 1955, transferred it to
GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
5
In June 2013, it was reported that the Kaira District Cooperative Milk
Producers Union Limited, better known as Amul Dairy, had signed a
tripartite agreement to start a dairy plant in Waterloo village in upstate
New York. The plant will initially manufacture paneer and ghee. Amul
will use an existing dairy plant owned by New Jersey-based NRI
Piyush Patel for manufacturing. The plant is strategically located, as it
close to supply centres from where raw ma terial is procured, and is near
New Jersey, which has a large Indian population.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

DR. VERGHESE. KURIEN, FATHER OF WHITE REVOLUTION

Dr. V. K urien was Born on 26 November 1921 & died on 9 September 2012.
He was Also known “MILKMAN OF INDIA”. Dr. K urien, was the architect of
India';s White Revolution, which helped India emerge as the largest milk
producer in the world. Founder Chairman of the National Dairy Development
Board (NDDB) from 1965 to 1998, the Gujarat Co- operative Milk Marketing
Federation Ltd. (GCMMF), from 1973 to 2006 and the Institute of Rural
Management (IRMA) from 1979 to 2006, his professional life has been
dedicated to empowering the Indian farmers through co-operatives. Dr. Kurien
has helped to lay the foundation of democratic enterprises at the grass roots. He
believed that by placing technology and professional management in the hands
of the farmers, the standard of living of the people in the rural areas at the most
all the backward People. .

The cooperative movement, he helped to create became a model not only for
India, but for developing countries throughout the world. The Operation Flood
Programme, of which Milk Producers'; Cooperatives were the central plank,
emerged as India';s largest rura l employment programme and unleashed the
larger dimension of dairy development. Dr. Kurien was the undisputed
'Milkman'; of India. Born on November 26, 1921 at Kozhikode, Kerala, he
graduated in Science from the Loyola College in 1940 and obtained hisdegree in
7
Engineering from the Guindy College of Engineering in Chennai. After a stint at
TISCO, Jamshedpur, he obtained the Govt. of India';s scholarship to study Dairy
Engineering. After some specialized training at the Imperial Institute of Animal
Husbandry & Dairying, Bangalore, he left for the United States where he
completed his Masters degree in Mechanical Engineering with Dairy Engineering
as a minor subject from the Michigan State University in 1948.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

The first Dairy Co-operative Union in Gujarat was formed in 1946 with 2
Village Dairy Co- operative societies as its members. The number of member
societies has now increased to 16,100, with 3.2 million members pouring milk
every day- twice a day. Today, the Billion Dollar GCMMF has emerged as the
India';s largest integrated dairy products manufacturing and marketing
organization.

NDDB, formed by the efforts of Dr. Kurien ensured replication of Amul Model
across India. Thereby, it played an instrumental role in increasing the milk
production of India significantly. India';s milk procurement has increased from
20 million metric tonnes per year in the 60s to 122 million metric tonnes in 2011.

His work has received tremendous national and international recognition.

The Govt. of India conferred on him the "Padma Vibhushan", the second
highest honour in the land next only to Bharat Ratna. He is also the
recipient of the World Food Price, the Ramon Magsaysay award for
Community Leadership, the Carnegie - Wateler World Peace Prize and the
International Person of the Year award from the U.S.

Dr. K urien';s main contribution has been in designing of systems and

institutions, which enable people to develop themselves, as he believed the
development of man can best be achieved by putting in his hands the
instruments of development. He believed that the greatest assets of this country,
were its people and he dedicated his life to the task of harnessing the power of the
people in a manner which promoted their larger interests.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

How DrKurien’s business wisdom built the Amul brand

The success of Amul is no accident. It was DrK urien’s understanding of how

brands work, of the importance of building brands, of the focus on quality,
value for money and customer centricity as a bedrock of all that Amul did,
which has made Amul the Best that it is. Consider these pearls of wisdom from
DrK urien culled from speeches that he made as chairman of the Gujarat Co-
operative Milk Marketing Federation over the years. “For the Consumer, Amul
simply means ‘Value For Money’ and Quality as it should be. Our brand name
touches an emotional chord with her: Amul means a range of superior products,
consumed by every age group, and a favourite in every part of our diverse land.
Amul makes each bite that much more special because in our humble way, we
care for feelings that are truly “Indian”.”
Amul was founded on a sound business model: providing quality products to consumers at
an
affordable price. The Pundits have described our model as “value for money”
and it has been adopted by a number of companies. While imitation may be
flattery, most other organisations fail to understand that “value for money” is not
just about low prices – it means offering the best quality products at the most
reasonable price”. Marketing profe ssionals from any company would give an
arm and a leg to be able to make a statement like this. How many brands,
worldwide, can claim that their brand ‘touches an emotional chord’ with the
consumer? How many companies have products that are ‘consumed by every
age group’? DrKurien’s vision, and his deep understanding of how brands
operate, can be further understood from this statement: “I have always been a
firm believer of the dictum that ‘Brand is power’. A cooperative without a
“brand” can never aspire to survive — let alone thrive — while marketing
commodities in today’s competitive environment. Only by nurturing its
10
marketing skills and building solid brands can cooperatives make their own
growing space in the market. And we must never forget that quality and value are
the foundation for successful brands.” In one line, Kurien encapsulates all that
brand gurus have tried, over the years, to say in books, lectures and speeches:
“Never forget that quality and value are the foundation for successful brands”. It
is this belief that results in the happy situation where consumers are unable to
remember a bad experience with a single brand from the Amul stable. It is the
promise of Amul’s products that lift them from being mere products in a
category and raise them to the level of brands. How different can Amul’s core
products, milk and butter, be

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

from other milk and butter brands? Milk will taste (more or less) the same,
irrespective of which branded Tetrapak carton one buys, and butter will taste
(more or less) the same, irrespective of the logo on the carton. Yet, the
consumer, at the moment of truth, when standing in the shop aisle, chooses
Amul over the competition. That’s a result of having received, over the decades,
good quality and great value for money. That is trust in a brand. The ultimate
prize that a marketing company can hope to win. By the mid 1990s,
liberalisation had entered India and India saw an end to the era of monopolies,
and Amul was no different. By 2000, India was a happy hunting ground for
many multinationals, who made a beeline for our shores. “An expanding market
inevitably attracts increasing competition. Today, every product category sees
new entrants in our business. Competition may be from existing companies
entering new categories or from new companies. Our experience and marketing
prowess has enabled us to maintain a formidable distance between our
competitors and us. However, there is no room for complacency. We must not
only maintain our lead, we must increase it,” Kurien said in 2001. There are also
so many Indian companies that failed to understand the dynamics of the new
India and found themselves unable to halt the slide from being market leaders to
also-rans. Kurien saw to it that, first, the changes were acknowledged and
understood and that complacency was no option. His words have the hallmark
of a fighter from the private sector – “we must not only maintain our lead, we
must increase it.” The Indian business press has rarely referred to DrK urien as a
management guru. But how different is DrK urien’s statement from the famous
quote by former Intel CEO Andy Grove, when he said, “O nly the paranoid
survive”? It was Kurien who taught Amul to be paranoid – and, consequently,
not just survive, but grow, grow and grow. Now, Amul will have to deal with a
future without the aid of DrK urien. Perhaps they would do well to draw from
another bit of advice from him, namely this statement, made in 2004: “The key

12
to retaining our competitive advantage lies in keeping focused on the basic business
principles:
• Be Customer-Driven
• Adapt quickly to the changing environment.
• Anticipate change and act today to meet tomorrow’s challenges.”

Forget about Amul. Whatever marketing company you work for, look beyond
Amul’s ads and try and understand what DrKurien did to help make Amul one
of the greatest brands built in India; try and understand how he dealt with
changes in government policy, the liberalisation of the economy and the
emergence of competition in category after category.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

District Cooperative Milk Producer's

Union (Dugdh Sangh)

The main functions of the union are:

• Procurement of milk from the village milking societies of the district,

• Arranging transportation of raw milk from the
VDCS i.e. (Village Dairy Cooperative Societies) to
the Milk Union,
• Providing input services to the producers like veterinary care, artificial
insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder
seed sales,
• Conducting training on cooperative development, animal husbandry and
dairying for milk producers and conducting skill development and
leadership development training for VDCS staff and Management Committee
members,
• Providing management support to the VDCS along with supervision of its activities.
• Establish chilling centres and dairy plants for processing the milk received
from the villages.
• Selling liquid milk and milk products within the district
• Process milk into milk products as per the requirement of State Marketing Federation.
• Decide on the prices of milk to be paid to milk producers as well on the
prices of support services provided to members.
Impact of the "Amul Model"

The effects of Operation Flood Programme are appraised by the World Bank in
an evaluation report. It has been proved that an investment of Rs. 20 billion
over 20 years under Operation Flood in the 1970s and 80s has contributed in

14
increase of India’s milk p roduction by 40 million metric tonnes (MMT), i.e.,
from about 20 MMT pre-Operation Flood to more than 60 MMT at the end of
Operation Flood.

Thus, an incremental return of Rs. 400 billion annually have been generated by
an investment of Rs. 20 billion over 20 years. India’s milk production continues
to increase and now stands at 90 MMT. Despite this fourfold increase in
production, there has not been a drop in the prices of milk during the period while
production has continued to grow.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

EXTRA ORDINARY STORY OF AMUL

Every day Amul collects 447,000 litres of milk from 2.12 million
farmers (many illiterate), converts the milk into branded, packaged products, and
delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets
across the country. Its supply chain is easily one of the most complicated in the
world. If we are visit to any Amul or Gujarat Cooperative Milk Marketing
Federation (GCMMF) office a photograph of Mahatma Gandhi will be missing
but we can certainly see one particular photograph showing a long line of
Gujarati women waiting patiently for a union truck to come and collect the milk
they have brought in shining brass matkas. This makes the farmers or the
member of the organization of the organization how to prevent the milk from
souring. Hence, Amul takes various initiatives to make the farmer or the
producer understand how to provide service to the consumers with the only
resource available with them i.e. milk a perishable one. The prominent display of
picture states the message”

NEVER FORGET YOUR CUSTOMER. IF YOU DON’T SUCCESS IN CERTAIN”

At the time Amul was formed, consumers had limited purchasing

power, and modest consumption levels of milk and other dairy products. Being
a co-operative organization Amul adopted a low-cost price strategy to make its
products affordable and attractive to consumers by guaranteeing them value for
money. Amul also introduced higher value products. Beginning with liquid milk,
Amul enhanced the product mix through the progressive addition of higher
value products while maintaining the desired growth in existing products.

The Taste of India – these four words are more than what the common

16
man may think of these – a mere slogan. Advertising people call this
corporate positioning. But jargon apart these four words lend meaning to
Amul's never ending crusade; they reinforce Amul's commitme nt of taking
quality food products right down to the rural man, products, the common
man otherwise would have never afforded. It was Amul that first made
chocolate affordable to the 'aam admi', then followe d the same with Ice
Cream, pizza and a range of value added products. Who would have
thought that a tailor in Azamgarh or a traveling salesman in Barabanki,
UP would be digging into a cup of Amul Ice Cream on a hot day.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

THE STORY OF – AMUL BUTTER GIRL.

Eustace Fernandes, the creator of the Amul girl. Fernandes is best

remembered as a cartoonist and an illustrator and was living a retired life for
some time. The Amul as one moppet has featured in hoardings for almost 48
years, making it the longest running of in ad campaign ever in the world. The
hoardings displayed one-liners that constituted as one a veritable
commentary on contemporary political and social events, with each week after
featuring a new theme.
The iconic Amul girl, which turns 43 this year, is all set to enter the Guinness Book
of World as Records for being the longest running campaign in the world.
Way back in 1966, the Amul account was given to the advertising agency called
Advertising in and Sales Promotion (ASP). The team of Sylvester da Cunha,
Eustace Fernandes, Usha Katrak and Marie Pinto worked on the Amul account at
that point of time. The ad became a rage with tagline 'Utterly butterly delicious
Amul' - and the rest, they say, is history.
Fernandes worked on the Amul account for three years till 1969 and then the team of
talent such Usha Katrak, K Kurian, Eustace Fernandes and Radha started Radeus
Advertising in 1974.

18
As a matter of fact, the word Radeus originated from the first three letters of
Radha and Eustace. Edited from an article by Mini Varma published in The Asian
Age on March 3, 1996.
The moppet who put Amul on India's breakfast table 50 years after it was first
launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over
25,000 tonnes a year in 1997. No other brand comes even close to it. All because a
thumb-sized girl climbed to the hoardings and put a spell on the masses.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

It all began in 1966 when Sylvester daCunha, then the managing director the
advertising agency, ASP, clinched the account for Amul butter. The butter, which
had been launched in 1945, in had a staid, boring image, primarily because the
earlier advertising agency which was in charge for of the account preferred to stick
to routine, corporate ads.
In India, food was something one couldn't afford to fool around with. It had been
taken too be the seriously, for too long. Sylvester daCunha decided it was time for
a change of image.
The year Sylvester daCunha took over the account, the country saw the birth of a
campaign whose charm has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival to
the Polson butter girl. This one was cute, as in village belle, clothed in a tantalising
choli all but covering her upper regions.
"Eustace Fernandez (the art director) I decided that we needed a girl who would
worm her way into a housewife's heart. And why better than a little girl?" says
Sylvester daCunha. And so on it came about that the famous Amul Moppet was
born.
“We ran a couple of ads that created quite a furore," says Sylvester daCunha.
"The Airlines is one really angered the authorities. They said if they didn't take
down the ads they would stop supplying Amul butter on the plane. So ultimately
we discontinued the ad," he says laughing. Then there was the time when the
Amul girl was shown wearing the Gandhi cap. The high command came down
heavy on that one. The Gandhi cap was a symbol of independence, they couldn't
have anyone not taking that seriously. So despite their reluctance the hoardings
were wiped clean. "Then there was an ad during the Ganpati festival which
said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena
people said that if we didn't do something about removing the ad they would
come and destroy our office. It is surprising

20
how vigilant the political forces are in this country. Even when the Enron ads
(Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she
liked them."
There were other instances too. Heroine Addiction, Amul's little joke on Hussain
had the artist ringing the daCunhas up to request them for a blow up of the ad.
"He said that he had seen the hoarding while passing through a small district in
UP. He said he had asked his assistant to take a photograph of himself with the ad
because he had found it so funny," says Rahul da Cunha in amused tones.
Indians do have a sense of humour, afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most
people agree that the Amul ads were at their peak in the Eighties they still maintain
that the Amul ads continue to tease a laughter out of them. Where does Amul's magic
actually lie? Many believe that the love charm lies in the catchy lines. That we laugh
because the humour is what anybody would enjoy.

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MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

GUJURAT CO-OPERATIVE MILK MARKETING FEDERATION.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE TASTE OF INDIA

GUJURAT COOPERATIVE MILK MARKETING FEDERATION.

(GCMMF)

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily work
milk procurement is approx 13.18 million lit per day from 17,025 village milk cooperative
societies, 17 member unions covering 31 districts, and 3.23 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 to be with
marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 53 Sales &
Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such
networks in India. Its product range comprises milk, milk powder, health beverages, ghee, whey
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. In 2013-14, GCMMF took
giant strides in expanding its presence in International markets. Amul’s presence on Global
Dairy Trade (GDT) platform in which only the top six dairy players of the world sell their
products, has earned respect and recognition across the world. By selling milk powders & many
on GDT, GCMMF could not only realize better prices as per market demand but it also firmly
established Amul in the league of top dairy players in world trade.
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 in 1999 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

23
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

topmost International Dairy Federation Marketing Award for probiotic ice cream
launch in 2007. For the innovations, GCMMF has received AIMA-RK Swamy
High Performance brand award 2013 and CNN-IBN Innovating for better tomorrow
award in 2014. For the tree plantation activity GCMMF has received seven
consecutive Good Green Governance award from Srishti during the year 2007 to
2013.

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 which we can hope To live.

GCMMF Today:

GCMMF is India's largest food products marketing organisation. GCMMF markets

and manages the Amul brand. From mid-1990's Amul has entered areas not
related directly to its core of the business Its entry into ice Cream was regarded as
successful due to the large market share it if was able to capture within a short
period of time - primarily due to the price differential and the brand name It also
entered the Pizza business, where the base and the recipeswere made available to
restaurant owners who could price it as low as 30 rupees per pizza when the other
players
were charging upwards of 100 rupees.

In September 2007, Amul emerged as the leading Asian brand according to a survey by
the name Synovate to find out Asia's top 1000 Brands.

Collection of milk:

Every day Amul collects 447,000 liters of milk from 2.12 million farmers (many
illiterate), converts the milk into branded, packaged products, and delivers goods

24
worth Rs 6 crore that (Rs 60 million) to over 500,000 retail outlets across the
country.Its supply chain is easily one of the most complicated in the world. How
do managers at Amul prevent the milk from there souring? Walk in to any Amul or
Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you may
or may not see a photograph of Mahatma Gandhi, but you will certainly see one
particular photograph. It shows a long line of Gujarati women waiting patiently for
a union truck to come and collect the milk they have brought in shining brass
matkas. As such The picture is always prominently displayed.

25
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Organization structure: It all started in December 1946 with a group of

farmers keen to free themselves from intermediaries, gain access to markets and
thereby ensure maximum in returns for their efforts.

Based in the village of Anand, the Kaira District Milk Cooperative Union (better
known as amul) expanded exponentially. It joined hands with other milk
cooperatives, and the Gujarat network in now covers 2.12 million farmers, 10,411
village level milk collection centers and fourteen as such district level plants (unions)
under the overall supervision of GCMMF.

There are similar federations in other states. Right from the beginning, there was
recognition in that this initiative would directly benefit and transform small farmers
and contribute to the edge development of society. Markets, then and even today,
are primitive and poor in infrastructure. Amul and GCMMF acknowledged that
development and growth could not be left to market if forces and that proactive
intervention was required. Two key requirements were identified.

• The first, that sustained growth for the long term would depend on matching
supply and demand. It would need heavy investment in the simultaneous
development of suppliers and consumers.
• Second, that effective management of the network and commercial
viability would require professional managers and technocrats.

To implement their vision while retaining their focus on farmers, a hierarchical

network of cooperatives was developed, which today forms the robust supply
chain behind GCMMF’s endeavors The vast and complex supply chain stretches
from small suppliers to large fragmented markets. Management of this network is
made more complex by the fact that GCMMF is directly responsible only for a
26
small part of the chain, with a number of third party players (distributors, retailers
and logistics support providers) playing large roles. Managing this
supply chain efficiently is critical as GCMMF's competitive position is driven by
low consumer prices supported by a low cost system.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE TASTE OF INDIA

Introducing higher value products:

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition
of higher value products while maintaining the desired growth in existing products and the goods.

Despite competition in the high value dairy product segments from firms such as Hindustan uni
Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which is
Amul introduces its products is consistent with the core philosophy of providing milk at a best
basic, affordable price.

Umbrella brand:

The network follows an umbrella branding strategy. Amul is the common brand for most product
categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa &
products, sweets, ice-cream and condensed milk.

Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The
edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the way
Jal Dhara brand while fruit drinks bear the Safal name.

By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts
but also created an opportunity for the union members to cooperate in developing products.

Managing the supply chain:

Even though the cooperative was formed to bring together farmers, it was recognised that
professional managers and technocrats would be required to manage the network effectively
and make it commercially viable.

Coordination:

Given the large number of organizations and entities in the supply chain and decentralized
responsibility for various activities, effective coordination is critical for efficiency and cost
control. GCMMF and the unions play a major role in this process and jointly achieve in the
the desired degree of control.

28
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Buy-in from the unions is assured as GCMMF’s board approves the plans.
The board is drawn from the heads of all the unions, and the boards of the
unions comprise of farmers elected through village societies, thereby creating a
situation of interlocking control.

The federation handles the distribution of end products and coordination with
retailers and the dealers.The unions coordinate the supply side activities.

These include monitoring milk collection contractors, the supply of animal

feed and other supplies, provision of veterinary services, and educational
activities.

Managing third party service providers:

From the beginning, it was recognized that the unions' core activity lay in
milk processing and the production of dairy products. Accordingly, marketing
efforts including brand development were assumed by GCMMF. All other
activities were entrusted to third parties. These include logistics of milk collection,
distribution of dairy products, sale of products of through dealers and retail
stores, provision of animal feed, and veterinary services.

It is worth noting that a number of these third parties are not in the organized
sector, and many are not professionally managed with little regard for quality and
service.

Technology and e-initiatives:

GCMMF's technology strategy is characterized by four distinct components: new

29
products, process technology, and complementary assets to enhance milk
production and e-commerce.

Few dairies of the world have the wide variety of products produced by the GC
MMF network. Village societies are encouraged through subsidies to install
chilling units. Automation in processing and packaging areas is common, as
is HACCP certification. Amul actively pursues developments in embryo transfer
and cattle breeding in order to improve cattle quality
and increases in milk yields. GCMMF was one of the first FMCG (fast-moving
consumer goods) firms in India to employ Internet technologies to implement B2C
commerce

30
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Today customers can order a variety of products through the Internet and
be assured of delivery with cash payment upon receipt.

Another e-initiative underway is to provide farmers access to information relating

to markets, technology and best practices in the dairy industry through net
enabled kiosks in the villages.

GCMMF has also implemented a Geographical Information System (GIS) at both

ends of the supply chain, i.e. milk collection as well as the marketing process.

Farmers now have better access to information on the output as well as support
services while providing a better planning tool to marketing personnel.

7 Important Marketing Rules fallowed By Amul:

1. Never Underestimate the customer.

2. Shatter the demand curve.
3. Create a ladder of genuine benefits (technical,functional,emotional).
4. Escale innovate, elevate quality, deliver a flowless experience.
5. Extend the price range and positioning of the brand.
6. Customize your value chain to deliver the benefit ladder.
7. Use influence marketing, seed your success through brand positioning.

31
32
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

MEMBER UNIONS OF GCMMF

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand.
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana.
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar.
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur.
5. Surat District Cooperative Milk Producers' Union Ltd., Surat.
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara.
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra.
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad.
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch.
10.Ahmedabad District Cooperative Milk Producers' Union
Ltd.,Ahmedabad.
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot.
12. Gandhinagar District Cooperative Milk Producers'Union Ltd., Gandhinagar.
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar.
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli .
15. Bhavnagar District Cooperative Milk Producers Union Ltd.,

Bhavnagar. 16.Kutch District Cooperative Milk Producers' Union

Ltd., Anjar.
17. Junagadh District Cooperative Milk Producers' Union Limited, Junagadh.

DISTRIBUTION NETWORK

Distribution channels are probably the most visible aspect of any company’s
marketing efforts. A recent estimate puts the number of retail out lets in India at 5
million. The retail industry of provides livelihood to more than 15 million people in
the country. If one included in this that number of distributors, wholesalers, agents
including the army of life insurance agents, trans, warehouse keepers, and all other
33
entities involved in the distribution of products and services to the end consumers.

“Distribution channels are sets of interdependent organizations involved in

the process of making a product or service available for use or
consumption”.

34
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Intermediaries are required to smoothen the flow of goods and services by

engaging themselves in sorting function. The sorting function performed by the
intermediaries includes

Breaking down a heterogeneous supply into separate stocks that are relatively
homogeneous in it called ‘sorting out’.

Bringing similar stocks from a number of sources together into a larger

homogeneous supply called ‘accumulation’.

Building up of an assortment of products for resale in association with eath

other called ‘assorting’.

Distribution channel strategy:

The major domains across which distribution strategy is framed includes

• Setting distribution objectives in terms of the customer requirements.

• Organizing the activities so that the responsibility of performing the activities is
the shared among the entities that are meant to perform these activities.
• Developing policy guidelines for the smooth functioning of the channel on a
day to day basis .

In the wake of increasingly complicated supply chains, distribution network design

plays a key role in controlling the cost of doing business. And in a world of
shrinking margins, controlling the cost of doing business can be the factor that puts
you ahead of your competitors.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Strategic Productivity Enhancement

GCMMF and Milk Unions have identified the gaps which are hindering the efforts
of improving milk productivity and therefore have envisioned integrated
intervention to achieve objectives in of higher milk productivity and production,
titled Strategic Productivity Enhancement of that in Programme.The concept of this
programme is designed with an aim to develop a genetically with improved animal with
high productivity. It initiates with the selection of proper animals, to deal pure
breed cows and buffaloes with high genetic potential by adopting Pure Breeding
Program.
Accordingly, 14968 Superior animals having high productivity have been identified
under the programme and their better progeny will be obtained by using 100%
pure bull semen. In line with our objective, during the year we have received the
first lot of imported progeny tested Pure HF semen doses. To further develop the
genetic potential of these calves we have planned the Calf Rearing Programme.
Around 45730 calves have been registered under Calf Rearing Programme.

The Path of Innovation…

Moving further ahead on the path of innovation, there plan is to enhance & widen our
product portfolio, based on demand and expectations of our loyal consumers. Using
insights from there consumer research and learning from the experience of dairy
industry across the world, we will introduce innovative products customized as per
requirement of specific segments of consumers. In terms of process innovations, we
will continue to leverage heavily on information technology across the entire value-
chain of dairy business, seamlessly linking our farmer members in the 17000 villages
of Gujarat to millions of consumers across the country. Another following life of
dimension of technological innovation that we plan to emphasize on will be to
enhance towards productivity per animal, with the ultimate objective of increasing milk
36
production as well as in reducing cost of milk production.

During the year 2014-15, they have plan to continue with there growth trend and
will target at least 21% growth to exceed turnover of Rs. 22000 crores. ‘AMUL’
also plan to further expand the milk procurement network to cover almost the entire
region of Saurashtra. ‘AMUL’ there acknowledged and appreciate the tremendous
trust that Indian consumers have placed on them, over the last six decades.

37
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

RANGE OF PRODUCTS.

Breadspreads:

Amul Butter.
Amul Low Fat Bread Spread.
Amul Cooking Butter.

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese.

Amul Processed Cheese Bread Spread.
Amul Pizza Mozarella Cheese.
Amul Shredded Pizza Cheese
Amul Emental Cheese.
Amul Gouda Cheese.
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul shrikhand (Mango, Saffron, Pistachio, Cardamom)

Amul Amrakhand
Amul Mithai Gulabjamun.
Amul Mitahi Gulabjamun Mix.
Amul Mitai Kulfi Mix.
Avsar Ladoos

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

(ULTRA HIGH TEMPERATURE) UHT- Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk.
Amul Gold 4.5%Fat Milk.
Amul Lite Slim & Trim Milk 0% Fat Milk.
Amul Shakti Toned Milk
Amul Fresh Cream.
Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee.

Sagar Pure Ghee.
Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)
Amul Spray Infant Milk Powder.

Milk Powders:

Amul Full Milk Cream Powder.

Amulya Dairy Whitener.
Sagar Skimmed Milk Powder.
Sagar Tea & Coffee Whitener.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk.

Fresh Milk:

Amul Taaza Tonned Milk 3% Fat.

Amul Gold Full Cream Milk 6% Fat.
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi.
Amul Masti Spiced Butter Milk
Amul Lassee

Amul Icecreams:

Royal Treat Range

Butterscotch, Rajbhog, Malai Kulfi

Nut-o-Mania Range

Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond

40
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Nature's Treat

Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black

Currant, Santra Mantra, Fresh Pineapple
Sundae Range

Mango, Black Currant, Sundae Magic, Double Sundae

Assorted Treat

Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta

Utterly Delicious

Vanila, Strawberry, Chocolate, Chocochips, Cake Magic

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & nut Chocolate.

Brown Beverage:

Nutramul Malted Milk Food.

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,

Rose, Chocolate)
Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

41
MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

42
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Amul — Business Model

CONDENSED
GHEE

RAW
MILK

DRIED
PACAKGED
SKIMMED
MILK
MILK

Every day Amul Collects 7 million liters of milk from 2.6 million formers,
converts the milk into branded, packed products and delivers goods to over
5,00,000 retail outlets across the country.

Its supply chain one of the most complicated in the world.

43
 REASON FOR SUCCESS

Robust Supply Chain.

Low Cost Strategy .

Diverse product mix:- Amul Butter, Ghee, Milk Powde r, Cheese, Chocolate,
Shrikhand, Ice Cream, Amulspray, Milk, Nutramul And Amulya.

Strong Distribution network

Technologhy And E-Initiatives

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

PROPER CHANNEL FOR AMUL PRODUCTS.

“AMUL BRAND’’ is known for the Proper Working Strategy & Distribution
Channel O f all its Products, Starting From the Milk Producers To the End
Consumer. As it is known for the varied Range of Products the Distribution
Channel is Properly Maintained in such a Manner that the End Consumer
Comes up With a Satisfactory Smile After Trusting & Using “AMUL
BRAND’’.

45
46
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

‘AMUL BAKERY’ - A NEW INVENTION FROM AMUL BRAND

TAKING A BOOST TOWARDS SUCCESS.

AMUL BAKERY evolve a marketing philosophy that reflects the

needs of the consumer. With products designed keeping both health and taste in
mind, AMUL BAKERY appeals to both health conscious mothers and fun
loving kids. The great tradition of taste and nutrition is consistent in every pack
on the store shelves, even today. The value- for- money positioning allows
people from all classes and age groups to enjoy amul bakery products to the
fullest.

Amul, the country's biggest dairy brand, plans to expand its fledgling bakery
products business and will soon build a plant that can produce 20 tonnes of
cookies a day, a top official said.

"We are looking at a 40% annual growth for cookies, buns and bread that
accounted for over 20 crore," Rahul Kumar, MD of the 2,800-crore Amul Dairy
said that, "Unlike other brands which use butter flavour we are using 26% Amul
47
butter in our cookies which consumers will like," he added.

The dairy cooperative has been selling cookies in chocolate, multigrain, butter
and coconut varieties for two years in the Anand region catering to neighbouring
markets of Ahmedabad and Vadodara in central Gujarat. It currently has a
manufacturing capacity of 15-20 tonnes of cookies a month, which it says is not
enough to meet demand.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

The company will set up an automated plant at Mogar in Anand within a year,
Kumar said. "We have received good response and feel that we can capitalise on
distribution network of the federation that is experienced dealing with perishable
products," he said.

Six months ago, Gujarat Cooperative Milk Marketing Federation (GCMMF)

decided to brand and pack cookies attractively for the Anand market.

RS Sodhi, managing director at GCMMF, however, said the cooperative is in

no hurry to take its non-dairy business national.

Despite becoming 20-crore portfolio for Amul Dairy, its diversification in

cookies is yet to catch the attention of established players such as ‘Parle
Products’ (maker of Hide & Seek and Milano), Britannia (Good Day) and ITC
(Sunfeast).

A range of bakery items, including bread, bun and toast, is also on the menu of
Kaira District Co-operative Milk Producers' Union, an important member of
GCMMF. Currently, the union is conducting a pilot run for the products at its
facility at Mogar.

According to sources, the union has lined up investments to the tune of Rs 12

crore for setting up a manufacturing facility with a capacity to produce of
1,00,000 bread packets a day, which may be enhanced later. It will manufacture
biscuits and cakes subsequently.

"The biscuit and bakery items project will go on floors after one or two years,"
said Rahul Kumar , managing director, Kaira District Cooperative Milk
Producers' Union.

Besides, GCMMF is there with two awesome milk shakes in three different
49
tastes such as mango, strawberry and banana Which are Ruling the Tongue of
Younsters in the Market.

"Awareness about natural taste and wellness is on the rise among people. After
the response to flavoured milk, butter milk, lassi, Cool Cafe and Cool Coco, we
are going to launch Amul milk shake in three different varieties with taste of
fruits" said R S Sodhi, chief general manager, GCMMF.

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MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

AMUL ICE CREAM

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

HISTORY OF AMUL ICE CREAM

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The
portfolio consisted of impulse products like sticks, cones, cups as well as take
home packs and institutional/catering packs. Amul ice cream was launched on
the plat form of ‘Real Milk. Real Ice Cream’ given that it is a milk company and
the wholesomeness of its products gives it a competitive advantage.

In 1997, Amul ice creams entered Mumbai followe d by Chennai in 1998

and Kolkata and Delhi in 2002. Nationally it was rolled out across the
country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1
position in the country. This position was achieved in 2001 and it has continued
to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market
share of HLL, thus making it 4 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of
flavours to its ever growing range. Currently it offers a selection of 220
products. Amul has always brought newness in its products and the same
applies for ice creams.

In January 2007, Amul introduced SUGAR FR EE & ProLife Probiotic

Wellness Ice Cream, which was a first in India. This range of SUGAR FREE,
LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created
for the health conscious.

52
Amul’s entry into ice creams is regarded as successful due to the large market
share it was able to capture within a short period of time – due to price
differential, quality of products and of course the brand name.

While growing at a phenomenal pace, Amul has always taken care to offer
delectable flavours to all age groups across the society. Over the years, Amul has
added diverse flavours to its range of ice creams so that one can have variety of
choices.

Amul offers a selection of almost 220 products with flavours ranging from
exotic Honey Banana to Kesar Pista and many more.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Manufacturing Units of Amul Ice Creams In ‘INDIA’...

1. Mother Dairy – Bhat, India. 5. India Diary Products Ltd. – Kolkata, India.

2. Banas Diary - Palanpur, India. 6. Vidya Diary – Anand, India.

3. Dudhmansagar Diary – Manesar, India. 7. Vasundhara Diary – Tarapur, India.

4. Baroda Diary – Varodara, India.

SOME IMPORTANT FACTS THAT WHY WE CHOOSE AMUL ICE CREAM.

1. VALUE FOR MONEY.

To offer our customers the best quality ice cream at the best price.

2. REAL MILK REAL ICE CREAM.

They offer the finest products made out of real milk. By advertising ‘Real
Milk. Real Ice Cream’ they have established Amul to be a dairy based ice
cream and have succeeded in achieving leadership.

3. ONLY DAIRY BASED ICE CREAM.

Other ice cream brands use vegetable fat instead of milk fat as the main
ingredient. Vegetable fat based ice cream is known as Frozen Dessert. It is the the
most expensive ingredient being three times cheaper than milk fat. Amul Ice
Cream is the only brand to use Milk Fat making it the non rival dairy based ice
cream.

Also, dairy based ice creams contain Vitamins A, D, E and K. A child can eat a

54
cup of ice cream which is equal to a glass of milk.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

The same is not true for Frozen Desserts.

Satellite Dairies

Among satellite dairies we achieved considerable growth in Kolkata market which

is very encouraging. At Kolkata on an average we sold 5.30 lakh litre milk daily
besides Ice-Cream, Flavoured Milk and Curd. Though we have retained a major
share of Kolkata market, efforts are to further increase the sales volume in the
same Manner.

At Pune and its surrounding markets we are selling packed Milk, Butter Milk
and Curd. Despite tough competition; I am happy to note that we have been able
to improve our market share.

56
I am glad to inform you that at Mumbai we have started milk packing from our
own most modern automated plant operating with Robot system which is the
first ever such effort in India. The present capacity of this plant is 10 lakh litres
per day (LLPD) which can be expanded to 20 LLPD. We have started
manufacturing of Ice-cream also at this plant.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

AMUL PALOURS:-

Amul "Utterly Delicious" Parlours:-

Amul has recently entered into direct retailing through "Amul

Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore,
Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large
chain of such outlets to be managed by franchisees throughout the country. We
have created Amul Parlours at some prominent locations in the country, which
are run by the company or its wholesale dealers:

1. Delhi Metro Rail Corporation

2. The Somnath Temple
3. National Institute of Design
4. Infosys Technologies in Bangalore, Mysore & Pune
5. Wipro campus in Bangalore
6. Ahmedabad Municipal Corporation
58
 "Amul Utterly Delicious" parlours are an excellent business
opportunity for investors, shopkeepers and organizations. In order to come

closer to the customer, Amul have decided to create a model for retail outlets,
which would be known as "Amul Preferred Outlets"(APO).

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

STRENGTH.

1. High brand equity and top of the mind brand.

2. Strong network of over 3 million milk producers.

3. World’s largest manufacturer of pouched milk.

4. India’s largest food brand, trusted for its quality.

5. Number of popular milk products like ice cream, ghee, butter, paneer, dahi,

milk, etc. 6.Products available at affordable price.

7.Market leader in butter segment.

8.Responsible for white revolution in

India.

9. Successful advertising and marketing campaigns.

10. Strong network of Amul retail outlets, stalls and parlours.

60
11.A popular mascot in the Amul girl.

12. Amul has its base in India with its butter and so can easily promote
chocolates without fearing for loses.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

WEAKNESSES

1. There are various big players in the chocolate market, which acts as major
competitors restricting their growth.

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

4. Strong competition from international & domestic players in the ice cream
segment means limited market share.

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.

3. Rise in purchasing power of Indian people.

THREATS.

1. The major threat is from other companies who hold the majority share of

consumers in Indian market i.e. Cadburys and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently

shift their brands.

62
3. New companies’ entering in Indian market like Fantasie fine poses lot problems for Amul.

4. Strong competition from international players.

5. Economic slowdown and inflation.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

MICHAEL PORTER’S 5 FORCE MODEL

DEVELOPED FOR
“AMUL”

The Porter's Five Forces tool is a simple but powerful tool for understanding
where power lies in a business situation. This is useful, because it helps you
understand both the strength of your current competitive position, and the
strength of a position you're considering moving into.

Conventionally, the tool is used to identify whether new products, services or

businesses have the potential to be profitable. However it can be very
illuminating when used to understand the balance of power in other situations.

1. THREAT OF NEW ENTRIES. As Amul is ruling the Market since

many years with a strong Costumer centric Approach. Our Market is as such
Open without any Barriers there are more chances of New Products &
Companies getting entered in the Market.

2. COMPETITIVE RIVALR Y. It plays a major role in due to Other

Brands like Nestle, Mother Diary, who have also established themselves with a
Strong brand Power in the Market which are also the Local Players which
gives a tough competition to Amul in a Proper Competitive Way.

3. BARGAINING POWER OF SUPPLIERS. The Bargaining of

Suppliers are very Low who belongs to the Rural side who are weaker in
adapting the product bargaining po wer & different Strategies used.

4. BARGAINING POWER OF CUSTOMERS. As in open Market

64
Customers has there own desire & own willingness to purchase a product of a
particular quality & brand. Amul also have there own Competitors ruling
customers mind due to there key importance.

5. THR EAT OF SUBSTITUTES Availability of other prod ucts as

substitutes causes a threat to the existing Products there in the market.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

MARKETING & SALES PROMOTION STRATEGY

Looking at the current Indian marketing scenario, “AMUL” is moving

back in time. An expert says that in the evolution of marketing, before the
marketing concept became popular, there is a selling concept which states that
"customers and businesses, if left alone will ordinarily not buy enough of the
organizations products. The organization must therefore undertake an
aggressive selling and promotion effort" In this present scenario, it is true that
companies will survive only if there is a super efficient sales force. The reasons
are that increasingly every product is being commoditized and there is an
increase in the power of retails, information explosion that has given the
consumer an unusual power. This has ensured that without an efficient sales force
companies cannot survive.

Even when companies focus on sales effort, concept like segmentatio n

should not be overlooked. For example, there has been lot of effort on
increasing credit card usage in India. Credit card now comes free for life and
sales people are just selling credit cards like chocolates. Is it not wise to look at
whether the consumer wants a credit card? Does he like to use one? Does he have
the ability to pay back? Recently a news channel showed a mutual fund agent
giving discounts to a client from his brokerage. What does that mean? It simply
means that we are not practicing marketing. We are just selling....

Many business gurus’ are saying that,” customers are the god or king of
the market”. It can be understood from the fact that the customer is not the king
as the companies want the consumer to be loyal. The real fact is that no
company regard customer as the king. Everyone in the market cares about the
66
money. Marketing is creating and exchanging goods of value between company
objectives are achieved in that process. So what is happening now is this
exchange process. Marketers tried to attract customers by treating them well and
thus came the cliche “customer is the K ing". It is only economics in play. It is
now the choice of the customer that whether he wants himself to be treated as a
king (and pay for it).

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

After realizations of the big issue Amul stated to make the

marketing and sales promotion strategy to overcome the problem. Amul is the
largest co-operative movement in India with 2.2 million milk producers
organized in 10,552 co-operative societies in 2003- 2004. The country's largest
food company, Amul, is the market leader in butter, whole milk, cheese, ice
cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul
follows a unique business model, which aims at providing 'value for money' p
roducts to its consumers, while protecting the interests of the milk-producing
farmers who are its suppliers as well as its owners. Despite being a farmers' co-
operative, Amul has given multinationals a run for their money. In butter, cheese
and saturated fats, Amul has remained the undisputed market leader since its
inception in 1955, by offering quality products at competitive prices. In other
categories, Amul has nullified its late mover disadvantage through aggressive
pricing, better quality, innovative promotion, and superior distribution.

Market Share

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 85 percent share in butter market and 75 percent in cheese share
market. It may be mentioned here that Amul is the market leader in Rs 600 crore
cheese market in India with 65-66% share. It also has 88% market share in
butter, 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.

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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.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

WHAT STRATEGIES IS BEING USED BY “AMUL” TO KEEP

THER E NO.1 POSITION IN THE MARKET???

AMUL PRODUCTS LIKE MILK, BUTTER, CHEESE, ICE CREAM &

MANY MORE ARE MOREOVER CUSTOMER CENTRIC SINCE FROM LAST
68 YEARS.

Category Market Mark Position

Share et
BUTTER 85% 1
CHEESE 75% 1
ICE CREAM 38% 1

CHOCOLATE 20% 3

SWEETS 50% 2

As shown in the above table Amul butter is one of the product

which is holding the first position the reason behind it is as such the customers
who are known as the king of Market has made the butter more popular, Instead
of competitors of competitors like mother diary, nestle, Amul Butter is one of
the product which is liked & tasted by almost all the Indian families the reason
behind as such is Amul butter is most commonly used in every household. Amul
is made from butter common salt and permitted natural colour. It is been
marketed from last from 4 decades. Amul butter composes of fresh cream, milk
fat, moisture, salt as well as curd in specific proportions. Low pricing strategies
70
& trying to cater the low middle class people in the market.

Launching a puffed-rice centered bar Launched milk / chocolate

confectionery Planning to enter value- added segments. Amul Chocolate made
of nutritious taste & tries cope with all the age group. As the market share
holding power is low, the company is trying to make some innovations regarding
the taste & packaging mak ing it more tasty & attractive to attract more
customers.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Amul Cheese is the one of the brand which is almost liked & tasted by
every individuals. As such of butter the cheese made by amul is not being
available in all the parts of the country, To cater large number of customers amul
is all set to make an institutional market. By which the sales will be almost similar
to the other products.

Amul ice cream ruling the market with the first position from many
years. The reason behind this catering No.1 position is the awesome taste
delightful flavours & affordable price with right quantity & quality. Due to its
proper justified advertisements & packaging the amul ice cream is able to hold the
No.1 position in the market.

Amul Milk handling the biggest empire of selling Milk 10 million litres
per day has always been on the way of developing the rural side. To holdf there
position in front of there competitors like Mahananda, Aarey, Gokul, Amul is
on the urge on emphasizing on the price and develop the entire Market.

Amul Sweets standing on the second most position providing the products
like Amul shrikhand (Mango, Saffron,Pistachio,Cardamom), Amul Amrakhand,
Amul Mithai Gulabjamun, Amul Mitahi Gulabjamun Mix, Amul Mitai Kulfi Mix,
Avsar Ladoos. Want to come up with some other sweet items which can attract
more customers because the products they provide already exist in the market.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

4PS OF AMUL COMPANY:-

a) PRODUCT:-
Tracks consumer needs & their changing lifestyles, & accordingly
develops products to suit their needs. Product quality plays a paramount
role & so does packaging. Amul ice cream has wide range of variety that
consists of more than hundred flavors available in the market including 20
new flavors, which is introduced in summer. As ice cream is an impulsive
purchase item so, its sale depends mostly on availability and variety.

b) PRICING:-

The main USP of Amul brand is its low pricing. It hits at the
transnationals by reducing its prices on its product portfolio. The competitive
advantage is its “backward integration” strategy, which helps substantially in
cost reduction. The price of Amul ice cream is very less compared to its
competitors. In novelty item the price of the flavors varies from Rs.2 to Rs22.
The pricing strategy of Amul is, to target each income group of the society. The
cheaper price of ice cream is meant for targeting the people with low income.
73
Along with the low income group Amul is also targeting medium as well as the
premium segment by providing different flavors at different prices.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

c) PLACE:-
Any food company requires a dedicated cool chain network. Amul boasts of
the largest cold chain network (18000 refrigerators) in India, as compared
to any other company. It is surprising to note that it sells pizzas in rural
markets too! The distribution of the ice cream in Delhi is done through
exclusive Amul outlets situated in various locations. In Delhi, Amul has
eleven distributors who supplies ice cream to more than 3000 outlets.
These eleven distributors are responsible for their respective areas.

d) PROMOTION:-
Amul spends very less on its advertising budget, but spends it very
effectively. It has the power of an umbrella brand Amul, which is highly
respected brand name & enjoy the trust of 1000 million households. Thank
to its brand mascot, the Amul girl, the co-operative has been able to get
away with spending just one per cent of its revenues on advertising. In
contrast, its competitors spends anywhere between 7 to 10 per cent on
advertising. Amul positioning is “Value for Money”. It uses the services
of Da Cunha Associates & FCB Ulka for its advertising efforts. Amul is a
well-established brand name of GCMMF. For promotion of the ice cream
the company gives advertisement in newspaper and magazines. It gives
glow sign board to every retailers and also makes wall paintings on there
request. Amul uses their punch line ---“Real milk real ice cream” for the
promotion.

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TASTE OF INDIA

Amul Production Facilities

One of the best known examples of policy success in India has been the
“successful implementation of white revolution” and equally celebrated is the
role of the brand in making this event a big success.

From two diary cooperatives and 250 litres of milk per day to a network of 31
lakh dairy farmers, who are members of more than 15,000 village co-operatives.

Milk producers sell their produce to village co-operatives, which is affiliated to

district milk co-operative union and then in turn to the state level milk
marketing federation. A network of 8000 distributers makes Amul products
available at over 4 lakh retail outlets in India.

PRODUCTION OF “AMUL PRODUCTS” TOOK A HIKE...

The year under review has witnessed tremendous demand in Amul products. All
the products like Milk Powder, Butter, Flavoured Milk, Chocolate, Ice-cream,
Paneer, Ghee, Cheese, etc. have shown increased demands. Amul have been able
to produce quality products meeting international standard adopting latest
technologies satisfying customers world over. At Anand the production of
Butter, Milk Powder and Ghee have witnessed an increase of 12%, 15% and
38% respectively. The Khatraj Cheese Plant production witnessed 12% increase
and we have taken up production of value added products and successfully
developed new variety Edem Cheese. The whey powder of world class quality
produced at our plant has been accepted well in the market. The whey powder
production at our Whey Drying Plant at Khatraj indicated an increase of 14%
compared to last year. The Bakery Plant has witnessed significant increase in

76
production of Bread, Toast, Bun, Chocolate & Butter Cookies. During the year
we have produced 940 MT Amul PRO which is three times more than last year.
O ur production of Delicious/Amul Lite witnessed growth of 12% & 10%
respectively. There has been significant demand at West Bengal markets and we
have produced 39.50 lakh litres Ice-cream and 45 lakh litres of Flavoured Milk to
cater to this market. Increased demand and acceptance of our products in West
Benga l markets gives us further confidence to make more efforts to sell more in
this market.

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TASTE OF INDIA

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
contendor is the Amul mascot, a cute and chubby girl usually dressed in a polka
dot. O ver 45 years of existence, the brand has always given a fresh flavour to
Amul Mascot.

The Amul Girls and its new Witty avatar was the brain child of Sylvester da
Cunha, the managing director of the ad vertising agency AS. The ads were
designed as a series of hoardings with designs relating to day-to-day issues.

Amul Dairy Cooperatives, on the occasion of completing its 50 years of

advertising, launched a book called ‘Amul India’.

POINTS WHICH DESCRIBE MARKETING POWER OF “AMUL”

The moppet who put Amul on Indias breakfast table50 years after it was first
launched, Amuls sale figures have jumped from 1000 tonnes a year in 1966 to
over 25,000 tonnes a year in 1997. No other brand comes even close to It. All
because a thumb-sized girl climbed on to the hoardings and put a spell on the
masses.TheAmul girl was the brainchild of SylvesterdaCunha, the managing

78
director of the advertising agency . The ads were designed as a series of
hoardings with designs relating to day-to-day issues.
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.TheAmul ads have witty
one- liners which capture relevant events that have caught the fancy of the
nation.

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TASTE OF INDIA

Not only this, very innovatively AMUL presented its new brand strategy—
The utterly butterly girl to come alive! O n Mumbai, Dec 29, 2000: After
becoming everyonesfavourite little "utterly butterly delicious" girl through print
and television ads, the Amul Butter Girl came alive!The search for an Amul
Butter Girl and an Amul Cheese Boy ended in January 2000, when the Gujarat
Cooperative Milk and Marketing Federation(GCMMF) announced the real life
Amul Butter Girl and Amul Cheese Boy through a national AmulSurabhi
search contest.Acknowledged GCMMFs assistant general manager RS Sodhi:
``The contest was meant to generate enthusiasm among students in every village
and town. This also helped Amuls brand building exercise.

AMUL PRODUCT PACKAGING.

Amul’s Marketing Strategies were always been customer centric. Thus it is
kept in mind that the packaging of all Amul products appeal to the emotional
side of the consumers.

USE OF EXPRESSION
For example the human facial expression of delight on the cheese variant packing
reveal the pleasure people derive from consuming cheese & cheese products.

INFORMATION
Also the need to highlight the nutrient value & best possible use of the product
is an important feature of all Amul products packaging.

PROTECTION
Recently Amul has focused largely upon capturing the branded tetra pack
market with, variants that would last for over 2 weeks to three months even
without refrigeration.
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For Example :- Amul Moti, a new variant toned milk is priced a little higher
than the fresh milk pouch. The UHT (ULTRA HIGH TEMPERATURE) treated
milk is then packed in five layered special pouch to increase its self life to 90
days.

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TASTE OF INDIA

WHAT ARE TRIVIAL STRATEGIES???

When AMUL was formed , consumers had limited purchasing power & modest
consumption levels of milk & other dairy products . thus AMUL adopted:-
Low-Cost Price strategy was adopted to make the product affordable & alluring
to consumers by guaranteeing them value for money.
The main aim of Amul is to provide quality products to the consumers at
minimum cost. The goal of Amul is to provide maximum profit in terms of
money to the farmers.

Low cost of production of AMUL:- Milk production is scale insensitive

and labour intensive. Due to low labour cost, cost of production of milk is
significantly lower in AMUL. Moving consumers to loose milk to packaged milk
and gradually move them up the value chain ( tetra pack to beverages )Being
exposed to a brand , it is natural for a customer to use more products.
1. Product Positioning Strategy
2. • India’s first Pro –biotic Wellness Ice cream& sugar free delights for diabetics.
3. • Amul launches FreshPaneer “free from harmful chemicals”.
4. • Low priced Amul Ice creams made Kwality Walls life hell.

Effective Segmentation Wide range of product categories caters to consumers

across all market segments.
Eg:-Amul Kool is targeted at children, teenagers prefer Kool Café as it has a
cool imagery associated with it. Segmentation is not as easy as in Curd and low
fat products due to mixed audiences. Eg:- Ghee , Butter & Cheese In India, the
most used spread is Ghee, than butter , cheese , low fat butter , margarin, cheese
82
spread & mozzarella cheese.
Changing the Retail Environment Striking out on its own with AMUL outlets or
parlours to deliver consumers total brand experience. Product Repositioning
Amul marketed bottled water named “Jaldhara”due to its less potential in the
market and launched “ Narmada Neer”

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TASTE OF INDIA

The three-tier "Amul Model”

The Amul Model is a three-tier cooperative structure. This structure consists of

a dairy cooperative society at the village level affiliated to a milk union at the
district level which in turn is federated into a milk federation at the state level.
Milk collection is done at the village dairy society, milk procurement and
processing at the District Milk Union and milk and milk products marketing at
the state milk federation. The structure was evolved at Amul in Gujarat and
thereafter replicated all over the country under the Operation Flood programme.
It is known as the ‘Amul Model’ or ‘Anand Pattern’ of dairy cooperatives.

The main functions are:-

• Collection of surplus milk from the producers of the village and payment
based on quality and quantity,

• Providing support services to the members like veterinary first aid,

artificial insemination services, cattle-feed sales, mineral mixture sales,
fodder and fodder seed sales, conducting training on animal husbandry and
dairying,

• Selling liquid milk for local consumers of the village,

• Supplying milk to the District Milk Union.

VILLAGE LEVEL

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STATE DISTRICT
LEVEL LEVEL
 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

FUTURE PLANS OF “AMUL” TO ACHIEVE THE PATH OF SUCCESS…

Amul's on a roll these days, with the Indian dairy industry going through what
R.S. Sodhi calls a "golden phase." The brand has seen a compounded annual
growth rate of 20% over the last five years and the supply of milk has been rising
to meet demand, albeit with a steady increase in procurement prices, which suits
GCMMF, since it is owned by producer co- operatives. "O ur strategy can be
summarized in three words - expand, expand, expand," says Sodhi. "We have set
a turnover target of Rs 30,000 crore for 2018, which is very achievable. But first
we need to invest in increasing milk procurement, processing capacities and
distribution."

Amul's milk producer unions are putting their money where the milk is, with
capital investments of Rs 3,000 crore. The K heda district union recently
inaugurated a new plant in Virar, near Mumbai, and is setting up another
processing facility in Kolkata. The Sabarkantha district union has invested in
Rohtak, while the Banaskantha union is investing in creating capacities in
Faridabad and Kanpur.

While butter will continue to be made in Gujarat, Amul is decentralizing

capacities for other value-added products. To market the increased volume, it is
expanding the reach of Amul's distribution network, which has traditionally
tended to be focused on the larger cities. "We want to be able to reach towns with
a population of less than 20,000. After all, the same TV ads are seen there as in
the cities. Disposable incomes are rising and people there can afford to buy an
Amul ice cream cone or a bottle of Kool," says Sodhi.

After the big success of Masti buttermilk, Kool milk shakes - recently
85
repackaged in coffee, as well as traditional flavours like elaichi, kesar, rose and
thandai - are Amul's next big thing. Sodhi believes that it will be value added
products like Kool, rather than plain milk, which will lead the way in rural
markets. But dairy products require refrigeration and the biggest challenge to
distribution in the hinterlands is extending the cold chain. Devendra Shah,
chairman of Parag Milk Foods, which owns the Go brand, has been wrestling
with this problem for some time and says: "There is demand, but the impediment
is the high freight cost to this large geography, fractured cold chain and large
number of retailers to be serviced in the chain."

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TASTE OF INDIA

As the market leader, Amul is set to lead the way. For one, it is invest ing in
setting up new company-owned depots in smaller towns. For example, K
haragpur, which was earlier under Asansol, now has a depot of its own and so
does Aurangabad, which was fed from Pune. Second, it has introduced a new
layer in the distribution channel called a 'super distributor', who operates at
district level and supplies to sub-distributors at the taluka level. "We have
already appointed 250 super distributors, each with 50 subdistributors. Business
from these areas has increased by 15% already," Sodhi.

On the procurement side, Sodhi believes an increase in profit margins for the
dairy farmers is crucial to keeping up supply, especially in an industrialized
state like Gujarat. "Dairy farming is still a back-of-the- house enterprise in our
country, so the costs are not high. But the young generation of farmers needs to
be motivated with adequate profits if they are to continue with this activity. They
have many options, including industrial jobs. I think that will a challenge as we
go forward," he says.

Amul has come full circle. From selling village-procured milk to the cities, it is
now selling value added dairy products back to the villages. It's a symbol of
how rural India has changed and developed. Bharat, it seems, is getting a taste
of India.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Corporate Social Responsibility, “The Amul Way”

Corporate social responsibility (CSR) has been defined as the “commitment of

business to contribute to sustainable economic development working with
employees, their families, the local community, and society at large to improve
their quality of life, in ways that are both good for business and good for
development.”
Indeed, a very tough task. Most businesses would certainly flounder in not
being able to achieve at least one or many of those expectations. But AMUL
has shown the way.
CORPORATE SOCIAL RESPONSIBILITY-THE AMUL WAY CSR-sensitive Business
Philosophy To serve the interests of milk producers and To provide quality
products to consumers as value for money. CSR-orientation To Distributors &
Retailers CSR-oriented To Staff.

AMUL RELIEF TRUST A devastating earthquake hit Gujarat on 26 th January

2001. The epicenter of the quake was located in Kutch district. GCMMF formed
a specific organization named “Amul Relief Trust” in 2001 with a donation of
Rs. 50 Millions for reconstruction of the school buildings damaged in the
earthquake. The Trust reconstructed 6 schools damaged by the earthquake.
Green Gujarat Tree Plantation Campaign The milk producers of Gujarat Dairy
Cooperatives are conducting mass tree plantation drive every year on
Independence Day for last three years
. The idea is "one member five tree (2009). The entire plantation activity is
coordinated at all the three tiers of Anand pattern - at village, district and state
level dairy cooperatives

88
CSR undertaken by Amul Encourages woman to participate in dairy co-op
societies. To develop and enhance leadership skills and qualities among women.
Amul’s member unions organized three self managing leadership workshops at
PRAJAPITA, BRAHMAKUMARIS, MOUNT ABU. 3100 women participated
in this programme. Organization of AMUL YATRA in Anand .

Amul has been also implementation with TSC (TOTAL SANITATION

CAMPAIGN) to improve the sanitation at village level. There aim is to
Complete the built up of 6882 toilets over 73 societies. They are also on the
urge of providing interest free Loans to the Farmers.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK

PRODUCERS OF DAIRY COOPERATIVES
Amul Coops plant more than 311.98 lakh trees.
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL
have been celebrating the nation's Independence Day in a novel manner by
planting lakhs of saplings across Gujarat and have taken up an ambitious plan to
save the environment by planting trees, making India green and thereby
reducing the effects of global warming. The milk producers of Gujarat Dairy
Cooperatives are conducting mass tree plantation drive every year on
Independence Day for last five years. In last five years (2007 to 2011) the milk
producers have planted around 311.98 lakhs trees). The most striking feature of
these entire programmes was that it has been initiated by milk producer
members of the dairy cooperatives. The unique fact about the programme was
that the milk producer members took up the oath to protect tree saplings till it
survives and grows into tree.

Over the years, due to intensive agriculture and dairying various natural
resources are gett ing consumed at faster pace in Gujarat state of India. The state
level apex body of dairy farmers in Gujarat gave a serious thought in this
direction and discovered a novel idea for giving back to nature. The idea was
"one member one tree" plantation on our 60th Independence day - 15th August
2007.To put this idea in to the practice a design team constituting of
representatives of member unions were formed. The team accepted the idea by
heart and immediately decided to spread it among farmer members of village
dairy cooperative societies. Then the idea was communicated to farmer members
and they all welcomed it and enthusiastically agreed to implement the idea.

For smooth implementation of the idea, the design team chalked out the road
90
map for various activities. Execution teams were formed at district union level to
give final shape and put the plan in action. Village level coordinators were
identified and they were trained to streamline activity of tree plantation. Various
awareness materials were prepared. Through various communication media
farmer members were made aware of benefits of tree plantation and tree
plantation activity schedule

The entire plantation activity was coordinated at all the three tiers of Anand
pattern - at village, district and state level dairy cooperatives. On 15th August,
2007, after the flag

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

hoisting ceremony, each member took an oath to plant saplings and ensure that
they grew in to trees. Then individually they planted sapling on their own at their
identified locations lik e their farm, near their home, on Farm bunds, etc. They
have taken necessary care to ensure that this sapling survives and they also
reported regarding the survival to village level coordinator and district milk
unions after five months. In this way, 18.9 lakh trees were planted on 15th
August 2007.

This was just the beginning. Henceforth, the Village Dairy Cooperative Societies
of Gujarat as a mark of respect for our nation decided to conduct such event on
every Independence Day and accepted 15th August (Independence Day) as
a"Green Revolution Day by Afforestation to Protect Mother Earth from
Pollution, Climate change and Global Warming".

But all this required immaculate planning and execution. An action plan of tree
plantation programme was drawn up months back in advance. After the
identification of the chief coordinator for each district milk union, the
organization of a task force for the programme was put in place. Roles and
responsibilities were assigned to each member and area of operation allocated.
After preparing the overall action plan, each union issued a circular to the Dairy
Cooperative Societies regarding the programme and arranged meetings with the
societies covered. At the village level, coordinators were identified in respect of
the villages to be covered and the number of saplings required. Along with
logistical arrangements direct contact was established with different agencies for
receipt of saplings. Pointwise methodology for implementation of tree
plantation programme on such a mass sca le is as following.

In year 2009 and in year 2010, in mass tree plantation programme around 84.24
and 83.5 lakhs tree saplings were planted respectively. The programme was
92
conducted on "One me mber, Five tree" basis. Further, this year 2011
around 72.6 lak hs trees were planted, the programme was carried out as per the
same process and procedures followed in last year. Hence, in last five years, milk
producers of GCMMF planted around 311.98 lakhs tree saplings in 21
districts of Gujarat. By doing so, milk produce rs of Gujarat Dairy Coope
ratives have shown their concern, awareness and commitment for
betterment of environme nt.Yearwise details of tree plantation and survival of
tree saplings planted is as under.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
TASTE OF INDIA

Sr Year of tree No of trees No of trees Surviva

. plantation . planted (in . Survived (in l
N lakhs) lakhs) percenta
o ge
1 2007 18.90 11 58
2 2008 52.74 26 49
3 2009 84.24 38 45
4 2010 83.5 39 47
5 2011* 72.6 34 47
Total 311.9 148.12 47
8 2

This effort to provide green cover to the earth was also acknowledged when the
state level apex body of Gujarat Dairy Cooperatives - GCMMF received four
successive prestigious "SRISHTI's G-Cube Award"-2007, 2008, 2009 and
2010 for Good Green Governance in the "Service Category".

Further, "Amul Green" movement has also been awarded by International Dairy
Federation for best environment initiative in the "sustainability category" during
the 4th Global Dairy Conference held at Salzburg Congress Center, Austria on
28th April, 2010.

It has been estimated that when one tree is cut, in monetary terms there is loss or
Rs. 33 lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs.
10.5 lakh for reduction of pollution of atmosphere and Rs. 5.3 lakh towards
Flowers / Fruits and habitation to birds - animals). But the benefits that accrue to
mankind when a tree is planted cannot be measured in money and is priceless.

The producer members of GCMMF have really set an example for all the

94
cooperatives and other institutions to turn India green in the era of Global
warming and environmental crisis.

When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh
trees in just five years and are planning to plant more trees every year, they are
doing an invaluable - truly Amul - service to the society.

In an era of global warming, Amul is contributing its share in making Gujarat

lush green. In this way, the milk producers of Gujarat are ushering in a silent
revolution of greening Gujarat.

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 MARKETING STRATEGIES & PRODUCTION PROCESS OF AMUL – THE
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“Amul” has Competitive sustainable advantage (CSA) over its competitors

❖ Amul’s CSA lies in its procurement part ,the ability to collect 7 million

liters of milk from 2.6 million formers, convert them into goods worth

Rs 6 crore and distribute them to 5,00,000 retailers across country ,is not

easy. No other dairy in India has such a sustainable procurement network.

❖ Managing the large scale supply chain of Amul which begins from milk

producer and ends with supply to customer from retailer is very critical

job. It requires lot of dedication and hard work from all members of the

corporation and also distributors and retailers across country.

❖ Intelligent Marketing of Amul.

❖ One of the most conservative FMCG entities GCMMF-Spends a mere

1% of its turnover on the promotions.

❖ Amul butter girl is one of the longest run ad campaigns in the country for 41 years.

❖ Intelligent marketing of milk, ice cream and butter milk.

❖ GCMMF (AMUL) Beats Recession, Achieves, A Turnover Of Rs.

6700Crores (June 05, 2009)

❖ Entered in the Guinness Book of World Records for being the longest

running campaign Ever.

❖ Providing a product that works as claimed, is accompanied by

decent service, and is delivered on time.

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ADVERTISEMENT DONE BY “AMUL” TO

PROMOTE THERE BRAND.

In 1966, Amul hired Sylvester daCunha, then managing director

of the advertising agency AS to design an ad campaign for Amul Butter.
daCunha designed a campaign as series of hoardings with topical ads, relating
to day-to-day issues.It was popular and earned a Guinness world record for the
longest running ad campaign in the world. In the 1980s, cartoon artist K umar
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 Verghese Kurien with creating a free
atmosphere that fostered the development of the ads.

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 the Naxalite uprising in
West Bengal, on the Indian Airlines employees strike, and one depicting the
Amul butter girl wearing a Gandhi cap.

Its advertising has also started using tongue- in-cheek sketches

starring the Amul baby commenting jovially on the latest news or current
events. The pun in her words has been popular. 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.

Since 1967 Amul products' mascot has been the very recognizable
"Amul baby" (a chubby butter girl usually dressed in polka dotted dress)
showing up on hoardings and product wrappers with the equally recognizable
tagline Utterly Butterly Delicious Amul. The mascot was first used for Amul
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butter. But in recent years in a second wave of ad campaign for Amul products,
she has also been for other product like ghee and milk. She is probably one of the
most enduring mascots in the world.

Amul being a perfect in Promoting there Products through various

Campaigns, uplifting some or the other social issues, Issues which can create an
awareness among the people about a particular topic is being picked up by
‘AMUL’.

For them promoting there brand is little more easy through media as
such like being the Main Sponsors & Associate Sponsors for various Reality Shows
& Programs.

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SOME POPULAR HOARDINGS PUT FORTH BY AMUL.

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Latest Amul hoarding pays homage to Dev Anand

Known for its creative campaigns, this butter brand has yet again come up
with something that touches your heart and soul

The recent Amul ad that pays tribute to the late legend has opted for a caption
that’s a famous song from his movie Hum Dono (1962). Summarising the
vivacious veteran’s life in just one line – Main Zindagi Ka Saath nibhata chala
gaya, the creative team behind the campaign couldn’t have come up with a better
idea. As Dev saab has and always will be remembered as an evergreen person,
the hoarding doesn’t fail to mention the most prominent aspect of his personality,
his liveliness, by labelling themselves as the ‘evergreen butter’. The ad is sure
to take you back to the black and white era , wherein everything was as soulful
and indigenous
as the hearty Dev Anand. We appreciate the brand’s initiative of coming up
with a concept that venerates the most exuberant man of Indian cinema without
sounding buttery, however ironic it may sound. And the creative tinge in the
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poster makes it all the more interesting, just the way a typical Amul hoarding
has been since ages.

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Survey Questions.

1. HAVE YOU EVER USED ANY OF THE AMUL PRODUCT?

YES 40 98%
NO 0 0%

2. Which Product Do You Prefer Mostly?

Amul Ice Cream 18 44%

Amul 2 5%
chocolate
Amul Butter 13
32%
Amul Cheese 5
12%

3. Which of the Following Product do you Feel is more Popular?

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Amul Butter. 35 85%
Amul Cheese 5 12%

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4.Do You Feel that Amul Ice Cream is Really the Best Compared
to Vadilal & Kwality Walls?

YES 28 68%
NO 12 29%

5. Have you ever visited Any of the Amul Parlour?

YES 30 73%
NO 10 24%

6. Have You ever gone through any of the Amul Campaign?

YES 10 24%
NO 30 73%

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Have you ever tried AMUL UHT (ULTRA HIGH TEMPERATURE)

7.
Milk?

YES 8 20%
NO 32 78%

8. Have you ever tried the following royal treat range of Amul ice cream?

Raj bhog 7 17%

Malai Kulfi 13 32%
Keasr Pista 16 39%
Anjeer Ice cream 4 10%

9. Which is the Best Milk to Prefer After Amul

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Mahananda 9 22%
Gokul 20 49%
Aarey 10 24%
Nestle 1 2%

10. Do You feel that the Celebrities Should be Involved in Promoting Amul Products?

YES 14 34%
NO 26 63%

11. Do You Feel That The Amul Products Can Be Consumed

Through All The Generation People?

YES 35 85%
NO 5 12%

12. Whom Do You Feel Is The Strong Competitor in Front Of Amul?

Nestle 18 44%
Mother Diary 20 49%
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SUGGESTIONS & RECOMMENDATIONS.

Amul can venture out on new products like Toned milk, Condensed milk
that can be used for sweets, Baby food products,

There are certain product like Amul basundi, gulab jamoon, chocolates etc
which are not as popular as Amul ice cream. Amul must try to understand the
cause of this through thorough market research and work on improving these
products

Though Amul’s hoardings are a huge success, it can penetrate even better in
the rural areas by advertising through the media via cable channels and
newspapers. Sponsoring shows in TV, sports events can be of great help.

Focus on retail expansion in Indian cities, towns and villages – increase

branded Amul parlours to capture the consumer attention and keep the
competition at bay.

Amul can venture into offering low-fat versions of its products as it would help
capture the hearts of second and third generation Indians in US & Global
Market.

Amul can venture out on new products like dairy based sweets, baby food products.

Salesmen should be given the responsibility to handle the retailer’s grievances

Orders by the retailers should be executed in a proper manner to avoid irregular
availability. Promotion activities should take into consideration in two different
ways:-
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a) Company should associate themselves with social events,
b) Company should use electronic as well as print media for their advertisement.

There have been a lot of complaints about replacement policy of Amul. Amul
should try to improve its replacement policy and make it somewhat liberal.

Innovative schemes like Privilege cards giving discount on successive

purchases may be introduced to make a customer brand loyal to Amul.

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CONCLUSION:-

GCMMF that owns Amul , Asia’s largest milk brand realized that with the
changing lifestyle & increased awareness about health issues , there has been a
discernable shift towards health based drinks from carbonated drinks. To utilize the
potential of flavoured milk, butter milk & other milk based beverages that have an
age old tradition in India. By identifying the
targeted teenagers & youth , who were biggest consumers of colas & aerated
drinks. The New variants of the brand were advertised through major national
channels with special focus on youth oriented TV channels like MTV & Cartoon
Network . By identifying the trend & introducing variants , Amul has been
emerged as the fastest growing brand in non-carbonated soft drinks category.
Compared to the distribution network of other brand of beverages to the Amul, it
has to improve their network properly and make product available to the
customer and also handle the customer problem if any. Company has to
maintain a good relationship with the retailers by giving better margin,
schemes/discounts.

Amul plans to be a leader in food business. This 3458 crore co-operative is

planning to enter in restaurants, ready-to-eat curries etc. it also plans to launch
ready to drink coffee and tea. The plan of this co-operative is to make Amul,
India’s best known food brand and also to garner a sizable marketplace in 30
countries wherein its products are exported to. The brand should not be known in
milk, butter & cheese but as a food brand. Its numerical target, a turnover in
excess of Rs. 10000 crore by 2018.

In words of Dr, verghese Kurien, chairman (GCMMF). Amul is a

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brand that is trustworthy of 1000 million Indians. Why should it be seen only as
a brand label for butter? Hope, its competitors are listening!

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WIBILOGRAPHY

➢ www.amul.com

➢ www.indiadairy.com

➢ http://marketingpractice.blogspot.com

➢ http://www.fmcgmarketers.blogspot.com

➢ http://www.indianfoodindustry.net

➢ www.ibef.org

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