imc of amul

Amul Brand

A PROJECT REPORT ON BRANDS AND BRANDING OF AMUL Submitted to University of Mumbai in Partial fulfilment Of the requirement of the Degree of M.COM (BUSINESS MANAGEMENT) PART 1. Under guidance of PROF. S.N.CHITALE SUBJECT MARKETING STRATEGIES AND PLANS VPM’ S K.G Joshi College of Arts N.G Bedekar College of Commerce Thane (W) Academic Year: 2014-15 BYANAGHA AJIT PURANIK Roll No.16

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Amul Brand

DECLARATION

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Amul Brand I am ANAGHA AJIT PURANIK studying in MCOM Part-1 hereby declare that I have done a project on reference to BRANDING OF AMUL

BRFANDS AND

As required by the university rules, I state that

the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university. Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references.

Student (ANAGHA AJIT PURANIK)

Place: Thane DATE:

ACKNOWLEDGEMENT 3

Amul Brand It gives me great pleasure to declare that my project on BANDS AND BRANDING OF AMUL have been prepared purely from the point of view of students requirements. This project covers all the information pertaining to BRANDS AND BRANDING . I had tried my best to write project in simple and lucid manner. I have tried to avoid unnecessary discussions and details. At the same time it provides all the necessary information. I feel that it would be of immense help to the students as well as all others referring in updating their knowledge. I am indebted to our principal Dr. Mrs. Shakuntala A. Singh Madam for giving us such an awesome opportunity. I am also thankful to our coordinator Mr. D.M. Murdeshwar Sir and also librarian and my colleagues for their valuable support, co-operation and encouragement in completing my project. Special thanks to Prof.S.N.CHITALE my internal guide for this project for giving me expert guidance, full support and encouragement in completing my project successfully. I take this opportunity to thanks my parents for giving guidance and for their patience and understanding me while I am busy with my project work. Lastly I am thankful to God for giving me strength, spirit and also his blessings for completing my project successfully.

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Amul Brand

SR.N O 1.

CONTENTS

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4. 5. 6. 7.

INTRODUCTION TO BRANDS AND BRANDING COMPANY PROFILE AMUL’S JOURNEY TOWARDS EXCELLENCE STORY OF AMUL DISTRIBUTION NETWORK COMPETITIVE ADVANTAGE PRODUCTS OF AMUL

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ADVERTISING STRATEGIES

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2. 3.

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COMMUNICATION MIX

10 15 17 22 25 27 44

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MARKETING

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AMUL BRAND MARKETING STRATEGIES COMPETITORS

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SWOT ANALYSIS

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CONCLUSION

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BIBLIOGRAPHY

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Amul Brand

BRANDS AND BRANDING INTRODUCTION

Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers."[1] Brands are used in business, marketing, and advertising. Initially, livestock branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hotbranding iron. A modern example of a brand is Coca-Cola which belongs to the Coca-Cola Company. In accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation's balance sheet. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value. The word "brand" is often used as a metonym referring to the company that is strongly identified with a brand. A commodity brand is a brand associated with a commodity. The word "brand" derives from the Old Norse "brandr" meaning "to burn" recalling the practice of producers burning their mark (or brand) onto their products. The oldest generic brand, in continuous use in India since the Vedic period (ca. 1100 B.C.E to 500 B.C.E), is the herbal paste known asChyawanprash, consumed for its purported health benefits and attributed to a revered rishi (or seer) named Chyawan.This product was developed at Dhosi Hill, an extinct volcano in northern India. The Italians used brands in the form of watermarks on paper in the 13th century. Blind Stamps, hallmarks and silver-makers' marks are all types of brand.

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Amul Brand Although connected with the history of trademarksand including earlier examples which could be deemed "protobrands" (such as the marketing puns of the "Vesuvinum" wine jars found at Pompeii), brands in the field of massmarketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of a trademark. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price – they represent the sum of all valuable qualities of a product to the consumer. A widely known brand is said to have "brand recognition". When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. Brand recognition is most successful when people can state a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors. For example, Disney successfully branded its particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com. Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic . From the perspective of brand owners, branded products or services can command higher prices. Where two products resemble each other, but one of the products has no associated branding , people may often select the more expensive branded product on the basis of the perceived quality of the brand or on the basis of the reputation of the brand owner.

Brand awareness Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and to link to the brand name, logo, jingles and so on to certain associations in memory. It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services sell under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of 7

Amul Brand critical importance in competitive situations, since customers will not consider a brand if they are not aware of it. Various levels of brand awareness require different levels and combinations of brand recognition and recall: 

Most companies aim for "Top-of-Mind". Top-of-mind awareness occurs when a brand pops into a consumer's mind when asked to name brands in a product category. For example, when someone is asked to name a type of facial tissue, the common answer is "Kleenex", represents a top-of-mind brand.

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Aided awareness occurs when consumers see or read a list of brands, and express familiarity with a particular brand only after they hear or see it as a type of memory aide.

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Strategic awareness occurs when a brand is not only top-of-mind to consumers, but also has distinctive qualities which consumers perceive as making it better than other brands in the particular market. The distinction(s) that set a product apart from the competition is/are also known as the Unique Selling Point or USP.

Marketing-mix modeling can help marketing leaders optimize how they spend marketing budgets to maximize the impact on brand awareness or on sales. Managing brands for value creation will often involve applying marketing-mix modeling techniques in conjunction with brand valuation.

Brand elements Brands typically comprise various elements, such as:  

name: the word or words used to identify a company, product, service, or concept logo: the visual trademark that identifies a brand

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tagline or catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels

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graphics: the "dynamic ribbon" is a trademarked part of Coca-Cola's brand 8

Amul Brand 

shapes: the distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands

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colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

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sounds: a unique tune or set of notes can denote a brand. NBC's chimes provide a famous example.

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scents: the rose-jasmine-musk scent of Chanel No. 5 is trademarked

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tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken

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movements: Lamborghini has trademarked the upward motion of its car doors

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customer-relationship management

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Amul Brand

COMPANY PROFILE THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it 10

Amul Brand was chosen because it was a perfect acronym for Anand Milk Union Limited . AMUL was formed under the dairy cooperative movement in India in 1946. Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat 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. AMUL is the brand under this organization. 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. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi G Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

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Amul Brand

Company History Amul was set up in 1946 and its full form is Anand Milk- producers Union Ltd. The Brand Amul is a movement in dairy cooperative in India. The management of the brand name is done by the Gujarat Co- operative Milk Marketing Federation Ltd (GCMMF) which is a cooperative organization.

Location Amul is located in the town Anand which is in the state of Gujarat and it has set up itself as a model for development in the rural areas. For Amul Brand has started the Revolution White of India which has helped to make the country the biggest manufacturer of milk and its by products in the whole world. Amul has around 2.6 million producer members and the total capacity for handling milk is around 10.16 million liters every day. The brand's capacity for milk drying is around 594 Mts. each day and its capacity for cattle feed manufacturing is about 2640 Mts. each day.

Product Portfolio Amul is the biggest brand in the pouched milk sector in the world and in India it is the biggest food brand. Amul's range of products includes milk, ghee, milk powders, curd, ice cream, paneer, cream, chocolate, cheese, butter, and shrikhand.

Brand Umbrella The various brands of Amul's bread spreads are Amul Lite, Amul Butter, and Delicious Table Margarine. The Brand Amul's milk drinks are sold under various names such as Amul Kool, Amul Kool Cafe, Kool Koko, Amul Kool Chocolate Milk, and Amul Masti Spiced Buttermilk. Amul's powder milk are sold under many names like Amulya Dairy Whitener, Sugar Tea Coffee Whitener, Sugar Skimmed Milk Powder, and Amul Instant Full Cream Milk Powder. The brand's cheese are also sold under various names such as Gouda Cheese, Amul Cheese Spreads, and Amul Emmental Cheese. Amul Brand's desserts are sold under many names like Amul Basundi, Amul Lassee, Gulab Jamun Mix, Amul Shrikhand, and Amul Ice Creams.

Business Markets Amul exports its products to various countries such as USA, Australia, Mauritius, China, Hong Kong, Singapore, UAE, and Bangladesh.

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Amul Brand

Awards The Food Brand Amul has received various awards such as the Ramkrishna Bajaj National Quality Award in 2003, Award International Cio 1000 for Resourcefulness, and also the Rajiv Gandhi National Quality Award in 1999.

Company Financials The sales turnover of the Brand Amul :Sales Turnover Figures Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Rs (million) 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113

US $ (in million) 493 500 500 575 616 672 850 1050 1325 1504

What is Amul all about? BUSINESS needs ideas, not merely money. Ventures run on just money, but starved of ideas, would eventually fall prey to competition and perish. And, if ideas are available in abundance, business can overcome other handicaps, including its relative weaker money power, compared to that of its rivals. The success story of the Gujrat Co-operative Milk Marketing Federation (GCMMF) proves this point. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milkproducing 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.

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Amul Brand  The Amul Pattern has established itself as a uniquely appropriate model for rural development. 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’s is India’s largest diary producing company with over half the market leading other national companies such as Mother Diary and multinational food product companies such as Nestle India and Hindustan Lever Ltd.  Amul demonstrates how careful and consistent product stewardship combined with a deep and intimate understanding of the market leads to consistent growth and success. The company can process nearly 10 million litres of milk each day.  The company started as the Gujarat Cooperative Milk Federation in 1946,collecting just 250 litres of milk a day. The company was formed to give farmers their due and protect them from unscrupulous middlemen. Since then the company has come a long way . but one thing is still the same . that time also it was by and for the farmers and today also it’s the same .  In the mid 1950’s Amul looked for ways to utilize the surplus milk by manufacturing Butter, Milk,Cheese and other milk derived products.  It is integrated into the fabric of Indian society ,from its roots in representing small farmers and struggler or the poor and impoverished in difficult circumstances.  The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Union Limited)  Amul, a brand owned by the 26 lakh milk producers of Gujarat has once again demonstrated that when farmers are given the instruments of development in their hands, they can work wonders. The billion dollar Gujarat Co-operative 14

Amul Brand Milk Marketing Federation, the apex body of 13 district milk producers’ unions has been instrumental in making Amul a brand to reckon with.

 GCMMF Today GCMMF is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat, 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. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business  The AMUL experience has attracted considerable interest from the development community – predominantly anthropologists, development & agriculture economists, and political scientists. Key areas of their enquiry have been the role of AMUL in reducing social and economic inequality Amul 1956

Ice cream 1996

Chocolates 1973

Shrikhand 1980

Fat Free Nutrauamul Gulabjamun Dessert 1973 1997 2002 Softy Mix 2001

Fresh Milk 1956

Milk Power 1958

Cheese 1962

Breadspread

Ghee 1956

UHT Range 1980/99

Amulspray 1968

Cheese Spread 1986

Amul Butter 1956

Cow Ghee 2002

Eclairs 2001

Gulabjamun Condensed mix Milk 1999 1996

Amul WMP 1960

Paneer 1997

Amul Lite 1994

Amul Shakti 2003

Kulfi Mix Buttermilk 2001 1998

Amulya 1987

pizza Cheese 1998

Margarine 2004

Chocozoo 2005

Laddoo 2004

fresh Curd 1999

Basundi 2005

Flavoured Milk 2001

Khoa 2006

Fresh Cream 2002

Amul IMF Emmental 1&2 Cheese 2001 1999 Instant FCMP 2002

Frozen Pizza 2002 Gouda Cheese 2002 15

Amul Brand Kool Cafe 2005

AMUL’s Journey towards Excellence AMUL’s journey towards excellence is marked by some critical understanding of the business environment in large emerging economies like India where markets have to be developed by combining efficiency related initiatives with increasing the base of marginal suppliers and consumers. The essence of AMUL’s efforts was as follows: 1 • It combined market and social development in an emerging economy. It recognized the inter-linkages between various environments that governed the lives of marginal milk farmers and the unmet needs of consumers. 2 It also changed the supply chain paradigm in order to reduce the cost to the consumer while increasing the return to the supplier. 3 4 • It realized that in order to achieve their objectives, it had to benefit a large number of people – both suppliers and consumers. While large scale had the danger of failure due to poor control and required more resources, it also had the advantage of creating a momentum that would be necessary to bring more people into the fold and thereby help more suppliers and consumers. 5 • It also realized that its goal could only be achieved in the long run and this required developing values in people and processes that were robust, replicable and transparent. 6 7 • It also realized that the cooperative would not be independent and viable in the face of competition if it were not financially sound. This implied that AMUL had to develop distinct capabilities that would deliver competitive advantage to its operations.

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Amul Brand

The 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. How do managers at Amul prevent the milk from 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 [ Images ], 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. The picture is always prominently displayed. The message is clear: never forget your primary customer. If you don't, success is certain. The proof? A unique, Rs 2,200 crore (Rs 22 billion) enterprise.

Organisation 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 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 now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the 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 forces and that proactive intervention was required. Two key requirements were identified.

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Amul Brand 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 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.

Developing demand At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.

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

The distribution network Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This

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Amul Brand practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations.

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 Jal Dhara brand while fruit drinks bear the Safal name. By insisting on an umbrella brand, GCMMF not only skillfully avoided interunion 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 organisations and entities in the supply chain and decentralised 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 the desired degree of control. Buy-in from the unions is assured as the plans are approved by GCMMF's board. 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.

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Amul Brand

Managing third party service providers From the beginning, it was recognised 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 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. This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic infrastructure.

Establishing best practices A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data 20

Amul Brand gathering and analysis.) For example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers.

Technology and e-initiatives GCMMF's technology strategy is characterized by four distinct components: new 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 GCMMF 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. Today customers can order a variety of products through the Internet and be assured of timely 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. The author is Professor at the Indian Institute of Management, Ahmedabad and Devnath Tripati, Editor of the Asian Journal of Operations Management.

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Amul Brand

Amul's Umbrella Branding and Distribution network strategy.

An umbrella brand is a brand that covers diverse kinds of products which are more or less related. It applies also to any company that is identified only by its brand and history. It is contrasted with individual branding in which each product in a portfolio is given a unique identity and brand name.

Amul has high brand equity and umbrella branding of Amul has helped the company in bigger sense. Amuls’s brand name has helped its other brands also like Mitahi made, Amul Ice creams, chocolates, Amul Kool etc. So umbrella Brand, Amul is used to build and offer value to customers in bigger sense. In literal sense, a company has high brand equity if it has multi dimensions. Amul has explored various available opportunities to reach to mass customers. It has opened a community on public forums like orkut, sponsored events like Amul voice of India etc. The brand value of Amul will surely help company to maintain the status of largest food brand in India at least for sometime in future.

Amul’s strategy of using “umbrella branding” has really paid off. Amul’s advertising and marketing spend has never exceeded 1% of its revenues. Amul’s creatives—in the form of billboards or the Taste of India campaign—have always managed to evoke a larger-than-life brand feel, consistency and spirit of Indian culture in a contemporary way.

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Amul Brand

Distribution Network

Consumers expect marketers to deliver products in the locations and forms they require. To meet expectations of such demanding consumers, alignments of our four Distribution Highways of Fresh, Chilled, Frozen and Ambient products were already made by introducing Project DIL. Subsequently, a major initiative was taken to enhance distribution network to smaller towns. About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal. Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted.

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Amul Brand

AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the consumer is well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i.e. it supplies pizzas even to rural market. Last year, theye divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range. The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real “Marketing Manager” of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component in the Federation’s distribution process. Unfortunately, availability of efficient cold storage facilities is grossly inadequate in our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federation’s own cold stores this year in various locations across the country. We now own 24 state-of- the art cold rooms of different sizes.

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Amul Brand To get an exposure to our cooperative structure, our culture as well as operational systems and processes, every year we invite our distributors, major retailers and other business partners to Anand, for Amul Yatra. So far, about 7000 Distributors and other business partners have participated in this Amul Yatra.

Over recent years, the Federation has successfully introduced new product lines. This year, in order to leverage their distribution network strengths, to optimize market supervision expenditures, to achieve increasing efficiency while keeping the distribution infrastructure lean, focused and productive, the Federation amalgamated its different distribution networks. Today, they operate an efficient distribution infrastructure consisting of 46 sales offices, catering to 3,000 distributors and five lac retailers. Almost every Federation stockist has visited Anand to participate in a unique programme called 'Amul Yatra'. During this programme, stockists are exposed to the Federation Philosophy, the culture of Cooperation, as well as operational Systems and Processes. The Federation has also invited distributor's salesmen from all over the country to Anand for a training program focused on the Federation's philosophy and developing their selling skills.

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Amul Brand

COMPETITIVE ADVANTAGE  Amul has Competitive sustainable advantage (CSA) over its competitors. Amul’s CSA lies in its procurement part ,the ability to collect 447,000 litres of milk every day from 2.12 million farmers ,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  It is not that Amul had a successful campaign, many of its ads backfired. One ad meant to target Marathi segment during Ganpati festival had to be removed under political pressure. In another incident on advertisement in which Amul girl was wearing Gandhi cap had to be again removed. In one another incident Amul had aired an ad portraying Hussain as “Heroine addiction”, for this Amul was taken to court.  Most of Amul’s communication is based on latest happenings in the country. That is why its ads are termed different from what is that of its nearest rival, Mother dairy. Most of Mother dairy ads are directly targeted to children where as Amul’s ad are on current affairs, in which adults are also involved.  The key to retaining their 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. The Federation has invested substantially over the last few years in improving the quality of its products and services, keeping in mind the emerging challenges of globalization. In recognition of its achievements in Quality Management Initiatives.

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Amul Brand

Their core business is marketing branded food products to household consumers. Their success has been grounded in two strengths : Distribution network, serving more than five lac retail outlets.  Superior product quality - 'Value for money' The key to maintaining these two competitive advantages rests on their ability to attract and retain the very best manpower. In this age of intensive competition, only dedicated and committed professionals can successfully manage their business.

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Amul Brand

Amul’s Products Bread Spreads Amul

Butter

Amul

Utterly Butterly Delicious

Delicious

Table

Lite

Low fat, low Cholesterol Bread Spread

Margarine

The Delicious way to eat healthy

Milk Drinks Amul Kool Millk Shaake

Amul Kool

Amul Kool Cafe

Kool

Koko

A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul

Energy

Drink

Amul Kool Chocolate Milk

A drink for Kids provides energy to suit the needs of growing Kids

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Amul Brand Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul

Amul Kool Thandai

Masti

Spiced

Buttermilk

Amul introduces the Best Thirst Quenching Drink

Powder Milk Amul

Spray

Infant

Milk

Food

Amul Instant Full Cream Milk Powder

Still, Mother's Milk is Best for your baby

A dairy in your home

Sagar

Sagar Tea Coffee Whitener

Skimmed

Milk

Powder

Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. Amulya

Dairy

Whitener

The Richest, Purest Dairy Whitener

Fresh Milk

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Amul Brand Amul

Fresh

Milk

Amul Gold Milk

This is the most hygienic milk available in the market. Pasteurised in state-of-theart processing plants and pouch-packed for convenience. Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Cheese Amul Pasteurised Processed Cheese

Amul

100% Vegetarian Cheese made from microbial rennet

Tasty Cheese Spreads in 3 great flavours..

Amul

Amul

Emmental

Cheese

The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Cheese

Pizza

Mozzarella

Spreads

Cheese

Pizza cheese...makes great tasting pizzas!

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Amul Brand Gouda Cheese

For Cooking Amul

/

Sagar

Pure

Ghee

Cooking Butter

Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Amul

Malai

Paneer

Utterly Delicious Pizza

Ready to cook paneer to make your favourite recipes!  Mithai

Mate

Masti Dahi

Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste. Desserts Amul

Ice

Creams

Amul

Shrikhand

Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.

A delicious treat, anytime.

Amul

Amul

Mithaee

Gulab

Pure Khoya Jamums...best piping hot.

Jamuns

Gulab served

Chocolates

The perfect gift someone you love.

for

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Amul Brand

Amul Lassee

Amul Basundi

Health Drink Nutramul

Amul Shakti Health Food Drink

Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

Available in KesarAlmond and Chocolate flavours.

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Amul Brand

8 Key information related to Amul’s Products : Butter Launched in 1955, butter was one of the first milk products offered by Amul. It was also the first time Amul successfully challenged the hegemony of an established brand. Amul's earliest competitor, Polson had been the monopoly milk supplier to the Bombay Milk Scheme. Amul displaced Polson to emerge as the undisputed leader in the butter market... Cheese GCMMF launched processed cheese in 1959 followed by cheese powder in the early 1970s. In the 1980s the popularity of cheese increased Ghee,Skimmed milk powder and Baby food Amul launched ghee (clarified butter) and skimmed milk powder in 1955. Amul Ghee was an instant success... Milk and UHT Milk Amul was the market leader in the Gujarat whole milk market with a 90% market share in 2002. Apart from supplying milk to parts of Maharashtra and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy in Delhi... As we can see from the products shown above there is :  There is product consistency in the product line of Amul as all its products are milk based.  Amul deals only in consumer goods and not in industrial goods or any other sector.  In 2001, GCMMF entered the fast food market in India with the launch of vegetable pizzas under the brand name SnowCap in Ahmedabad, Gujarat. GCMMF was also planning to launch its pizzas in other western Indian cities like Mumbai, Surat, and Baroda. Depending on the response in these cities, GCMMF would decide to introduce its pizzas in other cities in India.Amul also decided to bring into market low cost pizzas, The pizzas were offered in four flavours: plain tomato-onion-capsicum, fruit pizza (pineapple-topped), mushroom and ‘Jain pizzas'(pizzas without onion or garlic). It entered the Pizza business, where the base and the recipes were 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 rupee.supplying jain pizzas shows that it was catering to needs of the masses as in India most of the people are vegetarian. 33

Amul Brand  SOUPS Amul introduced ready-to-use (just pour and heat) soups branded ‘Masti’ in tetra packs of one liter. To begin with they were introduced in two flavors - Hot ‘n’ Sour and Tomato. Said Sodhi, “It was a test marketing drive in Gujarat and in a month or two it would be introduced all over India.” And there wasn’t much competition for there were not many companies in India that sold ready-to-use soups. Sodhi added, “Soup is a milk product and that’s a secret. You will come to know only when you consume it.” Keeping the ingredients a closely guarded secret, the company stated that one of the reasons to launch soups was to utilize the already installed equipment for tetra packaging  Amul also brought its range of ice creams into the market . the lucrativeness of this sector was very good and Amul beniffited a lot by entering into ice cream sector.  Amul is planning to enter into the sector of bottled water.

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Amul Brand

Amul Scooping Parlours Gujarat Co-operative Milk Marketing Federation (GCMMF), custodian of the Amul brand is India's largest food products marketing organisation. With its wide product portfolio GCMMF today has a turnover in excess of Rs. 6700 Cr. With a singular focus on marketing and distribution, GCMMF today reaches consumers in all parts of the country. A state level apex body of milk co-operatives in Gujarat, it has been an endeavour of GCMMF to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. India a booming ice cream market up for grabs

Today ice creams are equally popular among children and grownups. Eating ice creams have become an occasion for celebration. In India alone, the organised ice cream industry has a turnover of around Rs. 1000 Cr. and the market is witnessing a booming growth rate of 12-15% annually. Per capita consumption of ice creams in India is around 250 ml compared to 23 litres in the US, 18 litres in Australia, 14 litres in Sweden and 800 ml even in neighbouring Pakistan. This presents a huge opportunity for organised players in the ice cream industry.

Amul - The leader in Ice Creams Since its launch in 1996, Amul Ice Creams have consistently combated competition like Kwality Walls, Mother Dairy and other brands. The customers have shown huge faith in the quality of Amul Ice Creams and today it’s the No. 1 ice cream brand of the country. Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul has been able to write such a success story because of the quality of its products, economic pricing and the belief consumers have in the brand.

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Amul Brand

Amul Ice Creams - Melting point for taste buds

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. Apart from the delicious individual novelties Amul also has ice creams for the health conscious. In January 2007, Amul introduced Sugar Free & ProLife Probiotic Wellness Ice Cream which was a first in India. Amul Scooping Parlours

Seize the opportunity to partner with India’s leading Ice Cream Brand Today people like to spend quality time with their family outside the home. With increasing income they love to spoil themselves with a variety of choices. Keeping up with the latest trend Amul has started Ice Cream Scooping Parlours across the country. One can enjoy world class ice creams, Sundaes, shakes and other ice cream concoctions in a cozy and nice ambience at these parlors. It’s fun time for the entire family. Currently Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore. Apart from these, there are more Amul Scooping Parlours coming up in different parts of the country. These Parlours have been well received by customers and are doing upbeat business.

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Amul Brand

ADVERTISEMENT STRATEGY FOLLOWED BY AMULTHE TASTE OF INDIA Before Amul entered the picture, companies used conventional methods of advertising where the focus was only on the food products and the tone of the pitch was serious. Amul changed the way food products were communicated to the people in India. It always advertised its mother brand – Amul, and not its products like butter, pizzas, or cheese. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. 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. Amul has been consistant over the communication campaign and brand strategy. AMUL has positioned itself as " Taste of India " and have ensured that their communication is in line with their positioning strategy By insisting on an umbrella brand, GCMMF not only skillfully avoided interunion conflicts but also created an opportunity for the union members to cooperate in developing products  UMBRELLA BRANDING Amul’s advertising strategy has followed the concept of ‘Umbrella Branding.’ Amul is the common brand name for most of its products across categories. For instance, the Amul girl has also been used to advertise Amul ghee and milk. Its ad campaign ‘Amul doodh peeta hai India,’ conceptualised & created by FCB-Ulka, was drafted to proclaim its leadership position and was targeted at people across all income categories. The corporate campaign – The Taste of India caters to people belonging to all walks of life & across cultures. It is circled around a one day old child who needs milk as much as to a dead man who needs ghee. Umbrella branding can be a successful marketing strategy. However, this depends on having a consistent and clear brand identity across the variants. It also needs to be recognized that, while this approach can help “kick start” variant launches, halo effects are not guaranteed.

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Amul Brand

Amul introduces dairy products for the calorie conscious For the calorie conscious and the weight conscious users of dairy products there is some good news from the topmost brand in Indian dairy products —‘Amul.’ Its recent introductions include ‘Amul Lite’ –a low-calorie bread spread and ‘Amul Lite and Trim Milk’—a long life skimmed milk with zero fat content. ‘Amul Lite’—low-fat, low-calorie and low-cholesterol bread spread—is a healthier substitute for other bread spreads such as butter and margarine which have at least 26% more fat and calorie content. The total fat content in ‘Amul Lite’ is 59% as compared to 80% in butter and margarine. And, the calorie content in 100 grams of ‘Amul Lite’ is 531 as compared to 720 calories in butter and margarine of equal quantity. Being a low-fat, low-cholesterol bread spread, ‘Amul Lite’ is particularly suited to those for whom consumption of high cholesterol and high saturated fat products are restricted. Its low-fat and low-cholesterol content reduces chances of heart ailments as it is low on saturated fat and high on PUFA, Omega-3 and Omega-6 fat contents which help to maintain healthy cholesterol levels. It is further fortified with Vitamin A and Vitamin D which help to improve vision and healthy skin. For a start, ‘Amul Lite’ has been introduced in 200gms plastic containers which cost Rs.32.00 each. The shelf life of “Amul Lite’ is six months under refrigerated conditions. ‘Amul Lite’ is produced in ISO-9000 certified fullyautomated plant under strict hygienic conditions and it carries the AGMARK quality certification. ‘Amul Lite Slim and Trim Milk’ is a fresh, long life skimmed milk processed with Ultra High Temperature (UHT) technology which does not involve use of any preservatives. The UHT technology preserves maximum flavour, taste and nutritional value of milk simultaneously ensuring zero microbial activation. Protected from air and light through aseptic packaging system, ‘Amul Lite Slim and Trim Milk’ offers a shelf life of 6 months without refrigeration. ‘Amul Lite Slim and Trim Milk’ is rich in proteins, vitamins and minerals of natural milk with zero fat and cholesterol content. It is available in 1 liter, 500ml and 200ml tetra packs. ‘Amul’ is the brand name of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) which revolutionized the production and distribution of diary products in India and became a model for development of dairy cooperatives in India.

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Amul Brand The brand name has become so popular that today the cooperative is recognized by its brand name. According to data provided by the cooperative, the ‘Amul’ milk processing plants have a handling capacity of 10.16 million liters per day and the turnover of the cooperative for the year 2006-2007 was 42,778 million rupees or 1,050 million US dollars. ‘Amul’ has an amazing range of dairy products which include butter, bread spread, a variety of cheese, sweets, fresh milk, fresh cream, ghee (clarified butter), infant milk and milk food, milk powder, condensed milk, diary whiteners, curd products, ice creams, chocolates, malted milk food (brown beverage), flavoured milk, cold coffee and health beverage. ‘Amul’ is the largest exporter of Indian dairy products with a ‘Trading House’ status. It exports ghee, butter, curd products, sweets, brown beverage, infant milk food, cheese, malai paneer and long life milk and fresh cream to the United States of America, gulf countries and Singapore. Recently, ‘Amul’ embarked on a direct retailing venture by creating ‘Amul Utterly Delicious’ parlours in Ahmedabad, Bangalore, Baroda, Delhi, Mumbai and Surat.

39

Amul Brand

ADVERTISING Consumer Advertising: This is also called end product advertising .such advertisements are primarily directed at consumers. These are the advertisements which are most prominent as very substantial portion of the total advertising budget is directed to potential buyers of consumer products through mass media. The fact that the number of buyers of consumer items are generally very large and are widely distributed over a large geographically area further , enhances the importance of consumer advertising as a marketing tool. Amul had resorted to consumer advertising as it ‘s target was the middle class of indian sector.but the point to be noted is that they relied more upon emphasizing their brand rather than single product. Institutional advertising: institution advertising s also called corporate advertising . it’s a public-relation-approach advertising. Amul had wanted to build a goodwill for its brand and also it is always expressing a viewpoint on a controversial issue through the use of billboard which we are going to discuss under media platform used. Indirect Action Advertising : Indirect action advertising as against direct action advertising does not attempt to bring about an immediate behavioral response . The purpose of Amul was not to bring about an immediate behavioral response but the aim of advertisements was to create a image in the minds of consumer regarding Amul. Amul wanted to build long term relation with its customers that is why it never adopted practice of aggresively selling the product. Pricing strategy adopted: Thus, AMUL adopted a low price strategy to make their products affordable and guarantee value to the consumer. The success of this strategy is well recognized and remains the main plank of AMUL's strategy even today. The choice of product mix and the sequence in which AMUL introduced its products is consistent with this philosophy. Beginning with liquid milk, the product mix was enhanced slowly by progressive addition of higher value products while maintaining desired growth in existing products. Even today, while competing in the market for high value dairy products, GCMMF ensures that adequate supplies of low value products are maintained. Amul was/is targeting middleclass people so it has always been inclined to keep its price low and at same time it assures of reasonable quality. Huge ad campaigns are not always necessary, what you need is a genuinely interesting way to interact with your customers, tell them your story and engage them in a conversation, even if you are selling something that is soo commoditized like butter. Thus Amul believed that huge expenditure on advertising was not always necessary , if an Advertisement has creativity and ingenuity it will achieve its purpose for which it has been designed.

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Amul Brand The Amul girl, apart from promoting a $1-billion brand, has been bringing smiles to millions. And this smile has spelt a huge success and changed the livelihood of over 2.5 million Gujarat farmers. The sales figures of Amul butter have jumped from a few lakh rupees in 1966 to over Rs 500 crore now. Apart from rapid growth and trustworthiness, the four-year-old girl has also ensured a virtual monopoly for Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) that sells Amul brand of dairy products.

 This tells a lot about why big marketing budgets, huge ad campaigns are not always necessary, what you need is a genuinely interesting way to interact with your customers, tell them your story and engage them in a conversation, even if you are selling something that is soo commoditized like butter.

Media Platform Used by Amul Media Planning : It is important phase of advertising campaign after creative strategy that is preparation of the right message. Until and unless , the message is communicated through the right medium to target customers the target is of no use . Amul was also facing the challenge of which advertising media to adopt which should integrate with its objectives which were : AMUL’s business strategy is driven by its twin objectives of: (i) long-term, sustainable growth to its member farmers, and (ii) value proposition to a large customer base by providing milk and other dairy products a low price Amul has made the use of following media platforms till know : 1. 2. 3. 4. 5.

Outdoor media : hoardings/billboards Broadcast Media : television Non-broadcast Media : cinema Print media : newspapers ,general interest magazines Internet : independent websites ,portals

41

Amul Brand

The cooperative has been making extensive use of hoardings for promoting its flagship brand ‘Amul Butter’ since 1966, and is all set to enter the Guinness Book of World Records for the longest run promotion campaign. The advertisements are in the outdoors category and are communicated through hoardings at busy junctions in all major cities across India.Amul had used outdoor advertising to a good effect with the middle class people as their targets they were able to create an image for their brand in the minds of consumer . The ads have a central character – a cherubic, wide-eyed, dressed in a polka-dot frock, and blue-haired girl/baby who is perhaps around 4-6 years old. A new ad is apparently created every week and these ads revolve around the latest happening thing (good/bad/ugly) in the country (or local states) and can be anything associated with politics/sports/movies/people/laws/general events etc. The ads are very creative, witty, humorous, whacky and sometimes controversial but invariably elicit a laugh, chuckle or at least a smile from almost everyone who understands the context. The ads relate butter to the topic of the ad in a very amazing & intriguing manner…primarily by playing with words. The words can be in plain English or Hinglish. Mascot advertising ( will be dealt with just after this section)

Online Marketing Efforts Undertaken a. Buying Amul Products Online : As a first step towards Ecommerce in India, Amul is delighted to offer you the cyber shopping experience with a wide range of Amul dairy products in all major cities of India. You can order your favourite Amul Ice-cream at the new Amul Icecream Cyberstore.The "Taste of India" is now a few clicks away from your doorstep.

The key benefits of BUYING ON-LINE are:  Products shipped in a Reusable Attractive Styrofoam Ice US $10.00 Retail Value.  Receive Free Reusable Ice Pack for keeping food and drinks cold, US $5.00 Retail Value.  Amul Products delivered at your doorstep overnight, saves time, mileage and parking hassles.  Receive Amul promotional items with your package like Amul Recipe Book, Butter Girl refrigerator magnet, etc. 42

Amul Brand  Receive the satisfaction of Eating pure, full-flavored, quality sealed product manufactured fresh in India's most advanced dairy manufacturing facility.  Get a free family pass for visiting Amul's Dairy Plant in Anand Gujarat.  Special Offers for Party Orders of 1 or more cartons of any single Amul Product. Ask for special quote.  Makes you directly eligible to enroll for The Fly Me Home Contest Sponsored By Amul and many more Internet Promotions in the Pipeline.  No Sales Tax for Internet Sales except for Illinois residents at the Present time.  Most important, all transactions are powered by AT&T Secure By which ensure complete security.

43

Amul Brand

Amul to set up its virtual production facility in Second Life Amul, which established its presence in Second Life in March by setting up its virtual parlour, is now working to expand its presence in the virtual world. Trimensions, a Gurgaon based company, is helping Amul to develop its existence on Second Life. Rahul Dutta, chairman and managing director, Trimensions, says, “Amul is planning to buy eight-10 islands, equal to 160 acres of virtual land, in Second Life to set up a simulation of its production and distribution facility. The objective behind launching a virtual setup is to demonstrate its functioning to the consumers, and experiment with any change in the production or distribution system virtually before executing it in the real world.” Setting up ice cream parlours on Second Life was actually a pilot project. It will take around six months to launch the virtual Amul setup on Second Life. The Amul ice cream parlours showcase topical ads of Amul starting from the late 1990s, Amul TV commercials and product displays. Second Life is an Internet enabled virtual world in which users can create their virtual identities. These identities can move around, interact and socialise with other users. Members of Second Life can participate in individual or group activities and create and trade items like virtual property and services with each other. A member has to pay for the space he purchases on Second Life. Second Life is developed by Linden Lab, a company based in the US.

c. Amul.tv.com- It showcases short films and Tvc’s related to amul.at this site recipes of favourite Indian dishes are also given.

3.Broadcast media: Television

TV reaches every demographic category and achieves a certain impact with the use of colour , audio and motion. Amul has aired a lot of advertisements for its various product categories .some of the advertisements which we had collected are here . 44

Amul Brand

45

Amul Brand

COMMUNICATION MIX USED ACROSS We have already disussed the role of advertising in case of Amul , now we would like to throw light upon :

 Sales promotion  Direct marketing

Amul has not really been into personal selling because it’s aim has been to position its brand and not to approach individual customers. Moreover in case of consumer marketing that is when a product is for the masses then personal selling is not a feasible mode ofcommunicating your product concept to the target audience.

Sales Promotion : The most common objectives of sales promotion are :

To gain additional market share or additional revenue . To expand the target market To inform the customer about the new uses of existing product. To develop favourable customer experience with the product. To gain advantageous shelf-space to supplement advertising and personal selling efforts.

Thus there can be numerous objectives of sales promotion . In case of Amul following sales promotion techniques have been used

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Amul Brand If a customer makes a online request for products he will receive the following promotional offers :

They also cameup with short movie “THE AMUL STORY” of 20 mins to promote and show the life of the employees working in amul and their networks.

Products shipped in a Reusable Attractive Styrofoam Ice US $10.00 Retail Value. Receive Free Reusable Ice Pack for keeping food and drinks cold, US $5.00 Retail Value. Receive Amul promotional items with your package like Amul Recipe Book, Butter Girl refrigerator magnet, etc. Get a free family pass for visiting Amul's Dairy Plant in Anand Gujarat. Special Offers for Party Orders of 1 or more cartons of any single Amul Product. Ask for special quote. Makes you directly eligible to enroll for The Fly Me Home Contest Sponsored By Amul and many more Internet Promotions in the Pipeline. No Sales Tax for Internet Sales except for Illinois residents at the Present time. These measures are concentrating on goods other than ice cream. The sales promotion specifically adopted in case of ice creams sector: 1. On every 1 litre purchase of any Amul ice cream get 25% free. 2. 1+1 free Family/ Party pack. 3. This diwali they brought schemes of getting cache free with 1litre ice cream which attracted many housewives.

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Amul Brand

MARKETING :

DIRECT MARKETING 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. They have created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers: "Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, they have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO). These Amul parlours are unique in the sense that they offer all Amul products under one roof. This direct marketing mesure will surely go a long way in establishing Amul further . even a brand like Cadburys isnot having any such outlet where all its products are sold under one roof .

Competitor HLL is also planning to extend Unilever’s retail brand ‘Kwality Walls Swirls’ parlors in accordance with the growing number of shopping malls in India. Amul parlours There are around 3,000 Amul parlours across the country as of now and the Federation intends to take this to number around 10,000 by next year.

Sponsorship of star voice of India Amul had sponsored the very popular TV show Amul Star Voice Of India With the clutter of music reality talent hunt shows on television, it becomes difficult to differentiate one from another. TALENT is the key which set AMUL STAR VOICE OF INDIA apart from the rest in its first season and brought singing talents like Ishmit Singh Sodhi, Harshit Saxena, Abhaas Joshi, 48

Amul Brand Irfan Khan, Toshi to the forefront. Amul Star Voice of India has served as the ultimate platform for budding singers from across the nation to realize their dreams, the show went on to become the most entertaining and involving show to hit Indian television. In keeping with its philosophy of offering engaging and distinct content, Star Plus now announces the launch of the second series AMUL STAR VOICE OF INDIA with an even bigger bang!

INTERNATIONAL MARKETING GCMMF has a wide range of products in the processed cheese segment. It has also been a pioneer in the specialty cheese market in the country. Its cheese business grew at 18% in 2005-2006. GCMMF exports cheese to the tune of 600 tons, making it the largest cheese exporter in the country. The export market includes the Middle East, Singapore, Hong Kong, and the United States of America; countries that have a large Indian population, and the neighbouring countries of Sri Lanka, Bhutan and Nepal.

AWARDS: AMUL VIDYA AWARDS 2010 Amul’s vision is to see an educated, talented and strong youth in a developed India of the future and thereby contribute towards nation building. We at Amul believe that the sound education of its youth is the foundation of every state. Hence it is the most basic constituent for a developing nation like ours. Towards this philosophy, Amul Vidyashree & Vidyabhushan Awards have been instituted to recognize the brilliance of the students across India as well as the quality of education & guidance imparted by the schools they study in. The inception of these awards dates back to 2004-05. Since last five years, GCMMF has recognized 35,000 merit rankers from 30 central and state education boards pan India. “Amul Vidyashree” & “Amul Vidyabhushan” Awards consists of the following: · A Memento · A Certificate of excellence · A Gift hamper of books · DVD: Amul India Story

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Amul Brand

Amul Brand Marketing Strategy. Brand Strategy Umbrella Brands.Amuls Strategy Of Using Umbrella Branding Has Really Paid Off Amuls Moralist For Single Umbrella Branding Dropped Their Single Umbrella Brand Strategy In read more about Brand Strategy Umbrella Brands New Marketing Strategies By Amul Milk And Tata Tea Making Waves .Indias Introduction To Convenience Packs Started Through Two Food Products Milk And Tea AMULs Best Practices Umbrella Brand Strategy The GCMMF Skillfully Avoids Interunion Conflicts Through This Strategy By Giving Every Union And Subbrand The Opportunity To read more about Amul Marketing Practice Amul The Taste Of India Utterly Delicious Too.What I Like Most About The Amul Brand Is That They Have Been Consistant Over The Communication Campaign And Brand Strategy AMUL Has Positioned Itself As Taste Of India.

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Amul Brand

COMPETITORS Amul vs. Nestle vs. Mother Dairy: Indian Grown Dairy Products Difference between Amul, Nestle and Mother Dairy India has the largest and fastest milk and milk products market in the world. If the growth of this sector is extrapolated, it is observed that in the next ten years production will increase to about three times today’s numbers. India produces milk with the lowest cost at around 40 cents per litre. Amul, Nestle, Britannia, Mother Dairy are some of the major companies that produce milk and milk products in India. However, factors such as lack of adequate amount of fodder and unavailability of veterinary doctors have reduced the yield of milk per animal. This article compares India’s three popular dairy organisations Amul, Nestle and Mother Dairy.

Organisation Nestle S.A. (Switzerland) runs its subsidiary in India with the name Nestle India. It has setup seven factories throughout the country. Apart from India, Nestle S.A. operates in eighty five other countries. Nestle originated in 1905 and is named after Henri Nestle. It grew rapidly during World War I. Amul is based in Gujarat. It’s basically Gujarat co-operative milk marketing federation (GCMMF). It has won various national awards which includes the Rajiv Gandhi National Quality Award and the Ramakrishna National Quality Award. Mother Dairy is owned by National Dairy Development Board of India (NDDB). It was established in 1974 and is an ISO certified organisation.

Products Nestle offers its products in four categories viz. Milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates and confectionary products. Milkmaid, Nescafe, Maggie, everyday, Polo, Kit-Kat are some of its very famous brands. It has a total of six thousand brands. Amul delivers milk, butter, ghee, ice creams, cheese and so on. Its turnover was 67.11 billion Indian Rupees in 2008-09. It has over 50 products on the Indian market. Mother Dairy, on the other hand, in addition to its milk products, offers the Dhaara - range of edible oils and Safal – range of fresh fruit juices. It has around two hundred thousand outlets across the India.

Production and Earnings In 2009, Nestle recorded a net profit of CHF 10.43 billion. A major poriton of this came from Europe and America, with 16% coming from Asia. Mother Dairy markets around 2.8 million litres of milk everyday with a market share of 66% percent in the branded sector. It has its main market in Delhi, Hyderabad, 51

Amul Brand Saurashtra and Mumbai. Amul has milk handling capacity of 11.2 million litres per day and recorded a sales turnover of $1,504 million (US) in 2008-09.

Amul Gujarat co-operative milk marketing federation (GCMMF) owns Amul. Rajiv Gandhi National Quality Award and Ramakrishna National Quality Award winner. Amul delivers milk, butter, ghee, ice creams, cheese etc. and has over 50 products. Amul has milk handling capacity of 11.2 million litres per day.

Nestle Nestle S.A. (Switzerland) runs its subsidiary in India with the name Nestle India. It has a total of six thousand brands. In 2009 Nestle recorded a net profit of CHF 10.43 billion, 16% of which was from Asia.

Mother Dairy Mother dairy is owned by National Dairy Development Board of India (NDDB). It was established in 1974 and is an ISO certified organisation. Also offers Dhaara - range of edible oils and Safal – range of fresh fruit juices. Mother dairy markets around 2.8 million litres of milk everyday.

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SWOT ANALYSIS Strengths: Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.

Weaknesses: Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why can’t we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumer’s home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche.

Opportunities: "Failure is never final, and success never ending”. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:

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Amul Brand Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition of cultured products like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

Threats: Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money!

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Amul Brand

Conclusion Thus this brings us to the end of MY project report. I hope that I have been able to bring forth the point for which we had undertaken the project. They had put much efforts on their creativity. Amul is one of the successful business houses and other companies should learn from Amul that how to do their business in a corporately socially responsible manner. Amul has proved a point , Amul uses only 1 percent of its turnover for promotions .This shows that it is not always necessary to spend millions on promotion when you have creativity. Amul brand management strategy is effective with the help of affective advertisement of the utterly butterly girl,its a longest advertisement and longest campaign since 1967, it was very affective as the success is also reflected in the sales as the sales of Amul butter has jumped from less than INR 1 million in 1967 to over INR 5 billion in 2007. Over the last forty years, the basic structure of the campaign has remained the same with the Amul girl holding out her favorite packet of butter. Amul sales doubles every year, the biggest headache is its distribution & supply chain. Amul Umbrella Branding and Direct Marketing gives a good platform to build and for the growth of the business of amul.

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Amul Brand

BIBLIOGRAPHY

www.amul.com www.amul.tv.com www.wikipedia.com www.icmr.com www.businessline.com www.rediffnews.com

www.Indiainfoline.com 56

Amul Brand

WWW.GOOGLE.COM.

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