AMUL BRAND AUDIT

INTRODUCTION

• Amul, formed in 1946, is a dairy cooperative, based in Anand, Gujarat.• Establishment of Amul was marked as an epoch in the White

Revolution• Largest food brand in India & world's Largest Pouched Milk Brand• Product Portfolio - Bread Spreads, Milk Drinks, Fresh Milk, Power

Milk, Cheese, Desserts• Market leader in ghee and butter with 85% market share• Symbol of high quality products sold at reasonable prices, of

availability, of service.• Brand name of 2 million farmers, members of 10,000 village dairy

cooperative societies throughout Gujarat.• Positioned itself as "Taste of India“, consistent communication

campaign & brand strategy for the past 60 yrs.• Recognizable mascot “Amul girl” & tagline “Utterly Butterly Delicious

Amul!”• Amul’s advertising and marketing spend has never exceeded 1% of its

revenues.• Buttressing Strengths: Distribution & value-for-money seem to be the

major strengths on which the brand’s popularity rests.

Level Of Competition Butter Ice- creams Milk Chocolates

Product formMother Dairy, Vita Dairy, Home- made butter

Kwality Walls, Mother Dairy, Cream Bell

Mother Dairy, Vita Dairy, Kwality Dairy

Nestle, Cadbury, Lotte

Product category

Nutralite, Le-Bon, Britannia, Nestle, Kissan

Baskin Robbin,Gyanis, Nirulas,Haagen-Dazs, Coco -Berry

Nestle, Britannia (condensed milk , flavoured milk& Powdered milk)

Hershey, Mars, Ferrero

GenericFrito Lay, HUL Frito Lay,

BritanniaNestlé, HUL

Bisleri, Coke, Pepsi, Kingfisher, Nescafe

Frito Lay, Britannia, NestléHUL

BudgetChocolates, Fast food, Ice-creams, Video Rentals

Beverages, Fast food, Chocolates, Video Rentals

Britannia, Video Rentals, Ice creams, Fast food

Beverages, Fast food, Video Rentals, Ice creams

Understanding Levels of Competition

CATEGORY ATTRACTIVNESS STUDY

Overview of Dairy Industry

CATEGORY ATTRACTIVNESS STUDY

FactorsAttractiven

ess Analysis

Category Size & Growth ++• Food Processing Industry is growing at 14% p.a.• Consumption of milk has registered a growth of 8.4%

Profitability +Increased category competitiveness may lead to lower pricing & profits

Product Life Cycle - 60 yr old brand, reached maturity

Sales Seasonality + Year-round sales, Diverse product portfolio

Bargaining power of Suppliers +

Suppliers are rural milk producers, don’t exercise much power

Bargaining power of Customers

- Undifferentiated products, substitutes exist

Threat of New Entrants -Profitable category, fairly easy to enter, increasing relevant to customers

Threat of Substitutes -Considerable, Giants Britannia, Nestle competing to gain larger market share

Intensity of Rivalry -Creation of PODs’ in terms of taste, flavor, variety & customer segmentation

Competitor Analysis - POP v/s POD

POP’s

• Very effective marketing program

• Great penetration of distribution channels

• Disciplined & rigorous product development process.

• Effective technology management.

• Continuous surveillance of the marketplace & understanding of customer needs.

• Creative & brilliant advertisements

• Enjoys excellent reputation with customers

• Provides “value for money”

POD’s

• Quintessentially Indian• A mass market player, no

premium offerings • It focuses on issues important

to the common man - ‘aam aadmi’.

• USP- is its taste. Amul butter is made from fresh cream.

• Quality with affordability• Very strong supply chain• Have always taken care of dairy

farmers• Offerings for health conscious

and vibrant India - Probiotic wellness ice-cream & sugar free delights for the diabetic patients.

Understanding the Customer (STP)

Young Nation – have to meet the ever-increasing nutritional needs of the new & old generations

• Segmentation is not so easy because of mixed audience & various culinary application of Amul products.Nevertheless, segmentation can be done as follows:a) Customer based:

• Kids – Amul Kool, Chocolates, Nutramul• Women – Amul Cacli+• Youth – Milk shakes, Café, Cheese, Desserts• Calorie conscious – Amul Lite, Trim milk, Amul Shakti

b) Industry based: • Milk – Ice cream manufacturers, Restaurants, Coffee

shops• Butter/Ghee/Cheese – Bakery, Snacks retailers, Pizza

joints

• Targeting – Concentrating equally on end-users as well as the third parties involved in supply chains. Amul has particularly identified “youth” as one of its potential segments. Working towards this aspect, it has come up with Amul parlours in cities.

Understanding the Customer (STP)

• Positioning A mass market player, no premium offerings USP – Quality with affordability Amul as “Taste of India” creates value for money for both

the dairy farmers and the customers New offerings for health conscious & vibrant India –

Probiotic ice creams, sugar free delights, Amul Kool Café etc.

Marketing Mix – 4Ps’

PRODUCT

• Pasteurizes milk & produces condensed forms; focused on dairy segment

• Total length of Amul’s product mix is 42; Width is 8

• Portfolio: Butter, Milk, Milk Powder,Ghee, Cheese & Spreads, Chocolates, Desserts & so on

• Been innovative & introduced products for specific customer segments (diabetic people)- India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights; Product for price sensitive India-Low Priced Amul Ice Creams & affordable ‘sugar’ whitener

PRICE

• Follows a low-cost price strategy – Quality with Affordability (core essence of Amul)

• Totally market oriented pricing strategy to appeal to common masses.

• GCMMF sets up pricing model & considers cost aspects: Cost of milk, Labour cost, Processing cost, Packaging cost, Advertising cost, Transportation cost, Sales promotion costs, Taxes etc.

• For eg. Products like- Amul butter: 100gm-Rs 25; 500gm- Rs.122, Amul lite: 200gm-Rs.32

Marketing Mix – 4Ps’

PLACE

PROMOTION

• Covers 2.41 million producer members with milk collection average of 5.08 million litres/day.

• SCM: Farmers Village Cooperative Societies (VCS) Manufacturing units Company Depots Wholesale Distributors Retailers.

• Market Logistics:– 10000 village cooperative societies – 3600 wholesale distributors, 45 depots in India – Over 5,00,000 retailers spread all over India

• Besides India, Amul has entered overseas markets such as Mauritius,UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong etc.

• Amul Moppet, little girl whose charm has endured fickle public opinion; created a home in hearts & minds of millions of Indians.

• Since 1967, this little girl appears at billboards, strategically placed all over India.

• Often said to be playing the role of a “social observer with evocative humor”; topic of conversation amongst millions.

• AMUL promotes its products through newspaper, T.V.; hoarding etc. GCMMF however uses hoarding for advertising in local areas.

• Amul's magic - Those catchy lines don't pander to your nationality or certain sentiments. It is pure & simple, everyday fun

Overall Brand Strategy

Umbrella Branding Strategy

• Stuck to the core benefits of brand; Commonality of benefit is a must – Amul stands for richness of milk (focused on Dairy segment)

• It could easily leverage the positive product characteristics of powerful existing brand into new product categories.

• For e.g. the Utterly Butterly Amul values associated with Amul Butter for over half a century gave Amul Cheese instant place on the shelves.

• Amul ice-cream – Real milk, Real ice-cream – rapidly climbed to number two position in just a short span of three years.

• Amul’s ad campaigns - in the form of billboards or the Taste of India campaign - have always managed to evoke a larger-than-life brand feel, consistency & spirit of Indian culture in a contemporary way.

(Brand Hierarchy table on next slide)

Overall Brand Strategy

Ice cream (1996)

Softy Mix (2001)

Fat Free Dessert (2002)

Chocolates (1973)

Nutramul Eclairs

Shrikhand (1980)

Fresh Milk

(1956)

Condensed Milk (1996)

Butter Milk

(1998)

Milk Power (1958)

Amul Spray (1968)

Amulya (1987)

Cheese (1962)

Paneer (1997)

Pizza Cheese (1998)

Breadspread

Amul Butter (1956)

Amul Lite (1994)

Ghee (1956)

(The hierarchy goes down stating all 42 brands, but we haven’t included here, as it was turning illegible.)

Sources of Brand Equity (CBBE Pyramid)

SalienceBrand recall, strong distributor network, awareness, range of

products, packaging.

Imagery

Traditional, Pure, Natural, Fresh

Performance

Convenient, widely available, reliable,

satisfaction, value for money

Feelings

Trustworthy, Fun,

Exciting

Judgments Quality, product for every class,

credibility, innovative

ResonanceLoyalty, Connect with customer,

Attachment

Leveraging Secondary Associations

a) Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)• Amul is the brand name of 2 million farmers, members of 10,000 village

dairy cooperative societies throughout Gujarat.• GCMMF ensures that product mix & new product introduction is

consistent with the core philosophy of providing milk at a basic, affordable price.

b) Distribution Channels – Soul of Amul Saga• Collects 447,000 litres of milk from 2.12 million farmers everyday• Delivers goods worth Rs 6 crore to over 5,00,000 retail outlets across

country• Aim is to transform lives in rural India & contribute to development of

society.

c) Mascot – "Amul baby" (a chubby butter girl dressed in polka dotted dress)

• A ‘pun’ loving star – with her bold tongue-in-cheek topicals made way directly into the hearts of millions.

• Found her way directly into the Guinness Book of World Records for the longest running campaign ever.

• Playing the role of a social observer, its weekly comments have tickled India’s funny bone since 1967

Leveraging Secondary Associations

• Amul’s consistently been into sponsorships - associated itself with high TRP show’s like:– Surabhi (1990’s, Doordarshan)– Star Voice of India (2007, Star TV)

• Conducts various contests:– Chef of the year– Amul Maharani of the year– Amul Food Festival Contest– Slogan likho, Disneyland dekho contest– Amulya Fly to Bangkok contest

Possible Brand/Category Extension

2007: GCMMF introduced Amul range of sugar free & pro-biotic ice-creams. A first of its kind product, the ice creams – Amul Prolife & Amul Sugar Free – are targeted towards the health-conscious & diabetic segment.

Such extension adds back value to the parent brand. Projects that Amul isn’t just a traditional brand, it looks into the changing needs of different demographics.

What more can Amul do? Can introduce Proteins Shakes – going ahead with

their strategy to meet needs of emerging market segments

Can introduce Bread – will complement rest of the products in the portfolio. Will try to increase the usage occasions of Amul products.

THANK YOU !

Efforts by:

• Dhruv Mittal (815)• Mansi Verma (829)• Pooja Chauhan (838)• Prerna Mehta (839)• Ridhima Gandhi (845)• Sneha Das Sharma

(858)• Swati Dureja (861)