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PRESENTATION ON MARKETING MIX OF AMUL BUTTER (Product of Gujarat Cooperative Milk Marketing Federation) Presenting by: Abdullah Shahid Md. Khalid Khan Md. Tauqir Khan Abhi jeet Saha

Amul Butter

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Page 1: Amul Butter

PRESENTATION ON MARKETING MIX OF AMUL

BUTTER(Product of Gujarat Cooperative Milk

Marketing Federation)

Presenting by: Abdullah ShahidMd. Khalid KhanMd. Tauqir KhanAbhi jeet Saha

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IntroductionAmul

•Gujarat Cooperative Milk Marketing Federation

•Chairman: Dr. Verghese Kurien

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. 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.CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.

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HistoryAmul was formally registered on December 14, 1946. 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).

The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. 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 one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand.

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The major marketing management decisions can be classified in one of the following four categories:•PRODUCT•PRICE•PLACE•PROMOTIONThese variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

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PRODUCT

AMUL BUTTER is made from Butter, Common Salt, permitted natural colour- Annatto Composition:•Milk Fat 80%•Moisture 16%•Salt 2.5%•Curd 0.8%Calorific Value:720 kcal./100gSpecial Features:Made from fresh cream by modern continuous butter making machines. Marketed in India since 5 decades.Product Specification:Meets AGMARK standard

Amul Pasteurized Butter

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•Unlike Butter & Margarine, Amul Lite is a low-fat, low-calorie & low-cholesterol bread spread, hence a healthier substitute. It contains 26% less fat and calorie content as compared to butter or margarine. PRODUCT COMPOSITIONTotal Fat- 59%Milk Fat – 10%Vegetable Fat- 49%Cholesterol- 26mgTotal Calories- 531Special Features•Since Amul lite is low in calories, you can maintain your slim-trim shape without sacrificing on the taste.•Amul lite is a low-fat and low-cholesterol product and less cholesterol means less chance of heart diseases. •Amul Lite is low in saturated fats & high in PUFA for a "healthy heart".•Amul Lite contains "Omega-6 & Omega-3 fats" which maintain healthy cholesterol levels.•Amul Lite is fortified with Vitamins A & D, essential for good vision & healthy skin•It is manufactured in a fully automated, ISO9000 certified plant under strict hygienic conditions.Product Specification•The product is certified by AGMARK for quality

Amul Lite

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What Is Table Margarine?•Table Margarine is characterized by a physical consistency similar to butter and is commonly known as butter-substitute.•Margarine is prepared exclusively from vegetable oils and fats.

Product Attributes•Prepared from Refined Vegetable Oil. Total fat content is 80% min.•Contains Zero Cholesterol, hence suitable for cardiac patients.•Fortified with Vitamins A & D•Manufactured in an ISO 9000 certified plant under strict hygienic conditions. The product is completely untouched by human handShelf life 6 months under refrigeration

Delicious Table Margarine

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PRICEAmul Pricing Strategies

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

•Despite competition in the high value dairy product segments from firms such as Britannia, Nestle, GCMF ensures that the product that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing better at a basic affordable price to appeal the common masses.

•This helped Amul butter to create its brand image in the house hold sector of the society.

•It can say it is totally market oriented pricing strategy.

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100 gm pack 500 gm pack

Amul butter 25 Rs 122 Rs

Delicious Table Margarine

13 Rs 60 Rs

Amul lite 32 Rs 200 gm pack

25 Rs

122 Rs

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Amul, the market leader in the Table Butter category, is all set to further strengthen its market position with the launch of new innovative and consumer friendly packs of Butter. So far, Amul Butter was mainly available in 100gm and 500 gm packs. However, market research showed that there was a demand for smaller packs. 

Keeping this objective in mind, Amul has now launched a new smaller pack – Munna Pack - suitable for a single occasion use by a small family. Available in 25gms, Munna pack is manufactured at the state of the art ISO 14001 certified dairy plant at Mehsana. With this launch, the long felt need of smaller packs by consumers has been addressed to.

Amul has also launched Butter in easy to open Airline packs. Carrying just the right quantity of butter needed for a single serving, these packs are now being increasingly used by the Airlines. Packed in the most modern Amul Dairy plant, these packs have become increasingly popular with mothers of school going children as tiffin packs.

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PLACE: A Global Distributor

GCMMF is India’s largest exporter of dairy products . It has been accorded a “trading House Status”. GCMMF has received the APEDA award from Govt of India for excellence in dairy product exports for the last 11 yr.

Besides India , Amul has entered overseas markets such as UAE, USA, Mauritius, Bangladesh, Australia, China, Hongkong, Singapore and other Arab countries.

Amul butter covers 85% market of butter in India.

There is 800 crore Rs market of organized butter market and Amul covers 678 crore Rs. (APEDA: Agriculture and processed food products,expport development authority)

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Distribution NetworkUpstream Channel:Upstream Channel in which milk is procured from the farmers to the manufacturing units.In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in small quantities.

The second step involves the transportation of milk from the co-operatives to the manufacturing units this is done in special trucks which are equipped with tankers to carry milk

Downstream Channel:Downstream Channel, it is the distribution part of the supply chain. From the manufacturing units to the retailers.

•First leg of transport is from the manufacturing unit to the company depots. This is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the company there fore is some time the quantity ordered is lesser then club loading is done which means that the product ordered is supplied with some other products.

Dairy wet the temperature of these trucks is kept between 0-4˚C

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•Second leg is from the depot to the WD’s, this transport is carried out in insulated 3 and 5 MT TATA 407’s here a permanent dispatch plan (PDP) is prepared where the distributor plans out the quantity of products to be ordered on a particular date

•Third leg this is the flow of good from WD’s to retailers, a beat plan is prepared and transportation is done on auto-rickshaws, rickshaws and bicycles.

•Finally it goes to the layman people from retailers carried in pollythin and packets.

contd…..

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PromotionInitial promotional strategy:The butter which had been launched in 1945 had a boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine , corporate ads . They did not help in creating a brand image of AMUL Butter.

A Brand – AMUL – A Taste of India However in 1966 , a man named Sylvester Da Cunha , from the agency of ASP (managing director of advertising agency) clinched the account for Amul butter. According to Sylvester Da Cunha “ Eustence Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born

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The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 21st century. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

New srategey of promotion:From 1969 Amul began playing the role of a social observer. Over the years the compaign acquired that all amul touch.

Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humor is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

At the Naxalite movement in Kolkata Amul’s hording was saying “Bread without Amul butter , cholbe na cholbe na”.

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BrandingThe 1st product with the Amul Brand name were launched in 1955. Since then, they have in use in millions of homes in all parts of India.

Amul is the name of 2.5 million framers , members of 10,000 village doing cooperative societies through out Gujarat.

It is a appropriate model for rural development , Amul has made India one of the largest milk producers in the world.

Amul, therefore, is a brand with a difference.

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Advertisement with funny slogans and hordings

In 1968

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