FINAL PROJECT REPORT

AProject Report

On“STUDY OF MARKETING MIX OF

AMUL”

For

Partial fulfillment of Bachelor ofBusiness Administration Course

(Academic Year: 2008-2009)

Submitted byMiss Aakanksha D. Bharati

T.Y.B.B.A. (Sem.: VI) Seat No.-

Submitted toUniversity of Pune

Under the Guidance ofMrs. V. V. Pawar

KTHM College, Nashik

Acknowledgement

I have great pleasure in successful completion of the project report

titled,” Marketing mix of Amul”.

My sincere thanks to Amul, the major distributor in Nashik for having

given me the opportunity, guidance & providing valuable information.

Working on this project has been a great experience for me.

I wish to express my thanks & gratitude to Mr.Hiralal Patel for all the

motivation & guidance provided by him during the period of my project.

I will also like to acknowledge all help & guidance exerted by

Dr.V.B.Gaikwad, Principal, KTHM college, Prof. R.D.Darekar co-ordinator

(BBA course), and Mrs.V.V.Pawar, Subject teacher & guide.

I would also like to thank whole-heartedly to all my teachers for

always being very co-operative & helpful.

Last but not the least I express my boundless gratitude to my family

members & all my friends for always standing by me.

Thank you,

Place: Nashik Miss Aakanksha D.Bharati

Date: TYBBA

Declaration

I the undersign, Miss Aakanksha D.Bharati the student of K.T.H.M

College, Nashik declare that this project entitled,” Marketing mix of Amul”

was carried out by me in the partial fulfillment of Bachelor in business

Administration course under the university of Pune.

This project was undertaken as part of academic curriculum according

to University rules, norms & by no commercial interests & motives.

Place: Nashik Miss Aakanksha D. Bharati

Date: TYBBA

TABLE OF CONTENT

CH.1 INTRODUCTION

1.1 Introduction on the topic1.2 Objectives of the study1.3 Scope of the study1.4 Limitation of the study1.5 Research Methodology

CH.2 PROFILE OF THE ORGANIZATION

2.1 History of the organization2.2 Structure of the organization2.3 Products of the organization

CH.3 INTRODUCTION TO THE CONCEPT [MARKETING MIX OF AMUL]

3.1 I] Product mix of Amul II] Price mix of Amul III] Place mix of Amul IV] Promotion mix of Amul3.2 Advertising3.3 Amul Hits3.4 Amul Competitors

1] Britannia2] Nestle3] Cadbury

CH.4 CONCLUSION

CH.5 RECCOMENDATIONS/ SUGGESTIONS

Chapter 1. Introduction

1.1 Meaning of marketing mix:

The basic task of marketing involves the identification of the needs of the customer and then manufacturing and marketing of a product or service that satisfies this need.

The term ‘Marketing Mix’ was first coined by American expert Mr. James Culliton.

The term ‘Marketing Mix’ has been defined by Prof. Philip Kotler in the following way:-

“Marketing mix is a set of controllable variables and their levels that the firm uses to influence the target market.

According to Prof. Kelly and Prof. Lazier “Marketing mix” is composed of a large battery of device which might be employed to induce consumers to buy a particular Product”.

Elements of Marketing mix:-

The Marketing mix of an organization is made up of four elements namely:

1. The product mix.2. The Price mix.3. The Place Mix or Physical distribution mix.4. The promotion mix.

These four elements are co-equal, interdependent & essential of marketing mix as the integrated marketing strategy.

Elements of marketing mix

4 P’s of marketing mix:

Product Mix Price mix 1. Product planning. 1. Pricing Strategy. 2. Product development. 2. Pricing policy.3. Branding. 3. Basic price.4. Packaging. 4. Allowance.5. Labeling. 5. Discount.6. Service. 6. Credit.

Place mix Promotion mix

1. Channel of distribution. 1. Advertising.

2. Transportation. 2. Personal selling.

3. Warehousing. 3. Sales promotion.

4. Wholesaler. 4. Publicity.

MARKETING STRATEGY

5. Retailer. 5. Consumer Aids.

Brief Introduction on Amul

Amul is a name widely recognized and respected, not just in cities and towns

but in villages as well. The reason behind this achievement is that Amul is

advertised well.

‘The taste of India’ is nothing short of brilliant. However, there is

much more to it.

Amul has become a successful brand; it enjoys brand equity, only

because they have honoured their contract with consumer’s for close to fifty

years. If they had failed to do so, then Amul would have been consigned to

the dustbin of history, along with thousands of other brands.

The four important elements that make Amul a brand name are

quality, value for money, availability & service.

1.2 Objectives of the study

1. To study the history & story behind the largest company producing

milk products i.e. Amul.

2. To study the marketing strategies of Amul.

3. To study the product mix of Amul.

4. To study pricing policy of Amul.

5. To study the organization structure of Amul.

6. To study the sales promotional activities of Amul.

7. To study the advertising style of Amul.

1.2 Scope of the study

Marketing is an important and interesting subject in today’s world.

Marketing mix is a vast field in marketing management.

Study of marketing mix of Amul is an ideal model for many other

companies.

1. The study gives information about the vast range of Amul products.

2. The study tells regarding the excellent concepts used in advertising.

3. It helps to know about large distribution network spread all over the

country and abroad.

4. Study about the marketing strategies of Amul, has given me a great

experience and knowledge which will surely be helpful in future.

1.3 Limitation of the study

1. The biggest limitation is that the company ’Amul’ is located far

away from Nashik, in Gujarat. It is very difficult to actually meet the

owners & officers personally to get the information.

2. Another limitation was lack of time. There was insufficient time

for the study of a vast company and making a report.

1.4 Research methodology

Facts, information or premises systematically collected and presented for the purpose of drawing interface may be called data.

For collecting the information for this project I have used in-depth interview method. I have taken a general interview of the major distributors/wholesalers of Amul in Nashik. Thus, the data obtained through this method is primary and true.

Methods & Source of data collection:

1. Primary Data collection: I have collected information through interview method.

Interview method: I have selected ‘Amul’ as my company for the project report. Mr. Hiralal Patel and his associates of Sonal General Stores, authourized dealer of Amul in Nashik was of great help and provided me with various important information. Few more retailers and a distributor were selected for the interview.

2. Secondary Data: Secondary data consists of information that is already in existence, having been collected for some other purpose.

Few Websites referred are:

a. www.amul.com b. Wikipedia

Few books referred are:

http://www.amul.com/

A. Marketing management : Philip Kotler. B. Marketing management : P.C.Pardesi.

Chapter 2. Company profile

2.1 History of the organization.

AMUL (Anand Milk Union Limited)

Amul means “priceless” in Sanskrit. The brand name “Amul”, from the Sanskrit “Amoolya”, was suggested by a quality control expert in Anand variants, all meaning “Priceless”, are found in several Indian languages.

Everyday Amul collects 447,000 liters of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs. 6 crores (Rs. 60 million) to over 500,000 retail outlets across the country.

Walk into any Amul or Gujarat cooperative milk marketing federation (GCMMF) office, and you may or may not see a photograph of Mahatma Gandhi, but you 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 matkas.

The picture is always prominently displayed. The message is clear: Never forget you primary customer. If you don’t success is certain. The proof? A unique Rs. 2,200 crore (Rs. 22 billion) enterprise.

Amul is a unique company. What started out as a co-operative movement away from the throes of a city and foreign at one time to the powers of marketing and sales has now turned into a company that uses the same model it always has, one with the co-operative theme of empowering rural workers to extract milk, the principle raw material that has made Amul what it is today. What’s changed and has been documented over the years has been Amul’s rise into a sales and marketing giant.

It was under the chairmanship of Tribhuvandas Patel, The kaira district Co-operative milk producers’ union limited was established on January 4th, 1946 as a response to exploitation of marginal milk producers in the city of Anand [In Kaira district of the western state of Gujarat in India]

by traders or agents of existing dairies. Producers had to travel long distances to deliver milk to only dairy, the Polson dairy in Anand- Often milk went sour, especially in summer season, as producers had to physically carry milk in individual containers.

The producers of Kaira district took the advice of the nationalist leaders, Sardar Vallabhai Patel [Who later on became the first Home minister of free India].

The foundation of first modern dairy of the Kaira union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). Starting with a single shared plant at Anand and two village co-operative societies for milk procurement, the dairy co-operation movement in the state of Gujarat had evolved into a network of 2.12 milk producers (Called farmers) who are organized in 10,441 milk collection independent co-operatives called village societies.

Gujarat co-operative Milk Marketing federation or GCMMF is the marketing entity for products of all unions in the state of Gujarat.

Mission:

“We at GCMMF Ltd. Endeavor to satisfy the taste & nutritional requirement of the consumers of the world through excellence in marketing by our committed team. Through co-operative networking we are committed to offer quality products that provide best value for money.”

Vision:

1. Consumer orientation.2. commitment to producers3. Co-operations.4. Excellence.5. Leadership.6. Quality.7. Innovations.8. Growth oriented new products.9. Pride in organization.

10.Employees’ satisfaction.

2.2 Structure of the organization

It all started in 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts.

It was a three-tired structure that comprised village societies, district level dairy unions and a state level federation. Each tier was economically independent of the other and comprises representatives elected from the tier below it.

Gujarat co-operative Milk Marketing federation (GCMMF) is India’s largest marketing organization. It is a state level apex body of milk co-operation in Gujarat which aims to provide remuneration returns to the farmers and also serve the interests of the consumers by providing quality products which are good value for money.

Members: 13 district co-operative milk producers’ union.

No. of producer members: 2.7 million.No. of village societies: 13,141Total milk handling capacity: 10.21 million liters

per day.Milk collection (total 2007-2008): 2.69 billion liters.Milk collection(Daily average 2007-2008): 7.4million liters. Milk drying capacity: 6.26 Mts per day.Conferred manufacturing capacity: 3090 Mts per day.

Based in the village of Anand, the Kaira district Milk co-operative union (better known as Amul) expanded exponentially. It joined hands with other milk co-operatives, and the Gujarat network now covers 2.12 million farmers, 10,441 village milk collection centers and fourteen district level plants (Unions) under the overall suspension of GCMMF.

Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society.

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 chain, with a number of third party players (Distributors, retailers & & logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF’s competitive position is driven by a low consumer prices supported by a low cost system.

Amul

Type: Co-operative

Founded: 1946Headquarters: Anand, Gujarat. Key people: Chairman, Gujarat Co-operative Milk Marketing Federation or GCMMF.Industry: Dairy.Revenue: $1.33 billion USD in (2007-2008)Employees: 2.41 million milk producers.Website: www.amul.com

Dr. Verghese Kurien, former chairman of GCMMF, is recognized as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, Chairman of the Banaskanatha union, was elected as chairman of GCMMF.

2.3 Products of the organization

Amul’s product range includes milk producers, milk, butter,

ghee, cheese, curd, chocolate, ice-cream, cream, shrikhand, paneer, gulab

jamuns, basundi, Nutramul brand and others.

In august 2007, Amul introduced Kool Koko, a chocolate milk

brand extending its product offering in the milk products segment. Other

Amul brands are Amul Kool, a low calorie thirst quenching drink, Masti

butter milk, Kool café, ready to drink coffee & India’s first sports drink

stamina.

Amul’s sugar-free Pro-biotic Ice-cream won the international

Dairy Federation Marketing Award for 2007.

List of products:

Bread spreads:

1. Amul butter (100gm= 19 Rs., 500gm=92 Rs., Insulation pack= 85Rs.)

2. Amul lite low fat bread spread.3. Amul cooking butter.

Cheese range:

1. Amul pasteurized processed cheddar cheese.2. Amul processed cheese spread.3. Amul pizza (Mozzarella) cheese.4. Amul shredded pizza cheese.5. Amul Gouda cheese.6. Amul Emmental cheese.

Mithaee Range:

1. Amul Shrikhand(Mango,Saffron,Almond,Pistachio,Cardamom)2. Amul Mithaee Gulabjamuns3. Amul Mithaee Gulabjamun Mix

4. Amul Mithaee Kulfi Mix

UHT Milk Range:

1. Amul Shakti 3%fat milk2. Amul Taaza 1.5%fat milk3. Amul Gold 4.5%fat milk4. Amul Lite Slim n Trim 0%fat milk5. Amul Fresh Cream6. Amul Snowcap Softy mix

Pure Ghee:

1. Amul Pure Ghee2. Sagar Pure Ghee3. Amul Cow Ghee

Infant Milk Range:

1. Amul Infant Milk Formula(0-6months)2. Amul Infant Milk Formula(6months above)3. Amulspray Infant Milk Food

Milk Powders:

1. Amul Full Cream Milk Powder2. Amulya Dairy Whitener3. Sagar Skimmed Milk Powder

Sweetened Condensed Milk:

1. Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

1. Amul Taaza Toned Milk 3%fat2. Amul Gold Full Cream Milk 6%fat3. Amul Shakti Standardized Milk 4.5%fat 4. Amul Slim n Trim Double Toned Milk 1.5%fat5. Amul Cow Milk

Curd Products:

1. Yogi Sweetened Flavoured Dahi(dessert)2. Amul Masti Dahi3. Amul Lassee4. Amul Masti Spiced Buttermilk

Amul Ice-creams:

1. Royal Treat Range(Butter scotch,Rajbhog)2. Nut-o-mania Range(Kaju Draksh,Kesar Pista Royale, Fruit

Bonanza, Roasted Almond)

3. Sundae Range(Mango, Black currant, Sundae Magic, Double Sundae)

4. Assorted Treat(Chocobar, Dollies, Frostik, Ice candies, Tricone, Chococrunch, Megabite, Cassatta)

5. Utterly Delicious(Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & confectionary:

1. Amul milk chocolate.2. Amul fruits & nut Chocolate.

Brown beverage:

1. Nutramul matted milk food.

Milk drink:

1. Amul Kool flavored drink.2. Amul Kool café.

Health beverage:

1. Amul Shakti white milk food.

Chapter 3. Introduction to the concept

Marketing mix of Amul

I] Product mix of Amul:

Product is a very important essential of marketing mix. In a

most simple way a product can be defined as: “Everything the

purchaser gets in exchange for his money.”

Amul’s product development was both by the spirit of the

cooperative system and profitability. Being cattle farmers’

cooperative, Amul was committed to buying all the milk offered by

the farmer. The perishable nature of milk made it imperative for Amul

to process the surplus milk and enter new product categories as

products increased.

The vast range of Amul products includes

some of the below:

1. Butter:

Launched in 1955, butter was one of the first milk products offered by Amul. It was also first time Amul successfully challenged the hegemony of an established brand. Amul’s earliest competitor, Polson been the monopoly milk supplier to the Bombay milk scheme. Amul displaced Polson to emerge as the undisputed leader in the butter market.

Composition: Milk fat 80% Moisture 16% Salt 2.5% Curd 0.8%

Calorific value: 720 Kcal/100gm

Special features: Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades.

Product specification: Meets AGMARK standard & BIS specifications No. is: 13690:1992

2. Amul Lite:

Low fat low cholesterol bread spread.

Unlike butter & margarine, Amul lite is a low-fat, low-calorie & low-cholesterol bread spread.

It is manufactured in on a fully automated ISO 9000 certified plant under strict hygienic conditions.

Product specification: The product is certified by AGMARK for quality.

3. Amul Pizza Mozzarella Cheese:

Ingredients:

● Milk, Common salt● 100% vegetarian coagulating● Enzymes

Special features:

● Amul pizza cheese has moist, soft, elastic texture and has a very timely surface sheen and when fresh, it has a slightly salty blandish taste and pleasant aroma.

4. Amul Shrikhand:

Amul Shrikhand is made from chakka, sugar and flavoring agents/fruits (Elaichi, saffron, mango pulp).

Composition: ● Fat 5.5% ● Milk solid-not fat 13.5% ● Sugar 40% ● Flavoring agent 2.5% ● Mango pulp.

Product specification: Meets BIS specification No is: 9532-1980.

5. Amul MASTI SPICED Buttermilk:

It’s the best thirst quenching drink which is free of color, preservatives, acids & sucrose sugar. (Unlike Cola drinks.)

Ingredients: Milk solids, common salt, spices and condiments,contains permitted stabilizer.

Product details: Pack – 200 ml Tetra, 1 Ltr. Tetra.

6. AMULYA DAIRY WHITENER:

Composition:● Milk fat 20%● Milk protein 21%● Carbohydrates: Lactose 33%

Sugar 18%Minerals 5%Moisture 3%

Product specification: Meets BIS Specification for sweetened milk powder. No. is: 12299:1988

7. Amul MALAI PANEER:

● Technologically, It is equivalent to cream cottage of western products.

● Can be kept good in the depth freeze for 6 months.

● It is exported to US, Gulf as well Singapore & Japan markets regularly.

● Automated production process giving Hygienic Malai Paneer unlike the

locally made Paneer & Being sold in open.

8. Amul Kool café:

Flavours: Coffee

Pack size: 200 ml glass bottle, 200ml Tetra pack, 250ml can.

Ingredients: Toned milk, sugar & Coffee, contains permitted emulsifier & stabilizer.

Serving size: 200ml.

9. Amul Shakti Health food drink:

Amul Shakti, unlike other wheat & barley based drinks, is a unique

combination of milk & natural goodness of kesar & Almond.

The product is available in 2 flavors: Kesar-Almond & Chocolate.

● Glass jars- 500gm & 200 gm

● Refill boxes – 500gm & 200 gm

● Pouches- 50gm and 25 gm

10. Amul Spray Infant Milk food:

It is made from partially skimmed milk, sugar, minerals & vitamins.

Special features: Product formulated on guidelines set by codex commission

of WHO/FAO.

11. Amul Ice-cream:

Amul Ice-cream was launched on 10th March, 1996 in Gujarat. Today the market share of Amul Ice-cream is 38% share against the 9% market share of HLL (Recently changed its name to HUL [Hindustan Unilever Ltd.]), thus making it 4 times larger than its closest competitor. It is the only national brand & all other Ice-cream brands are regional.

1. Profile Ice-cream:Available in 5 delicious flavours & 3 pack sizes (125 ml, 500ml, 1.25 Ltr.)Vanilla with Chocolate sauce, strawberry with strawberry sauce, Shahi Anjeer, Chocolate, fresh Litchi.

2. Sugar free Probiotic:Available in 4 delicious flavors & 3 pack size [125 ml, 500ml, 1.25 Ltr.]

1> Vanilla with Chocolate sauce, strawberry with strawberry sauce, Shahi Anjeer, Chocolate, fresh Litchi.

2> Swirl.3> Sticks: Frostik, Dollies, Candy.4> Cones: Butterscotch, Alphonso mango, Megabite Almond

Kesar.

12. MASTI DAHI:

● It is made from pasteurized toned milk.

● Made in Hygienic way in modern processing plant.

II] Price mix of Amul:

Product Pack Size/flavor Price (M.R.P)1.Amul butter i. 100 gm Rs. 19

ii. 500gm Rs. 92iii. Insulation pack Rs. 85

2. Amul lite fat bread spread

i. 100 gm Rs. 13ii. 500gm Rs. 63

3. Cheese spread 200 gm Rs. 404. Pizza Cheese 200 gm Rs. 505. Gouda Cheese 250 gm Rs. 856.Amul Shrikhand i. Mango Rs. 45

ii. Saffron Rs. 56iii. Pistachio Rs. 48

7. Amul Mithaee Gulabjamuns

i.500 gm Rs.60ii 1 Kg Rs. 110

8. UHT Amul Shakti 1 Liter Rs. 299. UHT Amul Taaza 1 liter (Tetra pack) Rs. 3210. Amul fresh cream i. 200 gm Rs. 25

ii. 1 liter Rs. 10011. Amul pure Ghee i.½ liter Rs.95

ii. 1 liter (Tin) Rs.19012. Sagar pure Ghee ½ liter Rs.9513. Amul cow ghee ½ liter Rs.10014. Amul Taaza toned milk [Fresh]

½ liter Rs.10

15. Amul Masti Dahi i. 200 gm Rs. 12ii. 400gm Rs. 20

16. Amul Masti spiced buttermilk

200ml Rs. 8

17.Milk chocolate 35 gm Rs.1018. Fruit & nut 35 gm Rs.15 19. Chocozoo i.264 gm Tin Rs.125

ii. 500 gm Tub Rs.138

Ice-creams

Product Pack size/Flavor Price (M.R.P)1. Tricone i. Butterscotch Rs.18

ii. Chocolate Rs.202. Chocobar Rs.123. Frostik Rs.204.Mango dolly Rs.105.Kulfi Rs.126. Cassata slice 100 gm Rs.257. Amul swirl 100 ml cup [Black

currant, mango, cheese strawberry]

Rs.20

8. Vanilla & strawberry ½ liter Rs.459. Butter scotch ½ liter Rs.6010.Chocolate Chips ½ liter Rs.12511. Small cups 50 ml [Vanilla,

strawberry]Rs.5

12.Couple pack 750 ml + 1 freeI. Mango Rs.120ii. Pineapple Rs.120iii. Tutty-Fruity Rs.110iv. Fruit Bonanza Rs.150v. Kesar Crackle Rs.120vi. Fresh litchi Rs.150vii. SSCV [Kesar + Gulab jamun]

Rs.150

13.Chow-vanilla container

750 ml Rs.80

14. Chocolate-Almond, kesar, badam

750 ml Rs.90

III] Place mix of Amul

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.

1. Alignments of four distribution highways of fresh, chilled, frozen and ambient products are made by introducing project DIL.

2. About 1200 distributors in small towns are added.3. Approximately 1400 exclusive Milk distributors in various markets of

India are present.4. Amul has created 2300 Amul parlors in 2007-2008 from which sales

turnover of Rs.107 crores was generated.5. They have targeted to set up 10,000 Amul outlets by March 2009 &

it’s on the completion stage.6. To achieve such challenging goals, Amul have set their parlors at

railways, airports, universities and shopping malls. 7. Amul consider their ‘Distributors’ to be the real marketing manager.

Exports:

GCMMF is India’s largest exporter of dairy products. It has been accorded a “Trading house” status. GCMMF has received APEDA Award from Government of India for excellence in dairy product exports for last 11 yearsThe major export products are:

Consumer packs=>

● Amul pure Ghee● Amul butter● Amul Shrikhand● Amul Mithaee Gulab jamun● Amul Malai paneer● Amul UHT Gold milk

● Amul UHT lite ‘n’ trim Milk

Bulk packs=>

● Amul skimmed milk powder● Amul full cream milk powder.Many of Amul products are now available in the USA, Gulf countries & Singapore.Amul has recorded a turnover of Rs. 125 crores during last year.

IV] Promotion mix of Amul

● Given this wide product portfolio, Amul’s approach is to promote its brands in a rotational cycle of two to three years.

● After Ice-creams were launched in 1996, the category was re-visited in 1999, in order to improve availability of the product and make it affordable.

● The focus shifted to cheese in 2001, Amul Masti chaas in 2004-2005 (Sales of Masti Dahi grew by 25%), Nutramul and kool café in 2006 and this year the focus is on Amul Koko-cold chocolate drink.

● Amul uses a variety of media to communicate.

● Most famous is billboard campaign.

● The endearing Polka dressed girl and pun at various issues increased brands fan following.

● Below-the-line activity has grown too-such as the Amul food festival, which has been held for the last 5-6 years between October and December in about 50,000 retail outlets.

● The ‘Chef of India’ promos invite hotel chefs to come up with recipes using as many Amul products as possible. And is conducted at city, state and national level.

Intelligent marketing

● One of the most conservative FMCG entities GCMMF- spends 1% of its turnover on promotions.● Amul butter girl is one of the largest run ad campaigns in the country for 41 years.● Intelligent marketing of milk, Ice-cream and buttermilk.

3.2 Advertising

Amul has one hell of a branding strategy; they take whatever is happening in

politics, entertainment, sports etc. and turn the situation into a billboard to

tell their butter/jam/milk product story. Almost every week they do this so

restlessly that when something big happens, customers tend to think ‘How

Amul will portray it’.

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 too commoditized like

butter. Thus, the clean, emotion-based ads refrained from using hi-tech

special effects, and aimed at maintaining the perfect balance between

traditional and modern.

Terrorists attack the Sri-Lankan cricketers in Lahore - Feb'09

3.3 Amul Hits

Amul Hits of 2008-2009

Superstar Akshay Kumar reaffirms his top position in Bollywood with the stupendous success

of his latest film - 'Singh is King" - Sept '08

Tata Motors Nano plant shut down operations in Singur, West Bengal due to political pressure.

- Sept'08

Financial crisis hits USA - the land of opportunities - Sept '08


Barack Obama elected first African-American president of the United States - Nov '08

Tribute to Sourav Ganguly - Ex Captain of the Indian Cricket Team, on his retirement - Nov'08

Latest Bollywood block-buster 'Dostana' - Nov'08


Slumdog Millionaire wins 4 Golden Globe Awards and has got 10 Oscar Nominations - Jan '09

Activists ransacked a Mangalore pub, objecting to the presence of women there. - Feb '09

To protest against the attack of girls in the Mangalore pub,an internet based group launches a drive to send pink underwear to the Sene chief on Valentine's Day- Feb'09


Protests againts the proposed flyover on Peddar Road in Mumbai - April '06

On the proposal seeking increase of reservation quotas for Other Backward Classes (OBCs) in Central Universities and premium institutions like IIMs

& IITs - April '06

Controversy on increasing height of Sardar Saravor Dam(Narmada Dam) on Narmada river in Gujarat - April '06


Bollywood film Fanaa release help up in Gujarat due to agitation over star's comments on Narmada Dam Project - June '06

On new up coming popular singer Himesh Reshammiya - June '06

On proposed implementation of quota reservation in institutes of higher education - June '06

On the fracas between Bollywood item girl Rakhi Sawant and Punjabi pop singer Mika Singh on his birthday party - June '06

Amul Hits of 2005 - 2006

On the unprecedented heavy rains flooding Mumbai causing loss of lives and havoc to people, their homes & properties - August'05

On Mallika Sherawat's first international film 'The Myth' with Jackie Chan - May'05

On Greg Chappell of Australia being appointed new coach of the Indian Cricket Team - May'05

On the budget incorporating new Value Added Tax (VAT) - May'05


On compulsory sterilisation introduced during Indira Gandhi regime.

When helmets were made compulsory in Bombay

Amul Hits of 2001 - 2002

Protest over the proposed flyover in Mumbai by renowned singer and prominent citizens - April 2001

On the Bangladesh issue - April 2001

On the mango season - May 2001

Chairman

Registrar of Co-operative society

General Manager

General Manager

Board of Directors

Marketing manager

Advertising manager

Finance ManagerMarketing manager

Advertising manager

Finance Manager

Graphical Representation of Sales Turnover

Year Rs. (in million)US $ (in million)

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37740 839

2006-07 42778 1040

Sales Turnover

0

200

400

600

800

1000

1200

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

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3.4 Amul competitors Butter Britannia Nestle

Cheese● Britannia

Baby food ● Nestle ● Heinz

Dairy Whitener segment ● Nestle ● Britannia

Ice-creams ● HUL

Chocolates & confectionaries Cadbury Nestle Pizza Pizza hut Dominos Nirulas Euozen Pizza

Ultra high treated milk Nestle Britannia

Sweet condensed milk Nestle Britannia

Cottage Cheese (Paneer) Cadbury SmithKline Beecham

Flavoured milk Britannia Nestle

1] BRITANNIA

1. BNZFL is a joint venture Britannia industries Ltd. And the Fonterra cooperative Group, New Zealand, a dairy cooperative group.

2. The company focuses entirely on the dairy business, with cheese being its flagship business. The other products it sells are dairy whiteners, butter, ghee and a malt drink-Anlene. All products are marketed under the ‘Britannia Milk man’ brand.

3. BNZF only sells in the processed cheese segment and has five variations of processed cheese in the market, besides a cheese dip product. Over half of the company’s revenue comes from the processed cheese segment.

4. BNZF cheese is priced at a premium in the market, one reason being that the cheese is sourced from cow’s milk. [Unlike Amul, that sources its cheese from buffalo milk.]

5. Cheese products: Cheese cubes, cheese singles, Britannia cheese spread in different flavors like Masala herbs, peppy pepper etc.

6. Other products in the milk range include products like sweet Lassi (Buttermilk) and cold coffee in 200 ml tetra pack. Lassi is priced at Rs. 10 while the cold coffee is priced at Rs. 12.

7. The firm also has in its portfolio Daily fresh Dahi (Curd) & has launched low fat Dahi in 2008.

Strategy of Britannia:

1. Besides focusing on competitive pricing, BNZF has adopted a three-pronged strategy of freshness (Lower pipeline stock), availability (improve distribution network) and visibility (more shelf space at modern trade.)

2. Being no. 2 in the butter and cheese market after Amul which holds more than 86% of it should be following offensive strategy by attacking the strengths of Amul cheese market.

2] Nestle

1. Nestle India is a subsidiary of Nestle S.A, worlds biggest food company and a leading Swiss giant.

2. Company has a wide presence across India with its portfolio of strong brands Nescafe, Maggi, Milkybar, Milo, Kitkat, Bar-one, Polo, Munch, Milkmaid, Nestea, Nestle milk, Nestle Fresh ‘n’ natural Dahi and Nestle Jeera Raita.

3. The company is focused on growing its market share through renovation and innovation of its existing brands of India.

Strategy of Nestle

1. It wants to give GCMMF competition across the entire dairy line. Will be busy protecting the dominance of its Cerelac and milkmaid brands, against the impending price-led onslaught from GCMMF’s Amul Infant Milk Substitute & Mithai Mate which now be produced from a spanking new 8,000 tonne a year, facility at Mehsana.

2. Likewise, Nestle Fresh ‘n’ Natural slim Dahi (fat free) Nestle Milkmaid fruit yoghurt (fat free with real fruits), Nestle Cerelac stage 4 and Nestle Nan with DHA (Both infant foods) were also launched.

3] Cadbury

1. Cadbury Schweppes is the no. 1 confectionery and third largest soft drinks company in the world. They manufacture, market and

distribute branded chocolates, confectionery and beverages that bring smiles to millions of consumers across 180 countries.

2. Cadbury India began its operation as a trading concern in 1947. The company today employs nearly 2000 people across India.

3. Currently Cadbury India operates in 3 sectors viz. Chocolate Confectionery, Milk food drinks and in the candy category.

4. In the chocolate confectionery business, Cadbury has maintained its undisputed leadership over the years and has market share of over 70%- The highest Cadbury brand share in the world.

5. In the milk food drinks segment, their main product is Bournvita-the leading Malted food drink (MFO) in the country.

Strategy of Cadbury

1. Since 1965 Cadbury has pioneered the development of cocoa

cultivation which gives it a strong unbending foundation in chocolates segment in India.

2. Being the market leader it follows the defense strategy.3. It re-launched three brands: 5 star, Gems, and Bournvita last year. It

is looking at its strategy afresh to gain a toehold in the sugar confectionery market, and to reduce its traditional dependence on chocolates.

Amul defending its Turf

1. Largest milk brand in Asia marketing more than 30 different brands of dairy products like cheese, Ice-cream, condensed milk, ready to-eat pizza, beverages etc.

2. Amul is the market leader in ghee and butter.3. Amul Kool and Kool café are also doing well.4. Moving consumers from loose milk to packaged milk & gradually

move them up the value chain (Tetra pack to beverages, all available under the Amul brand)

5. Being exposed to a brand. It is natural for a customer to try more products.

6. Improving socio-economic condition of the customer anchors the desire to enhance lifestyle.

Targeting

1. Changing retail Environment.2. Striking out on its own, with Amul outlets or parlors to deliver

consumers total brand experience.3. Launched in 2002, there are now 400 Amul parlors across the

country, which contributed 3% to the brands total turnover few years back.

High profile Locations: Amul parlors are today present on campuses of Infosys, Wipro, IIM-A, IIT-B, Temples, Metro-rail and railway stations in Gujarat.


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Chapter 4. Conclusion

1. Amul is such a vast company and has achieved a brand name and a

special place in the hearts of the people.

2. Amul concentrates more on domestic level sales; it is such a big name

in dairy industry that it should take constructive step towards foreign

sales on a higher level.

3. It can be concluded that it has a smart advertising policy but it does not

reach to large number of people.

4. There are many products such as UHT Milk Range, Amul Gold Fresh

Milk, Amul Pizza are not available in every region, which is not a good

point.

But Amul has achieved a huge success with best quality goods and

customer satisfaction with a smart and intelligent advertising policy.

Chapter 5.Recommendations/Suggestions

1. Amul has a brand image so it does not spend a huge amount of money

on advertising its each and every product. But at least the consumers

must get an idea about all their products/items.

2. Certain products like Amul Emmental cheese, all kinds of Infant milk

are not available in the retail outlet.

3. Nestle and Cadbury have a large market share for chocolates and

confectionaries. Amul should try something new in pure chocolate

flavour with dry fruits.

4. Amul should also try its hands on Healthy and Nutritious Sugarless

Chocolate Bars, as now a days people are very health conscious.

5. Amul can also try something in Biscuits. Milky and healthy biscuits

will be nutritious and hence will increase its market share in one more

area.

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