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Amul 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. Amul product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade. Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/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 market. Other potential markets being considered include Sri Lanka.
GCMMF - An Overview
Year of Establishment Members No. of Producer Members No. of Village Societies 1973 17 District Cooperative Milk Producers' Unions (16 Members & 1 Nominal Members) 3.18 Million 16,117
Total Milk handling capacity 13.67 Million litres per day per day Milk Collection (Total - 20113.88 billion litres 12) Milk collection (Daily Average 10.6 million litres (peak 13 million) 2011-12) Milk Drying Capacity Cattle feed manufacturing Capacity Sales Turnover -(2011-12) 647 Mts. per day 3690 Mts. per day Rs. 11668 Crores (US $2.5 Billion)
Composition: Total fat Cholesterol Sodium Carbohydrate Dietary fiber Vitamin A Vitamin C Calcium Iron 32% 2% 2% 7% 9% 2% 2% 8% 4%
After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted.
The four sub activities performed by Amul while targeting are:Defining the abilities of the product and resources needed to enter a market
Analyzing competitors on their resources and skills Considering the companys abilities compared to the competitors
The first three sub activities are described at the topic competitor analysis. The last sub activity of deciding on the actual target market is an analysis of the information made available when comparing the companies abilities to the competitors. This analysis leads to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share. Obviously, targeting can only be done when segments are predefined; there have to be segments to analyze the competitors which are in this market. When the process of targeting is ended, the markets to target are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual marketing strategy, knowledge of the differential advantages of each segment is needed. When positioning a product, the segments are first analyzed, this process is described next.
The major marketing management decisions can be classified in one of the following four categories: PRODUCT PRICE PLACE PROMOTION These 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. The marketing mix is portrayed in the following diagram:
PRODUCT
POSITION
TARGET MARKET
PRICE
PROMOTION
The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner. Now, lets see the marketing mix for new launch of AMUL i.e., their products, price, place and promotion.
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional strategy can consist of:
Advertising: Is any non personal paid form of communication using any form of
mass media?
Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.
Above A Pull Strategy (Left) Push Strategy (Right). Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.
This advertisement shows Finance Minister Pranab Mukherjee going to present the Budget
(February 2011).
The advertisement shows the oil spill off Mumbai coast (August 2010).
Sylvester daCunha designed the first ad campaign for Amul Butter. Thanks to Dacunha Associates, these punchy advertisements have been entertaining us since the last five decades.
BANNERS:-
A strong emphasis on target costing, design-to-cost, value engineering, and design for manufacturability. Minimum product variety. Significant manufacturing and accounting involvement in development. Suppliers are well-integrated into Cost the development process. Factory uses high volume equipment specifically oriented to the product; automated material handling. A disciplined and rigorous product development process. Strong focus on understanding customer needs and providing Quality / products that meet those needs. Use of techniques like FMEA, FTA, FRACAS, DOE, Taguchi Methods, poke-yoke, and Reliability / reliability prediction. Heavy emphasis on testing and Dependability qualification. Processes are oriented to self-checking and adjustment and use of computer- aided inspection and test equipment. Use of modular design approaches. Sufficient resources to undertake development processes underway. Continuous surveillance of the marketplace and understanding of customer Time-to- needs. Well-defined development processes based on tightly integrated design automation tools. Well-planned and managed Market programs with clear definition and acceptance of responsibilities. Process equipment to handle a wide range of work envelopes; FMS; quick set-up and changeover. A technology plan and roadmap based on the business and product strategy and plan. Effective technology management. Process to review new technologies developed outside for n ew Innovativeness applicabilitytointernally. Effective process to deploy design technology development programs. State-of-the-art / Technology and analysis tools to support requirements of new technology. Policies to invest in training and development of personnel to master new technology. Culture open to new ideas and taking risks. Investment in new process technology.
A starting point is to define and understand the company's marketplace, customer needs and competition. Based on this assessment, the company's primary competitive dimensions can be selected and a strategy defined to develop and enhance these competitive dimensions. Once this is done, product and process design based on IPD can be oriented to implement this strategy.
In order to ensure a continuous & efficient distribution, an approximate figure has to be arrived at for getting the initial orders & to ensure adequate supply so that any delays or resultant losses are avoided. For this purpose, the company adopted the consumer response hierarchy model so that, it is ensured that all the company enters the market with a bang avoiding any problems of late or inadequate supplies. This is highly essential to support the huge promotional budget, since if the supplies arent at the right time, all other effort can be in vain. As Per The Consumer Response Hierarchy Model; The Calculations Are Like Below:
REPURCHASE
5% of Trial 10% of Preference Preference 20% of Liking 40% of Knowledge 60% of Awareness 80% of Targeted Population
Studying The Demographic Conditions Of INDIA It is expected that 80% of this targeted population will get aware about the products with the help of the sales promotion, advertising and other marketing tactics. Out of the People being aware of the products & the company, 60% will have somewhat exact knowledge of the product. It is expected that out of the people having the knowledge of the product, with the product features and the requirement of milk in the country, 40% will develop a liking for the products. 20% of the target audience who have developed a liking, will opt for the companys product as against the products they are using for daily consumption. 10% of the people who might prefer the product, will actually try it for the first time. 5% of the people who have tried it for the first time, might be convinced to purchase the product again Thus, adding up the people trying the product and the re-purchaser of the products, it comes up to 624960 people.
Market research is discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is complete it can be used to determine how to market your specific product. Whenever possible, try to reduce risks at the earliest possible stage. For example you could carry out market research early on and not wait until you are almost ready to enter the market. If early market research reveals that your business idea has real potential, you can use this information in planning the build-up of your business. For starting up a business there are a few things should be found out through market research in order to know if your business is feasible. These are things like:
Market Information
Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. The most basic form of market information is the best quotation and last sale data, including the number of shares, with respect to a particular security at a given time. [Market research 2006]
As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know Amul is a co-operative organization but chocolate industry is a profitable industry we can t ignore it. With the help of research, company can find out its week points in chocolate product and can increase its market share through rectify mistakes. People have believed in Amul s product and they will accept its chocolates also if effective actions were taken. The survey resulted into following conclusions :
Amul must come up with new promotional activities sucht hat people become aware about Amul Chocolates like ChocOzoo, Bindaaz, and Fundoo.
Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.
In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, are provide a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques.
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