Amul

THE TASTE OF INDIA

India's place in the sun would come from the partnership between
wisdom of its rural people and skill of its professionals

Group 10
Kanika Virmani, 13P146

Mayank Rathore, 13P150

Kaushik T Nihalani, 13P148

Rishi Chaturvedi, 13P162

Shashank Shukla,13P166

Number of words: 5055

Table of Contents

Contents
Executive Summary __________________________________________________________ 1
Purpose ____________________________________________________________________ 3
Justification _________________________________________________________________ 4
Introduction _________________________________________________________________ 5
Brief History _________________________________________________________________ 6
SWOT Analysis ______________________________________________________________ 8
PEST Analysis ______________________________________________________________ 10
Porters Five Forces _________________________________________________________ 11
Survey Results _____________________________________________________________ 15
Product Offerings &Marketing Strategy __________________________________________ 22
Market Share _______________________________________________________________ 23
Future Growth Strategy _______________________________________________________ 24
Segmentation ______________________________________________________________ 25
Positioning _________________________________________________________________ 27
Exhibits ___________________________________________________________________ 29
References ________________________________________________________________ 32

Executive Summary

Pg. 01

Executive Summary
Amul is a product that has a great reach in the market with its packaged milk, butter
and cheese, especially in western and northern markets. It has been able to run a
profitable business despite following co-operative business model. The focus has
always been on providing fair price to the farmers and not on profit maximization.
Moreover, the expenditure on advertising and marketing was around 1% of its
revenues which is very less than what other FMCG companies spent.
Amul is seen as a brand that people can trust and connect as a brand associated with
purity and benevolence. Other than that it also has a strong distribution network which
allows it to improve the milk collection facilities and distribution. Its presence in rural
markets is very prominent. Despite that, there are segments where Amul is not doing
very well.
Amul chocolates are nowhere close to the market leaders Nestle and Cadburys. They
have not been able to leverage their experience in dairy industry to capitalize in this
segment. Our research indicated that almost 48% of current chocolate users are
willing to try a new product from Amul and 56% of those would prefer that it be in a
range of 10-15. Amul can re-launch their chocolates and position them in a way that
they are closer to the parent brand. It might not be able to use the Amul Girl for the
chocolate campaign as it might not be able to return equity to the parent brand, but
packaging can be changed to resemble the brand values of benevolence and purity,
for the current packaging is not close to it.
The Amul ice-cream is made of milk fat instead of vegetable fat which improves its
quality. But market penetration of Amul in ice-creams is only in family packs. Amul
needs to capture this market as well and try to enhance its reputation in the dairy
industry. Our market research concluded that majority of Amul Loyalist (Those who
prefer Amul ice creams not only in Family packs but other forms as well) stuck with the
brand for its superior taste. This approach to brand positioning will help Amul to
capture this market as well.

Executive Summary

Pg. 02

There is not much presence of Amul in Fast Food segment and visibility is limited to
western region only. But company is not concentrating in this area. For Amul, this is
only to complement its current range of products. Moreover, fast food segment is
capital intensive and there is stiff competition from other national and international
brands.
In the future, the company wants to increase its share of organized milk production in
India, which is currently only 3%. For that, it will have to concentrate in southern and
eastern regions where its presence is limited and fight against the strong regional
players there. To gain market share in the new product categories that it is entering
(ice-cream, beverages, paneer, milk (in tetra packs), and dahi and fresh-fruit lassi)
they will have to increase their advertising expenditure. It has strong visibility across
the segments but is not able to give the consumers a compelling reason to buy. For
that to happen, brand equity will have to flow from parent brand to these new
products, but care needs to be taken to make sure that such steps do not dilute the
brand equity of the parent brand.

Purpose

Pg. 03

Purpose
The main purpose of this case study is to understand the underpinnings of Amul. Amul
is the biggest milk aggregator of India, the oldest and most successful co-operative
unit in India and the biggest milk supplier as well. It has become the most far-reaching,
flexible distribution network that allows it to supply milk to consumers after collecting it
from farmers.
Moreover, despite spending only a fraction of its revenues on advertising, it has a high
brand recollection value and has been able to leverage it to increase its reach to the
customers.
Also, there is a scope to replicate the success of co-operative model of Amul to
various other segments where the suppliers are very week and fragmented. One of
the examples can be vegetable vendors.
But despite having so many strengths, Amul happens to lag behind in many
categories where it has positioned itself. Primary among those categories being
Desserts category. Through this Case study, we will try to understand the dairy
segment, its drivers, the customer perception of the same and product branding by
Amul.

There are many objectives through which we are trying to look at Amul:

Current market and brand positioning of Amul and entire portfolio of products

Future opportunities due to the changing market dynamics and leveraging the
current market strengths
An onslaught of foreign players and diversification of the current market players
might pose an imminent threat to the current market position of Amul
To understand how despite limited spending Amul has had success in positioning
its product well

The Co-operative structure has been both unique and successful

Gain an insight into consumers thought process

Justification

Pg. 04

Justification
Despite having successful products, Amul still has a list of under-performing product
range. This might pull the company down, if the product which are now Amuls forte
start to under-perform.
Taking another look at it product portfolio and utilizing its existing strengths will allow
Amul to maintain the industry leader that it has been over the years. Also, it is the right
time for Amul to restructure, as other competitors are planning to enter the market, but
as of yet do not have a foot hold in the market
Also given the changing scenario of the global milk market, it is only natural that Amul
introspects into its current strengths and positioning.

Introduction

Pg. 05
What you need is
good
management with
farmer power.
Good
management
gives this power
the right direction
and thrust.
Nothing can stop
the farmers then.
Least of all the
MNCs.
V.Kurien

Introduction
Amul - Anand Milk Union Limited, is the Indian dairy cooperative, based at
Anand in Gujarat, India, which made India worlds largest producer of milk and milk
products. In 1946, beginning with two village cooperatives and 250 liters of milk per
day, nothing but a trickle compared to the flood it has become today, Amul, a product
of Dr. Verghese Kuriens brainchild movement, White Revolution, has risen to become
the largest food brand in India with equal stand overseas.
A cooperative movement which began in 1946, got full integration and
organization after GCMMF - Gujarat Cooperative Milk Marketing Federation Ltd, the
apex marketing body of these district cooperatives was set up in 1973. Thereafter
GCMMF went on to become the largest food products marketing organization of India.
Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an
economic network that links more than 3.1 million village milk producers with millions
of consumers in India. Few of the achievements of Amul are:

3.1 million milk producer member families

15,760 village societies
15 District Unions
9.4 million liters of milk procured per day
150 million (US$2.6 million) disbursed in cash daily
GCMMF is the largest cooperative business of small producers with an
annual turnover of 53 billion (US$190 million)
The government of India has honored Amul with the Best of all categories
Rajiv Gandhi National Quality Award
Largest Milk Handling capacity in Asia
Largest cold chain network
48 sales offices, 5000 wholesale distributors, 7 lakh retail outlets
Export to 37 countries worth 150 crore (US$26 million)
Winner of APEDA (Agriculture & Processed food products Export
Development Authority) award for eleven consecutive years.

Brief History

Pg. 06
Who told you
there is one
Amul? There are
more than 175
Amuls across
various districts
(in Gujarat)
V.Kurien

Brief History
The revolution started as an awareness program among the farmers who had
grown and matured into a protest movement against the exploitation of marginal milk
producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in
the small town of Anand (in Kaira District of Gujarat). As milk is perishable, farmers
were compelled to sell it for whatever they were offered. Often, they had to sell cream
and ghee at throwaway prices. In this situation, the one who gained was the private
trader. This situation is what led to the establishment of the Kaira District Cooperative
Milk Producers' Union Limited (popularly known as Amul) which was formally
registered on December 14, 1946.
The Kaira Union began pasteurization and marketing for dairy needs of
Bombay Milk scheme in full force from June 1948. Being an assured market rendering
inherent incentives, by the end of 1948, more than 400 farmers joined in more village
societies, and the quantity of milk handled by one Union increased from 250 to 5000
liters a day.
The cooperative was further developed and managed by Dr. Varghese Kurien
along with H.M. Dalaya, whose innovation of making skim milk powder from buffalo
milk for the first time anywhere in the world and a little later, along with Kurien's help,
making it on a commercial scale led to the first modern dairy of the cooperative at
Anand, which would compete against established players in the market. The success
of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five
other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were
organized.
In order to combine forces and expand the market while saving on advertising
and avoid competing against each other, the GCMMF, an apex marketing body of
these district cooperatives was set up in 1973. The Kaira Union which had the brand
name of Amul with it since 1955, transferred it to GCMMF.
Amul has a three tier organizational structure:

Daily Cooperative
Society
(Village Level)

Milk Union
(District Level)

Milk Federation
(State Level)

Pg. 07

Brief History
This structure evolved at Amul in Gujarat later on went on to be replicated all
over the country under the Operation Flood Programme. The effect of this operation is
clear in the evaluation of World Bank which states
It has been proved that an investment of Rs. 20 billion over
20 years under Operation Flood Programme in 70s & 80s has
contributed an increase of Indias milk production by 40 Million
Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood
period to more than 60 MMT at the end of Operation flood
Programme.
Due to this movement, the growth movement rendered the milk
production triple between the years 1971 to 1996. As a result, expanding its
business overseas, in June 2013, Amul signed a tripartite agreement to start a
dairy plant in Waterloo Village in upstate New York. Under the agreement
Amul will be able to supply to US as well as Canada, and export to Europe. In
a way beginning a new era for Indias dairy giant.

SWOT Analysis

Pg. 08

SWOT Analysis
Strengths

Amul has the largest distribution network for any FMCG company. Amul
products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. This makes it very successful in rural market
penetration, an area now being explored by FMCG due to market saturation in
urban markets

This distribution network is supported by the largest cold chain network in the
country

Amul is the largest exporter of dairy products in the country and has a foot print
in over 40 countries around the world. It can be called the Global face of Indian
Dairy Industry and Indian Co-operative model as well

Amul's uses superior quality in its ice creams as well. Ice creams by Amul are
made from milk fat and thus are ice creams in real sense of the word, while
many brands in India sell frozen desserts made from vegetable fat

To ensure that the customers get better Value-for-Money, Amul has never
spent more than 1% of its revenues on brand building, as against other
FMCGs who spend close to 6-7%. This allows them to cater to the price
sensitive market as well

Had an annual turnover of $3.2 billion in 2012-13 and generates employment

opportunities for 12 million farm families

Use of parlors to enhance presence and sale of complementary goods. At

certain parlors, Pav Bhaji, Pizza, Dosa and other complementary products are
sold, not to generate revenues, but to place the brand and its complementary
products

With such presence, it hardly comes as a surprise that Amul was named the
Most Trusted brand in the Food and Beverages sector in The Brand Trust
Report

SWOT Analysis

Pg. 09
Weaknesses

The highly complex supply chain, which gives effective results to Amul is also a
liability, given the fact that it has now become very complex to handle. This is
partly due to its strong dependency on weak infrastructure.

3rd party alliances with firms that do not belong to the organized sector can
make it vulnerable

There is an uncertainty of availability of adequate raw material. There is little

control over yield of milk and its price, as a lot depends upon the monsoon in
India
Most of the products under Amuls brand are perishable in nature

Opportunities

Penetrate international market and globalize its product range

Diversified product portfolio would go a long way in increasing Amuls foot print
Expansion existing categories like processed foods
Increase the number of Amul parlors and try to get increase its foot-print in the
market
The chocolate market is growing at a rapid stage so it can introduce new brand
and intensify advertising to further penetrate into this market
The company can also try to increase number of products it has under
Desserts category
There is a lot of potential for growth and development as huge population stay
in rural market where other companies are not targeting

Threats

Due to globalization a large number of multinational companies may get

attracted towards manufacturing their products in India due to abundant
availability of raw materials and cheap labor force, which may increase the
competition for Amul
Growing price of milk and milk products may reduce its volume of sales and
profit margin
In chocolate market, due to low brand loyalty and onslaught of international
market leaders, Amul faces a probable demise
Milk vendors can pose a threat to the company as they are only concerned
with the profit they are going to earn from milk. The quality of the milk is found
to be poor as compared to the international standards
It faces potential threats from the unorganized sector for milk vendors.

PEST Analysis

Pg. 10

PEST Analysis
Political

Since Dr. Verghese Kurien was forced to quit a power struggle has ensued
Will have to engage and negotiate with political interests for smooth functioning.
Since the budget range is decontrolled, no political effects are seen on that front

Economic

Increasing per capita income of the population is resulting in a higher disposable

income to the consumer as the purchasing power parity is also rising steadily
The growing middle class/urban population will increase the demand\
The aspirational middle class is also ready to accept new products, even if they
are sold at a premium
Economies of large scale production have allowed it to operate at optimal capacity

Social

Per capita consumption of the dairy products is expected to increase in the future
Health conscious appeal to the society by providing lower cholesterol in its
products than Mithais (sweet meat)
Increasing gifts and incentives culture in the society is now shifting to desserts
So there is an incentive to increase Dessert portfolio
Payout to the farmers has also been registered amounting to 23%CAGR in the
preceding few years, which has resulted in social upliftment and raising standard
of living for the rural India

Technological

Amul's technology strategy is characterized by four distinct components: new

products, process technology, and complementary assets to enhance milk
production and e-commerce
E-commerce has become an important medium to facilitate promotion and
enhance consumer reach
Better access to information on the output as well as support services to the
farmers while providing them a better planning tool to marketing personnel
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.

Porters Five Forces

Pg. 11

Porters Five Forces

Porters five forces analysis of Amul gives us an insight into the strategic stature of
Amul. The porters forces identifies the potential parameters, like advertising strategy,
pricing policy, distribution system etc. which affect an organizations strategy of
achieving the highest share of profitability in any competitive market.
The forces comprise of:

Threat of new entrants

Bargaining power of supplier
Bargaining power of buyers
Rivalry among competitors
Threats from substitutes

With regard to GCMMF the porters five forces can be explained as follows:
Threat of entry of new competition LOW
o Capital Investment
Investment requirement of this business - substantially large (including the
processing and marketing costs)
With established cooperatives like Amul, it becomes very difficult to step into
the highly dominated market.

Brand Loyalty
GCMMFs long established benevolent image
Major challenge to mold the preference of its customers.

Resource Advantage
GCMMF, having a very good reputation both in India and the international
market
Procurement of raw materials becomes a challenge for new entrants with
Amul in picture.

Distribution Channels
Effective channels for procurement and supply essential for maximizing
productivity and profitability.
Amul already holding and maintaining well its procurement and supply
channels
Difficult for new organizations to tap onto the same.

Rivalry among competitors:

HIGH

Porters Five Forces

Pg. 12

Few of the competitors of Amul include the following:

o Packaged Milk:
Nestle
Mother Dairy
Regional brands
o Ice Cream
Vadilal
Kwality Walls
Cream Bell
Local & Regional players
o Chocolate
Nestle
Cadbury
Mars
Others
The various factors that come into play:
o

Economies of Scale:
GCMMF enjoys high economy of scale especially in the dairy
product market
An aegis under which Amul has not yet faced any major
competitive threat.

The Type of products:

Based on the categories of products Amul faces different
competitions.
Like in case of the chocolates the major competitors and market
leaders are Cadbury and Nestle.
Competition in almost all the categories from the local brands
and retailers. Eg. Nandini, Arokya and Hatson milk brands in
southern India market.

Bargaining power of supplier LOW

o Amul began as a cooperative society with the sole purpose of providing
respite and enriching the lives of the exploited farmers.
o The farmers (suppliers) equal beneficiaries with the development of this
cooperative society.
o With such a conducive environment, rural suppliers have little to
moderate bargaining power.

Bargaining power of buyers

HIGH
o lot of players in all categories packaged milk, ice cream and chocolates
o All the brands offering almost similar value for money
o Consumers have a lot of choice for switching brands.

Porters Five Forces

Pg. 13
o

Also the increasing number of buyers makes it difficult for Amul to manage its brand
loyalty.

Threat of Substitutes LOW

o Packaged Milk:
One of the most basic necessities of everyday household.
Very difficult to substitute.
Minor substitutes like dairy whitener, condensed milk etc.
The market is still lead by Amul.
o Ice Cream:
Major substitute of ice cream frozen Yoghurt.
Demand of ice cream still holding its ground.
o Chocolate
Chocolate has no immediate substitutes.

The above mentioned forces keep interacting with one another in order
to change the dynamics of the market. But seeing the previous performances it
can be concluded that Amul has outperformed most of its competition.

Porters Five Forces

Pg. 14

Threat of new
entrants - LOW due to
established
players and
brand loyalty

Bargaining
power of
Suppliers - LOW
- cooperative
society with most
suppliers rural
farmers

Rivalry among
competitors HIGH - due to
presence of other
brands and local
vendors

Threat from
substitutes LOW - since
most products
are necessities

Bargaining
power of buyers
- HIGH - due to
lot of options
available

Survey Results

Pg. 15

Survey Results
Average Weekly expenditure
350
300
250
200
311
150

252.16

228.12

100
50
0
North

West

Rest of India

Pg. 16

Survey Results

Pg. 17

Survey Results

Survey Results

Pg. 18
Factors in buying Amul Brand of Milk

Purity
Availability
Pricing
Others

72
54
10
5

West
Reason

Number

Amul Loyalist

Taste
Availability

58
28

25
19

Variety
Discount Offer

27
8

16
5

* Number of respondents 67 multiple options allowed Amul respondents 31

Survey Results

Pg. 19

North
Reason
Taste
Availability
Variety
Discount Offer

Number
70
29
20
2

Amul Loyalist
20
10
13
2

* Number of respondents 82 multiple options allowed Amul Respondents 21

Rest of India
Reason
Taste
Availability
Variety

Number
21
7
8

* Number of respondents 24 multiple options allowed Amul Respondents 8

Willingness to change

94

Willing to Change

88

Not Willing to Change

Amul Loyalist
8
4
4

Survey Results

Pg. 20

Other Products Visibility - North

Fast Food
Health Drink
Paneer
Milk Drinks
Dahi
Butter Milk
0

10

20

30

40
Column3

50

60

70

80

Survey Results

Pg. 21

Other Products Visibility - West

Fast Food
Health Drink
Paneer
Milk Drinks
Dahi
Butter Milk
0

10

20

30

40

50

60

70

Column3

Other Products Visibility - Rest of India

Fast Food
Health Drink
Paneer
Milk Drinks
Dahi
Butter Milk
0

10

Column3

12

14

16

18

20

Pg. 22

Product Offerings &Marketing Strategy

Product Offerings &Marketing Strategy

Brand Amul owned and managed by Gujarat Cooperative Milk Marketing Federation
(GCCMF) has 123 brands listed under its name. The Company positions itself as a
brand of both masses and classes, unlike competitors like Nestle. Amul's product
range includes milk powders, milk, butter, ghee, cheese, MastiDahi, Yoghurt,
Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulabjamuns, flavored
milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown
beverage just like bournvita and horlicks offering whey protein, DHA and essential
nutrients. In January 2006, Amul launched India's first sports drink Stamina, which
competes with Coca Cola's Powerade and PepsiCo's Gatorade.[22]
In order to maintain costs at lower levels, Amul India has never spent more than 1% of
its budget on advertising. However it has still been successful in creating the same
impact, it created 60 years ago through its simple yet appealing ad campaigns.
Talk about universally recognizable Brands grown in India, and one prominent
contender is the Amul mascot, a cute and chubby girl usually dressed in a polka dot.
Over its 45 years of existence, the brand has always given a fresh flavor to Amul
Mascot.
Amul Dairy Cooperatives, on the occasion of completing its 50 years of advertising,
launched a book called Amul India. Following the idea of thoughtful advertising, 35
years ago the brand created magic with its Merogaam Katha parey the title song of
national award winning film Manthan, which told the story of Amul model of cooperatives.
The Manthan music video has a unique emotional appeal. To recreate the magic, in
2012 brand came up with a fresh commercial with the lines like khushrahetera beta
beti in the new music video. It shows how the efforts of a rural milk producer take care
of nutritional requirements of a child of an urban mother.

Market Share

Pg. 23

Market Share
Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of
milk and dairy products, posted sales of Rs11,670 crore for the year ended March
2012, almost 55% more than Nestle Indias Rs7,541 crore sales.
Following are the market share figures for various Amul products:

88% market share in butter.

75 percent in cheese share market.
63% share in infant milk.
45% market share in dairy whitener.
26% share in the 25,000-crore packaged milk market.
Liquid milk contributes 40% to our revenues.
Butter, infant milk powder and dairy whitener bring 30% to revenues.

With expected growth rate of 20 percent, 12% growth rate can be attributed to price
rise and another 8 percent to rise in demand for dairy products.

Pg. 24

Future Growth Strategy

Future Growth Strategy

RS Sodhi, the new managing director of Gujarat Co-operative Milk Marketing
Federation, wants to convert Amul into a strong food brand by pushing newer product
categories. Amuls star products of the future would be fresh food including ice-cream,
beverages, paneer, milk (in tetra packs), and dahi and fresh-fruit lassi. Recently Amul
has focused largely upon capturing the branded tetra pack market with, variants that
would last for over 2 weeks to three months even without refrigeration. It would
continue to introduce products that would promote consumption of dairy products.
There is lot of scope in the dairy industry considering it is handling only 3% of the total
organized milk production of India. By 2020, it wants to procure 200 lakh liters of milk
every day, up from the current 92 lakh liters. The idea is to seek a three-fold jump in
turnover to 30,000 crore by 2020.
It also seeks to strengthen its logistics and distribution in the rural markets where
purchasing power is going up rapidly. Penetrating such markets with aspirational
products like cheese, butter and ice-cream and urban markets with daily-consumption
food items such as lassi, curd and paneer would further fortify its hold.
Such a multi-pronged strategy looks promising enough to reap high returns in the
future.

Segmentation

Pg. 25

Segmentation
AMUL

Market segmentation is dividing a broad market into subsets of consumers who

have common need which is full filled by our product.
Amul is considered a brand providing pure dairy products at a nominal price
and has followed traditional trends showing development of milk producers in
village which has always gone well with the matured population of the country
but it needs to cater to the demands of modern youth which is a big market for
them to capture.
Amul should target to make their packaging appealing to youth and should try
to make some products stylish so as to appeal to higher earning segment as
well. They can modify some products such as cheese with better packaging or
different shape to appeal to higher earning class

CHOCOLATES

CHOCOZOO should appeal to children below 10 years because of different

shapes and animal characters and is a cheap alternative to kinder joy which
would also appeal to parents for being easy on their pocket. Also Amul is
looked on as a sign of purity which is another reason to force parents to opt for
Amul chocolates. But repackaging is necessary to appeal to children as soon
as it becomes visible to them.
FUNDOO, Fruit n NUT should be promoted as their main chocolates but the
company needs to do a serious rethinking on their packaging and visibility of
the product. The target market should range from children to aged people
across the country. But the packaging and the naming does not look attractive
at all when compare to its competitors such as Nestle and Cadbury chocolates.

DAIRY PRODUCTS

Primary dairy products such as milk, butter, cheese are well segmented and
dairy products being necessity by each category in every part of the country.
They can target higher earning class for some of the products with better
packaging such as adding an extra layer of protection which would again
emphasize on Amul focusing on purity and goodness of a product.

Segmentation

Pg. 26
ICE-CREAMS

Amul should continue to target families with their family packs and continuously
come up with newer flavors to keep the customers engaged as Amul has a
strong hold on family packs segment.
Amul will have a difficult time to fight with retail ice cream parlors because
there are already a good number of players present such as Baskin Robbins,
Vadilal, Top n Town, Kwality walls etc. with good brand loyalty. Amul has come
up with their own chain of retail parlors which is a good idea and should
enhance their penetration of smaller packs of ice cream along with other
products as these parlors contain other products such as milk, cheese, butter
etc.

Positioning

Pg. 27

Positioning

Positioning is identifying and attempting to occupy a market niche for a brand,

product or service utilizing traditional marketing placement strategies. It is placing
the product in that part of the market where it will receive a favorable reception
compared to competing products.
Amul has positioned itself as Taste of India. It has created value for everyone in
the value chain, be it customers or farmers. Its USP has always been Quality with
affordability.
But Amul has dangerously stagnated in Indian consumer's psyche. While the
elderly connect to it emotionally, the brand lacks connect to draw the youth who
would decide the fate of all brands. The dull and conservative image associated
with Amul products have to be rubbed off the minds of the youth. They should
communicate with the new generation more aggressively than ever before.

Ice Creams
Amul's ice creams are made from milk fat and thus are ice creams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat.

The two main factors for Ice Cream purchaser is taste and availability. Amul Ice
creams are made of milk cream and available everywhere in the market because
of their market penetration
They should now try to concentrate variety factor and try and introduce new
flavors. This will also allow them to reach to new customers

Chocolates

Amul should take proper action in order to improve service, because although
being on a top slot in Butter and milk supplies it does not get the sales in
chocolate, which it should get
Amul should use brand ambassador which attracts each age segment
It should make use of its strong distribution structure to increase the width and
penetration of its chocolates in the urban as well as rural markets. It should
increase its visibility at retail points
It should launch chocolate in new attractive packing to change image of Amul
chocolate in consumers mind. The current packing is not in line with its
competitors. Instead it is very dull and obsolete. This is a major area on which it
can work and increase the visibility of the product

Positioning

Pg. 28

It should introduce sales promotion schemes like free weight, pranky, tattoo,
contest, free gifts etc.
It should increase its R&D spending to improve the quality & taste of its chocolates
as compared to its competitors
Once the above have been done, it should look at new avenues such as marketing
alliances with various portals for festive occasions and celebrations to offer
products, coming up with its own chocolate boutiques and other ways of
rejuvenating its brand

Repositioning of Amul Dairy Products:

Amul has come up with a campaign Eat milk with every meal. This campaign is
a part of Amuls efforts to re-position milk and make the entire range of Amul dairy
products trendy and appealing to all

Milk was earlier positioned as the Worlds original energy drink in earlier
campaigns. This campaign provides Amul with a unique opportunity to showcase
the goodness of the entire range of Amul products and make milk, in its various
forms, an integral part of every meal

Exhibits

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Exhibits

Exhibit 1

Exhibit 2

Exhibits

Pg. 30

Exhibit 3

Exhibit 4

Exhibits

Pg. 31

Exhibit 5

Exhibit 6

References

Pg. 32

References
http://www.economictimes.com
http://www.rediffnews.com
http://www.ukessays.com
http://www.wikipedia.org
http://www.academia.edu
http://www.business-standard.com
Marketing Management Philip Kotler