An

Assignment.
Of

Marketing Management Subject

On

“AMUL.”

Presented To,

Mr. Baxis Patel

A faculty member of
Vivekanand College for B.B.A.
Jahangirpura, Surat.

On 12th of October, 2007.

In a Partial Fulfillment of
Second Year B.B.A., Semester – III,
For Academic year 2007-2008.

Presented By:

Krishnakant P. Somani (55)

Jayesh B. Shiyani (54)
Dhaval G. Patel (26)
Chirag B. Patel (24)
Ashvin P. Patel (22)
 Index

Chapter No. Chapter Name Page No.

1 Introduction to Marketing. 3

2 Marketing Environment. 11

3 Product. 16

4 Price. 24

5 Place. 26

6 Promotion.

7 Customer Buying Process.

2
Chapter: 1

Introduction to Marketing

Meaning
Marketing is the process of dealing with identifying and
meeting human and social needs. The process of marketing is found everywhere
around us. Formally or informally, people and organizations are being engaged in
a vast number of activities which could be called as marketing.
Good marketing has become an increasingly vital ingredient for business
success. Shortly, we can define marketing as “The process of meeting needs
profitably.” So we can say that financial success of the company often depends on
the marketing ability of the company. Finance, operations, accounting, and other
business functions will not really matter if there is not sufficient demand for
products and services so the company can make a profit.
The companies are at the greatest risk are those that fail to carefully monitor
their customers and competitors and to continuously improve their value
offerings. They take a short term sales-driven view of their business and
ultimately, they fail to satisfy their stockholders, employees, suppliers, and their
channel partners. So we can say that skillful marketing is never ending pursuit.

Definition
Here there are different definitions given by different people are as follows:

“Marketing is a typical task of creating, promoting, and delivering goods and

services to consumer and business.”
Philip Kotler.

“Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stake holders.”
American Marketing Association.

“Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering, and freely exchanging products
and services of value with others.”
Social definition for marketing.

3
Marketing? What is Marketed?
Marketing people are involved in marketing ten types of entities.
They are as follows: Goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas.

Goods
Physical goods constitute the bulk and work of most countries’
production and marketing efforts. Many companies market their products which
are the mainstays of the company.
Amul Milk Co-operative Society., also markets its various milk products such as milk,
curd, cheese, butter, milk powder, sweets, ice-cream and various milk products.

Services
The intangible product provided by the company is known as services.
As economies advance, a growing proportion of their activities are focused on the
production of services. Services include the work of airlines, hotels, cyber-cafe, as
well as professionals including doctors, accountants, lawyers, management
consultants, etc,.
Amul Co. now-a-days also provides services of ice-cream cafe and parlours with
internet surfing facilities throughout India.

Experiences
While orchestrating several goods and services, a firm can create, stage,
and market experiences. For example amusement parks with different rides,
“theme restaurant”, etc,.
Amul Co. also provides experiences of different flavoured ice creams and sweets
of different famous regions.

Events
Marketers promote time-based events, such as trade shows, company
anniversaries. Global sporting events such as Olympics, world cup, different
contests of music, sports, acting, etc,.
Amul Co. also promotes this type of events such as “AMUL Star Voice Of India.”,
films on urban co-operative societies, national leaders such as “Sardar Patel.”

Person
Celebrity marketing is a major business. Today major film
stars and sports personalities have a personal manager which ties to a public
relation agency. This public relation agencies provides advice to them on personal
brand building.
Amul Co. does not markets any famous celebrities but it has started by new comic
ad or hoardings of “Shahrukh Khan with his perfect six pack abs.” and another of
“Dhoni & Indian team celebrates with World cup.”

4
Place
Places like cities, states, regions, and whole nations are being
marketed to attract customers in the form of tourists, investors, residential, etc,.
Even places like hospitals, hotels, ice-cream parlours, schools, etc,. can be
marketed.
Amul Co. also does marketing of its ice-cream parlours around the country.

Properties
Properties are intangible rights of ownership of either real property
or financial property. Properties are bought and sold, and this requires
marketing. Investment companies and banks are involved in marketing securities
to both institutional and individual investors.
Amul Co. also does marketing of its real properties at different places according
to the situation.

Organizations
Organizations actively work to build a strong, favourable, and
unique image in the mind of their target public (customers). Companies spend
money on corporate identity advertisements. Non-profit organizations use
marketing to boost their public images and to compete for audiences and funds.
Amul Co. The milk products company, puts out ads with the tag line “The Taste of
India.” Which created a good impact on the customers.

Information
Information can be produced and marketed as a product. This is
essentially what schools, universities, and coaching classes produce and
distribute to parents, students, public, and communities. The production,
packaging, and distribution of information is one of our society’s major
industries.
Amul Co. provides information of different types of cooking recipes to the public.

Ideas
Every market offering includes a basic idea. Products and
services are platforms for delivering some idea or benefit. Promotion for
encouraging family planning and discouraging smoking are ideas that fall in the
realm of social marketing.
Amul Co. organizes different contests, award ceremony for upcoming students,
different shows with innovative ideas.

Thus, these are the ten entities marketed by the marketing people.
These entities may be business for some companies or it may be just a part of the
programs of the company.

5
Markets

Traditionally, a market was a physical place where buyers and sellers gathered to
buy and sell goods. While now a days, economists describe a market as a
collection of buyers and sellers who transact over a particular product or product
class. Modern economies abound in such markets. On the basis of the
information there are five basic markets. Their connecting flows are shown in the
figure 1.1.

Raw materials Resources

Resource
Money markets Money

Taxes, Services,
goods money

Services,
money Taxes
Manufacturer Government Consumer
markets markets markets
Service
Taxes, goods s
Service, Taxes,
goods
money

Money Money
Intermediary
Goods and services markets Goods and services

FIG. 1.1. Structure of Flows in a Modern Exchange Economy.

From the above figure we can say that all the five basic markets are being
connected with each other with intermediary market. This process of connecting
flow of the work or trading of goods and services between the markets is followed
by every nations economies either it is developed or developing economy.

6
Process of the flow of activities carried out by the market in the “Amul Co.” is as
follows according to the figure 1.1.

Resource markets : it purchases labour from the consumer markets.

Manufacturer markets (Amul Co.) : It purchases raw materials, hires labours, and
takes money from the resources markets.

Intermediary markets : It purchases finished goods and services from the

manufacturer. This market consists of wholesalers, retailers, dealers, distributor,
small scale shopkeepers, etc.

Consumer markets : It is the main part of the market. It consists of all the
members of all the market which sells the labour for money and from it
purchases the goods and services.

Government markets : It plays an essential role in the market structure. It

acquires taxes from all the markets goods, services, raw materials, etc. and uses
this for to provide public services.

Process of flow in the market structure:

From the above figure 1.1
We can say that the resource market supplies raw materials, labours,
money, etc to the manufacturer. Amul Co. also purchases its raw materials from
the poultry farmers, dairy man, etc for the manufacturing or changing of goods
from milk to pasteurized milk, curd, ice creams, milk powder, cheese, butter,
ghee, paneer, sweet items, etc.
After manufacturing of the product is completed. Then it is being sold
to intermediary markets which changes with the type of product is. This
intermediary may be dairy shops, ice cream parlours, juice shops, hotels &
restaurants, etc.
After this process the intermediary sells the product to the consumer
who may be of many types. The customer may be a direct consumer who
purchases from the dairy shop for its house; the customer may be in the
restaurants for the consumption of the product in the form of milk, tea, coffee,
sweet item, curd, buttermilk, cheese, butter, etc.
The customer itself is the resource market because it includes whole
region or nation. They sell their products, labour, etc. and on behalf of that
money they get; they purchase the goods and services from the market.

So, this process is followed by each basic market structure of every nation’s
economy. From this we can say that the whole global economy consists of
complex interacting sets of markets linked through exchange processes.

7
CUSTOMER MARKETS

The market which purchases a type of product from a particular

product it is known as customer for the manufacturing company. There are four
types of customer markets.
FIG. 1.2. Classification of Consumer Markets.

Customer Markets

Non profit
Consumer Business Global &
Markets Markets Markets Governmen
t Markets

Consumer Markets
Companies selling mass consumer goods and services such as soft
drinks, stationeries, and air tickets, etc. spend a great deal of time trying to
establish a superior brand image. Much of a brand’s strength depends on
developing a superior product and packaging, ensuring its availability, and
backing with engaging communications and reliable service to achieve the
highest position in the targeted market.

Business Markets
Companies selling business goods and services often face well-trained
and well-informed professional buyers who are skilled in evaluating competitive
offerings. Business marketers must demonstrate how their products will help
these buyers. Advertising can play a role, but a stronger role may be played by the
sales force, price, and the company’s reputation for reliability and quality.

Global Market
Companies selling business goods and services in the global market
place face additional decisions and challenges. They must decide which countries
to enter; how to enter each country (for ex. As an exporter, licenser, joint venture,
contract manufacturer or solo manufacturer); how to adapt their product and
service features to each country; how to price their products in different
countries.

Non profit & Government Markets

Companies selling their goods and services to non profit
organizations or government agencies need to price carefully because these
organizations have limited purchasing power. So government purchasing, calls
for bids, with the lowest bid being favored, in the absence of extenuating factors.

8
Philosophy of orientations
Marketing activities should be carried out under a well thought-out
philosophy of efficiency, effectiveness, and social responsibility. The competing
concepts under which organizations conduct marketing activities include: the
production concept, product concept, selling concept, marketing concept, societal
marketing concept, marketing non-profit organization, and consumer
satisfaction.

The Production Concept

The production concept is one of the oldest concepts in the
business. It holds that consumers will prefer the products that are widely used or
available and inexpensive. In which managers of production oriented businesses
concentrate on achieving high production efficiency, low costs, and mass
distribution. This orientation makes importance in developing countries where
consumers are interested in products with current features and for the expansion
of the market of the company.

The Product Concept

The product concept holds that consumers will favor those
products that offer the most quality, performance, or innovative features.
Managers in this organization focus on making superior products and improving
them over time. They assume that buyers admire well made products and can
evaluate quality and performance.

The Selling Concept

The selling concept holds that consumers and business, if left
alone, will ordinarily not buy enough of the organization’s products. The
organization must, therefore, undertake an aggressive selling and promotion
efforts. It is assumed that the company has a whole capacity for effective selling
and promotion tools to generate more sales. The aim of most of the companies is
to sell what they make rather than what the market founds; it sometimes creates
higher risks for the company itself.

The Marketing Concept

In marketing concept instead of product centered “make and
sell” philosophy the entire focus shifted on customer centered “sense and
responds”. The job is not to find right customers for your product but the right
product for your customers. The marketing concept holds that the key to achieve
its organizational goals consist of the company being more effective than
competitors in creating, delivering, and communicating superior customer value
to each chosen target market. The marketing concept is built on four pillars:
target markets, customer’s needs, integrated marketing and profitability.

9
The Societal Marketing Concept
The societal marketing concept holds that the organizations task
is to determine the needs, wants, and interest of target markets and to deliver the
desired satisfaction more effectively and efficiently than competitors in such a
way that preserves consumers and societies well being. To build up social and
ethical consideration into their marketing practices many companies use societal
marketing concept; this increases an opportunity to enhance their corporate
reputation, raise brand awareness, and increase customer loyalty & press
coverage.

The Concept of Marketing Non-Profit Organization

More often non-profit organizations use the marketing concept
that their aim is to hold strong image in their target market and for which they
will generate enough funds for survival and to perform their day to day activities.
Their focus never remains on to make profit.

The Concept of Consumer Satisfaction

The consumer satisfaction concept holds that the task of the
organization is to satisfy the consumers by providing the goods and services in
the best possible manner. If the consumer is not satisfied by the service or the
type of product provided by the company then it will result into loss for the
company itself. So the primary function of the company is to make the consumer
satisfied.

10
Chapter: 2
Marketing Environment

Meaning
The environment in which the marketer operates; for the best
performance of the marketer in the company and the best performance of the
company in the competitive market. The marketing environment is based on four
different concepts. They are follows: concept of target, channels, competitions,
and public & consumers.

Concept of Target
The marketer can rarely satisfy everyone in a market. As the
taste and preferences of every customer is not same in a market. Therefore,
marketers start by dividing up the market into segments. They identify and
profile distinct groups of buyers who might prefer or require varying product and
service mixes by examining demographic, psychographic, and behavioural
differences among buyers. The marketer then decides which segments present
the greatest opportunity –which are its target markets.

Concept of Channel
To reach a target market smoothly without any hurdles, the
marketer uses three kind of marketing channels. These three channels are as
follows: communication channel, distribution channel, service channel.

Communication Channel
Through this channel marketers deliver and receive messages
from the target customers, and it includes newspapers, magazines, television,
radio, mail, telephone, outdoor publicity, CDs, audiotapes, and the Internet.

Distribution Channel
Through this channel marketer’s display, sell or deliver the
physical product or services to the buyer or user. They include distributers,
retailers, wholesalers, agents.

Service Channel
Through this channel marketers carry out transactions with
potential buyers. It includes banks, warehouses, transportation companies,
insurance companies, and other service providing companies, that facilitate
transactions.

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Concept of Competition
Competition includes all the actual and potential rival offerings
and substitutes that a buyer might consider. For an example any dairy shop is
direct competitor for Amul, but here the poultry farmer may also be a competitor
for the company for the product “milk” as it is also a substitute product for the
pasteurized milk. The competition in the market may be monopoly, oligopoly,
monopolistic, and competitive market.

Concept of Public
Population of the nation and outside of the nation from which
company can identify the target markets. It consists of potential buyers, current
users, influencers, decision makers, and general public.

Macro environments
Successful companies recognize and respond profitably to
unmet needs and trends of the customers. The macro environment forces
profoundly affect the fortunes of marketers. The different macro environments
affecting the marketers are as follows: social & cultural, economic, technological,
political & legal, and situational / physical environment.

Social & Cultural Environment

Society shapes the beliefs, values, and norms that largely
define these taste and preferences. People absorb, almost unconsciously, a world
view that defines their relationships to themselves, others, organizations, society,
nature, and to the universe.
Values, attitudes, and aspirations, of people vary across
different customer groups and regions. A survey conducted by Research
International in 2002 indicated significant regional differences in values,
attitudes and preference of women and classified Indian states into four clusters.
i) Traditionalism,
ii) Individualism,
iii) Westernization, and
iv) Habitualism.

Economic Environment
Marketers require purchasing power as well as people. The
available purchasing power in an economy depends on current income, prices,
savings, debt, and credit availability. Marketers must pay careful attention to
trends affecting purchasing power because they can have a strong impact on
business, especially for companies whose products are geared to high income and
price sensitive consumers.
Income distribution is very important to understand for
marketers to make more meaningful conclusions for arriving at specific
decisions.

12
Technological Environment
One of the most dramatic forces shaping people’s lives is
technology. Technology has released such wonders as penicillin, open heart
surgery, and the birth control pill. It has released such horrors as the hydrogen
bomb, nerve gas, and the submachine gin.
Every new technology is a force for “creative destruction”.
Audiotapes, videotapes business hurted by CDs & CD player business, newspaper
market being hurted by television markets. Instead of moving into the new
technologies many industries fought against or ignored them and their business
declined. The economic growth rate is affected by how many new technologies
are discovered. Today in booming economy every company tries to take an
advantage through more and more investment in Research & Development
department. The dairy business was developed by Amul; but without hurting any
small scale dairy’s market. By uniting all the small poultry farmers into a co-
operative company and then adopting latest technologies for increasing quality
and quantity of the milk products.

Political & Legal Environment

Marketing decisions are strongly affected by developments
in the political and legal environment. This environment is composed of laws,
government agencies, and pressure groups that influence and limit various
organizations and individuals. Sometimes these laws also create new
opportunities for business. Two major trends deal with the increase in business
legislation and the growth of special interest groups.

Increase in Business Legislation: Business Legislation has three main

purposes: to protect companies from unfair competition, to protect consumers
from unfair business practices, and to protect the society from unbridled business
behaviour. A major purpose of business legislation and enforcement is to charge
business with the social costs created by their products & production process. In
India it is compulsory to carry a green dot for pure vegetarian and red dot for non
vegetarian food products and also to print MRP (maximum retail price). This
concept is also followed by Amul in its packaging of the products which are
vegetarian.
Protecting the Welfare of Consumers: An important force affecting the
business is the consumerist movement – an organized movement by the citizens
and government to strengthen the rights & powers of consumers. In order to
protect the interests of consumers, the government of India passed a legislation
under the Consumer Protection Act, 1986. Six rights recognized for the
consumer’s.
• Safety: The right to be protected against the marketing of goods
& services that are hazardous to life and property.

• Information: To protect the consumers against unfair trade

practices, and the right to be informed about the quality, quantity, purity,
standard and price.

13
 • Choice: The right to choose a variety of products and services
at competitive prices.
• Representation: The right to be heard and be assured that the
consumer’s interests receive due considerations at appropriate forums.

• Redressal: The right to seek redressal against unfair and

restrictive trade practices, and unscrupulous exploitation of consumers.

• Consumer Education: The right to consumer education.

Consumers are informed by various channels of their rights and power in
the market.

Situational / Physical Environment

The environment of the marketer is also affected by
situations prevailing in the present time. The situations may be natural or man-
made. Some time it also gives opportunities for the development of business.
Some of the physical factors are as follows: Raw Material, Live Stock etc.

Raw Material: Changes in price of the raw material affects the physical
development of the business. The reduction or stopping the production of the raw
material may also affect the business as it have to stop the production for the
product produced from the particular raw material.

Live Stock: The stock or the quantity of the product produced affects the
business. If the quantity of the stock is high and the product fails or is banned in
the market then the company has to bear a great loss.

Nature of Product
The nature of the product is being classified on the basis of
the uses of the product, quality, durability, etc. It is classified into two groups:
Consumer Goods and Industrial Goods. The nature, use, durability, etc. changes
as the product is being classified. In Amul the main product is milk. It is also
classified into both ways as consumer goods and also as industrial goods.
As the milk is also directly consumed by the consumers and used by the
industries for further production of milk into curd, sweet items, milk powder,
butter, cheese, ghee, ice cream, cool flavored milk, brown beverages, etc.

Consumer Goods
In this the product’s nature is that the product is consumed
by the consumer. Consumer goods are meant for final consumption by the
consumers and not for sale. This product is purchased in the quantity only which

14
the consumer needs. The quality and price of the product is charged according to
the retailing markets. Consumer goods are of three types:

(a) Convenience Goods: Items, the consumer buys frequently,

immediately and with minimum shopping effort are convenience goods.
For instance, food items, etc. here for the consumer according to the
Amul ‘milk’, ‘curd’, ‘ice cream’, etc. are convenience goods.

(b) Shopping Goods: There are goods purchased by the consumers, only
after a careful comparison-suitability, quality, price, etc. For example
clothes, furniture, house hold appliances, etc. here for the consumer
according to the Amul ‘ice cream’, ‘flavored cool milk’, ‘brown beverages’,
etc. are shopping goods.

(c) Speciality Goods: These are goods with unique characteristics or brand
identification and the purchasers make a special purchasing effort, for
instance, fancy goods, special eating items etc. here for the consumer
according to the Amul ‘ice creams’, ‘sweet items’, ‘cool flavored drink’ etc.

Accordingly to durability or tangibility, products can be classified into three:

1. Non-durable goods, such as milk, curd, etc.
2. Durable goods, such as ghee, cheese, milk powder, brown beverages.
3. Services, such as hotels, ice-cream café’s provided by Amul.

Industrial Goods
Industrial goods are those which are used for further
production of goods or services, and include capital goods, raw materials,
component parts etc. these are used as input in producing other products. For
example the milk of Amul Company is used by itself and other sweet
manufacturers for further production of milk into curd, sweet items, butter,
cheese, ice cream, etc.
The quantity here purchased is high. So the price is some
how reduced by the company. But the quality is same as compared to the
consumer goods. There is only one or no agents to carry out trade between the
company and the industries.

15
Chapter: 3
Product

Meaning
The product represents a bundle of expectations of the
consumers. The product satisfies the needs of the society and consumers. A
successful product ensures its own promotion if satisfies the needs of the
consumers. The product may be tangible or intangible. It is classified on the basis
of tangibility and from it is classified on the base of many reasons such as class,
region, environment, fashion, style, taste, preferences etc.
A good product should be able to generate extra amount of
enthusiasm which is important to market organizations. It gives the marketer
independence in decision making. When an organization markets goods or
services, it should aim to enjoy ‘consumer satisfaction’ and ‘profit maximization’.
The product policy decisions based on the consumers demand is an important
factor in marketing the product successfully. The tangible form of product is
known as ‘Goods’, and the intangible form of product is known as ‘services’.

Definition of Product
“A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need.”

Product Line
A product line is a group of products that are closely related,
either because they function in a simple manner, or are sold to the same
customer groups, or are marketed through the same type of outlets, or fall within
given price ranges. A broad group of products, which are meant for essentially for
similar uses and possess reasonably similar physical characteristics, constitute a
product line. For example, a range of ice creams from Amul is it’s product line.
Product line of ice cream from Amul

• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
• Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)
16
 Product Line Decisions

Taking of decisions or changing the compositions of the

product line, by either adding or subtracting the products, depending on
number of factors: Consumer preference, the tactics of competitors, the firm’s
cost structure, changes in market demand, buying habits, marketing
influences, product influences, company objectives, product specialization,
and elimination of obsolete products.

Product Mix
A product mix is the set of all product lines and items that a
particular seller offers for sale to buyers. Product mix need not consist of
related products. It is a collection of products manufactured or distributed by
a firm. Product mix is also known as ‘Product Assortment’. It has four main
characteristics: Length, Width, Depth, and Consistency.

Product Mix of Amul Milk Co-operative

Breadspreads:

• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter

Cheese Range:

• Amul Pasteurized Processed Cheddar Cheese

• Amul Processed Cheese Spread
• Amul Pizza (Mozarella) Cheese
• Amul Shredded Pizza Cheese
• Amul Emmental Cheese
• Amul Gouda Cheese
• Amul Malai Paneer (cottage cheese)
• Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

• Amul Amrakhand
• Amul Mithaee Gulabjamuns
• Amul Mithaee Gulabjamun Mix
• Amul Mithaee Kulfi Mix Avsar Ladoos

17
UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk
• Amul Gold 4.5% fat Milk
• Amul Lite Slim-n-Trim Milk 0% fat milk
• Amul Shakti Toned Milk
• Amul Fresh Cream
• Amul Snowcap Softy Mix

Pure Ghee:

• Amul Pure Ghee

• Sagar Pure Ghee
• Amul Cow Ghee

Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)

• Amul Infant Milk Formula 2 ( 6 months above)
• Amulspray Infant Milk Food

Milk Powders:

• Amul Full Cream Milk Powder

• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk

Curd Products:

• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul Masti Dahi (fresh curd)

18
 • Amul Masti Spiced Butter Milk
• Amul Lassee

Amul Icecreams:

• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
• Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)

Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)
• Amul Kool Cafe

Health Beverage:

• Amul Shakti White Milk Food

Amul Milk Co-operative has 15 Product Lines.

Amul Milk Co-operative has 90 and more Products are sold.

Length (No. of Items) = 90 Items.

Width (No. of Lines) = 15 Product Lines.

Depth = 90/15 = 6.

19
Branding Strategy
Here the word ‘Branding Strategy’ means to make strategies to
create and increase brand awareness in the market, consumers, and society.
Branding is the practice of giving a specified name to a product or group of
products of one seller. Branding is the process of finding and fixing the means
of identifications. It is a process by which the product is branded.

Brand

American Marketing Association defined brand as, “The use of a

name, term, sign, symbol or design or a combination of these, to identify the
product of a certain seller from those of competitors”.

Types of Brand

1. Individual Brand: A firm may decide upon a policy of adopting

distinctive brands for each of its products.
2. Family Brand: The term family brand refers to one brand name
which a firm adopts for a variety of its products. For example Amul
Milk Co-operative for its Milk Products.
3. Company Brand: We may have for all products the name of the
company or the producer. When a firm manufactures many
products, then this type of brand is used.
4. Combination Device: Products have individual names and
company brands to indicate the firm producing them.
5. Private or Middle man’s Brand: Such brands are owned and
controlled by middlemen rather than manufacturers. Manufacturer
introduces his products under a distributor’s brand name.

Brand Equity
Brand Equity is the added value endowed to products and
services. This value may be reflected in how consumers think, feel, and act with
respect to the brand, as well as the prices, market share, and profitability that the
brand commands for the firm. Brand equity is an important intangible asset that
has psychological and financial value to the firm.
The premise of customer based brand equity models is that the
power of a brand lies in what customers have seen, read, heard, learned, thought,
and felt about the brand over time. In other words, the power of a brand lies in
the minds of existing or potential customers and what they have experienced
directly and indirectly about the brand.

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Packaging

The packaging of a consumer product is an important part of

the marketing plan. Packaging is the sub-division of the packing function of
marketing. Packaging means wrapping of goods before they are transported or
stored or delivered to a consumer.
It is being defined as follows: “An activity which is concerned
with protection, economy, convenience and promotional considerations.”

The growth of packaging

The following are the factors which influence the growth and
recognition of packaging as a marketing tool:
1. Self Service: In this the product is packed and kept ready for sale.
Packages attract the attention of the consumers. So, good package is
a must.
2. Consumer Affluence: Consumers are willing to pay a little more
for conveniences, appearance, dependability, and prestige for better
packages.
3. Company and Brand Image: To enjoy a distinctive attraction,
there must be a good brand and packaging.
4. Innovational Opportunity: Innovative packaging can bring
large benefits to consumers and profit to producers.

Labeling
Label is a part of product, which carries verbal information
about the product or the seller. It may be a part of package, or it may be a tag
attached directly to the product. The producer gives necessary information to the
consumers through the label. The act of attaching or tagging the labels is known
as labeling. Labels are of three types: Brand Label, Grade Label, and Descriptive
Label.
Functions of Labeling
It enables the producer to give clear instructions about the uses of product.
Price Variations are avoided by printing the price on labels.
Manufacturer-Buyer relation is established.
It encourages producer to make only standard products.
Buyers can easily identify the product.

Information on Label
Brand name
Address of the producer
Ingredients of product
Directions for the use
Precautionary measures
Nature of the product
Date of Packaging and Expiry
Maximum Retail Price (M.R.P.)
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Product Life Cycle
As everybody has life, a product also has its life. Industrial
goods may have longer life than consumer goods. When a product idea is
commercialized, the product enters into the market and competes with the rivals,
for making sales and earning profits. As there is life cycle term for living things,
same it is treated to product as product life cycle or product market life cycle.

FIG. 3.1. Product Life Cycle

As we can see that there are four stages in the life cycle of a product. Every
product moves through a life cycle, having four phases and they are as follows:
• Introduction
• Growth
• Maturity
• Decline

Introduction: This is the first stage in the life of the product. This is an infant
stage. The new product means “A product that opens up an entirely new market,
replaces an existing product, or significantly broadens the market for an existing
product.” The initial stage needs greater amount of investment for development.

Growth: The product satisfies the market. In this stage, a product gains
acceptance from the part of consumers and businessmen. Sales of product
increase. Profit also increases. This is the stage where competitors appear along
with the substitute products in large numbers. The success of firms depends upon
the efficient manufacturing and distributing systems of the product in the
market.

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Maturity: At this stage, keen competition increases. Sales continue to increase
for a while, but at a decreasing rate. Market expenses increase, even after mark
down prices, which enables to face competition. Thus, profit is thinned. Overall
marketing effectiveness becomes the key factors in this stage.

Decline: When sales start declining, buyers go for newer and better products.
This is because of changes in technologies, fashion, taste & preferences. At this
stage, the product cannot stand in the market; many firms withdrew from the
market, when sales and profit decrease. Price becomes the competitive weapon.
Sometime, the same product is introduced in new form according to the
technology, taste, preference, fashion.

Thus, it was a product’s life cycle. In Amul, there is no scope of decline in the
product’s life cycle because the products are of daily used by every one in the
market.

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Chapter: 4
Price

Meaning
Pricing assumes a significant role in the competitive economy.
Price is the main factor which affects the sales of a product and organization. A
good price policy is of great importance to the producers, wholesalers, retailers,
and the consumers. Marketers try to achieve their long run pricing objectives
through both price policies and price strategies. If the price is low the buyers will
increase; and if the price is high the buyers will decrease.
In early stages of men, prices were set by both sellers and
buyers after bargaining with each other. Now in the competitive economy,
development of large business aims to have one price policy. In certain cases, the
buyer looks at the price as an indicator of product quality. The buyer believes that
high price high quality; and low price low quality.
Prices play an important role in the economy. The time within
which the product is sold varies. The goods, which are of a perishable nature and
frequent changes of style, may not be stocked for a long time. In the case for
durable goods, they can be stocked for a longer period of time, in the hope of
getting favorable price rise. Holding the stock depends upon the financial
resources of business organization and the perishability of the goods.

Definition of Price
Price is the exchange value of goods and services in terms of money.

Price of a product or service is what the seller feels it worth, in terms

of money, to the buyer.

FIG .4.1. Reasons for which you pay a price

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Pricing Objectives
To perform the marketing job efficiently, the management has
to set goals first. Pricing objectives are logically related to the company’s overall
goal or objectives.

Pricing for Target Returns

Business needs capital, i.e., investment in the shape of various
types of assets and working capital. When a businessman invests capital in the
business, he calculates the probable return on his investment. A certain rate of
return on investment is aimed. Then, the price is fixed accordingly. The price
includes the predetermined average return. This is seller oriented policy.

Market Share
The target share of the market and the expected volume of the
sales are the most important considerations in pricing the products. Some
companies adopt the main pricing objective so as to maintain or to improve the
market share towards the product. A good market share is the better indication of
progress. For this, the firm may lower the price, in comparison to the rival
products, with a view to capture the market.

To meet or prevent the competition

The pricing objective may be to meet or prevent competition.
While fixing the price, the price of similar products, produced by other firms, will
have to be considered. One has to look the prices of rival products and the
existing competition and chalk out proper price policy so as to enable to face the
competitions in the market.

Profit maximization
Profit earning is the basic goal of a firm. Profit maximization
can be enjoyed where monopolistic situation exists. The goal should be to
maximize profits on total output, rather than on every item.

Stabilize Price
The prices are designed in such a way that during the period of
depression, the prices are not allowed to fall below a certain level and in the
boom period, the prices are not allowed to rise beyond a certain level. Thus firms
forego maximum profits during periods of short supply products.

Customers’ ability to Pay

The prices that are charged differ from person to person,
according to his capacity to pay.

Resource Mobilization
The products are priced in such a way that sufficient resources
are made available for the firms’ expansion, developmental investment etc.

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Chapter: 5
Place

Meaning
According to American Marketing Association “A channel of
distribution of marketing channel is the structure of intra company organization
units and extra company agents and dealers, wholesalers through which a
commodity or product (goods & services) is marketed.”

According to Richard M. Clavell “A channel is the pipe line

through which a product flows on its way to the consumer the manufacturers put
their products into the pipeline or marketing channel and various marketing
people move it along to the consumer at the other end of the channel.”

Channels of Distribution Networks

The functions of distribution network or channel of distribution
are as follows:

Research
The companies carry on a research in the market for collecting
information from the consumers for marketing the product or taking the
response for the product.

Promotion
To promote the sales by advertising, increasing commission,
providing short term incentives, and free gifts, etc to encourage the trial or
purchase of products and services.

Contact
To acquire information from top level of management to
bottom level of management, intermediaries, and customers for the delivery of
goods and services to the consumers

Matching
To match the quality, features, demand, and sales of the
product with that of the rival competitors in the prevailing market.

Negotiating
To marking out the middlemen from the distribution channel
for decreasing or reducing the price of the product. In this the middlemen kept
are in limited numbers or very less.

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Physical Distribution
To carry out the physical product or material service to the
customer or consumer directly or indirectly through dealers, wholesalers,
retailers.

Finance
To acquire finance from the market in the form of loans,
mortgaging properties, cash credit from banks, advances, acquiring fund from
the markets, societies, families, etc.

Risk Taking
To becoming aware of future risks and uncertainties which
may occur in future. So the company tries to take decisions to avoid such type of
risks. Or take decisions for less risk channels.

Level of channels of distribution

There are four level of channel of distribution in the market.
They are as follows: zero level, one level, two level, and three level.

Zero level
In this level the marketer uses the way of direct contact with
the consumer for the marketing of the product. There are no intermediaries such
as distributors, wholesalers, retailers in between the company and the consumer.
In Amul, there are small dairy shops or cafe where the consumer can buy its
products directly from the company.

Advantages
1. It takes lower time to supply the product.
2. The cost of the product is reduced with intermediaries.
3. Target market decreases with the intermediaries.
4. With increase in profit. It gives direct satisfaction.

Disadvantages
1. There is no increase in the market.
2. Due to lack of intermediaries the market could not be expanded.
3. Profit of the company is limited or stabilized.
4. Could not know about the strategies & features of the company.

One level
In this level there is only one intermediary for the marketing
of or selling the product of the company to the consumer at a limited percent of
profit. This intermediary is known as retailer.
In Amul, the firm distributes the milk, curd and buttermilk packets to the
different dairy stores for the sales of the product to the consumers at a specific
rate printed on the packets of the milk.

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Two levels
In this level there are two intermediaries through which the
product passes on to the consumers. In this level the two intermediaries are
distributors and retailers. The price of the product is printed on the packaging
after calculating the profit share of the distributor and retailer.
In Amul, the firm distributes butter, cheese, chocolates, brown beverages, etc to
the distributor who then supplies to the retailer. At last the consumer buys the
product from the retailer for the final consumption.

Three levels
In this level there are three intermediaries through which the
product passes on to the consumers. The intermediaries are distributor,
wholesalers, and retailers. The price of the product is printed on the packaging
after calculating the profit share of the distributor, wholesalers and retailers.
In Amul, the firm distributes sweets, brown beverages, cool flavored milk, ghee,
chocolates, etc to the distributor who supplies to wholesalers in different regions.
Retailers purchase from wholesalers and sell to consumer for the consumption of
product.

FIG .5.1. Consumer and Industrial Marketing channels

Thus, Amul milk co-operative, has adopted all the four levels of distribution
channels according to the type and nature of the product. Amul, itself has
different wholesalers and retailers for sweets, brown beverages, milk powder, etc.
and it also has its own distribution channels which supplies milk, curd, flavored
milk, butter, cheese, etc to supply to the consumers through retailers. It has its
own parlours where it sells its products directly to consumers. So, Amul milk co-
operative, has adopted all the four levels of channels of distribution.

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Intermediaries
The intermediaries are those marketing people who markets
or sells the product of a company to the lower level of the market which may be of
retailers or directly the consumers. The intermediary group consists of
wholesalers and retailers. These intermediaries provide services to the customers
and companies. They are being paid money on behalf of providing services to
company and consumers.

Wholesaling
Wholesaling includes all the activities involved in selling
goods or services to those who buy for business use or resale to consumers.
Wholesalers are also called as distributors. Wholesaling excludes manufacturers
because they are primarily engaged in production, and it excludes retailers.
Wholesalers differ from retailers because they pay less attention to promotion,
atmosphere, and location as they deal with business customers for large
transactions with larger trade area than retailers.

Functions performed by Wholesaling

• Selling and promoting

Wholesalers’ sales force help manufacturers reach many
small business small business customers at a relatively low cost. Wholesalers
have more contacts, and often buyers trust wholesalers more than they trust a
distant manufacturer.

• Buying & Assortment Building

Wholesalers are able to select items and build the
assortments their customer need, saving the customers considerable work.

• Bulk Breaking
Wholesalers achieve savings for their customers through
buying in large carload lots and breaking the bulk into smaller units.

• Warehousing
Wholesalers hold inventories, thereby reducing inventory
costs and risks to suppliers and customers.

• Transportation
Wholesalers can often provide quicker delivery to buyers
because they are closer to buyers.

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 • Financing
Wholesalers finance customers by granting credit, and
finance suppliers by ordering early and paying bills on time.

• Risk Bearing
Wholesalers absorb some risk by taking title and bearing the
cost of theft, damage, spoilage, and obsolescence.

• Market Information
Wholesalers supply information to suppliers and customers
regarding competitors’ activities, new products, price developments, and so
on.

• Management services & counseling

Wholesalers often help retailers improve their operations by
training sales clerks, helping the store layouts and displays, and setting up
accounting and inventory control-systems. They may help industrial
customers by offering training and technical services.

Retailing
Retailing includes all the activities involved in selling goods
or services directly to final consumers for personal, non business use. A retailer
or retail store is any business enterprise whose sales volume comes primarily
from retailing. Any organization selling goods or services to final consumers –
whether it is a manufacturer, wholesaler, or retailer – is doing retailing.

Functions performed by Retailing

Retailers can position themselves as offerings one of the four
levels of services.

• Self-service
Self service is the cornerstone of all discount operations.
Many customers are willing to carry out their own locate-compare-select
process to save money.

• Self-selection
Customers find goods on their own or by self in the store,
although they can ask for assistance.

• Limited Service
These retailers carry more shopping goods, and customers
need more information and assistance.

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 • Full service
Sales people are ready to assist in every phase of the locate-
compare-select process. Customers who like to be waited on prefer this type of
store. The high staffing cost, along with the higher proportion of specialty
goods and slower-moving items and the many services, results in high cost
retailing.

By combining two service levels (low & high) and two

assortment-breadth levels (narrow & broad), we can distinguish the four broad
positioning strategies available to retailers.

Thus, these are the two intermediaries, “Wholesaling” and “Retailing” which
provides service to the manufacturer by selling its products to the customers &
consumers, and to the customers & consumers for providing them products
according to their demands to the intermediaries. With these they also bear risks
but with this they maintain good relationships with both “Manufacturers” and
“Customers & Consumers”. This creates their importance in the market. Although
the manufacturer has capacity to sell the product and the consumer has the
capacity to buy from the manufacturer; but both give more importance to the
intermediaries as they have more trust on them.

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Chapter: 6
Promotion

Meaning
Promotion activities are means by which firms attempt to
inform, persuade, and remind consumers--directly or indirectly--about the
products and brand that they sell. Promotion is also known as marketing
communication. Marketing communication perform several functions for
consumers. Consumers can be told or shown how or why a product is used, by
what kind of person, and where and when; consumers can learn about who
makes the product and the company and brand stand for; and they can be given
an incentive or reward for trial or usage.
In a sense, marketing communications represents the “voice”
of the brand and are a means by which it can establish a dialogue and build
relationships with consumers. Marketing communications allow companies to
link their brands to other people, places, events, brands, experience, feelings, and
things. It can also contribute to brand equity by establishing the brand in
memory and crafting a brand image.

Marketing Communications Mix

The marketing communications mix consists of six major
modes of communication:

Advertising
Any paid form of non personal presentation and promotion
of ideas, goods, or services by an identified sponsor or producer.

Sales Promotion
A variety of short-term incentives to encourage trial or
purchase of a product or service.

Events and Experience

Company sponsored activities and programs designed to
create daily or special brand related interactions.

Public Relations and Publicity

A variety of programs designed to promote or protect a
company’s image or its individual products.

Direct Marketing
Use of mail, telephone, fax, e-mail, or internet to
communicate directly with or solicit response or dialogue from specific customers
and prospects.

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Personal Selling
Face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations, answering questions, and
procuring orders.

Tools used for marketing communication

Advertisement
• Print and broad casting ads
• Packaging outer
• Packaging inserts
• Motion pictures
• Brochures and booklets
• Posters and leaflets
• Directories
• Reprints of ads
• Billboards
• Display signs
• Point of purchase displays
• Audio visual material
• Symbols and logos
• Video tapes

Events & Experience

• Sports
• Entertainment
• Festivals
• Arts
• Causes
• Factory Tours
• Company Museums
• Street Activities

Public Relations
• Press kits
• Speeches
• Seminars
• Annual Reports
• Charitable Donations
• Publications
• Community Relations
• Lobbying
• Identity Media
• Company Magazines
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Personal Selling
• Sales Presentations
• Sales Meeting
• Incentive Programs
• Samples
• Fairs and Trade shows

Direct Marketing
• Catalogs
• Mailings
• Telemarketing
• Electronic Shopping
• TV Shopping
• Fax mail
• E-mail
• Voice mail

Here, Amul milk Co-operative has adopted many tools from above mentioned
one. It has done advertisement through print media, electronic media, billboards,
audio-visuals, logos. It also produced many films and is now in current period it
is been financing “STAR AMUL VOICE OF INDIA” an singing contest on Star
Plus Channel.

So, Amul selects almost maximum tools of promotion to promote its product into
the market.

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