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SMOT School Of

Business
Chennai
www . smot . edu . i, INDIA
n
SO LET’s SWITCH ON OUR

A N D T.V.
S TA R T
OUR JOURNEY
OF
BUSINESS SCHOOL, CHENNAI PROGRAM -MENU

Channel 1 – Birth of Amul


Channel 2 – The Amul Man

Channel 3 -- How Did T he Amul Brand Become W hat


It Is?
Channel 4 -- Album
Channel 19- Some Product’s info. of Amul (cont….)
Channel 5 -- Anand Milk Union Limited

Channel 6 – Factory To Manufacture Milk Powder


Channel 7– GCMMF Channel 20- Amul Recall’s Us

Channel 8 – Dair y Cooperative


Channel 9 – The Cubby Butter Girl, Speaks
Str ucture
Channel 10 - Album

Channel 11- Customer Centric Amul

Channel 12- Product Profile


Channel 13- Market Share TIMER- It’s Time To Switch Off
Channel 14- Market Position

Channel 15- Highlights of Amul


Channel 16- Highlights of Amul (cont…)

Channel 17- Highlights of Amul (cont…)

Channel 18- Some Product’s info. of Amul

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BUSINESS SCHOOL, CHENNAI Channel 1

BIRTH OF

Type Co-operative
Founded in 1946
Headquaters Anand, Gujarat, India
Industry Dairy
Key people Chairman, GCMMF
Products Milk and Related
products
Revenue $1 billion
Employee 2.6 million milk
producer
Slogan The Taste of India
• PRESENTED BY
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BUSINESS SCHOOL, CHENNAI Channel 2

THE
MAN
Dr . Verghese
MENU VOLUME
Kurien
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MANUJ ARORA
BUSINESS SCHOOL, CHENNAI Channel 3

How Did
The
Brand Become What It Is?
Amul’s birth is indelibly linked to the freedom movement in
India.
Sardar Vallabhbhai Patel who said that if the farmers of India
are to get economic freedom then they must get out of the
clutches of the ‘middlemen’.
Amul cooperative was the result of a farmers’ meeting in
Samarkha (Kaira district, Gujarat) called by Morarji Desai under
the advice from Sardar Vallabhbhai Patel, to fight rapacious
milk contractors.
OUTCOME :In 1946 Karia District Cooperative Milk Producers’
Union Ltd.

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Intial Collection of 250 Formation of


liters of milk Karia District
Cooperative Milk
Producers ’ Union Ltd .

INAUGURATION OF
DAIRY .

Pandit Jawaharlal Nehru , Indira Gandhi ,


Morarji Desai and others at the inauguration
of Amul Dairy .
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Stand’s For : ANAND MILK UNION LIMITED

The brand name AMUL, from the Sanskrit Amoolya, meaning


priceless, was
suggested by a quality control expert in Anand.

It began with two village cooperatives and 250 liters of milk


per day, nothing but a trickle compared to the flood it has
become today.
The first products with the Amul brand name were
launched in 1955.
Amul has an annual turnover of Rs.52554mn in the year 2007-08,
also having 13 district cooperative milk producer’s union
members.
Amul having 13141 cooperative societies who supply
milk to the
dairy
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With the financial help from UNICEF, assistance from the govt. of New
Zealand under the Colombo plan, of Rs. 50 millions for FACTORY TO
MANUFACTURE MILK POWDER AND BUTTER was planned. Dr . Rajendra Prasad,
the president of India laid the foundation on
November 15 , 1954.

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Gujarat Co-operative Milk Marketing Federation (GCMMF) was
formed in 1973.
GCMMF is India’s largest food products marketing organisation.
12 district co-operative milk producers’ union.
2.5 million producer members.

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NDDB / NCDFI

FEDERATION FEDERATION
GCMMF in other
states

UNIONS
& 13 Other
District Level

VILLAGE SOCIETIES
10 , 411 Village DAIRY COOPERATIVE STRUCTURE
level Milk &
Collection Details For State Of Gujara
Centers
INDIVIDUAL MILK
PRODUCERS2 . 12 million
Milk Farmers

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I am baby “the cubby butter girl”, people call me


MOPPET

I was born in the year 1976.

Sylvester deChuna was my creative father, managing director of


the advertising agency.

Before I was born their was Polson butter girl, the village belle
& then my creative father created me “ the cubby butter girl ”

The first word which I spoke when I was born is “ Utterly ,


Butterly , Delicious “

People say that I am Friday to Friday star, because every


Friday people see on me
on hoarding with Ad of Amul but related to current topic.

Now
Its my time I’ll tell
about
myself

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First plant is at ANAND,


which engaged in the
manufacturing of milk, butter,
ghee, milk powder, flavored milk
and buttermilk.

Second plant is at MOGAR,


which engaged in manufacturing
chocolate, nutramul, Amul
Ganthia
and Amul lite.

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CUSTOMER CENTRIC
-
At the time AMUL was formed, the vast majority of consumers had
limited purchasing power.

Customer was value conscious with very low levels of


consumption of milk and other dairy products.

AMUL adopted a low price strategy to make their products


affordable and guarantee value to the consumer.

The success of this strategy is well recognized and remains the


main plank of AMUL's strategy even today.

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BUSINESS SCHOOL, CHENNAI Channel 12
Product Profile Of Amul
Product Category Products
Amul Butter
Bread Spreads Amul Lite
Delicious Table Margarine
Amul Fresh Milk
Powdered Milk Amul Taaza Double Toned Milk
Amul Fresh Cream
Amul Cool Flavoured Bottled Milk
Amul Shakti Toned Milk
Amul Gold Milk
Amul Lite Slim and Trim Milk
Amul Kool Chocolate Milk
Amul Kool Flavoured Tetra Pack
Amul Masti Spiced Buttermilk
Amul Pasteurised processed cheese
Cheese Amul Emmental Cheese
Gouda cheese
Amul Cheese Spread
Amul Pizza Mozzarella Cheese
Amul Sagar Pure Ghee
For Cooking Amul Malai Paneer
Mithai Mate
Cooking Butter
Utterly Delicious Pizza
Masti Dahi
Amul Ice Cream
Desserts Amul Mithai Gulab Jamuns
Amul Chocolates
Amul Basundi
Amul Shrikhand
Gulab Jamun Mix
Amul Lassee
Nutramul
Health Drinks Amul Shakti Health Food Drink
Stamina

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MARKET SHARE OF PRODUCT


Market Market
Share Position
Amul Butter 85% 1

Milk powder 60% 1

Toned Milk 65% 1

Dahi 60% 1

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Market Market
Share Position
Flavoured Milk 55% 2

Ice Creams 25% 2

Cheese % 1

Ghee 8% 2

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SOME HIGHLIGHTS
OF
Amul Turnover Of 4300 Crore (2006-07)

Four Decades To Become Rs 2000 Crore Entity But, The


Turnover

Doubled To Over Rs 4300 Crore Within 9 Years From 1999


To 2007

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HIGHLIGHTS OF ( Cont ..)

Mr. Parthi Bhatol is the present Chairman of GCMMF with effect


from 10th Aug 2006.

Spurred the White Revolution of India, which has made India the
largest producer of milk & milk products in the world.

Business Model : Every day Amul collects 7 million litres of


milk from 2.6 million farmers ( many illiterate), converts the
milk into branded , packaged products to over 500,000 retail
store.

Amul is the largest milk brand in Asia marketing more than 30


different brands of dairy products.

Defending against names like Mahananda, Vijay, Milma & other co-
operative milk brands.

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HIGHLIGHTS OF ( Cont ..)

Striking Out On Its Own, With Amul Outlets Or Parlours To


Deliver Consumers Total Brand Experience.

Launched In 2002 , There Are Now 400 Amul ParloursAcross The


Country, Which Contributed 3% To The Brand’s Total Turnover
Last Year.

Below – The – Line Activity Has Grown Too-such As The Amul Food
Festival , Which Has Been Held For The Last Four Year Between
October & December In About 50,000 Retail Outlets.

The Chef Of India Promo Invites Hotel Chefs To Come Up With


Recipes Using As Many Amul Products As Possible , & Is
Conducted At City, State & National Level.

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One Of The Most Conservative FMCG Entities Gcmmf- Spends A Mere 1% Of


Its Turnover On Promotions.

Amul Butter Girl Is One Of The Longest Run Ad Campaigns In The Country
For 41 Years.

SOME PRODUCT’S INFO. OF


Amul Milk
Amulis planning to expand their processing & packaging
capacity to meet growing demands eg: Delhi & Mumbai

Amul is selling its packaged milk brands on the Net too.

Amul Butter
Cash Cow in product portfolio
Primary position as far as butter is concerned with a
market share of more than 86 %.

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SOME PRODUCT’S INFO. OF (Cont..)

Amul Cheese
Variants
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza ( Mozarella) Cheese.

Amul as a brand investing a lot of resources in cheese because it has


to defend its position from the various attacks of its close
competitor Britannia & hence attacks itself by introducing new
variants in the cheese segment.

Amul ice creams


24.75 % share in the rs 525 croreIndian market, mother dairy
share of 8.66% & the market leader HUL – kwality walls with
28.22%

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GET ’ s US RECALL
Milk

Butter

Dr . Verghese Kurien

Co - operative Society

Utterly buttelry
Delicious Amul

The Taste of India

ME ALSO

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BUSINESS SCHOOL, CHENNAI TIMER

TIMER - ITS TIME TO SWITCH OFF


OUR T . V .

Bye !!!!!

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THANK
YOU
SO LET’s AGAIN SWITCH
ON OUR
T.V.
TO SEE

BRAND PRISM
BUSINESS SCHOOL, CHENNAI PROGRAM -MENU

Channel 1 – Kapferer’s Prism

Channel 2 – Brand having a Physical Quality

Channel 3 -- Brand having a


personality
Channel 4 - Brand is a relationship

Channel 5 -- Brand having its

culture
Channel 6 – Brand is a

Channel
reflection7– Brand having its self

Channel
ima ge 8 – Complete Brand
Channel
Prism 9 – Aaker’s Framework

Channel 10 – Brand as :-- Product

Organisation

Person

Symbol
TIMER- It’s Time To Switch Off

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BUSINESS SCHOOL, CHENNAI Channel 1

PICTURE OF SENDER
Pe
s r
na so
y
Ph ue li
t
iq y
onship
Relati

Cult
EXTERNAL

INTERNAL
ure
Re f -
f
ct le l e
io e
S ag
n Im
PICTURE OF RECEIVER
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BUSINESS SCHOOL, CHENNAI Channel 2
Brand having
a Physical Quality
A brand has physical qualities. It is made up of a combination of either
salient objective features or emerging ones. The brands physical
characters are both the backbone and its tangible added value.

Taste
s i
h y
P ue Qualit
q y
Amul
Girl
Print
Adback
(at the of amul butter pack)

Physique
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BUSINESS SCHOOL, CHENNAI Channel 3
Brand
having a personality
A brand has a personality of its own. By communicating, it gradually
builds up the character. The way in which it speaks of its products or
services shows what kind of person it would be if it were human being.
This is also called the personification of the brand and this helps in
the instant product alignment with the target customers.

i Pe
y s n rso
Ph ue ali Simpl
q y t e
India
n
Utterly
ButterlyGirl
Dr. Verghese Kurien

Personality
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BUSINESS SCHOOL, CHENNAI Channel 4
Brand
is a relationship
Brands are often at the crux of transactions and exchanges between
people. This is particularly true of brands in the service sector and
also in retails. Service is by definition is a relationship.

i Pe
y s n rso Sociabl
Ph ue ali e
q y t Carin
g
ionsh
Relat

Trustwort
ip

hy
Money’s Worth

Relationship
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BUSINESS SCHOOL, CHENNAI Channel 5
Brand
having its culture
The brand has its own culture, from which every product derives. The
product is not only a concrete representation of this culture, but also a
means of communication. Here the culture means a set of values feeding
the brand's inspiration. The cultural facets refer to the basic
principles governing the brand in its outward signs like products and
communication. This essential aspect is at the core of the brand.

i Pe
y s n rso
Ph ue ali Sociabl
q y t e

Cultu
ionsh
Relat

Co-operative
re
ip

Society
Sharing &
Caring

Culture
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BUSINESS SCHOOL, CHENNAI Channel 6

Brand is a reflection
Reflection is basically what the target customer thinks and perceives the
product to be. This also helps to understand the utility derived by the
customer. The process of reflection helps to understand the tacit or
unexpressed desires by the consumers. The reflection is a strong factor for
a good and strong brand image. That is the reason why the companies should
control the reflection and should try to make it better.

i Pe
y s n rso
Ph ue ali The Taste Of
q y t India

Cultu
ionsh
Relat

re Value
o n t Oriented
i ec
f l
e R
Reflection
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Brand having its self image


A brand speaks of our self image. If the reflection is directed towards
the external customers then the self image is directed towards the
internal customers. Through our attitude towards certain brands, we indeed
develop a certain type of inner relationship with ourselves and the brand
image that we want to project. Thus this is of importance as is reflects
what's the organization and its attitude are towards the product and the
Pe
brand as a whole.
i
y s n rso Proud
Ph ue ali Indian
q y t
Family

Cultu
ionsh
Relat

Brand
re
ip

o n t Fun
Loving
i ec
l
l f
Se age
e f
R
- i m Self - image
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Now We Will See The Same Thing Thru

Aaker’s Framework

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Brand As Product Brand As Organisation

Family Brand Quality Focused


Taste Farmer ’ s Company
Money ’ s Worth Initiator Of Co -
operative Society

Amul Girl

Amusing Amul Hoarding ’ s

Dr . Verghese Kurien
Amul Print Ad behind butter pack

Brand As Person Brand As Symbol

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BUSINESS SCHOOL, CHENNAI TIMER

TIMER - ITS TIME TO SWITCH OFF


OUR T . V .

Bye !!!!!

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THANK
YOU
WELCOME BACK
NOW WE WILL WATCH BRAND EQUITY REPORT
OF
AMUL
&
OTHER DAIRY BRANDS
SCHOOL OF BUSINESS, CHENNAI

What is Brand
Equity

A brand is a name or symbol used to identify the source of a product. When


developing a new product, branding is an important decision. The brand add
significant value when it is well recognized and has positive associations in
the mind of the consumer. This concept is referred to as BRAND EQUITY

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SAMPLE SIZE: 40

The age taken into for the survey are major group

All are 18 & above, so to get a well judged response.

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The well proportionate number of male female ratio is taken because it is


very necessary for any survey to take at least to some extent the equal
number of male & female because nowadays the both play a major role in
decision making , if this is not done then survey may be one sided.
In this survey 22 males & 18 females were considered.

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The sample was divided into three segments based on the


educational qualification of the respondents – School, Under
Graduation and Post Graduation.

40% of the respondents were Post Graduates, 45% were Under


Graduates while the remaining 15% of the respondents were
school students.

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The respondents chosen for the survey included 37%


students, 40% employed as well as 23% self-employed
people. This segmentation was done in order to get varied
responses from the respondents to facilitate better
results for the Brand Equity Survey.

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BRAND AWARENESS
Extent to which a brand is recognized by potential customers, and is
correctly associated with a particular product. Expressed usually as
a percentage of target market, brand awareness is the primary goal of advertising in
the early months or years of a product's introduction.

Q ) Are you aware of the following brands ?

BRANDS Brand Awareness Points Scored


(Maximum 400 points)
Mother Dairy 350
Amul 400
Nilgri 300
Heritage 240
Aavin 230
Britannia 360

It was observed that all the respondents were aware of


the brand Amul. However in case of every other brands at
least 50% of respondent were aware & 100 % were
aware about Amul .

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BRAND FAMILIARITY
How good is the brand or how bad is the brand can only be judged once the consumer use the
product of a that particular brand, the familiarity is whether the customer has use the product
personally or not.

Q ) Have you used these brands?


The survey reveals that most of the people who are
aware about Amul had used/using that brand of
product.

In case of Nilgri brand 30 people are aware of


that brand but only 18 had used/using that brand ,
but in case of Aavin only 23 people are aware of
that brand but 19 are using it reveals the clear
picture that getting awareness among the people is
not brand is what all about but the product get
used by the no. people among the aware people is
more important.

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BRAND SATISFACTION
Satisfaction from the product is must, if a consumer is not satisfied with a particular brand of
product he/she will not purchase that product again or reduce the frequency of purchase of that
particular brand .

Satisfaction here means the “Maximum utility factor”

Q) Please rate on your basis of satisfaction level from


the brand you used, on scale of 1 to 10

We can observe from pie chart that 27% of the consumer


were satisfied with the Amuli.e. score of 326 out of
370 .Whereas though Aavin according to pie-chart has
15% but has got score of 176 out of 190.

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REASONABLY- PRICED
The price is one of the important factor which effects in decision making process of consumer &
which reflects in the consumer buying decision.

Priced should make feel the consumer that the particular brand of product is “Value for Money”

This is major concern that whether consumer will get familiar with the brand of product or not.

Q ) Do you think that below mention brands are


reasonably price, according to quality they
offer?

Overall respondent who are familiar with the brands &


their product , 28% for Amul and 23 % for
Britannia are of the view that these are the only two
brands that are reasonably priced for the quality
offered while 11% of the respondents vote for
Heritage, 12% each for Nilgri & Mother Dairy and 14%
Aavin.

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BRAND
LOYALTY
Brand loyalty is the consumer's commitment to repurchase or otherwise continue using
the brand and can be demonstrated by repeated buying of a product or service or other positive
behaviors such as word of mouth advocacy.

Creating customer loyalty is neither strategic or tactic; rather, it is the ultimate objective &
meaning of brand equity. Brand loyalty is Brand Equity.

Q) If this brand is not available in the store, will you seek the brand in
another store or will you switch to another brand?

Brand Equity Measurement survey Amulenjoys the


maximum loyalty with 29 % , then Britannia with 26
% & then with 15% Aavin. Heritage & Nilgri’s
enjoys the same pecentage of loyalty but are the
lowest on the loyalty scale i.e. 8%

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PRICE PREMIUM
It is the price of the product, when a company realize that its product is
very well placed in the market , & there is huge demand for product company
demand for extra price this % of increase in price is called price premium.

Q) Will you be interested in buying the following brands if their price is marginally
increased by .60paise to 1.50 paise?

The survey reveals that 26% of the


respondents from the entire sample would
prefer buying the leading brand of dairy
products, Amul even if its price is
marginally increased by .60 paise to 1.50
paise.

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PRODUCT QUALITY
It is all about how the product is , what so ever it may be how well your brand’s product is if the
quality is not good brand loose its consumer. Even the well established brands loose if these
brands try to reduce the their customer on the benefit of their big brands , because if quality is
not good consumer will not purchase.

Q ) Please tick the following brand based on their overall products quality?

The overall analysis of survey reveals that the


consumer are of the opinion that Amul brand product
are of good quality, this opinion is of maximum no.
consumer which is 28% according to pie-chart.

The percentage for other brands are

Britannia: 24% Aavin: 14%


Mother Dairy: 13% Heritage: 10%
Nilgri’s : 11%.

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DIFFERENTIATION / INNOVATION
The product should have variety & differentiation. Consumer want to have different falvour of
product , some may even look for colour. In dairy industry this is more applicable in case of ice-
cream & nowadays cold bottled milk.

Q ) Do you think below mention brand undergoes continuous innovation & provide
varieties in product?

When this question were put across consumer most of


the consumer said that in this only Amul & Britannia
are the best with both having 28% & 25% respondents
in their favor.

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ASSOCIATE WITH PERSONALITY


With changing pattern the way of advertising is also changing , now the brands are being
endorsed by famous personality who can be a famous actor/actress , cricketer or any cartoon
character. For example in 7up cold drink Ad we can see cartoon character with spike hairs.

Q ) Do you associate these brand with any human character or personality?

As the survey was done more then 50% of the


consumer recalled the Amul Girl, as can also be
seen in the pie- chart & some was able to recall for
mother dairy, Britannia & Aavin , but no one was
able to relate the Nilgri’s or Heritage with any of
the personality.

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BRAND RECOMMENDATION
One of the important aspect for every brand, this is one of the unpaid advertising with the most
effective results. This is the “Word of Mouth Advertising”, this consumer does when consumer
himself get well satisfied with the brand & its quality.

Q )Will you recommend this brand to others ?

The survey gives us clear picture that nowadays


consumer are not satisfied with any of the dairy product
because none of the brand even achieved the 50% of
consumer choice in this category.

No. of people who are familiar with the


brands 29 % voted for Amul for
recommending to other people

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ORIGIN - State or City
It is from where the brand started its journey towards success

Q ) Please mention the origin state or city of the brand from where it started?

This is like people who are aware of the brand


must or may be aware of the state or the city
from which the brand originated , in this out of
the sample of 40 consumer 38 consumer
were able to recall for Amul, then second in
this category was Avin with 21% .

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DITRIBUTION NETWORK

Q) How is the Distribution Network of various brands ?

The report give us the clear understanding that Aavin &


Amulhas good distribution network as compare to other
brands , with 23% leading, then in this comes the
Heritage with 20% of the retailer voted good network.
The lowest in this category was 6% that is mother dairy.

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Tabular representation of Ranking of Brands according to survey report &


according to market share report

Position Survey Report Market Share


1 Amul Amul

2 Britannia Aavin

3 Aavin Heritage

4 MotherDairy Britannia

5 Heritage MotherDairy

6 Nilgri ’s Nilgri ’s

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BUSINESS SCHOOL, CHENNAI TIMER

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WELCOME
To The New Episode
Of

Brand Extension
SCHOOL Of BUSINESS, CHENNAI PROGRAM - MENU

Channel 1 – Casting
Channel 2 – W hat is Brand Extension

Channel 3 -- Brand Stor y


Channel 4 – Amul Brand Extension

Channel 5 -- Amul Successful Brand

Extension
Channel 6 – Success Stor y of ice- cream
Channel 7– Success

Channel 8 – Amul Failure Brand Extension


Stor y….contd.
Channel 9 – Failure Story
Channel 10 – Causes For Failure Of Amul Pizza

C
. hannel 11- Causes For Failure Of Amul Pizza……

contd.
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SCHOOL Of BUSINESS, CHENNAI Channel 1

CASTING

Episode
Director
Prof . Y. Lakshman
Kumar

Episode Producer
Manuj Arora

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SCHOOL Of BUSINESS, CHENNAI
Brand extension strategy is pursued by the marketers
Channel 2 very
vigorously. WHAT IS BRAND EXTENSION ?

Involves using an existing brand name to launch a product in a


different category.

The brand remains constant but product category tends to be


variable.

It justified on the basis of promotional efficiency, savings on


product
launches, consumer benefits and returns.

Various types of extensions could be identified such as product


form,
companion product, expertise, customer franchise, and brand image
type.

An extension can be good when extended product succeeds and


parent
brand benefits. A bad extension is one which fails to lift off
while an ugly
extension not only fails to lift off; it also damages the parent
brand.
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Brief Introduction
Channel 3

of
Stand’s For : ANAND MILK UNION LIMITED
First ever Farmers’s Dairy Co-operative started in India, in
the year 1946
With its headquarter in Anand,
Gujarat
The first product which came under the brand name Amul was
Amul Butter
Before Amul Butter, there was milk also but it was not with Amul
brand name
Amul follow the “ Umberalla Branding ” that means a wide
range
under different category but of brand
same products
name

Every brand has some success & failure Amul is not away from
that. But
has more success then failure Amulwill see one each
& we
in both the cases

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SCHOOL Of BUSINESS, CHENNAI Channel 4

Brand Extension

SUCCESSFUL FAILURE

Ice-Creams
PIZZA

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SCHOOL Of BUSINESS, CHENNAI Channel 5

SUCCESSFUL
BRAND
EXTENSION

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SUCCESS STORY (ice-
Channel 6

cream)
Ice Cream was launched on 10th March ,
1996 at Ahmedabad Gujarat .

The portfolio consisted of impulse products like sticks, cones,


cups as well as take home packs and institutional/catering packs.

Amul ice cream was launched on the platform of ‘ Real Milk . Real
Ice Cream ’ given that it is a milk company and the
wholesomeness of its products gives it a competitive
advantage .
In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and
Kolkata and Delhi in 2002. Nationally it was rolled out across the
country in 1999.

The market share of Amul ice cream is 38% share against the 9% market
share of Kwality Walls (HUL), thus making it 4 times larger than its
closest competitor.

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Amul has always brought newness in its products and the same
applies for ice creams. In January 2007 , Amul introduced SUGAR
FREE & PROLIFE PROBIOTIC Wellness Ice Cream , which was a
first in India .  This range of SUGAR FREE, LOW FAT Diabetic Delight
& ProLife Probiotic Wellness Ice Cream is created for the health
conscious.

Amul’s entry into ice creams is regarded as successful due to the large
market share it was able to capture within a short period of time – due
to price differential, quality of products and of course the brand name.

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SCHOOL Of BUSINESS, CHENNAI Channel 8

FAILURE
BRAND
EXTENSION

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FAILURE STORY
Channel 9

(pizza)
launched its pizza in
the year 2002

Amul has adopted this radical strategy to expand the consumption


of mozzarella cheese, a core ingredient that goes into the making
of pizzas.

To capture the large customer base Amul came up with the lowest
pizza price ever in the industry that was 20 Rs .

Amul adopted the franchisee model to get


the mass market .

Amul enter a new territory, at a time when the field was flooded with
new entrants, many of them multinationals

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CAUSES FOR FAILURE OF AMUL PIZZA


The problem it had was of winning the trust of the consumer over
the quality and freshness of the Pizzas as they were frozen and
were manufactured quite a few days back.

Packaging of the Pizzas was also questionable.

The taste of Pizzas was not at all appreciable

Amul’s Franchisee Model was very faulty .

Amul’s strategy of creation of a mass market was


entirely wrong
Amul lost out because of its inability to communicate the Positioning
in a proper manner.

Amul overlooked the threat from Pizza Professionals


like Pizza Hut and Domino ’ s .

Amul failed to do Product


Differentiation properly.

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SCHOOL Of BUSINESS, CHENNAI Channel 11

Amulhas always been related with milk & milk product


which is always fresh, no packaged milk like frozen pizza & due to
that pizza’s were not readily acceptable by the consumer.

Amul pizza once failed was again re – launched with the


same brand name which
was one of the wrong strategy .
AMUL did the brand extension in order to save the expenses of
building a new brand name and thus wanted to cash on the brand
value of AMUL.

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SCHOOL Of BUSINESS, CHENNAI TIMER

First , say to yourself what you would be , and then


do what you have to do . — Epictetus

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