AMUL_1405011

                                                                  

Category/Industry 

The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. India's dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with VVTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per am of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan's $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. 

 AMUL BRAND

Amul as a brand name is familiar to almost every individual in India, Amul is known for its quality products purity and hygiene. For over more than the past 50 years Amul has been serving the consumers of India with a variety of quality products. Amul follows a business model to provide products to customers which provides 'value for money' to the consumer. Amul has enjoyed its status of market leader in products like butter, cheese and dry milk, by providing customers with quality products at competitive prices. It is one of the largest food products manufacturing organization of India. It is a Dairy Cooperative of Gujarat, also known as The Gujarat Cooperative milk marketing federation Ltd. Gujarat as a state of India is a leader in organizing dairy cooperatives and its success is not only limited in India but acts as a model for rest of the World. Over the last fifty odd years, Dairy Cooperatives in Gujarat have created an economic network that connects more than 2.8 million village milk producers with million of consumers in India and abroad through a cooperative system. These cooperatives collect on an average 7.5 million litres of milk per day from the producers.

Amul has brought a significant change in social and economic situation of our rural people. The Dairy Cooperatives have helped to bring an end to the exploitation of farmers and has increased the level of benefits to our rural producers of milk.

Amul cannot be considered as business enterprise which works primarily for the generation of profits. It is an institution created by the milk producers to primarily safeguard their economic and social interest. Business houses generate profits in order to distribute profit to shareholders in shape of dividend, whereas in case of Amul the surplus is ploughed back and distributed back to farmers through village societies.

Success parameter :

Growth Rate :

Amul has posted its highest-ever growth since its inception four decades ago by clocking a 32 per cent rise in turnover to Rs 18,150 crore, as per a company statement.

Market Share:

GCMMF, which aims to achieve sales turnover of Rs 30,000 crore by 2019-20, has crossed Rs 26,000 crore turnover, 37 per cent higher compared with the previous fiscal.

Value Chain:

Amul's Total Quality Management ensures that the quality of products meets its standards right from the starting place of milk producer through the value chain until it reaches the consumer thus Amul is trying to provide value to its customers which not only satisfies the customer needs but delights the customer. From procurement, to processing and marketing – is controlled by the farmer’s cooperative, which is directly linked to the final customer.  There are no middlemen; the cooperative collects the milk directly at the producers’ doorsteps. The model envisages that democratic elections are held every three years, to elect the members of the management committees who, in turn, elect the chairman. This ensures an active participation of farmers in decision-making, as well as transparency and democratic management. Membership is open to anyone who owns at least one cow and is able to provide at least 700 litres of milk per year. The final price of Amul products are decided by GCMMF, which conducts market surveys on aspects including the costs of milk, labour, processing, packaging, advertising, transportation and taxes.  

Customer Attraction:

In order to cater to all the fragmented markets we are coming up with products for all of them in order to have maximum share of the market. In India potential consumers who consume amul product are the people who are of the age group of 3-20 years, and we would target the consumers from the same segment by framing our promotions and advertisement campaigns to attract people from the market segment based on the mentioned age group, by doing this we would be able to focus on the large chunk of people who consume amul product in large quantities and can be our prospective customers.

Customer Retention

Amul do not take ethical shortcut which helps in maintaining  Long-term success and customer retention  There must always be total consistency between what you say and do and what your customers experience. The design, build quality, reliability and serviceability of amul product or service must be of the standard. Your customers want, need and expect. Service integrity is also demonstrated by the way you handle the small things, as well as the large. Customers will be attracted to you if you are open and honest with them, care for them, take a genuine interest in them, don’t let them down and practice what you preach … and they will avoid you if you don’t.

Demand

The company is planning on its expansion and through expansion the company will create fresh avenues for growth by catering to the rising demand for new products, this would include increasing the capacity for major product categories including milk powders, Ice-cream, paneer, cheese, curd, ghee and other dairy products. Milk drying capacity will also be enhanced. in order to to strengthen the presence of company in the large market, for liquid milk Special emphasis will be given to metropolitan cities. The company is planning to double its processing capacity of its plants to 20.7 million kg per day. The basic raw material of Amul products is milk and for increasing milk production nutritious feed should be provided to animals. For this very purpose the company is planning to expand its cattlefeed manufacturing capacity by 2020. Amul's achievement of its mission will not only be beneficial for the organization but it will be helpful for the development of economy as a whole.

Costumer Satisfaction

Today the firms aim to give satisfaction to the customer through marketing concepts. The firm try to help the buyers in the solving the problem then competitors. The marketers must see that consumers with purchasing power constitute a potentials buyers are identified. It is essential for the marketer to carry out the business in such a way that they give satisfaction to consumers needed. When a firm markets a product or service it should aim to enjoy consumer’s satisfaction & profit maximization.

Marketing Strategy 

                                                                   

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic utalitt. menland common good.

Looking back on the path traversed by Ant the following features make it a pattern and model for emulation elsewhere. Amul has been able to:

• Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its roles and limitations

• Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment

 • Provide a support system to the milk producers without disturbing their agro-economic systems

 • Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and

 • Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Amyl is an example par excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies.

4P’s of Marketing-

Product

We are manufactured 100% vegetarian noodles in order to target the wide market in India as a lot of people in India have only veg. food we have further prepared a lot of flavours of our noodles in order to give variety to customer. We have further fragmented our target market on the basis of tastes of people, some of the prospective customers may like sweet dishes where as some among the people in our target market may like salty dishes whereas there are others who prefer classic noodles with masala. Therefore in order to cater to all the fragmented markets we are coming up with products for all of them in order to have maximum share of the market. Our product is easy to cook and is at a price which is providing consumer surplus to our customers, thereby we provide value for the worth spent by our customer. If u are not able to cook anything and you are alone, our product can be prepared as they are easy to cook and takes just 2 minutes.

The features which differentiate amul products from competitors are:

Quality raw materials used

It tastes great and is good for health

Value for money

Easy to cook

Ready in 2 minutes

Add anything you want (make your own recipe)

100% vegetarian

Family packs at low prices

Place

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 11 years.

Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

Promotion-

Before determining the promotion strategies, we need to be very clear about what are the objectives we need to achieve through promotion. Therefore we would first determine the objective behind the promotion of our product, this helps in devising a promotional strategy which is in line with its objectives.

The main objective for the promotion of our product is to generate sales, though the objective of promotion is also to some extent determined by our target market, therefore we would devise promotional campaigns that have an impact on the target market. Then we identify the channels for promotion which include various media for advertisement. Which include:

Online Advertisement

Television Advertisement

Radio Advertisement

Newspaper Advertisement

Pamphlets

Sign boards

Posters

catalogues

Marketing Campaigns

Price

At the time when Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand image in the household sector of the society. It has a totally market oriented pricing strategy.

STP Of Amul-

Segmentation of  Market

Market segmentation is the process in marketing of grouping a market (i.e. customers) into smaller subgroups. These markets are often termed niche markets or specialty markets. These segments are fairly homogeneous in their attitudes about certain variable

Because of this intra-group similarity, they are likely to respond some what similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. The purpose of segmentation is to identify and target prime customer groups (e.g. the 20% that account for 80% of your sales) so that you get the maximum return from a limited marketing budget

Targeting Segment

Amul has targeted their milk products to various segments of the market. Products Like Nutramul Energy Drink, Amul Kool chocolate milk, Amul Kool flavoured Bottled Milk are targeted for the Kids aged 4- 16 specially school going. Products such as Amul Kool Milk shake, Amul Kool, Amul Kool Café, Kool Koko, Nutramul Energy Drink, are mainly targeted for the College going young people. Where  as products such as Amul Masti Spiced Buttermilk, Amul Lasee, Amul Kool Thandai are targeted in specific season.

Positioning 

 Amul Milk has positioned it  self as a healthy substitute for the Soft Drink (Carbonated Drinks).

 Ready to serve Milk Products (Amul Kool)

Position in the beverages   market with the introduction of milk shake.

 Brings goodness  of Coca (Chocolate and Coffee) all the year around.

 Different packaging is meant to attract generation.