Professional Documents
Culture Documents
Table of Contents
Introduction ............................................................................................................................................ 3
About the Company ............................................................................................................................ 3
Ownership ........................................................................................................................................... 4
Amul’s Portfolio .................................................................................................................................. 4
POP and POD....................................................................................................................................... 4
Points of Parity ................................................................................................................................ 4
Points of Difference ........................................................................................................................ 5
Product Strategy ................................................................................................................................. 5
Pricing Strategy ................................................................................................................................... 5
Distribution Strategy ........................................................................................................................... 5
Analysis of Distribution Channel ..................................................................................................... 6
Role of marketing channels ............................................................................................................ 6
Push versus Pull Strategy ................................................................................................................ 6
Communication Strategies ...................................................................................................................... 7
Amul - Brand Elements ....................................................................................................................... 7
Amul – Integrated Marketing Communications ................................................................................. 8
Consumer Advertising ..................................................................................................................... 8
Institutional advertising .................................................................................................................. 8
Indirect Action Advertising ............................................................................................................. 9
Pricing strategy adopted ................................................................................................................. 9
Media Platform Used by Amul ........................................................................................................ 9
Outdoor media: hoardings ............................................................................................................ 10
Internet - Online marketing .......................................................................................................... 11
Amul to set up its virtual production facility in Second Life ......................................................... 11
Broadcast media: Television ......................................................................................................... 11
Brand Equity and Brand Personality ..................................................................................................... 12
Brand Values ..................................................................................................................................... 12
Sources of Brand Equity .................................................................................................................... 12
Mental Map ...................................................................................................................................... 13
Brand Mantra .................................................................................................................................... 14
Customer Based Brand Equity (CBBE) Model Analysis ..................................................................... 15
Brand Salience............................................................................................................................... 16
Table of Exhibits
Picture 1 Sales Growth ............................................................................................................................ 3
Picture 2 Brand Elements........................................................................................................................ 7
Picture 3 Topicals .................................................................................................................................... 9
Picture 5 Brand Mantra......................................................................................................................... 14
Picture 4 Mental Map ........................................................................................................................... 14
Picture 6 Customer Based Brand Equity Model .................................................................................... 15
Introduction
About the Company
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a
brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in
Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative
organization's success in the long term. The Amul Pattern has established itself as a uniquely
appropriate model for rural development. Amul has spurred the White Revolution of India, which
has made India the largest producer of milk and milk products in the world. It is also the world's
biggest vegetarian cheese brand. Refer Appendix (Table 2 for Facts on Organisation)
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing
organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of consumers by providing quality
products which are good value for money. Dr Verghese Kurien, former chairman of the GCMMF, is
recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand1 with an annual
turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk
collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets
such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South
African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh
plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka.
The Sales performance of AMUL from Exports as well as Domestic is depicted in Appendix (Table 1).
The sales have grown at CAGR of 14% over the decade.
Sales Turnover
100000
80000
Rs. Million
60000
40000
20000
0
1
The Business Edition, “Amul Emerges As World’s Largest Pouched Milk Brand”, June 15, 2007
In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling
of milk. That time there was high demand for milk in Bombay. This system leads to exploitation of
poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and
the farmers were forced to accept it without uttering a single word. However, when the exploitation
became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai
Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell
the milk on their own by establishing a co-operative union, Instead of supplying milk to private
traders. This led to birth of Co-operative movement in Milk Production. Mr. Verghese Kurien showed
main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the
farmers in forming the Co-operative unions at the village level. The Kaira district milk producers
union was thus established in ANAND and was registered formally on 14th December 1946. Since
farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the
milk under the brand name AMUL.
Amul’s Portfolio
Amul products have been in use in millions of homes since 1946. The Portfolio of Amul Ranges from
Milk to Butter to Cooking Products. Products like Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. The AMUL’s Basket has about 50
Products under the Brand Name of AMUL. The Various Products line as categorized by the Company
are Bread Spreads, Milk Drinks, Fresh Milk, Powder Milk, Cheese, Cooking, Desserts and health
Drinks. These Lines are further assorted with different varieties. The Product Mix of Amul is attached
in Appendix (Table 3)
Amul over the years has extended its line for each Product Line. For Instance, it has launched
Processed cheese to Mozzarella Cheese to Emmental Cheese. Also Stretching Down from large Packs
of Butter to Small packs. Amul has done Line filling, by introducing completely new product ranges in
Ice-cream segment by launching Pro-Biotic Ice creams for Diabetics.
Quality is something that Amul is known for. Amul has build a reputation for the brand by
consistently delivering high quality products over last many years. Amul’s new Ad campaign
“Asli Taste, Asli Butter: Amul Butter” shows how the company is trying to create a
differentiation for itself
Nationwide presence is also something that the competitors are lacking in
The print Ads of Amul always pick some recent happenings and make satire comments on
them
Product Strategy
In case of product, the differentiation is not much as compared to its competitors. But, it has
enjoyed the first mover advantage over the years.
Share of mind and share of heart is highest with 86% of the market share. It has been the market
leader during the last 4 decades.
USP- is its taste. Amul butter is made from fresh cream by modern
continuous butter making machines i.e. purely vegetarian.
Pricing Strategy
Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers
by guaranteeing them value for money. The success of this strategy is well recognized and remains
the main plank of AMUL's strategy even today.
The choice of product mix and the sequence in which AMUL introduced its products is consistent
with this philosophy. Amul has always targeted the middleclass people so it has always been inclined
to keep its price low and at same time it assures of reasonable quality.
Distribution Strategy
The ‘place’ variable in the marketing mix plays an important role in overall fortune of any brand.
Place refers to the mechanism by which goods/services are moved from the manufacturer to
consumer. It is also known as channel, distribution or intermediary. All other marketing decisions
are affected by the selection of distribution channel. The key decisions regarding distribution
Amul has brought a paradigm shift in the milk industry through its innovative practices of managing
the large decentralized network of suppliers and producers and simultaneously developing the new
markets and distribution channel.
Amul products are available in over 500,000 retail outlets across India through its network of over
3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range
of products.
The main objective of distribution channel of Amul is to provide best quality products to consumers
at affordable price while giving maximum possible return to its suppliers.
This dual objective of satisfying consumers as well as suppliers has led Amul to find innovative ways
to manage its network effectively and make lean and efficient supply-chain.
Amul has chosen intensive channel to ensure that its product should be available everywhere even
in rural areas. Following are the channel intermediaries of Amul:
Amul Parlours
Communication Strategies
Amul - Brand Elements
Name
URL Logo
Brand
Elements
Character/ Tagline/Slo
Mascot gan
Jingle
The Brand Name: "Amul," is the acronym of Anand Milk Union Limited, comes from the
Sanskrit "Amoolya," meaning Precious/Priceless. It was suggested by a quality control expert
in Anand.
The Logo:
The Character/Mascot: The Amul moppet has been the mascot of Amul since 1967, sporting
a young girl in red polka dot frock with ‘Utterly butterly delicious’ jingle.
Amul has been consistant over the communication campaign and brand strategy. AMUL has
positioned itself as " Taste of India " and have ensured that their communication is in line with their
positioning strategy
By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also
created an opportunity for the union members to cooperate in developing products.
Consumer Advertising
This is also called end product advertising. Such advertisements are primarily directed at consumers.
These are the advertisements, which are most prominent as very substantial portion of the total
advertising budget is directed to potential buyers of consumer products through mass media. The
fact that the numbers of buyers of consumer items is generally very large and are widely distributed
over a large geographically area further, enhances the importance of consumer advertising as a
marketing tool. Amul had resorted to consumer advertising as it’starget was the middle class of
Indian sector. But the point to be noted is that they relied more upon emphasizing their brand rather
than single product.
Institutional advertising
Institutional advertising is also called corporate advertising. it’s a public-relation-approach
advertising. Amul had wanted to build goodwill for its brand and also it is always expressing a
viewpoint on a controversial issue through the use of billboard, which we are going to discuss under
media platform used.
Picture 3 Topicals
Huge ad campaigns are not always necessary, what you need is a genuinely interesting way to
interact with your customers, tell them your story and engage them in a conversation, even if you
are selling something that is soo commoditized like butter. Thus Amul believed that huge
expenditure on advertising was not always necessary , if an Advertisement has creativity and
ingenuity it will achieve its purpose for which it has been designed.
The ads have a central character – a cherubic, wide-eyed, dressed in a polka-dot frock, and blue-
haired girl/baby who is perhaps around 4-6 years old. A new ad is apparently created every week
and these ads revolve around the latest happening thing (good/bad/ugly) in the country (or local
states) and can be anything associated with politics/sports/movies/people/laws/general events etc.
The ads are very creative, witty, humorous, whacky and sometimes controversial but invariably elicit
a laugh, chuckle or at least a smile from almost everyone who understands the context. The ads
relate butter to the topic of the ad in a very amazing & intriguing manner…primarily by playing with
words. The words can be in plain English or Hinglish. Mascot advertising (will be dealt with just after
this section)
Receive Free Reusable Ice Pack for keeping food and drinks cold, US $5.00 Retail Value.
Amul Products delivered at your doorstep overnight, saves time, mileage and parking
hassles.
Receive Amul promotional items with your package like Amul Recipe Book, Butter Girl
refrigerator magnet, etc.
Get a free family pass for visiting Amul's Dairy Plant in Anand Gujarat.
Special Offers for Party Orders of 1 or more cartons of any single Amul Product. Ask for
special quote.
Makes you directly eligible to enroll for The Fly Me Home Contest Sponsored By Amul
and many more Internet Promotions in the Pipeline.
No Sales Tax for Internet Sales except for Illinois residents at the Present time.
Most important, all transactions are powered by AT&T Secure By which ensure complete
security.
Amul.tv.com- It showcases short films and TV’s related to Amul at this site recipes of favorite Indian
dishes are also given.
In fact, it is not just the core values at Amul that have remained the same; the core team associated
with the brand is still the same. Even the advertising agency hasn’t changed, and Da Cunha and FCB
Ulka, have played a pivotal role in the growth of Amul.
It has helped Amul maintain consistency in its communication. Their strategy of umbrella branding
has also helped establish the brand firmly in people’s minds. From Utterly butterly delicious Amul to
The Taste of India, Amul continues to be the toast of the country.
Amul products have been in use in millions of homes since 1946. Today Amul is a symbol of many
things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-
operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers'
organization.
If a brand’s value is to be judged by the ease with which it can be recalled, then Amul’s marketing
campaign wins hands down.
With its clever use of topical events, Amul’s utterly butterly campaign—it has the distinction of
entering the Guinness World Records as the longest running campaign—has won the brand several
accolades.
Playing the role of a social observer, its weekly comments have tickled India’s funny bone since
1967, when Sylvester Da Cunha’s irrepressible Amul girl first had her say.
Amul has always used umbrella branding over the years. An umbrella brand is a brand that covers
diverse kinds of products, which are more or less related. It applies also to any company that is
identified only by its brand and history like Amul. Amul changed the way food products were
communicated to the people in India. It always advertised its mother brand – Amul, and not its
products like butter, pizzas, or cheese.
Amul has been consistent over the communication campaign and brand strategy. AMUL has
positioned itself as "Taste of India” and have ensured that their communication is in line with their
positioning strategy.
Amul has high brand equity and umbrella branding of Amul has helped the company in bigger sense.
Amuls’s brand name has helped its other brands also like Mithai made, Amul Ice creams, chocolates,
Amul Kool etc. So umbrella Brand, Amul is used to build and offer value to customers in bigger
sense. In literal sense, a company has high brand equity if it has multi dimensions. Amul has explored
various available opportunities to reach to mass customers. It has opened a community on public
forums like orkut, sponsored events like Amul voice of India and the latest being Masterchef India
etc. The brand value of Amul has surely helped the company to maintain the status of largest food
brand in India for a long time.
Amul’s strategy of using “umbrella branding” has really paid off. Amul’s advertising and marketing
spend has never exceeded 1% of its revenues as compared with 7-8% spent by most of the food and
consumer product companies in the same segment.
Amul’s creative’s: In the form of billboards or the Taste of India campaign—have always managed to
evoke a larger-than-life brand feel, consistency and spirit of Indian culture in a contemporary way.
Mental Map
A mental map is generally a visual depiction of the core brand associations and can be useful in
defining the brand mantra. Many of these core brand associations come from the brand’s
positioning and communication strategies. These are points which in essence define the brand‟s
identity and representation.
According to the consumers, some of the brand associations that can be mapped onto a mental map
for Amul Butter are depicted below. Then from this mental map, we will be able to define the brand
mantra for Amul Butter.
Healthy Cheerful
Reliable Culture
Sporty Ethnic
Brand Mantra
Brand Mantra reflects the essential heart and soul of the brand and is a synthesis of many core
brand associations. According to most of the communication, Amul Butter does in India a few terms
come out quite clearly, making up its brand mantra. Adding to that the mental map that we have
managed to create brings out certain core brand associations, which can be fine-tuned to five major
aspects, and these can form the Amul Butter brand mantra.
Amul Butter’s brand mantra is that it is a healthy butter, which offers a reliable product while
keeping a youthful charm and fun loving appeal about itself.
Youthful Cheerful
Reliable
There are three dimensions, which need to be analyzed to find out the customer based brand equity
of a brand, which are:
Differential Effect
Brand Knowledge
Through the following customer based brand equity pyramid we’ll evaluate how Amul performs on
each parameter and how strong or weak the customer based brand equity of Amul is.
Brand Performance
Performance consists of parameters like taste, aroma, nutrional value, availability and price. On this
front too Amul rates good. Except for price more than 70% of the respondents in the survey rated
Amul as good and extremely good on all the parameters stated above. For price the respondent base
that rated the brand good and extremely good was 56%.
Brand Imagery
Imagery relates to the satisfaction of the customer’s psychological needs, unlike his functional
needs, which can be related to performance. User experience would be a major element in imagery.
Based on responses, Amul is found to be very positive on imagery as Amul is a Indian brand with a
history that the customer associate the brand with words like values, ethics, family yet found the
brand to be cheerful, fun loving and full of joy.
Consumer Judgments
Judgments consist of factors like quality, credibility, superiority and consideration. Amul rates well
on these parameters since the quality of the product is very good and Amul has been known for
delivering great quality products for many years.
Consumer Feelings
This is the response of the consumer in terms of his emotional reactions and responses towards the
brand. Feelings here can be mild, intense, positive or negative. Customers respond positively
towards Amul and most of its advertising shows its connect with the people and a bond with the
motherland. There are very intense emotions attached with this brand.
Zydus acquired Nutralite in 2006. The brand was then relaunched with a controversial positioning "
Better than Butter ". The slogan prompted Amul to take the issue to ASCI, which directed Zydus to
substantiate the claims in their future campaigns.
The organized branded butter market in India is estimated to be around Rs.800 crore. Amul
dominates the market with around 86% market share.
Amul butter may be selling the most, but the advertising and promotions are almost always targeted
at adults. Here, Mother Dairy has dared to go different. Since kids consume 60 per cent butter, the
company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow (a
cartoon character) has been made its brand ambassador.
Mother Dairy is present across north India, Mumbai, Kolkata, and Bangalore, while Amul has its
reach to even the remote consumers.
Amul plans to protect near dominance in low margin market with price, whereas Britannia focuses
on top 30 cities only.
Appendix
Amul Butter Kool Koko Sagar Tea Amul Lite Slim Amul Pizza Cooking
Coffee and Trim Milk Mozzarella Butter
Whitener Cheese
Delicious Table Amul Kool Sagar Skimmed Amul Calci+ Amul Cheese Utterly
Margarine Flavoured Milk Powder Spreads Delicious
Product Line Length
Responses
Demographics
No of Respondents: 100
Noida Location
4%
Ahmedabad
8%
Gurgaon
5%
Hyderabad
12%
New Delhi
Mumbai 60%
11%
Age Gender
21% 22%
Female
46% Male
54%
57%
Which Brand comes to your Mind when you wish to buy Butter?
It is really remarkable and amazing to see all the 100 respondents responding “Amul” as the
response, though no options or reference sheet was given. This proves The Amul has high share of
mind.
100%
Good
33%
Extremely
Good
60%
Not Satisfactory
2%
Aroma
Worst
0%
Well Enough
11%
Extremely
Good
24%
Good
63%
Not
Satisfactory Nutrition Value
2% Worst
0% Extremely Good
14%
Well Enough
29%
Good
55%
Well
Enough
23%
Good
57%
Well
Enough
36%
Good
46%
Good Extremely
42% Good
51%
Well
Not Satisfactory
1%
Taste Worst
1%
Enough
4%
Good
34%
Extremely
Good
60%
From all the above responses it can be seen that in all most all the parameters Amul’s Butter was
regarded as ‘Extremely Good’ or ‘Good’ by the respondents, who are also its consumers.
Brand Personality
Cheerful 65%
Fun Loving 60%
Relaible 58%
Healthy 52%
Youthful 46%
Family Oriented 43%
Traditional 23%
Culture Oriented 22%
Sporty 19%
Ethnic 16%
Sarcastic 8%
Serious 2%
Of the given 12 Attributes, which were selected by the group from the secondary research, it is
clearly visible that respondents selected Cheerful, Fun loving, reliable and Healthy as the most
suitable qualities of Amul. The question is purposefully kept comical to appeal the respondents in a
friendly manner.
Brand Loyalty
14%
25%
61%
No, I will search for the AMUL Butter( Mera wala Butter)
Hmmm Will try to search, if not then any butter
I will Buy any Butter, It really doesn't matter
This question was asked to measure Brand Loyalty of Amul Butter. And seeing the responses it can
be inferred that though customers have a very high recall and High share of mind for Amul Butter
(which is shown if previous question), the Loyalty towards the product is bit low. Of the 100
respondents Only 25% were hard core loyal and maximum proportion( 61%) are though willing to
buy Amul’s Butter but in case non availability the will buy any other butter.