Marketing mix of Amul

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SEPTEMBER 11, 2015

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Marketing mix of Amul

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Amul is definitely an Amoolya brand. Amoolya in Sanskrit means something

which is invaluable or priceless. With a presence in almost every product
which can be made by milk, Amul has won over hearts along with market
share to become a highly valued brand with an Indian origin. Amul was
formed because of a revolt of dairy farmers. And today, Amul is a brand
against which companies want to compete and come on top but the same is
not being allowed by the smart minds in Amul. The reason Amul is such a
strong brand is because of the marketing mix of Amul. Here is an in depth
analysis of the Marketing mix of Amul.
Product in the marketing mix of Amul Amul has a very very strong
product portfolio. Amul product portfolio is comprised mainly of Dairy
products. Amul butter, Amul cheese and Amul ice cream are cash cows for
Amul as they have the major market share in their product category. Amul ice
cream is amongst the top 10 ice cream brands of India.

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Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact
Amul milk has 26% of market share in the packaged milk segment. The only
disappointing performance is seen in Amul Chocolates which are a burden for
Amul and lot of push is required for the sales of the same. This is because the
chocolate market has established players like Parle, Dairy milk and others.
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spreads, Amul Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul
ABOUT
GUEST AUTHORS ARCHIVES
ice cream, Amul Paneer,HOME
AmulPAGE
Dahi, Amul
Ghee,
Amul Milk powders, Amul
Nutramul, Amul mithai range, Amul mithai mate, Amul chocolates, Amul
butter milk. Thus the product portfolio of Amul considering its dairy origins is
astounding. Amul has various competitors based on different products. In ice
cream it is Vadilal, Dinshaws and Havmor. In butter and milk there is mother
dairy, Britannia and others. However, no competitor has such a vast dairy
based product portfolio as Amul. This is the major reason that Amul has a
sustainable competitive advantage over its competitors.

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Price in the marketing mix of Amul Amul has a strategy of low cost
pricing. Some may call it penetrative pricing. But penetrative pricing strategy
is used when the market has a high level of competition and a player wants to
establish itself in the market by giving low prices. However, in the case of
Amul, when Amul started, there were no national players and the dairy market
was unorganized. During the introduction stage itself, Amul had a vision to
provide their products to end customers at the best affordable rates. And the
same vision is in place even today.
Today also, you will find that Amul butter, milk and cheese are available at
affordable prices keeping in mind the end customers. You may call these
products costly, but the cost has nothing to do with Amuls strategy.
Remember that transportation costs as well as storage and distribution costs
are very high in FMCG. Thus, as the cost of transportation, storage and
distribution has increased over the years, so has the cost of Amul products
gone up. But considering their value for the average India consumer, these
products are still priced at an affordable rate.

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Place in the marketing mix of Amul Amul has a massive distribution

network because its ice creams, milk, butter and cheese is found practically
everywhere. As it is a FMCG product, Amul follows the methodology of
breaking the bulk. The initial factory output is in bulk. Later on this bulk
becomes smaller and smaller and finally one individual slab of butter or scoop
of ice cream is sold at the retail place.

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There are two different channels through which Distribution happens in Amul.
One is the procurement channel which is responsible for collection of Milk
through dairy co operatives. The other is the distribution channel which is
responsible for distributing the finalized product to the end customers.
In the procurement channel, the milk is individually delivered from farmers to
the co operatives. The co operatives then collect all this milk and send the bulk
to the manufacturing facility. At the manufacturing facility, the milk is used to
manufacture the finalised products.
In the distribution channel, there are carrying and forwarding agents,
distributors, dealers and retailers involved. There are also Amul shoppes
which sell all products in the Amul product portfolio. The distribution is as
follows.

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Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer /

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Marketing mix of Amul

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Amul Shoppe >> Customer

Amul >> Modern retail
Thus there is a lot of transportation involved for all of Amuls products.
However, the distribution channel of Amul ensures that the products reach
every nook and corner of India.
Promotions in the marketing mix of Amul Amul is responsible for
one of the most unique and longest running outdoor campaign as well as one
of the most known outdoor advertising characters The Amul girl. We would
like to take this opportunity to specially thank Mr Eustace fernandes, the
creative brain behind the sweet girl. But we should know by now that the Amul
girl is hardly sweet or cute. She is known to be the most naughty advertising
girl ever. Amul hoardings mainly feature the current news and are used to take
a tongue in cheek viewpoint at current happenings. However, each
advertisement hits the nail on the head.
The promotions of Amul are mainly for butter but for all the other products
there is hardly any promotions. During the launch of products, Amul is known
to go ATL and advertise milk, butter etc. The Smita Patil ad wherein Smita
patil is shown as a village milk collector is one of the most famous ads for
Amul. But overall, the main advertisement is BTL through outdoor, trade
promotions, discount schemes and sales promotions.
The major reason for Amuls absence in hardcore advertising is that Amul
does not want to give away margins in advertising its products. As per Amul,
their maximum budget for advertising is 1% of the turnover. Above and
beyond that will directly affect the cost of the product. And the major reason
for Amuls strong presence in the market is its excellent quality combined with
the affordable price. Thus, overall promotions will always be low for
Amul except for the outdoor advertising of Amul butter.
This concludes the marketing mix of Amul. The bottom line is that we love that
an Indian brand like Amul has reached such staggering heights and that we are
a part of the time when such a white revolution took place.
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