LATE SHRI VISHNU VAMAN THAKUR CHARITABLE

TRUSTS
BHASKAR WAMAN THAKUR COLLEGE OF SCIENCE,
YASHVANT KESHAV PATIL COLLEGE OF
COMMERCE,
VIDYA DAYANAND PATIL COLLEGE OF ARTS,

MARKETING STRATEGY OF AMUL INDIA

PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI
BY
PANDEY NITISH TARASHANKAR
ROLL NO: 237
TYBMS SEM5th
EXAMINATION SEAT NO: 8666

GUIDED BY: PROF. SUBORNA BANERJEE

DECLARATION
I hereby declare that the project titled MARKETING STRATEGY OF
AMUL INDIA is an original work prepared by me and is being
submitted to the UNIVERSITY OF MUMBAI in partial fulfillment of
BMS Degree for the academic year 2012-13.
To the best of my knowledge, this project report has not being
submitted earlier to this University or to any other Affiliated
College for the fulfillment of BMS Degree.

Signature

Roll no

: 237

Examination seat no : 8666

Place

: Virar

Date

ACKNOWLEDGEMENT
I would like to sincerely thank the University of Mumbai for giving me this opportunity of taking
up such challenging project, which has enhanced my knowledge about THE MARKETING
STRATEGIES OF AMUL.

I will be failing in my duties if i do thank my professor MRS. SUBORNA BANERJEE for

her immense help and for providing constructive feedback and constant motivation I needed
it.

I would also like to thank my project guide MRS. SUBORNA BANERJEE without her
support, motivation, and suggestion this project would not have been possible.

INDEX

Sr.no

Topic
Sign

1.

Introduction

2.

History of AMUL

3.

ORGANISATIONAL STRUCTURE

4.

AMULS PRODUCT RANGE

5.

MISSION AND VISION OF AMUL

6.

THE DISTRIBUTION NETWORK

7.

SWOT ANALYSIS

8.

MARKETING STRATEGY (4PS)

9.

THE THREE TIER MODEL

10.

DATA ANALYSIS

11.

CONCLUSION

12.

BIBLIOGRAPHY

13.

Questionnaire

A PROJECT ON
MARKETNG STRATEGY

OF

AMUL INDIA

Introduction
ANAND MILK UNION LIMITED AMUL Is derived from
Sanskrit word AMULYA means invaluable.
AMUL Formed in 1946, its brand name managed by an
Indian cooperative organization, the Gujarat Co-operative Milk Marketing Federation
Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat,
India.
AMUL is based in Anand, Gujarat and is a cooperative
organization. White Revolution in India made Amul Indias largest producer of milk and
milk products in the world. It is also the world's largest vegetarian cheese brand. Amul is
the largest food brand in India and world's largest pouched milk brand with an annual
turnover of US$2.2 billion (2010-11). Currently Unions making up GCMMF have 3.1
million producer members with milk collection average of 9.10 million litres per day.
Besides
India,
Amul
has
entered
overseas
markets
such
as Mauritius, UAE, USA, Oman, Bangladesh, Australia, China, Singapore, Hong
Kong and a few South African countries. Its bid to enter Japanese market in 1994 did
not succeed, but it plans to venture again.

Name of Unit:
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNIONLTD. (AMUL)
.
Anand-388001Gujarat, India.
Location:
Kaira District Co-operative Milk Producers' Union LtdAmul Dairy RoadAnand. 388 001.
Nature of the company:
By nature the company is registered as Co-Operative Union Ltd. Sector and under a
Co-Operative Societies act,14th December 1946.
Slogan/Punch line:
THE TASTE OF INDIA

OBJECTIVE OF STUDY
The main objective of the study on this project is to demonstrate the marketing strategies
of Amul India Ltd.

To study the marketing strategy of AMUL

To study the distribution strategy of AMUL

To research on different strategy used by AMUL in branding
and advertising image.

To study the various strategy used by AMUL.

HISTORY

The Kaira District Co-operative Milk Producers' Union was registered on December 14,
1946
Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson
Dairy in Anand
Angered by the unfair and manipulative trade practices, the farmers of Kaira District
approached Sardar Vallabhbhai Patel, who advised the farmers to form a Cooperative
and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson (who
did the same but gave low prices to the producers)
The Cooperative was further developed and managed by Dr.Verghese Kurien along with
Mr H.M Dalaya. Dr.Kurien, a World Food Prize and Magsaysay Award winner, was the
pioneer of this White Revolution.
Indigenous research and development and technology development at the Cooperative
had led to the successful production of skimmed milk powder from buffalo milk for the
first time on a commercial scale anywhere in the world.
The establishment of Amul is also known as White Revolution.

DR. V. KURIEN
DR. V. KURIEN, FATHER OF WHITE REVOLUTION (1966)

Dr. Kurien, was the architect of India';s White Revolution, which helped India emerge as the
largest milk producer in the world. Founder Chairman of the National Dairy Development Board
(NDDB) from 1965 to 1998, the Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), from 1973 to 2006 and the Institute of Rural Management (IRMA) from 1979 to
2006, his professional life has been dedicated to empowering the Indian farmers through co-

operatives. Dr. Kurien has helped to lay the foundation of democratic enterprises at the grass
roots. He believed that by placing technology and professional management in the hands of the
farmers, the standard of living of millions of our poor people can be improved.
The cooperative movement, he helped to create became a model not only for India, but for
developing countries throughout the world. The Operation Flood Programme, of which Milk
Producers'; Cooperatives were the central plank, emerged as India';s largest rural employment
programme and unleashed the larger dimension of dairy development. Dr. Kurien was the
undisputed 'Milkman'; of India. Born on November 26, 1921 at Kozhikode, Kerala, he graduated
in Science from the Loyola College in 1940 and obtained hisdegree in Engineering from the
Guindy College of Engineering in Chennai. After a stint at TISCO, Jamshedpur, he obtained the
Govt. of India';s scholarship to study Dairy Engineering. After some specialized training at the
Imperial Institute of Animal Husbandry & Dairying, Bangalore, he left for the United States
where he completed his Masters degree in Mechanical Engineering with Dairy Engineering as a
minor
subject
from
the
Michigan
State
University
in
1948.
Upon his return to India, Dr. Kurien was assigned to a Government Creamery located at Anand
in Gujarat to serve his bond period. He arrived in Anand on Friday, the 13th May 1949. His only
intention at that time was to obtain a release from his bond and get out of Anand as quickly as
possible. At the end of 1949, when he got release orders from his job from the Government
Creamery, he was all set and eager to pack off to Mumbai. Shri Tribhuvandas Patel, the then
Chairman of Kaira District Co-operative Milk Producers Union (popularly known as Amul), with
whom Kurien had developed a friendship requested him to stay on in Anand for some more time
and help him put his co-operative society';s dairy equipment together. Kurien decided to stay
back
for
a
few
more
days
and
stayed
there
forever.
His forced tenure at Anand changed the destiny of Indian Dairy industry. He started helping the
fledgling
dairy
co-operative.
The
rest
is
history.
The first Dairy Co-operative Union in Gujarat was formed in 1946 with 2 Village Dairy Cooperative societies as its members. The number of member societies has now increased to
16,100, with 3.2 million members pouring milk every day- twice a day. Today, the Billion Dollar
GCMMF has emerged as the India';s largest integrated dairy products manufacturing and
marketing organization. NDDB, formed by the efforts of Dr. Kurien ensured replication of Amul
Model across India. Thereby, it played an instrumental role in increasing the milk production of
India significantly. India';s milk procurement has increased from 20 million metric tonnes per

year

in

the

60s

to

122

million

metric

tonnes

in

2011.

His work has received tremendous national and international recognition. The Govt. of India
conferred on him the "Padma Vibhushan", the second highest honour in the land next only to
Bharat Ratna. He is also the recipient of the World Food Price, the Ramon Magsaysay award for
Community Leadership, the Carnegie - Wateler World Peace Prize and the International Person
of
the
Year
award
from
the
U.S.
Dr. Kurien';s main contribution has been in designing of systems and institutions, which enable
people to develop themselves, as he believed the development of man can best be achieved by
putting in his hands the instruments of development.
The White Revolution of India inspired the notable Indian film-maker Shyam
Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish
Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five
lakh rural farmers in Gujarat who contributed Rs 2 each to the films budget. Upon its
release, these same farmers went in truckloads to watch 'their' film, making it a
commercial success.,[24][25] the film was chosen for the 1977 National Film Award for
Best Feature Film in Hindi.

ORGANISATION STRUCTURE

It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their
efforts.
Based in the village of Anand, the Kaira District Milk Cooperative Union (better known
as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the
Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection
centers and fourteen district level plants (unions) under the overall supervision of
GCMMF.
There are similar federations in other states. Right from the beginning, there was
recognition that this initiative would directly benefit and transform small farmers and
contribute to the development of society.
Markets, then and even today, are primitive and poor in infrastructure. Amul and
GCMMF acknowledged that development and growth could not be left to market forces
and that proactive intervention was required. Two key requirements were identified.
The first, that sustained growth for the long term would depend on matching supply and
demand. It would need heavy investment in the simultaneous development of suppliers
and consumers.
Second, that effective management of the network and commercial viability would
require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, a hierarchical network
of cooperatives was developed, this today forms the robust supply chain behind
GCMMFs endeavors. The vast and complex supply chain stretches from small
suppliers to large fragmented markets.
Management of this network is made more complex by the fact that GCMMF is directly
responsible only for a small part of the chain, with a number of third party players
(distributors, retailers and logistics support providers) playing large roles.
Managing this supply chain efficiently is critical as GCMMF's competitive position is
driven by low consumer prices supported by a low cost system.

AMUL'S PRODUCT RANGE

Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti
Dahi, Yoghurt, Buttermilk chocolate, icecream, cream, shrikhand, paneer, gulab jamuns,
flavored milk, basundi, Nutramul brand and others.

AMUL BUTTER : UTTERLY BUTTERLY DELICIOUS

AMUL BUTTER was the first product which was officially launched by AMUL in 1945.
It has been a market leader during the last 4 decades.
AMUL BUTTER is made from Butter, Common Salt, permitted natural colourAnnatto

Composition:

Milk Fat 80%

Moisture 16%
Salt 2.5%
Curd 0.8%

Calorific Value:
720 kcal./100g

Special Features:
Made from fresh cream by modern continuous butter making machines. Marketed in
India since 4 decades.

Product Specification:
Meets AGMARK standard and BIS specifications No.IS:13690:1992

AMUL TAAZA

Product Features

AMUL Milk is the most hygienic liquid milk available in the market.

It is pasteurized in state-of-the-art processing plants and pouch-packed to make it

conveniently available to consumers.

Product Application
Direct consumption, Making of: Tea or Coffee, Sweets, Khoa, Curd, Buttermilk, Ghee

AMUL ICE CREAM

Product Features

Made from Fresh Milk (Real Milk, Real Ice cream): No added vegetable oil, hence no
Frozen Dessert.

No Differentiation in Quality Standards of Consumer & Catering/ Institutional Packs:

Stringent Standards than Specified by PFA & BIS for fatter and less overrun (less air) to
give creamier feeling.

Best Ingredients: Fresh milk, superior fruits & nuts.

Manufacturing Facility: Made in ISO & HACCP certified state of the art plants with
stringent hygienic standards to ensure food safety.

Prolife & SUGAR FREE Probiotic: The first company in India to introduce probiotics in
ice cream (IDF Award for Best Nutrimarketing Category, Oct '07) & SUGAR FREE
Probiotic products.

In January 2006, Amul plans to launch India's first sports drink Stamina, which will be
competing with Coca Cola's PowerAde and PepsiCo's Gatorade.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool, a low
calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and
India's first sports drink Stamina.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation
Marketing Award for 2007

MISSION AND VISION OF AMUL

The Mission of AMUL, the dairy cooperative in India, is to spur the White
Revolution in the country and make India the largest producer of milk and
milk products in the world. The cooperative is shared between over 2.8
million dairy producers and the three-tier Amul Model has increased India's
milk
production
on
an
incredible
scale.
The White Revolution. The Amul Model was the main contributor to the
beginning of the White Revolution. The revolution led to India becoming the
country with the most milk production in the world. It also helped reduce
malpractices carried out by merchants and milk traders. The White
Revolution was a huge contribution to the alleviation of poverty and famine
levels from levels that were dangerously low.
The Three-Tier Amul Model. The cooperative structure of the Amul Model is
three-tier. The Village Dairy Cooperative Society is affiliated with the District
Cooperative Milk Producers' Union that, in turn, is linked with the State
Cooperative Milk Federation. This structure allows various functions to be
delegated across the three tiers. For example, milk collection is carried out at
the Village Dairy Society level, milk procurement and processing takes place
at the District Milk Producers' Union level and milk and milk products
marketing occurs at the State Milk Federation tier. Designating the functions
in such a way avoids the problems of internal competition and ensures that
the economies of scale are achieved.

 Impacts of the Amul Model. This three-tier model has led to India increasing
its production of milk by 40 million metric tonnes. The model has been
instrumental in improving the economy of India. However, it has also
introduced on a much bigger scale, an ingredient that has helped improve
the
health
and
nutrition
of
many
within
the
country.
The Amul model has been very successful in meeting its aim to increase
India's production of milk and milk products. The cooperative has had a huge
impact on the country's economy and spurred the White Revolution.
The Vision of Amul- The test of India is to be a part of everyone's life. And
Mission is expansion of distribution network, creative marketing, consumer
education and product innovation.

Amul is one of the oldest brands in the marketplace and consumers get
attracted to it. It is also the one to bring the co-operative movement in the
milk segment; like in rural villages of Gujarat and Rajasthan. It also enhanced
the financial position of rural women. Its vision is quality and unity.

Logo and branding

Amul has used the hoardings and advertising to perfection.

Taking cues from new films, celebrities, the creatives are fun to
watch. More over Amul has sticked with the creative messages
throughout.
50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in
1966 to over 25,000 tons a year in 1997. No other brand comes even close to it. All because a
thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is
out in the balcony drying clothes. From her second floor flat she can see her neighbours on the
road. There are other people too. The crowd seems to be growing larger by the minute. Unable to
curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects
the worst but can see no signs of an accident. It is her four-year-old who draws her attention to
the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in
Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of

discussion for the next one week! Everywhere we went somehow or the other the campaign
always

seemed

to

crop

up

in

our

conversation."

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from
strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to
love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked,
chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous
Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow,
holding

out

her

favourite

packet

of

butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much
so that the ads are now ready to enter the Guinness Book of World Records for being the longest
running campaign ever. The ultimate compliment to the butter came when a British company
launched

butter

and

called

it

Utterly

Butterly,

last

year.

It all began in 1966 when Sylvester daCunha, then the managing director of the advertising
agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945,
had a staid, boring image, primarily because the earlier advertising agency which was in charge
of the account preferred to stick to routine, corporate ads.
One of the first Amul hoardings
In India, food was something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha decided it was time for a change of image.
The year Sylvester daCunha took over the account, the country saw the birth of a campaign
whose

charm

has

endured

fickle

public

opinion,

gimmickry

and

all

else.

The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson
butter girl. This one was sexy, village belle, clothed in a tantalising choli all but covering her
upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who
would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester
daCunha. And so it came about that the famous Amul Moppet was born.That October, lamp
kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline
simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just a few
hours before the daCunha office was ringing with calls. Not just adults, even children were
calling up to say how much they had liked the ads. "The response was phenomenal," recalls
Sylvester daCunha. "We knew our campaign was going to be successful."

For the first one year the ads made statements of some kind or the other but they had not yet
acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would
give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in
good stead in the years to come.
In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement,
Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on
the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the
ad with a fervour that was almost as devout as the Iskon fever.
That was the first of the many topical ads that were in the offing. From then on Amul began
playing the role of a social observer. Over the years the campaign acquired that all important
Amul touch.
India looked forward to Amul's evocative humour. If the Naxalite movement was the happening
thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter,
cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be
there
again
saying,
Indian
Airlines
Won't
Fly
Without
Amul.
There are stories about the butter that people like to relate over cups of tea. "For over 10 years I
have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says
Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse
my grandchildren," she laughs. "They are almost part of our culture, aren't they? My
grandchildren are already beginning to realise that these ads are not just a source of amusement.
They
make
them
aware
of
what
is
happening
around
them."
Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not
to play it safe. There are numerous ads that are risque in tone.
"We had the option of being sweet and playing it safe, or making an impact. A fine balance had
to be struck. We have a campaign that is strong enough to make a statement. I didn't want the
hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian
Airlines one really angered the authorities. They said if they didn't take down the ads they would
stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says
laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The
high command came down heavy on that one. The Gandhi cap was a symbol of independence,
they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings
were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa
More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something
about removing the ad they would come and destroy our office. It is surprising how vigilant the
political forces are in this country. Even when the Enron ads (Enr On Or Off) were running,
Rebecca Mark wrote to us saying how much she liked them."
There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist
ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the

hoarding while passing through a small district in UP. He said he had asked his assistant to take a
photograph of himself with the ad because he had found it so funny," says Rahul daCunha in
amused
tones.
Indians
do
have
a
sense
of
humour,
afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree
that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue
to
tease
a
laughter
out
of
them.
Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That
we laugh because the humour is what anybody would enjoy. They don't pander to your
nationality or certain sentiments. It is pure and simple, everyday fun.
What I like most about the Amul brand is that they have 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

THE DISTRIBUTION NETWORK

Amul products are available in over 500,000 retail outlets across India through its network of
over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of
the entire range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the
cheque system adopted by other major FMCG companies. This practice is consistent with
GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also
minimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care of the transit time from the
branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return
on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated
vehicle operations.

Umbrella brand
The network follows an umbrella branding strategy. Amul is the common brand for most product
categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa
products, sweets, ice-cream and condensed milk.
Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The
edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal
Dhara brand while fruit drinks bear the Safal name.
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.
Managing the supply chain
Even though the cooperative was formed to bring together farmers, it was recognised that
professional managers and technocrats would be required to manage the network effectively and
make it commercially viable.
Coordination
Given the large number of organizations and entities in the supply chain and decentralized
responsibility for various activities, effective coordination is critical for efficiency and cost
control. GCMMF and the unions play a major role in this process and jointly achieve the desired
degree of control.
Buy-in from the unions is assured as the plans are approved by GCMMF's board. The board is
drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected
through village societies, thereby creating a situation of interlocking control.
The federation handles the distribution of end products and coordination with retailers and the
dealers. The unions coordinate the supply side activities.
These include monitoring milk collection contractors, the supply of animal feed and other
supplies, provision of veterinary services, and educational activities.
Managing third party service providers
From the beginning, it was recognized that the unions' core activity lay in milk processing and
the production of dairy products. Accordingly, marketing efforts (including brand development)

were assumed by GCMMF. All other activities were entrusted to third parties. These include
logistics of milk collection, distribution of dairy products, sale of products through dealers and
retail stores, provision of animal feed, and veterinary services.
It is worth noting that a number of these third parties are not in the organized sector, and many
are not professionally managed with little regard for quality and service.
This is a particularly critical issue in the logistics and transport of a perishable commodity where
there are already weaknesses in the basic infrastructure.
Establishing best practices
A key source of competitive advantage has been the enterprise's ability to continuously
implement best practices across all elements of the network: the federation, the unions, the
village societies and the distribution channel.
In developing these practices, the federation and the unions have adapted successful models from
around the world. It could be the implementation of small group activities or quality circles at the
federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at
the village society level.
More important, the network has been able to regularly roll out improvement programs across to
a large number of members and the implementation rate is consistently high.
For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of
GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their
various quality concerns.
Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process
check at the end to record how the meeting was conducted. Similar processes are in place at the
village societies, the unions and even at the wholesaler and C&F agent levels as well.
Examples of benefits from recent initiatives include reduction in transportation time from the
depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of
Zero Stock Out through improved availability of products at depots and also the implementation
of Just-in-Time in finance to reduce the float.
Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour
milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a

structured approach based on data gathering and analysis.) For example, Sabar Union's records
show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union.
The most impressive aspect of this large-scale roll out is that improvement processes are turning
the village societies into individual improvement centers.

SWOT ANALYSIS OF AMUL (GCMMF)

STRENGTHS
1. The company is having Indian origin thus creating feeling of oneness in the mind of the
customers.
2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality

confidence in the minds of the customers.

3. It is aiming at rural segment, which covers a large area of loyal customers, which other
companies had failed to do.
4. People are quite confident for the quality products provided by Amul.
5. Amul has its base in India with its butter and so can easily promote chocolates without fearing
of loses.
6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

WEAKNESSES
1. There are various big players in the chocolate market, which acts as major competitors
restricting their growth.
2. Lack of capital invested as compared to other companies.
3. Improper distribution channel in India.

OPPORTUNITIES
1. There is a lot of potential for growth and development as huge population stay in rural market
where other companies are not targeting.
2. The chocolate market is at growth stage with very less competition so by introducing new
brand and intensive advertising there can be a very good scope in future.

THREATS
1. The major threat is from other companies who hold the majority share of consumers in Indian
market i.e. CADBURY and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently shift their
brands.
3. New companies entering in Indian market like Fantasie fine poses lot problems for Amul.

AMUL MARKETING STRATEGY (4ps)

PRODUCT
Create awareness about its different brands thereby enabling the customer to differentiate
between its various brands.

Copy-write the packaging design to preserve the distinguishing identity barring competitors
fromimitating the same.

Introduction of larger volume pouches in line with economy packs to provide large scale buyers
price benefits.

Different shaped pouches for its products for easy identification, e.g Square shaped pouch for
AmulTazaa, rectangular shaped for Amul Gold, etc.

PRICE: AMUL PRICING STRATEGIES

At the time 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.

Rs.87

PLACE: A GLOBAL DISTRIBUTOR

Rs.18

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 9 years.
Currently Amul has 2.41 million producer members with milk collection average of 5.08 million
litres/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 [6]. Other potential markets being considered include Sri Lanka.

PROMOTION: INITIAL PROMOTIONAL STRATEGY

The butter, which had been launched in 1945, had a staid, boring image, primarily because the
earlier advertising agency which was in charge of the account preferred to stick to routine,
corporate ads. They didnt help in creating a brand image of AMUL butter which was their then
motive. The image they presented was, well, boring

4 MAIN STRATEGIES OF AMUL

First is quality. No brand survives long if its quality does not equal or exceed what the buyer
expects. There simply can be no compromise. Thats the essence of the contract. In the case of a

food product, this means that the brand must always represent the highest hygienic,
bacteriological and organoleptic standards. It must taste good, and it must be good.
Second, the contract requires value for money. If our customer buys an Amul product, she gets
what she pays for, and more. We have always taken pride in the fact that while we earn a good
income for our owners the dairy farmers of Gujarat we dont do it at the cost of exploiting the
consumer. Even when adverse conditions have reduced supplies of products like butter, we have
resisted the common practice of raising prices, charging what the market would bear. Rather, we
have kept prices fair and done our best to ensure that retailers do not gain at the consumers
expense.
The third element of the contract is availability. A brand should be available when and where the
customer wants it. There is no benefit achieved in creating a positive brand image, and then
being unable to supply the customer who wants to buy it. In our case, over the years we have
built what is probably the nations finest distribution network. We reach hundreds of cities and
towns through a cold chain that not only ensures that our products are available, but they reach
the customer at the farthest end of the country with the same quality as you would find in
Ahmedabad or Vadodara.
The fourth part of the contract is service. We have a commitment to total quality. But,
occasionally, we may make a mistake or, our customer may think weve made a mistake, and
the customer, as they say, is always right. That is why, for Amul, every customer complaint must
be heard not just listened to. And, every customer complaint must be rectified to the extent
humanly possible.
For close to fifty years now, Amul has honoured its contract with the consumer. The contract that
is symbolised by the Amul brand means quality. It means value for money. It means availability.
And it means service.

DEVELOPING DEMAND

At the time 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.
Amul follows a unique business model, which aims at providing 'value for money' products to its
consumers, while protecting the interests of the milk-producing farmers who are its suppliers as
well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run
for their money.

THE THREE TIER MODEL

The Amul Model is a three-tier cooperative structure:

Dairy Cooperative Society (village level )
Milk Union (District level)
Milk Federation (State level)

The above three-tier structure was set up in order to delegate the various functions, milk
collection is done at the Village Dairy Society, Milk Procurement & Processing at the District
Milk Union and Milk & Milk Products Marketing at the State Milk Federation.

THE IMPACT OF AMUL MODEL

It has been proved that an investment of Rs. 20 billion over 20 years under Operation
Flood Programme in 70s & 80s has contributed in increase of Indias milk production by
40 Million Metric Tonne (MMT)

Due to this movement, the countrys milk production tripled between the years 1971 to
1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973
to 222 gms per day in 2000

These dairy cooperatives have been responsible in uplifting the social & economic status
of the women folk in particular as women are basically involved in dairying while the
men are busy with their agriculture. This has also provided a definite source of income to
the women leading to their economic emancipation.

The three-tier Amul Model has been instrumental in bringing about the White
Revolution in the country. As per the assessment report of the World Bank on the Impact
of Dairy Development in India, the Anand Pattern has demonstrated the following
benefits:

o have multi-dimensional impacts

o The importance of getting government out of commercial enterprises
o The importance of market failure in agriculture
o The power & problems of participatory organisations
o The importance of policy

ADVERTISING

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising
agency AS to design a new ad campaign for Amul Butter.

daCunha designed an ad campaign as series of hoardings with topical ads, relating to dayto-day issues.[ The campaign was widely popular and earned a Guiness world record for
the longest running ad campaign in the world.

Since the 1980s, cartoon artist Bharat Dabholkar has been involved with sketching the
Amul ads, who rejected the trend of using celebrities in advertisement campaigns.
Dabholkar credited chairman Varghese Kurien with creating a free atmosphere that
fostered the development of the ads.[

Despite encountering political pressure on several occasions, daCunha's agency has made
it
a
policy
of
not
backing
down.
Some of the more controversial Amul ads include one commenting on Naxalite
uprising in West Bengal, on the Indian Airlines employees strike, and the one depicting
the Amul butter girl wearing a Gandhi cap

Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, icecream.

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. This formed a large chunk of the
collective memory of us Indians. We grew with them as the ads grew with us. They are quirky,
poke fun at no one in particular and are pure eye-candy! We almost admire the speed with which
the ad-people come up with copy and illustration for the ads, that change every few days!!
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree
that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue
to tease a laughter out of them
The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness
records for being the longest running ad campaign ever.

DATA ANALYSIS
1. Gender

Male

Female

Column1
100
90
80
70
60
Column1
50
40
30
20
10
0
MALE

Age

18 to 25yrs

FEMALE

26 to 35yrs

46 to 55yrs

More than 55yrs

Series 1
60

50

40
Series 1
30

20

10

0
18-25

Occupation

26-35

46-55

more than 55

Student

Business owner

Retired

Office worker

Series 1
40
35
30
25
Series 1
20
15
10
5
0
STUDENT

Personal income

BUSINESS OWNER

RETIRED

OFFICE WORKER

10000 to 20000

20000 to 30000

Above 30000

Series 1
50
45
40
35
30

Series 1

25
20
15
10
5
0
10000-20000

20000-30000

ABOVE 30000

Do you use AMUL products?

Yes
No

Series 1
80
70
60
50
Series 1
40
30
20
10
0
YES

NO

How would you rate AMUL as products?

Below Average
Average
Above Average
GOOD

Series 1
70

60

50

40

Series 1

30

20

10

0
BELOW AVERTAGE

AVERAGE

ABOVE AVERAGE

GOOD

Which FMCG brand you prefer?

MAHANANDA
AMUL
NESTLE
MOTHER DAIRY

Series 1
50
45
40
35
30
Series 1
25
20
15
10
5
0
MAHANANDA

AMUL

NESTLE

MOTHER DAIRY

What things you keep in mind while purchasing AMUL products?

Quality
Price
Design

Series 1
80
70
60
50
Series 1
40
30
20
10
0
QUALITY

PRICE

DESIGN

RATE THE AMULPRODUCTS FROM 1 TO 5 POINTS IN FOLLOWING ASPECTS:

Quality
Quantity
Brand
Price

Series 1
40
35
30
25
Series 1
20
15
10
5
0
QUALITY

QUANTITY

BRAND

PRICE

CONCLUSION
This company project has demonstrated MARKETING STRATEGY OF AMUL that
has proved to be extensive through, and of great benefit to the companying furthering its
competitive advantage. It also helps the company for building its future planning and
targeting the customers for more satisfaction through its innovative product. I n t h i s
p r o j e c t i t p o s s i b l e t o s e e t h e s u c c e s s o f A M U L s i n i t s indorse its
strong potential to continue to do well and also gives the ways to maintain its market
potential.

AMUL is one of the best known brands in the world today. It is a brand which is associated with
high levels of quality and customer satisfaction.
The ongoing growth of AMUL products provides a flagship that further helps to enhance the
reputation of the AMUL Masterbrand. At the same time, it provides customers with the
opportunity to indulge themselves in the enjoyment of high quality products in a welcoming
environment.

BIBLOGRAPHY

BOOKS
AMULS INDIA by Gujarat co-operative milk marketing

Website
www.amul.comwww.amuldairy.org
www.amul.com
Newspaper

The Times Of India

The Economic Times