IILM Graduate School of Management, Greater Noida

Market Research Project

On
Amul Ice Cream

Prepared By: Submitted To:

Rishabha Jain Dr. Smitha Girija
Sweta Kumari Dr. Shweta Nanda
Prakhar Shukla
Prakash Ch. Pradhan
Ishu Bhalia
Content
1. Introduction
2. History
3. Vision
4. Mission
5. Market share
6. Environmental Scanning
7. Segmentation
8. Targeting
9. Positioning
10.Marketing mix (4’s)
INTRODUCTION

Amul is an Indian Dairy Cooperative stands for Anand Milk Union cooperative based on
Anand ,Gujarat India. Amul is formed in year 1946 . Amul is a Cooperative was created by
Dr. Verghese Kurein who is also known as the father of the White Revolution in India .
Amul is managed by Gujarat Cooperative milk marketing federation Limited
(GCMMF) which is jointly owned by more than 3.6 Million milk producer of Gujarat. It
operates through 61 Sales Offices and has a dealer network of 10000 dealers and 10 lakh
retailers, one of the largest such networks in India.

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. Amul ice cream was
launched on the platform of ‘Real Milk. Real Ice Cream’ which gives company advantage
over the competitors. 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.
In January 2007, Amul introduced SUGAR FREE & Prolife Probiotic Wellness Ice Cream,
which was a first in India. .Amul’s ice creams was able to capture large market share within
a short period of time – due to price differential, quality of products and of course the brand
name.

Amul has been awarded the Guinness World Record for the longest running advertisement
campaign. Amul has been given the award of ‘MARKETER OF THE YEAR’ 2018 BY
IAAI (International Advertising Association of India).
History
Amul started with the objective to provide marketing facilities to the milk producers of the
district. As milk market in kaira village was controlled by contractors and middlemen, as
contractors/middlemen used to buy their products at a lower price from the farmers and sell
them at a huge profit. Government didn’t take any initiative to fix the price of milk to be paid
to the producers; because of this the farmers were highly dissatisfied. They went in
deputation to Sardar Patel, as Sardar Patel suggested them to start their own cooperative with
their own pasteurization plant. In case their demand was rejected then they refused to sell
their products to middlemen and ready to face losses, the farmers went on a strike for 15
days which lead to beginning of “Kaira District Cooperative milk producers Union Limited”,
Anand. It was formally registered on December 14th, 1946.In the initial year just handful of
farmers in two village produced 250 liters a day , but by the end of 1948, 432 farmers joined
the village society which gradually led to increase in milk production as there were excess
supply so they have to set up a plant.

Vision
Amul ‟s vision is to provide satisfaction to the farmers, distributors and employees..

Mission
“ We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor to satisfy the
tasteand nutritional requirements of the customers of the world, through excellence in
marketing byour committed team. Through co-operative networking, we are committed to
offering quality products that provide best value for money.”

Business Profile
Amul is an Indian cooperative dairy company, which produce edible dairy products. Various
products offered by Amul are –
1. Bedspreads- Amul butter, Amul Lite, Delicious Table Margarine
2.Cheese range- Amul Pizza Chesse, Amul Gauda Cheese, Amul Malai paneer
3.Fresh Milk- Amul Gold Full cream Milk, Amul Shakti Standardized Milk, Amul Slim and
Trim
4.Milk Powder- Amulaya Dairy Whitener, Sagar Skimmed Milk Powder.
5.Milk Drinks-Amul Kool flavored Milk, Amul Kool Koko, Nutramul Energy Drink.
6. Health Drinks- Stamina Instant energy drink.
7. Brown Beverage- Nutramul malted milk food.
8. Curd Products-Amul Masti Dahi , Amul Masti Spiced Butter Milk, Amul Lassi
9.Pure Ghee-Amul Pure ghee, Sagar Pure Ghee
10. Sweet Condensed Milk –Amul mithaimade
11. Mithai Range- Amul shrikhand, Amul mithai Gulabjamuns, Amul Basundi
12. Ice-Creams-Sundae range, Probiotic , sugar free and probiotic
13.Chocolate and Confectionary-Amul milk chocolate,Amul fruit & nut chocolate , Amul
Fundoo
Market Share of Amul Ice-
cream
Product like ice cream largely depend on
impulse buying. At Rs.10,000 crore, the ice
cream (including frozen desserts) market has
been growing at 15-20% every year over the
past five years. Amul has 14% share and it’s
the market leader . Top Competitors of Amul
ice cream are Kwality walls(8%) , Cream
bell(6.5%), Vadilal(6%), Mother Dairy(4.5%),
Havmour(4%), Arun(4%), Baskin Robbins
(1.25%).The estimated turnover is Rs. 800
crores.
Environmental scanning (PESTEL Analysis)
Political:
1.Delicensing of Dairy Sector 1991
2.100% FDI allowed
3.Cut in import duties of Milk products
4.India high GDP growth rate implies increase in per capita income of people and thus more
increase in demand for food products Expansion plans:

• Cost of implementation of system

• Break even for the investment

Economical:
1. NDDB gives Loan at 0% interest rate and also development branch at lower interest
rates
2. India high GDP growth rate in price increase in per capita income of people and the
more consumption of food items

Social:
1. Lifestyle fast food culture caters more demand for ice cream.
2.Culture custom off morning the more estimated to milk and milk product
3.Demographic growing youth population & Children , helped more consciousness for Amul
Icecream

Technological:
1.Automation process Technology HACCP and ISO TQM
3.E-Commerce GIS enter innovation in cold chain Technology
4.National Dairy Research Institutes

Environmental Factors:
The product is not made out of any unnatural composition. The base of every product
of Amul is milk, which is not harmful for the environment. So there are no threats to the
cooperative society in respect of environmental factors.

Legal Factors:
The legal factors which are opportunity for Amul are PFA act, Trademarks, Industrial
Development & Regulation Act. There are also threats like Child Labor (ILO).
SWOT Analysis-
Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Amul Ice
Cream.

Strengths:
1. Good product range having various flavors, party packs, sticks, cones etc
2. Good quality , packaging and good advertising
3. Amul is one of the most respected brands
4. Launched probiotic and sugarfree ice-creams
5. Offers over 200 products across India

Weaknesses:
1. Growing competition from international and other brands means limited market share
2. Limited international presence as compared to the other leading global brands

Opportunities:
1. Tap the High end ice cream for the high income group.
2. Tie-up with food chains, restaurants
3. Mobile vans for better visibility

Threats:
1. Kulfi in rural markets
2. Local ice creams and sweet dishes
3. Health conscious people refraining from sweets
STP (Segmentation, Targeting & Positioning)
Segmentation & Targeting-
Geographical segmentation: Small towns are the largest Ice-Cream market as 70% of
population resides in the rural areas. Amul ice-cream is available today in over 40 countries
of the world. They mostly sells 60% stock in the summer season. They mostly target the city,
town, crowded place and the village areas.

Demographic segmentation: Age is a relevant demographic factor for ice-cream buyers. It

target every age group people. It have ₹ 10 , ₹ 15, ₹ 20, ₹25 of Ice-cream for every income
level of people. Amul has different variant of ice-cream to cater different segment like a
kids are more likely to choose fruit flavored candy bar compared to cups ice-cream . Also,
women are more likely to buy certain Ice-cream flavors than men. The premium ice-cream
market, in particular, has been expanding on the back of consumer’s desire for a richer
experience both in terms of taste and value for money. They target the 18-22 age group,
which forms 51% of Indian consumers.

Psychographic segmentation: Psychographics divides the market into groups based on

lifestyle and personality. As most of the people are today becoming health and calorie
conscious. Amul wanted to capture the health conscious market segment of ice cream
consumers to launch of its specially created Probiotic wellness & Sugarfree ice cream to
convert non-consumers of ice cream into eaters but also increase the frequency of ice cream
eater It expects to get 10 per cent additional growth only through the Probiotic range. Since
the company will be 1st to introduce the innovation, developed in-house, it expects to build
the market and capture the entire market for Probiotic ice cream.

Behavioral segmentation: Behavioral segmentation divides the market according to how

they use the product. For Ice-cream in summer season, benefit provided by ice-cream market
in summer season is different than other seasons like rain and winter because in summer
season’s hot weather. As family pack of Amul ice-cream is used in festivals, parties and
marriages.
Positioning
As Amul has always enjoyed a top of the mind positioning ,Amul Ice-cream positioned
itself as : “Real milk Real ice- cream . In the starting Amul positioned itself as a quality
based made from real milk and thus best in taste. Now amul ice-cream positioned itself
according to the change in change in consumer choices and psyche about the health.

Amul meant different things to different people :

To a Milk Producer … A life enriching experience
To a Consumer … Assurance of having wholesome milk
To a Mother … A reliable source of nourishment for her child
To the Country … Rural Development and Self Reliance
MARKETING MIX (4’s)
PRODUCT
Amul ice cream also captured a large amount of share in India. They have various variants
in the product like stick, novelties, cones, kulfi, cup, take home etc.

Amul ice-cream chain started in 1996 on Gujarat and gradually it become national In January
2007, the first time they introduced sugar free and profile probiotic wellness ice cream as
their main focus is on the health then taste. The ice cream made from fresh milk and super
fruit and nut and they also give all the information related to nutritional information as they
made in ISO and HACCP certified state of art plants with hygiene standards for food safety.

Product Mix
Product life cycle
Introduction stage: This is the most expensive stage where the new product is launched.
Size of the market is small, which depicts sales are low, although they will be increasing.
Currently, they introduced Amul Epic.

Growth Stage: this is the stage where they are growing in the market by focusing on the
health and after then they focus on the taste of the product . Sugar free, Amul Prolife
Probiotic ice creams.
Maturity: This is the stage where the ice licks and the cup ice cream are in this stage with
different flavors.

Decline: The market share of Amul was declining , since there was a lot of competitors in
major metro cities. To return into the market, they introduced Prolife Probiotic and Epic ice
creams.

INDUSTRY LIFE CYCLE:

Amul Ice Cream lies in the Maturity Stage . It is a established band with butter and milk
products, ice cream who are growing rapidly as the real milk is provided by them and they
are enjoying the maturity stage. It created its name in the market, with enough customer
loyalty and to expand its market share they are coming up with new variants in the form
flavours and size of the packages.

Design and Packaging

They use the different packaging for the varieties of the ice cream . High quality and eye
catching packaging is used to attract children with various colours like red , orange , pink,
yellow etc. Amul has various portfolios like stick , cup , novelties, cone,box,
PRICE
Amul is a brand that kept a market-oriented pricing policy to sell its products. They believe
in mass consumption and kept their prices in such a way that people can purchase and afford
it. Their products sold in rural, semi-urban, urban areas at different prices.
They adopted a penetration pricing policy which kept its prices lower as compared to the
other competitors. The brand maintains the low price strategy that’s why this ice cream
easily available. They provide discounts and incentives to their customers to attract them. For
example, EPIC ice cream is launched by Amul and its competitors with the same basic
ingredients Belgian chocolate but because of low pricing strategy resulted in the mass sales.

BCG Matrix and Analysis

Amul Ice cream is fall into the stars where the market growth rate and share are high . The
Amul ice cream has the highest share in the market who almost captures the 14 % in the
ice cream industry in India and holds a good potential to grow in the future as well.

PLACE
Amul ice cream is available at 800 cities/ towns across India at Amul outlets, parlors, retail
shops, vending pushcarts, hotels, restaurants, canteens, caterers, etc. Amul has 14 plants in
which 5are in Gujarat. The plan is to have 3 more plants, which will be in Pune, Kolkata, and
one in South. There are
Different distribution channels through the products are delivered to the customer directly or
through retailers or wholesalers and vending of ice-cream done in tourist places, historical
monuments, hill stations, railway stations, bus stands, schools, gardens, playgrounds, etc.

PROMOTION
Amul follows minimum exposure to electronic media and high on sales promotion. Initially,
they showed is commercials for products like Amul tritone, real milk cream, frost &
premium icecreams. However now we cannot see any commercial for these icecream . Amul
has started giving offers life super saver packs 1 + 1 to lure the consumers. it does not
spends more than 1% of its revenue on promotions as it would directly influence the
cost of product
Amul company as a whole with its advertising partner FCB-ULKA puts its hoardings which
are famous for their Satirical take on current happenings for its complete basket of products
including Ice-cream. Amul is the official sponsor to many reality shows like MasterChef
India, Dance India Dance, Sa-re –Ga-ma, STAR Voice of India. Amul has also started its
reality show to promote their brand and product. It has also promoted itself by showing the
difference between real milk ice cream and frozen desserts of Kwality walls in the year 2017.

Marketing strategies and innovations:

 The Amul girl- a cartoon figure, is used by the company to promote their brand,
generally uses the current news scenario with a bit of sarcasm and wit for their
promotion which usually connects with the audience well
 Amul do not endorse any public figure so that they can directly connect with
the consumer. Amul ads are captivating in itself. The appeal of the ad lies in its
simplicity. There is clarity in the message.
 As Amul promoted their icecream this summer near metros by ad agency FCB Ulka,
through its campaigns based on its `Ice-cream Mood' survey is helping the brand gain
acceptance in the new markets with a focus on the take-away home segment.
  They have released a line of films that are only advertised on the digital
mediums as it’s easy to tell stories in longer duration than with the time
limitation as on televisions.
 There ads are emotional stories centered around typical families with funny
twists most times like-

• Har Ghar Amul Ghar – Is a drama comic on parenting

• Pahla Pyaar, Amul Pyaar – Is about how 2 teens fall in love
• Har Bachpana Amul Bachpana – Is on how grandparents are still like kids
• Har Dosti Amul Dosti – Is on the friendship of 3 Old People
• Har Umar Amul Umar – Is on neighbours of different age (kid and an older uncle)
and how they get close

• Har Ghar Amul Ghar – Pyara Bandhan is on sister’s love for the newborn baby .

Innovation: Amul has always been known for coming up with new innovative
products for different customer segments. For its continuous innovation, the brand
won the “CNN-IBN Innovating for Better Tomorrow Award” and “World Dairy
Innovation Award” in the year 2014. The three-tiered Amul Model helped the
cooperative to change from its traditional methods to more efficiently functioning one.

The Brand: Branding helps to its identity the product in the market. Amul ice cream uses
corporate brand name as an umbrella brand to market the ice cream product range .As they
promote all their products under one common brand name – Amul, it allows to gain
more brand visibility and results in lesser marketing and advertising costs. Having a
top of the mind positioning, excellent supply chain channels, Amazing product line,
and the low pricing strategy have all helped the brand grow. The ice creams are
promoted and advertised under the Amul company which itself is a brand. There are not any
sub-brands. The ice cream is promoted and advertised as the ‘Amul Ice Creams’.
Consumer Insights of Field Study
Location Income (Approx.) Age Customer
Per Month Group Review
(In Years)
Ansal Plaza 25k-30k (Female) 20-25 They prefer Amul
Ice Cream over
other brands
because of
quality, quantity
and brand name.
Ansal Plaza 30k-40k (Male) 25-30 They prefer
Mother Dairy and
Kwality Walls
because of taste.
Ansal Plaza 50k-60k (Male) 55-60 He prefers Kwality
Walls (Cornetto)
because of his
family
preferences.
Ansal Plaza NIL (Female) 10-12 She prefers
mother dairy
because of taste
but her family
prefers amul ice
cream.
Jagat Farm NIL (Housewife) 35-40 She prefers amul
ice cream because
of the quality and
value for money.
Jagat Farm 8k-10k 45-50 He prefers mother
dairy over amul
because of taste.
 Retailer Insights
Location Income Review
(Approx.)

Jagat Farm - They keep mother dairy

(General Store) because they provide free
refrigerator, as for amul they
have to pay some premium
amount.
Jagat Farm 10k-12k Amul maintain a good
(Amul Push relationship with their
Cart) employees and also provide
15% commission to them.
Reliance Fresh - They keep maximum stock of
Kwality walls as it is more in
demand.

Conclusion of the field study

Some of the customers in Greater Noida prefers Mother Diary and kwality walls mostly
because of taste. People who prefer Amul ice cream because amul provide quality, quantity
and value for money .
Most of the general store retailers keep mother dairy ice cream because they do not have to
pay any premium amount for the refrigerators. As the general store has to keep only their
product .
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