Sunteți pe pagina 1din 22


Amul is an Indian cooperative dairy company, based at Anand in the state of Gujarat. Formed in 1956, it is a
cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat. Amul spurred India's
White Revolution, which made the country the world's largest producer of milk and milk products.

Amul was spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel. As a result, Kaira District
Milk Union Limited was born in 1946. Tribhuvandas became the founding chairman of the organization and
led it until his death. He hired Dr. Verghese Kurien in 1949. He convinced Dr. Kurien to stay and help with
the mission.

Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success
of Amul's marketing. Amul has ventured into markets overseas. As Amul is recognised as the country’s
largest milk producing cooperative it has tied up with global supermarket chain Walmart to sell its range of
dairy products and have also tied up with Glaxo over the production of baby food in India. It also sells its
products to Nepal. Now India is looking to capture neighbourhood markets like Pakistan, Bangladesh etc


Number of Producer Members 7,64,954

Number of Village Dairy Cooperative Societies 1821

Total Milk Handling Capacity 5 Million liters per day

Milk Collection (Daily Average) 3.3 Million liters

Milk Drying Capacity 150 Mts per day

Whey Drying Capacity 60 Mts per day

Cattle Feed Manufacturing Capacity 3000 Mts per day


Milk, The inspiration behind a revolution.

Over seven decades ago the milk marketing system was controlled by contractors and middlemen. As milk is
perishable, farmers were compelled to sell their milk for whatever they were offered. They were in general
illiterate. But they could see that the system under which contractors could buy their produce at a low price
and arrange to sell it at huge profits was just not fair. This became more noticeable when the Government of
Bombay started the Bombay Milk Scheme in 1945. The Government of Bombay entered into an agreement
with Polsons Limited to supply milk from Anand to Bombay on a regular basis. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated farmers’ co-operatives as early as 1942.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk co-operative –
and a milk strike if necessary. This marked the beginning of the Kaira District Co-operative Milk Producers’
Union Limited, Anand. It was formally registered on December 14, 1946. Kaira Union introduced the brand
“Amul” for marketing its product range. The word “Amul” is derived from Sanskrit word ‘Amulya’ which
means ‘priceless’ or precious’. 1964 was the turning point in the history of dairy development programme in
India. Late Shri Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31s October for
inauguration of Amul’s Cattle Feed Plant, having spent a night with farmers of Kaira and experiencing the
success wished and expressed to Mr Kurien, then the General Manager of Amul. In 1970, it spearheaded
the White Revolution of India. To combine forces and expand the market while saving on advertising and
avoid competing against each other, the Gujarat Co-operative Milk Marketing Federation Ltd., an apex
marketing body of these district cooperatives, was set up in 1973. The GCMMF is the largest food products
marketing organisation of India. It is the apex organisation of the dairy cooperatives of Gujarat

Sales Turnover Rs (Million) US $ (in million)

2004-05 6000 138

2005-06 7090 160

2006-07 8220 202

2007-08 10770 272

2008-09 13780 310

2009-10 16950 360

2010-11 21110 469

2011-12 24660 528

2012-13 28500 528

2013-14 34410 574

2014-15 41420 681

2015-16 48250 736

2016-17 57000 900

2017-18 62560 963

2018-19 69660 1009


You will be pleased to note that the turnover for the year 2018-19 surpassed Rs.69660 million which is highest
ever since history. This is 11.35% higher as compared to previous year’s turnover of Rs.62560 million. The
company has achieved this growth in business across all operations including Kolkata, Mumbai, Pune units.


“We the motivated and dedicated workforce at Amul are committed to produce wholesome and safe foods of
excellent quality to remain market leader through development of quality management system, state of
art technology, innovation and eco-friendly operations to achieve delightment of customers and milk


Amul has a vision to provide more and more satisfaction to the farmers, employees and distributors.

TAGLINE: THE TASTE OF INDIA – These four words are more than what the common man may think of
these – a mere slogan. Advertising people call this corporate positioning. But jargon apart these four words
lend meaning to Amul's never ending crusade; they reinforce Amul's commitment of taking quality food
products right down to the rural man, products, the common man otherwise would have never afforded. It
was Amul that first made chocolate affordable to the 'aam admi', then followed the same with Ice Cream,
pizza and a gamut of value added products.

LOGO: AMUL GIRL refers to the advertising mascot used by Amul, an Indian dairy brand. The Amul girl
is a hand-drawn cartoon of a young Indian girl dressed in a polka dotted frock with blue hair and a half pony
tied up. The Amul girl advertising has often been described as one of the best Indian Advertising concepts
because of their humour. The Amul girl was created as a response to Amul's rival brand Polson's butter-girl.
The idea was conceived in 1967 once ASP (Advertising, Sales and Promotion) clinched the brand portfolio
from the previous agency FCB Ulka.



The core values of the company are as follows:

 To provide remunerative returns to the farmers.

 To give best quality products to the consumers.
 To provide products to the consumers at best possible prices.
 To surpass customer expectation consistently.

The Amul model of dairy development is a three- tiered structure with the dairy cooperative societies at the
village level federated under a milk union at the district level and a federation of member union at state

The Amul model has helped India to emerge as largest milk producer in the world. More than 16 million
milk producers pour their milk in 185903 dairy cooperative societies across the country.

Their milk in processed in 218 District cooperative milk unions and marketed by 28 State Marketing
Federation, ensuring a better life for the millions of people.

Amul is a name we have all grown up hearing. That utterly butterly delicious smell of it has sometimes even
made us leave our beds and run to the kitchen. The Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF) is India’s largest food product marketing organization and Amul is a brand managed by them.
The Marketing strategy of Amul covers various aspects of the business right
from segmentation and targeting to the overall mission and vision of the company and the various parameters
which the company executes to become the top brand that it has in the market. So what is
the marketing strategy of Amul? Let us discuss.



 SEGMENTATION: Market segmentation is the activity of dividing a broad consumer or business

market, normally consisting of existing and potential customers, into sub-groups of consumers based
on some type of shared characteristics. The segmentation of Amul is the mass population and in
general, you will find people of all different age groups and demography enjoying Amul products. As
it has a very deep product portfolio, it does not differentiate in its customers but uses a mass
marketing principle. And till date, this principle has worked very well for the marketing strategy of

 TARGETING: A target market is a group of consumers or organizations most likely to buy a

company's products or services. The selection of potential customers to whom a business wishes to sell
products or services. The targeting strategy involves segmenting the market, choosing which segments
of the market are appropriate, and determining the products that will be offered in each segment.
Similarly, the target audience of Amul are the regular middle class people. This is because higher end
customers do have a lot of high end products as an alternative in ice cream. However, for other
products like Butter and cheese, both high end and low end customers are the target.

 POSITIONING: Positioning refers to the place that a brand occupies in the minds of the customers
and how it is distinguished from the products of the competitors. Once a brand is positioned, it is very
difficult to reposition it without destroying its credibility. Basically, it refers to the ability to influence
consumer perception regarding a brand or product relative to competitors.  In terms of positioning,
Amul has top of the mind positioning because it is the first brand which comes in mind when talking
of Ice cream, milk, cheese, butter or any other milk based products.

 THE BRAND: 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.

 PRODUCT PORTFOLIO: Amul has a diversified product portfolio and has been able to cater to
the needs of all the segments from kids to old alike. The list of products which Amul contains are:

 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
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.
 PRICING STRATEGY: Amul always catered to the needs of all economic segments without any
compromise on their product quality.  Products that cover a huge market segment and are used on the
daily basis like milk, ghee, ice-cream, cheese, butter are tried and provided at rates lesser than that of
their competitors. With the rise in the Indian economy, transportation cost, storage cost, labour cost
etc. have piled up but still, Amul provides quality products at a fair and affordable price in
comparison to its competitors, thus emerging as the most preferred brand. 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.

 EFFICIENT SUPPLY CHAIN MANAGEMENT: The Amul model is a three-tier cooperative

structure which consists of a dairy cooperative society at the village level that is affiliated with milk
unions at the district level which in turn is federated to a milk federation at the state level. Milk is
collected at the village dairy society, procured and processed at the district milk union and marketed
at the state milk federation. The model was found to be so amazing that Dr. Verghese Kurien was
asked to replicate this model all over the country under Operation Flood in the 1970’s as this model
had the efficiency and swiftness in its operations. The Amul model has helped India become the
largest milk producer in the world. Amul has effectively managed both upstream and downstream
partners in establishing one of the most complex supply chains across the globe. The producers bring
milk to the village cooperatives (foot/bicycle), which is then transported to the unions by specialised
 ADVERTISING CAMPAIGN: Amul has been awarded the Guinness World Record for the longest
running advertisement campaign. The Amul girl- a cartoon figure is used by the company to promote
their brand. Amul generally uses the current news scenario with a bit of sarcasm and wit for their
promotion which usually connects with the audience well. Amul’s Utterly Butterly girl has managed
to keep her fan following intact and on 17 October 2016, celebrated 50 years from when she first
appeared in the topical ad titled “Thoroughbread”.


For five decades now, Amul’s blue-haired girl in a polka-dotted frock has remained relevant by commenting
on the most current issues and significant events with witty humour and timely punch lines. 
As Amul has always enjoyed a top of the mind positioning, it does not spends more than 1% of its revenue
on promotions as it would directly influence the cost of product. Amul has released a LINE OF FILMS that
are only advertised on the digital mediums:

 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.

Amul Milk adverts have the tagline “AMUL DOODH PEETA HAI INDIA (INDIA DRINKS THE
AMUL MILK)”. There are commercials which encourage the children to drink the milk and they say
“Amul raises a glass to child power”. Its latest ad (2018) points at being hygienic and buying hygienic
products that are well packed; hence with the tagline “DOODH KA PACKET, SAFETY KA JACKET”
.In 1970, Amul released its first television ad. It showed how a person in library begins to eat his toast with
the spread of Amul Butter on it. But due to his noisy eating in the library, the librarian is seen taking away
his tiffin and not returning on even after repeated requests. Later, however, she is seen saying “Rules may be
rules. But with Amul Butter, one must make an exception” while having a bite of it herself. Be it Bollywood,
Olympics, politics or cricket, it wouldn't be wrong to say one can stay up to date with current affairs with
the Amul girl. The longest-running ad campaign in India was conceived by noted ad man Sylvester daCunha
in 1966 and is now run by his son, Rahul daCunha.



The main elements of Amul ads are the picture, the main text and the slogan. The picture is what catches the
attention of the audience, what ignites the curiosity being always the key factor to read the message. Amul
Baby has won many hearts. She is witty, unapologetic and so cute! She has a take on everything, be it a
political situation, a victory in the sports field or a path-breaking movie. The print ads featuring Amul Baby
have become an important part of our lives as Indians. Here are some of the best print ads of Amul :










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.


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. 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.

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 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 Amul’s
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.


Amul has a massive distribution network because its ice creams, milk, butter and cheese is found practically
everywhere. 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 cooperatives. 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 cooperatives.
The cooperatives 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.
Thus there is a lot of transportation involved for all of Amul’s products. However, the distribution channel of
Amul ensures that the products reach every nook and corner of India.


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. 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. The major reason for Amul’s absence in hard-core 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.

Amul is one of the largest milk and milk based products manufacturer in India. known to be the founder of
the white revolution in India, Amul has some strong products and brands up its sleeves, strongest of them
being Amul ice cream. Following are the points in the swot analysis of Amul:


 EXCEPTIONAL GROWTH – Amul has seen exceptional growth in the past seven years. The
company continues its adaptive and evolutionary mechanism as it has done for decades. India has
placed many investments in its dairy industry, and the company has justified its position. Currently,
the company is setting its sight to achieve record growth with its INR 50,000 crores target in 2020.
 LARGE PRODUCTION CAPACITY – Amul is a brand managed by the GCMMF (Gujarat Co-
operative Milk Marketing Federation Ltd), a cooperative body that provides about 17.7 million
liters of milk per day. Its production capacity led the GCMMF to join the ranks of the top dairy
organizations in the world. In Sept of 2018, Amul was ranked at the 9th position according to the
survey of the IFCN (International Farm Comparison Network).
 MARKET LEADER – Amul has positioned itself as the market leader in India because of the
organized ice cream sector which has a 1/3 rd market share in the country. The ice cream sector is
expected to grow by 30% in the coming years, whereas its flavoured milk and cheese products have
been forecasted to grow above 20%.
 BRAND RECALL AND EQUITY – Amul has become the favourite for many Indians because of
its genius Amul baby campaign that evokes beauty and emotion on every occasion. It has cemented
Amul’s brand recognition especially when it comes to brand recall and equity. There are only a
handful of milk-based brands available that have the same public image like Amul in India.
 BEST QUALITY – Amul has been entrusted with a strong and loyal customer base owing to its
standard persistent quality production. Amul has maintained its operation with adequate
transparency for decades forming a good relationship with the government and the health
department. The appraisal from such entities over its products has only added to its credibility and
customer retention.
 HUGE CUSTOMER BASE – Amul has the amazing quality of transcending the urban
demographic and reaching the rural areas. This allows it to have distinctive leverage over its
competition as it expands its consumer base and maintains a presence in every corner of the


 LAWSUITS – The brand faced an internal crisis after it chose to advertise its products by
disparaging its rival competitors. This promotion did not go unnoticed by one of its competitors
HUL (Hindustan Unilever Limited) which filed a lawsuit against the dairy company and took it to
court. HUL won its lawsuit at the Bombay High Court in 2017 and demanded that Amul should
stop its condescending advertising immediately. It has tarnished Amul’s image as an elitist,
utilizing arrogant and unfair methods to beat its competition.
 OPERATIONAL COST – The operational cost for Amul is enormous thanks to its massive
structure. This becomes a liability for the company as Amul experiences multiple pricing changes
and is dependent on its farming unions and community whose needs are growing every day. Amul
does not have an effective mechanism in place to face these challenges which is risky given the
unpredictability of supply.
 PORTFOLIO EXPANSION – Amul has diversified its dairy products variety, but it has not
experienced similar success in its other productions. The best example is its chocolate products that
have not reached the same level of success as its ice creams. Amul’s portfolio expansion is crucial
for its brand image.


 PER CAPITAL MILK CONSUMPTION – Amul can increase its per capita milk consumption
which is generally 97 litres per year, much lower than that of countries like the USA or the EU. The
demand for milk products continues to grow, and Amul has enough resources to capitalize on this
 INTERNATIONAL MARKETS – Amul has the capacity to explore its reach in the international
markets. It can access more Asian markets from neighbouring countries to other regions and operate
accordingly. Its international exports will increase their margins and turnovers rapidly.
 CHOCOLATE PRODUCTION – Amul can invest generously in its chocolate production and
thrive in the chocolate selling business. With adequate advertising, it can become its greatest.


 INCREASING COMPETITION – Amul increasingly faces fierce competition in the Ice Cream
sector. More and more companies and brands both local and foreign are invading its markets and
overtaking its sales. Competitors like Kwality Walls, Mother Dairy, Baskin Robbins, London dairy,
and Havmor are a few names that directly threaten its business.
 NEGATIVE MEDIA COVERAGE – Negative media coverage has not been beneficial for Amul’s
operations. It has affected its sales and forced them to issue statements garnering unwanted media

Amul has some good competitors who have entered the market in the last decade and growing strong
steadily. Most of these ice creams entered regionally but then held on to the regional market share. Thus,
even though individually these brands might not be a worthy adversary, combined and with their total net
aggregate, all of them together are giving a very tough competition to Amul. Some of these competitors
are Kwality walls, Vadilal, Havmore, Dinshaws, Arun Ice cream, Baskin Robbins, London dairy and
others. Many of these ice cream products have their own niche or geographic targets. Arun ice cream is
strong in the south whereas havmor and Vadilal are strong in the west.


There are two major competitive advantages of Amul over other brands. First and foremost is the supply
chain. Because of the large numbers of dairy suppliers, Amul has a tremendous strength and reliability in
its supply chain. Hence it is able to produce such high volumes. The second competitive advantage is the
wide product portfolio due to which it can run Amul shoppe’s and also have its products present in retail.
The product portfolio is such that products like Butter and Ice cream are cash cows for the company.

Amul brand is a renowned name in the dairy industry in India, supplying milk, butter and other dairy related
products to the Indian population. The application of BCG Matrix on the brand can provide information
about the products that are a source of revenue for the organization. The BCG matrix for Amul is given

 CASH COWS - When the market share of a product is high and it is being sold in an industry that
had developed to such an extent that no significant growth is expected in future, then the product can
be deemed as a Cash cow. There are two main products of Amul which can be placed in the category
of cash cow, fresh milk and butter. The reason behind the selection of these products is that the
industry for fresh milk and butter is not growing at a fast pace but gives the company with adequate
chances of maintaining high profitability if the market share is high.

 STARS - There are some products which have high market share and have the potential to grow
more in the future. The industry dynamics are also supportive of the growth as the industry is in the
phase of development as well. These products have the potential of being positioned as cash cows
owing to the growth prospects. As far as star is concerned, ice creams manufactured by the company
and ghee are the two key products which have the potential to grow taking benefit from the growth
opportunities presented by the industry.
 QUESTION MARKS - The products that have some likelihood of overcoming the challenges and
grow the market share in future have been termed as question marks in the BCG matrix. One of the
reasons why this category is labelled as question mark is that these products can either become a
success in the form of taking the position of a star, or become a source of continued loss for the
company. There are some products being managed by Amul that can be identified as a question
mark as their potential as a source of profitability remains uncertain. Amul lassi has been marketed
with the aim to increase the market share and compete with the other beverages available to the
market. There has been some success as observed from the increase in sales; however the company
needs to make further investment to strengthen the product.
 DOGS - Dogs are those products that have low market share and at the same time have limited
likelihood of growing into a profitable business unit for an organization. The low chances of
success suggests that the management needs to be careful with the decision of investing resources in
such a product since it offers no significant benefit to the organization. These products can be
regarded as cash traps due to the low chances of becoming a significant source of profitability for
the company. Investment in these businesses is not likely to yield much profit; therefore they are not
seen as a useful source of earning. Amul has few products which have not been able to generate the
expected sales and revenues. One of the notable examples in this regard is Amul chocolate


The FMCG market is highly competitive in nature and is known to have a combination of organized
players as well as unorganized players. Similarly, in FMCG, direct competition is equally important as
indirect competition. For example – During winters, ice cream and cold milk products will not sell, whereas
butter and cheese will sell equally well. But on the other hand, during summers the demand of ice cream
shoots up so much so that companies are not able to meet demands. Thus, when we analyse the market of
Amul, in some cases Amul is the clear market leader, whereas in other products it is a competitor in the


The typical customers of Amul belong to the Sec B and Sec C segment wherein they are either middle class
or lower class. Amul in general uses mass marketing and therefore it targets these 2 classes majorly. The
high end customers are more likely to prefer Naturals, Baskin Robbins, or any other such brand which
meets their taste and status.

Amul spurred India’s White Revolution. The Anand pattern experiment at Amul, a single, cooperative
dairy, was the engine behind the success of the program. As it was under the guidance of Dr. Verghese
Kurien, he is known as the Father of White Revolution in India and also as the Milkman of India. It
transformed India from a milk-deficient nation into the world’s largest milk producer, achieved not
merely by mass production, but by production by the masses; the process has been called the white
revolution. Amul has some good competitors where Most of these ice creams entered regionally but then
held on to the regional market share. Thus, even though individually these brands might not be a worthy
adversary, combined and with their total net aggregate, all of them together are giving a very tough
competition to Amul. Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun
Ice cream, Baskin Robbins, London dairy and others. Many of these ice cream products have their own
niche or geographic targets. Arun ice cream is strong in the south whereas havmor and Vadilal are strong
in the west. Though the competition in Ice cream segment is high, the competition in Butter and Cheese
and other dairy products is far lesser for Amul. The brand has encouraged and enabled farmers to be
entrepreneurs and earn their own living. The whole process is transparent and it has been ensured that
there is no exploitation. The brand has proved that it is not just a product but a movement that represents
the economic freedom of farmers.