Q1.How the organization with the brand “Amul” is different from other organizations?

What is its implication on marketing?

Amul has three tier organization structure:

•At the village level there was Society that residents of the village owning cows or buffalos could
join by purchasing share and committing all surplus milk beyond their household needs. On the
other hand farmers were also able to purchase affordable cattle feed and other services from the
society.

•At the district level there was Union owned by the contributing dairy cooperative societies. Unions
are responsible for purchasing milk from societies and transporting those to dairy plants. These
unions also manufactured cattle feed , provided the societies with cattle support , artificial
insemination, and trained farmers in animal husbandry.

•At the top level all these unions came under a single umbrella called GCMMF . This organisation
allowed all the districts to market their products under a common brand ,it has elected members
from all district Unions. GCMMF also jointly procured raw materials ,planned individual product
mixes, established a common distribution network for unions etc.
Amuls Organization Structure:
• Because of this structure Amul’s expenditure on advertising was very less compared to it’s
competitors. ( Amul spent less than 1% of its sales on advertising, while HUL and Nestle spent
14% and 8% respectively)
• Amul was able to bring all of it’s product under a single umbrella so advertisement cost
decreased.
• Amul’s advertisement and sponsorships reflected Indian roots and values. They sponsored
culturally focused shows like “Amul Surabhu”.
• One of their brand commercial proudly focused on the 50th year old movement of the
cooperative movement.
• To penetrate diverse markets, Amul has differential pricing, charging urban consumers more
than rural ones.
Q2.Role of Changes in Environment on Marketin of Amul Products PESTEL ANALYSIS
 Political:
• Amuls ability to remain free from political interference including bureaucratic oversight,
party affiliation, or perceptions of
 impropriety which is added to its competitive advantage
• Government does not have any financial stake in GCMMF(Gujrat cooperative milk
marketing federation). It also ensured tha amul stayed free of vested political interests
• Facilities and support services
• Training programs
• Conflict resolution
 Export of milk powder was banned in 2012
 Economical:
• Operation flood was lauded as an economic agricultural, and social success. In
constant(1995) dollars, the annual payment by the cooperative system to dairy farmers had
risen from $60.1 million in 1972 to $973.7 million in 1995.
• The increased income benefited almost 100 million Indian families, the majority of whom
where impoverished small farmers, women, or landless laborers.
• India high GDP growth rate implies increase in percapita income of people and thus more
increase in demand for food products
 Expansion Plans:
• Cost of implementation of system
• Break even for the investment
 Social:
• The milk collection at the village societies transformed the very social fabric of communities.
• Village cooperative societies insisted that the queues for milk collection would be formed not on the basis of caste but
strictly on a first come first serve basis
 This process certainily did was to begin chipping away at such societal biases
• The villages which are benefitting by increased income were said to have added “milk roads” areas where the streets were
cleaner, kids better fed, and houses better buil.
• Life style- Fast food culture caters more demand for ice cream, cheese etc.
• Culture- Custom of morning tea, more accustomed to milk and milk products.
 Demographic:
 Migration to urban areas:
• The brain drain from rural to urban posed a significant threat to amul and a public policy challenge to the government of
india
• Amuls executives found that younger generations in india rural areas were reluctant to join dairy farming which added to
their concerns about future
 procurement.
• Growing youth population, more health consciousness and huge children population

 Technological:
• Amul built its distribution network it added ice cream, frozen pizzzas, yogurt-based drinks, cottage cheese and another for
long life room temperature
 products like ghee and milk powder making it the only organization in the world to operate four distinct distribution
channels like frozen, fresh, chilled and
 ambient.
• Innovation in cold chain technology
• Extending the reach of the network to more and more villages and towns
• Amul dairy has adopted low carbon technology at amul chocholate plan at
mogar in anand district
Q4.MAKE A STRATEGIC ROADMAP FOR AMUL IN THE NEXT 3 YEARS

PRODUCT
PORTFOLIO

FINANCIAL TECHNOLGY

DISTRIBUTION
PRICING
NETWORK

QUALITY
 Q5. Suggest an application of expectancy value model for marketing of Amul
products?
Q7.Relate advertisements of Amul with Consumer Behaviour
 Marketing Factors : The generic marketing mix like product, price,
promotion and place are these factors. They impact the consumer
behavior from a marketer’s point of view.
 Personal Factors : Age, gender, education and income level affect
consumer behavior and amul ads are produced to target specific
cohorts of consumer segment.
 Psychological factors such as buying motives, perception of the
product and attitudes towards the product.
 Situational factors such as physical surroundings at the time of
purchase, social surroundings and time factor.
Q8.Suggestions for Future Roadmap - Amul

 High Milk Consumption : With ever increasing population,

there is an uninterrupted increase in demand for Milk
across all countries. Milk is a high source of protein.
 International Expansion : There is a big market for Amul
milk and derived products like cheese, butter, ice cream,
yogurt, etc. Amul needs to carefully tap in its resources to
increase its international market. (Indian Expats)
 Product portfolio expansion : Amul can expand its product
portfolio by offering products like cakes, pizzas, regional
delicacies like Baklava, Junnu, etc. It can utilize its
extensive distribution network to sell its new products.
 Mergers & Acquisitions : Amul can acquire new startups
and co-operatives having great potential and implement
their niche business processes in its regular processes for
optimization.
 Q9.Marketing Research plan - Amul
Research Objectives: Identify consumers response to Amul’s
new product i.e Amul Camel Milk
Research Methodology and Data source: Interview of Focus
groups which is mainly Middle aged Diabetic individuals. Data
Source is primary data obtained by the target individuals.
Research Instruments: Collecting insights by directly
interviewing a sample from the target population
Contact methods : Information and contacting the sample
from the target population can be done by visiting Hospitals.