Amul Ice Cream Marketing Strategy
Transcript of Amul Ice Cream Marketing Strategy
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Introduction
AMUL means" priceless" in Sanskrit. A quality control expert in Anand
Suggested the brand name Amul (Anand Milk Union Limited) from the Sanskrit Amoolya, Variants, all meaning "priceless", are found in several Indian languages. Amul products have
been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul,Amul Milk and Amulya have made Amul a leading food brand in India. Today Amul is asymbol of many things. Of high-quality products sold at reasonable prices, of the genesis of avast co-operative network, of the triumph of indigenous technology, of the marketing savvyof a farmers' organization and have a proven model for dairy development. And have a
proven model for dairy development and have a proven model for dairy development.
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Background of the organization
History of Amul
TheKaira District Co-operative Milk Producers' Union Ltd. was registered on December 1,1946 as a response to the exploitation of marginal milk producers by traders or agents of theonly existing dairy, thePolson (brand) dairy, in the small town ofAnand (inKaira DistrictofGujarat).
Milk Producers had to travel long distances to deliver milk, which often went sour insummer, to Polson. The prices ofbuffalo and cow milk were arbitrarily determined.Moreover, the government at that time had given monopoly rights to Polson to collect milkfrom Anand and supply it to Bombay city.
Angered by the unfair and manipulative trade practices, the farmers of KairaapproachedSardar Vallabhbhai Patel under the leadership of local farmerleader Tribhuvandas K. Patel. He advised them to form acooperative and supply milkdirectly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low
prices). He sentMorarji Desai to organise the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of thecooperative to collect and process milk. Milk collection was also decentralized, as most
producers were marginal farmers who could deliver atmost 12 litres of milk per day.Cooperatives were formed for each village too.
The Cooperative was further developed and managed by Dr.Verghese Kurien alongwithH.M. Dalaya.Dalaya's innovation of making skim milk powder from buffalo milk forthe first time anywhere in the world and a little later, along with Kurien's help, making it on acommercial scale,[12]led to the first modern dairy of the cooperative at Anand, which wouldsuccessfully compete against established players in the market.
zThe trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread toAnand's neighbourhood in Gujarat, and within a short span, five unions in other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.
.
http://en.wikipedia.org/wiki/Kaira_District_Co-operative_Milk_Producers%27_Unionhttp://en.wikipedia.org/wiki/Polson_(brand)http://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Kairahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Water_Buffalohttp://en.wikipedia.org/wiki/Vallabhbhai_Patelhttp://en.wikipedia.org/wiki/Tribhuvandas_Kishibhai_Patelhttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Verghese_Kurienhttp://en.wikipedia.org/w/index.php?title=H.M._Dalaya&action=edit&redlink=1http://en.wikipedia.org/wiki/Amul#cite_note-epw-11http://en.wikipedia.org/wiki/Amul#cite_note-epw-11http://en.wikipedia.org/wiki/Amul#cite_note-epw-11http://en.wikipedia.org/wiki/Amul#cite_note-epw-11http://en.wikipedia.org/w/index.php?title=H.M._Dalaya&action=edit&redlink=1http://en.wikipedia.org/wiki/Verghese_Kurienhttp://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Tribhuvandas_Kishibhai_Patelhttp://en.wikipedia.org/wiki/Vallabhbhai_Patelhttp://en.wikipedia.org/wiki/Water_Buffalohttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Kairahttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Polson_(brand)http://en.wikipedia.org/wiki/Kaira_District_Co-operative_Milk_Producers%27_Union -
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Introduction to Brand
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Introduction on Ice Cream Industry
The ice cream market growth picked up after de-reservation of the sector in 1997. Of the totalsize of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn,rest all is with the unorganized sector. Among the major players in this industry HindustanLever has a market share of around 50%, represented mainly by Kwality Walls brand. Amulwith anestimated market share of 41% is rapidly gaining market share and lastly Vadilal is the playerin the national market with 8-9% of the market share.
Production areaIn rural areas, kulfi / ice creams made by small / cottage industry are popular. The market fororganized sector is restricted to large metropolitan cities. In small towns and villages, there
are thousands of small players who produce ice- creams / kulfis in their home backyard andcater to the local market.
Almost 40% of the ice creams sold in the country are consumed in the western region withMumbai being the main market, followed by 30% in the north and 20% inthe south.
Growth promotional activities
The Indian government adopted the policy of liberalization regarding the ice cream industryalso and it is since then that this sector has shown an annual growth ranging from 15- 20%
per annum for last 1- 2 years.
TypesIndian Ice Cream market can be segmented in three different ways, namely on the basis offlavours; on the basis of stock keeping units / packaging and on the basis of consumersegments.
On the basis of flavours the market today has a number of flavours like vanilla, strawberry,chocolate, mango, butterscotch and a number of fruit flavours, dry fruit flavours traditional
flavours like Kesar Pista, Kaju Draksh etc.
The market is totally dominated by Vanilla Strawberry and chocolate, which together accountfor more than 70% of the market followed by butterscotch and other fruit flavours.
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Amul Ice-Creams Variants
1) Prolife Ice-creamVanilla with chocolate sauce, Shahi anjir
2)
SundaeSundae, Sundae magic ,Double sundae
3) SticksFrostik, Dollies, Candies
4) Cones Butter Scotch, Choco crunch
5) NoveltiesCassata, Hum Tum, Cake magic
6) Malai KulfiMasti kulfi, Shahi pista
7) KidsSundae fundoo, fundoo chocobar, Fundoo balls (vanilla & mango)
8) Utterly Delicious Take away (Available in 500ml, 1.25L, 1.5L & 2.2L)Vanilla Royale, Two in One, Butter Scotch, Chocolate Passion, Fruit n Nut
Fantasy,Alphonso Marvel.
9)Utterly Delicious Cups - Alphonso Mango, Vanilla, Strawberry, Chocolate, KajuDraksh, Butter Scotch, Kesar Pista Royale, Kis Mis Kaju
10) But 1 Get 1 Free
a)
Spanish Saffron with Cream Balls + Same
b) Rajbhog + Same
c) Fresh Litchi + Same
d) Shahi Anjir + Same
e) Kesar Pista Royale + Same
f) Fresh Pineapple + Same
g) Fruit Bonanza + Same
h) Chocolate + Same
i) Alphonso Mango + Same
j) Tutti Fruti + Same
k) Green Pista + Same
l) Prolife Vanilla + Butter Scotch
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m) Vanilla Royale + Same
n) Butter Scotch + Same
o) Gauva + Same
p) Cookie and Cream + Same
q) Thandai + Same
r) Afghan Dry Fruit + Same
s) Shahista Pista Kulfi + Same
11) Couple Pack (250ml) Vanilla Royale, Strawberry, Butter Scotch Chocolate
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Various Other Brand of Amul
AMULS OFFERINGS
Breadspreads:
Amul Butter Amul Lite Low Fat Breadspread
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread Amul Mozzarella Cheese Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT Milk Range: Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream
Amul Snow-cap Softy Mix
Pure Ghee: Amul Pure Ghee Sagar Pure Ghee
Infant Milk Range: Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
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Milk Powders: Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Fresh Milk: Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
Curd Products: Amul Masti Dahi (fresh curd) Amul Butter Milk
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul clairs
Brown Beverage:
Nutramul Malted Milk Food
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Market Share of Ice-Cream Brands
COMPETITORS
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Competitors are the once who produce and sell the same product as producer by the unitcompetitors affect the business with several caused. The main rivals are following.
1. Nestle2. Kwality Walls3.
Vadilal
4. Mother Dairy
1. Nestle India is a subsidiary of Nestle.S.A. Of Switzerland. With seven factories and alarge number of co-packers, Nestle India is a vibrant Company that provides consumer inIndia with products of global standards and is committed to long-term sustainable growthand shareholder satisfaction
2. Kwality Walls Was previously known as Kwality owned by Pishorilal Lamba Kwality
Wall'sis a major producer and distributor of ice cream and other dessert productsin India, Pakistan,Sri Lanka,Malaysia and Singapore. It is a company of HindustanUnilever, the arm of Unilever in India, and is an extension of the Wall's ice cream brandof Great Britain.
Kwality, the original Indian company, was founded in 1956, and was the first in the regionto import machinery for the mass production and sale of ice cream on a commercial scale. In1995, in view of the growth potential of the frozen confections market, Kwality entered intoan agreement with Lever, and has since been known by its current umbrella name.
3.Vadilal(Vadilal Industries Limited) From a small outlet in Ahmedabad over 80 years back,Vadilal Industries Ltd has today emerged as Indias second largest ice cream player. Thecompany is also one of the largest processed food players in India with significant exports of
frozen vegetables and ready to eat snacks, curries and breads.
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Vadilals aim is to become an Indian MNC in Ice creams and frozen foods and to provideproducts and services at an affordable price without compromising on quality.
3. Mother Dairy, set up in 1974, is a wholly owned subsidiary of National Dairy
Development Board (NDDB) of IndiaMother Dairy's range of products includes the brands Mother Dairy (milk, milkproducts, curd, ice cream, butter, etc.), Dhara (range of edible oils) and Safal (range offresh fruits and vegetables, frozen vegetables, fruit juices).
Objective of the study
To have a clear understanding of the ice cream industry and Amuls position inmarket
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To find out the problems and issues faced by the wholesalers
To understand the distribution channel of the Amul Ice Cream
To study consumer perception and competitive
To increase sales of Amul ice-creams
To brand existing outlets and convert new outlets for Amul
To conduct an exhaustive market research on introduction of new low calories
flavours.
To check awareness, price acceptance, innovation excitement amongst consumers
To check the awareness as well as level of satisfaction of retailers with distributors&the company with regards introduction of new flavours
To develop strategies and come out with suggestions for increasing the sales.
RESEARCH METHODOLGY
RESEARCH DESIGN
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The research methodology adopted is of descriptive type. The major purpose of this researchwas the description of the affairs as it exists at present. Even though there was no control overthe variables. The cause were tried to be discovered. The facts or information gathered wereanalysed to make a critical evaluation of the information.
SAMPLING DESIGN
Sample design is a definite plan of obtaining some items from the whole population. Thesample used in this project is Cluster. In the probability sampling methods, each items in thesample is chosen one at a time from a complete list of universe elements. In marketingresearch practice, it will sometimes be more expedient to select items individually. Samplingmethods in which universe elements are chosen in groups rather than individually are calledcluster-sampling methods. They are widely used in the sampling of human populations.When no complete universe listing exists, a type of sampling is called area sampling may be
the only practically feasible form of probability sampling. Sample design is a definite plan ofobtaining some items from the whole population. The sample design used in this clustersampling.
CLUSTER SAMPLING
Here the whole area is divided into some geographical area and a definite number of retailerswere to be surveyed Cluster sampling are frequently utilized when no list of sample
population is available.
SOURCES DATA
One had to depend mainly on primary data as firsthand knowledge was required about marketposition of various brands in the ice cream. So our actual study was conducted in 3 stages:
First we discussed with our guiding officers on the various parameters of the project. We alsotalked informally with some consumers and retailers to have some preliminary idea.
Next format was prepared based on prior discussion. Separate questionnaire was prepared for
established and unexplored markets.
Lastly the final questionnaire was prepared with various modifications to the previousquestionnaire.
People were not willing to answer, when they were contacted between 1:00 pm to 5:00 pm,the time when most of the people take rest during the scorching heat.
SAMPLING TECHNIQUES
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The stratified sampling method was followed. The population of all the towns was nothomogeneous. There exist people of different occupation. So stratified sampling techniquehad to be applied in order to obtain a representative sample.
SAMPLE SIZE
The sample size varied from town to town for retailers. In Burari, Sant Nagar, Naharpur,Krishna market the sample size taken was 30. The sample size taken was 30. The sample sizeof retailers varied from 7 to 25 according to the size of the market.
DATA ANALYSIS
The data were analysed separately for each area. The findings resulting of the analysis variedfrom area to area and the recommendations stated accordingly arrived at after thorough andrecommendation stated accordingly.
SWOT Analysis of Amul Ice Cream
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Strengths:-
1) Biggest Sourcing base for milk and milk products in India.
2)
38% market share in the national ice cream market.
3) Penetration pricing strategy- Amul is the price warrior in the ice-cream market andcurrently has a very wide range to offer for all the price points.
4) Reputation of high quality.
5) E-commerce, new products and process technology.
Weaknesses:-
1) Advertising is low profile, as the results of the survey show. Majority of therespondents have hardly seen any ad of Amul ice cream. However Kwality Walls onthe other hand is into heavy advertising and consequently, is popular.
2) Shortage of stock during season.
3) Less attractive packaging.
4)
Distribution problems.5) Retailers now demand freezers without having to pay any deposit. This is especially
true of those retailers who already stock one or the other ice cream brands.
6) Limited international presence as compared to leading global brands
Opportunities:-
1) Internet promotions are a good means of awareness which should be tapped.
2) It is a high growth segment as the population is every increasing with never- endingdemands.
3) Distribution coverage
Threats:-
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1) Amul is currently facing stiff competition from Kwality Walls and may face morethreat from the local manufactures in the low priced segment ice creams.
2) The customers have very well received the Kwality Walls product differentiation
strategy and Mother Dairy is also pushing up its advertising pitch.
3) Also the low per capita income low per capita consumption of the people is a threat toAmul.
4) Free entry to the markets.
5) Even Vadilal is coming up with their new strategy and promotions of various variantsOf ice creams
6)
Health conscious people refraining from sweets
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EXISTING STP AND SWOT OF AMUL ICE CREAM
STP
I) SEGMENTATION
1) GeographicalUrban and Rural
2) Demographic-
A) Age: 1 to 60
B) Family Life Cycle: Young, Single, Married, Older
C) Education: Grade School or less, high school, college graduates, etc.
D) Attitude towards the product: The attitude towards the product is positive as people havetrust in Amulsproducts.
3)
Psycho graphic-
Working Class, College Goers, Accepted by all religion.
4) Behavioural-
A) Occasions: Amul targets special occasions such as New Years Eve, Diwali andValentines Day etc.
B) Benefits: They provide good quality product at economical prices.
C) Usage Rate: The usage rate is very high in behavioural segmentation of Amul Ice cream.
D) Buyer Readiness: The consumers are ready to buy these products and so the buyerreadiness is high.
E) Loyalty Status: The loyalty for Amul Ice-cream is Shifting Loyal as there is a majorcompetitor in the market i.e. Nestle, Kwality walls
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II) TARGET
The target of Amul Ice-cream is Lower, Middle, Upper Middle Income group people. Ittargets both men and women and children
III) POSITIONING
Amul Ice Cream is positioned as an Ice Cream with various flavours for all occasions and forall age groups.
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FINDINGS OF THE SURVEY
1. What ice cream brand comes in your mind when you heard the word ICE CREAM?
a)
Kwality wallsb) Amulc) Mother dairyd) Baskin robinse) Naturalsf) Other
Brands
Naturals
Amul
Baskin robins
Kwality
Others
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2. Do you like AMUL ice-cream?
Yes No
Likes
Yes
No
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3. Have you seen the ads of amul ice-creams?
Yes No
Seen the Ads.
Yes
No
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4. Do you think that price of amul ice-creams are high?
Yes No
Price high
Yes
No
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5. Is the brand name visible?
Yes No
Brand Visibility
Yes
No
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6. Do you like the packaging of the brand?
Yes No
Like the packaging
Yes
No
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7. Have you visited the amul parlour?
Yes No
Visit the parlour
Yes
No
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8. Do you think amul should use the brand ambassador or it should stick with the amul girl?
Yes No
Amul Girl Vs Brand Ambassador
Amul Girl
Brand Ambassador
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9. Would you prefer amul ice-cream in a less-sugary base?
Yes No
Preference on Sugar Base
Yes
No
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10. Do you still prefer amul ice-creams after the worm controversy?
Yes No
Preference after warm-Contravercy
Yes
No
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11. Do you think that amul has succeeded in all marketing strategies it has undertaken to getthe control of the confectionery market?
Yes No
Success in Marketing Stratergy
Yes
No
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12. From where do you come to know about the amul ice-creams?
a. News paper
b.
Advertisingc. Radiod. Hoardings
Media
News paper
Advertising
Radio
Hoardings
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13. Would you prefer a low calories ice-creams even if it is priced high?
Yes No
Preferece over low Calories Ice-Cream if Price
high
Yes
No
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14. Are you satisfied with the amul ice-cream?
Yes No
Satisfaction
Yes
No
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ANALYSIS OF THE SURVEY
Through this survey, it is clear that:
1. People love Amul ice cream very much.
2. It is the most preferred brand of ice cream.
3. As most of the people are health consciousthey would like to have a less sugar basedor no added sugar chocolate, especially if it comes from a reputed name like AMUL.
4. But Most people will not prefer a Low Calorieschocolate even if it is highly priced.
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REPOSITIONING OF THE BRAND
After the findings and analysis of the survey, it is clear that if a new product is launched inthe market, i.e. LOW CALORIESIce cream, it will most probably be a success.
Following is the new product, its features and a SWOT Analysis and STP of the
product:
Company: Amul
Brand: Ice Creams
Product Launched: Amul Ice Cream Healthy wealthy (Low Calories)
Tag Line: Enjoy Moments of Happiness in a healthy way
Characteristics:
1. For the health conscious people.
2. A Low Calories.
3. Priced at Rs. 200.
SWOT ANALYSIS OF CADBURY DAIRY MILK HC
STRENGTHS:
1. Especially for the health conscious people.
2. Comes from a reputed company Amul
3. Good Visibility, Good Product Quality and packing.
WEAKNESSES:
1. High priced.
OPPORTUNITIES:
1. Flavours will be launched in the near future.
THREATS:
1. Competitors- Nestle, Kwality walls
STP OF AMUL ICE CREAM HEALTH WEALTHY
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SEGMENTATION:
1. GEOGRAPHIC SEGMENTATION: It will target the Urban Market.
2. DEMOGRAPHIC SEGMENTATION:
AGE:The age of the customer will be between 18 to 35 years.
INCOME: Middle income, Upper Middle Income group.
OCCUPATION: It can be consumed by people of all occupations.
3. PSYCHOGRAPHIC:
It can be used by working class as well as house wives who are health conscious, also bythose who have busy lifestyle. It is accepted by all religions.
4. BEHAVIOURAL SEGMENTATION:
BENEFITS: Low on calorie, good quality, easily available in supermarkets and generalstores also
OCCASIONS: There is no specific occasion for consuming this ice creams.Whenever the person wants he can consume the product and not worry about thecalories also.
USAGE RATE: The Usage Rate will be high as it will be consumed more in urbanareas.
LOYALTY STATUS: Loyalty status will be Hard core Loyals as there is no much
completion in the market.
BUYER READINESS STAGE: The buyer will be ready to buy this product as itwill be low on calorie even if it is highly priced. So buyer readiness will be high.
TARGETING:
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Amul Ice Cream Healthy wealthy will be targeted on both men and women who are healthconscious and also youth who are more health conscious.
POSITIONING:
It will be positioned as a LOW CALORIES ice cream. Its USP will be that it will be richin nutrients which are necessary for maintaining the health of the person.
LIMITATIONS
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The study is limited to North East Delhi.
Due to unavailability of proper conveyance facility, it was really hard to cover the
market under a scorching sun.
In many residential blocks, shops located in corners of by lanes were difficult tolocate.
The time duration of two months was too short for the completion of all activities.
Being a perishable product no sample could be shown, as demanded by many
prospectingclients.
RECOMMENDATIONS
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In order to maintain and increase the sales in the city of Delhi, the following
recommendations regarding Amul ice
cream; particularly regarding advertisement, distribution, promotional policies, etc, are
hereby suggested: First and foremost Amul should take proper action in order to improve service,
because although being on a top slot in Butter and milk supplies it does not get the
sales in ice cream, which it should get.
Amul should give local advertisements apart from the advertisements given at the
national level. Local advertisement must mention the exclusive Amul shops of the
city.
Company should introduce sales promotion schemes like free extra weight, free gifts
etc.
Company should provide uniforms to vendors as other company do.
Company should introduce some new flavours in its range of ice-creams.
The company needs to improve their packaging material quality. Packaging is one of
the main areas of disagreement with the ice cream because the packaging of the ice
cream creates problem with caring and forwarding. Company should have to open
more APOS &A class outlets because total number of outels in delhi are very less.
CONCLUSION
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As we know that Amul is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese, which are its main/core products. As we
know Amul is a co-operative organization but ice cream industry is a profitable industry we
cant ignore it.
It is very difficult proposition to draw conclusion to the Amul Ice creams business and the
impact it has on our daily life. Amul is a company that strongly pushes itself as an Indian
company
With the help of research, company can find out its weak points in Ice cream product and can
increase its market share through rectifying mistakes. People have believed in Amulsproduct and they will accept its ice cream also if effective actions were taken. The survey
resulted into following conclusions:
Amul must come up with new promotional activities such that people become aware
about Amul Ice cream
Quality is the dominating aspect which influences consumer to purchase Amul
product, but prompt availability of other ice cream brands and aggressive promotional
activities by others influences the consumer towards them and also leads to increase
sales.
With the help of this project, it can be concluded that the marketing strategies followed by
Amul are very successful.
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QUESTIONAIRE
Survey on Amul Ice Cream
Name: ___________________________
Gender: _________________________
Location: ________________________
Ph. No\Email id: ________________________________
Age: ________
Occupation: _______________________________________
1.
What ice cream brand comes in your mind when you heard the word ICE CREAM?a) Kwality walls
b) Amulc) Mother dairyd) Baskin robinse) Naturalsf) Other (please specify)
2. Do you like AMUL ice-cream?
Yes No
3. Have you seen the ads of amul ice-creams?
Yes No
4. Do you think that price of amul ice-creams are high?
Yes No
5. Is the brand name visible?
Yes No
6. Do you like the packaging of the brand?
Yes No
7. Have you visited the amul parlour?
Yes No
8. Do you think amul should use the brand ambassador or it should stick with the amul girl?
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Amul Girl Brand Ambassador
9. Would you prefer amul ice-cream in a less-sugary base?
Yes No
10.Do you still prefer amul ice-creams after the worm controversy?
Yes No
11.Do you think that amul has succeeded in all marketing strategies it has undertaken to getthe control of the confectionery market?
Yes No
12.From where do you come to know about the amul ice-creams?
i.
news paperii. advertising
iii. radioiv. hoardings
13.Would you prefer a low calories ice-creams even if it is priced high?
Yes No
14.Are you satisfied with the amul ice-cream?
Yes No
15.Any other suggestion?
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