AMUL - India’s Pride

Competing with Global Giants

GROUP 4

Gummi Sainath Reddy

Kale Gaurav Vijay

Raksha P R

Sambit Mishra

Shinde Digvijay Sunildatta

Siddappa Ramesh

Gumachi

Sowmya C L

Presnted By

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AMUL - The Taste of India

Born:  1946, christened in 1955n 1955

History:  Originally marketed by the Kaira District Cooperative Milk Producers’ Union, Anand, it was taken over by the Gujarat Cooperative Milk Marketing Federation (GCMMF) in 1973

Status:  Has a 15% market share in the Rs15,000 crore milk category, and a 37% share in the Rs900 crore organized ice-cream segment.

Starting with milk and milk powder, the Amul brand today covers a range of dairy products—from chocolates to cheese and, of course, butter

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Brand Story

• If a brand’s value is to be judged by the ease with which it can be recalled, then Amul’s marketing campaign wins hands down.

• With its clever use of topical events, Amul’s utterly butterly campaign—it has the distinction of entering the Guinness World Records as the longest running campaign—has won the brand several accolades.

• Playing the role of a social observer, its weekly comments have tickled India’s funny bone since 1967, when Sylvester Da Cunha’s irrepressible Amul girl first had her say.

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CONTD.

• But what’s kept the brand going all these years? “We have changed the packaging, our technology and our approach to marketing based on the changing taste buds of our consumers.

• However, the only thing that has helped us sail smoothly is that we have not changed our core values—give the best quality product to the consumer, and the best possible price. It holds true in any era,” says B.M. Vyas, managing director, GCMMF.

• In fact, it is not just the core values at Amul that have remained the same; the core team associated with the brand is still the same. Even the advertising agency hasn’t changed, and Da Cunha and FCB Ulka, have played a pivotal role in the growth of Amul.

©2003 Prentice Hall, Inc.

CONTD.

• “This has helped us maintain consistency in our communication. Our strategy of umbrella branding has also helped establish our brand firmly in people’s minds. This, despite the fact that we do not spend more than 1% of our turnover for marketing, compared with 7-8% (spent) by most of the food and consumer product companies,” R.S. Sodhi, head of marketing, GCMMF, says.

• From Utterly butterly delicious Amul to The Taste of India, Amul continues to be the toast of the country.

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AMUL : Kapferer’s Prism

Physique : Taste, Quality

Personality :Simple, Indian

Self-Image :Proud Indian, Fun loving

Reflection :Value Oriented

Culture :Co-operative, Sharing

Relationship :Sociable AMUL

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Cooperative-Yet-Competitive vs. Competitive

"In a Cooperative-Yet-Competitive situation the goals are so linked that everybody 'sinks or swims' together, while in the Competitive situation if one swims, the other must sink."

• Friendliness, helpfulness, and less obstructiveness.• High on both assertiveness and cooperativeness.• A cooperative approach aligns with the process of interest-based or integrative

bargaining, which leads parties to seek win-win solutions. • Competitive encourages each side to strive for excellence.

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AMUL – BOP cum MNC

• Business innovation that changed the fortunes of the poor in a developing country like India by integrating local skills and local activities into its business model.

• AMUL products are found on the shelves of Walmart in the USA and many other retail giants in the world.

The Poor as ProducersEnables thousands of milk producers to engage in decentralized production. Thus by contributing immensely to income generation among the poor.

©2003 Prentice Hall, Inc.

ComparisonAmul

1. As A Brand Of Both Masses And Classes.2. 123 Brands Listed Under Its Name.3. Less Than 1% Of Its Budget Spent On

Advertising.4. Mascot-  Amul Mascot, A Cute And

Chubby Girl .5. Fresh Flavor.6. Simple Yet Appealing Ad Campaigns.7. Cooperative Model Pioneered By Amul.8. Brand Loyalty.9. Superior Distribution

Mother Dairy1. Admirable Brand Recall.2. Superior Quality .3. Effective Supply Chain For The Farmers.4. 62 Brands Listed Under Their Name.5. Many Interesting Dairy Products In Its

Basket .6. Nutrifit Campaign Theme.7. Rapid Diversification.8. Better Ties With Retailers

Key Success Factors

Robust Supply ChainLow Cost

Strategy

DiverseProduct Mix

StrongDistributionNetwork

Technology and e-initiatives

Success!!

©2003 Prentice Hall, Inc.

Strength• Demand profile• Flexibility of product mix • Technical manpower • Trust enjoyed by its products• Strong cooperative organization• Introduced TQM

Weakness• Logistics of procurement• Competition• Short self life of its products• Completely dependent on villages for its

raw material• Salaries offered is less compared to

competitors

Opportunities• Value addition• Export potential• Used internet to sell its products• Introduced hybrid products in the

market• Exploring foreign markets

Threat• Milk vendors, the un-organized sector• Strong competition from MNCs• Competition from private dairies and local

milk suppliers• The yield of Indian cattle still much lower

than other dairy countries

©2003 Prentice Hall, Inc.

• A Strong Focus On Services Rather Than Products And At The Same Time Facilitating Consumers In A Better Way.

• Developing The Farmer Base At A Competitive Rate To Cater The Ever Rising Demand.• Increasing The Farmer’s Share In Consumer’s Rupee.• Developing A Robust Strategy To Compete With The Local Substitutes.• Aggressive Marketing Campaigns.• Diversification In Snack’s Industry.• Rapid Strategic Alliances.• Cold Chain Development For Growing Milk Collection.

Future’s Giant Leap

Thank You