Product Mix of Amul

Himanshu Ahire 13

Dhiraj Kakati 05

Executive Full Time PGDM  ( 2009-2010 )

Trimester 2

Symbiosis Institute of Management Studies

Symbol of “AMUL”(Anand Milk Union Ltd.) is a ring of four hands, which are coordinated with each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer.It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as

Objective 4

Introduction 5

Product 7

MARKETING OBJECTIVES 12

Product STRATEGIES 12

Product 12

Place 12

Price 13

Promotion 13

The different product for different people 14

Amul Product Mix 15

Amul Product Portfolio 15

Product-Width 18

Product-length 18

Product Depth 18

Line stretching 22

Conclusion 22

OBJECTIVE

To understand the product mix strategy of Amul .

To correlate the findings with the help of the theoretical concepts that we have been taught during this

semester on Marketing Management.

To gain an insight on the product range offered by Amul.

INTRODUCTION

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per

day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT

CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name AMUL means “AMULYA”. This word derived from the Sanskrit word “AMULYA”

which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”.

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. (The total sale is Rs. 6 billion in 2009).

Today Amul is a symbol of many things of the high-quality products sold at reasonable prices, of the

genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a

farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND

PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of

milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy

limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from

the Kaira district. This system leads to exploitation of poor and illiterate farmers by the private traders. The

traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single

word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively

appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel

advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying

milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-

operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He

advised the farmers to form a society for collection of the milk.

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is

managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success

in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural

development.

Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.

Members 12 district cooperative milk producers' UnionNo. of Producer Members 2.36 millionNo. of Village Societies 11,333Total Milk handling capacity 6.9 million litres per dayMilk collection (Total – 2003-04) 1.81 billion litresMilk collection (Daily Average 2003-04) 4.97 million litresMilk Drying Capacity 511 metric Tons per dayCattle feed manufacturing Capacity 2340 MTs per day

PRODUCT

“A product is anything that can be offered to a market for attention , acquisition , use, or

consumption that might satisfy a want or need “

A product is anything that satisfies a need or wants and can be offered in the exchange. A product can be goods, service or idea. Without product there is no marketing. This includes product variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its product very carefully so that the consumer gets only good quality products.

RAW MILK

Dried

Skimmed Milk Powder

Packaged Milk

Ice cream

Beverages

Condensed

Ghee

Butter Cream

pasteurization

List of Products Marketed

Bread spreads

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and

Tinned

Utterly Delicious Pizza

Amul Emmental Cheese

Desserts

Amul Shrikhand (Mango, Saffron, Almond

Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

Fresh Milk

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Ganthiya

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

For Cooking

Amul Pure Ghee Sagar Pure Ghee

Amul Cow Ghee

Amul Malai Paneer

Mithai Mate

Pro-biotic Dahi

Masti Dahi

Utterly Delicious Pizza

Powder Milk

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 (6 months above)

Amulspray Infant Milk Food

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Amul Ice creams

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi

Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

Millennium Ice cream (Cheese with Almonds, Dates with

Honey)

Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi

Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista

Kulfi)

Cool Candies (Orange, Mango)

Cassatta

Tricone Cones (Butterscotch, Chocolate)

Megabite Almond Cone

Frostik - 3 layer chocolate Bar

Fundoo Range - exclusively for kids

SlimScoop Fat Free Frozen Dessert (Vanilla,

Banana, Mango, Pineapple)

Health Isabcool

Chocolate & Confectionery

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage• Nutramul Malted Milk Food

Milk Drink• Amul Kool Flavoured Milk

Health Beverage• Amul Shakti White Milk Food

Ready to Serve Soups• Masti Tomato Soup

Masti Hot & Sour Soup

MARKETING OBJECTIVES

•Identify & cater to emerging markets all over India

•Create awareness about the brand name and increase customer loyalty.

•Tackle the problem of imitation of design.

•Increase retailer satisfaction by providing better margins.

PRODUCT STRATEGIES

Product

•Create awareness about its different brands thereby enabling the customer to differentiate between its

various brands.

•Copy-write the packaging design to preserve the distinguishing identity barring competitors from

imitating the same.

•Introduction of larger volume pouches in line with economy packs to provide large scale buyers price

benefits.

•Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul

Tazaa, rectangular shaped for Amul Gold, etc.

Place

Place refers to marketing activities that make products available to consumers at the right time in a

convenient location. It is the process of moving products from the producer to the consumer, which may

involve several steps and the participation of multiple.

AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF

handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the

disbursement of product to the various marketing channels.

Price

It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering.

Pricing and product image are closely related. Customers will pay a higher price for well – known, well –

regarded products, partly because of the image created through advertising and other promotions. This

includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided

by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in

the market and accordingly decides the prices of AMUL products.

However, the price is inclusive of several elements like,

•Cost of milk.

• Labour cost.

•Processing cost.

•Packaging cost.

•Advertising cost.

•Transportation cost.

•Sales promotion costs.

•Taxes etc.

The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling

price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about an organization, its

products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of

techniques including advertisement, sale promotion, public relation and personal selling that are used to

communicate with customers and potential customers.

AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for

advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the

creative basis attract the customer more.

THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE

Amul never forgot its “primary customer”

Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)

Product for youth

Amul launched Chocolate milk under brand name of ‘Amul Kool Koko’ targeting the youth.

Product for diabetic people

India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics

Product for the health conscious

Amul Launched “low fat, low cholesterol bread spreads”

Product for the price sensitive India

Low Priced Amul Ice Creams and affordable ‘sagar’ whitener

Product for the urban class

Amul launched emmental, gouda and pizza mozzarella cheese

AMUL PRODUCT MIX

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods

Examples

Durable Goods :-Milk Powders,Ready to Serve Soups

Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams

Dairy Non Dairy

Cheese

Products

Bread Spreads

Milk Drinks &

Desserts

Fresh Milk

Instant Food

Snacks

Veg. Oils

Prod

uct M

ix L

engt

h

Cooking Health Drink

Amul/SagarPureGhee Nutramul

AmulMalaiPaneer AmulShaktiHealthFoodDrink

MithaiMate

Pro‐bioticDahi

MastiDahi

UtterlyDeliciousPizza

Bread Spreads Cheese Desserts

Butter Shredded Pizza Cheese. AMUL Shrikhand (Mango, Saffron, Almond Pistachio,

Cardamom)

Low Fat Bread Spread. Emmental Cheese. AMUL Amrakhand.

Cooking Butter. Gouda Cheese. AMUL Mithaee Gulabjamuns.

Malai Paneer (cottage cheese) Frozen and Tinned.

AMUL Mithaee Gulabjamuns Mix.

Utterly Delicious Pizza. AMUL Mithaee Kulfi Mix.

Product Mix -Width

Table 3

Prod

uct M

ix L

engt

hMilk Drinks Powder Milk Fresh Milk

Amul Kool Millk Shaake AmulSprayInfantMilkFood

AmulFreshMilk

Amul Kool AmulInstantFullCreamMilk

AmulGoldMilk

AmulKoolCafe SagarSkimmedMilkPowder

AmulTaazaDoubleTonedMilk

KoolKoko SagarTeaCoffeeWhitener

AmulLiteSlimandTrimMilk

NutramulEnergyDrink AmulyaDairyWhitener AmulFreshCream

AmulKoolFlavouredBottledMilk

AmulShaktiTonedMilk

AmulKoolFlavouredTetraPack

AmulCalci+

AmulMastiSpicedButtermilk

AmulButtermilk

AmulLassee

AmulKoolThandai

Product-Width

The width of a product mix refers to the total number of items in the mix.

Example: The total number of items are 8. ( bread spreads , cheese , desert, cooking,health drink, milk

drinks,powder milk & fresh milk

Product-length

The length of a product mix refers to the total number of items in the mix.

Example:

The total Length of Amul’s Product mix is 42

The Total width of Amul’s Product mix is 8 ( No of lines)

Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6

Product Depth

The depth of a product mix refers to how many variants are offered of each product in the line

Amul’s Product Depth

Name of Product Variants Price

Amul Butter 100g Pack Rs. 25

Amul Butter 500g Pack Rs. 122

Delicious Table Margarine 100g Pack Rs. 13

Delicious Table Margarine 500g Pack Rs. 60

A m u l L i t e L o w f a t

Breadspread 200g Tub Rs. 32

Name of Product Variants Price

Amul Cheese 400g Tin (EOE) Rs. 117

Amul Cheese Slices 200g Pack Rs. 77

Amul Cheese Chiplets 200g Pack Rs. 66

Amul Cheese 1kg Block Rs. 233

Amul Cheese Spread 200g Tub Rs. 50

Amul Pizza Cheese 200g Pack Rs. 55

Amul Emmental Cheese 400g Pack Rs. 160

Amul Gouda Cheese 250 g Rs. 115

Amul Gouda Cheese 1 kg Rs. 440

Amul Malai Paneer 200g Dice Pack Rs. 36

Amul/Sagar Pure Ghee 1 Litre Tin Rs. 265

Amul/Sagar Pure Ghee 500ml Pouch Rs. 125

Amul/Sagar Pure Ghee 2 Litre Tin Rs. 495

Amul/Sagar Pure Ghee 5 Litre Tin Rs. 1,225

Amul Pure Ghee 1 Ltr Refill Rs. 260

Amul/Sagar Pure Ghee 1 Ltr Pouch Rs. 242

Amul Shrikhand 500g cup Elaichi Rs. 53

Amul Shrikhand 500g cup Mango Rs. 55

Amul Shrikhand 500g cup Kesar Rs. 66

Name of Product Variants Price

Amul Shrikhand 500 g Badam Pista Rs. 61

Amul Mithaee Gulabjamun 1kg Tin Rs. 115

Amul Mithaee Gulabjamun 500g Tin Rs. 64

Nutramul 500g Refill Rs. 110

Amul Chocolates 35g Milk Rs. 15

Amul Chocolates 35g Fruit & Nut Rs. 16

Amul Almondbar 35g Rs. 15

Amul Chocozoo 232g Tin Rs. 125

Amul Chocozoo Tub 500 g Rs. 180

Amul Taaza Double Toned

Milk 1 Litre Tetra Rs. 35

Amul Taaza Double Tone

Milk 200 ml Tetra Rs. 9

Amul Tazza Toned Milk -

Nothern Eastern States 1 Litre Tetra Rs. 38

Amul Gold Milk 1 Litre Tetra Rs. 39

Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40

Amul CALCI + high calcium

milk 1 Litre Brik Rs. 42

M i t h a i m a t e S w e e t e n e d

Condensed Milk 400g Can Rs. 58

Name of Product Variants Price

Amulspray IMF 500 g Pouch Rs. 110

Amulspray IMF 500g Refill Rs. 111

Amulspray IMF 500g Tin Rs. 115

Amulspray IMF 1 kg Pouch Rs. 202

Amulspray IMF 1 kg Tin Rs. 222

Sagar Skimmed Milk Powder 500g Pouch Rs. 110

Amulya Dairy Whitener 500g Pouch Rs. 113

Amulya Dairy Whitener 500g Refill Rs. 114

Amulya Dairy Whitener 1 kg Pouch Rs. 227

Amul Shakti Health Food

Drink (Kesa Almond) 500g Refill Rs. 115

Amul Kool (Kesar, Elaichi,

Rose) 200ml Bottle Rs. 12

Amul Kool (Kesar, Elaichi,

Chocolate) 200ml Tetra Rs. 12

Amul Kool Kesar 250 ml can Rs. 25

Amul Kool Cafe 200 ml Glass Bottle Rs. 15

Amul Kool Cafe 250 ml Can Rs. 22

Amul Kool Cafe 200 ml Tetra Brik Rs. 15

Amul Kool Koko 250 ml Can Rs. 22

Amul Kool Millk Shaake

( M a n g o , S t r a w b e r r y &

Badam)

220 ml Can Rs. 22

Name of Product Variants Price

Amul Kool Millk Shaake

(Mango & Strawberry) 180 ml Tetra Pack Rs. 15

Amul Fresh Cream 200 ml Tetra Brik Rs. 30

Amul Fresh Cream 1 Lit Tetra Brik Rs. 113

Amul Masti Spiced Butter

milk 200ml Tetra Brik Rs. 10

Amul Masti Spiced Butter

milk 1 Litre Tetra Brick Rs. 35

Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12

Amul Basundi l Ltr Tetra Brick Rs. 103

Amul Mithai mate 400 g EOE can Rs. 58

Line stretching

Every company’s product line covers a certain part of the total possible range. Line stretching occurs

when a company lengthens its product line beyond its current range. The company can stretch its line

down market, up-market or both ways.

Example : Amul is now aggressively adopting the down market stretch by introducing ( CHHOTA

AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income

group.)

Amul has been introducing products with consistent value addition but never left the core philosophy of

“Providing milk at a basic, affordable price”

Conclusion

This summarizes our research work on Amul’s Product Mix. There are various other strengths of Amul’s

marketing but we have only brought into context the above topic.