One of the Largest Dairy Brand CASE STUDY ON AMUL One of the Largest Dairy Brand

Introduction Amul is an Indian cooperative based industry located at Anand district of Gujarat. Amul the co-operative came into existence in 1st December, 1946. Dr. Verghese Kurien, founder-chairman of the GCMMF(Gujarat Co-operative Milk Marketing Federation Ltd.) for more than 30 years (1973–2006), is credited with the success of Amul.

“AMUL” What does name suggests ?? The name AMUL means “AMULYA” derived from Sanskrit language(suggested by a quality control expert in Anand) which means priceless. Amul is an acronym for Anand Milk Union Limited.

About Amul Amul is basically established before more than 65 years in Anand district of Gujarat. The main aim to establish this co-operative based society was to stop exploitation of consumer by local milk cartels. By the manipulative and unfair trade practices, farmers approached to Shri Sardar Vallabhbhai Patel for solution and he suggested to form the co-operative society. The first co-operative began in Kaira district with just daily production of 250 litres milk.

Cont……… Gradually, this flourished and came to be known as Amul. This spurred White Revolution in India and made India a leading producer of dairy products. Now, everyday approximately Amul collects 8.4 million litres of milk from 2.79 million farmers and converts into milk and milk products and distributes to the consumers through more than 5 Lakhs retail outlets across the country. In 1994-95 sales turnover of Amul was 11140 Million, which increased to 207330 Million in 2014-

Three Tier System This structure consists of a dairy cooperative society at the village level affiliated to a milk union at the district level which in turn is federated into a milk federation at the state level.  Milk collection is done at the village dairy society, milk procurement and processing at the District Milk Union and milk products marketing at the state milk federation.  This patter of amul is known as 'Amul Model' or 'Anand Pattern‘. This model has helped India to emerge as the largest milk producer in the world.

Three Tier System Village Level 200 members. Committee of 8-9 members. District Level Board of Directors: 12 900 Members(approx) State Federation Members are chairpersons of district level co-operative & Ex-official membes Representative from NDDB Registrar of co-operative of the state concerned

Producer Consumer

PRODUCTS Butter Cheese Milk powder Ghee Chocolates Shrikhand Ice-cream Fresh Creams Flavored Milk Cattle Feed Beverages

Different Products

Market Share Category Market Share Market Position Chocolate Drink 90% 1 Butter, Ghee 85% Cheese 50% Sweets Milk Powder 40% Ice-cream 24.75% 2 Chocolate 10% 3

Customer Based Market Segmentation Women Kids Customer Based Market Segmentation Youth Calorie Conscious Health Conscious

KIDS Amul Kool Nutramul Energy Drink Chocolates YOUTH Cheese Spreads Butter Ice-creams Masti Dahi Women Amul Calci Health Conscious Nutramul Amul Shakti Health food Drink Calorie conscious Amul Lite Sagar Skimmed Milk Powder Amul lite Slim & Trim Hence Amul offers the products which is demanded by all age group people

Success Story of AMUL The main resins for the success of Amul are as follows: Advertisements Quality Value for Money Strong Distribution Network Technology and E-inititives

Advertisements The main reason behind the success of this co-operative based society is its strategy of advertisements. The Amul girl was the brainchild of Sylvester Cunha, the managing director of the AS advertising agency. The ads were designed relating to the day-to-day issues . The ads have witty one-liners which capture the relevant events that have caught the fancy of the nation. Amul ads are such innovative that the people who see that are eager to consume that product.

Politics related Advertise This Advertise relates to Anna Hazare’s Hunger strike of 5 April 2011 to exert pressure on the Indian government to enact a stringent anti-corruption law, Jan Lokpal Bill. This advertise indicates the political situation of that time.

Advertise related with Technology This advertise is related with I-phone a product from apple which is a market breaking product in mobile market. So they initiated their ad with this brand with a line “Lots on the Menu” which suggests that there are many products of Amul in the market.

Advertise linking with Movies This type of advertise leaves behind a great efect in minds of people. The movie Rowdy Rathore in which the dialogue was ‘Don’t angry me’ is kept here as ‘Don’t Hungry me’ such sort of dialogues affects a lot to the viewers

Advertise related to Education System This one-liner states the sitution of the educational institutes that they reserve the seats to take donations and are not allotted to the qualified students.

Advertise related with Sportsman and IPL This advertise clearly specify the cricketer Gautam Gambhir the captain of Kolkata Knight Riders of IPL and the line below the amul is the song title of KKR but it is transformed into “KORBO LORBO EATBO” which again advertises the brand AMUL.

Quality With the great success and with humongous growth of Amul the quality of its product has remain consistent. They have established many cold storages, safe warehouses, special transportation vehicles, etc. This elements determine the consciousness of Amul that they are concerned about the quality of the products till it reach to the consumers’ hand.

Value for Money Amul adopted a low-cost price strategy to make its products. Affordable, attractive and quality products to consumers by guaranteeing them value for money.

Strong Distribution Method The Amul products are available across the country in approximately 5 lacs retail outlets. Approximately 3500 distributors. 47 depots with hi-tech cold storages and also dry storages to buffer variety of products.

Technology and E-initiatives New products Process technology Complementary assets to enhance milk production E-commerce

Conclusions The consumer should be provided with a wide range of products so that they have the varitey to choose from. The marketing and innovative hoarding plays a vital role in sales. Price of the product should be kept reasonable though the name has become a brand.

Acknowledgement I would like to express my special thanks of gratitude to Bhavita Mam who gave me the golden opportunity to do this wonderful project on the topic “AMUL”, which also helped me in doing a lot of Research and I came to know about so many new things I am really thankful to them. Secondly I would also like to thank my mates who helped me a lot in finalizing this project within the limited time frame.

THANK YOU BY: MOIZ LAKDAWALA