BACKGROUND OF AMUL

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money AMUL (ANAND Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement in India. The brand name AMUL, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in ANAND. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India. It is based in ANAND town of 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, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. AMUL's product range includes Milk Powders, Milk, Butter, Ghee, Cheese, Curd, Chocolate, Ice-Cream, Cream, Shrikhand, Paneer, Gulab Jamuns, Basundi, NutrAMUL Brand and Others. Situation of farmers over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in ANAND often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well-known butter brand in the country) to collect milk from ANAND and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization Dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. AMUL was the result of the realization that they could pool up their milk and work as a cooperative.

CUSTOMER BASED SEGMENTATION

Segmentation is not so easy because of mixed audience & various culinary applications of AMUL products. Nevertheless, segmentation can be done as follows: a) Customer based: Kids AMUL Kool, Chocolates, NutrAMUL Women AMUL Cacli+ Youth Milk shakes, Caf, Cheese, Desserts Calorie conscious AMUL Lite, Trim milk, AMUL Shakti b) Industry based: Milk Ice cream manufacturers, Restaurants, Coffee shops Butter/Ghee/Cheese Bakery, Snacks retailers, Pizza joints

 Targeting Concentrating equally on end-users as well as the third parties involved in supply chains. AMUL has particularly identified youth as one of its potential segments. Working towards this aspect, it has come up with AMUL parlors in cities. Positioning o A mass market player, no premium offerings o USP Quality with affordability o AMUL as Taste of India creates value for money for both the dairy farmers and the customers o New offerings for health conscious & vibrant India Probiotic ice creams, sugar free delights, AMUL Kool Caf etc.

BRAND INVENTORY
a. Brand Element:
1. 2. 3. 4. 5. 6. Brand Names URLs Logos Symbols Characters Slogans

b. POPs: Very effective marketing program Great penetration of distribution channels Disciplined & rigorous product development process. Effective technology management. Continuous surveillance of the marketplace & understanding of customer needs. Creative & brilliant advertisements Enjoys excellent reputation with customers Provides value for money

c. PODs:
Quintessentially Indian A mass market player, no premium offerings It focuses on issues important to the common man - aam aadmi. USP- is its taste. AMUL butter is made from fresh cream. Quality with affordability Very strong supply chain Have always taken care of dairy farmers Offerings for health conscious and vibrant India - Probiotic wellness ice-cream & sugar free delights for the diabetic patients.

BRAND STRATEGIES
Umbrella Branding Strategy
Stuck to the core benefits of brand; Commonality of benefit is a must AMUL stands for richness of milk (focused on Dairy segment) It could easily leverage the positive product characteristics of powerful existing brand into new product categories. For e.g. the Utterly Butterly AMUL values associated with AMUL Butter for over half a century gave AMUL Cheese instant place on the shelves. AMUL ice-cream Real milk, Real ice-cream rapidly climbed to number two positions in just a short span of three years. AMULs ad campaigns - in the form of billboards or the Taste of India campaign - have always managed to evoke a larger-than-life brand feel, consistency & spirit of Indian culture in a contemporary way.

Ice cream (1996)

Softy Mix (2001) Fat Free Dessert (2002)

Chocolate s (1973)

Shrikhan d (1980)

Fresh Milk (1956)

Condensed Milk (1996) Butter Milk (1998)

Milk Power (1958)

AMUL Spray (1968) AMULya (1987)

Cheese (1962)
Paneer (1997) Pizza Cheese (1998)

Breadsprea d
AMUL Butter (1956) AMUL Lite (1994)

Ghee (1956

NutrAMUL

Eclairs

(The hierarchy goes down stating all 42 brands, but we havent included here, as it was turning illegible.)

 Category Extension
2007: GCMMF introduced AMUL range of sugar free & pro-biotic icecreams. A first of its kind product, the ice creams AMUL Prolife & AMUL Sugar Free are targeted towards the health-conscious & diabetic segment. Such extension adds back value to the parent brand. Projects that AMUL isnt just a traditional brand, it looks into the changing needs of different demographics. What more can AMUL do? Can introduce Proteins Shakes going ahead with their strategy to meet needs of emerging market segments Can introduce Bread will complement rest of the products in the portfolio. Will try to increase the usage occasions of AMUL products.

Sub-brands:
Alum's sub-brands , edible oil products - Dhara, mineral water - Jal Dhara brand while fruit drinks Safal

AMUL BRAND PORTFOLIO Category Butter Milk Powder Cheese Ice-cream Market Share 85% 40% 50% 24.75% (HUL-28.22%, Mother Dairy 8.66%) 50% 90% 10% (Cadbury- 70%) Market Position 1 1 1 2

Sweets Chocolate Drink Chocolate

1 1 3

COMPETITORS BRAND INVENTORY Product s/Brands Butter Cheese Baby Food Dairy Whitener Segment Ice creams Chocolates & Confectionaries Pizza Competitors Britannia, Nestle Britannia Nestle, Heinz Britannia, Nestle HUL Cadbury, Nestle Pizza Hut, Dominos, Nirulas Frozen Pizza Curd Ultra High Treated Milk Sweet Condensed Milk Paneer Milk Additives Flavored Milk Nestle, Mother Dairy Britannia, Nestle Nestle Britannia Cadbury, Smithkline Beecham Britannia, Nestle

SWOT ANALYSIS

Strengths:
1. The Company is having Indian origin thus creating feeling of oneness in the mind of the customers. 2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers. 3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do. 4. People are quite confident for the quality products provided by AMUL. 5. AMUL has its base in India with its butter and so can easily promote chocolates without fearing of loses. 6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses:
1. There are various big players in the chocolate market, which acts as major competitors restricting their growth. 2. Lack of capital invested as compared to other companies. 3. Improper distribution channel in India.

Opportunities:
1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting. 2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

Threats
1. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle. 2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 3. New companies entering in Indian market like Fantasie fine poses lot problems for AMUL.

BRAND EXPLORATORY
Brand Positioning Analysis:
Placing a product in that part of the market where it will receive a favorable reception compared to competing products. Positioning of AMUL is Taste of India. It has created value for everyone in value chain, be it customers or farmers. USP- Quality with affordability Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights for Diabetics. Low Priced AMUL Ice Creams made Kwality Walls life hell.

Flank Attack (Expanding its Cheese Segment). Age Wise... Aug 25 2007
AMUL launches Chocolate milk under brand name of AMUL Kool Koko. This is targeted at teenagers and youths. Nov 11, 2007: AMUL in Multinational Arena with Snack Launch: Munch Time. Flavors: Masala, Mint and Tomato. New Product Activity. Nov 26, 2007 : AMUL Launches Fresh Paneer (Free From Any Harmful Chemicals)

Current market share 50%.

BRAND VALUE AND BRANDA EQUITY

BRAND VALUE: The core values of the company are: To provide remunerative returns to farmer, give the best quality product to consumer, and the best possible price. SOURCES OF BRAND EQUITY: Not only had the core values Core team associated with the brand is still the same helped them maintain consistency in communication. Strategy of Umbrella branding has also helped established the brand firmly. AMULs utterly butterly campaign is the longest running campaign. Playing the role of a social observer through its weekly comments AMUL girl. Taste of India tagline is in line with their positing strategy.

CUSTOMER BASED BRAND EQUITY MODEL

 CBBE FOR AMUL:

Brand Salience
AMUL Butter High Awareness level of the brand

Brand Performance
Easily Available Rich Taste & Aroma High nutritional value

Brand Imagery
Ethical Family Cheerful and fun loving

Consumer Judgments
High quality, Superior & Credible

Consumer Feelings
Emotional Attachment Patriotic sentiments

Consumer Brand Resonance

Low involvement product Yet Brand loyalty

MENTAL MAP to BRAND MANTRA:

Mental Map: A Mental Map is generally a visual depiction of the core brand association. From this mental map we will define the brand Mantra. Cheerful Culture Oriented Reliable Healthy Youthful Fun Loving Family Oriented Traditional Brand Mantra:

Youthful

Fun Loving

Cheerful

Reliable

Healthy