RURAL MARKETING

COOPERATIVE REVOLUTION IN INDIA

BY:--SAURABH DABAR

AMUL
Symbol of many things: Of high-quality products sold at reasonable prices. Of developing and co-ordinating a vast co-operative network. Of making a strong business proposition out of serving a large number of small and marginal suppliers. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation.

AMULS BUSINESS STRATEGY

TWIN OBJECTIVES
long-term, sustainable growth to its member farmers

value proposition to a large customer base by providing milk and other dairy products a low price

How Kurien transformed AMUL from a dream into a major industrial entity ??? A network of plants, cooperative societies, research centers, An institute for training future managers in rural management, secondary services like veterinary/artificial insemination expertise/feed factory

They combined market and social development why???

It realized that in order to achieve their objectives, it had to benefit a large number of people both suppliers and consumers. world-class deployment of technological resources and R&D. Better leveraging of scarce resources.

dual strategy of simultaneous development of the market and member farmers has resulted in parallel growth of demand and supply at a steady pace

multi-pronged strategy of education

developing markets for its high value products by graduating customer segments from low value products

demand growth strategy

maintaining a healthy level of customer base for its base products

SWOT
Indian origin
creating feeling of oneness in the mind of the customers.

manufactures only milk and milk products

purely vegetarian providing quality confidence

aiming at rural segment

large area of loyal customers

Cost Leadership
Simultaneous Development of Suppliers and Customers

Focus on Core Activities

Managing Third Party Service Providers
retention of surplus to fund growth and development + all transactions are essentially cash only [FINANCIAL STRATEGY]

AMUL has adopted the network model in early 1950s

FIRST MOVERS ADVANTAGE

Indias First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics.

Forward Integration
Amul launches Chocolate milk under brand name of Amul Kool Koko. Amul Launches Fresh Paneer (Free From Any Harmful Chemicals) Expanding its Cheese Segment. Current market share

65%.

Product Repositioning
Amul marketed bottled water product named JALDHARA but due to less potential in the market it turned out to be blunder. Now Amul is all set to launch bottled water NARMADA NEER.

Market Penetration Strategy

Amul is set to build up 10,000 `Amul Parlours' across the country Amul trying to acquire a shelf in the yet to come Wal-Mart.

Market Development Strategy

Amul is now shifting its focus from urban to rural markets and smaller towns. Amul is capturing the market of diabetic and health conscious people through sugar free icecream, which is a variation of an existing product Amul is also increasing its market base for milk through a new version the Amul Tazaa. Tazaa is the longlife version of milk which has a longer shelf life as compared to normal fresh milk.

Product Development Strategy

Amul-Cool (milk based cool drink) and Amul-Kool caf Stamina the instant energy whey based sport drink has been launched
packaged buttermilk is aimed to be another noncarbonated cool drink in the Amul Cool range

Diversification Strategy

Concentric Diversification Strategy introducing two pro-biotic Ice cream ranges, Amul Sugarfree and Amul Profile Identified the working class women as a new segment and has introduced frozen easy to cook stuffed parathas, matar paneer and paneer pakoras which makes them easy to cook quality tasty food in less time.

Conglomerate Diversification Strategy

priced at only Rs 12 for 200ml which will be lower than its competitors whose price ranges around 60 to 75 Rs.

PRODUCT OVERLAP

PRODUCT OVERLAP

Horizontal Diversification Strategy

Newer products with newer technologies Order the food through the internet

AMULs Best Practices

Umbrella Brand Strategy The GCMMF skillfully avoids inter-union conflicts through this strategy by giving every union and sub-brand the opportunity to contribute in the developing products. Amul is the common brand for most of the product categories

Improvement Programs
Employees of the GCMMF meet every Friday between 10 to 11 am to discuss quality issues at a depot. Every meeting has a Purpose, Agenda and Limit (PAL).

Constant Innovation
cooperative ensures that the sequence and product mix of high value brands is consistent with Amuls philosophy of low pricing and affordability.

Coordination
GCMMF ensures the distribution of final products by coordinating with retailers and dealers unions take care of the supply side of things such as monitoring milk collection, supplying animal feed, educational activities; all ensuring that the product reaches the consumer in time.

Enterprise- wise Integrated Application System (EIAS).

Automatic Milk Collection System units (AMCUS) VSATs for seamless exchange of information. using Geographic Information Systems (GIS) for business planning Opted for the .coop domain to position FIRST its brand in a distinct way MOVERS
ADVANTAGE

 Amul is a great brand. It has not only been a great dairy products brand but it has also been a source of income and livelihood to many people in the state of Gujrat in India... this is something which other brands fail to do. They build their own brands with all strategies and plans but fail to do much for the community. One of the many, many reasons why Amul is a great brand. I say it gently... and it releases an adrenaline rush... Its name.. sacred and sanctified... its taste... beyond every sense... its Indianness... a martyr anyday I know... my Lovemark. Its wit.. its knowledge of my country... its love for all I love... I salute my Lovemark... my Amul!

THANKYOU