Table of Contents

ACKNOWLEDGEMENT ....................................................... Error! Bookmark not defined.

1.INTRODUCTION .................................................................................................................. 3
2.HISTORY ............................................................................................................................... 4
2.1 FATHER OF WHITE REVOLUTION ;DR. V. KURIEN.................................................. 7
3.Michael Porters Five-Force Analysis .................................................................................... 9
4 .PEST ANALYSIS. .............................................................................................................. 12
5.PROMINENT STARTEGIES ADOPTED BY AMUL ....................................................... 14
5.1 Some examples of strategies used by amul........................................................................ 16
6.List of Products Marketed:.................................................................................................... 25
6.Conclusion ............................................................................................................................ 28
7.REFERENCE ........................................................................................................................ 29


EXECUTIVE SUMMERY
This report through light on the overall picture of Success Story and Brand Building Process
of Amul. Over the course of Operation Flood, milk has been transformed from a commodity
into a brand, from insufficient production to self sufficient production, from rationing to
plentiful availability, from loose, unhygienic milk to milk that is pure and sure, from
subjugation to a symbol of farmers economic independence, to being the consumers
greatest insurance policy for good health. For more than two decades since its launch in 1945,
Amul had been a just a cooperative brand selling dairy products like milk and butter that were
commodities and low involvement in nature.

Amul is Brand Name, and a very popular household name. But it is something more than
that. All brand names are not based on the success story of the product. Some brand names
are created to sell the product. But AMUL id the success story of the cooperative effort of
hundreds of individual milkmen/ milkmaids whose efforts are energized and coordinated by
the Anand dairy
In the project the followings topics are covered History of Amul the way it faces competition
in the Indian market etc,pest analysis,Porter 5 force analysis and some prominent strategies
adopted by amul.
1.INTRODUCTION
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul (Anand Milk Union Limited),
formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an
apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat,
India. AMUL is based in Anand town of Gujarat and has been a sterling example of a co-
operative organization's success in the long term. It is one of the best examples of co-
operative achievement in the developing world. "Anyone who has seen ... the dairy
cooperatives in the state of Gujarat, especially the highly successful one known as AMUL,
will naturally wonder what combination of influences and incentives is needed to multiply
such a model a thousand times over in developing regions everywhere. 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 is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres per day. Besides India, Amul
has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia,
China,Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese
market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese
markets. Other potential markets being considered include Sri Lanka. Dr Verghese Kurien,
former chairman of the GCMMF, is recognised as the man behind the success of Amul. On
10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of
GCMMF.Amul products have been in use in millions of homes since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a
symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of
a vast co-operative network.

2.HISTORY
In the year 1946 the first milk union was established. This union was started with 250liters 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 form the Sanskritword AMULYA which means PRICELESS.
A quality control expert in Anand hadsuggested the brand name AMUL. Amul products
have been in use in millions of homessince 1946. Amul Butter, Amul Milk Powder, Amul
Ghee, Amulspray, Amul Cheese, AmulChocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have madeAmul a leading food brand in India. (The total
sale is Rs. 6 billion in 2005). Today Amul is asymbol of many things like of the high-quality
products sold at reasonable prices, of thegenesis of a vast co-operative network, of the
triumph of indigenous technology, of themarketing savvy of a farmers' organization. And
have a proven model for dairy development(Generally known asANAND PATTERN).In
the early 40s, the main sources of earning for the farmers of Kaira district werefarming and
selling of milk. That time there was high demand for milk in Bombay. The mainsupplier of
the milk was Polson dairy limited which was a privately owned company and 70held
monopoly over the supply of milk at Bombay from the Kaira district. This system
exploitation of poor and illiterates farmers by the private traders. The traders used to beside
the prices of milk and the farmers were forced to accept it without uttering a
singleword.However, when the exploitation became intolerable, the farmers were frustrated.
Theycollectively appealed to Sardar Vallabhbhai Patel who was a leading activist in
thefreedom movement. Sardar Patel advised the farmers to sell the milk on their own
byestablishing a co-operative union, Instead of supplying milk to private traders. Sardar
Patelsent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri
Desaiheld a meeting at Samarkha village near Anand, on 4 thJanuary 1946 He advised the
farmers to form a society for collection of the milk These village societies would collect the
milk themselves and would decide the pricesat which they can sell the milk. The district
union was also form to collect the milk from suchvillage co-operative societies and to sell
them. It was also resolved that the Governmentshould be asked to buy milk from the
union.However, the govt. did not seem to help farmers by any means. It gave the
negativeresponse by turning down the demand for the milk. To respond to this action of
govt., thefarmers of Kaira district went on a milk strike. For 15 whole days not a single drop
of milk was sold to the traders. As a result the Bombay milk scheme was severely affected.
The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed
thecondition, he decided to fulfill the farmers demand.Thus their cooperative unions were
forced at the village and district level to collectand sell milk on a cooperative basis, without
the intervention of Government.
Mr. VergheseKurien showed main interest in establishing union who was supported by
ShriTribhuvandas Patel who lead the farmers in forming the Co-operative unions at the
villagelevel. The Kaira district milk producers union was thus established in ANAND and
was registered formally on 14
th
December 1946 Since farmers sold all the milk in Anand
througha co-operative union, it was commonly resolved to sell the milk under the brand name
Amul70 Atthe initial stage only 250 liters
of milk wascollectedeveryday. But with the growing awareness of the benefits of the
cooperativeness, thecollection of milk increased. Today Amul collect 11 lakhs liters of milk
everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora
longer period.Besides when the milk was to be collected from the far places, there was a fear
of spoiling of milk. To overcome this problem the union thought out to develop the chilling
unit at various junctions, which would collect the milk and could chill it, so as to preserve it
for a longer period. Thus, today Amul has more than150 chilling centers in various villages.
Milk iscollected from almost 1073 societies
70With the financial help from UNICEF assistance from the govt. of New Zealandunder the
Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was
planned.
Dr.Rajendra Prasad the president of India laid the foundation on November 15, 1954 Shri
Pandit Jawaharlal Nehru the prime minister of India declared itopen at Amul dairy on
November 20, 1955 70 and cooperation of people brought Amul into fame i.e.AMUL
(ANAND MILK UNIONLIMITED) a name which suggestTHE TASTE OF INDIA
.PLANTS
First plant is atANAND ,which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk and buttermilk.
Second plant is at MOGAR ,which engaged in manufacturing chocolate, nutramul,
AmulGanthia and Amul lite.
Third plant is at KANJARI,which produces cattelfeed.
Fourth plant is at KHATRAJ, which engaged in producing cheese.Today,
13 dairies are producing different products under the brand name Amul. Today Amul dairy is
number.1dairy in Asia and no. 2 in the world which is matter of proud for Gujarat and whole
India


2.1 FATHER OF WHITE REVOLUTION ;DR. V. KURIEN

Dr. Kurien, was the architect of India';s White Revolution, which helped India emerge as the
largest milk producer in the world. Founder Chairman of the National Dairy Development
Board (NDDB) from 1965 to 1998, the Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF), from 1973 to 2006 and the Institute of Rural Management (IRMA) from 1979 to
2006, his professional life has been dedicated to empowering the Indian farmers through co-
operatives. Dr. Kurien has helped to lay the foundation of democratic enterprises at the grass
roots. He believed that by placing technology and professional management in the hands of
the farmers, the standard of living of millions of our poor people can be improved.

The cooperative movement, he helped to create became a model not only for India, but for
developing countries throughout the world. The Operation Flood Programme, of which Milk
Producers'; Cooperatives were the central plank, emerged as India';s largest rural employment
programme and unleashed the larger dimension of dairy development. Dr. Kurien was the
undisputed 'Milkman'; of India. Born on November 26, 1921 at Kozhikode, Kerala, he
graduated in Science from the Loyola College in 1940 and obtained hisdegree in Engineering
from the Guindy College of Engineering in Chennai. After a stint at TISCO, Jamshedpur, he
obtained the Govt. of India';s scholarship to study Dairy Engineering. After some specialized
training at the Imperial Institute of Animal Husbandry & Dairying, Bangalore, he left for the
United States where he completed his Masters degree in Mechanical Engineering with Dairy
Engineering as a minor subject from the Michigan State University in 1948.

Upon his return to India, Dr. Kurien was assigned to a Government Creamery located at
Anand in Gujarat to serve his bond period. He arrived in Anand on Friday, the 13th May
1949. His only intention at that time was to obtain a release from his bond and get out of
Anand as quickly as possible. At the end of 1949, when he got release orders from his job
from the Government Creamery, he was all set and eager to pack off to Mumbai. Shri
Tribhuvandas Patel, the then Chairman of Kaira District Co-operative Milk Producers Union
(popularly known as Amul), with whom Kurien had developed a friendship requested him to
stay on in Anand for some more time and help him put his co-operative society';s dairy
equipment together. Kurien decided to stay back for a few more days and stayed there
forever.

His forced tenure at Anand changed the destiny of Indian Dairy industry. He started helping
the fledgling dairy co-operative. The rest is history.

The first Dairy Co-operative Union in Gujarat was formed in 1946 with 2 Village Dairy Co-
operative societies as its members. The number of member societies has now increased to
16,100, with 3.2 million members pouring milk every day- twice a day. Today, the Billion
Dollar GCMMF has emerged as the India';s largest integrated dairy products manufacturing
and marketing organization. NDDB, formed by the efforts of Dr. Kurien ensured replication
of Amul Model across India. Thereby, it played an instrumental role in increasing the milk
production of India significantly. India';s milk procurement has increased from 20 million
metric tonnes per year in the 60s to 122 million metric tonnes in 2011.

His work has received tremendous national and international recognition. The Govt. of India
conferred on him the "Padma Vibhushan", the second highest honour in the land next only to
Bharat Ratna. He is also the recipient of the World Food Price, the Ramon Magsaysay award
for Community Leadership, the Carnegie - Wateler World Peace Prize and the International
Person of the Year award from the U.S.

Dr. Kurien';s main contribution has been in designing of systems and institutions, which
enable people to develop themselves, as he believed the development of man can best be
achieved by putting in his hands the instruments of development. He believed that the
greatest assets of this country, were its people and he dedicated his life to the task of
harnessing the power of the people in a manner which promoted their larger interests.

3.Michael Porters Five-Force Analysis
According to Porter (1980) a firm must be analyzed in relation to its industry.Factors outside
the industry tend to influence all the industrys firms in the sameway and are thus not as
important to study.
To a large extent, industry structure governs the strategies open to the firms.The profitability
and attractiveness of an industry is dependent of the level of competition. Competition in an
industry originates from industry structure andgoes well beyond the behavior of individual
competitors.
According to Porter, each industry has a potential profitability and the profitabilityfor the
firms is dependent on the competitive forces in the industry. Porter identifies five competitive
forces that derive from the ambition to obtain as largeshare of the profitability as possible.
The five forces are the foundation of thefive-force model.
Porters Five-Force Model
1Threats of new entrants
2Bargaining power of suppliers
3Bargaining power of buyers
4Rivalry among competitors
5Threats from substitutes
These factors can be explained in context to GCMMF as below:
1.Threats of New Entrants
a. Economies of Scale:GCMMF enjoys economies of scale, which isdifficult to match by any
other competitor. It is because of this reason thatno regional competitor has grown to a
national level.
b.Cost and Resource advantages:Amul dairy is co-operative society.That means cooperation
among competitive is the fundamental principle.Amul dairy is managed under the norms of
GCMMF and market the products under the brand name Amul, which has a very good
reputationat domestic and international level. Here, the raw material procurement isvery
difficult for the new entrants. Consequently Capital requirement isalso high. Still new
entrants are emerging such as domestic andinternational players. So the threats of new
entrants are moderate.
c.Brand Preferences and Consumer Loyalty:There is an immenselevel of Brand Preference of
Amul in the minds of the people. The level of preference specifically in the liquid milk sector
is that they would go toother retailer if the retailer does not have milk.
d.Access to Distribution Channels:The distribution channel of GCMMF is a very planned
and perfect one. For any new entrant to enter itwould be a very difficult task. For GCMMF
the result is years of hard workand its investment in its employees as well as at different
levels in thedistribution network. Inability to match the technology and specialized know-
how of firms already in the industry:The technology used by Amul is importedfrom
Denmark. It is a state of art technology. To get this technology inIndia, a firm would require a
huge amount of resources.
e.Capital Requirements:The total investment required in the industry ishuge and is a decision
worth considering even for MNCs. The investmentdecisions cover the processing costs as
well as the marketing costs. Tocompete with the brand Amul in India is difficult as Amul is
synonymous toQuality.
2.Bargaining power of supplier
The objective of Amul dairy is not profiting. As it is a part of co-operative society, it runs for
the benefit of farmers those are the suppliersof milk and users of milk products. According
the concept of thecooperative society supplier has bargaining power to have a good returnon
his or her supply. However, supplier has limited rights to bargain withthe cooperative society
because it is made and run for the sake of mass and not for individual benefit. But it is made
sure that the supplier gets hisfair share of return.
There is appropriate bargaining power of the supplier. In olden daysthere were not any kind
of cooperative societies as the farmer wasexploited. But, nowadays the farmers rights are
protected under thecooperative rules and regulations, which ultimately results in
moderatepower of bargaining from the supplier.
3.Bargaining power of buyers
a.Cost of switching to competitor brands:The switching of brands isseen very much in
products such as ice cream, curd, milk powders, milkadditives etc. but it can be seen
comparatively less in liquid milk category.Even if the buyers shift to the other brands of milk,
the value that they getis less than they would get from consuming Amul.
b.Large no. of buyers:Milk is a necessity product and hence is a massproduct. It has a
considerable share of the rupee spent by any Indian.Moreover the buyers are spread evenly
over the country and do not haveany bargaining power.
4.Rivalry among competitors
a.Demand for the product:The demand of the products of GCMMF isincreasing at a very
healthy rate. To stand against the rivalry GCMMF iscoming with a wide range of products.
b.Nature of Competitors:In different business category GCMMF facescompetition from
different players. In the Milk powder category it facescompetition from Cadbury & Nestle, in
the chocolate category also I facescompetition from Cadbury & Nestle. While in the ice
cream market it facescompetition from Kwality Walls Max and Havmor. In butter and
chesses it faces competition from Britannia. Moreover in almost all categories thereis
presence of local retailers and processors and milk vendors. Rivalryintensifies as each of the
competitors has different lines and this would inturn depend on the importance the line holds
for the competitor.
c.Mergers and Acquisitions:As such in the industry there are nomergers or acquisitions.
However if any MNC wishes to enter through thisroute then the competition might be severe.
5.Threats Of Substitute
a.Availability of attractive priced substitutes:Different substitutes are available for different
category of products. There is ample availability of low priced substitutes from local vendors
and retailers. This is a frontwhere GCMMF is still finding hard to combat.
b. Satisfaction level of substitutes:Customers do consider theseproducts as equal on quality if
not better then the products of GCMMF.Hence the rate of customers switching to the
substitutes is very high.Moreover the buyers also can switch to the customers easily without
anyhurdles.Not immediate substitutes:Distant substitutes are present in manyof the categories
of business of GCMMF. For example in the MastiButtermilk category it faces competition
from cold drinks and ice cream.
These 5 forces interact among themselves at different degrees over a period of time.
Moreover it will get intense or loosen up depending upon the moves of itscompetitors,
buyers, suppliers, etc. However GCMMF has been able tooutperform on almost all fronts
excluding a few lines of business

4 .PEST ANALYSIS.
PEST analysis (Political, Economic, Social and Technological analysis) describes a
framework of macro-environmental factors used in the environmental scanning component of
strategic management
The basic PEST analysis includes four factors:
Political factors are basically to what degree thegovernment intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law, environmental
law, trade restrictions, tariffs, and political stability. Political factors may also include goods
and services which the government wants to provide or be provided (merit goods) and those
that the government does not want to be provided (demerit goods or merit bads).
Furthermore, governments have great influence on the health, education, andinfrastructure of
a nation.
Economic factors include economic growth, interest rates, exchange rates and the inflation
rate. These factors have major impacts on how businesses operate and make decisions. For
example, interest rates affect a firm's cost of capital and therefore to what extent a business
grows and expands. Exchange rates affect the costs of exporting goods and the supply and
price of imported goods in an economy.
Social factors include the cultural aspects and include health consciousness, population
growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors
affect the demand for a company's products and how that company operates. For example, an
aging population may imply a smaller and less-willing workforce (thus increasing the cost of
labor). Furthermore, companies may change various management strategies to adapt to these
social trends (such as recruiting older workers).
Technologicalfactors include technological aspects such as R&D activity, automation,
technology incentives and the rate of technological change. They can determinebarriers to
entry, minimum efficient production level and influence outsourcing decisions. Furthermore,
technological shifts can affect costs, quality, and lead to innovation.
PEST ANALYSIS IN AMUL
a)Political
Since the budget range is decontrolled, no political effects are envisaged.
b)Economic-
1) Increasing per capita income resulting in higher disposable income
2) Growing middle class/urban population increase in demand.
3) Low cost of production better penetration.
c)Social
1) Per capita consumption expected to increase fashion.
2)Increasing gifts culture, increase in demand.
3) Lower cholesterol than Mithais (sweet meat) substitute demand
d) Technology
Will have to reinforce technology to international levels once India is a free economy
5.PROMINENT STARTEGIES ADOPTED BY AMUL
AMULs business strategy is driven by its twin objectives of
i)long-term, sustainable growth to its member farmers, and
ii) value proposition to a large customer base by providing milk and other dairy products a
low price. Its strategy, which evolved over time, comprises of elements described below.
Simultaneous Development of Suppliers and Customers:
From the very early stages of the formation of AMUL, the cooperative realized that
sustained growth for the long-term was contingent on matching supply and demand. Further,
given the primitive state of the market and the suppliers of milk, their development in a
synchronous manner was critical for the continued growth of the industry. The organization
also recognized that in view of the poor infrastructure in India, such development could not
be left to market forces and proactive interventions were required.
Accordingly, AMUL and GCMMF adopted a number of strategies to assure such growth.
For example, at the time AMUL was formed, the vast majority of consumers had limited
purchasing power and was value conscious with very low levels of consumption of milk and
other dairy products. Thus, AMUL adopted a low price strategy to make their products
affordable and guarantee value to the consumer. The success of this strategy is well
recognized and remains the main plan of AMUL's strategy even today
. The choice of product mix and the sequence in which AMUL introduced its products is
consistent with this philosophy. Beginning with liquid milk, the product mix was enhanced
slowly by progressive addition of higher value products while maintaining desired growth in
existing products. Even today, while competing in the market for high value dairy products,
GCMMF ensures that adequate supplies of low value products are maintained.On the supply
side, as mentioned earlier, the membersuppliers were typically small and marginal- farmers
had severe liquidity problems, were illiterate and had no prior training in dairy farming.
AMUL and other cooperative Unions adopted a number of strategies to develop the supply
of milk and assure steady growth.
First, for the short term, the procurement prices were set so as to provide fair and reasonable
return. Second, aware of the liquidity problems, cash payments for milk supply was made
with minimum of delay. For the long-term, the Unions followed a multipronged strategy of
education and support. For example, only part of the surplus generated by the Unions is paid
to the members in the form of dividends. A substantial part of this surplus is used for
activities that promote growth of milk supply and improve yields. These include provision of
veterinary services, support for cold storage facilities at the village societies etc. In parallel,
the Unions have put in place a number of initiatives to help educate the members. To
summarize, the dual strategy of simultaneous development of the market and member
farmers has resulted in parallel growth of demand and supply at a steady pace and in turn
assured the growth of the industry over an extended period of time.
Cost Leadership:AMULs objective of providing a value proposition to a large customer
base led naturally to a choice of cost leadership position. Given the low purchasing power of
the Indian consumer and the marginal discretionary spending power, the only viable option
for AMUL was to price its products as low aspossible.
Focus on Core Activities: In view of its small beginnings and limited resources, it became
clear fairly early that AMUL would not be in a position to be an integrated player from milk
production to delivery to the consumer23. Accordingly, it chose a strategy to focus on core
dairy activities and rely on third parties for other complementary needs. This philosophy is
reflected in almost all phases of AMUL network spanning R&D, production, collection,
processing, marketing, distribution, retailing etc.
For example, AMUL focused on processing of liquid milk and conversion to variety of
dairy products and associated research and development. On the other hand, logistics of
milk collection and distribution of products to customers was managed through third parties.
Managing Third Party Service Providers: Well before the ideas of core competence and
the role of third parties in managing the supply chain were recognized and became
fashionable, these concepts were practiced by GCMMF and AMUL. From the beginning, it
was recognized that the core activity for the Unions lay in processing of milk and production
of dairy products. Accordingly, the Unions focused efforts on these activities and
relatedtechnology development. Marketing efforts (including brand development) were
assumed by GCMMF. All other activities were entrusted to third party service providers.
These include logistics of milk collection, distribution of dairy products, sale of products
through dealers and retail stores, some veterinary services etc. It is worth noting that a
number of these third parties are not in the organized sector, and many are not professionally
managed. Hence, while third parties perform the activities, the Unions and GCMMF have
developed a number of mechanisms to retain control and assure quality and timely deliveries
(see the sub-section on Coordination for Competitiveness later in the paper for more details).
This is particularly critical for a perishable product such as liquid milk.
Financial Strategy:AMULs finance strategy is driven primarily by its desire to be self-
reliant and thus depend on internally generated resources for funding its growth and
development. This choice was motivated by the relatively underdeveloped financial markets
with limited access to funds, and the reluctance to depend on Government support and thus
be obliged to control to bureaucracy. AMULs financial strategy may thus be characterized
by two elements: (a) retention of surplus to fund growth and development, and (b)limited/ no
credit, i.e., all transactions are essentially cash only. For example, payment for milk procured
by village societies is in cash and within 12 hours of procurement (most, however, pay at the
same time as the receipt of milk). Similarly, no dispatches of finished products are made
without advance payment from distributors etc. This was particularly important, given the
limited liquidity position of farmer/suppliers and the absence of banking facilities in rural
India. This strategy strongly helped AMUL implement its own vision of growth and
development. It is important to mention that many of the above approaches were at variance
with industry practices of both domestic and MNC competitors of AMUL.
5.1 Some examples of strategies used by amul
1.In. 2004-Repositioning Launch of Chocozoo - chocolates in shapes of motorcycles,
aeroplanes, animals and comic charaters . Targeted Kids . Introduced economic variants of
chocolates priced at Re 1, Rs 3 and Rs 5. A tub of Chocozoo chocolates were priced at
Rs 138 for 46 units of chocolates, but retailers can sell the chocolates loose, at Rs 3 each .
This, was done to attract kids. Trendy Look Removed the cute little butter girl and cheese
boy from its wrappers. New wrappers , designed by a US firm, trendy and colourful A new
tag line: Amul Chocolate For Someone You Love. Not merely gifts, but make a more
emotional pitch with emphasis on Amul Chocolates for love on all occasions .
2.In 2007 Strategy Rework Reworked its strategy in the chocolate category to push its
chocolate product sales. A new product portfolio. Strategy was to identify the market gaps
and try and fill them as done in the past with their sugar free and Choco Zoo , both of which
have been appreciated by the consumers. Placed its chocolate products at lesser price points
compared with its competitors. Concentrating on the niche segment such as health
chocholates Launched Trix , a wafer biscuit coated with rich milk chocolate.Cadbury's Perk
and Munch from Nestle are other two major players in the wafer chocolate segment
3Technology and e-initiatives
GCMMF's technology strategy is characterized by four distinct components: new products,
process technology, and complementary assets to enhance milk production and e-commerce.
Few dairies of the world have the wide variety of products produced by the GCMMF
network. Village societies are encouraged through subsidies to install chilling units.
Automation in processing and packaging areas is common, as is HACCP certification. Amul
actively pursues developments in embryo transfer and cattle breeding in order to improve
cattle quality and increases in milk yields. GCMMF was one of the first FMCG (fast-moving
consumer goods) firms in India to employ Internet technologies to implement B2C
commerce.Today customers can order a variety of products through the Internet and be
assured of timely delivery with cash payment upon receipt.Another e-initiative underway is
to provide farmers access to information relating to markets, technology and best practices in
the dairy industry through net enabled kiosks in the villages.GCMMF has also implemented a
Geographical Information System (GIS) at both ends of the supply chain, i.e. milk collection
as well as the marketing process.Farmers now have better access to information on the output
as well as support services while providing a better planning tool to marketing personnel.
4 Pricing based strategy
Setting the price based upon prices of the similar competitor products.Amuls new launch
Choco Crunch Pricing is based on three types:-1) Product is lasting distinctiveness from
competitor's product. here we can assume a)The product has low price elasticity. b) The
product has low cross elasticity. c) Thedemand of the product will rise.2) Products have
parishable distinctiveness from competitor's product, assuming the product features are
medium distinctiveness.3) Products have little distinctiveness from competitor's product.
assuming that: a)The product has high price elasticity. b) The product has some cross
elasticity. c) Noexpectation that demand of the product will rise.Price is the factor that beats
out all other choclates in the competition. Such asCadbury. If you have been you must have
seen that Amul and Cadbury frenchise areright next to each other. But if given the choice
people would prefer Amul productsand not Cadbury as the prices of Amul product is quite
cheap as compared to their competitors like Cadbury and this has worked as an advantage for
Amul since most of the customers prefer amul product over cadburys product, due to this
price factor.The prices for an average milk product ranges between Rs. 20 and Rs. 35
5 Amul Speeds Up To Drive Past Big Retailers

NEW DELHI: Fresh after crossing the billion dollar revenue mark, the Gujarat Cooperative
Milk Marketing Federation (GCMMF) is planning to open about 10,000 Amul parlours in
next three years. To better the private retail players, the federation has even roped in
designers from National Institute of Design (NID) to design its parlours, set to come up in
various locations, including corporate offices, educational institutes or high-street areas. The
time has come for us to make direct contact with the consumers and to ensure that we are not
exploited or squeezed out in the market by the big retail players like Big Bazaar or Reliance,
GCMMF will open 10,000 Amul parlours by 2010," GCMMF Chairman and General
Manager R S Sodhi told the media. An Amul parlour is a single retail outlet, which offers the
entire range of products from the federations' portfolio like milk, cheese, butter, ice creams,
beverages, other milk products and pizzas. Currently, around 1,100 outlets are already
operational across India. GCMMF is now adopting an aggressive strategy to take the number
up to 3,000 by the end of this year and eventually reach 10,000 by 2010 to penetrate deeper
into the potential markets. The federation has also started the process to choose franchises
across the country.
6 To Make Ice Cream Affordable And Available
They launched ice cream with only 100 outlets in Ahmedabad.They did not decide on the
price of the ice cream almost till just before the launch. Amuls strategy had always been to
price a quality product with affordability in mind. They decided to price a 100ml cup of ice
cream at the MRP of Rs. 6. People used to ask us how we could afford to sell at such a low
price, but I believed that if we could sell 1 kg of skimmed milk powder at Rs. 60 per kg, they
would not lose money by selling ice cream at Rs. 6 per 100 ml cup!No sooner had they
launched the ice cream in Ahmedabad; its demand went through the roof. Retailers and
consumers alike, all liked the quality of the ice cream.Fairest price! And the simplest position
-'Real Milk Real Ice-cream
Amuls best quality, low price and simple but strong positioning statement worked out well
In 2007, they also added sugar-free and probiotic ice-creams the range.The presence &
experience in other related foods business meant that quality was never compromised. To
scale the business itself, they developed unique business processes on procurement of cold
chain equipment, managing sales, delivery, managing production, quality etc. Also with their
own Retail Transformation Initiative that they had simultaneously set up a goal to open more
than 100,000 parlors to market our products and launch of ice cream gave us the edge to
execute that project well.




7.Amul Parlours
Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours
created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and
Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees
throughout the country. We have created Amul Parlours at some prominent locations in the
country, which are run by the company or its wholesale dealers: 1.

Delhi Metro Rail Corporation 2.

The Somnath Temple 3.

National Institute of Design 4.

Infosys Technologies in Bangalore, Mysore & Pune 5.

Wipro campus in Bangalore 6.

Ahmedabad Municipal Corporation 7.

Surat Municipal Corporation 8.

Delhi Police 9.

Gujarat State Road Transport Corporation "Amul Utterly Delicious" parlours are an
excellent business opportunity for investors, shopkeepers and organizations. In order to come
closer to the customer, Amul have decided to create a model for retail outlets, which would
be known as "Amul Preferred Outlets"(APO).








8.Amul Butter Girl

The moppet who put Amul on India's breakfast table
50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year
in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All
because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife
is out in the balcony drying clothes. From her second floor flat she can see her neighbours on
the road. There are other people too. The crowd seems to be growing larger by the minute.
Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is
about. She expects the worst but can see no signs of an accident. It is her four-year-old who
draws her attention to the hoarding that has come up overnight. "It was the first Amul
hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it
was our favourite topic of discussion for the next one week! Everywhere we went somehow
or the other the campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from
strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves
to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped,
looked, chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a
bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red
and white bow, holding out her favourite packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So
much so that the ads are now ready to enter the Guinness Book of World Records for being
the longest running campaign ever. The ultimate compliment to the butter came when a
British company launched a butter and called it Utterly Butterly, last year.It all began in 1966
when Sylvester daCunha, then the managing director of the advertising agency, ASP,
clinched the account for Amul butter. The butter, which had been launched in 1945, had a
staid, boring image, primarily because the earlier advertising agency which was in charge of
the account preferred to stick to routine, corporate ads.
One of the first Amul hoardings
In India, food was something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha decided it was time for a change of image.The year
Sylvester daCunha took over the account, the country saw the birth of a campaign whose
charm has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival to the
Polson butter girl. This one was sexy, village belle, clothed in a tantalising choli all but
covering her upper regions. "Eustace Fernandez (the art director) and I decided that we
needed a girl who would worm her way into a housewife's heart. And who better than a little
girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a
horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a
matter of just a few hours before the daCunha office was ringing with calls. Not just adults,
even children were calling up to say how much they had liked the ads. "The response was
phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be
successful."The Rebecca Mark favouriteFor the first one year the ads made statements of
some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester
decided that giving the ads a solid concept would give them extra mileage, more dum, so to
say. It was a decision that would stand the daCunhas in good stead in the years to come.

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement,
Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working
on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted
to the ad with a fervour that was almost as devout as the Iskon fever.That was the first of the
many topical ads that were in the offing. From then on Amul began playing the role of a
social observer. Over the years the campaign acquired that all important Amul touch.
India looked forward to Amul's evocative humour. If the Naxalite movement was the
happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread
without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian
Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul.
There are stories about the butter that people like to relate over cups of tea. "For over 10
years I have been collecting Amul ads. I especially like the ads on the backs of the butter
packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an
album of them to amuse my grandchildren," she laughs. "They are almost part of our culture,
aren't they? My grandchildren are already beginning to realise that these ads are not just a
source of amusement. They make them aware of what is happening around them."
Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy
not to play it safe. There are numerous ads that are risque in tone.
"We had the option of being sweet and playing it safe, or making an impact. A fine balance
had to be struck. We have a campaign that is strong enough to make a statement. I didn't want
the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian
Airlines one really angered the authorities. They said if they didn't take down the ads they
would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he
says laughing. Then there was the time when the Amul girl was shown wearing the Gandhi
cap. The high command came down heavy on that one. The Gandhi cap was a symbol of
independence, they couldn't have anyone not taking that seriously. So despite their reluctance
the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which
said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that
if we didn't do something about removing the ad they would come and destroy our office. It
is surprising how vigilant the political forces are in this country. Even when the Enron ads
(Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she liked them."
Amul's point of view on the MR coffee controversy
There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the
artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had
seen the hoarding while passing through a small district in UP. He said he had asked his
assistant to take a photograph of himself with the ad because he had found it so funny," says
Rahul daCunha in amused tones. Indians do have a sense of humour, afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most people
agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul
ads continue to tease a laughter out of them.
Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines.
That we laugh because the humour is what anybody would enjoy. They don't pander to your
nationality or certain sentiments. It is pure and simple, everyday fun.
SOME AMAZING ADS




6.List of Products Marketed:
Breadspreads:
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 Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
UHT Milk Range:
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
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
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:
Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
Amul Flaavyo Yoghurt
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra,
Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
Amul Kool Cafe
Amul Kool Koko
Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)


6.Conclusion
Amul has always been and remains a movement that stands for the farmer. Amul always
espoused the values of social justice, integrity and growth with entity. If Amul deserves to
be remember for anything, first and foremost it is for the difference they made and are
making in the lives of millions of farmers.
Carrying the milk drop logo, like AMUL, a symbol of quality thats why Amul makes deep
impression in customers mind.Milk is not a white good or a brown good. It is not something
people save their entire lives in order to buy like a car, or a house. Milk is not a status
symbol; rather it is the symbol of nutrition. Milk is a nearly complete food, providing
protein, vitamins, minerals and other nutrients so essential to maintaining good health
Amul is an amazing and inspiring story of how milk producers cooperative movement
created a brand so powerful that it has not only lasted for five decades but has grown into a
giant in tIt has risen from Indian soil and it remains
Indian in every sense. With roots well established in the domestic market Amul is all set to
fight in the global arena. With the commitment it has shown in the past it will not be too
long when Amul emerges a winner on all frontshe food industry.

7.REFERENCE
1.News papers:
a.Times of India
b.Economic Times
2.Internet
www.amul.com
www.scribd.com
www.casestudy.co.
www.managementparadise.com
www.docsto.com
www.icmrindia.com
www.studymode.com
www.dna.india
www.studygalaxy.com