You are on page 1of 30

1

INTRODUCTION

Marketing strategy is a process that can allow an organization to concentrate its
resources on the optimal opportunities with the goals of increasing sales and
achieving a sustainable competitive advantage. Marketing strategy includes all basic
and long-term activities in the field of marketing that deals with the analysis of the
strategic initial situation of a company and the formulation, evaluation and selection
of market-oriented strategies and therefore contribute to the goals of the company and
its marketing objectives.

Marketing strategy involves careful scanning of the internal and external
environments. Internal environmental factors include the marketing mix and
marketing mix modeling, plus performance analysis and strategic constraints. External
environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic,
cultural or political/legal environment likely to impact success. A key component of
marketing strategy is often to keep marketing in line with a company's
overarching mission statement.

Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest
food product marketing organisation with annual turnover (2012-13) US$ 2.54 billion.
Its daily milk procurement is approx 13 million lit per day from 16914 village milk
cooperative societies, 17 member unions covering 24 districts, and 3.18 million milk
producers.

2


It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known
as 'AMUL', 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. Its success has not only been emulated in India but serves as a model for rest
of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded
products. It operates through 48 Sales Offices and has a dealer network of 5000
dealers and 10 lakh retailers, one of the largest such networks in India. Its product
range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza
cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.

The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage
to dream. To hope. To live.

Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given
that it is a milk company and the wholesomeness of its products gives it a competitive
advantage. It has combated competition like Walls, Mother Dairy and achieved the
No 1 position in the country. This position was achieved in 2001 and it has continued
to remain at the top.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to
its ever growing range. Currently it offers a selection of 220 products. Amul has
always brought newness in its products and the same applies for ice creams.

Amuls entry into ice creams is regarded as successful due to the large market share it
was able to capture within a short period of time due to price differential, quality of
products and of course the brand name. In a short span of 6 years Amul Ice Cream has
become the No.1 ice cream brand in the country. It is now the only national brand and
all other ice cream brands are regional. Amul is capable of delivering ice cream from

3

Kashmir to Kanyakumari and from Gujarat to North East. No other ice cream brand
has been able to cater the nations ice cream demand in such a wide geographical
area. It makes Amul Ice Cream, Indias only National Brand!

MEANING AND IMPORTANCE OF
MARKETINGMSTRATEGIES:
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services. A marketing strategy is
composed of several interrelated components called the marketing mix: The
Marketing mix consists of answers to a series of product and customer related
questions.

Marketing strategy is defined by David Aaker as a process that can allow an
organization to concentrate its resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive advantage.

Marketing strategy includes all basic and long-term activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore
contributes to the goals of the company and its marketing objectives.

Marketing must be taken on as a long term commitment, not only to build up the
brand of a business but also to secure a steady stream of customers and constantly
appeal to potential ones.

A marketing strategy is a detailed plan of the marketing initiatives that you intend to
conduct during a set period of time. Supported by a constant system of evaluation, a
marketing strategy will help you to determine areas that you need to focus on more,

4

those you are wasting your time on or which methods work best against certain
consumer groups. Marketing strategy is all about how to achieve Marketing
objectives, marketing tactics is how to implement strategies, and administration holds
the whole thing together.
The success of a company often rests on a solid reputation. Marketing builds brand
name recognition or product recall with a company. When a company reaches the
high expectations of the public, its reputation stands on firmer ground. As your
reputation grows, the business expands and sales increase. The reputation of your
company is built through active participation in community programs, effective
communication--externally and externally--and quality products or services, which
are created or supported by marketing efforts.

Although marketing is hugely important for a business to succeed, it can also be very
expensive. In its first year, a company might spend as much as half of its sales on
marketing programs. After the first year, a marketing budget can reach as much as 30
percent--sometimes more--of the annual sales.

A marketing program that gives your company the best chance is a healthy mix of
different forms of marketing, such as website development, public relations, print and
broadcast advertising, design and printing for all print materials, trade shows and
other special events.







5

THE MARKETING STRATEGY PROCESS
Having a strong marketing strategy process in place helps to ensure that your
marketing activities remain aligned with your business goals, maximizing the
business return from your marketing efforts.

The picture on the right shows the process for developing and aligning marketing
strategy.
These are the steps you should follow to create and execute a winning marketing
strategy.

1. Understand Your Customer
Develop a clear picture of your target customer using market research and analysis.
Understand their pain points and the benefits of your solution.

2. Analyze the Market
Some basic market research should allow you to find market data such as total
available market, market growth (historical numbers and projections), market trends,
etc.

6

3. Analyze the Competition
Ask yourself what other choices your target customers have to solve their pain point.
Research and assess the strengths and weaknesses of each. Take a look at this article
for more info on competitive marketing strategy.

4. Research Distribution Channels
What is the best way to deliver your product or service to your target customers? This
will impact your sales strategy and your financials, as well as your marketing mix.

5. Define Your Marketing Mix
Check out this article about defining your marketing mix:Product, Price, Place
and Promotion.

6. Analyze the Financials
Put together your marketing budget and evaluate projected marketing ROI, customer
acquisition costs, etc.

7. Review and Revise
Continuously evaluate the effectiveness of your marketing strategy, and revise or
extend as needed.






7

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 organization, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by some 2.7 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 $1325 million (2009-10).
Currently Amul has 2.7 million producer members with milk collection average of
10.21 million liters 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

8

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. Late Dr Verghese Kurien, former chairman of the
GCMMF, is recognized as the man behind the success of Amul. The brand name
Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by
a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk
Producers Union Limited).The Amul revolution was started as awareness among the
farmers. It grew and matured into a protest movement that was channeled towards
economic prosperity.

HISTORY:
The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1
December 1946 as a response to the exploitation of marginal milk producers by
traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town
of Anand (in Kaira District of Gujarat). Milk producers had to travel long distances to
deliver milk, which often went sour in summer, to Polson. The prices of buffalo and
cow milk were arbitrarily determined. Moreover, the government at that time had
given monopoly rights to Polson to collect milk from Anand and supply it to Bombay
city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel.
He advised them to form a cooperative and supply milk directly to the Bombay Milk
Scheme instead of Polson (who did the same but gave them low prices). In 1946, the
milk farmers of the area went on a strike which led to the setting up of the cooperative
to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver at most 12 liters of milk per day.
Cooperatives were formed for each village too.


9

The Cooperative was further developed and managed by Dr.Verghese Kurien along
with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo
milk for the first time anywhere in the world and a little later, along with Kurien's
help, making it on a commercial scale, led to the first modern dairy of the cooperative
at Anand, which would compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in
other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.
In order to combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing body of these
district cooperatives was set up in 1973. The Kaira Union which had the brand name
of Amul with it since 1955, transferred it to GCMMF.

In June 2013, it was reported that the Kaira District Cooperative Milk Producers
Union Limited, better known as Amul Dairy, had signed a tripartite agreement to start
a dairy plant in Waterloo village in upstate New York. The plant will initially
manufacture paneer and ghee. Amul will utilize an existing dairy plant owned by New
Jersey-based NRI Piyush Patel for manufacturing. The plant is strategically located,
as it close to supply centres from where raw material is procured, and is also near
New Jersey, which has a large Indian population.

Amul said that it will be able to produce and supply Amul products in the US as well
as Canada, and export it to Europe, under the arrangement.

The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half
decades, Dairy Cooperatives in Gujarat have created an economic network that links
more than 3.1 million village milk producers with millions of consumers in India.

10

The turnover of GCMMF (AMUL) during 201011 was INR97.74 billion (US$1.7
billion). It markets the products, produced by the district milk unions in 30 dairy
plants. The farmers of Gujarat own the largest state of the art dairy plant in Asia
Mother Dairy, Gandhinagar, and Gujarat which can handle 3.0 million litres of milk
per day and process 160 MTs of milk powder daily.

The Amul Model is a three-tier cooperative structure. 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 further 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 and milk products marketing at the State Milk
Federation. The structure was evolved at Amul in Gujarat and thereafter replicated all
over the country under the Operation Flood Programme, it is known as the Amul
Model or Anand Pattern of Dairy Cooperatives.

AMUL is also the largest exporter of dairy products in the country. AMUL is
available today in over 40 countries of the world. AMUL is exporting a wide variety
of products which include whole and skimmed milk powder, cottage cheese (Paneer),
UHT milk, clarified butter (Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and
others such as Mauritius, Australia, Hong Kong and a few South African countries. In
September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands. In 2011, Amul was named the Most
Trusted brand in the Food and Beverages sector in The Brand Trust Report, published
by Trust Research Advisory. rediff.com; "India's top 20 brands: Amul is No. 1"



11

PRODUCTS:


Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi,
Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently
launched brown beverage just like bournevita and horlicks offering whey protein,
DHA and essential nutrients.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool, a
low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink
coffee and India's first sports drink Stamina.

Amul's ice creams are made from milk fat and thus are ice creams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation
Marketing Award for 2007.



12

MASCOT:

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" or
Amul girl (a chubby butter girl usually dressed in polka dotted dress) showing up on
hoardings and product wrappers with the tagline Utterly Butterly Delicious Amul. The
mascot was first used for Amul butter. But in recent years in a second wave of ad
campaign for Amul products, she has also been used for other products like ghee and
milk.
AMUL a name which suggest THE TASTE OF INDIA sells 35 million litres of ice-
cream valued at more than Rs 200 crore out of a total branded ice-cream market of
100 million litres worth Rs 600 crore. The Amul ice-cream business is currently
growing at the rate of more than 20 percent.








13

AMULS ICE- CREAMS MARKET STATUS:
Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio
consisted of impulse products like sticks, cones, cups as well as take home packs and
institutional/catering packs. Amul ice cream was launched on the platform of Real
Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its
products gives it a competitive advantage.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata
and Delhi in 2002. Nationally it was rolled out across the country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position
in the country. This position was achieved in 2001 and it has continued to remain at
the top.
Today the market share of Amul ice cream is 38% share against the 9% market share
of HLL, thus making it 4 times larger than its closest competitor.

When looked at closely, about half the organized market is dominated by dairy giants
like Amul (ice cream biz contributes only 5% to its turnover) & Mother dairy, adding

14

another 22% for the regional players. Between Vadilal, Kwality walls, Cream bell
and a handful of premium brands theres about 40% of the cone.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to
its ever growing range. Currently it offers a selection of 220 products. Amul has
always brought newness in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice
Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic
Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious.
Amuls entry into ice creams is regarded as successful due to the large market share it
was able to capture within a short period of time due to price differential, quality of
products and of course the brand name.

Amul Ice Cream was launched on 10th March, 1996 at Ahmedabad. Subsequently the
distribution and marketing operations were rolled out across the country.
In a short span of 6 years Amul Ice Cream has become the No.1 ice cream brand in
the country. It is now the only national brand and all other ice cream brands are
regional.

Amul Ice Cream has achieved 38% share against 9% market share of HLL making it
4 times larger than its closest competitor.

The organized ice cream industry in India has a booming growth rate of 12-15%
annually. Amul Ice Cream has 40% market share as of now (4.5 times larger than
nearest competitor) through distribution network in more than 800 towns. Amul is
capable of delivering ice cream from Kashmir to Kanyakumari and from Gujarat to
North East. No other ice cream brand has been able to cater the nations ice cream

15

demand in such a wide geographical area. It makes Amul Ice Cream, Indias only
National Brand!

Amul ice-creams were launched on 10
th
March, 1996 in Gujarat. It was lauched on the
platform of Real Milk Real Ice-cream. In 1997, Amul ice-creams entered Mumbai
followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled
out across the country in 1999.

The punch line of Amul Ice Cream Real Milk Real Ice Cream states its the best
quality product made of real milk and milk fats and not vegetable oil (frozen
dessert). Recipe used for Amul Ice Cream is on the line of Super Premium Ice Cream
i.e. 35% creamier and tastier than any other ice cream available in India.

Amul does not compromise on quality of the products offered, may it be consumer
product or bulk packs. All the products have same quality standards in terms of fat,
over run, total solids etc. It is their objective to give their customer uniform
experience anywhere they consume Amul Ice Cream. Amul Ice Cream is
manufactured in state of the art plants certified by ISO & HACCP.

Amul is the first company in the India to introduce probiotics in ice cream, for which
IDF (International Dairy Federation) has awarded GCMMF the Best Innovation in
Nutri Marketing Category.

They have introduced SUGAR FREE Ice Cream in Bulk Pack to cater this segment
and are the first who made this ice-cream especially for diabetic Patient who feel guilt
while others are eating Ice-cream in Marriages.



16

SWOT ANALYSIS:
STRENGTH:
1. Good product range include various flavors, party packs, sticks, cones etc
2. Good quality and packaging, and good advertising
3. Amul is one of the most respected top-of-the-mind brands
4. Also launched probiotic and sugar free ice-cream
5. Offers over 200 products across India

WEAKNESS:
1. Growing competition form international and other brands means limited market
share
2. Limited international presence as compared to leading global brands

OPPORTUNITY:
1. High End ice-cream to tap the higher income group also
2. Tie-up with food chains, restaurants
3. Mobile vans for better visibility

THREATS:
1. Kulfi in rural markets
2. Local ice creams and sweet dishes
3. Health conscious people refraining from sweets



17

MARKETING STRATEGIES OF AMUL ICE-CREAMS:
MARKET RESEARCH
Amul conducts basically two types of market research. One is for products and
another for the advertising conducted by the company. These research results serve as
an input in future decision making. The company collects feedback from the
customers, about the effectiveness of its advertising campaign and liking of the
product especially in case of any new products launched. It tries to find out by
conducting a survey in a target market whether or not the product is liked by the
consumers and ask for their suggestions for improvement.

However Amul is not much into conducting research before the launch of the product.
Most of its research is done only once when the product is already launched in the
market. It doesnt have any separate department for this purpose but its sales agents
themselves do the work of research for the company. Yet the results are almost
comparable to those conducted by professionals.

NEW PRODUCT DEVELOPMENT
A number of decisions are taken by Amul with regards to launch plans and
Strategies for the new product, which are as under:
Deciding the target customers
Designing the promotional campaign
Deciding the price
Market analysis
Deciding the sales force to be employed
Deciding the marketing mix
Deciding whether to launch the product across the country or in the selected
area.
Appointing distributors

18

Conducting market research

MARKETING MIX:

Marketing mix is the combination of the elements of marketing and what roles each
element plays in promoting your products and services and delivering those products
and services to your customers.
When marketing their products firms need to create a successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion.

Amul ice-creams adopted customers oriented marketing mix to attract customers as
much as it can. It follows differentiation strategy which states that the product is
unique in the industry and provides distinct advantage to the customers. One of the
prominent marketing strategies of Amul is focusing on all clases of customers.

AMUL ICE-CREAMS PRODUCT RANGE:
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)

19

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)

PRICING:
The amount of money charged for a product or service or the sum of the values that
consumers exchange for the benefit of having or using the product or service is called
its price. A companys pricing decisions are affected by both internal factors like
companys objectives, marketing mix strategy, cost and organizational considerations
and external factors like nature of the market and demand, competition and other
environmental elements. While deciding the price of its products Amul takes into
consideration all the below mentioned factors, this is true for all the products.
Cost of raw materials
Cost of labour
Profit margin of distributors

20

Various administrative and manufacturing overheads
Prices of the competitors
Demand and supply position in market
Fair return to the farmers
Its price also varies for different ice-creams, depending upon the cups, cones, candys,
1liter and 2liter tubs.

Amul believes that the company with largest market share will enjoy lowest cost and
highest long run profit to become the market leader. They set prices as low as
possible. Amul employs different pricing policies for different products depending
upon the life cycle stage of the product, market condition and the nature of product. In
case if the product is newly launched in the market the company doesnt emphasize
on the profit margin and keeps its prices as low as possible so as to penetrate in the
new market.

However in case of the already established products the company uses a mix of cost
plus pricing approach and competitor based pricing approach i.e. it sets its prices
keeping in view the cost of production, desired profit margin and prices of
competitors products.

PROMOTION:
The Taste of India these four words are more than what the common man may think
of these a mere slogan. Advertising people call this corporate positioning. But
jargon apart these four words lend meaning to Amul's never ending crusade; they
reinforce Amul's commitment of taking quality food products right down to the rural
man, products, the common man otherwise would have never afforded.


21

Amul advertises its ice-cream through vehicle advertising, outdoor billboards, point of
sale displays, advertisements on television and on social networking sites.

PLACE:
Amul sells its product directly to the end users through retailers (outlets) and
shopkeepers. The ice-creams are transported to retailers and shopkeepers through
private transportation firms. The ice-creams are made available directly to consumers
using cycles and their own personnels.

LABELING:
Labeling printed information that appears on or with the package, is also a part of
packaging. Labels may range from simples tags attached to products to complex
graphics that are part of the package. Label identifies describes and promotes the
product through attractive graphics. The labels of the products of Amul are
attractively designed. It contains all the information as per statutory requirements.
Information like name of product, brand name, logo, date of packing &
manufacturing, expiry date, price, code number, ingredients, storage and usage
instructions, weight, manufacturers and marketers name, logo showing PURE
VEG etc appears on the label of the products.

BRAND EQUITY:
Brand equity is a phrase used in the marketing industry which describes the value of
having a well-known brand name, based on the idea that the owner of a well-known
brand name can generate more money from products with that brand name than from
products with a less well known name, as consumers believe that a product with a
well-known name is better than products with less well known names.


22

Brand Awareness:
Awareness ultimately enhances brand equity. AMUL enjoys very high brand
awareness among its customers. According to the survey done by the company, brand
awareness is as high as almost 90%.

Brand Image:
Brand image is the meaning consumers give to a product based on the perceived
values it delivers. Amul has created brand image by offering excellent quality
products at reasonable price. Perfect distribution channel; continuous & effective
advertising; use of different promotional tools; wide loyal market share, has
contributed to create an excellent image in its trade operations.


TARGET MARKET:
A target market is a group of customers that the business has decided to aim its
marketing efforts and ultimately its merchandise towards. A well-defined target
market is the first element to a marketing strategy. The marketing mix variables
of product, place(distribution), promotion and price are the four elements of
a marketing mix strategy that determine the success of a product in the marketplace.

The main target market for ice cream is children and families. Thirty four percent of
such households with children consume four or more quarts of ice cream per month,
which is significantly higher than the twenty percent of the family units without
children. Preferences vary according to the age and gender of the ice cream
consumer. While growing at a phenomenal pace, Amul has always taken care to offer
delectable flavours to all age groups across the society. Over the years, Amul has
added diverse flavours to its range of ice creams so that one can have variety of
choices.

23

As per Market survey, most of the people are today becoming health and calorie
conscious. Amul wanted to capture this health conscious market segment of ice cream
consumers with the launch of its specially created Probiotic wellness ice cream. In
January 2007, Amul introduced Sugar Free & ProLife Probiotic Wellness Ice Cream
which was a first in India.

PACKAGING:
Packaging is an important part of marketing a product. It catches the customers'
attention. It also provides information about the product to the customer; on the other
hand it protects the product. Amul ice-creams are packaged in sticks, cones, cups as
well as take home packs and institutional or catering packs. The packs are available as
following:
Cone: 120 ml, 100ml, 80 ml & 50 ml
Cup: 125 ml, 100 ml, 80 ml, 90 ml & 40 ml
Plastic Container: 1 litre, 750 ml, 500 ml, 125 ml, 100 ml, 80 ml & 60 ml
Stick: 70 ml, 60 ml, 40 ml
Take Home Bulk / catering packs: (5 litre, 4 litre), take home packs (2.2 litre, 1.5
litre, 1.25 litre, 1 litre), combo packs (750 ml+750ml Free) and family packs (500 ml,
250 ml).

PROMOTIONS OF ICE-CREAM:
Advertising or advertizing is a form of communication for marketing and used to
encourage, persuade, or manipulate an audience (viewers, readers or listeners;
sometimes a specific group) to continue or take some new action. Most commonly,
the desired result is to drive consumer behavior with respect to a commercial offering.
Sales promotions are another way to advertise.


24

Sales promotions are double purposed because they are used to gather information
about what type of customers you draw in and where they are, and to jumpstart sales.
Sales promotions include things like contests and games, sweepstakes, product
giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of
sales promotions is to stimulate potential customers to action.

With regards to promotion Amul considers strengthening its positioning through its
various advertisements and promotions. For this it plans to advertise actively through
the media, viz cable channels and newspapers, also sponsoring more shows on TV,
sports etc.

Amul Ice Creams are the best match to special occasions as they combine the
goodness of real milk, and are available in an array of flavours. However, with the
increasingly hectic lifestyle of today, people are spending less time with their family
and friends. Amul Ice Cream, through its latest TVC, aims to convince people to
squeeze out some time for family and friends and celebrate the simple joys of life
with the exciting take home range of ice creams in the new avatar of tubs. The TVC
created, urges consumers to slow down in the super frenzied lifestyle and come
together over an Amul Ice Cream Tub, thus instigating them to Catch up.


DISTRIBUTION CHANNEL:
Distribution of products takes place by means of channels. Channels are sets of
interdependent organizations called intermediaries involved in making the product
available for consumption. Merchants are intermediaries that buy and resell products.
The firm's marketing department needs to design the most suitable channels for the
firm's products, and then select appropriate channel members or intermediaries. The
firm needs to train staff of intermediaries and motivate the intermediary to sell the

25

firm's products. The firm should monitor the channel's performance over time and
modify the channel to enhance performance.

The distribution of Amul ice-creams can be explained as follows:
The ice creams that are produced in the manufacturing units are passed on to carrying
and forward agents who transport it to the distributors. The distributors then send the
products to the retailers who sells it to the final consumers or from the distributors
place the ice creams goes to the vendors shops who the finally sell it to the
consumers. The whole process is done by making use of freezers with the required
temperatures so as to protect the ice-creams from melting and any other damages.
















26

SUGGESTION TO INCREASE THE SALE OF AMUL ICE-
CREAMS:

In India there is sufficient scope for the ice cream companies to expand their business.
Now the consumer are moving towards the branded companies so retailers want to
become the part of this growing fields and the margin is also very good in comparison
to other products like cold drinks, biscuit , chocolates etc. Some retailers were not
interested in keeping the ice cream due to many problems associated with the ice
cream like first it needs a big amount of investment, so the retailer dont want to
invest their own money to keep the ice cream.

The first and the most important factor is, all the retailers do not want to invest their
money in purchasing the deep freezer and if any company is providing the deep
freezer on security basis or on the installment then the retailers will definitely go for
the same company irrespective of the brand name.

Second factor is the margin provided by the company. Here the amul is the leader in
the branded companies. Amul is providing the best margin of 21.25%. The third
factor is the product range if the product range is large then the retailers will definitely
go for that company. Here also amul is providing the best range. The fourth factor is
the after sales service. This is one of the most important factor which influence the
retailers to keep the ice cream. Here the main area of improvement for amul is the
after sales service. Amul should concentrate more on the existing customer than
opening a new outlet because if existing customer are satisfied only then the company
can grow.

Amul can also increase its sale by opening more outlets. If the outlet is very good then
the company should give some relaxed schemes to the retailer because the retailer will
help in creating the good brand image.

27

Amul does very less advertising on T.V. and radio. Advertising on TV and radio
leaves their impact on the consumers mind. If they create good advertisement on
electronics media then the sale of amul could be double because due to
advertisements the consumer gets to know about the products and the current schemes
running. The company can make use of brand ambassadors like celebrities to
popularize their brands and attract more customers.

Amul should give the more concentration on the pushcart in those areas where the
amul outlets are very less or the sale of the ice cream is very less. Pushcart implies
impulse buying. The company should try to increase the impulse buying behavior of
the consumer by opening the more outlets or the pushcart in the area where the
company can find more consumers. Amul should open their exclusive retail outlets at
the shopping malls and restaurants. Where amul can sell all the products
manufactured by them. These types of retail outlets now a days are very popular. The
public now a days go to malls very frequently for watching movies and for shopping
so outlets in mall can be very beneficial.












28

CONCLUSION:

Amul Ice Creams have consistently combated competition like Kwality Walls,
Mother Dairy and other brands. The customers have shown huge faith in the quality
of Amul Ice Creams and today its the No. 1 ice cream brand of the country. While
growing at a phenomenal pace, Amul has always taken care to offer delectable
flavours to all age groups across the society. Over the years, Amul has added diverse
flavours to its range of ice creams so that one can have variety of choices.

Amul does not compromise on quality of the products offered, may it be consumer
product or bulk packs. All the products have same quality standards in terms of fat,
over run, total solids etc. It is their objective to give their customer uniform
experience anywhere they consume Amul Ice Cream.

Marketing must be taken on as a long term commitment, not only to build up the
brand of a business but also to secure a steady stream of customers and constantly
appeal to potential ones.

Amul ice-creams adopted customers oriented marketing mix to attract customers as
much as it can. It follows differentiation strategy which states that the product is
unique in the industry and provides distinct advantage to the customers. One of the
prominent marketing strategies of Amul is focusing on all clases of customers. It
entered into the market through penetration pricing strategy. Amul believes that the
company with largest market share will enjoy lowest cost and highest long run profit
to become the market leader. They set prices as low as possible.

With regards to promotion Amul considers strengthening its positioning through its
various advertisements and promotions. For this it plans to advertise actively through

29

the media, viz cable channels and newspapers, also sponsoring more shows on TV
like Amul Star Voice of India, Amul Masterchef etc, sports etc.

Amul has combated competition like Walls, Mother Dairy and achieved the No 1
position in the country. This position was achieved in 2001 and it has continued to
remain at the top. Not only has it grown at a phenomenal rate but has added a vast
variety of flavours to its ever growing range. Amuls entry into ice creams is regarded
as successful due to the large market share it was able to capture within a short period
of time due to price differential, quality of products and of course the brand name.

Amul is capable of delivering ice cream from Kashmir to Kanyakumari and from
Gujarat to North East. No other ice cream brand has been able to cater the nations ice
cream demand in such a wide geographical area. It makes Amul Ice Cream, Indias
only National Brand!

Nearly 4 times as large as its nearest competitor, it is now the only national brand.
Amul has been able to write such a success story because of the quality of its
products, economic pricing and the belief consumers have in the brand.









30

BIBLIOGRAPHY:
Philip Kotler, Marketing management, (9ndedition)
M.S. Agarwal, Marketing Strategy, (2
nd
edition)
Duncan, Principle of Advertising and IMC, (2
nd
edition)
Satish K Batra , Consumer Behavior, (1
st
edition)
Thomos L Wheelen, Strategic Mgmt and Business Policy, (9
th
edition),
Rajan saxsena, Marketing Strategy,(3
rd
edition)

WEBLIOGRAPHY:
www.amul.com
www.marketresearch.com
www.dairy.com

You might also like