Product

Analysis

Submitted By:

Ravishekhar Kumar

20142144

Rachita Luthra
Pooja Sharma

20142052

Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana,
MBA-2014-2016

Contents
Introduction
1

Amul :The origin

Working Structure
Market functioning

1
2
3-5

Micro and Macro analysis

SWOT Analysis

6-7

PESTEL Analysis

7-8

Porter Five forces Analysis

8-9

Market segmentation

10-11

Marketing Mix :4Ps

12-14

Future Challenges

14-15

Recommendations

15

Website ,Bibliography and References

16

Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana,
MBA-2014-2016

AMUL: The Origin

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of theHimalayas. Similar is
the story of Amul, which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It
began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to
the flood it has become today. Today Amul collects processes and distributes over a million liters of
milk and milk products per day, during the peak, on behalf of more than a thousand village
cooperatives owned by half a million-farmer members. Further, as Ganga-ma carries the aspirations of
generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers,
creating a pattern of liberation and self-reliance for every farmer to follow

Structure of AMUL Diary:

Amul is joint working unit of three bodies 1) NDDB: National dairy development board : Funding
Agency for production unit 2)GCMMF (Gujarat cooperative Milk marketing federation: milk collecting
units and marketing

3)AMUL ( Amul milk federation union limited) Brand

in the market with

cooperative units.
The core of production system is its conversion subsystem where in workers; raw materials are used
to convert inputs into products and services. This production department is at heart of the firm, as it is
able to produce low cost products and superior quality in timely manners.
Thus, there arises enormous need of giving due importance to this department as a whole and a
strong concrete base being foundation pillars of a manufacturing organization, if the intention is to
succeed domestically and globally.2

Marketing Function
Gujarat Co-operative Milk Marketing Federation (GCMMF)
GCMMF was the first co-operative to be set up under operation flood. GCMMFS dairy plant
commissioned in 1994 is one of the most modern and largest plants. It can handle up to 1million litres
of milk per day. The plant also has facilities for pasteurizing and packing. It was funded by NDDB.
GCMMFs milk is sold under its flagship brand Amul.
GCMMF was formed in 1973. As an apex marketing federation of 12 district milk unions of Gujarat to
operate own marketing and distribution network in India and abroad.
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MBA-2014-2016

GCMMF sales turnover grew by 21% Rs. 15.5 billion to Rs. 18.8 billion including consignment sales of
Rs. 3.7 billion sale of Amul milk in Gujarat and Maharastra increased by 11% and 16% respectively.
Dairy product turnover registered a 19% growth. Amul butter registered 18% growth. The sale of Amul
& Sagar Ghee increased by 47%. Amul Cheese registered 60% value growth.
GCMMFs sales to the defense services were Rs.233 million during the year, were mainly to Burma,
Uganda and West Africa. The company plans to expand its export markets in Saudi Arabia and other
Middle East countries.
During 1999, launching it in 8 states and 2 union territories extended the Amul ice-cream brand
franchise. Amul ice creams have become Indias 2

nd

largest brand. Recently it has commissioned a

dairy at Kolkata.
New products launched during the early 2000 were Amul Pizza, Cheese and Amul slice cheese, Amul
paneer and Amul Mithaee range. Safal mango drink has been launched by Strategic alliance with
Safal (A union of NDDB). The product range to be launched under the Safal brand will include fruit
drinks, squashes, pickles, jams, and ketchup and mango pulp.
Amul ice-cream brand franchise was extended with launch in 8 states & 2 union territories. Amul ice
cream has become the 2

nd

largest brand in the country & has garnered major share in its existing

markets in a short time span of 3 years. Amuls main ice-cream manufacturing facility is located at
Gandhinagar which is Asias largest and most modern integrated ice-cream manufacturing plant and
uses world renewed refrigeration units and an efficient cold chain. GCMMF has become very popular
because of its excellent marketing strategy. GCMMF marketing strategy is to understand the
consumer needs, develop products that provide superior value at fewer prices. GCMMF has shown a
tremendous commitment to the floodwater situations. GCMMF has never stopped the supply of milk
and other milk products. And unlike other competitors, it has never taken wrong benefits in these kinds
of situations. It has developed an excellent distribution channel to provide its products to the
consumers. It has made its products available in each part of Gujarat & India.

Market Segmentation
Market segment is a very important function for the market department of the GCMMF, because the
market consists of buyers different in many ways. They are different in their wants resources, locating
buying practices. Because buyers have unique needs and wants, each buyer is potentially separate
market.

Geographic segmentation
Under these variables, GCMMF has divided market into different geographic units such as region,
states, cities etc. GCMMF sells its products by geographic segment action like in the north where
production of milk is very high the sale of
Amuls product is not much. But in the western region it is high. GCMMF identifies this kind of
variables and deals with it.

Demographic Segmentation
Under this variable GCMMF has divided market into several segments such as age, gender, family,
size, income, occupation etc. For each group GCMMF marketing strategy is different. In milk Amul
targets all the class where as in the other products like butter, ghee, ice-cream etc. it targets to the
middle and higher middle class.
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Distribution Network
Most producers work with marketing intermediaries to bring their products to market. The marketing
intermediaries make up a marketing channel also called distribution cannel. Distribution channels are
sets of interdependent organizations involved in the process of making a product or service available
for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal
offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49
Depots located across the country and GCMMF caters to 13 Export markets.
A zero level of channel also called a direct marketing channel consists of a manufacturer selling
directly to the final customers. A one level channel; contains one selling intermediary such as retailer
to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A
three level channel are typically wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular.
GCMMFs products like milk and milk products are perishable. It becomes that much important for
them to have a good distribution.

Distribution Chart
Products
Agents
Wholesaler

Retailer
Consumer

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MBA-2014-2016

We can see from above figure that GCMMF distribution channel is simple and clear. The products
change hands for three times before it reaches to the final consumer. First of all the products are
stored at the Agents end who are mere facilitators in the network. Then the products are sold to
wholesale dealers who then sell to retailers and then the product finally reaches the consumers.
Amul Parlors
Amul has come out with a unique concept of Amul Parlours. They have classified them under four
types namely:
Center for excellence
On the Move
Amul Parlours
Amul Preferred Outlets
Center for Excellence: These Amul Parlours are specifically at a place, which has a class of
excellence of its own. We can find such parlors at the Infosys, IIMA, NID Ahmedabad etc.

On the Move: These parlors are at the railway stations and at different state bus depots across
different cities.

Amul Parlours: These parlors can be seen at different gardens across different cities. These are
fully owned by Amul.
Amul Preferred Outlets: These are the private shops that keep the entire of product range of Amul.
They also agree not to keep any competitor brands in the outlets. They can keep other brands that are
in the non-competitor category.
Amul has more than 200 such outlets right now. It wants to have 1,00,000 parlors by the end of the
year 2010.

Managing Competition
The Indian market is dominated by a large number of small local and regional players. There are an
estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and
about 1000 units in the unorganized segments of the market. In the organized segment the significant
brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is
facing very tough competition from both in and outside India.
Amul combats competition from its competitors by providing quality products at a price which its
customers value. Along with good quality products and reasonable price the packaging is also very
good. Most of its products are available in many flavors. Excellent advertising backs its products and
helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul
Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the
Domestic market. Many products are exported by GCMMF.
Exports
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status.
GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product
Exports for the last 9 years.
The major export products are:
Consumer Packs

Amul Pure Ghee

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Amul Butter

Amul Shrikhand

Amul Mithaee Gulabjamun

Nutramul Brown Beverage

Amulspray Infant Milk Food

Amul Cheese

Amul Malai Paneer

Amul UHT Milk (Long Life)

Amul Fresh Cream

Bulk Packs

Amul Skimmed Milk Powder

Amul Full Cream Milk Powder

The products are exported to 18 countries namely, USA, Kuwait, Qatar, UAE, Yemen, Bahrain,
Muscat, Saudi Arabia, Tanzania, Madagascar, Sri Lanka, Singapore, Nepal, Bangladesh, Nepal
Thailand and Australia.
Advertising by Amul
Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha.
FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand,
Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant
Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul
Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream,
Sagar Skimmed Milk Powder and Amul Whole milk Powder.
Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter billboard
campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks
after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and
Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh
Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul.

Reasons for Success

Robust Supply Chain
The vast and complex supply chain
Hierarchical network of cooperatives
Stretches from small suppliers to large fragmented markets
Low Cost Strategy
Amul adopted a low-cost price strategy to make its products.
Affordable and attractive to consumers by guaranteeing them value for
money
Diverse Product Mix
Amul Butter,
Milk
Ghee,
Amulspray,
Chocolates,

Powder,
Cheese,
Shrikhand,

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 Ice cream, Nutramul,

Milk and Amulya
Strong Distribution Network
Amul products are available in over 500,000 retail outlets across.
India through its network of over 3,500 distributors.
47 depots with dry and cold warehouses to buffer inventory of the
entire range of products.
Technology and e-initiatives

New products
Process technology
Complementary assets to enhance milk production
E-commerce.

SWOT Analysis of Amul dairy products

Strengths

Amul has the reputation of being the largest food brand in India
Amul provides high quality product at low price
It provides a varied range of dairy product
Grading and packaging of all its products meets international
standards
Its signature product is the pasteurized milk pouches which ranks
as the top in its segment
It had an annual turnover of US $2150 million
Amul has a robust distribution network: Amul products are
available in over 500,000 retail outlets across India through its
network of over 3,500 distributors
Amul being an Indian company creates a feeling of oneness in the
mind of the customers
It provides quality and imprints confidence and thus befits loyalty
in the minds of the customers since it manufactures only milk and
milk products which is purely vegetarian
It is aiming at to enter into the rural segment also, which covers a
large area of its loyal and prospective customers, which other
companies had failed to target and exploit this lucrative
opportunity
Amul has a huge customer and market base in India with its
butter and dairy products and so can easily promote selling of
chocolates without fearing of losses and decreasing revenue
The prices of chocolates of Nestles are comparatively cheaper as
compared to the prices of other companies

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Weaknesses
It faces a potential high risk due to its highly complex supply
chain system
It has a strong dependency on its weak infrastructure
It has many alliances with the third parties who do not belong to
the organized sector which can make it pretty vulnerable
There are various big players in the chocolate market, which acts
as major competitors restricting their growth and expansion
opportunities
Capital investment and market capitalization is relatively lower in
absolute terms as compared to the amount of capital invested by
other companies
It suffers with an improper distribution channel across its network
in India
It has recently reduced its expenditure on promoting and
advertising its products through T.V. and hoardings. This might
reduce its brand visibility an reduce its sales.

Opportunities
Ability and capability to penetrate international markets and
globalization of its products
Diversify product portfolio to enter new product categories and
expand existing categories like processed foods, chocolates etc
There is a lot of potential for growth and development as huge
population stay in rural market where other companies are not
targeting
The chocolate market is at growth stage with very less
competition so by introducing new brand and intensive
advertising there can be a very good scope in future
It should promote Tie-ups with various Food chains.

Threats
It has threats from its Competitors like Hindustan Lever and
Britannia. The major threat is from other companies who hold the
majority share of consumers in Indian market i.e. Cadburys and
Nestle
It also faces competition from MNCs in butter
Growing price of milk and milk products may reduce its volume of
sales and profit margin
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 It may face serious issues on capitalizing on its foreign exchange

reserve due to the prohibition exerted on its exports of
milkpowder
There exists no particular brand loyalty in the chocolate market
as consumers frequently shift their brands due to changing tastes
and preferences.
New companies entering in the Indian domestic market like
Fantasie fine may pose issues and lot of problems for Amul
It faces potential threats from the unorganized sector for milk
vendors as of such.
PESTEL ANALYSIS OF AMUL
P: Political
Since the budget range is decontrolled, no political effects are
envisaged.
E: Economic
The Increasing per capita income of the whole population is
resulting a higher disposable income to the consumer as the
purchasing power parity is also rising steadily.
The Growing middle class of cities and urbanization of the general
population as a whole
Low cost of production and economies of large scale production
and operating at optimal capacity.
S: Social
Per capita consumption of the entire dairy product consumers is
expected to increase in the future
Payout to the farmers has also been registered amounting to 23%
CAGR in the preceding last 4 years.
Increasing gifts and incentives culture to the society
The health-conscious appeal to the society by providing Lower
cholesterol in its products than Mithais (sweet meat)
T: Technological
Will have to reinforce and raise the standard of technology
employed to international levels once India is a free economy
New and varied diversified products
Process innovation and technology
Complementary assets to enhance milk production and capacity
E-commerce to facilitate promotion and enhance consumer reach.
E: Environmental
Amul production is green production. Carbon emission is
eliminated during the processing of the products.
Initiatives towards recycling of wastes including plastic packing
covers are taken.
Legal
Being Cooperative organization, it is bound to follow the
cooperative act 2012
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 Distribution of profit to the members to be done on average

basis as per the cooperative law.

PORTERs FIVE FORCES MODEL

The Five Forces model of Porter is an outside-in business unit
strategy tool that is used to make an analysis of the attractiveness
(value...) of an industry structure.
It captures the key elements of industry competition.
Barriers to Entry

PORTERs FIVE
FORCES MODEL

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 same way 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 and goes well beyond the behavior of individual competitors.
According to Porter, each industry has a potential profitability and the profitability for the firms is
dependent on the competitive forces in the industry. Porter identifies five competitive forces that
derive from the ambition to obtain as large share of the profitability as possible. The five forces
are the foundation of the five-force model.
The success of the national and local competitors brands includes effective distribution system,
advertising, good pricing policy etc. The factors ascribed by porter are:
Threats of new entrants
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 Bargaining power of suppliers

Bargaining power of buyers
Rivalry among competitors
Threats from substitutes
These factors can be explained in context to GCMMF as below:
Threats of New Entrants
Economies of Scale: GCMMF enjoys economies of scale, which is difficult to match by any other
competitor. It is because of this reason that no regional competitor has grown to a national level.
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 reputation at domestic
and international level. Here, the raw material procurement is very difficult for the new entrants.
Consequently Capital requirement is also high. Still new entrants are emerging such as domestic and
international players. So the threats of new entrants are moderate.
Brand Preferences and Consumer Loyalty: There is an immense level 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 to other retailer if the retailer does not have milk.
Access to Distribution Channels: The distribution channel of GCMMF is a very planned and perfect
one. For any new entrant to enter it would be a very difficult task. For GCMMF the result is years of
hard work and its investment in its employees as well as at different levels in the distribution network.
Inability to match the technology and specialized know-how of firms already in the industry:
The technology used by Amul is imported from Denmark. It is a state of art technology. To get this
technology in India, a firm would require a huge amount of resources.
Capital Requirements: The total investment required in the industry is huge and is a decision worth
considering even for MNCs. The investment decisions cover the processing costs as well as the
marketing costs. To compete with the brand Amul in India is difficult as Amul is synonymous to Quality.
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 suppliers of milk and users of milk products. According the concept of the
cooperative society supplier has bargaining power to have a good return on his or her supply.
However, supplier has limited rights to bargain with the 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 his fair
share of return.
There is appropriate bargaining power of the supplier. In olden days there were not any kind of
cooperative societies as the farmer was exploited. But, nowadays the farmers rights are protected
under the cooperative rules and regulations, which ultimately results in moderate power of bargaining
from the supplier.
Bargaining power of buyers
Cost of switching to competitor brands: The switching of brands is seen very much in products
such as ice cream, curd, milk powders, milk additives 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 get is less
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than they would get from consuming Amul.

Large no. of buyers: Milk is a necessity product and hence is a mass product. It has a considerable
share of the rupee spent by any Indian. Moreover the buyers are spread evenly over the country and
do not have any bargaining power.
Rivalry among competitors
Demand for the product: The demand of the products of GCMMF is increasing at a very healthy
rate. To stand against the rivalry GCMMF is coming with a wide range of products.
Nature of Competitors: In different business category GCMMF faces competition from different
players. In the Milk powder category it faces competition from Cadbury & Nestle, in the chocolate
category also I faces competition from Cadbury & Nestle. While in the ice cream market it faces
competition from Kwality Walls Max and Havmor. In butter and chesses it faces competition from
Britannia. Moreover in almost all categories there is presence of local retailers and processors and
milk vendors. Rivalry intensifies as each of the competitors has different lines and this would in turn
depend on the importance the line holds for the competitor.
Mergers and Acquisitions: As such in the industry there are no mergers or acquisitions. However if
any MNC wishes to enter through this route then the competition might be severe.
Threats Of Substitute
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 front where GCMMF is still finding hard to combat.
Satisfaction level of substitutes: Customers do consider these products 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 any hurdles.
Not immediate substitutes: Distant substitutes are present in many of the categories of business of
GCMMF. For example in the Masti Buttermilk 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 its competitors, buyers, suppliers, etc.
However GCMMF has been able to outperform on almost all fronts excluding a few lines of business.

Customer Based Market Segmentation

Kids
I.

Amul Kool
Chocolate Milk
Nutramul Energy Drink
Amul Kool
Millk Shaake

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Womens
Amul Calci

Youth
UtterlyDelicious Pizza
Amul
Cheese

Emmental

Amul Cheese Spreads

Health Conscious
Nutramul
Amul Shakti
Food Drink

Health

Calorie Conscious
Amul Lite
Sagar
Powder

Skimmed

Milk

Amul Lite Slim and Trim

Milk

Marketing Mix The 4 ps of marketing

The Marketing mix is a set of four decisions which needs
to be taken
before launching any new product. These variables are also
known as the 4
Ps of marketing. These four variables help the firm in making
strategic
decisions necessary for the smooth running of any product / organization. These variables
are
1. Product
2. Price
3. Place
4. Promotions

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Product in the marketing mix of Amul

Amul has a very very strong product portfolio. Amul product portfolio is comprised mainly
of Dairy products. Amul butter, Amul cheese and Amul ice cream are cash cows for Amul
as they have the major market share in their product category. Amul ice cream is
amongst the top 10 ice cream brands of India.
Amul milk, Amul Paneer and Amul Dahi consumption is on the rise. In fact Amul milk has
26% of market share in the packaged milk segment. The only disappointing performance
is seen in Amul Chocolates which are a burden for Amul and lot of push is required for the
sales of the same. This is because the chocolate market has established players like
Parle, Dairy milk and others.
The Amul family tree has the following brands Amul Milk, Amul bread spreads, Amul
Cheese, Amul Milk, Amul kool and its variants, Amul pro, Amul ice cream, Amul Paneer,
Amul Dahi, Amul Ghee, Amul Milk powders, Amul Nutramul, Amul mithai range,
Amul mithai mate, Amul chocolates, Amul butter milk. Thus the product portfolio of Amul
considering its dairy origins is astounding. Amul has various competitors based on
different products. In ice cream it is Vadilal, Dinshaws and Havmor. In butter and milk
there is mother dairy, Britannia and others. However, no competitor has such a vast dairy
based product portfolio as Amul. This is the major reason that Amul has a sustainable
competitive advantage over its competitors.

Price in the marketing mix of Amul

Amul has a strategy of low cost pricing. Some may call it penetrative pricing. But
penetrative pricing strategy is used when the market has a high level of competition and a
player wants to establish itself in the market by giving low prices. However, in the case of
Amul, when Amul started, there were no national players and the dairy market was
unorganized. During the introduction stage itself, Amul had a vision to provide their
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products to end customers at the best affordable rates. And the same vision is in place
even today.
Today also, you will find that Amul butter, milk and cheese are available at affordable
prices keeping in mind the end customers. You may call these products costly, but the
cost has nothing to do with Amuls strategy. Remember that transportation costs as well
as storage and distribution costs are very high in FMCG. Thus, as the cost of
transportation, storage and distribution has increased over the years, so has the cost of
Amul products gone up. But considering their value for the average India consumer,
these products are still priced at an affordable rate.

Place in the marketing mix of Amul

Amul has a massive distribution network because its ice creams, milk, butter and cheese
is found practically everywhere. As it is a FMCG product, Amul follows the methodology
of breaking the bulk. The initial factory output is in bulk. Later on this bulk becomes
smaller and smaller and finally one individual slab of butter or scoop of ice cream is sold
at the retail place.
There are two different channels through which Distribution happens in Amul. One is the
procurement channel which is responsible for collection of Milk through dairy co
operatives. The other is the distribution channel which is responsible for distributing the
finalized product to the end customers.
In the procurement channel, the milk is individually delivered from farmers to the co
operatives. The co operatives then collect all this milk and send the bulk to the
manufacturing facility. At the manufacturing facility, the milk is used to manufacture the
finalized products.
In the distribution channel, there are carrying and forwarding agents, distributors, dealers
and retailers involved. There are also Amul Shoppes which sell all products in the Amul
product portfolio. The distribution is as follows.
Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer / Amul Shoppe
>> Customer
Amul >> Modern retail
Thus there is a lot of transportation involved for all of Amuls products. However, the
distribution channel of Amul ensures that the products reach every nook and corner of
India.
Promotions in the marketing mix of Amul

Amul is responsible for one of the most unique and longest running outdoor campaign as
well as one of the most known outdoor advertising characters The Amul girl. We would
like to take this opportunity to specially thank Mr Eustace fernandes, the creative brain
behind the sweet girl. But we should know by now that the Amul girl is hardly sweet or
cute. She is known to be the most naughty advertising girl ever. Amul hoardings mainly
feature the current news and are used to take a tongue in cheek viewpoint at current
happenings. However, each advertisement hits the nail on the head.
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The promotions of Amul are mainly for butter but for all the other products there is hardly
any promotions. During the launch of products, Amul is known to go ATL and advertise
milk, butter etc. The Smita Patil ad wherein Smita patil is shown as a village
milk collector is one of the most famous ads for Amul. But overall, the main advertisement
is BTL through outdoor, trade promotions, discount schemes and sales promotions.
The major reason for Amuls absence in hardcore advertising is that Amul does not want
to give away margins in advertising its products. As per Amul, their maximum budget for
advertising is 1% of the turnover. Above and beyond that will directly affect the cost of the
product. And the major reason for Amuls strong presence in the market is its excellent
quality combined with the affordable price. Thus, overall promotions will always be low for
Amul except for the outdoor advertising of Amul butter.
Future Challenges
The organization may face the following challenges in the future:
Global demands and changes.
Foreign affiliations.
Competition.
Liberalization.
Changing values.
Urban shifting.
Changing interests.
Adoption of latest technology.
Production according to international standards with foremost quality.
Increase need for R&D.
To keep the prices steady and reduce production and maintenance expenses.
To enhance milk production by adopting better animal husbandry practices and improving calf
rearing practices in order to assure a stand in international market in the foreseeable future.
Expansion and upgrading of plant and equipment to meet increasing demanded for quality and
quantity with the help of better-qualified personnel.
Rapid increase in productivity while respecting the basic man and animal dynamic i.e., to control
dairy and agriculture development in India.
Development of new markets and expansion of old ones replacing additional system with quality
packaged milk products and vegetable.
Creating a national information network to ensure that accurate timely information is available to
all who need it.
These are some of the challenges, which the organisation foresees and requires coping up with.

Amul means different things to different people.

Recommendation:
This concludes the marketing mix of Amul. The bottom line is that we love that
an Indian brand like Amul has reached such staggering heights and that we are
a part of the time when such a white revolution took place.
To achieve and maintain competitive advantage, innovation in product design and delivery are
Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana,
MBA-2014-2016

increasingly essential.
To innovate at each stage in value chain production, procurement, processing, marketing and
branding.
To devise more effective ways of attracting and retaining skilled human resources.
To provide them an adequately self-motivating work environment that draws the best out of them
on a sustained basis.
The Dairy Demonstration Project is a collective effort of the Union and Bank. The project
envisages encouraging the farmers to use high yielding animals and modern aids to increase
production. The union will provide necessary guidance to the milk producers on various
techniques and required financial support will be forthcoming with the co-participation of Bank.
To illustrate and bring about better understanding of the project, a model farm is being set up at
Mogar and Khatraj to impart training to the participants.
Suvarna Jayanti Gram Swarojgar Yojana helps its beneficiaries to avail loan from the bank with
the Government approval. Under this scheme a marginal producer intending to avail the
benefits, is allocated an amount adequate for purchase of 2 milch animals along with required
other implements on a soft loan basis. This scheme not only help enhance the productivity and
living standards of subscribing producers, the union in turn will also be benefited by the way of
enlarged membership and increased milk procurement.

BIBLIOGRAPHY
Dr. Kurien., Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50 Years of
Milk & Health.
Carter, Thomas R., Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50
Years of Milk & Health.
Patel, T. K., Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50 Years of
Milk & Health.
Gowda, Shri Deve, Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50
Years of Milk & Health.
Halse, Michael, Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50
Years of Milk & Health.
Baxi, J. J. Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50 Years of
Milk & Health.
Singh, Katar, Mittal, S. P., Singh Virendra, Amul, The Kaira District Cooperative Milk Producers
Union Ltd. Anand, 50 Years of Milk & Health.
Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana,
MBA-2014-2016

 Dr. Oza, D. R., Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50 Years
of Milk & Health.
Thodarson, Bruce, Amul, The Kaira District Cooperative Milk Producers Union Ltd. Anand, 50
Years of Milk & Health.
GCMMF, 30th Annual Report 2003 2004.

Journals
Journal articles/conference papers from the library databases:
Operation Flood and Social Science Research
B. S. Baviskar, Economic and Political Weekly, Vol. 19, No. 2 (Jan. 14, 1984), pp. 94-96
Need for a 'Cooperative' Culture
Economic and Political Weekly, Vol. 38, No. 37 (Sep. 13-19, 2003), p. 3857
'Success of Amul'
Raghu, Govindappa. SSRN Working Paper Series, Sep 2013.
Amul and Self-Reliance
P. S. K. Raman, Economic and Political Weekly, Vol. 16, No. 3 (Jan. 17, 1981), p. 47
Review: Spread Effects of Amul
Spread Effects of Dairy Enterprise: A Case Study of Anand by Small Industry Extension Training
Institute, Review by: N. S. Jodha, Economic and Political Weekly, Vol. 7, No. 15 (Apr. 8, 1972),
p. 756
Co-operative Success Story
Economic and Political Weekly, Vol. 6, No. 46 (Nov. 13, 1971), p. 2297

Website Visited
http://www.amul.com/m/chairman-s-speech:-35th-annual-general-body-meetingheld-on-5th-june,-2009
http://www.amul.com/
http://business.mapsofindia.com/food-industry/dairy/amul-gujarat-cooperativemilk-marketing-federation.html
http://business.mapsofindia.com/food-industry/dairy/the-national-dairydevelopment-board.html

Ravishekhar, Rachita & Pooja Jindal Global Business School, Sonipat, Haryana,
MBA-2014-2016