Marketing report on Amul

Essay by vidhiUniversity, Master'sA+, August 2008

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In the beginning, I would like to thank all the persons who helped me lots to complete this marketing report by providing their knowledge. First of all, I would like to thank my tutor Geoff who gave me chance to do this assignment and also gave me knowledge of all basic fundaments of marketing. I would also like to thank my friend professor Jayraj Pandya who helped me to choose this topic and also gave me all the details regarding this report. When I was pursuing my bachelors he took me to the site of Amul and that is the main reason I choose the same topic.

VIDHI SHAHUB:-204313INTRODUCTION'Mother Dairy' Gujarat Cooperative Milk Marketing Federation (GCMMF) Ltd. name itself suggests that it is related with milk. It was established on September, 1994 in Gandhinagar having a capacity to handle 10 lac litre of milk in a day. it is the largest co-operative movement in India with 2.2

million milk producers organized in 10,552 co-operative societies in 2003-2004(). The plant firstly set up at Gandhinagar, India with the purpose of to fulfill the requirement of getting fresh milk of the consumers of the Ahmedabad and for that he handles with every drop of milk. Thus, it proves the name of 'mother' in real manner. The most important aspect of mother dairy is it has given priority to women to supply milk and Mother Dairy also gives reasonable price to them so that they are able to survive by themselves. In the beginning its work with Liquid milk, pouch filling, butter oil plant and milk powder plant. And by changing the time it has started production with Ice cream plant, UHT plant, pouch filling expansion project and also with Mozzarella cheese recently.

AMUL have different means in different Indian languages. And it proves the entire name in the real manner. Likewise in Sanskrit it means "priceless". And this word has come from Amoolya, suggested by a quality control expert person. And in the beginning Amul was came our with butter, milk powder, Ghee, Cheese, shrikhand, Ice creams, Milk etc.

In times to come, MotherThe main products which are worldwide uses are milk, ghee, milk powder, ice cream, UHT milk and milk products. Apart from milk products other products like soup, kadhi and pizza. Products are produced under the name of 'Amul' and 'Sagar' worldwide. It has total 19 affiliated plants which have a capacity to handle 6.7 million liters per day and also have drying facilities of 510MT per day.

For pasteurizing milk it uses all the new kind of machineries. It has PLC based automatic dairy processing plant in-built capacity to produce milk matching to the best quality standards (Ruth, Heredia, 2001). And the best quality standard was set up in 1994 with a capacity to handle with 10lac liter of milk per day. And now it is related with more than 10000 village cooperatives and also made long chain of people who provides milk in the regular basis. Mother dairy has developed automatic collection system which reduces time and also increases the quality of milk. Though now it become world wide business it never collects milk from the farmers who are 10 miles away from the production unit and for quality checking it has developed computerized quality testing machines to check the quality of the product.

STRATEGY/ POSITINING IN THE COMPETITIVE MARKETStrategy can be known as facilities which firm is providing to its consumers like wise location, service, facilities, prices, varieties, ect. And if company wants to have good position in the market than it has to be a market leader so that it can able to beat the other competitors in the efficient way. It has remained the leader of the market by offering different products having good quality and competitive price.

Amul has created successful brand by not only providing and maintaining good products but also for maintaining good relations with its customers. It means Amul has given value for money to its customers. And customer can be happy with the product only if product gives value for money by providing service and availability of it.

Strategy of Amul is quite good, because, it has:•Good availability of the products and services after sale to satisfy customers need and wants.

•Need of the customers can be satisfy only when they get good products when they can find real value of the money.

•Amul also have different varieties of the products and also provides different choices to the customers of different area.

Position of the market can only get by any company only if it gets the position of market leader. And Amul do not have more competitors in the market so it has good position in the market. Even if Amul has get high position in the market by providing good quality goods.

Business can't run successfully in the market without competitions. And to remain steady in the market one should have to make such position that can able to run business successfully. And Mother Dairy has made such position in the market. Initially, Amul do not have many competitors in the milk market but for the other products such as ice-creams, pizza, butter and cheese it have real competition. And for getting position in the market one should have to advertise its product in a better way and Amul had done its advertising in a different way. It gives born to butter girl to advertise its butter which is quite different way to the other products. For the same advertise it uses new issues happens in the market and also make updates with it day by day.

One of the best advertise of Amul Butter( is India's largest food products marketing organization with annual turn over of US$650 million and also have large range of dairy products in India and outside of it under the brand name of Amul and Sagar. They also have won 9 awards consecutively from APEDA, Govt. Of India for international business. So, we can say that it achieved lots in a very small time.

This story is still continuing as it wants have new plant having capacity to receive 35 LLPD o milk. And to reach this capacity it is installing 100 MTPD milk powder plant and at the end of 2010 the plant will going to finish. The strategy of this company is to manage world class quality and price of production. To reduce production price it always produce things in bulk quantity. They also promote its employees to reuse the products and recycle of possible energy resources.

The position of Amul is better than the position of Sagar in the market. As somehow Sagar is not more success in the market so now Mother Dairy has started all its production under the banner of Amul only. Amul is not only producing milk products but also producing various frozen food like vegetables, pizzas etc. and also ice creams, curd, butter milk , etc.

TARGET MARKETAmul has targeted different people by providing different products. For example, it have targeted:-•Kids by introducing Shrikhand, different flavored milk, chocolates•Teens by koko, ice creams, butter milk•It also has different kind of lassis , curd etc. to help travelers•It has newly introduced family ice cream packs and also new 5Lit milk packs for the family. It has also introduced all kind of sweets and pulps to attract family.

•Amul is basically related with diary products so all the products are useful for retired persons as they can get calcium from the product.

It is very important to target market to achieve organization's need and goal. So, every company wants to target such market which gives more benefits. To target any market every company needs to know the need of the consumers. Without knowing the need of the consumer's one can not target the market easily. After getting the need of the consumers one should have to advertise its product in such a way which puts necessary effects in the mind of the consumers and they attracted towards it.

Mother Dairy has beginning with a very small business. But due to effective marketing chain and by having efforts to satisfy different kind of consumers. Because need of the consumers varies from one to another. In the beginning it provided milk to only limited areas of Ahmedabad and Gandhinagar. In India slowly it has started business in different stats like Delhi, Haryana, Uttar Pradesh, Maharastra, Andra Pradesh, ect. It also had spread its market in other countries like but as its start growing it has also spread its business with other parts of the countries like UAE, Canada, Africa, Australia, USA, etc.

It has also introduced variety o the products in the market under the banner of Amul, Sagar and Amul has also launched new products under the banner of Dhara. And this banner Amul produced vegetable oil which is highly succeeded in India. By seeing this process one can predict this in few times Mother Dairy shall strive to become a leading player in the food industry in India.

To target international people it has started manufacturing different products like dairy whitener, table butter, UHT, skimmed and full cream milk powder and all fruit-vegetable products such as mango pulp, banana puree, mango slice, juices, jams, ketch ups, etc. So, we can say that Mother Dairy has followed different strategies to target different kind of people.

Dairy shall sIn times to comTargeted market of Amul towards different age peoplePRODUCTSAmul were marketed its products through 50 sales offices located across India to 4000 wholesalers. And again wholesalers made chain of more than 50000 retailers to sale its products to different consumers across the country. "Product is anything that can be offered to a market to satisfy need or want" (P.Kotlar, L.Brown, S.Adam, G.Armstrong). Consumers always want to purchase which is highly affordable and easily available. Amul have lots variety in products to fulfill demand of the various kinds of consumers.

Here is a list of different products produced by Amul to satisfy different kind of consumers:-Bread spreads:•Amul Butter•Amul Lite Low Fat Breadspread•Amul Cooking ButterCheese 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 PizzaMithaee Range (Ethnic sweets):•Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)•Amul Amrakhand•Amul Mithaee Gulabjamuns•Amul Mithaee Gulabjamun Mix•Amul Mithaee Kulfi Mix•Avsar LadoosUHT 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 MixPure Ghee:•Amul Pure Ghee•Sagar Pure Ghee•Amul Cow GheeInfant Milk Range:•Amul Infant Milk Formula 1 (0ened Condensed Milk)•Sweetened Condensed Milk-6 months)•Amul Infant Milk Formula 2 ( 6 months above)•Amulspray Infant Milk FoodMilk Powders:•Amul Full Cream Milk Powder•Amulya Dairy Whitener•Sagar Skimmed Milk Powder•Sagar Tea and Coffee Whitener•SweetFresh Milk:•Amul Taaza Toned Milk 3% fat•Amul Gold Full Cream Milk 6% fat•Amul Shakti Standardized Milk 4.5% fat•Amul Slim & Trim Double Toned Milk 1.5% fat•Amul Saathi Skimmed Milk 0% fat•Amul Cow MilkCurd Products:•Yogi Sweetened Flavored Dahi (Dessert)•Amul Masti Dahi (fresh curd)•Amul Masti Spiced Butter Milk•Amul LasseeAmul Ice creams:•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, Choc chips, Cake Magic)Chocolate & Confectionery:•Amul Milk Chocolate•Amul Fruit & Nut ChocolateBrown Beverage:•Nutramul Malted Milk FoodMilk Drink:•Amul Kool Flavored Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)•Amul Kool CafeHealth Beverage:•Amul Shakti White Milk Food( MIX - 4P's OF MARKETING,Before deciding marketing mix every company has to decide its marketing strategies. Marketing mix is one of the most important concepts of marketing without deciding it no company can run its business easily.

Out of these 4 P's the most important P is product. If company don't have product to sale it can not take position in the market. Without product company can not exist in the market. So, the main thing is product. Product can either goods or service. Product also includes design, packaging, services provided after sale and also warranty and also brand name of the company without which it do not have any identification.

Amul is producing different products to target different kind of people as it said above.

COMPETITIVE SET -MAIN COMPETITORS IN THE MARKETCompetitors are the people who are producing the same goods as the company producing. Competitors are necessary in current market as market can not do without competitors. Amul is producing different thingsAmul also has launch new kind of pizza of costing 20 Rs. to remainCONCLUSIONSAmul is one of the successful brands in India who has created its brand name in dairy products which is marketed by Gujarat Co-operative Milk Marketing Federation.(GCMMF). It is now become spearheading of the cooperative industries in India as it has covered most of the market in very short time. It has also proved that Indian farmers have enough skills and abilities to be in direct touch of the consumers. It has followed such a manner through which it can remain in direct touch of the consumers and fulfill their demand. Amul have big competitors in different products still he is able to make leader position in the market.

REFERENCES: •Heredia, Ruth. (2001) The Story Of Amul(1st edition), Hardcover, India•Philip Kotlar, Linden Brown, Stewart Adam, Gary Armstrong.(2004) Marketing(6th edition), Pearson Education Australia: Australia•