Branding Strategy of Amul (Business Strategy + Brand Management)

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[ detailed report at: ] Presentation on "Branding Strategy of Amul" by Shabbir Akhtar (PGPM 10, Globsyn Business School - Global Campus) for the subjects "Brand Management and Business Strategy"


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PowerPoint Presentation:

The Taste of India Branding Strategy


History Amul came into being as a consequence of a revolution Kaira District Co-operative Milk Producers’ Union Limited, Anand was formally registered on December 14, 1946 The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in 1948 By the 1950s it was amply clear that the future lay in manufactured dairy products Amul responded by embarking on a wide range of dairy processing activities Amul kept on adding products and challenging established giants like Polson, Nestle and Glaxo On all of these occasions Amul not only displayed feats of resilience but in fact came out much stronger than ever before

Over The Years:

Over The Years In 1965 The National Dairy Development Board (NDDB) was established at Anand to replicate the Amul model throughout the country As district unions multiplied, Kaira Cooperative recognized the benefits of a marketing federation and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973 GCMMF commenced marketing on April 1, 1974 under the single brand name of Amul In 2012, Amul posted sales of Rs 11,670 crore for the year ended March 2012, almost 55% more than Nestle India's Rs 7,541-crore sales, its nearest competitor Amul now wants to go global to join Nestle, Danone , Lactalis and Fonterra as one of the world's largest milk product makers

Organization Structure:

Organization Structure 1st Tier -- Primary village Co-operative Society 2nd Tier -- District Union 3rd Tier -- The State Federation

Organization Structure:

Organization Structure Milk and Milk Products Market State Milk Federation District Milk Unions Village Dairy Cooperative Societies Sales Revenue Sales Revenue Bonus Dividend on Shares Addl. Price Difference Rural Health Schemes Vet. & Animal Husbandry Services Cattle Feed GCMMF in Gujarat 17 District Unions in Gujarat 16,117 VDCs in Gujarat 3.18 million producers in Gujarat 22 State Fedns . in India 177 District Unions in India 15.0 million producers in India 1,44,246 VDCs in India Member Producers Profit Profit

Organization Structure:

Organization Structure Advantages of the Anand Pattern Establishment of a direct linkage between milk producers and consumers by eliminating middlemen Milk Producers (farmers) control procurement, processing and marketing Professional management

Product Mix:

Product Mix Document >>


Consumers Products Considered Amul Gold Amul Taaza Amul Slim n’ Trim Amulya Condensed Milk Amulspray Amul UHT Gold Amul UHT Taaza Amul UHT Lite Amul Butter Amul Lite Amul Ice-cream Amul Beverages Segmentation Variables Geographic Demographic Psychographic Behavioral Document >> Segmentation


Consumers Need Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Evaluation Buying Decision Processes Explained through Amul Butter and Amul Lite Document >>


Competitors Competitors Considered Mother Dairy Keventer Nestle Hindustan Unilever Parag Milk Foods Tata Global Beverages Baskin Robbins Vadilal Cadbury Britania Zydus Cadila Continental Milkose (India) Products Considered Packet Milk UHT Milk Powdered Milk Bread Spread Chocolates Ice Cream Beverages Document >>


Competitors COMPETITORS PRODUCT QUALITY CUSTOMER AWARENESS PRICING PRODYCT AVALABILITY ADVERTISING PRODUCT RANGE AMUL E E E VG VG E MOTHER DAIRY G VG VG G A G PMF PVT. LTD. VG A VG A G E NESTLE E E VG VG E VG HUL VG E VG E G VG CADBURY VG E VG E E VG Summarized overview of the Key Success Factors of AMUL’s key competitors: The parameters defined above are qualitative, ranging from Poor to Excellent, where P: Poor, A: Average, G: Good, VG: Very Good, E: Excellent

Porter’s Five Forces:

Porter’s Five Forces Document >> Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Rivalry among Competitors

SWOT Analysis:

SWOT Analysis Document >> Strengths Weaknesses Opportunities Threats

Growth Strategy:

Growth Strategy GCMMF is drawing up a three-pronged growth strategy: Expansion in production capacity by 25% to meet the growing consumer demands Packaging is being revamped as consumers are now shifting to smaller economy packs to cut costs Adding 1,000 outlets to its existing 6,500 distributors to reach out to new towns

Branding Strategy:

Branding Strategy

Promotion Strategies:

Promotion Strategies

Utterly Butterly Campaign:

Utterly Butterly Campaign Amul campaign has been running for the past 50 years The campaign tells the stories of India, a hoarding at a time The Amul billboards have seen a combination of wry observation, heartfelt tribute, sly comment and occasional controversial slip The key character in this saga is the loveable little girl in polka dots The campaign was created by Sylvester daCunha and Eustace Fernandes There have so far been over 4000 utterly- butterly hoardings The campaign found a place in the Guinness Book of World Records

Promotion Strategies:

Promotion Strategies 1970s to Mid-1980s 1985 to Mid-1990s Post 1991 After 2000

Utterly Butterly Campaign:

Utterly Butterly Campaign Period Concept 1970s to Mid-1980s Between the 1970s and coming of the economic reform in the mid-1980s, the Amul billboard documents the disconnected concerns of a small group. A surfeit of spectacular trivial occasions are paid tribute to. 1985 to Mid-1990s The Amul billboard covers the beginning of liberalization and the change in the political discourse. Post 1991 The portrayal of the politician as villain begins to emerge with force at this time, with many references to a series of political scandals and controversies After 2000 The movement towards the popular becomes increasingly pronounced. As a very significant portion of messages draws from Bollywood and television.

5 Ms of Amul’s Advertising:

5 Ms of Amul’s Advertising Measurement Media Message Money Mission

Consumer and Trade Promotion :

Consumer and Trade Promotion

Consumer Promotion:

Consumer Promotion

Trade Promotion:

Trade Promotion

PR Campaign:

PR Campaign

BTL Campaign:

BTL Campaign

AMA’s Definition of Branding:

AMA’s Definition of Branding Name Amul Slogan The Taste of India Symbol Mascot

Six Levels of Meaning That a Brand Conveys:

Six Levels of Meaning That a Brand Conveys Attributes – Amul products are healthy and of global standard Benefits – Amul provides high energy and dynamism Values – Amul provides the taste of India Culture – Amul empowers rural India Personality – Amul projects the personality of “Amul Girl” User – Amul projects itself for the youth

Branding Components :

Branding Components Added Features – Amul does not provide any tangible added features but, it has an emotional value. The values that brand Amul imparts can be comprehended through its slogan Brand Name – Amul is not a generic name for the milk and milk products category but, it is one of those brand names that pulls a chord with every India – both rural and urban Corporate Branding – Amul is the primary brand that is marketed by GCMMF. That is also the corporate brand of the company Packaging and Design – GCMMF, marketers of Amul dairy products, is revamping its packaging to reach the more consumers

Branding Components :

Branding Components Fulfillment – To ensure Amul ensures fulfillment, we would crosscheck it with the given criteria Brands must not raise expectations in their promotion that cannot be realized Packaging should be used to ensure fulfillment occurs between the moment of purchase and eventual use of the product by the consumer Effective distribution systems must exist Effective quality assurance systems must exist As part of such a system, an effective complaints procedure must also be in place, to ensure that complaints are treated as an information resource Image and Reputation

Points-of-Parity and Points-of-Differentiation :

Points-of-Parity and Points-of-Differentiation Points-of-Parity Freshness Ready to use Hygiene Good Packaging Good Taste Value for money Emphasis on quality control Points-of-Differentiation Easily connectable brand elements Adverts reflect current affairs The pioneer brand - first to enter into dairy products Product Mix includes both premium and low-priced products Products available at large number of stores Presence internationally Innovative and Attractive Products E-initiatives i.e. online selling Largest brand in India and Largest Pouched Milk Producer in the world

Positioning Strategies:

The Indian Youth (51% of Indian Consumers) Positioning Strategies

Positioning Strategies:

Positioning Strategies Youngsters today ask for Go cheese, Amul is nowhere on their minds. Amul has dangerously stagnated in Indian consumer's psyche. While the elderly connect to it emotionally, the brand lacks an aspirational connect to draw the youth who would decide the fate of all brands during this decade. N Chandramouli , CEO, Trust Research Advisory (told Economic Times) The dull and conservative image associated with Amul products has to be rubbed off the minds of the youth. As a strategy, we have decided to communicate with the new generation more aggressively than ever before. The intention behind sponsoring sporting events was to re-position Amul as a global brand while retaining its focus on India. RS Sodhi , MD, GCMMF (told Business Standard)

Positioning Strategies :

Positioning Strategies

Positioning Strategies:

1 Spoon a Day Positioning Strategies

Branding Decisions:

Branding Decisions Branding Decision -- Brand Brand-Sponsor Decision – Manufacturer Brand Brand-Name Decision – Family Name Brand-Strategy Decision – Brand Extension Brand-Repositioning Decision – No Repositioning

Thank you:

Thank you


Questions? Shabbir Akhtar PGPM 10, School of Marketing, Globsyn Business School – Global Campus Email: | Twitter: @strategian

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