MARKETING MANAGEMENT II ASSIGNMENT (PHASE 1 &2)

PRODUCT NAME-

AMUL BUTTER

PHASE 1

Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya , means priceless. The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channelled towards economic prosperity. In 1954, Kaira District Co-operative Milk Producers Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a

marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a cooperative society on 9 July 1973. From conventional milk products like butter, paneer and cheese, the brand has evolved over time and now caters to the wellness market as well with its sugar-free and probiotic milk products. AMUL BUTTER : Amul is synonymous with Butter in India. Several Generation of Indian consumers have grown up with the taste of Amul Butter for the six decades. Utterly Butterly Delicious taste of Amul Butter is must on breakfast table of almost every Indian Household. Utterly Cute Amul Buter Girl has been a part of Indian Consumers since 1950. Amul Butter topical is recognized as one of the longest running advertisement campaign in the world. Amul Butter is available in India as well as other country like UAE / Bahrain / Kuwait/ Oman / Hong Kong / Shi Lanka / USA / Malaysia / Singapore / Qatar/ New Zealand. Also Amul Butter is available in segments like Kirana Store / Modern Format store / Amul Parlors / Hotel & Restaurant segment / Railway and Flight Kitchen etc. The major competitors for Amul butter are Britannia and nestle.

MARKET SEGMENATATION: Demographic market segmentation: Segmentation of consumer based on variables such as race, religion, community, language, age, stage in family cycle, gender, marital status, family size, occupation, economic position/income/ purchasing capacity level, and social status ,of the consumer demographic segmentation. Amul has segmented his product in different age group For kids: Amul kool, chocolate milk, Nutramul energy drink For Youth: Amul cool kafe. For womens and older people: Amul calci+, Amul Shakti energy drink Amul butter caters to all the demographic market segments. But with consumers becoming health conscious, Amul launched Nutralite butter with low fat and calorie content. In the early 1970s Bruce Henderson of Boston Consulting Group developed a technique by which businesses were classified as low or high performers based on their market share and relative growth rate. The matrix has four classifications: Star : Leaders in market. Consumes a lot of cash and generates a lot of revenue. Cash cows : Generates a lot of revenue for the company. Strong product line of the company in a mature environment which is not growing anymore. Dogs : Low growth and low market share. Consumes lot of cash and does not have much potential of desired earnings. Question marks : Business usually at startups and can consume lot of cash. With proper focus they can become starts or cash cows or with poor strategy might fall to dogs

PRICING STRATEGIES: AMUL : AMUL has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. AMUL butter adopted an low pricing strategy but with the popularity and the success of the product they adopted he market oriented pricing strategy. is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand image in the household sector of the society. CHANNEL STRATEGIES: AMUL: The Amul Butter already had the established channel by GCMMF. It works on the innovative three tier organisation structure combining the productive genius of farmers with professional management and modern technology. The GCMMF has an extensive sales and distribution system and a cold chain network starting from the milk producer and ending at the eventual customer. It has a dealer network of 3600 dealers and 400,000 retailers which is one of the largest network in the country. Thus trade and channel strategies were not a hurdle as Amul had an already well established channel and brand. COMMUNICATION STRATEGIES: AMUL: Over the years, Amul's advertising philosophy had been "to be simple, fresh and innovative". The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern. They have been consistent over the communication campaign and brand strategy. AMUL has positioned itself as " Taste of India " and have

ensured that their communication is in line with their positioning strategy. Though table butter is not an ethnic Indian dairy product, they have singlehandedly managed to build the category that is growing on the strength of their marketing efforts. Consumer Advertising and Institutional Advertising, are the mainly two type of communication strategy adopted by Amul. .