Marketing

GCMMF is the marketing arm of the network and manages the physical delivery and
distribution of milk and dairy products from all the Unions to customers. GCMMF is also responsible
for all decisions related to market development and customer management. These activities, which
range from long-term planning to medium-term and short-term operational decisions are described
below.
As mentioned earlier, introduction of new products and choice of product mix and markets
should be consistent with the growth strategy, and synchronous with growth in milk supply.
GCMMFs demand growth strategy may be characterized by two key elements: (i) developing
markets for its high value products by graduating customer segments from low value products, and
(ii) maintaining a healthy level of customer base for its base products (low value segment). This
strategy often requires GCMMF to allocate sufficient quantity of milk supply to low value products,
thereby sacrificing additional profits that could be generated by converting the same to high value
products.
Interestingly, advertisement & promotion (a la FMCG) was not considered to be enough of
value addition and hence the budget was kept relatively small. Instead, GCMMF preferred a lower
price with emphasis on efficiency in advertising. In this context, GCMMF provides umbrella
branding to all the products of the network. For example, liquid milk as well as various milk
products produced by different Unions are sold under the same brand name of AMUL.
Interestingly, the advertising has centered on building a common identity (e.g., a happy & healthy
cartoon AMUL girl) and evoking national emotion (e.g., the key advertising slogan says AMUL -
The Taste of India).
GCMMF also plays a key role in working with the Unions to coordinate the supply of milk
and dairy products. In essence, it procures from multiple production plants (the thirteen Unions),
which in turn procure from the Village Societies registered with each Union. GCMMF distributes its
products through third party distribution depots that are managed by distributors who are
exclusive to GCMMF. These distributors are also responsible for servicing retail outlets all over the
country. GCMMF sales staff manages this process. Retailing of GCMMFs products takes place
through the FMCG retail network in India most of whom are small retailers. Liquid milk is
distributed by vendors who deliver milk at homes. Since 1999, GCMMF has started web based
ordering facilities for its customers. A well-defined supply chain has been developed to service
customers who order in this manner.