MARKETING MIX OF

AMUL
ProductinthemarketingmixofAmul
Amulhasaverystrongproductportfolio.
AmulproductportfolioiscomprisedmainlyofDairyproducts.Amulbutter,Amul
cheeseandAmulicecreamarecashcowsforAmulastheyhavethemajormarket
shareintheirproductcategory.
Amulicecreamisamongstthetop10icecreambrandsofIndia.
Amulmilk,AmulPaneerandAmulDahiconsumptionisontherise.
Infact,Amulmilkhas26%ofmarketshareinthepackagedmilksegment.
TheonlydisappointingperformanceisseeninAmulChocolateswhichareaburden
forAmulandlotofpushisrequiredforthesalesofthesame.Thisisbecausethe
chocolatemarkethasestablishedplayerslikeParle,Dairymilkandothers.
Price in the marketing mix of
Amul
Amulhasastrategyoflowcostpricing.
Today also, you will find that Amul butter, milk and cheese are available at
affordablepriceskeepinginmindtheendcustomers.
You may call these products costly, but the cost has nothing to do withAmuls
strategy. Remember that transportation costs as well as storage and distribution
costsareveryhighinFMCG.
Thus,asthecostoftransportation,storageanddistributionhasincreasedoverthe
years,sohasthecostofAmulproductsgoneup.Butconsideringtheirvaluefor
theaverageIndiaconsumer,theseproductsarestillpricedatanaffordablerate.
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
followsthemethodologyofbreakingthebulk.
TherearetwodifferentchannelsthroughwhichDistributionhappensinAmul.
One is the procurement channel which is responsible for collection of Milk
through dairy co-operatives. The other is the distribution channel which is
responsiblefordistributingthefinalizedproducttotheendcustomers.
In the distribution channel,There are also Amul shoppes which sell all
productsintheAmulproductportfolio.Thedistributionisasfollows.
Amul>>Carryingandforwardingagent>>Distributor>>Dealer/Retailer/
AmulShoppe>>CustomerAmul>>Modernretail
Promotions in the marketing
mix of Amul
Amulisresponsibleforoneofthemostuniqueandlongestrunningoutdoor
campaignaswellasoneofthemostknownoutdooradvertisingcharacters
TheAmulgirl.Sheisknowntobethenaughtiestadvertisinggirlever.
Amul hoardings mainly feature the current news and are used to take a
tongue in cheek viewpoint at current happenings. However, each
advertisementhitsthenailonthehead.
ThemajorreasonforAmulsabsenceinhardcoreadvertisingisthatAmul
does not want to give away margins in advertising its products. As
perAmul,theirmaximumbudgetforadvertisingis1%oftheturnover.
SWOTANALYSIS
STRENGTHS
Qualityproductsthatoffersbestvalueforcustomers.
Milkandmilkproductstherebycateringtolargesection
ofvegetariancommunity.
Strongbrandnamewhichstoodforqualityandpurity
Extremelyloyalcustomerbase.
Widespreadreachandittargetsruralareaswhich
constitutemajorpartofIndia.
Verystrongsupplychainmanagement.
Astrongsocietalappeal.
OPPURTINITY
Largepotentialinruralmarketsasitisnot
aggressivelytargetedbymajorplayers.
HugeopportunityinexportmarketwhereGCMMF
hasenteredintoalliancewithvendorsinU.S.A,New
Zealand,AustraliaandSriLankaetc.
Withimprovedpercapitaincome,therewashugeshift
ofconsumptiontowardsfruits,packagedfoodand
otherpremiumvarieties.
WEAKNESS
Sweet,icecreamandotherfoodsmarketwere
dominatedbymajorplayers
MajorplayerslikeNestle,Britannia,HLLhavehuge
capital.
Constraintsfromsupplysideofmilkwhichisthe
flagshipproductfromGCMMF.
Complexorganizationstructurewhichishardto
replicateandmanageinotherregionsandproduct
offering.
THREAT
MajorplayerslikeHLL,Britannia,NestleandCadburys
etc.
Brandloyaltydoesnotholdforlonginchocolateandmilk
marketasconsumerscontinuouslylookforvarietyand
convenience.
Atusslebetweensocialresponsibilityandprofitseeking
behaviourwhichhitsthebottomlineinhighlycompetitive
market.
PORTERSFIVEFORCES
Threat of New
Entrant is high
because there
are no entry
barriers

Bargaining power Competitive Bargaining power of

of customer is Rivalry is high suppliers is low as
very high due to due to presence most of them are
presence of of other major rural co-operative
various players in players and unions and that is
market. brands. the best fit for them

Threat of
substitute is high
due to availability
of alternate
products.
CONCLUSION
In conclusion, we would say GCMMF is Indias largest exporter of dairy products it was great
experienceworkingwiththegreatbrandnameAMULandhighlyskilledemployeeswithexcellence
inbothknowledgeandworkingwhomakeAMULtoreachonthetopoftheindustry.

Fromtheratioanalysis,AMULishavinglowquickratio.SoAMULneedstofocusonthat.From
theLeverageratios,IcansaythatAMULishavingmoredebtsthenEquity.Thereasonisthatthe
ownersoftheAMULarenototherthanmilkProducerswhogivemilktoDairy.ButfromthisIcan
alsosaythattheAMULishavingagoodcreditintheeyesofthecreditorswhoaregivingdebtto
AMULAssaidbeforeAMULwasestablishedwiththeonlyobjectivetogivemaximumbenefitto
milkProducersandprovidethemilkproductsatleastpossiblecosttocustomers,theprofitabilityof
thefirmisverylowwithrespecttosalesmade.
 AsAMULisinthedairyindustry,themajorportionofitsincomeliesinsellingtheproducts.On
the other hand, it fulfils its promise to give maximum benefits to milk Producers by purchasing
milkatreasonablepricefromtheProducersofmilk.GCMMFthatownsAmulAsiaslargestmilk
brand realized that with the changing life style and increase awareness about health issues there
hasbeendiscernibleshifttoe3ardhealthbaseddrinksfromcarbonateddrinks.ReasonsforAmuls
successareitsRobustSupplyChain,LowCostStrategy,DiverseProductMix,StrongDistribution
Network,Technology advancements & e-initiatives and service availability. Because of all these
competencesAmulisthelargestproducerofmilkandmilkproductsintheworld.Ithassetworld
bestpracticesfordairyproducers.