Amul

THE COMPANY

• Amul means priceless in Sanskrit• Since 1946• Market leaders for Amul butter• Turnover of 25 billion

MAN BEHIND AMUL

•Dr Verghese Kurien, the Chairman of the GCMMF, based in the in Anand town of Gujarat, India.

•Verghese Kurien’s Amul experiment in Gujarat soon blossomed into the much larger Operation Flood, spread over 23 states, 170 districts and 90,000 village cooperatives.

PRODUCTS

NETWORK• Available in over 5 lakh outlets • Around 4000 distributors• 47 depots•10000 village cooperative societies • Aproxx. 4,50,000 retailers spread all over India

•The milk procured per day is 5 million liters•Where the total capacity of operation is 7 million liters per day•The peak processing till date has been 6 million liters per day

PRODUCTION PROCESS

1) Collection of Raw Material

2) Pasteurizing & Standardizing

3) separation process

4) Quality check

5) Packaging

6) Storage

SUPPLY CHAIN AT AMUL

Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per cent is converted to value added products.

GCMMF = Gujarat Co-operative Milk Marketing Federation; MUs = Member Unions; VCs = Village Co-operatives.

THE CHANNEL NETWORK

• Distribution channel- downstream flow

• Procurement channel- upstream flow

DOWNSTREAM FLOW

• FIRST LEG• Manufacturing units to company depots using 9 and 18

MT trucks• Frozen food-below 18C• Dairy wet-0-4C

• SECOND LEG• Depots to WDs• Transport through insulated 3 and 5 MT TATA 407’s

• THIRD LEG• WDs to retailers• Transport through rickshaws according to the best plan

UPSTREAM FLOW

• Milk is taken to VCS by farmers by bicycles

• Transportation of milk from the co-operatives to the manufacturing units through trucks equipped with tankers equipped to carry milk

PRODUCT

PRICE• Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers .

• Amul introduces its products is consistent with the core philosophy of providing products at a basic, affordable price to appeal the common masses. For eg. This helped AMUL BUTTER to create its brand image in the household sector of the society.

Rs 87 Rs 18

PLACE

• GCMMF is India's largest exporter of Dairy Products.

• It has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years..

• Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

PROMOTION

INITIAL PROMOTIONAL STRATEGY

The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency.

LATER STAGE

However, in 1966, a man named Sylvester daCunha, from the ad agency of ASP, took over the Amul account. After this the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else.

MARKETING OF AMUL

The moppet who put Amul on India's breakfast table

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000

tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the

hoardings and put a spell on the masses.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are  now ready to enter the Guinness Book of World Records for being the longest running campaign ever.

Amul "Utterly Delicious" Parlours

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. AMUL created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers.

MARKETING STRATEGIES

4 MAIN STRATEGIES

• First is quality

• Second, it is value for money

• The third element is availability

• The fourth part is service

HENCE….