Amul Pricing and Segmentation

MAYURI VADHER

PRESENTED BY:

Aims to provide remunerative returns to the farmers.

Believes in providing value for money.

Also serves as a model for rest of the World.

'Amul' and 'Sagar' branded products.

48 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers

Product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.

About Amul

Market segmentation:

Markets can be segmented on the geographical basis, demographical basis, psychological basis, behavioral basis and loyalty status.

1. GEOGRAPHICAL BASIS:

This segmentation is done on the basis of the lifestyle of people in different regions and their tastes and consumption patterns.

2. DEMOGRAPHICAL BASIS:

They have segmented its market on the basis of the socio-economic status of the customers. I.e., on the basis of their purchasing power and income level.

Amul Market segmentation

Pricing decisions are affected by both internal factors like company’s objectives, marketing mix strategy, cost and organizational considerations and external factors like nature of the market and demand, competition and other environmental elements.

Cost of raw materials.

Cost of labour.

Profit margin of distributors.

Various administrative and manufacturing overheads.

Prices of the competitors.

Demand and supply position in market.

Fair return to the farmers.

Amul pricing strategy

Products under this are, Amul Lite Slim And Trim Milk, Amul Taaza

Milk, Amul Fresh Milk.

Segmentation:

Available every where in India and foreign countries.

Children, health conscious people, daily use.

Available in 250ml, 500ml, 1l and 1.5l.

Focuses on price sensitive consumers who also wants good quality.

Brand consumers.

Pricing:

Product is quality oriented.

Lesser than other brand

Policy is competition oriented.

Pricing and Segmentation strategy of

Amul Milk

Product under this are Amulspray, Amulya, Sagar Skimmed Milk Powder, Sagar Tea & Coffee Whitener, Amul PRO.

Segmentation:

Available in grocery stores and other mediums.

Less availability than other products .

Children, infants, health conscious people, mothers, working people etc.

Available in all packet size.

Pricing:

High quality products at value for money price.

Demand sales oriented pricing.

Competition strategy.

Pricing and Segmentation strategy of amul

powders

Products are Amul Butter, Amul Lite, Delicious Table Margarine, AmulCooking Butter.

Segmentation:

Available in India outside of India.

Outlets, amul parlors, kirana store, modern format store.

Daily use, type of butter also concentrates on diet conscious people, fast food.

100g, 500g, 50g, 20g availability.

Focuses on price sensitive consumers who also wants good quality.

Pricing:

Lesser than other brands like Britannia, mother dairy butter etc.

Competition strategy.

Pricing and Segmentation strategy of

Spread butter

Products under this are Amul Processed Cheese, Amul EmmentalCheese, Amul Gouda Cheese, Amul Cheese Spread, Amul Pizza Cheese.

Segmentation:

The largest selling brand of Cheese in India

Top outlets/APOs/MFS/ across major cities and towns in India and some countries abroad as well.

Pricing:

Price lesser than Govardhan and Britannia.

Competition strategy.

Demand sales oriented pricing.

Pricing and Segmentation strategy of

Cheese

Products are Amul Butter Milk, Amul Kool Flavoured Milk, Amul KoolCafé, Amul Kool Lassee.

Segmentation:

Available all over India.

Available in can, tetra, polypacks and glass bottles also.

Targeting youth, children, as it is nutritional flavored milk and its substitute.

Pricing:

Price varies from 10rs to 20rs.

It also follows low price high quality strategy.

Pricing and Segmentation strategy of Milk

drinks

Products under this category are Amul Ghee, Paneer, Amul

masti dahi.

Segmentation:

Availability is in different cities of India.

Pricing:

Cost effective.

Quality oriented approach by amul paneer.

Demand oriented pricing strategy.

Pricing and Segmentation strategy of

products for cooking

Products are ice cream, shrikhand, gulab jamun, basundi, avsarladoos.

Segmentation:

Available Gujarat and APOs and retail shops.

Available in all Gulf countries, USA, Singapore, Australia, NZ & Kenya.

Pricing:

Best price of readymade gulab jamun in the market.

Buy 1 get 1 free on ice crème competition oriented.

Cost effectiveness in basundi.

Pricing and Segmentation strategy of

Desserts