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(Approved by Govt. of M.P. & AICTE Delhi & Affiliated to DAVV, Indore & RGPV, Bhopal)

Synopsis

On

“Consumer Awareness Towards Brand Extension Strategy of Amul: An Empirical

Study for Indore Region’’

Submitted to: Submitted by:

Dr. Usha Tiwari chandradarshan chouksey

MBA IV sem

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Acknowledgement

It gives me immense pleasure to present this synopsis on

“Consumer awareness towards brand extension strategy of Amul:

An empirical study for Indore Region’’ carried out on partial

fulfillment of MBA program.

No work can carried out without the assistance and guidance. I

express my gratitude to those who have been helpful to me in

completing this training.

At the outset I would like to thank Dr. Usha Tiwari who contributed

her precious time, guidance & support to teach us, the consumer

attitude towards brand extension strategy of Amul. I also pay thanks

to all the other faculty members of the institute for helping me to

complete the synopsis.

Chandradarshan Chouksey MBA (FT)4th SEM

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S.NO. CHAPTERS Page No

1. Chapter 1 INTRODUCTION 0

Conceptual Framework 4

Literature review 5

Objective of the study 5

Rationale of the study 5

Chapter 2 RESEARCH METHODOLOGY

The Study 6

Respondents 6

Data Type 6

Sample 6

The Tools 7

- For Data Collection 7

- For Data Analysis 7

# REFERENCES

Chapter 1 Introduction:-

Conceptual Framework:-

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Brand extension or brand stretching is a marketing strategy in which a firm marketing a

product with a well-developed image uses the same brand name in a different product category.

When consumers face thousands of products, they not only are initially confused and disorderly

in mind, but also try to categories the brand association or image with their existing memory.

When two or more products exit in front of consumers, they might reposition memories to

frame a brand image and concept toward new introduction. A consumer can judge or evaluate

the extension by their category memory.

New product launch has always been a popular strategy of the

organizations to seek growth. There are three broad strategies to launch a new product:

(i) Line Extension; (ii) Brand Extensions; and (iii) New Brand. Brand extension option has

Become an increasingly popular way to enhance the equity associated with well known and

Well respected brands. Managers used Brand extensions because it can substantially reduce

introductory marketing expenses, reduce the risk of complicated buying decisions, enhance the

prospects of gaining access by helping retailer and consumer acceptance and provide emotional

benefits to customers.

Keywords: Brand Extension, Brand Loyalty and Image, Consumer Awareness,

parent Brand Association.

About Amul Brand:-

Amul was formed in 1946, is a dairy cooperative in India. It is a brand name managed by an

apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd.

(GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat,

India.

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Amul is based in Anand, Gujarat and has been an example of a co-operative organization's

success in the long term. The Amul Pattern has established itself as a uniquely appropriate

model for rural development. Amul has spurred the White Revolution of India, which has made

India the largest producer of milk and milk products in the world. It is also the world's biggest

vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1700 million (2009–10). Currently Unions making up GCMMF have

2.9 million producer members with milk collection average of 9.10 million litres per day.

Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,

Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter

Japanese market in 1994 did not succeed, but now it has fresh plans entering the Japanese

markets. Other potential markets being considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as a key person behind the

success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was

elected chairman of GCMMF.

History:

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The india District Co-operative Milk Producers' Union was registered on December 14, 1946 as

a response to exploitation of marginal milk producers by traders or agents of existing dairies in

the small town named Anand (in Kaira District of Gujarat). Milk Producers had to travel long

distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour as

producers had to physically carry the milk in individual containers, especially in the summer

season. These agents arbitrarily decided the prices depending on the production and the season.

Milk is a commodity that has to be collected twice a day from each cow/buffalo. In winter, the

producer was either left with surplus / unsold milk or had to sell it at very low prices.

Moreover, the government at that time had given monopoly rights to Polson Dairy (around that

time Polson was the most well known butter brand in the country) to collect milk from Anand

and supply it to Bombay city in turn. India ranked nowhere amongst milk producing countries

in the world because of its limitations in 1946 British Raj.

Angered by the unfair and manipulative trade practices, the farmers of Kaira District

approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and

Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas

Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the

Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to

the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize

the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further

oppressed. Thus the Kaira District Cooperative was established to collect and process milk in

the District of Kaira in 1946. Milk collection was also decentralized, as most producers were

marginal farmers who were in a position to deliver 1-2 litres of milk per day. Village level

cooperatives were established to organize the marginal milk producers in each of these villages.

The Cooperative was further developed and managed by Dr. V Kurien along with Shri H M

Dalaya. The first modern dairy of the Kaira Union was established at Anand. Indigenous

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research and development and technology development at the Cooperative had led to the

successful production of skimmed milk powder from buffalo milk – the first time on a

commercial scale anywhere in the world.

The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span

five other district unions – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were

organized. In order to combine forces and expand the market while saving on advertising and

avoid a situation where milk cooperatives would compete against each other it was decided to

set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the

Gujarat Co-operative Milk Marketing Federation was established. The Kaira District Co-

operative Milk Producers’ Union Ltd. which had established the brand name Amul in

1955 decided to hand over the brand name to GCMMF (AMUL).

Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, was the architect

of India’s White Revolution, which helped India emerge as the largest milk producer in the

world.

Impressed with the development of dairy cooperatives in Kaira District and its success, Shri Lal

Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr.

V Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National

Dairy Developed Board was formed and Operation Flood Programme was launched for

replication of the Amul Model all over India.

Amul Today:

GCMMF(Amul) is India's largest food products marketing organisation. It is a state level apex

body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the

farmers and also serve the interest of consumers by providing affordable quality products.

GCMMF markets and manages the Amul brand. From mid-1990s Amul has entered areas not

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related directly to its core business. Its entry into ice cream was regarded as successful due to

the large market share it was able to capture within a short period of time – primarily due to the

price differential and the brand name. It also entered the pizza business, where the base and the

recipes were made available to restaurant owners who could price it as low as 30 rupees per

pizza when the other players were charging upwards of 100 rupees.

Amul Brand Building:

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly

50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than

5,00,000 retailers.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today in

over 40 countries of the world. AMUL is exporting a wide variety of products which include

Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter

(Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in

Africa, the Gulf Region, and [SAARC] SAARCneighbours, Singapore, The Philippines,

Thailand, Japan and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by

Synovate to find out Asia's top 1000 Brands.

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The

Brand Trust Report, published by Trust Research Advisory.

Company info:

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food

products marketing organisation of India. It is the apex organization of the Dairy Cooperatives

of Gujarat. This State has been a pioneer in organizing dairy cooperatives and our success has

not only been emulated in India but serves as a model for rest of the World. Over the last five

and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links

more than 2.8 million village milk producers with millions of consumers in India and abroad

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through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS)

at the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District

level and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres

of milk per day from their producer members, more than 70% of whom are small, marginal

farmers and landless labourers and include a sizeable population of tribal folk and people

belonging to the scheduled castes.

The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the

products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL

brand name. The combined processing capacity of these plants is 11.6 million litres per day,

with four dairy plants having processing capacity in excess of 1 million Litres per day.The

farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy,

Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day and process 100

MTs of milk powder daily. During the last year, 3.1 billion litres of milk was collected by

Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle

feed manufacture have been installed. All its products are manufactured under the most

hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and HACCP

certified. GCMMF (AMUL)’s Total Quality Management ensures the quality of products right

from the starting point (milk producer) through the value chain until it reaches the consumer.

Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have

brought about a significant social and economic change to our rural people. The Dairy

Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our

rural producers benefit, the community and nation benefits as well.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a

business enterprise. It is an institution created by the milk producers themselves to primarily

safeguard their interest economically, socially as well as democratically. Business houses create

profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is

ploughed back to farmers through the District Unions as well as the village societies. This

circulation of capital with value addition within the structure not only benefits the final

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beneficiary – the farmer – but eventually contributes to the development of the village

community. This is the most significant contribution the Amul Model cooperatives has made in

building the Nation.

Products:- Amul product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi,

Yoghurt, Buttermilk chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured

milk, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first

sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's

Gatorade.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product

offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst

quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports

drink Stamina.

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Ghee:

Butter:

Cheese:

Buttermilk:

Buttermilk, low fat

Nutritional value per 100 g (3.5 oz)

Energy 169 kJ (40 kcal)

Carbohydrates 4.8 g

Fat 0.9 g

Protein 3.3 g

Calcium 116 mg (12%)

Percentages are relative to US recommendations for adults.

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Chocolate:

Ice cream:

Paneer:

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Branding:- A brand is a name, term, symbol, or design, or a combination of these, that identifies

the maker or seller of a product or service. Consumers view a brand as an important part of a

Product and branding can add value to a product.

Branding has become so strong that today hardly anything goes unbranded. Salt

is packaged in branded containers, common nuts and bolts are packaged with a distributor's

label, and automobile parts-spark plugs, tires, filters-bear brand names that differ from those

of the automakers. Even fruits, vegetables, and poultry are branded.

Branding helps buyers in many ways. Brand names help consumers identify

products that might benefit them. Brand also tells the buyer something about product quality.

Buyers who always buy the same brand know that they will get the same features, benefits,

and quality each time they buy. Branding also gives the seller several advantages.

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The seller's brand name and trademark provide legal protection for unique product features

that otherwise might be copied by competitors. And branding helps the seller to segment

markets.

Building and managing brands is perhaps the marketer's most important task. We

will discuss branding strategy in more detail.

Packaging:- Packaging involves designing and producing the container or wrapper for a product.

The package includes a product's primary container (the tube holding Colgate Total

toothpaste). It may also include a secondary package that is thrown away when the product is

about to be used.

Traditionally, the primary function of the package was to contain and protect the

product. In recent times, however, numerous factors have made packaging an important

marketing tool. Innovative packaging can give a company an advantage over competitors.

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Labeling:- Labels may range from simple tags attached to products to complex graphics that are

part of the package. They perform several functions. At the very least, the label identifies the

product or brand. The label might also describe several things about the product-who made it,

where it was made, when it was made, its contents, how it is to be used, and how to use it

safely. Finally, the label might promote the product through attractive graphics.

Product Support Services:- Customer service is another element of product strategy. A company's offer

usually includes some support services, which can be a minor or a major part of the total

offering.

The first step is to survey customers periodically to assess the value of current services

and to obtain ideas for new ones.

Once the company has assessed the value of various support services to customers, it

must next assess the costs of providing these services. It can then develop a package of

services that will both delight customers and yield profits to the company.

Many companies are now using a sophisticated mix of phone, e-mail, fax, Internet and

interactive voice and data technologies to provide support services that were not possible

before.

Product Line Decisions:- Beyond decisions about individual products and services, product strategy also

calls for building a product line. A product line is a group of products that are closely related

because they function in a similar manner, are sold to the same customer groups, are

marketed through the same types of outlets, or fall within given price ranges. For example,

Nike produces several lines of athletic shoes and apparel.

The major product line decision involves product line length -the number of

items in the product line. The line is too short if the manager can increase profits by adding

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items in the product line. The line is too short if the manager can increase profits by adding

items; the line is too long if the manager can increase profits by dropping items.

A company can lengthen its product line in two ways: by line stretching or by

line filling. Product line stretching occurs when a company lengthens its product line beyond

its current range. The company can stretch its line downward, upward, or both ways.

Companies at the lower end of a market can stretch their product lines upward.

Sometimes, companies stretch upward in order to add prestige to their current products. Or

they maybe attracted by a faster growth rat or higher margins at the higher end. For example,

each of the leading Japanese auto companies introduced an up market automobile: Toyota

launched Lexus; Nissan launched Infinity; and Honda launched Acura. They used entirely

new names rather than their own names.

An alternative to product line stretching is product line filling – adding more

items within the present range of the line.

Product Mix Decisions:- An organization with several product lines has a product mix. A product mix

consists of all the lines and items that a particular seller offers for sale. Avon's product mix

consists of five major product lines: beauty products, wellness products, jewelry and

accessories, gifts, and “inspirational” products (inspiring gifts, books, music, and home

accents). Each product line consists of several sublines.

A company's product mix has four important dimensions: width, length, depth,

and consistency. Product mix width refers to the number of different product lines the

company caries.

Product mix length refers to the total number of items the company carries

within its product lines. P&G typically carries many brands within each line. For example, its

house and home line includes seven laundry detergents, six hand soaps, five shampoos, and

four dishwashing detergents.

Product line depth refers to the number of versions suffered of each product in the

line.

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Finally, the consistency of the product mix refers to how closely relate the

various product lines are in end use, production requirements, distribution channels, or some

other way.

These product mix dimensions provide the handles for defining the company’s

product strategy. The company can increase its business in four ways. It can add new product

lines, widening its product mix. In this way, its new lines build on the company’s reputation

in its other lines. The company can lengthen its existing product lines to become a more full-

line company. Or it can add more version of each product and thus deepen its product mix.

Finally, the company can pursue more product line consistency-or less-depending on whether

it wants to have a strong reputation in a single field or in several fields.

Literature Review:

Various studies have measured the consumer perceptions of well known parent brands

extended into new product categories. Parent brand plays an important role in the success of

an extension. High quality brands are often seen as more credible, expert and trustworthy.

Consumers evaluate less favorably for average quality brands.

Several studies observed that greater is the similarity between the original category and

extended brand, greater is the positive evaluation to the extended brand (Tauber, 1988;

Aader,1990; Boush and Loken,1991; Bottomley and Doyle, 1996; Sunde Brodie, 1993; Park,

Milberg and Lawson, 1991; Panda, 2003). The role of extension similarity was corroborated in

the context of service brand extension (Ruyter and Martin, 2000). Brand Extension exposure

strengthens parent brand memory structure and facilitate retrieval process (Morrin, 1999).The

influence of various factors such as brand reputation, slogans, brand affect and cognitive

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sturcture on brand and Herbig, 1994; Broniarczyk and Alba, 1994. Studies by Barone (2000)

investigated the role of positive mood on extension evaluation. Dacin and Smith (1994)

observed that when the portfolio quality variance was low,there was a positive relationship

between a product affiliated and consumer confidence in their judgments of quality of brand

extended on an overall basis by using questioning method (Muthukrishnan and Weitz, 1991).

Research by Keller and Aaker (1997) examined the effects of innovativeness on brand

extension evaluation.

Objectives of the Study:-

1. To study the impact of brand extension strategy on brand image.

2. To study the impact of brand extension on increasing the brand loyalty.

3. To measure the consumer's awareness of Amul's brand extension strategies.

Rationale of the study:-

Every company launches numerous products in the market but many of them fail to get

noticed by customers. This is undertaken to find out the awareness level of customers towards

Amul’s brand and various strategies adopted by the company.

Chapter 2

Research Methodology :-

This empirical study would be based on primary information of 150 consumers through a

structured questionnaire. The questionnaire would be designed to elicit information on the

following aspects: Customers' Knowledge about the brands, various products associated with

the brand, various brand associations, favorability and feasibility of brand extensions,

Relevance of brand association in various hypothetical extendable product / service categories

and Overall evaluation of brand extensions.

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The Study :-

The study is empirical and descriptive in nature which mainly focuses on analyzing the

awareness of Amul in customer’s mind.

The respondents:-

The respondents will be 150 in Indore city. The main focus is to understand how Amul’s

strategies are successful in creating awareness among the consumers.

Data Type:-

The study is empirical and descriptive in nature which mainly focuses on analyzing the

awareness of Amul in customer’s mind.

The Sample:-

Sample Type: There will be using stratified random sampling. Sample Size: In the city of Indore with sample size of 150 respondents.

The Tools:-

Data collection: The data will be collected on the following methodology basis:

(i) Primary Data: The primary data will be collected through questionnaire papers. (ii) Secondary Data: Secondary data will be collected from various journals, research

paper, articles and internet sources.

(iii)Sample Size: In the city of Indore with sample size of 150 respondents.

Data Analysis: Correlation, Factor analysis etc. and other appropriate tools shall be applied

to meet the objectives of the study.

References :-

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1. Principals of Marketing (Tenth edition)-Kotler Armstrong.

2. Product Policy Management and Brand Management -Dr. A.K. Chitale.

3. Brand Management(Second edition)-Harsh V Verma.

4. Brand Management-Y L R Moorthi.