milk advertisement

34
Increasing prices of raw materials, demand for dairy products in emerging markets and the drive for health and wellness, are putting pressure on dairy manufacturers to develop innovative but cost effective products. Key growth strategies for many of the top companies include strengthening brand portfolios and expansion in growth markets such China and India. The Top 10 Dairy Companies is a report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the dairy industry. This report identifies the product areas that the top 10 players are seeking to develop and also highlights the respective markets where each individual company is looking to grow. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world’s leading dairy companies. Benchmark your performance against the leading dairy companies using market share and financial data in this report... Key findings from this report... -The global dairy industry is highly fragmented, with the top 10 companies representing about 22.4% of the total market size in 2006. -The global dairy market reached $402.5bn in 2006, representing a five-year CAGR of 3.7% and it is forecast to reach about $487.2bn in 2011, representing a five-year CAGR of 4.9%. -The leading dairy companies are focussing innovation on organic and functional dairy. Other latest developments have included products that are low fat, contain natural ingredients and no preservatives. -Nestlé was the global industry leader with a 5.0% market share in 2006, followed by Danone (2.5%) and Dean Foods (2.4%). -Parmalat’s dairy business recorded revenues of R3,546m ($4,861m) for the fiscal year ended December 2007, an increase of 6.1% over 2006. Higher revenues in fiscal 2007 were mainly due to higher sales volume in Canada and Italy. The dairy revenues accounted for 91.8% of its

Upload: shanib-pt

Post on 28-Oct-2014

50 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: Milk Advertisement

Increasing prices of raw materials, demand for dairy products in emerging markets and the drive for health and wellness, are putting pressure on dairy manufacturers to develop innovative but cost effective products. Key growth strategies for many of the top companies include strengthening brand portfolios and expansion in growth markets such China and India.

The Top 10 Dairy Companies is a report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the dairy industry. This report identifies the product areas that the top 10 players are seeking to develop and also highlights the respective markets where each individual company is looking to grow. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world’s leading dairy companies. Benchmark your performance against the leading dairy companies using market share and financial data in this report...

Key findings from this report...

-The global dairy industry is highly fragmented, with the top 10 companies representing about 22.4% of the total market size in 2006.

-The global dairy market reached $402.5bn in 2006, representing a five-year CAGR of 3.7% and it is forecast to reach about $487.2bn in 2011, representing a five-year CAGR of 4.9%.

-The leading dairy companies are focussing innovation on organic and functional dairy. Other latest developments have included products that are low fat, contain natural ingredients and no preservatives.

-Nestlé was the global industry leader with a 5.0% market share in 2006, followed by Danone (2.5%) and Dean Foods (2.4%).

-Parmalat’s dairy business recorded revenues of R3,546m ($4,861m) for the fiscal year ended December 2007, an increase of 6.1% over 2006. Higher revenues in fiscal 2007 were mainly due to higher sales volume in Canada and Italy. The dairy revenues accounted for 91.8% of its consolidated revenues in 2007.

Some key issues answered by this report...

-Growing demand for dairy products in Asia is driving global milk prices. The increase in demand has been fuelled by population growth, increases in personal income and Western-style influences on the Asian diet (demand for non-native foods such as cheese slices, yogurt and skimmed milk among young urbanites).

-Contracting European supply of milk. The milk quota system (introduced in 1984) has placed a limit on the amount of milk produced each year by EU dairy farmers. EU-25 milk production declined 0.3% during September 2004–07 and 1.4% in September 2007.

Page 2: Milk Advertisement

-Adverse climatic conditions in Australia and New Zealand. Australia and New Zealand are the two major milk exporters in the world. In 2005, both countries witnessed a drop in milk production due to adverse climatic conditions, with Australia’s output falling 0.3% and New Zealand down 4.0% year-on-year. Decline in output of world’s major milk exporters will impact the global milk supply and therefore, will lead to a rise in milk prices.

Some key questions answered by this report...

-What are the trends in the global dairy industry?

-Who are the top 11 to 20 companies?

-Which regions and segments offer the leading dairy companies the greatest growth opportunities?

-How do the leading dairy companies compare in terms of financial performance and coverage by country and category?

-What are the key strategies of the leading dairy companies and how do these strategies drive revenue and market share?

This new report will enable you to...

-Benchmark the world’s leading dairy companies with this report’s ranking of the top 10 companies, detailing their financial performance and future prospects.

-Identify and target future growth areas from this report’s analysis of the acquisitions and divestments made by leading dairy companies and their strategies for growth.

-Understand the key trends in the dairy market and the impact that they are expected to have, using this report.

-Enhance your product development strategies with this report’s analysis of the leading dairy companies’ innovation and NPD strategies and recent product launches.

-Create more effective competitive strategies based on this report’s SWOT analyses of the top dairy companies.

-Assess the performance of leading dairy companies, identify their strengths and weakness and learn about their growth strategies with this report...

Product samples

Page 3: Milk Advertisement

A sample for this product is available. Please Login/Register to download this sample.

Customers who bought this item also bought

Top 10 Food and Drinks Companies: Emerging Opportunities, Growth Strategies and Innovation in the Leading Players

The Top 10 Flavour and Fragrance Companies

The Top 10 Food and Drinks Ingredient Companies: Emerging opportunities, growth strategies and innovation in the leading players

The Top 10 Food and Drinks Packaging Companies: Key Strategies For Market Growth and Future Innovation

Dairy Products - Global Strategic Business Report

The Top 10 Spirits Companies: Industry Trends and Growth Strategies of Leading Players

The Top 10 Flavor and Fragrance Companies: Emerging Opportunities, Growth Strategies and Financial Performance

The Top 10 Snacks Companies: Emerging Opportunities, Growth Strategies and Financial Performance

The Top 10 Global Leaders In Food: Increasing Market Share, Revenues And NPD Success

The Top 10 Soft Drinks Companies: Consumer Drivers, SWOT Analyses and Format and Flavour Trends

Milk was always manufactured and consumed in bulk in India. But with the rise in disposable incomes the demand for milk and related items are on a continuous rise. Milk is said to be among the most important part of the diets of Indian after wheat and rice. 

Milk production in India ranges from rural areas to the highly urbanized ones. In the rural areas every farmer having one or two cows or buffaloes yields around -3 litres of milk per animal. India is highly acclaimed for its high contribution of buffalo milk because of factors like high fat content and a host of other nutrients. 

India happens to be the highest producer of milk in the world. India contributes almost 65% of the total world buffalo milk. With the advent of modern technology India has risen from an insignificant amount of 200,000 liters per day (lpd) of milk in 1951, to 20 million liters per day in 2010. The country is home to almost 400 dairy plants. 

Page 4: Milk Advertisement

The milk market in India does not have many active brands. The one major brand that has been dominating the diary industry in India since quite a few decades is Amul. Since Indians are very peculiar and choosy about the milk that they consume they do not like to try out other brands. They like sticking to trusted brands and the brand that has definitely occupied a major mind share of the Indian population as far as milk is concerned is Amul. It can easily be called the top milk brand in India. 

The undisputed Top Milk Brand in India is Amul. Established in 1946, the company deserves maximum credit for making India the world's largest milk and milk products producer. Evolved over the years as the most preferable liquid milk brand in the Indian subcontinent Amul churns out a turnover of almost ` 8,000 crore annually. According to industry experts the production forecast for the next year happens to be even better with an estimate turnover of` 10,000 crore. The best thing about the brand is that it has not only penetrated the urbanized areas but the rural market as well. Amul apart from milk is the manufacturers of a host of allied products like Ghee, butter, cheese, powder milk, flavored milk, curd, cold coffee, Lassi etc. 

Top Milk Brands in India 

Amul Paras Mother Dairy Saras Verka Sweet

Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called milma was established in April, 1980 with its Head Office at Thiruvananthapuram for the successful implementation of the Operation Flood ( a dairy programme launched in 1970 under the aegis of National Dairy Development Board(NDDB).The name milma represents:-

2678 Primary milk co-operative societies now functioning as on 31.03.2010 8.31 lakhs farmer members Three Regional Co-operative Milk Producers' Union Thirteen Dairies capable of handling 12lakhs

litres of milk per day Ten Milk Chilling Centres Two Cattle Feed Plants with cumulative capacity of  600MT per day One Milk Powder Plant of 10MT per day capacity A well established Training Centre 5,200 retail outlets

Page 5: Milk Advertisement

Over 32,000 people working either directly or indirectly for the functioning of milma

Apart from these we serve millions of consumers day-in and day-out.

ABT INDUSTRIES LIMITED (ABTIL) - Dairy Division

Founded in the year ….the Dairy Division of ABTIL procures and processes close to 2, 00, 000 liters milk per day. Uniquely, this is the only Company in Tamil Nadu using 'Procurement of milk through Bulk Milk Coolers' for collecting the entire quantum of milk it procures.

'Sakthi Milk' is marketed in various towns of Tamil Nadu and Kerala. It is the second largest brand in Kerala next to the state owned Co-operative brand.

ABTIL is also manufacturing and marketing value added milk products like ghee, butter, curd, sterilized flavored milk, paneer, etc. Attributing future growth of the division the export of Sakthi to foreign countries has earned significant market response.

It is predicted that in the imminent future there will be a strong market potential for Diary products from India. Bearing this in mind ABTIL has been working towards expanding its facilities by commissioning of advanced milk processing plants, continuous butter making units and milk powder plants.

SRI MAHALAKSHMI dairy was founded by Mr. R. Ponnuswamy,Chairman and Managing Director of the

Aroma Sri Mahalakshmi Group of Food industries in the year 1972 and our brand NameAROMA MILK is a

house hold name in the city of Coimbatore and Tiruppur. Sri Mahalakshmi dairy had a humble beginning in

1972 in a small village called a Telugupalayam, nearby Coimbatore. The dairy was started with an ideological

goal to serve the poor and economically weaker dairy farmers of Coimbatore Dist. and nearby Tiruppur dist.

From the time the dairy started, it has served the farmer community with complete dedication and affection.

The farmers have developed an ever increasing loyalty to this organisation which is reflected in the yearly

growth rate of the company.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk cooperative societies, 17 member

Page 6: Milk Advertisement

unions covering 24 districts, and 3.18 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.

The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

Aavin(Tamil:ஆவி�ன்) is the trademark of the Tamil Nadu Co-operative Milk Producers' Federation

Limited, a Tamil Nadu-based milk producer's union. The aim of AAVIN is to procure milk, process it, chill

it, pack and sell it to the consumers.

Contents

  [hide] 

1 Etymology

2 History

3 Headquarters

4 Activities

5 Milk Products of AAVIN

6 References

7 External links

8 See Also

[edit]Etymology

Aavin comes from Tamil meaning 'from cow'. So 'Aavin paal' (ஆவி�ன் பா�ல்) translates to cow's milk.

Interestingly the second letter of the Tamil alphabet, Aa or ஆ, is one of the many one-letter words in the

language.

Page 7: Milk Advertisement

[edit]History

The Dairy Development Department was established in Tamil Nadu in the year 1958 to oversee and

regulate milk production and commercial distribution in the state. The Dairy Development Department

took over control of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers

Federation Limited in the year 1981.

On February 1, 1981, the commercial activities of the cooperative were handed over to Tamil Nadu Co-

operative Milk Producers' Federation Limited which sold milk and milk products under the trademark

"aavin".

With many private companies entering the field of dairy, the Tamil Nadu government is giving high priority

to improve the performance of the cooperatives.Tamil Nadu is one of the leading states in India in milk

production with about 14.5 million litres per day.

[edit]Headquarters

The Tamil Nadu Cooperative Milk Producers Federation (AAVIN) is located

at 13°9′10″N 80°14′40″E Aavin Illam, Madhavaram Milk Colony, Chennai.

[edit]Activities

The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District

Cooperative Milk Producers' Unions.The Federation has four dairy plants at the following locations in

Chennai.[1]

1. Ambattur  with a capacity of 4.00 lakh litres per day

2. Madhavaram  with a capacity of 3.00 lakh litres per day

3. Sholinganallur  with a capacity of 4.00 lakh litres per day.

4. Ambattur  - Product Diary.

These dairies collect milk from District Unions, process and pack in sachets and send for sale to the

consumers in and around Chennai City. The Ambattur product Dairy is also engaged in the manufacture

of milk products such as Yogurt, Ice Cream, Khova, Gulabjamoon, Buttermilk, Curd and Mysorepak.

[edit]Milk Products of AAVIN

Aavin produces 4 varieties of milk.[2]

1. Toned milk (3% Fat)

2. Doubled toned milk (1.5%)

3. Standardized Milk (4.5%)

4. Full Cream Milk (6%)

[edit]References

1. ̂  Dairy Development Department, Government of Tamilnadu. "Policy Notes". Retrieved 16 July 2010.

Page 8: Milk Advertisement

2. ̂  Government of Tamilnadu (11 March 2008). "Press Release Notes". Retrieved 16 July 2010.

[edit]External links

Swot Analysis of Amul

Strengths

1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers.

2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers.

3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do.

4. People are quite confident for the quality products provided by Amul.

5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses.

6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses

1. There are various big players in the chocolate market, which acts as major competitors restricting their growth.

Is this essay helpful? Join OPPapers to read more and access more than 700,000 just like it!

GET   BETTER   GRADES

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

Opportunities

1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting.

2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

Page 9: Milk Advertisement

Threats

1. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

3. New companies’ entering in Indian market like Fantasie fine poses lot problems for Amul.

Paras looks to take F2H cow milk pan-IndiaBy Michael Gonsalves Aug 23 2012 , PuneTags: News

Parag Milk Foods, the maker of Go and Gowardhan brand of milk, curd, ghee and cheese, has launched F2H

(farm to home) premium one litre cow milk under its latest Pride of Cows brand.

“After successfully testing the market in south Mumbai, we plan to take this innovative F2H cow milk initiative

pan India,” Devendra Shah, chairman of Parag Milk Foods, told Financial Chronicle. At present, the packaged

farm fresh milk is available in one litre bottle with a sticker price tag of Rs 75.

The private company has crossed 5,000 clients in Mumbai in the last six months. “With the demand rising, we

plan to increase our customer base in Mumbai to over 10,000 next year,” Shah said.

He said this homogenised and pasteurised milk needs no boiling and is high in nutritional value and hand

delivered to the customer’s doorstep every morning. “Pride of Cows has a distinct flavour of delicious full

bodied milk, which is richer and creamier than regular milk,” Shah claimed.

He said Mumbai is a huge and growing milk market on an average consuming over 55 lakh litres of milk every

day. “Out of this, packaged milk accounted for 35 litres daily,” Shah said. He said at present there are no

competitors for the unique Pride of Cows brand even though it mainly competes with Amul, Mother Diary and

Nestle brands nationally for other milk products.

“The F2H premium milk is produced without human interference at Bhagyalaxmi Dairy Farm, the subsidiary of

Parag Milk Foods, using state-of-the-art imported German technology and under global best practice of milking,

processing and bottling,” Shah said.

He said the company has invested over Rs 30 crore at the 40-acre Bhagyalaxmi Dairy Farm at Manchar for the

latest advanced technology and infrastructure for milking and bottling. The farm with 3,000 Holsteins Friesians

cows fed with fresh produce grown at the farm produces 40,000-45,000 litres milk every day.

Shah said the firm has also begun selling Pride of Cows milk in Pune market, where it plans to tap 5,000

customers within a year.

Page 10: Milk Advertisement

“We are also planning to sell and deliver the brand in New Delhi, Ahmadabad and Bangalore within next year,”

Shah said. The firm is targeting to sell a total of 20,000 to 25,000 litres by the end of next year, he said.

rint Media

Dahi Sticker Balance Diet Paras Cow - Holi Poster

Paras Money offer Paras Dahi Paras Delight - Danglar

Holi - Poster Cocoblast offer - Poster Big Bit offer - Poster

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.[2] The word Amul is

derived from the Sanskrit word Amulya, meaning invaluable.[3] The co-operative is also sometimes

referred to by the unofficial backronym: Anand Milk Union Limited.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers in Gujarat.[4]

Page 11: Milk Advertisement

Amul spurred India's   White Revolution , which made the country the world's largest producer of milk and

milk products.[5] In the process Amul became the largest food brand in India and has also ventured into

markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973-2006), is credited

with the success of Amul.[6]

Contents

  [hide] 

1   History

2   GCMMF today

3   Company info

4   The Three-tier "Amul Model"

o 4.1   Village Dairy Cooperative Society (VDCS)

o 4.2   District Cooperative Milk Producers’ Union (Dugdh Sangh)

o 4.3   State Cooperative Milk Federation (Federation)

5   Impact of the "Amul Model"

6   Achievements of the "Amul Movement"

7   Achievements of GCMMF

o 7.1   The Amul brand

8   Products

9   Mascot

10   Advertising

11   In popular culture

12   References

13   External links

[edit]History

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on December 1, 1946 as a

response to the exploitation of marginal milk producers by traders or agents of the only existing dairy,

the Polson (brand) dairy, in the small town of Anand (in KairaDistrict of Gujarat).[7] Milk Producers had to

travel long distances to deliver milk, which often went sour in summer, to Polson. The prices

of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given

monopoly rights to Polson to collect milk from Anand and supply it to Bombay city.[8][9]

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

approached Sardar   Vallabhbhai Patel  under the leadership of local farmer leader Tribhuvandas K. Patel.

He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of

Page 12: Milk Advertisement

Polson (who did the same but gave them low prices).[10] He sent Morarji Desai to organise the farmers. In

1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect

and process milk.[9] Milk collection was also decentralized, as most producers were marginal farmers who

could deliver atmost 1–2 litres of milk per day. Cooperatives were formed for each village too.[11]

The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya.

Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world

and a little later, along with Kurien's help, making it on a commercial scale,[12] led to the first modern dairy

of the cooperative at Anand, which would successfully compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's

neighbourhood in Gujarat, and within a short span, five unions in other districts – Mehsana, Banaskantha,

Baroda, Sabarkantha and Surat were set up.[9] In order to combine forces and expand the market while

saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of

these district cooperatives was set up in 1973. The Kaira Union which had the brand name of Amul with it

since 1955, transferred it to GCMMF.[13]

Impressed with the success of the dairy cooperative, Prime Minister Lal Bahadur Shastri, during his visit

to Anand in 1964, asked Dr. Kurien to replicate the Anand pattern of cooperative dairying at Amul, all over

India. Thus, the National Dairy Development Board (NDDB)was formed and the programme, Operation

Flood launched.[14]

[edit]GCMMF today

GCMMF is India's largest food products marketing organisation.[citation needed]. 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 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.

[edit]Company info

The GCMMF is the largest food products marketing organisation of India. It is the apex organization of the

Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have

created an economic network that links more than 3.1 million village milk producers with millions of

consumers in India. These cooperatives collect on an average 9.4 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 2010–11 was    97.74 billion (US$1.77 billion). It markets the

products, produced by the district milk unions in 30 dairy plants. 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.[citation needed]

Page 13: Milk Advertisement

On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected chairman of

GCMMF, following a court's intervention.[15]

[edit]The Three-tier "Amul Model"

This section needs

additionalcitations for verificatio

n.(February 2012)

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative

Society at the village level affiliated to a Milk Union at the District level which in turn is further federated

into a Milk Federation at the State level. The above three-tier structure was set up in order to delegate the

various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at

the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in

eliminating not only internal competition but also ensuring that economies of scale is achieved. As the

above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under

the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy

Cooperatives.

Responsible for Marketing of Milk & Milk Products

Responsible for Procurement & Processing of Milk

Responsible for Collection of Milk

Responsible for Milk Production

[edit]Village Dairy Cooperative Society (VDCS)

The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village & payment based on quality &

quantity

Providing support services to the members like Veterinary First Aid, Artificial Insemination services,

cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal

Husbandry & Dairying, etc.

Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the

District Milk Union.

[edit]District Cooperative Milk Producers’ Union (Dugdh Sangh)

The main functions of the Union are as follows:

Procurement of milk from the Village Dairy Societies of the District

Arranging transportation of raw milk from the VDCS to the Milk Union.

Page 14: Milk Advertisement

Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-

feed sales, mineral mixture sales, fodder & fodder seed sales, etc.

Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers

and conducting specialised skill development & Leadership Development training for VDCS staff &

Management Committee members.

Providing management support to the VDCS along with regular supervision of its activities.

Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.

Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the requirement of State Marketing Federation.

Decide on the prices of milk to be paid to milk producers as well on the prices of support services

provided to members.

[edit]State Cooperative Milk Federation (Federation)

The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions.

Establish distribution network for marketing of milk & milk products.

Arranging transportation of milk & milk products from the Milk Unions to the market.

Creating & maintaining a brand for marketing of milk & milk products (brand building).

Providing support services to the Milk Unions & members like Technical Inputs, management support

& advisory services.

Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.

Arranging for common purchase of raw materials used in manufacture / packaging of milk products.

Decide on the prices of milk & milk products to be paid to Milk Unions.

Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity

required for the same.

Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.

Arranging Finance for the Milk Unions and providing them technical know-how.

Designing & Providing training on Cooperative Development, Technical & Marketing functions.

Conflict Resolution & keeping the entire structure intact.

Today, there are around 176 cooperative dairy Unions formed by 1.25 lakh dairy cooperative societies,

having a total membership of around 13 million farmers on the same pattern, who are processing and

marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra

Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or a Nandini in Karnataka. This

entire process has created more than 190 dairy processing plants spread all over India with large

investments by these farmers’ institutions. These cooperatives today collect approximately 23 million kgs.

of milk per day and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.

[edit]Impact of the "Amul Model"

Page 15: Milk Advertisement

The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation

report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation Flood

Programme in 70s & 80s has contributed in increase of India’s milk production by 40 Million Metric Tonne

(MMT) i.e. from about 20 MMT in pre- Operation Flood period to more than 60 MMT at the end of

Operation flood Programme. Thus, an incremental return of Rs. 400 billion annually have been generated

by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project

funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as

India’s milk production continues to increase and now stands at 90 MMT. Despite this fourfold increase in

milk production, there has not been drop in the prices of milk during the period and has continued to grow.

Due to this movement, the country’s milk production tripled between the years 1971 to 1996. Similarly, the

per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000. Thus,

these cooperatives have not just been instrumental in economic development of the rural society of India

but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society.

Very few industries of India have such parallels of development encompassing such a large population.

These dairy cooperatives have been responsible in uplifting the social & economic status of the women

folk in particular as women are basically involved in dairying while the men are busy with their agriculture.

This has also provided a definite source of income to the women leading to their economic emancipation.

The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in the country.

As per the assessment report of the World Bank on the Impact of Dairy Development in India, the ‘Anand

Pattern’ has demonstrated the following benefits:

is has multi-dimensional impacts

importance of getting government out of commercial enterprises

importance of market failure in agriculture

power & problems of participatory organisations

importance of policy correct

[edit]Achievements of the "Amul Movement"

1. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root

level with the management committee of the village level unit elected from among the members

in majority of the villages.

2. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed,

race, religion & language at the villages, by offering open and voluntary membership.

[edit]Achievements of GCMMF

3.1 million milk producer member families

15,760 village societies

15 District Unions

9.4 million liters of milk procured per day

150 million (US$2.72 million) disbursed in cash daily

Page 16: Milk Advertisement

GCMMF is the largest cooperative business of small producers with an annual turnover of  53 billion

(US$959.3 million)

The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi National Quality

Award”.

Largest milk handling capacity in Asia

Largest cold chain network

48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets

Export to 37 countries worth  150 crore (US$27.15 million)

Winner of APEDA award for eleven consecutive years[16]

[edit]The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales

offices spread all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers.

Amul became the world's largest vegetarian cheese [17] and the largest pouched-milk brand.

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 SAARCneighbours,

Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia, Hong

Kong and a few South African countries. Its bid to enter the Japanese market in 1994 did not succeed,

but it plans to venture again.[18]

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

out Asia's top 1000 Brands.[19]

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

Report,[20] published by Trust Research Advisory. rediff.com; "India's top 20 brands: Amul is No. 1"

[edit]Products

Amul's 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.[21]

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.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.[citation needed]

[edit]Mascot

Since 1967[22] Amul products' mascot has been the very recognisable "Amul baby" or Amul girl (a chubby

butter girl usually dressed inpolka dotted dress) showing up on hoardings and product wrappers with the

Page 17: Milk Advertisement

equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for Amul butter.

But in recent years in a second wave of ad campaign for Amul products, she has also been used for other

product like ghee and milk.

[edit]Advertising

An Amul butter ad on Pakistan's Kargil Warfiasco. The image shows the "Amul baby" in between George

Fernandes and Atal Bihari Vajpayee.

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to design a

new ad campaign for Amul Butter. daCunha designed an ad campaign as series of hoardings with topical

ads, relating to day-to-day issues.[23] The campaign was widely popular and earned a Guinness world

record for the longest running ad campaign in the world. In the 1980s, cartoon artist Kumar Morey and

script writer Bharat Dabholkar had been involved with sketching the Amul ads; the latter rejected the trend

of using celebrities in advertisement campaigns. Dabholkar credited chairman Varghese Kurien with

creating a free atmosphere that fostered the development of the ads.[24]

Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of

not backing down. Some of the more controversial Amul ads include one commenting on Naxalite

uprising in West Bengal, on the Indian Airlines employees strike, and the one depicting the Amul butter

girl wearing a Gandhi cap [23]

Amul hired DraftFCB+Ulka for the brands of Amul milk, chocolates, paneer, ghee, ice-cream.

[edit]In popular culture

The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the

notable Indian film-makerShyam Benegal to base his film Manthan (1976) on it. The film starred Smita

Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh

rural farmers in Gujarat who contributed Rs 2 each to the film'š budget. Upon its release, these same

farmers went in truckloads to watch 'their' film, making it a commercial success.,[25][26] the film was chosen

for the 1977National Film Award for Best Feature Film in Hindi

Amul’s ads have become the stuff of legend. But behind every great ad, there’s a great client, and Verghese Kurien was one of the best.

Reams have been written on the achievements of Verghese Kurien as an innovator and creator of the milk revolution in India. However, there has been little said on

Page 18: Milk Advertisement

another facet of his: as an advertising man and the role he played in building a cult brand such as Amul; and how the Amul brand grew to be worth $2.5 billion with its variants and extensions.

If one were to dissect the advertising journey, the differences between him and the other stalwarts in the advertising business today become distinct.

HIRE THE BEST TALENT, NOT THE BEST ADDRESS

Kurien never believed in flashing the advertising agency as a trophy; yet he believed in the most capable talent. He wanted the best brains who believed in the same principles and causes as he did. So the big advertising agencies with the most respected and feared names never stood a chance as they never believed that much could be achieved from bringing farmers together across villages in India to build a business. Low-profile names such as those of K. Kurrian of Radeus Advertising and Eustace Fernandes come to mind for their rapport with V. Kurien.

DELEGATE TO THE MORE CAPABLE

He was the first one to realise that consumer understanding and the hot buttons that click human emotions are no child’s play and are a specialist’s domain. Hence delegation of authority was necessary and this came naturally to him as he believed in the integrity of professionals who worked with him. So when Eustace Ferandes created the Amul moppet and K. Kurrian suggested outdoor as the main medium, Kurien was not convinced but he approved. Later he seldom insisted on seeing the final creations and the executions before they were released. This is a rare quality that differentiates him from the leaders of today who hold on to authority and delegate responsibility.

INNOVATING WITH A FEATURE FILM

This chemistry with the team saw stalwarts such as Shyam Benegal makingManthan which was like a 150-minute commercial outlining the real purpose and commitment of Anand and Amul. Never has this kind of merchandising of an idea been attempted or done successfully. The actors in the film rave, even today, about this social role they performed apart from winning fame and respect. The title song sung by Preeti Sagar is still belted out regularly by Doordarshan and its 23 channels in a commercial avatar, even after three decades of its creation.

PART OF THE BRAND CURRICULUM

The ‘Amul Story’ over the years is part of the syllabus and has been analysed and dissected by the best brains at business schools. It has set benchmarks of defining impossibility and the scope within it. It has defined what true grit, commitment and integrity can achieve. Experts refer to it as the “Sholay of brand-building in India”. Its brilliance lies in the fact that it can be adapted to any situation, and any genre. Its nuances are part of branding folklore and hence it is imperative we acknowledge the architect.

Page 19: Milk Advertisement

THE BRAND VOICE IS THE FEARLESS CONSUMER VOICE

Another impossible trait that no brand in India has possessed or ever will do. The style, topicality and blatant honesty of the Amul campaign has not changed in the last five decades. It is India’s longest running creative format. The only other one I can think of is the Marlboro communication, which too relied on the outdoor medium as it was a handicapped category in the mainline media. In Amul’s case it was purely by choice. Few would have the guts to take on the establishment in a tongue-and-cheek style as the legendary Amul advertisements. Even during extremely tense times such as the Emergency in the mid-Seventies the brand continued its endeavour in the same unabashed, classy way without flinching.

Over the years this style, format and placement became the common man’s way to express their frustrations. Till today few have challenged the content or the veracity of the issue. This created the buzz around the brand and the obvious favourability when one is fighting multinational giants with deep pockets. This medium with the message amalgam also resulted in the best return on investments vis-a-vis the competing brands.

PROUD TO BE INDIAN

This was a hallmark quality that differentiated Kurien from the very best in the business. He fiercely believed in creating something in India that would be in the world’s showcase. It is this wild desire that led to collecting millions of litres of milk from three million farmers everyday; creation of an umbrella brand called Amul which extended to various other products such as milk powder, ghee, butter, chocolates, health beverages and buttermilk. But the important fact is that it made millions happy everyday and hence evolved ‘The Taste Of India’. This created the much-needed halo Indian brands lacked. Today the Amul story is revered worldwide.

NEVER ASK FOR A PITCH

Another notable trait of Kurien was that he never tested anyone’s ability before awarding the business to an agency. One never heard of him asking for a pitch. This is such a differentiator from today’s norm where business is moving every year and every professional’s ability is constantly under scrutiny which results in the joy disappearing from the place of work

I had the rare opportunity of spending a couple of minutes with the great man at a TV news channel’s function which was to confer a lifetime achievement award. I congratulated him and asked him that as everything seems so right in his life, is there anything in the past that he would like to change or would do differently? He sized me up and said, “Maybe some more butter on my breakfast toast.”

Gopinath Menon is CEO, Melon Media, Crayons Communications Group.

Keywords: Amul ads become the stuff of legend, Ferandes created the Amul moppet, K. Kurrian suggested outdoor as the main medium, ‘The Taste Of India’

Page 20: Milk Advertisement

Amul has just been ranked as the No. 1 Indian brand by Campaign magazine in its list of Top

1000 Brands of Asia for the third consecutive year. And I’m really excited. Amul is one brand

which truly deserves this accolade. Formed in 1946, Amul is not one of those flamboyant

multinationals but a dairy cooperative, jointly owned by 2.8 million milk producers in

Gujarat. Talk about unity!

Amul has been a stellar example of rural development and has been at the forefront of the

White Revolution in India which has made the country a production powerhouse for milk and

milk products. With an annual turnover in excess of US$1.7 billion, Amul is the largest food

brand in India and has a presence in 40 countries globally. Here’s a mind boggling statistic.

The daily milk collection from Amul’s producer members stands in excess of 9 million liters.

So what makes Amul such an amazing brand? While Amul is synonymous with milk and

butter, it’s product range is quite formidable and inclues ghee, cheese, curd, yogurt,

chocolate, ice cream, shrikhand and many other products. This strategy has allowed it to

reign supreme in the dairy products segment in India. The other thing that works in Amul’s

favour is its amazing network. It has about 50 sales offices pan-India with more than 3,000

wholesale dealers and more than 5,00,000 retailers. That is huge!

But they also have a secret weapon. The Amul mascot, a cute and chubby girl usually

dressed in a polka dot dress, is universally recognisable in India. And the tagline, ‘Utterly

Butterly Delicious Amul’ is just as catchy. Together, these two elements are a fantastic

combination of brand elements for Amul. And get this, the Amul mascot has been the same

since its inception in 1967. That’s almost 45 years ago. But the Amul girl is still as relevant

as ever.

The Amul girl was the brainchild of Sylvester daCunha, the managing director of the

advertising agency AS. The ads were designed as a series of hoardings with designs relating

to day-to-day issues. The beauty of these ads is that instead of using a celebrity, a character

was created from scratch and associations built around it. The brand recall for the Amul girl

is phenomenal across India today. And the biggest reason for this is the topical nature of the

ads.

The Amul ads have witty one-liners which capture relevant events that have caught the

fancy of the nation. This instantly creates a connect with the populace and helps them to

identify with the brand in a surrogate manner. Apart from this, the humour is incisive and

funny. The style of drawing is also very distinctive, and there is instant recognition of the

brand without even needing to take a close look. All in all, the Amul girl has become iconic in

Indian advertising.

Page 21: Milk Advertisement

While today’s advertising revolves around creating stylistic ads and abounds in celebrity

endorsements, Amul is like a breath of fresh air that has held onto its roots and yet

managed to stay relevant over the years. Kudos to this very Indian brand!

Rediffusion-Y&R wins Paras DairyBy Anushree Bhattacharyya, afaqs!, New Delhi, October 12, 2011 

Section: News Category: Advertising

The agency has won the account through a multi-agency pitch that started in August this year, and witnessed participation from agencies like Grey, Crayons, and a few more.

Rediffusion-Y&R has bagged the creative, as well as the media duties of the popular dairy brand Paras Dairy.

The account was won through a multi-agency pitch that started in August this year, in New Delhi, and

witnessed participation from other agencies lie Grey, Crayons, and a few more. The size of the account,

however, could not be obtained at the time of filing this report.

Prior to this, Percept/H was the incumbent agency on the business.

Confirming the development to afaqs!, Gajinder Singh, managing partner, Paras Dairy, says, "We have

assigned the creative and media duties to Rediffusion-Y&R and TME, based on their credentials of handling

large businesses, as well as the strategic and creative prowess shown by the current team."

So, while Rediffusion will handle the creative part of the business, the media duties will be managed by its

sister agency, TME.

Abhik Santara, vice-president, Rediffusion-Y&R, says, "We will develop the brand architecture from scratch, as

well as work on the mother brand and all sub-brands, both existing, as well as new brands the company will

launch in the future."

Page 22: Milk Advertisement

For the record, Paras Dairy was established by Ved Ram & Sons, in partnership, in April 1986. The first unit of

the dairy business was established in 1987, under the company name VRS Foods. The dairy company

currently sells over 2,50,000 litres of milk per day in Delhi Metro. The dairy company has created a network of

5,000 villages as collection centres for milk across western Uttar Pradesh, Haryana, Rajasthan, Maharashtra

and Gujarat.

NEXT STORY

Devesh Rai calls it a day in Mail TodayTags: Rediffusion-Y&R, Paras Dairy, Gajinder Singh, Abhik Santara, Percept/H, TME

Some reviewing, some innovation – the dairy brand has to do this to stay ahead of the competition.

In its signature style, Amul paid tributes to Verghese Kurien, its founder, saying, “Thank you for giving us Hausla, Pragati and Anand”, punning on how his vision gave all involved courage, progress and happiness. The legendary founder of the almost 50-year-old Amul ensured that the brand was always larger than the person who created it. What lies ahead for the brand that is nearly twice the size of its nearest competitor and has great brand recall? It cannot afford to rest on its laurels, and much needs to be done if it is to maintain its premier position, say observers.

“Kurien built Amul as an organisation but there is no single hero who built the Amul brand. Today it is one of those brands which is not going to be harmed from the outside but can get weakened from the inside,” observes Anand Halve of chlorophyll, a brand consultancy.

While Kurien may have built the organisation from the outside, nurturing the brand and maintaining its dominant position in the foods business is going to be imperative.

It must move with the times and be careful while getting into new categories. After all, its foray into pizzas and chocolates has not been that successful compared to the rest of its dairy portfolio. Keeping this in mind it must innovate quickly and successfully to keep abreast of competitors.

It may face certain hurdles in the future. “There were concerns about the Amul brand when Kurien had stepped down in the company. But the company has been professionally managed and the brand continues to be strong. However, Amul cannot afford to get complacent because of its stature and should think of becoming a global entity if it has to defend itself in the domestic market,” claims Harminder Sahni, Managing Director, Wazir Advisors.

Page 23: Milk Advertisement

Agrees Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, “Amul has reached deep into the hearts and minds of Indian consumers and it is time it reached out to the hearts and minds of international consumers.”

But there are others who believe that Amul, in spite of its greatness, has done little to re-invent itself with the changing times and continues to remain primarily a ‘cheese and butter’ company.

Raghu Viswanath, Managing Director, Vertebrand Management Consulting, says, “Amul has not re-invented itself and has remained more of a butter and cheese company. It has not done enough to leverage the new categories such as milk and ice cream and even curds where it has just managed to stay afloat with its competitors. It needs to exploit the brand beyond just butter and cheese. While it may continue to record profits and revenues as a company, the brand has lost its sheen over the years and needs to rejuvenate to keep up with the changing times.”

Amul needs to keep track of consumers’ changing preferences as and when it decides to enter new categories. As Halve of chlorophyll warns, “Just like Nokia, which, in spite of being a strong brand, lost out since it could not see consumer preference moving towards smartphones, Amul should not lose sight of the changing times. It may be sitting on a Rs 12,000-crore gold mine but it must have a product range which is going to be exciting for the new consumer.’’

But the rub is that at the same time Amul cannot afford to move away from its core competency of pure milk products catering to the masses. “Getting into pizza was a wrong move as the basic product was bread and not cheese. The same failure was faced by Cadbury when it tried to launch biscuits,” observes Halve.

There could be other challenges such as sourcing and keeping up with the expectations of modern trade. As Damodar Mall, Director, Food Strategy, Future Group, says: “Amul could face challenges on the sourcing side as it is dependent on families to get milk. These families may not like to continue in the same line of business as incomes grow and then Amul might have to look at bigger aggregators to source its milk. Also, the brand may have enough awareness and pull, but it has to look at forging a better working relationship with retailers and have more SKUs.”

In fact, Amul has similar concerns. R. S. Sodhi, Managing Director, Amul, says, “Back-end milk procurement will be a challenge as the next generation may not like to continue with dairy farming. We have also increased procurement prices as an incentive.”

Amul believes it is doing its best to appeal to the youth and make itself contemporary. As Sodhi says, “In the past few years we have been making constant efforts to target youngsters with products such as Amul Cool. Associating with the World Cup and Olympics and sponsoring programmes such as Master Chef is all about connecting with the youth. After all, we are competing with the MNCs and domestic players and have to keep ahead with products which have different

Page 24: Milk Advertisement

attributes.” Amul has pioneered new products such as frozen yogurt and probiotic ice cream and this should re-affirm its position as an innovator and market leader.

Keywords: Amul paid tributes to Verghese Kurien, Amul needs to keep track of consumers’ changing preferences

Title: A STUDY ON HOW TO INCREASE THE SALE OF AMUL ICE CREAM THROUGH DIFFERENT PROMOTIONAL TOOLS Objectives:“The objective of this dissertation is to study the different promotional tools through which the sale of amul ice cream can be increased. The promotional tools can be affected by various factors.Some of the factors are:1. Why the retailer is interested in keeping the ice cream:In India the consumption of the ice cream is very less compare to USA and even to Pakistan. So hare in India there is sufficient scope for the ice cream companies to expand their business. Now the consumer are moving towards the branded companies .so retailers want to become the part of this growing fields and the margin is also very good in comparison to other products like cold drinks, biscuit , chocolates etc.2. Why the retailer is not interested in keeping the ice cream:Some retailers were not interested in keeping the ice cream due to many problems associated with the ice cream like first it needs a big amount of investment, so the retailer don’t  want to invest their own money to keep the ice cream.Secondly the retailers are not ready to take risk, they think that I will buy the deep freezer and the sale of ice cream will not increase then what will I do? Or if your freezer will not work then is your service id good enough to replace the ice cream? Some retailers don’t have sufficient space for keeping the deep freezer.Some retailers have very serious electricity problem in their area like Seelampur and BrahampuriSome retailers are very much satisfied with their existing business and they do not want to expand it like some medical shops in Brahampuri and Kabir nagar.3. What type of factors is able to influence the retailer to sell the ice cream?The first and the most important factor is,  all the retailers do not want to invest their money in purchasing the deep freezer and if any company is providing the deep freezer on security basis or on the installment then the retailers will definitely go for the same company irrespective of the brand name.Second factor is the margin provided by the company. Here the amul is the leader in the branded companies. Amul is providing the best margin of 21.25%.The third factor is the product range .if the product range is large then the retailers will definitely go for that company. Here also amul is providing the best range.The fourth factor is the after sales service. This is one of the most important factor which influence the retailers to keep the ice cream,. Here I think all the companies are same and amul here also trying to lead to other companies. Yes, some retailers are unsatisfied with amul, but most of the retailers are satisfied.4. Identifying the area of improvement.Here the main area of improvement for amul is the after sales service. Amul should concentrate more on the existing customer than opening a new outlet. Because if existing customer are satisfied than and only than the company can grow.I think the ratio of our resources using should be 70:30 means 70% we should used our resources on satisfying the existing and 30% we should use on opening the new outlet.If the outlet is very good then we should give some relaxed schemes to the retailer because he is going to give us a very good sale and help in creating the good brand image. If we will not give them good schemes than other companies will give them and that will be loss to our company. so the company should adopted the flexible schemes. 5. How can the sale of the ice-cream are increased.

a. Quality: this is the major aspect of consideration because without quality nothing will work. We can sell

the poor quality product only once with good promotion activities but after that no body will buy the poor

Page 25: Milk Advertisement

quality product. So promotion, marketing, advertising all these are secondary .the primary thing is only

the quality .so we can increase the sale of the ice cream if we offer the better quality.

b. Best schemes: The retailer always want something free with the product he buys, Some retailers asked

to us “sir what are you giving on purchase of your deep freezer”. We said “sir this is already reduced

price “. But they said  “no we want some thing free “.This indicates that the retailers want something free whether we are giving the deep freezer at higher rates. So we should increase the price of deep freezer to some extent and give the free ice cream of that amount. that will work definitely.One thing we wand to add here that the person who book the deep freezer should have some flexibility in the price range, because many retailers bargain with us and said that sir reduce the price of the deep freezer or cut your margin (commission) etc.one retailer ready to purchased the deep freezer of 400lt but he wanted to give only Rs18000 instead of Rs20, 677 He may be thinking that the sales man receive some commission on the sale of freezer. Because sales persons don’t have any flexibility in their hand so it is very difficult to convince such type of retailers. If the sales person have flexibility in their hand then the sale if ice cream will definitely increase.

a. We should provide tailor made hoardings to the retailers because Advertising is the most important.

There is the threat of loosing the outlet due to not providing the hoarding of the retailer’s choice. Some

retailers want the big hoardings.But one thing here in important that we should not provide every retailers the big hoarding because the small retailers cannot afford the big boards expense. so we should provide the big hoarding to only those retailers who are capable to sell the ice cream of Rs 2500-Rs3000 daily. We should not loose the big retailers due to the hoardings.By proper advertising we can increase the sale of ice cream.

a. By emphasizing on the posh cart:The area such as seelampur in which we have less outlet because in these areas the customer are not the brand loyal in case of the ice cream. So instead of trying more on opening the outlet, we should emphasizing on push carts, which will be beneficial. After analyzing the sale and data collected regarding the sale of the ice cream we can convince the retailer to keep the ice cream. so in these types of areas our emphasis should be more on the push carts so we can increase the sale of the ice cream.

a. After sales service:We can increase the sale of the ice cream by satisfying the existing retailers. Because if they are satisfied than they will sell our ice cream and tell other relatives retailers to sell the ice cream of the same brand.One incident I want to share here is there was a retailer in shahadra, he was not a satisfied retailer .He hanged the cream bell poster but not selling the ice cream of cream bell because he was the exclusive outlet of Amul. Cream bell is providing him only posters because cream bell found the loop hole in the Amul service .We want to say that if this retailer will stop selling the amul ice cream then he will definitely keep the cream bell ice cream. This is the future policies of cream bell .So amul should satisfying their existing retailer. Then and only then Amul is able to grow.

a. We should give some reward either in the monetary terms or in the recognition term to our good

retailers. We should give the target to our retailers and after achieving the target we should give them

gift, rewards etc. This also increases the sale of ice cream.6) What type of services are necessary for satisfying the retailers and customers:

a. The deep freezers should be delivering within one or two days after the clearance of payment by the

retailers.

b. Hoarding should be providing within one week after delivery of deep freezer.

c. Price list and other posters should be deliver to the retailer with the first supply of the ice cream A the

price list is very necessary without this it is very difficult to sell the ice cream.

d. If painting is committed by the sales person then it should be done within the two or three weeks. There

was a retailer in shahadra whose shop was painted after two years.

e. The sales persons should tell the retailer about all the new schemes and new product launched by the

company. 

Page 26: Milk Advertisement

f) As ice cream  as perishable product  so if there is a electricity problem in the area then the distributor should do all the arrangement regarding the ice cream as ice cream should not melt at the shop.7) Determining the type of offer most requested for /needed by the retailer:

a. Retailer want good margin.

b. Retailers want the hoarding on time.

c. Retailers want better after sales service.8) Identify the important characteristics that make an ice cream maker attractive to the retailers:a) By increase the product range.b) By introduce the better quality of ice cream.c) By introduce the cheap ice cream.

a. By giving the better after sales service.

b. By making the distribution channel strong.

c. By providing the deep freezer according to the retailers need. We means we should provide the deep

freezer of 75Lt.to the small shops who cannot invest the large sum of money but want sell the ice cream.

This is also another way to penetrate the market to the deepest.  SUGGESTIONS AND LIMITATION”  

1. 1) We should do aggressive marketing as to stop the growth of the new growing companies

like cream bell, dairy fun etc.Amul is very strong brand name .If amul want then they can cover more than 50 % of the total market share. The need is to do the aggressive marketing. There are now many companies try to penetrate the market like cream bell dairy fun. I amul do the aggressive marketing then the growth of these companies can stop or minimize. Amul should do this things as these companies should not give the good fight to amul.

1. 2) Amul should give the regular advertise.Amul do very less advertising on T.V. and radio. Advertising on TV and radio leaves their impact on the consumer’s mind. If we do the good advertisement on electronics media than the sale of amul could be double. Because due to advertisement the consumer is able to know about the products and the current schemes running. We can see the impact of the advertisement on the “Dandi salt” .Due to the heavy advertisement the “Dandi salt” did business of Rs 50cr in just 6 months.Amul should also give their advertisement on the Bus stand and behind buses. We think that will work definitely.

1. 3) Should give more concentrate on pushcart.Amul should give the more concentrate on the pushcart in those areas where the amul outlets are very less or the sale of the ice cream is very less. Actually the pushcart implies the impulse buying .The company should try to increase the impulse buying behavior of the consumer by opening the more outlets or the pushcart in the area where the consumer is not interested in knowing the brand of ice cream.  . In the area like seelampur where the 90% sale of ice cream is through the impulse buying .The more and more push carts will definitely work and once the consumer is familiar with the brand name then we can open our outlets by convince the retailers by showing the data related to the sale of ice cream through push carts. So amul should do the marketing step by step.

1. 4) Should give the rewards to the good retailers.Amul should give the rewards to the good retailers who are giving the good sale to the amul. The rewards could be in the monetary terms or in the recognition term .The big retailers want the recognition they don’t want the monetary rewards. But the small retailers those are not giving the good sale of ice cream, amul can give the achievable targets and after achieving the targets amul should give then the reward in term of the gifts. By adopting these policies we can capture more and more market share of ice creams.

1. 5) Should open exclusive outlets at shopping malls and good restaurant.Amul should open their exclusive retail outlets at the shopping malls and restaurants. Where amul should sale all the products manufactured by amul. Actually these type of retail outlets now a days are very popular The public now a days go to these malls very frequently for seeing the movies and for shopping .If there will the amul exclusive outlets then this helps in strengthen the Amul Brand name. Which is very important now days? After opening these types of the outlet the sale of the amul ice cream will increase definitely.

Page 27: Milk Advertisement

1. 6) Should give on installments not on security.If the good retailer wants the deep freezer on the installments then amul should do the arrangements for that. Amul should make such types of policies in which the whole amount will be recover in two or three installments and not more than that. Because in the policies of the more than tree installment if the retailer will not able to sell the ice cream then it is difficult to collect the money. We have seen the many retailers who are ready to give the whole amount in two or tree parts. In these cases the retailers will try to sell the ice cream at their best.Amul should not give the deep freezer on security to the retailers because on security basis the retailer is not committed to sell the ice cream. He think that if he will not be able to sell the ice cream then his security will return and he will be out of danger. This thinking of the retailer will be dangerous to the company because in the case of the security the 70% of the investment is of the company and only the 30% investment is of the retailer and which is refundable also. If the retailer demands his money back then the whole loss will be in the side of the company. Here the main thing is that in the case of the security the sale of the ice cream will not increase due to the less commitment of the retailers.

1. 7) Should celebrate the Amul ice cream day.Amul should celebrate the amul day on which the amul should give the best offers to consumers and retailers. On this day amul should launch the new products and can give the discount to the public.

1. 8) Should making some policies regarding the replacement of the ice cream.The retailers are in the threat that if there will be the electricity problem then whether the ice cream will be replaced by the company or not. The distributor should do some arrangement for the ice cream if there is the electricity problem in the area, at some terms and conditions.That will strengthen the brand name and will help in increasing the market share. By meeting with the some retailers we found that the service of quality walls is not so good. and the many retailers are in the loss due to melting the ice cream and the kwality walls did not replace the ice cream so they stooped the sale of the ice cream .So the ultimate loss goes to the company not to the retailers. ............................................................................................................................................................................................................... The above article was extracted from dissertations in Marketing, Finance, Human Resources, Strategy, Information Systems by the students from Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

For more information on Skyline College or the MBA, BBA programmes please CLICK HERE. For MBA, BBA Admission queries please CLICK HERE   , & Also Skyline blog .