product mix amul
DESCRIPTION
Product Mix of Amul IndiaTRANSCRIPT
Product Mix of Amul
Himanshu Ahire 13
Dhiraj Kakati 05
Executive Full Time PGDM ( 2009-2010 )
Trimester 2
Symbiosis Institute of Management Studies
Symbol of “AMUL”(Anand Milk Union Ltd.) is a ring of four hands, which are coordinated with each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer.It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as
Objective 4
Introduction 5
Product 7
MARKETING OBJECTIVES 12
Product STRATEGIES 12
Product 12
Place 12
Price 13
Promotion 13
The different product for different people 14
Amul Product Mix 15
Amul Product Portfolio 15
Product-Width 18
Product-length 18
Product Depth 18
Line stretching 22
Conclusion 22
OBJECTIVE
To understand the product mix strategy of Amul .
To correlate the findings with the help of the theoretical concepts that we have been taught during this
semester on Marketing Management.
To gain an insight on the product range offered by Amul.
INTRODUCTION
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per
day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT
CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.
The brand name AMUL means “AMULYA”. This word derived from the Sanskrit word “AMULYA”
which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul
Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2009).
Today Amul is a symbol of many things of the high-quality products sold at reasonable prices, of the
genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND
PATTERN”).
In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of
milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy
limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from
the Kaira district. This system leads to exploitation of poor and illiterate farmers by the private traders. The
traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single
word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively
appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel
advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying
milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-
operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He
advised the farmers to form a society for collection of the milk.
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is
managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).
AMUL is based in Anand, Gujarat and has been a sterling 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. It is also the world's biggest vegetarian cheese brand.
Members 12 district cooperative milk producers' UnionNo. of Producer Members 2.36 millionNo. of Village Societies 11,333Total Milk handling capacity 6.9 million litres per dayMilk collection (Total – 2003-04) 1.81 billion litresMilk collection (Daily Average 2003-04) 4.97 million litresMilk Drying Capacity 511 metric Tons per dayCattle feed manufacturing Capacity 2340 MTs per day
PRODUCT
“A product is anything that can be offered to a market for attention , acquisition , use, or
consumption that might satisfy a want or need “
A product is anything that satisfies a need or wants and can be offered in the exchange. A product can be goods, service or idea. Without product there is no marketing. This includes product variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its product very carefully so that the consumer gets only good quality products.
RAW MILK
Dried
Skimmed Milk Powder
Packaged Milk
Ice cream
Beverages
Condensed
Ghee
Butter Cream
pasteurization
List of Products Marketed
Bread spreads
Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter
Cheese Range
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and
Tinned
Utterly Delicious Pizza
Amul Emmental Cheese
Desserts
Amul Shrikhand (Mango, Saffron, Almond
Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
Fresh Milk
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Ganthiya
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
For Cooking
Amul Pure Ghee Sagar Pure Ghee
Amul Cow Ghee
Amul Malai Paneer
Mithai Mate
Pro-biotic Dahi
Masti Dahi
Utterly Delicious Pizza
Powder Milk
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 (6 months above)
Amulspray Infant Milk Food
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Amul Ice creams
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi
Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond)
Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
Millennium Ice cream (Cheese with Almonds, Dates with
Honey)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi
Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista
Kulfi)
Cool Candies (Orange, Mango)
Cassatta
Tricone Cones (Butterscotch, Chocolate)
Megabite Almond Cone
Frostik - 3 layer chocolate Bar
Fundoo Range - exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla,
Banana, Mango, Pineapple)
Health Isabcool
Chocolate & Confectionery
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage• Nutramul Malted Milk Food
Milk Drink• Amul Kool Flavoured Milk
Health Beverage• Amul Shakti White Milk Food
Ready to Serve Soups• Masti Tomato Soup
Masti Hot & Sour Soup
MARKETING OBJECTIVES
•Identify & cater to emerging markets all over India
•Create awareness about the brand name and increase customer loyalty.
•Tackle the problem of imitation of design.
•Increase retailer satisfaction by providing better margins.
PRODUCT STRATEGIES
Product
•Create awareness about its different brands thereby enabling the customer to differentiate between its
various brands.
•Copy-write the packaging design to preserve the distinguishing identity barring competitors from
imitating the same.
•Introduction of larger volume pouches in line with economy packs to provide large scale buyers price
benefits.
•Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul
Tazaa, rectangular shaped for Amul Gold, etc.
Place
Place refers to marketing activities that make products available to consumers at the right time in a
convenient location. It is the process of moving products from the producer to the consumer, which may
involve several steps and the participation of multiple.
AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF
handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the
disbursement of product to the various marketing channels.
Price
It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering.
Pricing and product image are closely related. Customers will pay a higher price for well – known, well –
regarded products, partly because of the image created through advertising and other promotions. This
includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided
by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in
the market and accordingly decides the prices of AMUL products.
However, the price is inclusive of several elements like,
•Cost of milk.
• Labour cost.
•Processing cost.
•Packaging cost.
•Advertising cost.
•Transportation cost.
•Sales promotion costs.
•Taxes etc.
The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling
price of milk and milk products.
Promotion
Place refers to marketing activities used to communicate positive, information about an organization, its
products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of
techniques including advertisement, sale promotion, public relation and personal selling that are used to
communicate with customers and potential customers.
AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for
advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the
creative basis attract the customer more.
THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE
Amul never forgot its “primary customer”
Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate)
Product for youth
Amul launched Chocolate milk under brand name of ‘Amul Kool Koko’ targeting the youth.
Product for diabetic people
India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
Product for the health conscious
Amul Launched “low fat, low cholesterol bread spreads”
Product for the price sensitive India
Low Priced Amul Ice Creams and affordable ‘sagar’ whitener
Product for the urban class
Amul launched emmental, gouda and pizza mozzarella cheese
AMUL PRODUCT MIX
Amul Product Portfolio
Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods
Examples
Durable Goods :-Milk Powders,Ready to Serve Soups
Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams
Dairy Non Dairy
Cheese
Products
Bread Spreads
Milk Drinks &
Desserts
Fresh Milk
Instant Food
Snacks
Veg. Oils
Prod
uct M
ix L
engt
h
Cooking Health Drink
Amul/SagarPureGhee Nutramul
AmulMalaiPaneer AmulShaktiHealthFoodDrink
MithaiMate
Pro‐bioticDahi
MastiDahi
UtterlyDeliciousPizza
Bread Spreads Cheese Desserts
Butter Shredded Pizza Cheese. AMUL Shrikhand (Mango, Saffron, Almond Pistachio,
Cardamom)
Low Fat Bread Spread. Emmental Cheese. AMUL Amrakhand.
Cooking Butter. Gouda Cheese. AMUL Mithaee Gulabjamuns.
Malai Paneer (cottage cheese) Frozen and Tinned.
AMUL Mithaee Gulabjamuns Mix.
Utterly Delicious Pizza. AMUL Mithaee Kulfi Mix.
Product Mix -Width
Table 3
Prod
uct M
ix L
engt
hMilk Drinks Powder Milk Fresh Milk
Amul Kool Millk Shaake AmulSprayInfantMilkFood
AmulFreshMilk
Amul Kool AmulInstantFullCreamMilk
AmulGoldMilk
AmulKoolCafe SagarSkimmedMilkPowder
AmulTaazaDoubleTonedMilk
KoolKoko SagarTeaCoffeeWhitener
AmulLiteSlimandTrimMilk
NutramulEnergyDrink AmulyaDairyWhitener AmulFreshCream
AmulKoolFlavouredBottledMilk
AmulShaktiTonedMilk
AmulKoolFlavouredTetraPack
AmulCalci+
AmulMastiSpicedButtermilk
AmulButtermilk
AmulLassee
AmulKoolThandai
Product-Width
The width of a product mix refers to the total number of items in the mix.
Example: The total number of items are 8. ( bread spreads , cheese , desert, cooking,health drink, milk
drinks,powder milk & fresh milk
Product-length
The length of a product mix refers to the total number of items in the mix.
Example:
The total Length of Amul’s Product mix is 42
The Total width of Amul’s Product mix is 8 ( No of lines)
Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6
Product Depth
The depth of a product mix refers to how many variants are offered of each product in the line
Amul’s Product Depth
Name of Product Variants Price
Amul Butter 100g Pack Rs. 25
Amul Butter 500g Pack Rs. 122
Delicious Table Margarine 100g Pack Rs. 13
Delicious Table Margarine 500g Pack Rs. 60
A m u l L i t e L o w f a t
Breadspread 200g Tub Rs. 32
Name of Product Variants Price
Amul Cheese 400g Tin (EOE) Rs. 117
Amul Cheese Slices 200g Pack Rs. 77
Amul Cheese Chiplets 200g Pack Rs. 66
Amul Cheese 1kg Block Rs. 233
Amul Cheese Spread 200g Tub Rs. 50
Amul Pizza Cheese 200g Pack Rs. 55
Amul Emmental Cheese 400g Pack Rs. 160
Amul Gouda Cheese 250 g Rs. 115
Amul Gouda Cheese 1 kg Rs. 440
Amul Malai Paneer 200g Dice Pack Rs. 36
Amul/Sagar Pure Ghee 1 Litre Tin Rs. 265
Amul/Sagar Pure Ghee 500ml Pouch Rs. 125
Amul/Sagar Pure Ghee 2 Litre Tin Rs. 495
Amul/Sagar Pure Ghee 5 Litre Tin Rs. 1,225
Amul Pure Ghee 1 Ltr Refill Rs. 260
Amul/Sagar Pure Ghee 1 Ltr Pouch Rs. 242
Amul Shrikhand 500g cup Elaichi Rs. 53
Amul Shrikhand 500g cup Mango Rs. 55
Amul Shrikhand 500g cup Kesar Rs. 66
Name of Product Variants Price
Amul Shrikhand 500 g Badam Pista Rs. 61
Amul Mithaee Gulabjamun 1kg Tin Rs. 115
Amul Mithaee Gulabjamun 500g Tin Rs. 64
Nutramul 500g Refill Rs. 110
Amul Chocolates 35g Milk Rs. 15
Amul Chocolates 35g Fruit & Nut Rs. 16
Amul Almondbar 35g Rs. 15
Amul Chocozoo 232g Tin Rs. 125
Amul Chocozoo Tub 500 g Rs. 180
Amul Taaza Double Toned
Milk 1 Litre Tetra Rs. 35
Amul Taaza Double Tone
Milk 200 ml Tetra Rs. 9
Amul Tazza Toned Milk -
Nothern Eastern States 1 Litre Tetra Rs. 38
Amul Gold Milk 1 Litre Tetra Rs. 39
Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40
Amul CALCI + high calcium
milk 1 Litre Brik Rs. 42
M i t h a i m a t e S w e e t e n e d
Condensed Milk 400g Can Rs. 58
Name of Product Variants Price
Amulspray IMF 500 g Pouch Rs. 110
Amulspray IMF 500g Refill Rs. 111
Amulspray IMF 500g Tin Rs. 115
Amulspray IMF 1 kg Pouch Rs. 202
Amulspray IMF 1 kg Tin Rs. 222
Sagar Skimmed Milk Powder 500g Pouch Rs. 110
Amulya Dairy Whitener 500g Pouch Rs. 113
Amulya Dairy Whitener 500g Refill Rs. 114
Amulya Dairy Whitener 1 kg Pouch Rs. 227
Amul Shakti Health Food
Drink (Kesa Almond) 500g Refill Rs. 115
Amul Kool (Kesar, Elaichi,
Rose) 200ml Bottle Rs. 12
Amul Kool (Kesar, Elaichi,
Chocolate) 200ml Tetra Rs. 12
Amul Kool Kesar 250 ml can Rs. 25
Amul Kool Cafe 200 ml Glass Bottle Rs. 15
Amul Kool Cafe 250 ml Can Rs. 22
Amul Kool Cafe 200 ml Tetra Brik Rs. 15
Amul Kool Koko 250 ml Can Rs. 22
Amul Kool Millk Shaake
( M a n g o , S t r a w b e r r y &
Badam)
220 ml Can Rs. 22
Name of Product Variants Price
Amul Kool Millk Shaake
(Mango & Strawberry) 180 ml Tetra Pack Rs. 15
Amul Fresh Cream 200 ml Tetra Brik Rs. 30
Amul Fresh Cream 1 Lit Tetra Brik Rs. 113
Amul Masti Spiced Butter
milk 200ml Tetra Brik Rs. 10
Amul Masti Spiced Butter
milk 1 Litre Tetra Brick Rs. 35
Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12
Amul Basundi l Ltr Tetra Brick Rs. 103
Amul Mithai mate 400 g EOE can Rs. 58
Line stretching
Every company’s product line covers a certain part of the total possible range. Line stretching occurs
when a company lengthens its product line beyond its current range. The company can stretch its line
down market, up-market or both ways.
Example : Amul is now aggressively adopting the down market stretch by introducing ( CHHOTA
AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income
group.)
Amul has been introducing products with consistent value addition but never left the core philosophy of
“Providing milk at a basic, affordable price”
Conclusion
This summarizes our research work on Amul’s Product Mix. There are various other strengths of Amul’s
marketing but we have only brought into context the above topic.