term paper 301
TRANSCRIPT
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THE UNIVERSITY OF
BURDWAN
DIRECTORATE OF DISTANCE EDUCATION
Paper : Marketing Management (MBD-301)
SOFIUL ISLAM
Enrolment No.: DDE/MBA/Jan2010/36Session: 2010-2012
:: SUPERVISOR ::
DR. PRADIP KR. MALLIKTHE UNIVERSITY OF BURDWAN
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CONTENTS
1. Declaration
2. Acknowledgement
3. History of Amul
4. Product Line
5. Market Segmentation
6. Market Segmentation of Amul CHOCO CRUNCH
7. The Process-Data Model of Market Segmentation
8. Marketing Targeting
9. Marketing Mix
10.Pricing Strategy
11.Promotional Strategy
12.Bibliography
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DECLARATION
SAFIUL ISLAM
(Signature)
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ACKNOWLEDGEMENT
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HISTORY OF AMUL
Amul was formally registered onDecember 14, 1946. The
brand name Amul, sourced from the sanskrit word Amoolya,
means priceless. It was suggested by a quality control expert in
Anand. Some cite the origin as an acronym to (Anand Milk
Union Limited). The Amul revolution was started as awareness
among the farmers. It grew and matured into a protest movement
that was channeled towards economic prosperity. It is a dairy
cooperative movement 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 2.41 million milk producers in Gujarat, India[1].
It is based in Anand town of 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, which has made India one of the
largest milk producers in the world. It is also the world's biggest
vegetarian cheese brand.
Amul's product range includes milk powders, milk, butter,
ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer,
gulab jamuns, 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. Amul is the largest food brand in India with
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an annual turnover of US $868 million (2005-06). Currently
Amul has 2.41 million producer members with milk collectionaverage of 5.08 million litres/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
had not succeeded, but now it has fresh plans of flooding the
Japanese markets. Other potential markets being consideredinclude Sri Lanka.
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PRODUCT LINE
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Market Segmentation
Market segmentation is the process in marketing of
grouping a market (i.e. customers) into smaller subgroups. These
markets are often termed niche markets or specialty markets.
These segments are fairly homogeneous in their attitudes about
certain variables. Because of this intra-group similarity, they are
likely to respond somewhat similarly to a given marketing
strategy. That is, they are likely to have similar feeling and ideas
about a marketing mix comprised of a given product or service,
sold at a given price, distributed in a certain way, and promoted
in a certain way.
The purpose of segmentation is to identify and target prime
customer groups (eg the 20% that account for 80% of your sales)
so that you get the maximum return from a limited marketing
budget (the most bang for your buck).
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Market Segmentation of
Amul CHOCO CRUNCH
Homogeneity within the segment
Heterogeneity between segments
Segments are measurable and identifiable
Segments are accessible and actionable Segment is large enough to be profitable.....
These criteria can be summarized by the word SADAM:
S -Substantial: the segment has to be large and profitableenough
A -Accessible: it must be possible to reach it efficiently D- Differential: it must respond differently to a different
marketing mix
A -Actionable: you must have a product for this segment
M -Measurable: size and purchasing power can bemeasured .
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The Process-Data Model of
Marketing Segmentation
This model consists of the three main activities:
segmenting, targeting and positioning. It shows the chronological
dependency of the different activities. On the right side of the
model the concepts resulting from the activities are showed. The
arrows show that one concept results from one or more previousconcepts; the concept can not be made when the previous
activities have not taken place. Below the three main activities
are shortly described as well as their role as a basis for the next
step or their dependency on the previous step.
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MARKETING TARGETING
After the most attractive segments are selected, a company
should not directly start targeting all these segments. The
attractiveness of the segments is also depending on other
important factors. In the main activity of defining a target
market, four sub activities are given which are the bases for
deciding on which segments will actually be targeted.
AGE GROUP TARGETED
The four sub activities performed by Amul while targeting are:-
Defining the abilities of the product and resources needed to
enter a market
Analyzing competitors on their resources and skills
Considering the companys abilities compared to the
competitors
Deciding on the actual target markets.
The first three sub activities are described at the topic
competitor analysis. The last sub activity of deciding on the
actual target market is an analysis of the information made
available when comparing the companies abilities to the
competitors. This analysis leads to a list of segments which are
most attractive to target and have a good chance of leading to a
profitable market share.
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MARKETING MIX
The major marketing management decisions can be
classified in one of the following four categories:
PRODUCT
PRICE
PLACE
PROMOTION
These variables are known as the marketing mix or the 4
P's of marketing. They are the variables that marketing managers
can control in order to best satisfy customers in the target market.
The marketing mix is portrayed in the following diagram:
The Marketing Mix
The firm attempts to generate a positive response in the
target market by blending these four marketing mix variables in
an optimal manner. Now, lets see the marketing mix for new
launch of AMULS CHOCO CRUNH i.e., their products, price,
place and promotion.
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PRICING STRATEGY
Amuls new launch Choco Crunch Pricing is based on
three types:-
1) Product is lasting distinctiveness from competitor's product.
here we can assume a) The product has low price elasticity. b)
The product has low cross elasticity. c) The demand of the
product will rise.
2) Products have parishable distinctiveness from competitor's
product, assuming the product features are medium
distinctiveness.
3) Products have little distinctiveness from competitor's product.
assuming that: a) The product has high price elasticity. b) The
product has some cross elasticity. c) No expectation that demand
of the product will rise.
Price is the factor that beats out all other choclates in the
competition. Such as Cadbury. If you have been you must have
seen that Amul and Cadbury frenchise are right next to each
other. But if given the choice people would prefer Amul products
and not Cadbury as the prices of Amul product is quite cheap as
compared to their competitors like Cadbury and this has worked
as an advantage for Amul since most of the customers prefer
amul product over cadburys product, due to this price factor.
The prices for an average milk product ranges between Rs. 20
and Rs. 35.
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PROMOTIONAL STRATEGY
A successful product or service means nothing unless the
benefit of such a service can be communicated clearly to the
target market. An organisations promotional strategy can consist
of:
Advertising: Is any non personal paid form of communication
using any form of mass media?
Public relations: Involves developing positive relationships with
the organisation media public. The art of good public relations is
not only to obtain favorable publicity within the media, but it is
also involves being able to handle successfully negative
attention.
Sales promotion: Commonly used to obtain an increase in sales
short term. Could involve using money off coupons or special
offers.
Promotion Budget
Cost sheet
** Schedule A
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Above A Pull Strategy (Left) Push Strategy (Right)
Communication by the manufacturer is not only directed
towards consumers to create demand.
A push strategy is where the manufacturer concentrates
some of their marketing effort on promoting their product to
retailers to convince them to stock the product. A combination of
promotional mix strategies are used at this stage aimed at the
retailer including personal selling, and direct mail. The product is
pushed onto the retailer, hence the name.
A pull strategy is based around the manufacturer
promoting their product amongst the target market to create
demand. Consumers pull the product through the distribution
channel forcing the wholesaler and retailer to stock it, hence the
name pull strategy. Organisations tend to use both push and pull
strategies to create demand from retailers and consumers.
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PRODUCT STRATEGY
A starting point is to define and understand the company's
marketplace, customer needs and competition. Based on this
assessment, the company's primary competitive dimensions can
be selected and a strategy defined to develop and enhance these
competitive dimensions. Once this is done, product and process
design based on IPD can be oriented to implement this strategy.
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POSITIONING STRATEGY
When the list of target markets is made, a company might
want to start on deciding on a good marketing of a product. But
an important step before developing the marketing mix is
deciding on how to create an identity or image of the product in
the mind of the customer. Every segment is different from the
others, so different customers with different ideas of what they
expect from the product.
The Process Of Positioning The Product Of A Company:
1. Identifies the differential advantages in each segment
2. Decides on a different positioning concept for each of these
segments. This process is described at the topic positioning, here
different concepts of positioning are given.
The process-data model shows the concepts resulting from the
different activities before and within positioning. The model
shows how the predefined concepts are the basis for the
positioning statement. The analyses done of the market,
competitors and abilities of the company are necessary to create a
good positioning statement.
When the positioning statement is created, one can start on
creating the marketing mix.
B2C and B2B
The process described above can be used for both
business-to-customer as well as business-to-business marketing.
Although most variables used in segmenting the market are
based on customer characteristics, business characteristics can be
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described using the variables which are not depending on the
type of buyer. There are however methods for creating apositioning statement for both B2C and B2B segments. One of
these methods is MIPS: a method for managing industrial
positioning strategies by Muhlbacher, Dreher an Gabriel-Ritter
(1994).
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DISTRIBUTION STRATEGY
In order to ensure a continuous & efficient distribution, an
approximate figure has to be arrived at for getting the initial
orders & to ensure adequate supply so that any delays or
resultant losses are avoided. For this purpose, the company
adopted the consumer response hierarchy model so that, it is
ensured that all the company enters the market with a bang
avoiding any problems of late or inadequate supplies. This is
highly essential to support the huge promotional budget, since if
the supplies arent at the right time, all other effort can be in
vain.
As Per The Consumer Response Hierarchy Model; The
Calculations Are Like Below:
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Bibliography
(1) Marketing Management Philip Kotlet
(2) Marketing Management - Saxena
(3) http://www.google.com
(4) http://www.buruniv.ac.in
(5) http://amul.com