THE BEGINNING…
•In the year 1946 the first milk union was
established.
•This union was started with 250 liters of milk per
day.
•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 is 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.
•At the initial stage only 250 litres of milk
was collected every day.
•But with the growing awareness of the
benefits of the cooperativeness, the
collection of milk increased.
•Today Amul collect 11 lakh litres of milk
everyday
from 1073 societies.
The Amul ModelTHE 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.
THE AMUL MODEL
VILLAGE LEVEL
200 members committee
DISTRICT LEVEL
Board of Directors-12900 members
STATE FEDERATION
Members are chairpersons of district
level and Ex-official members. Registrar
of co-operative of state.
PROBLEMS IT FACED-
•No brand awareness among the customers mainly because
of illiteracy soon after its introduction in 1986.
•Intense competition from the private packers resulted in
low market share.
•In order to create brand distinctiveness, Amul came up
with colorful pouches but soon its competitors appeared
with identical colors and symbols.
•Consumers showed little preference towards milk brand
and milk type. Amul produced four types-double
toned,toned,standardised and whole.
However, soon Amul decided to create brand awareness by
increasing its availability to one and all in the early morning
and educating the customers about milk types and quality.
Which eventually helped the brand to tackle the problems.
STRONG DISTRIBUTION
NETWORK
SWOT ANALYSIS
STRENGTHS
WEAKNESS
•Largest food brand in India
•Competition
•High Quality, Low Price
•Lack of capital investment as
•World's Largest Pouched Milk Brand
compared to other companies
•Highly Diverse Product Mix •Robust
Distribution Network
THREATS
•Competitors - Hindustan Lever,
OPPORTUNITIES Nestle and Britannia
•Penetrate international markets •Still competition from MNCs in
•Expand existing categories like butter
processed foods, chocolates etc •Growing price of milk and milk
products
•Ban on export of milk powder
CUSTOMER BASED MARKET SEGMENTATION
KIDS
Amul Kool, Energy drinks,
Kool milkshake
WOMEN
Amul Calci+
YOUTH Amul cheese, Cheese
spreads, Kool drinks
CALORIE Amul lite, Amul slim n trim
CONCIOUS milk
HEALTH Nutramul, Amul shakti
CONCIOUS drink
INDUSTRY BASED MARKET
SEGMENTATION
Restaurants,
coffee shop chain, ice-cream
manufacture,temples
MILK
Bakery and confectionery, pizza
outlets,snack outlets
BUTTER, CHEESE, GHEE,LASSI
CASE STUDY Questions'
1) Describe consumer behavior in the context of a commodity
like milk.
•Consumption on daily basis.
• Females are the main decision maker for the milk.
•Preferences on Purity & Price.
• Brand Matters.
2) What are the market segments that Amul can penetrate? Are
there any other segmentation alternatives available to Amul?
•Two Segments- Consumer & Industry.
•Alternative Segments- Railways, Educational Institutions,
Export.
3) If you were the marketing chief of Amul, what other
innovations would you make in your marketing strategy?
•More consumers Centric.
•Installing Bulk Milk Chillers and Automatic Milk
Collection Systems in all our village co- operative
societies.
•Advertising on Local Cable Network, Radio etc.
•Creating Awareness.
