AMUL BUTTER

PRODUCT AND BRAND

MANAGEMENT

PROF. MONICA KHANNA

Submitted by:

Aakansha Mittal

PG-MC- 46

Amul

The Taste of India!

Product name: Amul Butter

Utterly Butterly Delicious...Amul

Character/ Mascot: The Amul moppet has been the mascot of Amul since 1967 sporting ayoung girl in red polka dot frock.

Amul as a brand name is familiar to almost every individual in India, Amul is known for its quality products purity and hygiene. For over more than the past 50 years, Amul has been serving the consumers of India with a variety of quality products. Amul follows a business model to provide products to customers which provides 'value for money' to the consumer. Amul has enjoyed its status of market leader in products like butter, cheese and dry milk, by providing customers with quality products at competitive prices. It is one of the largest food products manufacturing organization of India. It is a Dairy Cooperative of Gujarat, also known as The Gujarat Cooperative Milk Marketing Federation Limited (GCMMF).

Amul has brought a significant change in social and economic situation of our rural people. The Dairy Cooperatives have helped to bring an end to the exploitation of farmers and has increased the level of benefits to our rural producers of milk.

The turnover of Amul during 2012-13 was US$ 2540 million. Amul's Total Quality Management ensures that the quality of products meets its standards right from the starting place of milk producer through the value chain until it reaches the consumer thus Amul is trying to provide value to its customers which not only satisfies the customer needs but delights the customer.

Amul has time and again came up with innovative advertising which has helped Amul to develop itself as a brand which appeals people with assurance of its quality. The creative advertisement of Amul has created a position of its products which is generating higher sale.

The sales trend followed by Amul, as an entire entity, is an upward trend. This shows that the company has been gaining profits since past many years, leading to a widespread in the Indian markets and the minds of the consumer. Amul has been able to deliver its products in the remotest parts of the country and hence the sale is continuously increasing since past many years. MARKET SHARE OF AMUL

Formed in 1946, Amul is jointly owned by 3.03 million milk producers in Gujarat. Amul spurred the White Revolution in India which in turn made India the largest producer of milk and milk products in the world. It is also the world's largest vegetarian cheese brand.

Amul is the largest food brand in India. It is selling milk and other products through 6500 outlets across the country.

The brand positions itself as a brand of both masses and classes, unlike competitors like Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of milk and dairy products The country's largest dairy cooperative, Gujarat Co-operative Milk Marketing Federation's (GCMMF), that markets its products under the brand name Amul, turnover for the 2012-13 fiscal is likely to touch Rs 13,750 crore.

According to provisional figures, the cooperative has registered an 18 per cent growth in its annual turnover compared to the previous fiscal.

Amul owns 88 percent share in butter market and 75 percent in cheese share market. Amul is the market leader in Rs. 600 crores cheese market in India with 65-66% share. 63% share in infant milk and 45% market share in dairy whitener. Amul also enjoys a 26% share in the 25,000-crore packaged milk market. Sales of Amul Milk pouches grew by 34 per cent. Sales of Amul processed cheese showed a consistent growth rate of 29 per cent and Amul beverage which includes flavoured milk, buttermilk and lassi grew at 28 per cent over the last year. Sales of Amul Masti Dahi grew by 39 per cent. With expected growth rate of 20 percent, 12% growth rate can be attributed to price rise and another 8 percent to rise in demand for dairy products. The cooperative aims to grow milk procurement during FY14 by around 10-12 per cent.

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DESCRIPTION OF MARKET:

SIZE IN VALUE AND VOLUME:

Currently, Amul has 88 per cent market share in the approximately Rs 600-crore butter segment. Amul is taking initiatives to expand it share and plans to come up with smaller size packs in the segment. Amul has preserved its market dominance by keeping consumers prices unchanged for the last four years and forcing others to follow suit. The other reason for Amul selling more despite offering lower retail margins is strong consumer pull, resulting from its brand being virtually synonymous with butter.

GROWTH RATE:

The sales of Amul butter grew by 18 per cent. Sales of Amul Butter showed an impressive growth rate of 26 per cent. The growth rate is continuously showing an upward trend.

AAKER'S MODEL OF BRAND MAPPING

Like other brand mapping tools, this system helps you to clearly define a brand and position its product. Once a brand is mapped, this system goes on to track performance against competitor brands, reporting progress against key performance metrics that aid diagnosis of each reported brand's strengths and weaknesses.

It represents what the brand, Amul stands for and offers to customers.

Source of Brand Equity

MARKET DISPERSION

BREADSPREADS

CHEESE RANGE

FRESH MILK

UHT MILK RANGE

MILK POWDER

MILK DRINKS

HEALTH DRINKS

BROWN BEVERAGE

CURD PRODUCTS

PURE GHEE

SWEETENED CONDENSED MILK

Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese, Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul Cow Milk

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener Amul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool Koko,Amul Kool Milk Shake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Stamina Instant Energy Drink

Nutramul Malted Milk Food

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk, Amul Lassee, Amul Flaavyo Yoghurt

Amul Pure Ghee, Sagar Pure Ghee

Amul Mithaimade

Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul MITHAEE RANGE Basundi,Avsar Ladoos

ICE CREAM Sundae Range, probiotic,sugarfree and probiotic

CHOCOLATE AND Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul CONFECTIONARY Chocozoo, Amul Bindass, Amul Fundoo

KEY COMPETETION AND THEIR PERFORMANCE

MOTHER DAIRY:

Area of competition: In milk and has big plans for cheese, ice cream and butter. Mother dairy has approximately 10% market share in its butter segment. Mother Diary dared to go different in their advertising campaigns as almost 60% of butter consumption is done by kids, so Mother Diary wanted them to sit up and take notice of their company. Almost all the companies in butter market are targeting adults instead of children this way the company has differentiated itself.

BRITANIA

Area of competition: Cheese, butter mainly. Britannia expects to have an estimated market share of 38%. Britannia came up with Milkman Butter in the year 2000. This product is processed using advanced dairy technology. Its formulation ensures easy spread ability even at a lower temperature.

NUTRALITE

Area of competition: Butter substitute Margarine. Performance: Zydus, with its product Nutralite, claims to have garnered a 75 per cent share of the "butter alternative" market. Nutraliteis a table margarine and is widely used as a substitute of butter all over the world by strengthening its presence in the healthy dietary supplement segmentMarket Share of Amul:

The brand positions itself as a brand of both masses and classes, unlike competitors like Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of milk and dairy products, posted sales of Rs 11,670 crore for the year ended March 2012, almost 55% more than Nestle India's Rs 7,541-crore sales.

Amul owns 88 percent share in butter market and 75 percent in cheese share market. Amul is the market leader in Rs 600 crores cheese market in India. It also has 63% share in infant milk and 45% market share in dairy whitener. Amul also enjoys a 26% share in the 25,000-crore packaged milk market.

With expected growth rate of 20 percent, 12% growth rate can be attributed to price rise and another 8% to rise in demand for dairy products.

PRODUCT LIFE CYCLE:

Amul Butter has been the market leader in the butter category since past many years. The competition has failed to beat Amul's leadership in the butter category. The Product Life Cycle curve of Amul Butter shows that Amul Butter is at its maturity stage. Diagrammatically, it could be represented as:

AMUL BUTTER : 'UTTERLY BUTTERLY DELICIOUS'

CUSTOMER BASED BRAND IDENTITY PRISM

Brand identity is required because the more meaningful people find your marketing, the more they will be willing to pay for your stuff, and the more loyal they will become to your brand. They will make more of an investment in your brand emotionally, and they will be more motivated to choose it and spread the word about it.

This model shows that, for Amul through its Personality tried reaching its Customers which reflects the value proposition perceived by customers. In doing so, Amul goes through Rational Route of Physique and Social and Emotional Route of Culture and Self-image.

Marketing mix of Amul:

PRODUCT

AMUL BUTTER was the first product which was officially launched by AMUL in 1945.It has been a market leader during the last 4 decades.

AMUL BUTTER

Amul Butter is made from Butter, Common Salt, permitted natural colour- Annatto

Special Features:

Made from fresh cream by modern continuous butter making machines.Marketed in India since 4 decades.

Product Specification:

Meets AGMARK standard and BIS specifications No.IS:13690:1992

AMUL LITE

Unlike Butter and Margarine, , Amul Lite is low-fat, low-calorie and low-cholesterol bread spread and hence a healthier substitute. It contains 26 % less fat and calorie content as compared to butter and margarine.

Special features:

Since Amul lite is low in calories one can maintain slim trim shape without sacrificing on taste. Amul Lite is a low fat , low cholesterol product and less cholesterol means less chance of heart disease. Amul Lite is low in saturated fats and high in "PUFA" for a healthy heart. Amul Lite contains "Omega-6 & Omega-3 fats" which help to maintain healthy cholesterol levels. Amul Lite is fortified with vitamins A & D essential for good vision and healthy skin. It is manufactured in a fully automated, ISO9000 certified plant with strict hygiene conditions.

Product Specification:

The product is certified by AGMARK for quality.

PRICE:

Amul Pricing Strategies

At the time when Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.

Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand image in the household sector of the society. It has a totally market oriented pricing strategy.

PLACE:

A Global Distributor

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 11 years.

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 considered include Sri Lanka.

PROMOTION:

Initial Promotional Strategy

The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. They didn't help in creating a brand image of AMUL butter which was their then motive. Amul's management thinks that:

"When people think of butter, the first picture that comes in mind is of that little girl in red and white frock, holding a packet of Amul Butter" Advertising :

Amul - A taste of India

However in 1966, a man named Sylvester Da Cunha(MD of ad agency ASP) clinched the account of Amul butter, who along with his partner Eustace Fernandez decided that what they needed was a girl who would worm her way into heart of a housewife. And who better than a little girl? Thus came the idea of Amul moppet.

For initial years the thumb-sized moppet starred on hoarding mesmerizing people with her witty, catchy humorous one-liners. It was from 1969 Amul began playing the role of a social observer. And over the years the campaign acquired all that Amul touch. Amul campaign is a unique marketing device . Giving the brand a caricature, an emblem, a finite identity and then bringing it across with humour , satire , and sarcasm to reflect current affairs , has been most innovative . It is a departure from the straight-in-your face pronouncement of the product. It thereforefor has a threefold effect as opposed to perhaps one in all the others- the brand, the humpur and the topicality.

Amul's Marketing Strategy:

In order to maintain costs at lower levels, Amul India has never spent more than 1% of its budget on advertising. However it has still been successful in creating the same impact, it created 60 years ago through its simple yet appealing ad campaigns.

Talk about universally recognizable Brands grown in India, and one prominent contender is the Amul mascot, a cute and chubby girl usually dressed in a polka dot. Over 45 years of existence, the brand has always given a fresh flavor to Amul Mascot.

Amul Product's Packaging:

Amul's marketing strategy has always been consumer centric. Thus it is kept in mind that the packaging of all Amul products appeals to the emotional side of the consumer.

Information

Also the need to highlight the nutrient value and best possible use of the product is an important feature of all Amul products packaging.

Use of Information in Amul's packaging

Amul's Branding and Promotion:

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 da Cunha, 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.

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!

Advertising campaign of Amul:

Advertising campaigns for Amul turned around in 1966 when Sylvester da Cunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, Corporate ads. Sylvester da Cunha designed an advertisement campaign as series of hoardings with topical ads, relating to day-to-day issues. Thus was born the Amul Moppet, a little girl who would warm her way into a housewife's heart. Amul since then have been following different promotion and advertising campaigns with Amul moppet taking central role in the advertisements. Amul advertisements: Uses a variety of media to communicate - Most famous is billboard campaigns using Amul moppet and topical ads. Call her the Friday to Friday star because Every Friday, since 1967, this little girl appears at billboards, strategically placed all over India, focusing on the item of the week - tongue in cheek, of course. Amul food festival, which has been held for the last four year between October and December in about 50,000 retail outlets. From the political scene, to entertainment, from local news to international, from sports to stars, Amul moppet has a line for everything. Often said to be playing the role of a "social observer with evocative humor", the billboards became, and still are, a topic of conversation amongst millions. With their "hing-lish" (a combination of Hindi and English) punch-lines, they have won the maximum number of awards in India for any ad campaign ever. This little thumbelina seems to have the masses, right where she wants them - wanting more of her and of Amul. No other brand comes close to what Amul has been able to accomplish.

The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever.

Analysis of competitors:

BRITANNIA BUTTER & PASTEURISED BUTTER

Britannia Butter is known for its rich yellow butter color, great taste, and excellent spread- ability, even after refrigeration! It is made by churning fresh cow's milk, Britannia butter can be used as a spread on your breads, or as a dollop on your paranthas, or in baking, sauce making and frying. Though it contains milk proteins, fat and water, Britannia Butter remains solid (yet spreadable!!) when refrigerated, softens at room temperature and melts to a thin liquid consistency at 32-35degree celcius.

Place:

Britannia had started selling products in India, but now it has expanded overseas to places like Middle East and Sri Lanka.

They have even started to export their goods to places such as: USA ,Ghana, Saudi Arabia, Kuwait, Bahrain, Qatar, UAE, Oman, Seychelles, Singapore,

Price:

Britannia has adopted the Market Penetration Method of pricing. It focuses on the quality of the products keeping in mind the pricing strategy. This helps improve and generate large sale volume for their products. It aims at maximizing the market share and to produce new product lines.

Promotion:

Britannia came up with an ad campaign for dairy products after a very long time, in 2012. In it Britannia decided to concentrate on the cheese and milk - the areas where the market leader in diary category butter was not particularly strong.

It is now taken for granted that overthrowing Amul from the butter market would be a really tough task. Hence Britannia is concentrating on the next best thing where Amul is still a bit slow - Cheese and Milk. The cheese market has been proven to be huge especially in western countries. However, consumption pattern of Indians is still more inclined towards Butter. Furthermore, recently the wellness streak has brought down the sale of both - Butter and Cheese. Thus companies like Britannia which are 2nd in these products would like to be on top through advertising their products.