What comes to your mind when you shop for butter? Amul right? That’s because they have ranked themselves first as the national butter and consumer option. Value for money, quality and availability are other important qualities that have made Amul leading today and to understand how has the company done that we will be learning the Marketing Mix of Amul.
Amul cooperation began as a revolution against the exploitation by the rich and British and today they are a brand that has reached the houses of every Indian.
It is relatively complex for many cooperatives to stay this prominent within the market but how has Amul managed to not just stay in the market but also have a tight grasp on it?
In this case study, we will understand the Marketing Mix of Amul to better understand 4 strategies – pricing, products, placing/distribution and promotion.
Let’s first dive into who and what the company is.
AMUL also known as Anand Milk Union Limited, is an Indian cooperative dairy company founded in 1946, Gujrat and is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).
The founder of Gujarat Co-operative Milk Marketing Federation is Dr Verghese Kurien and the current Chairman is Shri Shamalbai B. Patel.
Anyone, regardless of class, race, or gender, can be a member of the cooperative formed under the Anand Pattern, however, they are required to own a minimum of one cow or buffalo and are inclined on supplying milk.
Amul has been ranked number one in the list of top 1000 brands in Asia by Campaign Magazine. Their main aim was to establish a co-operative based society to cease consumer and farmer exploitation by the local milk cartels.
To know more about the company click here.
Now that we have some background on the company, let’s dive straight into their marketing mix.
Marketing Mix of Amul
The 4Ps – Product, Price, Place, and Promotion, are what make up the marketing mix. It is an integral tool used to know a company’s marketing approach. This model aids us in gaining a broad knowledge of the company and the tactics it employs to advertise and sell its products to the general audience.
Let’s look at Amul’s marketing mix.
1. Product Mix of Amul
Amul is a major dairy products brand with a broad product line that includes a wide range of dairy products. Amul’s cash cows are cheese and ice cream, which have the greatest market share in their respective product categories. Amul ice cream stands as one of India’s top ten ice cream brands.
There are various brands selling dairy products, but none meet up with Amul’s wide range. The product tree of Amul has the following varieties – milk, cheese, paneer, yoghurt, milk flavoured beverages, milk powders, ghee, butter and mithai mates. Anything dairy can be found with an Amul stamp.
Recently, they began selling chocolates and lactose-free milk and ice-creams. Amul keeps investing in research and development, hence, strives to bring different products to their customers.
2. Price Mix of Amul
The pricing strategies of Amul includes a combination of competitive and low-cost pricing. Amul began with the vision to provide the best quality dairy products at affordable prices. The pricing of different products is taken into account by different factors such as the price of raw material, labour cost, farmer’s profit, transportation cost and storage costs.
Amul is pursuing a low-cost strategy for products commonly used like milk, ghee, butter and so on, where they offer these products at a lower price than their competitors. For products like Amulspray, Prolite, condensed milk and more the company adheres to a competitive pricing strategy, where the price of these products is similar to their competitors.
3. Promotion Mix of Amul
Amul is one of the fewest corporations running a successful campaign since the start. They also have had a prestigious and fun campaign character – The Amul girl, created by Mr Eustace Fernandes. Campaigns such as “Indian Taste” have given emotional value to its marketing, and each household’s promise as a family product has been realised.
Amul frequently incorporates current events in their advertising, often in a humorous manner that engages the user.
The majority of their advertising is focused on butter since they do not want to not spend more than 1% of their turnover on promotion that could have a direct impact on product cost.
Amul has recently moved to an e-commerce platform with an Amul online app via which they distribute items to e-commerce customers that are high in volume. This has aided Amul in the promotion of their brand on various social media sites, i.e. digital marketing.
4. Place Mix of Amul
Amul establishes its image by outpacing the quality of other brands and are readily available to entire demographics in urban or rural areas. They target children, adults and businesses under the umbrella of their product.
In Amul, distribution takes place through two main methods:-
- Procurement channel – Farmers provide milk to cooperatives, which is gathered in bulk and transported to the processing plant. That milk is made to produce the final goods at the production plant.
- Distribution channel – In charge of getting the finished product to the end-users. Carrying and forwarding agencies, distributors, dealers, and retailers are all part of the distribution chain.
There indeed is a lot of transportation that lead to the final product distribution, however, Amul doesn’t fail to deliver their products to every corner of India.
From combating the exploitation of middlemen to making it a mandatory product in every Indian household, Amul has come a long way. Amul made its way to success by devising an amazing strategy that could touch the minds of every Indian.
Amul was able to build a strong presence in the minds of its customers by posting it on various advertising locations with the “Amul Girl” and then on every social media platform with current events.
Amul has indeed paved its way as one of the leading cooperative dairy product sellers with all their continuous hard work, research and developments. They know their target audience and strive to satisfy their demands.
We hope you enjoyed this case study. If you’re further interested in Amul’s large presence, check out IIDE’s cast study on the Marketing Strategies of Amul.
Furthermore, if you are interested in the field of marketing, register for IIDE’s well-developed Free Masterclass on Digital Marketing.