Complete Marketing Mix of Amul – With Complete 4Ps Explanations

Some brands have grown exponentially since their inception. Amul is one of them. How did they manage it? What did they do to increase their customer base? What did they do to keep their consumers coming back? We think Amul’s Marketing Strategy played a significant part in all this, especially its digital marketing strategy. This article analyses a few digital marketing strategies used by the company and the Marketing Mix of Amul to better understand 4 strategies – pricing, products, placing/distribution and promotion so that you can get an insight into what they have been doing.

About Amul

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.

 

What’s new with Amul?

Here’s what was buzzing around Amul recently:

• Amul is setting up a new dairy plant in Rajkot with a capacity of 20 lakh liters of milk per day. 
• Amul plans to invest Rs 4,000-5,000 crore over the next two to three years, largely into milk processing plants across the country. 
• Amul has launched a number of new products in 2023, including: Amul Cheese Spread, Greek Yogurt, Pro-Biotic Yogurt, and A2 Cow Milk
• Amul is expanding into new markets both domestically and internationally. In India, Amul is focusing on increasing its distribution in tier 2 and tier 3 cities.
• Amul is committed to sustainable practices and is working to reduce its environmental impact. 
• Amul is the sponsor of the Afghanistan, Sri Lankan, and South African cricket teams.
• Amul’s shooters have excelled in the Hangzhou Asian Games.

Buyer Persona of Amul

A buyer persona generally refers to the detailed information of an ideal customer of a company. When it comes to Amul, people from India use it the most. This buyer persona will help you understand the attributes of a regular Amul user.

 

From the table above we can conclude that an ideal Amul User  is a young, educated, and urban woman who is looking for high-quality, affordable, and convenient dairy products.

Want to know about the current challenges of Amul? Read a detailed SWOT Analysis of the brand before moving on with marketing strategies.

 

Marketing mix

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. 

Product

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.
Amul offers a wide range of dairy products, including:

• Milk and cream
• Ghee and butter
• Yogurt and cheese
• Ice cream and desserts
• Chocolates and confectioneries
• Ready-to-cook products
• Health and wellness products

Amul keeps investing in research and development, hence, strives to bring different products to their customers.

Price

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.

However, Amul also offers value packs and discounts to make its products more affordable for consumers.

Place

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:- 

1. 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.

    

2. 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. 

Promotion 

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. 

Amul India recently launched a marketing campaign to celebrate the success of Shah Rukh Khan’s comeback movie, Pathaan, which has become the first box office hit of 2023, grossing over Rs 600 crore globally within a week of its release. The campaign showcases Amul’s iconic mascot, the Amul girl, holding a slice of bread with butter and sporting a Pathaan-inspired look, complete with a bandana and sunglasses. The campaign has been widely appreciated by fans of both Shah Rukh Khan and Amul, as it creatively celebrates the success of the movie and adds a fun twist to the brand’s messaging.

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.

Amul uses a variety of promotional channels to reach its target customers, including:

• Television and radio commercials
• Print and digital advertising
• Social media marketing
• Point-of-sale promotions
• Public relations and media outreach

Overall, Amul’s marketing mix is designed to appeal to a wide range of consumers. Amul offers a wide range of products at affordable prices, and it is available in a variety of retail outlets. Amul also uses a variety of promotional channels to reach its target customers.

 

How does Amul use digital marketing in their strategy 

1. Search Engine Optimisation

Amul has put a lot of effort into SEO.

As per Ubersuggest data, it ranks in India for 47,266 keywords as of September 2023. Its organic traffic is 852,095 sessions per month. The stats are low compared to their SEO performance in April 2023. 

Here are some of their Search Engine Optimisation techniques :

Backlinks

Amul gets backlinks from 140,823 unique domains. All this increases the Domain Authority of Amul’s domain and helps it rank higher.

 

2. Social Media Marketing

Amul is active on Instagram, Facebook, and Twitter. As of August 2023, it has 420k followers on Instagram, 2 million followers on Facebook and 370k followers on Twitter.

Let’s analyze how their posts are:

Amul is the sponsor of the Afghanistan, Sri Lankan, and South African cricket teams. Most of their recent posts are about the team promotion & mostly product promotion.

 

 

 

They do Moment Marketing using their famous Amul Girl.

Amul seized the opportunity to join in on the viral “pawri” trend that swept the internet. Renowned for their witty wordplay, Amul crafted an advertisement featuring the iconic Amul girl celebrating with a raised glass. The tagline, “Yeh humari pav tea ho rahi hai,” was the highlight of the ad and garnered much attention.

They promote user based content which are generally recipes using Amul products.

 

Top Competitors of Amul 

Here’s the list of top competitors of Amul:

• Mother Dairy
• Nestlé
• Britannia Industries
• Kwality
• Parag Milk Foods
• Havmor

Conclusion

As we wrap up our analysis of Amul’s impressive digital marketing strategy, it’s clear that staying up-to-date with the latest trends and techniques is key to success in the digital marketing world.

Whether you’re a marketing professional or just starting out, be sure to check out our free digital marketing masterclass to gain a solid foundation in the essentials of digital marketing.

Who knows, you might just develop the next big marketing strategy like Amul’s! Don’t forget to share your thoughts and comments on Amul’s strategy in the comments below.

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