Amul

AMUL
The seeds of this cooperative dairy company were sowed in 1946 as and when milk became a
symbol of protest against the exploitative middlemen in Anand, Gujrat. Under the able leadership
of Tribhuvandas Patel and Dr. Verghese Kurien, the company set out on its journey of
unprecedented growth with the objective of delivering quality. The company since its inception
has been following a three-tiered structure for the development of dairy which proved to be of
substantial importance even in spurring the White Revolution in India that helped the country
emerge as the largest producer of milk in the world.
Fig. The three-tire structure for dairy development
Following the mantra of ‘rapid expansion’ the company registered a compound annual growth rate
of 17.5% and expects to achieve a CAGR of 20% in the next five years. In fact, the company ranks
9th by turnover amongst the largest dairy organisations across the world and is striving to be
amongst the top three in no time. Milk procurement has grown over 153% in the past nine years
and has played a significant role in the overall growth of the cooperative.
In addition, the company currently possesses a milk processing capacity of 360 lakh litres per day.
The scale and scope of the company is evident from its 566 booths and 5 milk collection and
chilling centres dotting the national capital and NCR. Further, the company enjoys a market share
of 1.1% in the world milk production and 25-30% in the Indian organized milk market.
http://media2.intoday.in/btmt/images/stories//March2016/milk2_051716031019.jpg
Amul Milk – 4P analysis
Price – Available in multiple SKUs and different kinds of packaging, the brand targets middle
class and upper middle class customers. The company maintains low cost affordable pricing
without compromising the quality of the products.
Place – Easily available at booths and kiosks spread dotting the national landscape, kirana stores,
departmental stores and multi brand stores across geographies.
Product- The brand boasts a varied portfolio of 10 kinds of milk – ranging from Amul taaza, slim-
trim to cow, buffalo and camel milk. In fact, availability of varities like Amul Shakthi, Chai maza
and slim trim highlight the attention paid to detail.
Promotion – With the longest running advertising campaign starring the Amul girl, Amul has an
impeccable brand visibility and recall. Their tag lines and jingles resonate with the sentiment of
the nation and are well suited to the target segment. In fact, the mouth catching tagline of Amul
milk “Amul Doodh peeta hai India” is a case in point.
Major Issues/Challenges faced

 Indian consumers’ preference for fresh milk procured from local milk men and milking
houses.
 Growing penetration and size of private dairy players in the Indian markets.
 MNCs offering as diverse portfolio as Amul like Danone and Nestle.
 Local upstart private dairies promoting new concepts such as milk from ‘happy cows’ as
done by Parag Milk foods, the product is sold as ‘Pride of Cow’ and is gaining traction.
 Sustain the interest of farmers’ gen-next in dairy farming to continue rising on the growth
curve.
Promotional Strategies
Over the years Amul has gained the competitive advantage of positioning itself on top of the
audiences’ mind and successfully developing a robust brand equity. The company holds the
Guinness World Record for the longest running campaign starring the butter girl, the ad campaign
has been going on for 42 years now and is witty as ever!
The Butter Girl

India’s most loved and renowned ad icon – the butter girl is the mascot of Amul. The little girl has
stood the test of time and with its unchanged theme and style has had people of all ages crack up.
The one liners are witty, satirical and relevant.
Tagline Strategy
Sporting the credo of interacting with its customers, Amul boasts a very strong tagline strategy.
The tagline resonates with the audience and strengthens the connect the brand has with its
customers such as the line “Amul – the taste of India” increases customers’ identification with the
brand, working in its favor and contributing to sales.
In addition, some taglines like “Aage Badta Hai India… Amul doodh peeta hai India” and “Doodh
Ka Packet, Safety Ka Jacket” reinforce healthy behavior and stimulate milk consumption among
different segments of the society like children and women. In addition, targeted ad campaigns that
connect with the common sentiment in the audience have an empowering impact as evinced in the
taglines – Amul raises a glass to child power and Amul raises a glass to India’s women power.
Channels of promotion
It is important to note that Amul hardly spends 1% of its revenue on promotional activities. Despite
the previously stated, the company uses multiple channels for promotion of its products – both
Above the Line (ATL) and Below the Line (BTL) channels are used, the usage is both offline that
is in real life and online. Examples of ATL promotions are road side hoardings, newspaper
advertisements and witty comic of the butter girl in newspapers, magazines as well as digital
platforms. Examples of BTL promotions are suggestions of slim-trim milk or other products on
digital platform that direct one to a platform like grofers or big basket to make the purchase. Infact,
brand ambassadors, social media influencers are also playing a substantial role in promotion of
Amul milk and related products.
Carrying and Forwarding channel

The company also ensures huge amounts are supplied to its C&F who can further ensure proper
distribution and availability of the products with both traditional and modern trade channels and
the stand alone booths. Thereby, a strong distribution network adds another feather to the growth.
Mahalingam, T. V., & Kandavel, S. (2012, February 12). Retrieved from

https://economictimes.indiatimes.com/industry/cons-products/food/the-milkmen-who-hope-to-
challenge-indias-iconic-milk-co-operative-amul/articleshow/11851705.cms?from=mdr.
Rahul. (2019, January 17). Marketing Strategies of Amul. Retrieved November 26, 2019, from
https://brandyuva.in/2018/11/marketing-strategies-of-amul.html.
Dairy Industry : Market Analysis and Marketing Strategy. (2019, July 15). Retrieved from
https://pixelsutra.com/dairy-industry-market-analysis-and-marketing-strategies/.
Varma, G. R., & Ravi, J. (2017). Marketing Strategies in Dairy Industry: A Case Study on Amul
Dairy. International Journal and Magazine of Engineering Technology,Management and
Research, 4(4), 510–517. Retrieved from
http://www.ijmetmr.com/olapril2017/GedelaRakeshVarma-JaladiRavi-65.pdf
Amul Milk . (n.d.). Retrieved from https://amul.com/products/milk.php.
Dsouza, Sharleen. https://www.bloombergquint.com/business/why-danone-shut-its-dairy-arm-in-
worlds-largest-milk-consuming-nation.

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AMUL

Fig. The three-tire structure for dairy development

Major Issues/Challenges faced

The Butter Girl

Carrying and Forwarding channel

Mahalingam, T. V., & Kandavel, S. (2012, February 12). Retrieved from

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