MUMBAI UNIVERSITY

MARKETING ANALYSIS AND SALES

DEVELOPMENT OF AMUL MILK
SUBMITTED BY

SHAIKH ZESSHAN GUFRAN AHMED

TYBMS SEMESTER-VI

2020-21

CO-ORDINATOR

SAMEERA IBRAHIM DILSHAD ANSARI

HEAD OF DEPARTMENT

PROF. BILAL SIR

UNDER THE GUIDENCE OF

PROF. YOGESH SIR

THE PROJECT SUBMITTED TO THE UNIVERSITY BY THE PARTIAL

FULFILLMENT OF THE REQUIREMENT OF SEMESTER VI OF TYBMS

DEGREE EXAMINATION -2020-21

Nalanda Education Foundation ,Sanchalit ,Dr. Babasaheb Ambedkar College

Of Arts, Science & Commerce (Accredited “B” Grade By NACC)

P. L. Lokhande Marg Chembur Rly Station Chembur (W). Mumbai -400 089

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 CERTIFICATE

This is to certify That Shaikh Zeeshan Gufran Ahmed worked

and duly completed This Project Work for the degree of Bachelor of

Management Studies under the Faculty of Commerce in the subject OF

PROF. YOGESH SIR and his project is entitled,

MARKETING ANALYSIS AND SALES DEVELOPMENT OF AMUL MILK
under my supervision. I further certify that the entire work has

been done by the learner under my guidance and that no part of it has

been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by her/his personal findings and

investigations.

PROF : YOGESH SIR

DATE OF SUBMISSION

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 DECLARATION

I The Undersigned SHAIKH ZEESHAN GUFRAN AHMED here by,

declare that the work embodied in this project work titled

“Study on mutual fund”, forms my own contribution to the research work

carried out under the guidance of PROF. YOGESH SIR is a result of

my own research work and has not been previously submitted to any

other University for any other Degree/ Diploma to this or any other

University. Wherever reference has been made to previous works of

others, it has been clearly indicated as such and included in the

bibliography. I, here by further declare that all information of this

document has been obtained and presented in accordance with academic

rules and ethical conduct.

EXTERNAL SIGNATURE

GUIDED BY

PROF. YOGESH SIR

SIGNATURE

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 ACKNOWLEDGEMENT

TO list who all have helped me is difficult because they are so

numerous and the depth is so enormous. I would like to acknowledge the

following as being idealistic channel and fresh dimension in the

completion of project. I take this opportunity to thank the University of

Mumbai for giving me chance to do this project. I would like to thank

my

PRINCIPLE NITIN KADAM, AND VICE PRINCIPLE M.SAKTIVEL

for providing necessary facilities required for completion of this project. I

take this opportunity to thank my coordinator PROF. SAMEERA

IBRAHIM DILSHAD ANSARI for her moral support and guidance. I

would like to express my sincere gratitude towards my project guide

NISHA HIVRAYE whose guidance and care made the project

successful. I would like to thank my college library for having provided

various reference books and magazines related to my project. Lastly I

would like to thank each and every person who directly or indirectly

helped me in the completion of the project especially my PARENTS

AND PEERS who support me throughout my project.

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Shaikh Zeeshan Gufran Ahmed

SIGNATURE OF STUDENT

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 INDEX
No. Chapters List Pages

(1) CHAPTER - 1 AMUL'S MARKETING 06 - 14

STRATEGIES – 1

(2) CHAPTER - 2 AMUL'S MARKETING 15 - 19

STRATEGIES – 2

(3) CHAPTER - 3 Amul Marketing/Branding Strategies 20 - 33

(4) CHAPTER - 4 SWOT Analysis of Amul 34 - 41

(5) CHAPTER - 5 TYPES OF RESEARCH DESIGN 42 - 51

(6) CHAPTER - 6 Research Methodology 52 - 60

(7) CHAPTER - 7 BIBLIOGRAPHY 61

CHAPTER-1

AMUL'S MARKETING
STRATEGIES – 1

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 INTRODUCTION

Amul is India’s largest dairy cooperative society at Anand, Gujrat. The Kaira
District Co-operative Milk Producers’ Union was established in 1949, it’s a
cooperative brand managed by the Gujarat Co-operative Milk Marketing
Federation.

The Amul is a co-operative based food industry. Formed in 1946 in Anand

district in the state of Gujarat. This cooperative industry began when milk
became a sign of protest.

The Amul Co-operative industry’s main motive was to stop the farmers by
middlemen. The middlemen or traders won’t pay enough to the milk provider,
all margins of milk were distributed between the middlemen and the trader.

Angered by unfair and manipulative practices followed by the trade, all

former members of the district made the conversation with the great Indian
patriot SardarVallabhbhai Patel’ for a solution on it.

He advised them to get rid of middlemen and established their own co-
operative milk producer union Ltd.

Which would have procurement, processing, and marking of milk under their
co-operative industry. Under the inspiration of SardarVallabhbhai Patel, and
the guidance of leaders like Thribhuvandas Patel and Morarji Desai. In 1973
Amul Celebrated its 25th Anniversary under the leadership of Thribhuwanda
Patel. 

The Amul milk model has supported India to become the largest milk
producer in the world. Amul milk is processed in 222 districts Cooperative
milk Union and promoted by 28 state marketing federations for the
betterment of millions of people’s life.

The Amul marketing strategy was well planned by using the umbrella
marketing principle. They run all Ad campaigns under the umbrella
marketing principle.

Amul launched 50 plus products in the market under the Amul brand name
and they didn’t need to do a different Ad campaign for 50 products, just they
simply promoted Amul. 
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The Amul gained massive growth from some previous year because of
umbrella marketing. In that way, Amul sells different types of products all
over the world but those products were not as popular as others they also sell
under the Amul brand.

Anand Milk Union Limited is an Indian Diary company. The company

headquarter is in Anand, Gujarat, India. It is an India’s largest food products
organization with a total brand turnover of USD 5.1 Billion. The company is
popularly known as ‘AMUL’, aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality
products which are good value for money.

The product portfolio include milk- UHT and pouch, buttermilk, ghee, butter,
sweetened condensed milk, milk powders, infant milk food, dairy whitener,
tea and coffee whitener, lassi, ice-cream, paneer-fresh and frozen, cheese,
cheese spreads, margarine, flavored milk, gulabjamun, milk shakes, malted
foods and drinks, probiotic dahi and chocolates.

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 Dairy Products So Popular? – A Marketing
Strategy
Amul is one of the most popular and successful brands in India. With its wide
range of dairy products, Amul has now become a household name in the
minds of Indian families.

I’m sure that we all have at least one of Amul’s products in our house. It has
elegantly created its family-friendly and patriotic image with its, “Amul –
The Taste of India” marketing jingle which also evokes empathy towards the
brand.

What also makes Amul so special is that it has constantly managed itself in
staying relevant for all these years in the minds of the customers ever since its
foundation.
Thus, this also makes us wonder about what they are doing to stay relevant in
this increasingly competitive and digitized world.

In this case study, we will go through Amul’s online marketing strategies and
campaigns implemented by them over the years which has helped them stay
on top of the game, ahead of its competitors in the industry
.

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 The Amul Model
This model aims to provide ‘value for money to the customers and protect the
interests of farmers simultaneously’.

The Amul Model is a three-tiered structure that is implemented in its dairy

production:

• Amul acts as a direct link between milk producers and consumers that
removes the middlemen which help them offer products at
affordable prices
.
• Farmers (milk producers) control procurement, processing, and marketing.

• Run by Professional Management

With this model, Amul has made a significant impact in the market along with
taking care of the farmers and also providing value for money services to its
customers.
Let us now understand Amul’s target audience in the next section.

Amul’s Target Audience

Amul has targeted the mass market of India with no premium offerings and works
on providing the best quality products at affordable prices.

So Amul formulates its pricing policy on the low-cost price strategy which has
attracted a lot of customers in the past and it continues to do so.

Now let us understand Amul’s target audience based on customer-wise targeting

and industry-wise targeting. Their strategy divides the target audience on the
following two bases:

Amul’s Target Audience

Amul has targeted the mass market of India with no premium offerings and works
on providing the best quality products at affordable prices.

So Amul formulates its pricing policy on the low-cost price strategy which has
attracted a lot of customers in the past and it continues to do so.

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Now let us understand Amul’s target audience based on customer-wise targeting
and industry-wise targeting. Their strategy divides the target audience on the
following two bases:

As the table showcases how Amul has its product range targeted towards a
diversified customer base.
 
Industry Based Target Audience
Amul has segmented Milk for various industries such as ice-cream manufacturers,
restaurants, coffee shops, and many similar industries. Further, it has segmented
Butter, Ghee, and Cheese for bakeries, pizza, snack retailers, confectionaries, and
many more.

The target audience study tells us that Amul has a strong presence in both business-
to-business (B2B) and Business-to-Customers (B2C).

This is how Amul’s target audience is served, given that it has a decent
concentration in both B2B and B2C segments. Let us understand the marketing
strategies and campaigns implemented by them to market themselves in the next
section of this case study.

Amul’s Marketing Campaigns and Strategy

In this section, we would go through Amul’s social media marketing strategy and
campaigns implemented by them.

 
1. The Story of the Amul Girl, India’s Most Loved Ad Icon

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 Amul Girl is the official mascot of the Amul brand. It is a hand-drawn cartoon of a
young Indian girl dressed in a polka-dotted frock with blue hair and a pony tied up.

The Amul Girl was created as a response to Amul’s rival brand Polson’s
buttergirl back in 1967. It has made a world record for the longest run ad
campaign that ever happened on planet earth!

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Amul Butter Girl’s first-ever ad copy released in 1967 Here are some
of the best advertisements of Amul Butter Girl,

Amul’s mascot strategy has worked out very well offline but lets us now
check how is it working on the digital fronts.

2 . Amul’s Digital Marketing Strategy

In this increasingly digitized world, every brand needs to revamp its

marketing strategy. Amul too has cut down its expenditure on TV Ads
and has started focusing more on the online form of advertising just like
its competitors.

But before that let’s have a look at its social media presence from the
below table.

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1. Amul on Facebook & Instagram
In the present day, The shift from offline to online marketing was fairly an easy
task for Amul. They were already creating content for banners and newspapers
previously and now they just follow the same style for their creatives on
Facebook & Instagram as well.

Their most popular creatives on Facebook and Instagram revolve around the
Amul Butter Girl the buzz-worthy happenings all around the world.
Let’s now take a look at some of Amul’s digital marketing campaigns
which were a hit on Facebook as well as Instagram.

“Eat Milk with Every Meal”

In 2013, Amul hired a digital marketing agency called DraftfcbUlka to
come up with a campaign for the digital space as well as print.

The objective of this campaign was to educate Indian buyers about the
goodness of milk and its byproducts.

In older times milk was considered the world’s favourite energy drink but
in the present era of junk food, the importance of milk has been
undermined.
So, in this campaign, Amul focused on repositioning Milk and its entire
range of dairy products to seem trendy and tempting to all.

Moreover, Amul created graphics to enlighten its consumers about the

various scenarios in which they could consume Amul products (along
with the numerous benefits of those products).

National Milk Day Campaign

On 26th November 2019, Amul celebrated National Milk Day by
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launching a new campaign by using hashtags like,

Amul’s Digital Marketing Strategies during COVID-19  

Despite lockdown and Amul also being an FMCG brand, sales have
increased due to excess consumption of households during the lockdowns
and its presence on E-commerce sites like Grofers, Big Basket, Paytm
mall, etc. However, it has also doubled its spending on its marketing
efforts.

CHAPTER-2
AMUL'S MARKETING STRATEGIES - 2

Amul is an India based company, headquartered in Anand, Gujarat,India.

Amul is a cooperative dairy company started in year 1956. Amul remains in
the headlines due ti its creative advertisements, its advertising team is
considered as one of the most creative and active team. 
In this blog, I'll discuss various prominent strategies used by Amul, starting
from the very basic,i.e., Pricing Strategy.

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Pricing Strategy: India is a price sensitive market, hence, Amul tries to cater to
the needs of all the Indian market segments keeping in mind the wallet size of its target
customers without compromising with the product quality. Amul deals in daily need
dairy products like milk,butter, cheese, ghee, cream, ice-cream at comparatively lower
prices offered by its competitors which in return helps Amul to capture huge market
share.
 

Segmentation, Targeting, and Positioning Market strategy of

Amul: Amul's target segment is the mass population, we generally see
people of all age groups and demographics enjoying Amul's dairy
products,asAmul's dairy products are a common product for all, have you
ever heard of any ice-cream or butter only to be consumed by aged people? 

- As it has a very vast product portfolio, the company doesn't

differentiate in its customers but uses Mass Marketing
principle,and this strategy has proven itself to be the most
suitable one,as this principal is still working well with the
Amul's marketing strategy.

-Amul's target audience are the regular users and middle class people.
However, for products like Butter and Cheese, both upper middle class
and lower middle class people are the target audience.
-Positioning Strategy used by Amul is at the top of the mind, as it got
some leverage fopr being the first brand which comes in mind when
talking of milk,cheese,butter,ice-cream or any other dairy product from
Amul's product portfolio.

COMPETITIVE ADVANTAGE IN THE MARKETING

STRATEGY OF AMUL

Amul carries two major competitive advantages listed below:

1. Its supply chain: Amul has large number of dairy suppliers which
provides it tremendous strength and facilitates Amul to produce high
volumes by relying on its supply chain.

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2. Its Wide Product portfolio: Amul has a really wide product line
due to which it can run Amulshoppes's and also maintain its products
presence in market, especially at retail level. Amul's product portfolio
analysis indicates that its Butter and Ice cream are cash cows for it.

DISTRIBUTION STRATEGY IN THE MARKETING

STRATEGY OF AMUL.
like any other FMCG firm, Amul focuses on breaking down the bulk.It
supplies in huge amounts to its C and F, which is responsible to store Amul
products in bulk. C&F then transfers the company's products to distributors
who forward it to retailers. Amul has its own storage and also has a strong
and reliable C&F.

BRAND EQUITY IN THE MARKETING STRATEGY

Due to the quality products, the top of the mind positioning , Reliable and
strong distribution and supply channels, and finally the point of purchase

branding and advertising of the Amul girl, Amul is at very strong position
when its brand equity is concerned. Amul's brand worth is more than 3.8
billion which is ecpected to cross 4 billion mark in near future, but the
dropping value of rupee and economy slowdown may cause the difference.

COMPETITIVE ANALYSIS OF AMUL'S MARKETING

STRATEGIES

Amul has many competitors, who has entered the market in last decade and
are growing their market share steadily. In Ice cream category, Amul owns a
major share but even though individually these competitor brands might not
be a worthy adversary,combined and due to synergy, all of them together are
giving very tough competition to Amul.

List of its top competitors:

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• Kwalty walls
• Vadilal
• Havmore
• Dinshaws
• Baskin Robbins
• London Dairy
• Arun Ice cream

Many of these ice cream products are niche or geographic targets centric.
Havmore is more successful ansd strong in west India whereas Arun ice
cream is strong in south.

Besides these organised players, Amul has many unorganized and small
competitors as well which offer their own ice cream variants in own outlets.
But the competition in other dairy products like Butter and Cheese is far
less.

MARKET ANALYSIS
The FMCG market is highly competitive in nature and is known to have a
combination of organized players as well as unorganized players. Similarly,
in FMCG, direct competion is equally important as indirect competition. For
example – During winters, ice cream and cold milk products will not sell,
whereas butter and cheese will sell equally well.

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But on the other hand, during summers the demand of
ice cream shoots up so much so that companies are not
able to meet demands. Thus, when we analyse the
market of Amul, in some cases Amul is the clear market
leader, whereas in other products it is a competitor in
the market.

CUSTOMER ANALYSIS

The typical customers of Amul belong to the Sec B and Sec C segment
wherein they are either middle class or lower class. Amul in general uses
mass marketing and therefore it targets these 2 classes majorly. The high end
customers are more likely to prefer a Naturals, a Baskin rob bins, or any
other such brand which meets their taste and status.
This completes the analysis of the marketing strategy of Amul.

When we plot Amul's products on BCG Matrix, we

get to know that:

• Amul's certain products stars whereas others are cash cows.

• Amul's chocolates are question marks as they have very low

share in growing market, Cadbury is the market leader.

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• Amul's Butter and Ice creams are cash cows as they have a
huge market share which is still growing with the market growth.

• Amul's Milk, buttermilk, cheese, Amulkool have alot of

direct and indirect competitors in their niche market, but syillAmul
has high market share for niche as well so ,it is right to say that all
these products fall under Star for Amul.

CHAPTER-3

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 Amul Marketing/Branding Strategies

Amul Marketing Strategies [Detailed]Amul's Branding

as 'The Taste of India' &Amul Girl as Mascot

The first aspect of the marketing strategy of Amul is branding. The major
chunk that led to the Success of Amul is its Branding strategies. We are all
aware of Amul’s tagline- ‘The taste of India’. The tagline banished the
notion that bread and butter are a staple of only the British breakfast and
pulled nationalism in. The never-aging girl who wore a polka-dotted dress,
with blue hair and an orange face was the company’s icon. Amul marketed
all of its products under a single name, which led to advertising merely
costing one percent of its revenue.

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Amul’s Product Portfolio adds to its Marketing Strategy

The second aspect of Amul’s marketing strategy was Amul’s

product portfolio. Amul’s variety of products catering to a large
audience. While certain brands such as London diary, Baskin
Robbins, etc., managed to capture few regional (ice cream)
markets where they cater to high-end customers, Amul secured
their standing in the overall dairy market. Their main target
audience was however the middle and economic classes. The
simple reason behind their retention of customers is because of the
product pricing, which is discussed next.

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Amul's Low-Cost Pricing Strategy

The third aspect is product pricing. It is one of the best promotional

strategies adopted by Amul. It opted for a low-cost pricing strategy for
products that are consumed regularly.
This pricing strategy of Amul made it affordable for its target audience.
Increasing the price of goods proportional to their audience’s increase in
income helped them retain their customer base. A competitive pricing
strategy, such as a one-on-one offer, was adopted for products facing heavy
competition.

One such product line is ice cream. As Amul is a co-operative, it aimed to

get the best price for the producer as well as the consumer, unlike certain
companies that focused only on profit. But being an FMCG company surely
involved a well-planned production, storage, and distribution network which
is expensive.
Yet Amul sold goods at affordable prices. How did they do that?

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A well-planned and executed logistics and supply chain model was
incorporated. Amul was a three-tier cooperative structure.

• At the village level, there were cooperative societies producing milk

• At the district level, there were milk unions with processing centers
• At the state level, there were milk federations responsible for
consolidation
This transparent model led to maximum returns for the suppliersthe farmers.
As the prices increased, their income accordingly increased as well.
Also, co-operatives are one big family. Surplus products were sent to areas
with high demand and vice versa. So, that was the Amul distributionstrategy.
All the above-mentioned factors were 75 percent. Without the 25 percent,
75 percent was as good as zero. So what was the 25 percent?
The 25 percent of Amul’s Advertising Strategy

We reached the final aspect of Amul’s marketing strategy, 25 percent of

Amul’s advertising strategy. Without advertising, the target audience
wouldn’t be aware of the existence of the product.

Amul was (and still is) in the Guinness record for running the longest-ever
advertising campaign.

The butterly girl is thirty-nine years old now, though she certainly didn’t
appear to be! Top-of-the-mind positioning was achieved by Amul, meaning
Amul was first thought of when it came to dairy.

The butterly girl appeared in hilarious topical representations involving

butter and current affairs!
Amul also came up with several taglines such as ‘AmulDoodhPeetha Hai
India’,’ HarGharAmulGhar’,’ PehlaPyaarAmulPyaar’, and so on in its short
advertisement videos. Every advertisement was guaranteed to make you
chuckle appreciatively at its wit, warm your heart, or tickle your funny bone.

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Amul Girl – Advertising Mascot of Amul

The well-known mascot of Amul – ‘ Amul Girl’ is a cartoon of a

youngIndian girl dressed in a polka-dotted dress with blue hair and
a half pony tied up.
The Amul Girl’s first advertisement portrayed the Amul product –
Amul Butter as ‘Utterly Butterly Delicious’. Which was a total hit!

An interesting story behind this

The Amul girl was created as a response to Amul’s rival brand

Polson’s butter- girl. This sales strategy of Amul was conceived in
1967 once ASP (Advertising, Sales, and Promotion) clinched the
brand portfolio from the previous agency FCB Ulka. The Amul
Girl has been the face of Amul since 1966 and is considered the
longest-running advertising campaign.

Digital Marketing Strategy of Amul

While not as big a presence in television ads as it used to be, the

advertising strategy of Amul through digital marketing made the
most of it through platforms such as Facebook, Twitter, Instagram,
and others. Amul’s digital marketing strategy also made it a point
to connect with its customers and take care of any and every
complaint rigorously.

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Amul Digital Marketing

These Seven aspects of Amul’s marketing strategies made Amul a

leader in its sector. While every company had its ups and downs,
Amul managed to stand strong. Its emphasis on quality and
integrity was what made it a survivor in the current market.

Marketing Mix of Amul

Marketing Mix is the combination of factors that can be controlled

by a company to influence consumers for purchasing their
products. Amul has become a household name when it comes to
staple items like cheese and ice cream. We’re going to be looking

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at the marketing mix of the dairy giant which includes the 4Ps of
marketing. Product, pricing, place, and promotion.

Product

Amul is one of the most diversified brands when it comes to dairy

products in

India. It has the widest range of products compared to its

competitors. Amul’s well-built portfolio includes Amul milk,
buttermilk, bread spreads (ghee, butter, garlic butter), Amul Dahl
(mishtidahi, regular dahi), Amul Chocolates, Amul cheese
(mozzarella, regular), Amulmithai mate, Amul milk powders, and
Amul ice cream.

The entire range of products has enough competition but Amul’s

quality of the products is unbeaten so far.

Amul butter, cheese, and ice creams will always be voted in a poll
for their quality and taste.

Amul chocolates have been trying hard to climb up the ladder with
parallel growing brands like Nestle and Dairy Milk.

However, no other brand has been able to build a portfolio such as

that of Amul and that is one of the biggest competitive advantages
for the company.

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Pricing

Amul’s pricing is economic and affordable.

The low-cost pricing strategy may also be termed penetrative
pricing.
When Amul first started out, there were no Indian players in the
market and the company has established itself across India with
quality products and affordable prices. Of course, over the years
inflation has affected all the areas of business and Amul is no
exception.
The distribution and storage costs of FMCG products are quite
high but Amul has made sure it keeps its prices in sync with
people’s expectations and even today a majority of consumers’
first choice is always Amul.

Place and distribution

Amul is one such brand that has established its presence in every
part of the country.
All grace to the massive distribution channel that makes sure that
Amul products reach homes pan India.
The distribution model works on buying in bulk and disintegrating
it further into smaller chunks where the final product reaches the
end customer.
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Amul has two distinguished channels for distribution –
The procurement or acquisition channel through which Amul buys
raw material that is milk from villages and diary co-operatives and
sends it to the manufacturing facilities which convert the raw
material into a wide range of finished goods.

The distribution channel which consists of carrying and forwarding

agents, distributors, dealers, and retailers.
Amul has its own exclusive showrooms where all Amul products
are available.

Promotion

Amul is well known for its longest advertisement campaign

character- the Amul girl. Courtesy of Mr. Eustace Fernandes, the
creator of the famous mascot, Amul girl has been widely popular
with Indian households as she’s not only the butter eating, song
singing adorable character that everyone loves, but she’s also an
informant of current affairs, taking timely digs through Amul’s
commercials. These commercials hit home and make a point.
Well, if you have noticed, products such as Amul butter and
Cheese are the only ones that are majorly advertised.
The reason for its absence in hardcore marketing for other
products is that the company does not want to give away its
margins in marketing and according to the company it spends only

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around 1% on marketing and advertising. No wonder its prices are
always better than its competitors despite cut-throat competition.

Segmentation, Targeting and Positioning

(STP) Analysis of Amul

Amul is a brand that has something for everyone in its product

range. Let’s have a look at how Amul has worked through the
three strategies to become a billion-dollar brand.

Segmentation

Customer-based Segmentation: Kids- Amul chocolates, Amul Kool

drinks, Amul Butter, AmulLite butter, Amul Pizza Cheese, Regular
cheese, Cheese spreads, Amul milk powder, NutraAmul

Industry-based segmentation:
Milk- Ice cream manufacturers,
Restaurants/food chains, cafes, and Coffee shop chains. Butter,
Cheese, Ghee- Indian households, Bakeries and Confectionaries,
street vendors, and snack shops.

Targeting

The value for money brand has established its image by being a
product that is easily available, affordable, and surpasses the
quality of other brands thus targeting the entire demographic be it
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urban or rural. It has targeted kids, adults, and industries all
together under its product umbrella.

Positioning

What comes to your mind when you say butter? It’s obviously
Amul as it has positioned itself as the national butter and
consumers’ first, and sometimes the only choice.
Campaigns like “The Taste of India” have added an emotional
quotient to its marketing and vouches for itself as a family product
in every household.
Value for money, quality, and availability are other crucial
attributes that have positioned Amul to where it stands today.

Amul’s Competitive Advantage in Marketing

Established in 1946, Amul clearly has a competitive advantage as

the oldest Indian milk brand in India. It has two main advantages
over its competitors in the market.

• Supply chain and distribution channel: Amul has an

organized and systematic supply chain and years of experience
compared to its peers which makes it a tough one to compete with.
Amul has over 5 lakh retailers that make products available
throughout the country.

• Distinguished and wide range of product portfolio: Amul has

a wide range of products that are easily available to the end
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consumers through retailers and exclusive Amul shops. Amul’s
product portfolio analysis reveals that Amul Butter and Ice Cream
are the cash cows in maintaining the company’s brand presence in
the market.

FAQs on Amul Marketing Strategies

What is the Amul business model?

The Amul Model of dairy development is a three-tiered structure

with the dairy cooperative societies at the village level federated
under a milk union at the district level and a federation of member
unions at the state level.

What is the tagline of Amul?

Amul tagline – ‘The Taste of India’

How Amul is using the power of Marketing?

From a low-cost pricing strategy to reaching every nook & corner

of the country, Amul’s marketing strategy has no bounds.

The most popular Amul Girl to its ad campaign –

‘AmulDoodhPeetahai India’ Amul has won the hearts of many by
these popular advertisements.

Amul has reduced its reliance on TV and is seen across various

social media platforms now.

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What is the target market of Amul?

Amul has a very wide target market. Amul is considered a brand

for the entire family. Its target audience starts from consumers
aged 5 to people in their 70s. Amul caters to all income groups.

What is Amul’s pricing strategy?

Amul has a low-cost pricing strategy for products that are

consumed regularly.

This pricing strategy of Amul made it affordable for its target

audience.

Increasing the price of goods proportional to their audience’s

increase in income helped them retain their customer base.

A competitive pricing strategy, such as a one-on-one offer, was

adopted for products facing heavy competition.

Why Amul is a Successful Brand?

Amul has a well-planned and executed logistics and supply chain

model. Amul’s low cost-cost pricing strategy that was affordable
by any income group was one of the main reasons for Amul’s
success. Amul’s tagline- ‘The taste of India’. Banished the notion

34
that bread and butter are a staple of only the British breakfast and
pulled nationalism in.

Why was Amul girl created?

The Amul girl was created as a response to Amul’s rival brand

Polson’s butter- girl.

This sales strategy of Amul was conceived in 1967 once ASP

(Advertising, Sales, and Promotion) clinched the brand portfolio
from the previous agency FCB Ulka.

What is the market share of Amul?

Amul is said to have clocked a growth rate of around 30% and has
a market share of 86%.

What is the Amul’s Marketing Plan?

Some business strategies of Amul or marketing plan of Amul:

• Branding.
• Product portfolio.
• Product Pricing.
• 25-percent Advertising.
• Digital Marketing.

35
 CHAPTER- 4
SWOT Analysis of Amul

Introduction

Swot analysis of Amul. Amul is a dairy and food processing

Indian cooperative society.

Tribhuvandas Patel was the founder of the cooperative brand,

and he laid the foundation of Amul in 1946.

The headquarter of the company is in Anand, Gujarat, India.

Amul is the largest milk & milk-based products producing

company in India. In fact, Indian White Revolution was
initiated and culminated by Amul.

Tribhuvandas Patel, HarichandMeghaDalaya, and Verghese

Kurian were the key figures behind the establishment of the
cooperative society.

Amul’s main products and services are yogurts, milk, milk

powder, butter, pizza cheese, ghee, cheese, cream, ice cream,
beverages, paneer, chocolate, and traditional Indian sweets.

According to an estimate, the annual revenue of Amul in 2020

was 5.4 billion dollars (38,550 crores).

36
However, the brand has employed more than 3.6 million people
to manage its daily operations.

Amul’s main competitors are London Dairy, Baskin Robins,

Nestle, Kwality Walls, Britannia, Vadilal, Mother Dairy,
Havmor, Arun Ice Cream, and Dinshaws.

Today, we’ll discuss swot analysis of Amul. It’s going to analyze

the internal and external factors impacting the world’s top
milk-producing company. Here’s the swot analysis of Amul as
follows;

37
 STRENGTHS

STRENGTHS OF AMUL LARGE CUSTOMER BASE

Amul provides quality products and it helped the cooperative
society to attract both rural and urban demographic. It gives
the company a unique competitive edge over competitors.
That’s how the brand has created a large database of customers
in various markets across India.

QUALITY PRODUCTS
It’s the quality products and services that have allowed Amul to
maintain trusting relations with its customers over the years.
The brand has also developed professional relations with
government health and safety departments. In fact, the
appreciation from such departments increases the credibility of
the company.

RECOGNIZED BRAND
Amul is a famous and well-recognized brand in India because of
the creative baby promotional campaign. It appeals to the
emotions of the customers. When customers are emotionally
attached to a certain brand, then they remember the brand
name while shopping. Only a limited number of brands have
achieved that status.

MARKET LEADER

38
According to an estimate, the growth of ice cream and milk-
based products of Amul has increased more than 30% and 20%
respectively for the past year. It has allowed the company to
achieve over 1/3rd ice cream market share in the Indian
market. In other words, we can say that the cooperative brand
is a market leader.

HIGH GROWTH RATE

Amul has been growing consistently for the past few years.
Even when other businesses were shutting down and falling
apart during the pandemic year of 2020, Amul generated
approximately 5.4 billion dollars with a growth rate. Now, the
company plans to achieve 1 lakh crores by the end of 2025.

39
 WEAKNESSES

WEAKNESSES OF AMUL EXPANSION ISSUES

It’s no doubt Amul offers a diverse product portfolio to its

customers. But some of its products haven’t succeeded during
the expansion phase. Like chocolate couldn’t achieve the same
success as ice cream.

INCREASING COST

40
Amul has a vast structure spread over 13 districts and 13000
villages of Gujarat, and it increases the cost the operational
cost. That’s why the cooperative company keeps on changing its
prices whenever the farm union decides because of the daily
expenses and variable costs.

SUPPLY CHAIN

Although Amul has a vast network it doesn’t have a proper

mechanism of the supply chain. The inconsistent and
unpredictable nature of the supply chain makes the business
very risky.

LAWSUITS
Amul used a condescending tone in its marketing and
promotional advertisement in 2017. However, HUL (Hindustan
Unilever Limited) did take notice of the company’s arrogant
marketing approach and filed a lawsuit against Amul. The
court gave the verdict in favor of HUL and ordered the
cooperative society to shut down its disparaging marketing
campaign immediately.

OPPORTUNITIES

OPPORTUNITIES AVAILABLE TO AMUL

CHOCOLATES

As we know that Amul has launched chocolate. Now, the

company should invest more resources for the improvement of
the product up to the international, and launch a better
marketing campaign to target new customers.

41
GLOBAL MARKET

The global market is full of new opportunities. Especially the

neighboring Asian countries would have great growth potential.
Amul should shift its focus into those markets and expand it
there. It would help the company to increase its sale and
revenue stream.

INCREASING MILK CONSUMPTION

Amul is heavily relying on the Indian market as its main source

of sale of revenue. The sale of the company’s products is lower
in the EU and the US market. However, the milk consumption
rate is increasing in those markets, the expansion in those
markets would increase customers’ market share.

42
 THREATS

THREATS AMUL HAS TO FACEPANDEMIC

The pandemic of covid-19, lockdown, social distancing, and

economic crisis has very badly impacted the buying power of
ordinary users. People have already limited their spending to
basic necessities. If things aggravate, it would impact the
company’s growth.

BAD PRESS

The lawsuit and other scandals have brought a lot of bad press
to negatively highlight Amul’s image in the market. If it keeps
happening like this, it would impact the company’s sales and
profitability.

COMPETITORS

Havmor, London Dairy, Baskin Robins, Mother Dairy, and

Kwality Walls are some of the main competitors of Amul.

Their presence in the market is making it difficult for the

cooperative brand to sell its products.

When the company launches any marketing campaigns, it

increases the operational cost. It’s a loss-loss situation for the
company.

43
 CONCLUSION AMUL SWOT
ANALYSIS

After an in-depth study of the swot analysis of Amul, we have

realized that Amul is indeed the world’s leading dairy products
producing company.

The increasing cost, competitors, bad press, lawsuits, and a

pandemic are some of the main challenges.

Amul should utilize its resources to expand its customers’

market and profitability.

44
 CHAPTER NO. 5
TYPES OF RESEARCH DESIGN

Proper research design sets your study up for success. Successful

research studies provide insights that are accurate and unbiased.
You’ll need to create a survey that meets all of the main
characteristics of a design. There are four key characteristics of
research design.

Neutrality
When you set up your study, you may have to make assumptions
about the data you expect to collect. The results projected in the
research design should be free from bias and neutral. Understand
45
opinions about the final evaluated scores and conclusion from
multiple individuals and consider those who agree with the derived
results.

Reliability

With regularly conducted research, the researcher involved expects

similar results every time. Your design should indicate how to
form research questionsto ensure the standard of results. You’ll
only be able to reach the expected results if your design is reliable.

Validity

There are multiple measuring tools available. However, the only

correct measuring tools are those which help a researcher in
gauging results according to the objective of the research.
The questionnaire developed from this design will then be valid.

Generalization

The outcome of your design should apply to a population and not

just a restricted sample. A generalized design implies that your
survey can be conducted on any part of a population with similar
accuracy.
The above factors affect the way respondents answer the research
questions and so all the above characteristics should be balanced in
a good design.

46
A researcher must have a clear understanding of the various types
of research design to select which model to implement for a study.
Like research itself, the design of your study can be broadly
classified into quantitative and qualitative.

Qualitative research design

Qualitative research determines relationships between collected

data and observations based on mathematical calculations.
Theories related to a naturally existing phenomenon can be proved
or disproved using statistical methods.
Researchers rely on qualitative research design methods that
conclude
“why” a particular theory exists along with “what” respondents
have to say about it.

Quantitative research design

Quantitative research his for cases where statistical conclusions to

collect actionable insights are essential.
Numbers provide a better perspective to make critical business
decisions.
Quantitative research design methods are necessary for the growth
of any organization. Insights drawn from hard numerical data and

47
analysis prove to be highly effective when making decisions
related to the future of the business.

You can further break down the types of research

design into five categories.

1. Descriptive research design

In a descriptive design, a researcher is solely interested in

describing the situation or case under their research study.
It is a theory based design method which is created by
gathering, analysing, and presenting collected data.

This allows a researcher to provide insights into the why

and how of research. Descriptive design helps others better
understand the need for the research.
If the problem statement is not clear, you can conduct exploratory
research.

2. Experimental research design

Experimental research design establishes a relationship

between the cause and effect of a situation.
48
 It is a causal design where one observes the impact
caused by the independent variable on the dependent
variable.

For example, one monitors the influence of an

independent variable such as a price on a dependent
variable such as customer satisfaction or brand loyalty.

It is a highly practical research design method as it

contributes to solving a problem at hand.

The independent variables are manipulated to monitor

the change it has on the dependent variable.

It is often used in social sciences to observe human

behaviour by analysing two groups.

Researchers can have participants change their actions

and study how the people around them react to gain a
better understanding of social psychology.

3. Correlational research design

Correlational research is a non-experimental research

design technique that helps researchers establish a
relationship between two closely connected variables.

49
 This type of research requires two different groups.

There is no assumption while evaluating a relationship

between two different variables, and statistical analysis
techniques calculate the relationship between them.

4. Diagnostic research design

In diagnostic design, the researcher is looking to

evaluate the underlying cause of a specific topic or
phenomenon.

This method helps one learn more about the factors that
create troublesome situations.

This design has three parts of the research

· Inception of the issue
· Diagnosis of the issue
· Solution for the issue

5. Explanatory research design

50
 Explanatory design uses a researcher’s ideas and
thoughts on a subject to further explore their theories.

The research explains unexplored aspects of a subject

and details about what, how, and why of research
questions.

Type of research: Descriptive research

Descriptive research can be explained as a statement of affairs as

they are at present with the researcher having no control over
variable. Moreover, “descriptive studies may be characterized as
simply the attempt to determine, describe or identify what is, while
analytical research attempts to establish why it is that way or how
it came to be. It is Random Research in which all the
questionnaires are distributed among the customers who have
visited/used this product or service, by ensuring that all the
answered answers will be kept confidential.
Through this type of Research it made easy to analysis.

Research method:
Survey and Questionnaire

51
Type of data:

The sources of data include both primary and secondary data

 PRIMARY DATA: Primary data is collected with specific

objective, especially to address the research problem.
The data is gathered by distributing a questionnaire to the
consumers.

 SECONDARY DATA: Books, Journal &Internet.

Review of Literature on Amul

India is the largest producer of milk in the world, accounting for over 13
percent of total milk Production in the world.
This Indian milk production success story was written mainly by millions of
smallholder farmers who dot the country’s milk production landscape. While
yields

Remained relatively low compared to world standards, they have not only
survived but also flourished.
It seems that several factors have enabled it to thrive. Operation Flood, one
of the World’s largest dairy development programs, helping to build strong
networks and connections among millions of smallholder farmers, rocessors,
and urban consumers, was an important tool in achieving this success.

It is well known that all this took place in self-sufficient and highly regulated
domestic markets. For most of the time, commercial imports and exports of
52
virtually all dairy products had been prohibited and processing activity had
been regulated by licensing which favored cooperatives over private
businessmen. Since it is the largest consumer of dairy products in the world,
it consumes almost 100% of its own supply of milk.
Dairy products are a major source of cheap and nutritious food for millions
of people in India and the only appropriate source of animal protein for
Indian population’s large vegetarian segment, particularly among landless,
small and marginal farmers and women. In India, nearly three- fourths of the
population live in rural areas, and about 38% are poor.

The goal of various activities in the dairy sector is to alleviate poverty and
unemployment in the rain-fed and drought-prone regions, particularly in
rural areas. There are currently around70,000 dairy cooperatives in the
village across the country. The cooperative societies are federated into 170
Unions of district milk producers, which in effect has a cooperative
federation of 22 countries.

More than 72mn of dairy farmers are working in milk production. About
total production, India is the world’s leading milk producer, led by the
United States. While milk production has grown rapidly over the past three
decades (courtesy: Operation Flood), the milk processing industry is small
compared to the vast quantity of milk produced annually. Just 10% of all
milk is supplied to approximately 400 dairy plants.

A unique Indian trend is the unorganized milk market, vendors that collect
the milk from local producers and sell the milk in both urban and rural areas,
which handles about 65-70% of national milk production.

The cooperative milk processors have a market share of 60 percent in the

unified dairy industry. Cooperative dairies process 90% of the milk collected
as liquid milk, while private dairies process and sell only 20% of the milk
collected as liquid milk and 80% for other dairy products based on value-
added products. In the current world market situation, the milk and dairy
business landscape isa complex area within the food industry which faces
new opportunities in emerging markets, rising globalization, shifts in
consumer demand, dietary policies and the regulatory environment.
53
 The Global Dairy Platform was developed to optimize the effect of these
changes and to promote and protect the role of the dairy worldwide. India is
a very minor player in the dairy market in the world with this backdrop.
India was a nation predominantly dependent on imports until the early
1970s. Through importing anhydrous milk fat / butter and dry milk powders,
most of the demand-supply differences in liquid milk requirements for urban
Consumers are filled.

But with the launch of Operation Flood Program, the situation has
dramatically changed, and commercial imports of dairproducts have come to
a halt with the exception of very small quantities of occasional imports.
India started exporting surplus dairy products like SMP, WMP, butter and
ghee in the 1990s. Some of the major issues that arise from intense
discussions that need to be addressed as follows.

lack of quality in dairy product

To address global market challenges 2) very low milk yield per cow.
Demand for quality dairy products is growing worldwide, especially in
developing countries, thus in order to improve the quality of milk and dairy
products, Indian dairy industry needs to recognize and resolve Quality-
related issues at all stages from the producer in the village cooperative to the
dairy plant and the final delivery process to the customer.

Facilitate hygiene, sanitation, food safety and operating efficiency

improvements in dairy plants as well as sensitize dairy workers to aspects of
product quality in compliance with international standards.

While innovative techniques in milking should appear in order to increase

the productivity of milking animals, there should be adequate availability of
fodder through better management in all seasons and adequate veterinary
health services for dairy cattle. Therefore, if India wants to prepare for entry
to Global markets, it needs potential take-off strategies.
54
 CHAPTER NO. 6
Research Methodology

Research Methodology refers to a systematic and theoretical analysis of the

processes used in the field of study. In this section, the researcher described
the entire methodological portion. For the purpose of taking the right
decision, analytical methodology is used to collect the information as well as
the data. Each chapter has explored the theory, methodology and model
chosen for the work that was taken to complete each task. Methodological
part of a research assists the researcher by following the right path to
continue the entire work. Even in this section, the sample size and technique
were also discussed.

55
Selection of methodology

Until drafting the research paper, a clear understanding of the measures that
should be taken to serve the purpose is important for the author. The
research onion metaphor is very useful to explain the study measures,
according to Cammarota and Fine (2010). This displays each of the steps
that the author took when carrying out the study. It helps the researcher in a
proper path to compose the research work. There are three key concepts in
the research paradigms. These are ontology, epistemology and axiology.
Jonker and Pennink (2010) thought that ontology had to do with existential
truth. Ontology treats truth, not an abstraction, as the concrete word.
Silverman (2010) added that a subjective perception or understanding can
distinguish truth. On the flip side, the epistemology focuses primarily on the
individual way in which the concept of truth is gathered. This concerns the
essence and reach of the information. Included by McKernan and McKernan
(2013) is distinct from ontology. Axiology has to do with aesthesia, values
and ethics. The method of research can be both qualitative and quantitative.
Qualitative analyzes are about to obtain a detailed insight into the subject
area.

The quantitative approach, according to Tashakkori and Teddlie (2010), is

concerned only with empirical or numerical data and facts. This encourages
56
the analytical element to assess the problems and try to generalize the test.
Nonetheless, for academic research work, a recent trend has been
established, which is to take the approach of triangulation or mixed methods.
Adzhubei et al. (2010) said that both qualitative and quantitative data are
being attempted. Therefore, it has provided a complete understanding of the
topic. Other than that, to evaluate the research tools, reliability and validity
are required. Raan (2013) stated that validity judges whether or not the
research tool can fulfill its function. The measure of stability and
consistency is known as reliability. If the research tool provides similar
results to the context, the method can be considered reliable.

Research paradigm

Bernard (2011) defined the research paradigm as a small, condensed, self-

contained and illustrated procedure pattern or example. Four separate
quadrants may reflect the research paradigm. All quadrants are functionalist,
interpretive, humanist radical, and structuralist radical. In this analysis, the
author has selected the quadrant of progressive humanism. Paradigm is
defined as a three-credential model. It’s ontology, epistemology,
methodology. Research paradigm also helps to generate philosophy of
research.

Positivism is part of the philosophy of science. Somekh and Lewin (2011)

proposed that paradigm is a concept that will guide the researcher in figuring
57
out how to do the research work. It sets out the training collection for the
analysis. It is called from the process of thinking to the action. Ontology is
all about the existing fact, and it is the view of reality’s nature. Harrison and
Reilly (2011) added that epistemology is in fact the assumed relationship to
be built up with the researcher’s knowledge and understanding.
Methodology is all about knowledge-based discovery. This brings a proper
way to the research work.

There are three types of research theories that were discussed by Caporaso et
al. (2010). These are the philosophy of study on positivism, rationality and
perception. Positivism aims to research the social phenomena by using both
the natural science method and the methods. This reflects that statistical
equations and reasoning could be used to calculate social situations
scientifically. Theory of post-positivism work is an upgraded version of the
theory of positivism. Chang et al. (2010) reflected that the theory of post-
positivism is based on the premises and emphasizes the researcher’s
importance position.

This stresses the researcher’s interpretative capacity. Even, the unique

interpretation of that particular situation has also been highlighted through
this philosophy. Charmaz (2011) commented that the realism research
philosophy usually attempt for getting an understanding about the reality
based on the conceptual scheme as well as on the belief system. The theory
of post-positivism is generally used while the author will perform the
research paper based on the ideas and principles that exist. Podsakoff et al.
(2012) found out that the theory of interpretation is regarded as the
interpreter encouraging researchers to understand the elements of a report.
Interpretive thus incorporates the value of humans into the research.
Interpretive researchers should conclude that they have access to truth. Only
through such social constructions could it be believed. There are common
concepts, tools, awareness and language in these constructions.

Justification of choosing radical humanism paradigm

Radical humanism refers to the philosophical system that aims to transfer the
goals of the ancestors, according to Bryman and Bell (2011). These are
divided into two groups, one of which is secular humanism, and the other is
58
humanism. The author has agreed to write this research work based on the
meta-physical stance in order to meet the main purpose of this study. This
focuses primarily on the study result’s probabilistic as well as conditional
generalization.

Venkatesh et al. (2013) stated that post-positivism theory states that,

according to the researcher’s understanding and knowledge, the truth can be
partially understood. The concept of positivism is attacked and claimed by
it. It never stresses the researcher’s value and belief. Therefore, the results of
the research are always generated as free of influence. Wagner et al.

(2011) said that the theory of post-positivism enables both qualitative and
quantitative analysis.

Other than that, it provides the context by encouraging the researcher to

bring forward the critical interpretation, observation, and evaluation. The
author has therefore selected this theory to complete this task. Cammarota
and Fine (2010) thought that the theory of post-positivism makes the author
concentrate on the works and findings of earlier research. This project’s
author is a student, so this work on existing theories is expected to be done.
Therefore, the theory of post-positivism is best suited for this analysis.

59
There are two styles of approaches to science. One is the
deductive approach to research and the other is the inductive
approach to research.

Silverman (2010) claimed that their conceptual insights

differentiate the deductive and inductive analysis methods from
each other. Inductive research approach moves about the more
social situations from the specific instances.

This type of research approach is suitable for areas where

there has been noticeable lack of sufficient research work.

It is better to say that due to data inefficiency this type of

research work generates. It has been identified by Tashakkori
and Teddlie (2010) as the bottom-up research process.

60
Survey Questions

Which age group do you belong?

1. 21-30
2. 31-40

Do you consume milk?

1. Yes
2. No
3. Maybe

If yes, What type of milk do you prefer?

1. Buffalo Milk
2. Cow Milk
3. Other

In what form do you prefer drinking milk?

61
 1. Plain Milk
2. Tea, Coffee
3. Flavoured milk

Do you face problem in the milk

1. Yes
2. No
3. Maybe

If yes, What problems do you face in milk you

consume?

1. Quality
2. Taste

3. Odour
4. Other

Do you demand for changes in milk?

1. Yes
2. No
62
 3. Maybe

If yes, then in what ways?

1. Shelf-life
2. Fat content
3. Ready-to-consume
4. All above

Would you prefer innovation in the traditional milk?

1. Yes
2. No
3. Maybe

Are you optimistic about the techniques of the milk

consumed in the developed countries?

1. Yes
2. No
3. Maybe

63
 CONCLUSION

Amul, the market leader in the Indian milk industry, had pioneered several
progressive initiatives and stayed current through continuous product
development and knowledge of consumer trends. No company in India had
yet tapped into the camel milk market, and this could give Amul a head start
in an unexplored segment.

The company needed to assess its capabilities and competitors in India’s

booming dairy products market, where a growing economy and increasing
health awareness were pushing Indian consumers to look at healthier
nutritional options. Should Amul enter the promising camel milk segment to
take advantage of the evolving preferences of Indian consumers and the
current industry and global trends.

As we all know, Amul has been growing for the past many decades and has
always been one step ahead of its competitors.

We learned here about the business strategies, marketing strategies, and

many other topics of such a huge establishment which helps us understand
these companies and how they work, even better. 

Amul keeps on increasing its customer base every year by its marketing
strategies which are very effective and efficient and are giving Amul the
desired results. 

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 CHAPTER - 7
BIBLIOGRAPHY

https://studylib.net/doc/9551517/research-methodology

https://cupdf.com/download/dl/submit

https://giantmarketingstrategies.blogspot.com

https://iide.co/case-studies/amul-marketing-campaign-case-study/

https://www.superheuristics.com

https://www.igi-global.com

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