Product Mix of Amul
Himanshu Ahire 13 Dhiraj Kakati 05 Executive Full Time PGDM ( 2009-2010 ) Trimester 2
Symbiosis Institute of Management Studies
Symbol of “AMUL”(Anand of “AMUL”(Anand Milk Union Ltd.) is a ring of four four hands, which are coordinated with each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, of Farmer, second hand of Processor, of Processor, third hand of Marketer of Marketer and fourth hand of Customer of Customer .It’s .It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as
Objective
4
Introduction
5
Product
7
MARKETING OBJECTIVES
12
Product STRATEGIES
12
Product
12
Place
12
Price
13
Promotion
13
The different product for different people
14
Amul Product Mix
15
Amul Product Portfolio
15
Product-Width
18
Product-length
18
Product Depth
18
Line stretching
22
Conclusion
22
OBJECTIVE
To understand the product mix strategy of Amul . To correlate the findings with the help of the theoretical concepts that we have been taught during this semester on Marketing Management. To gain an insight on the the product range offered by Amul.
INTRODUCTION
In the year 1946 the first milk union was established. This union union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. The brand name name AMUL means “AMULYA”. This This word derived from the Sanskrit Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2009). Today Amul is a symbol of many things of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers’ organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterate farmers by the private traders. The traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development.
Amul has spurred the White Revolution of India. It is also the world's biggest vegetarian cheese brand.
Members
12 district cooperative milk producers' Union
No. of Producer Members
2.36 million
No. of Village Societies
11,333
Total Milk handling capacity
6.9 million litres per day
Milk collection (Total – 2003-04)
1.81 billion litres
Milk collection (Daily Average 2003-04)
4.97 million litres
Milk Drying Capacity
511 metric Tons per day
Cattle feed manufacturing Capacity
2340 MTs per day
PRODUCT “A product is anything that can be offered to a market for attention , acquisition , use,
or
consumption that might satisfy a want or need “ A product is anything that satisfies a need or wants and a nd can be offered in the exchange. A product can be goods, service or idea. Without product there is no marketing. This includes product variety, quality, product design, and brand name, sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its product very carefully so that the consumer gets only good quality products.
RAW MILK
pasteurization
Condensed Ghee Butter Cream
Packaged Milk Ice cream Beverages
Dried Skimmed Milk Powder
List of Products Marketed Bread spreads
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range
Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza Amul Emmental Cheese
Desserts
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos Fresh Milk
Amul Shakti 3% fat Milk Amul Taaza Taaza 1.5% fat Milk Amul Ganthiya Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix For Cooking Amul Pure Ghee
Sagar Pure Ghee Amul Cow Ghee Amul Malai Paneer Mithai Mate Pro-biotic Dahi Masti Dahi Utterly Delicious Pizza
Powder Milk
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Amul Ice creams Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi
Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond)
(Vanilla, Strawberry, Pineapple, Rose, Chocolate) Simply Delicious Ra nge (Vanilla, Nature's Tr Treat eat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (Cheese with Almonds, Dates with
Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi
Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla,
Banana, Mango, Pineapple) Health Isabcool Chocolate & Confectionery
Amul Milk Chocolate Amul Fruit & Nut Chocolate Brown Beverage •
Nutramul Malted Milk Food
Milk Drink •
Amul Kool Flavoured Milk
Health Beverage •
Amul Shakti White Milk Food
Ready to Serve Soups •
Masti Tomato Soup
Masti Hot & Sour Soup
MARKETING OBJECTIVES
Identify & cater to emerging markets all over India
•
Create awareness about the brand name and increase customer loyalty.
•
Tackle the problem of imitation of design.
•
Increase retailer satisfaction by providing better margins. ma rgins.
•
PRODUCT STRATEGIES
Product Create awareness about its different brands thereby enabling the customer to differentiate between its
•
various brands. Copy-write the packaging design to preserve the distinguishing identity barring competitors from
•
imitating the same. Introduction of larger volume pouches in line with economy packs to provide large scale buyers price
•
benefits. Different shaped pouches for its products for easy identification, e.g Square shaped pouch for Amul
•
Tazaa, rectangular shaped for Amul Gold, etc.
Place Place refers to marketing activities that make products available to consumers at the right time in a convenient location. It is the process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple. AMUL has developed federation and AMUL parlors located in several part of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF look after the disbursement of product to the various marketing channels.
Price It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well – known, well – regarded products, partly because of the image created through advertising and other promotions. This includes list price, discount, allowance, and credit terms. The prices of products of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of AMUL products. However, the price is inclusive of several elements like, •Cost of milk. • Labour cost. •Processing cost. •Packaging cost. •Advertising cost. •Transportation cost. •Sales promotion costs. •Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products.
Promotion Place refers to marketing activities used to communicate positive, information about an organization, its products and activities to directly or indirectly expedite exchanges in target market. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers. AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.
THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE
Amul never forgot its “primary customer”
Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth
Amul launched Chocolate milk under brand name of ‘Amul Kool Koko’ targeting targeting the youth.
Product for diabetic people
India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics
Product for the health conscious
Amul Launched “low fat, low cholesterol bread spreads” Product for the price sensitive India
Low Priced Amul Ice Creams and affordable ‘sagar’ whitener
Product for the urban class
Amul launched emmental, gouda and pizza mozzarella cheese
AMUL PRODUCT MIX
Amul Product Portfolio Amul mainly produces dairy product which falls under nondurable goods category but also produces durable goods
Examples Durable Goods :-Milk Powders,Ready to Serve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams
Dairy
Non Dairy
k l k Fres h Mi l k Drin ks & l k Mi l s ts Desser t Bread Spreads C heese s ts Prod uc t
ls Veg . Oi ls Snac ks
an t Food ta Ins t In
Product Mix -Width
Bread Spreads
Cheese
Desser ts
Butter
Shredded Pizza Cheese.
AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Low Fat Bread Spread.
Emmental Cheese.
AMUL Amrakhand.
Cooking Butter.
Gouda Cheese.
AMUL Mithaee Gulabjamuns.
Malai Paneer (cottage cheese) Frozen and Tinned.
AMUL Mithaee Gulabjamuns Mix.
Utte Utterl rly y Del Delic icio ious us Pizz Pizza. a.
AMUL AMUL Mith Mithae aeee Kul Kulfi fi Mix. Mix.
h t h t n n e e L L i x i x M M t t c c u u d d o r o r P P
Cooking
Health Drink
Amul / Sagar Pure Ghee
Nutramul
Amul Malai Paneer
Amul Shakti Health Food Drink
MithaiMate Pro‐bioticDahi MastiDahi UtterlyDeliciousPizza
Milk Drinks
h t h t n n e e L L i x i x M M t c tc u u d d o r or P P
Powder Milk
Fresh Milk
Amul Kool Millk Shaake
AmulSprayInfantMilk Food
AmulFreshMilk
Amul Kool
AmulInstantFullCream Milk
AmulGoldMilk
Amul Kool Cafe
Sagar Skimmed Milk Powder
AmulTaazaDouble TonedMilk
Kool Koko
Sagar Tea Coffee Whitener
AmulLiteSlimandTrim Milk
Nutr Nutram amul ulE Ene nerg rgy yDr Drin ink k
Amul Amuly yaDa aDair iry yWh Whit iten ener er
Amul AmulF Fre resh shC Cre ream am
AmulKoolFlavoured BottledMilk
AmulShaktiTonedMilk
AmulKoolFlavoured TetraPack
AmulCalci+
AmulMastiSpiced Buttermilk
AmulButtermilk
AmulLassee AmulKoolThandai
Table 3
Product-Width
The width of a product mix refers to the total number of items in the mix. Example: The total number of items are 8. ( bread spreads , cheese , desert, cooking,health drink, milk
drinks,powder milk & fresh milk
Product-length The length of a product mix refers to the total number of items in the mix. Example: The total Length of Amul’s Product mix is 42 The Total width of Amul’s Product mix is 8 ( No of lines)
Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6
Product Depth The depth of a product mix refers to how many variants variants are offered of each product in the line Amul’s Product Depth
Name of Product
Variants
Price
Amul Butter
100g Pack
Rs. 25
Amul Butter
500g Pack
Rs. 122
Delicious Table Margarine
100g Pack
Rs. 13
Delicious Table Margarine
500g Pack
Rs. 60
A m ul Li t e L o w f at 200g Tub Breadspread
Rs. 32
Name of Product
Variants
Price
Amul Cheese
400g Tin (EOE)
Rs. 117
Amul Cheese Slices
200g Pack
Rs. 77
Amul Cheese Chiplets
200g Pack
Rs. 66
Amul Cheese
1kg Block
Rs. 233
Amul Cheese Spread
200g Tub
Rs. 50
Amul Pizza Cheese
200g Pack
Rs. 55
Amul Emmental Cheese
400g Pack
Rs. 160
Amul Gouda Cheese
250 g
Rs. 115
Amul Gouda Cheese
1 kg
Rs. 440
Amul Malai Paneer
200g Dice Pack
Rs. 36
Amul/Sagar Pure Ghee
1 Litre Tin
Rs. 265
Amul/Sagar Pure Ghee
500ml Pouch
Rs. 125
Amul/Sagar Pure Ghee
2 Litre Tin
Rs. 495
Amul/Sagar Pure Ghee
5 Litre Tin
Rs. 1,225
1 Ltr Refill
Rs. 260
Amul Pure Ghee Amul/Sagar Pure Ghee
1 Ltr Pouch
Rs. 242
Amul Shrikhand
500g cup Elaichi
Rs. 53
Amul Shrikhand
500g cup Mango
Rs. 55
Amul Shrikhand
500g cup Kesar
Rs. 66
Name of Product
Variants
Price
Amul Shrikhand
500 g Badam Pista
Rs. 61
Amul Mithaee Gulabjamun
1kg Tin
Rs. 115
Amul Mithaee Gulabjamun
500g Tin
Rs. 64
Nutramul
Amul Chocolates
Amul Chocolates
Amul Chocozoo
Amul Chocozoo Tub
Amul Taaza Double Toned Milk Amul Taaza Double Tone Milk Amul Tazza Toned Milk Nothern Eastern States
Amul Gold Milk Amul Lite Skimmed Milk
Amul CALCI + high calcium milk Mithaimate Sweetened Condensed Milk
Rs. 110
35g Milk 35g Fruit & Nut
Amul Almondbar
500g Refill
Rs. 15 Rs. 16
35g
Rs. 15
232g Tin
Rs. 125
500 g
Rs. 180
1 Litre Tetra
Rs. 35
200 ml Tetra
Rs. 9
1 Litre Tetra
Rs. 38
1 Litre Tetra 1 Litre Tetra
Rs. 39 Rs. 40
1 Litre Brik
Rs. 42
400g Can
Rs. 58
Name of Product
Amulspray IMF
Variants
500 g Pouch
Price
Rs. 110
Amulspray IMF
500g Refill
Rs. 111
Amulspray IMF
500g Tin
Rs. 115
Amulspray IMF
1 kg Pouch
Rs. 202
Amulspray IMF
1 kg Tin
Rs. 222
Sagar Skimmed Milk Powder
500g Pouch
Rs. 110
Amulya Dairy Whitener
500g Pouch
Rs. 113
Amulya Dairy Whitener
500g Refill
Rs. 114
Amulya Dairy Whitener
1 kg Pouch
Rs. 227
Amul Shakti Health Food Drink (Kesa Almond)
Amul Kool (Kesar, Elaichi, Rose) Amul Kool (Kesar, Elaichi, Chocolate)
Amul Kool Kesar Amul Kool Cafe Amul Kool Cafe Amul Kool Cafe Amul Kool Koko
500g Refill
Rs. 115
200ml Bottle
Rs. 12
200ml Tetra
Rs. 12
250 ml can 200 ml Glass Bottle 250 ml Can 200 ml Tetra Brik 250 ml Can
Rs. 25 Rs. 15 Rs. 22 Rs. 15 Rs. 22
Amul Kool Millk Shaake (Ma (Mango, ngo, Strawberry S trawberry & 220 ml Can Badam)
Rs. 22
Name of Product Amul Kool Millk Shaake (Mango & Strawberry)
Variants
Price
180 ml Tetra Pack
Rs. 15
Amul Fresh Cream
200 ml Tetra Brik
Rs. 30
Amul Fresh Cream
1 Lit Tetra Brik
Rs. 113
Amul Masti Spiced Butter milk Amul Masti Spiced Butter milk
200ml Tetra Brik
Rs. 10
1 Litre Tetra Brick
Rs. 35
Amul Lassee(Rose) Amul Basundi Amul Mithai mate
200 ml Tetra Brick l Ltr Tetra Brick 400 g EOE can
Rs. 12 Rs. 103 Rs. 58
Line stretching Every company’s product product line covers a certain part of the total possible range. range. Line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line down market, up-market or both ways. Example :
Amul is now aggressively adopting the down market stretch by introducing ( CHHOTA
AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to individual of low income group.) Amul has been introducing products with consistent value addition but never left the core philosophy of “Providing milk at a basic, affordable price”
Conclusion This summarizes our research work on Amul’s Product Mix. There There are various other strengths of Amul’s marketing but we have only brought brought into context the above topic.
