2. History of Amul
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
Amul has spurred the white revolution of India, which has made India the largest
producer of milk and milk products in the world and the White Revolution has
finally created a billion-dollar brand.
Today Amul dairy is No. 1 dairy in Asia and No. 2 in the world , which is matter of
proud for Gujarat and whole India.
Amul has more than 150 chilling centers in various villages.
4. The Amul Model
Under the model, the entire value chain – from procurement, to processing and marketing – is controlled by
the farmer’s cooperative, which is directly linked to the final customer.There are no middlemen; the
cooperative collects the milk directly at the producers’ doorsteps
5. Reason For Success
1. Low Cost Strategy
a. Amul adopted a low-cost price strategy to make its products.
b. Affordable and attractive to consumers by guaranteeing them value for money.
2. Diverse Product Mix
3. Strong Distribution Network
a. Amul products are available in over 500,000 retail outlets across.
b. India through its network of over 3,500 distributors.
4. Robust Supply Chain:
a. Hierarchical network of cooperative.
Members 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing Capacity: 3500 Mts. per day
8. Expansion to foreign shores
GCMMF had signed an agreement with Wal-Mart to stock its shelves with
products under its Amul brand name.
Amul processed cheese, pure ghee, Shrikhand, Nutramul, Amul Mithai Gulab
Jamuns are few of the products marketed in the US markets.
9. Industry Threat of new entry is high as there is no entry barrier
Analysis Bargaining power of the supplier is low as the suppliers are
the rural milk producer
Porter’s Threat of substitute is high because of availability of
5 Bargaining power of buyer is high as the competition
Forces Competitive Rivalry is high due to other brands
and Local players
Uses a variety of media to
Most famous is billboard
The endearing polka dressed
girl and pun at
various issues increased
brand’s fan following.
Wide range of product
categories caters to
consumers across all market
segments. For example, Amul
Kool is targeted at children,
while teenagers prefer Kool
Café, as it has a cool imagery
associated with it.
1. Changing retail environment
2. Striking out on its own, with
Amul Outlets or parlours to
deliver consumers total brand
3. There are now over 4700
Amul parlours across the
country, which contributed 3%
to the brand’s total turnover .
12. SUCCESSFUL PRODUCT STRATEGY
1. Product Repositioning Strategy-
a. Jaldhara – Narmada Neer
2. Product Overlap Strategy –
a. Amul Processed Cheese Vs Cheese Spread
b. Nutramul Energy Drink Vs Amul Kool
3. Product Design Strategy –
a. Use of Utterly – Butterly Girl since 1967
4. Product Elimination –
a. Eliminated Jaldhara – bottled water
5. Product Positioning Strategy-
a. Low price Amul Ice - Creams made Kwality walls life hell.
b. Chocolate milk was launched ‘Amul Kool koko’
13. Amul's campaign
For five decades now, Amul’s blue-haired girl in a polka-dotted frock has remained relevant by
commenting on the most current issues and significant events with witty humour and timely
punchlines.When India conducted a surgical strike, Amul did not respond with an ad immediately.
They waited to see public response, following which an ad saluting the armed forces came out.
14. 5 M’S OF ADVERTISING
The decision making in advertising is a five-step process. It is called ‘Five M's of Advertising.’ It consists of:
16. Amul’s Outdoor Plan
Money: Amul is
expected to raise
300 cr for the
spends only 0.8 %
Mission : To give
health and fitness
Slim & Trim milk,
for gym and
AD-Campaign can be
surveyed, ROI can be
analysed to know
engagement of our
advertising, Point of sale
message, Ads are
often designed to
appeal to the
emotions with a
humour or a
17. What more can Amul do?
Amul can venture out on new products like Toned milk, Condensed milk that can
be used for sweets, Baby food products,
There are certain product like Amul basundi, gulab jamoon, chocolates etc which
are not as popular as Amul ice cream. Amul must try to understand the cause of
this through thorough market research and work on improving these products
Though Amul hoardings are a huge success, it can penetrate even better in the
rural areas by advertising through the media viz cable channels and newspapers.
Sponsoring shows in TV, sports events can be of great help
● Amul has risen from Indian soil and it remains Indian in every sense.
● There is ample scope in the low priced segment as also in other categories.
● There are a significant number of retailers who are currently stocking more
than two brands.
● Amul has the opportunity to capture the more evolved young adults and
children who are open to new products provided they meet their expectations.