Tag Archives: Amul Market share

Amul – The taste of India

Derived from Sansrit word “Ämulya”, Amul has been an iconic brand in India with superior product quality, supply chain infrastructure and distribution.

Amul Brand Basket

Brand Amul owned and managed by Gujarat Cooperative Milk Marketing Federation (GCCMF) has 123 brands listed under its name. Liquid milk however contributes to 40% of the Amul’s revenues.

Amul Products

Amul Products

Market Share

The brand positions itself as a brand of both masses and classes, unlike competitors like Nestle. Gujarat Co-operative Milk Marketing Federation (GCMMF), owners of Amul brand of milk and dairy products, posted sales of Rs 11,670 crore for the year ended March 2012, almost 55% more than Nestle India’s Rs 7,541-crore sales.

Amul owns 85 percent share in butter market and 75 percent in cheese share market. It may be mentioned here that Amul is the market leader in Rs 600 crore cheese market in India with 65-66% share. It also has  88% market share in butter, 63% share in infant milk and 45% market share in dairy whitener. Amul also enjoys a 26% share in the 25,000-crore packaged milk market.

With expected growth rate of 20 percent, 12% growth rate can be attributed to price rise and another 8 percent to rise in demand for dairy products.

Amul Production Facilities

One of the best known examples of policy success in India has been the “successful implementation of white revolution” and equally celebrated is the role of the brand in making this event a big success.

From two diary cooperatives and 250 litres of milk per day to a network of 31 lakh dairy farmers, who are members of more than 15,000 village co-operatives. (Source: http://www.firstpost.com/election/farmer-empowerment-is-amul-model-better-than-retail-fdi-551382.html)

Milk producers sell their produce to village co-operatives, which is affiliated to district milk co-operative union and then in turn to the state level milk marketing federation. A network of 8000 distributers makes Amul products available at over 4 lakh retail outlets in India.

GCMMF is expanding its production capacity by 25% to meet the growing consumer demands and plans to invest in INR 3000 crores in 9 new milk plants in India in next 4-5 years.

Amul Marketing Strategy

In order to maintain costs at lower levels, Amul India has never spent more than 1% of its budget on advertising. However it has still been successful in creating the same impact, it created 60 years ago through its simple yet appealing ad campaigns.

Talk about universally recognizable Brands grown in India, and one prominent contendor is the Amul mascot, a cute and chubby girl usually dressed in a polka dot. Over 45 years of existence, the brand has always given a fresh flavour to Amul Mascot.

Amul Ad - Shila ki makhani

Interesting Ad – Shila ki makhani

The Amul Girls and its new Witty avatar was the brain child of Sylvester da Cunha, the managing director of the advertising agency AS. The ads were designed as a series of hoardings with designs relating to day-to-day issues.

Amul Dairy Cooperatives, on the occasion of completing its 50 years of advertising, launched a book called ‘Amul India’.

Amul Celebrating 50 years of Advertising

Following the idea of thoughtful advertising , 35 years ago the brand created magic with its ‘Mero gaam Katha parey…’ the title song of national award winning film ‘Manthan’, which told the story of Amul model of co-operatives.

Amul Co-operative Model

Amul Co-operative Model

The Manthan music video has an unique emotional appeal. To recreate the magic, in 2012 brand came up with a fresh commercial with the lines like ‘khush rahe tera beta beti’ in the new music video. It shows how the efforts of a rural milk producer takes care of nutritional requirements of a child of a urban mother.

Amul Ad - Khush Rahe Tera Beta Beti

Amul Ad – Khush Rahe Tera Beta Beti

Amul Products Packaging

Amul’s marketing strategy has always been consumer centric. Thus it is kept in mind that the packaging of all Amul products appeals to the emotional side of the consumer.

Use of Expression

For example the human facial expression of delight on the cheese variant packing reveal the pleasure people derive from consuming cheese and cheese products.

Amul

Use of expression in Packaging

Information

Also the need to highlight the nutrient value and best possible use of the product is an important feature of all Amul products packaging.

Use of Information in Amul's packaging

Use of Information in Amul’s packaging

Protection

Recently Amul has focused largely upon capturing the branded tetra pack market with, variants that would last for over 2 weeks to three months even without refrigeration.

For example Amul Moti, a new variant of toned milk is priced a little higher than the fresh milk pouch. The UHT treated milk is then packaged in five-layered special pouch to increase its self life to 90 days.

Amul Tetra packTo Know More about Amul Story watch this Video