Marketing Strategy of Amul

by

Amul’s marketing strategy encompasses various aspects of the business, from segmentation and focusing, but also the vision and mission of the business and the various aspects that Amul follows to make it the best brand it is in the market. What is the Marketing Strategy of Amul? Let us discuss.

Did You Know About Amul?

Company: Amul

CEO: R.S. Sodhi

Founder: Verghese Kurien And Tribhuvandas Kishibhai Patel

Year founded: 14 December 1946

Headquarters: Anand, Gujarat, India

Annual Revenue (FY2020): ₹39,248 crore

Profit | Net income (FY2020): ₹38,542 crore

Products & Services: Amul Milk · Butter · Bread Spreads · Cheese · Paneer · Dahi · Cheese Sauce · Beverage Range · Ice Cream · Ghee · Milk Powders · Chocolates · Fresh Cream

Competitors: Mother Dairy | Prabhat Dairy | Osam Dairy

Website: www.amul.com

 Fun Fact About Amul: Every day, Amul collects 447,000 liters of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. A unique, Rs 2,200 crore (Rs 22 billion) enterprise.

Segmentation, Targeting, and Positioning in the Marketing Strategy of Amul

The division of Amul is that of the mass population, and generally, it is possible to find people of all categories of age and demographics taking pleasure in Amul items. It is because Amul is not just found in Ice Cream but also in milk, Butter, Cheese, and other similar products.

Since it offers a vast range of goods and services in its collection and a wide range of products, it doesn’t differentiate between its clients but instead follows a general marketing principle. This principle has proven to be very successful for Amul’s advertising strategies for Amul. Similar to the target people are the normal middle-class people.

This is because high-end customers can access various high-end products like ice cream. But high and lower-end consumers are the main target for other products such as Butter or cheese. When it comes to positioning, Amul has a top-of-mind position since it is the primary name that comes to mind when you think about ice cream, milk cheese, Butter, cheese, or any other milk-based products.

Marketing Strategy of Amul

Mission of Amul

“We, the motivated and dedicated workforce at Amul, are committed to producing wholesome and safe foods of excellent quality to remain the market leader by developing a quality management system, state-of-the-art technology, innovation, and eco-friendly operations to achieve delighted customers and milk producers.”

The Vision of Amul

Amul has the vision to provide more and more satisfaction to the farmers, employees, and distributors.

Tagline of Amul

The Test of India

Competitive Advantage in the Marketing Strategy of Amul 

There are two main advantages to the competition that Amul has over other brands. Amul in comparison to other brand names. The first and most important comes its Supply chain. Because of the number of dairy producers, Amul has tremendous power and stability throughout the supply chain. This is why it can produce huge quantities. The other competitive benefit is the broad product line-up, which means it can operate Amul shops and include its products in stores. The portfolio of products is so that items like Butter and Ice cream are cash cows for the company.

BCG Matrix in the Marketing Strategy of Amul

If we look at the BCG-based diagram, Amul has certain products considered stars, whereas other products are cash cows. Amul chocolates are question marks due to their small percentage of the rapidly growing market. Amul Ice Cream and Amul’s Butter can be considered cash-flow generators due to their significant market share, and the market is expanding with the growth in the population.

However, Dairy products such as milk, buttermilk, cheese, lassi Amul kool, etc., have plenty of direct and indirect competition within their particular niche. When compared to similar products that are similar to the same type of product, Amul can boast a significant market share. Therefore, these products are a big hit for Amul.

Distribution strategy in the Marketing strategy of Amul

Like every FMCG firm, Amul concentrates on breaking the bulk. It offers huge quantities to its C&F, which must make the proper arrangements for storing Amul products in large quantities. The C&F will then transfer the product to distributors who sell the product to retailers. Additionally, Amul has a direct sales team that sells its products to modern retailers. The company also has exclusive Amul stores that offer all products under the Amul brand. In Amul’s marketing strategy Amul, distribution is an additional brand advantage.

Brand equity in the Marketing strategy of Amul

Marketing Strategy of Amul

Thanks to the outstanding products, prominent positioning, amazing supply chain, and distribution channels, and lastly, the point of buying brand as well as the marketing that is Amul’s brand, Amul Woman, Amul finds itself in an extremely strong position as far as the strength of its branding equity is involved. The Amul brand is worth $3.2 billion, according to the 2013 report on equity in brands. In addition, most analysts believe that Amul could have crossed 4 billion dollars; however, the decline in the rupee caused the gap.

Competitive analysis in the marketing strategy of Amul

Amul is among the top competitors that have entered the market over the past ten years and have grown robustly. Most of these ice creams were regional but held their region-wide market. So, although each of these brands may not be an effective rival when combined and in their net total, they give a formidable challenge to Amul.

A few of them are Kwality Wall, Vadilal, Havmore, Dinshaws, Arun Ice Cream, Baskin Robbins, London Dairy, and other companies. Many of these ice cream brands have their niche or geographical focus areas. Arun Ice cream is a favorite in the south, whereas Havmor and Vadilal are popular in the west.

In addition to these players who are organized in addition to these organized players, many non-organized local players provide an opportunity to Amul through their stores and own versions of Ice cream. But, competition in Butter and Cheese, as well as the other products made of dairy, is less.

Market analysis in the marketing strategy of Amul 

It is true that the FMCG market is extremely competitive and is well-known to be a mixture of both organized and unorganized players. Similar to FMCG, direct competition is just as important in the same way as indirect competition. For instance, when ice cream or cold milk products don’t sell in winter, cheese and Butter will do equally well.

On the contrary, in summer, there is a time when the demand for ice cream rockets to the point that businesses cannot satisfy expectations. Therefore, when we examine the markets of Amul, it is evident that in certain instances, Amul is the market leader, while in other goods, it is an opponent in the market.

Customer analysis in the Marketing strategy of Amul

The majority of clients of Amul are from both the Sec C and Sec B segments, which are characterized by middle-class and lower classes. Amul generally uses massive marketing and thus is targeted at these two classes most. Customers with a high-end lifestyle tend to favor Naturals Baskin Robbins or another similar brand that matches their tastes and status.

This concludes our analysis of Amul’s marketing strategies. Employed by Amul. How do you feel about the Amul brand? Why do you think it’s the leader in the market?

You May Also Like:

This is the Marketing Strategy of Amul. Please let us know if you have additional suggestions to add.

Let us know What do you think? Did you find the article interesting? 

Write about your experiences and thoughts in the comments below.