31-01-2013, 02:51 PM
Amul India Ltd.
Amul India.doc (Size: 2.85 MB / Downloads: 55)
Introduction
Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion (samples, coupons, cash refund offers, process off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations); trade promotion (prices off, advertising and display allowances, and free goods); and sales force promotions (trade shows and conventions, contest for sales and specialty advertising). These tools are used by most organizations, including non-profit organizations. Churches, for example, often sponsor bingo games, theatre parties, testimonial dinners and raffles.
A decade ago, the advertising to sales-promotion ratio was about 60:40. Today, in many consumer packaged-good companies, sales promotion accounts for 65% to 75% t of the combined budged. Sales promotion expenditures have been increasing as a percentage of combined budget expenditure annually for the last two decades. Several factors contribute to this rapid growth, particularly in the consumer markets. Promotion is now more accepted by the top management as an effective sales tool; more product managers are qualified to use sales-promotion tools; and product managers are under pressure to increase current sales. In addition, the number of brands has increased; competitors use promotions frequently; many brands are seen as similar; consumers are more price-oriented; the trade has demanded more deals from the manufacturers; and the advertising efficiency has declined because of rising costs, media clutter, and legal restraints.
Purposes of Sales promotion
Sales-promotion tools vary in their specific objectives. A free sample stimulates consumer trial, whereas a free management-advisory service aims at cementing long-term relationship with a retailer.
Sellers use incentive-type promotion to attract new, to reward loyal customers, and to increase the repurchase rates of the occasional users. Sales promotion often attracts brand switchers, who are primarily looking for low price, good value, or premiums. Sales promotions are unlikely to turn them into loyal users. Sales promotions used in markets of high brand similarity produce a high sales response in the short term but little permanent gain in the market share. In markets of high dissimilarity, sales promotion can alter market shares permanently.
Farris and Quelch cite a number of sales promotion benefits flowing to manufacturers and consumers. Sales promotion enable manufacturers to adjust to short-term variations in supply and demand. They enable manufacturers to test how high a list price they can charge, because they can always discount it. They induce the customers to try new products instead of never straying from current ones. They lead to more varied retail formats, such as every-day-low-price store and the promotional-pricing store. They promote greater consumer awareness of prices. They permit manufacturers to sell more than they would sell at list price. They help the manufacturer adapt programs to different consumer segments. Consumer themselves enjoy some satisfaction from being smart shoppers when they take advantage of price specials.
MARKETING STRATEGY OF AMUL:
Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Union Limited).
The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India[1]. It is based in Anand town of 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, which has made India one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand [2].
Company profile:
In the year 1946 the first milk union was established. This 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’ UNION. This union selected the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the 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, Amulspray, 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 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative 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 illiterates’ farmers by the private traders.
CONCLUSION
Amul must come up with new promotional activities such that people become aware about Amul Prolife Sugar free ice cream
Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other Prolife Sugar free ice cream brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.
Amul must come up with new promotional activities such that people become aware about Amul Milk like Amul Tazza & Gold.