01-12-2012, 11:54 AM
History of Amul
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HISTORY
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 organisation, 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].
Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade [3].
Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06) [4]. Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets [5]. Other potential markets being considered include Sri Lanka.
Market segmentation
Market segmentation is the process in marketing of grouping a market (i.e. customers) into smaller subgroups. These markets are often termed niche markets or specialty markets. These segments are fairly homogeneous in their attitudes about certain variables. Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way.
The purpose of segmentation is to identify and target prime customer groups (eg the 20% that account for 80% of your sales) so that you get the maximum return from a limited marketing budget (the most bang for your buck).
The Process-Data Model Of Marketing Segmentation
Above given is a generic process-data model is given for the whole process of segmenting and positioning as a basis of deciding on the most effective marketing strategy and marketing mix.
This model consists of the three main activities: segmenting, targeting and positioning. It shows the chronological dependency of the different activities. On the right side of the model the concepts resulting from the activities are showed. The arrows show that one concept results from one or more previous concepts; the concept can not be made when the previous activities have not taken place. Below the three main activities are shortly described as well as their role as a basis for the next step or their dependency on the previous step.
Competition Based Pricing
Setting the price based upon prices of the similar competitor products.
Amul’s new launch Choco Crunch Pricing is based on three types:-
1) Product is lasting distinctiveness from competitor's product. here we can assume a) The product has low price elasticity. b) The product has low cross elasticity. c) The demand of the product will rise.
2) Products have parishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness.
3) Products have little distinctiveness from competitor's product. assuming that: a) The product has high price elasticity. b) The product has some cross elasticity. c) No expectation that demand of the product will rise.
Price is the factor that beats out all other choclates in the competition. Such as Cadbury. If you have been you must have seen that Amul and Cadbury frenchise are right next to each other. But if given the choice people would prefer Amul products and not Cadbury as the prices of Amul product is quite cheap as compared to their competitors like Cadbury and this has worked as an advantage for Amul since most of the customers prefer amul product over cadbury’s product, due to this price factor.
The prices for an average milk product ranges between Rs. 20 and Rs. 35.
Above A Pull Strategy (Left) Push Strategy (Right).
Communication by the manufacturer is not only directed towards consumers to create demand.
A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name.
A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.
B2C and B2B
The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer. There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is MIPS: a method for managing industrial positioning strategies by Muhlbacher, Dreher an Gabriel-Ritter (1994).