Marketing Mix of Amul focuses on 4Ps Product, Place, Price, and Promotion. Marketing Mix is a framework which helps Amul to decide its Product, Price, Promotion and Distribution Strategy.
Amul is definitely an “Amoolya” brand. Amoolya in Hindi means something which is invaluable or priceless. Amul has marked its presence in almost every corner of the country. Every product that is made of Milk is made of Amul Product. Due to an aggressive marketing strategy, Amul is able to create a good brand image. Amul is able to win the hearts of the Indian people. Amul is known to be a highly valued brand with an Indian origin. Amul was formed in 1946 to stop middlemen exploitation. It is a brand of the Gujarat Cooperative Milk Marketing Federation (GCCMF). Amul was formed because of a revolt of dairy farmers. Most of the leading Milk and Milk Product Manufacturers are competing with Amul. But aggressive marketing strategy has made Amul the number one player in the dairy industry and it is also said that the Marketing Mix of Amul has made it a number one player. In this article, we will analyze the Marketing mix of Amul.
Product in the Marketing Mix of Amul – Amul Product Strategy
Amul has a strong product portfolio. Amul product range consists of Dairy products. Some of the Cash Cow Products are Amul Gold Milk, Amul Dahi, Amul cheese, Amul butter, and Amul Ice cream. Amul ice cream is ranked among the top 5 brands of the country.
Consumption of Amul Paneer, Amul Milk, and Amul Dahi is increasing day by day. Amul holds a market share of 26.2% in the packaged milk product segment. Amul Chocolates are good in taste and also preferred by a large population of the country.
Some of the Amul Products are:
- Amul Milk
- Amul Gold Milk
- Amul Milk powders
- Amul Cheese
- Amul Kool and its variants
- Amul ice cream
- Amul Dahi
- Amul Paneer
- Amul Ghee
- Amul mithai mate
- Amul Nutramul
- Amul chocolates
- Amul Masti
- Amul Buttermilk
- Amul Flavoured Milk
- Amul Shrikhand
Thus the product portfolio of Amul is constitutes of Milk and Milk Products. The main competitors of Amul are Dinshaws, Vadilal, and Havmor, Mother Dairy, etc. in the ice cream segment. In the milk segment, Amul is competing with Sanchi Dairy, Mother Dairy, Britannia, etc.
Price in the Marketing Mix of Amul – Amul Pricing Strategy
Amul has a competitive pricing policy. Some might call it penetrative pricing. But a penetrative pricing approach is used where the market has a high degree of competition and the player seeks to position himself on the market by providing products at lower prices. However in the case of Amul, when Amul launched, there were no national players and the dairy industry was unorganized. During the phase of launch itself, Amul had a goal to provide end-customers with their goods at the most reasonable prices. And the same vision is still in place today.
Today also, you will find that Amul butter, milk, and cheese are available at affordable prices keeping in mind the end customers. You may call these products costly, but the cost has nothing to do with Amul’s strategy. Remember that transportation costs, as well as storage and distribution costs, are very high in FMCG. Thus, as the cost of transportation, storage, and distribution has increased over the years, so has the cost of Amul products gone up. But considering their value for the average Indian consumer, these products are still priced at an affordable rate. Amul butter is preferred by a large population of the country because of its taste and aggressive and informative advertising strategy of Amul. Amul is no. 1 brand because of this pricing strategy.
Place in the Marketing Mix of Amul – Amul Distribution Strategy
Amul has a large distribution network because its ice creams, milk, cheese, and butter are found nearly everywhere. Amul distribution strategy is one of the best distribution strategies of its kind. As it is an FMCG commodity, Amul practices the process of splitting the bulk. The initial production of the plant is in bulk. Later on, this volume gets smaller and smaller, and then a single slab of butter or ice cream is sold at the store site.
There are two separate networks by which Amul Delivery takes place. One is the distribution channel responsible for the collection of milk by dairy cooperatives. The other is the sales system responsible for delivering the finalized product to end-users.
In the procurement channel, the milk is acquired separately from farmers and transferred to cooperatives. The cooperatives then gather all this milk and give the bulk to the Amul manufacturing plant. Milk is used at the production plant to produce the finished goods.
Agents, manufacturers, suppliers and retailers are interested in the sales channel. There are also Amul shoppers who sell all the product in the Amul portfolio.
Structure of Distribution channel is as follows:
Amul Manufacturing Unit >>> C & F agent >>> Distributor >>> Dealer / Amul Outlets / Retailer >>> Customer
Amul >>> Modern retail
An Amul product goes through a lot of transportation. Distribution channel of Amul is such that its product reaches every corner of the country in the desired time.
Promotions in the Marketing Mix of Amul – Amul Promotion Strategy
Amul Girl is the center of attraction in the Promotion mix of Amul. Famous Amul girl was a creative idea of Mr. Eustace Fernande. Amul hoardings primarily feature recent happenings.
The promotions of Amul are mainly for butter but for all the other products there are hardly any promotions. During the launch of products, Amul is known to go above the line and advertise milk, butter, etc. But overall, the main advertisement is below the line through outdoor, trade promotions, discount schemes and sales promotions.
The biggest possible reason for Amul’s exclusion from hardcore advertising is that Amul does not want to give out margins in advertising its goods. As per Amul, the overall advertising budget is 1% of the turnover. Over and beyond that, the cost of the goods would have a significant effect. And the key reason for Amul’s strong market position is its outstanding content combined with an inexpensive price. Thus the overall advertisements for Amul are not good. Amul is only focusing on the advertisement of Amul Butter.
Conclusion
Here we will conclude the marketing mix of Amul. It is found that Amul is following good marketing practices. Amul has a good distribution strategy. Amul is spending less on promotions. But companies can compete with Amul by doing aggressive promotions on social media, and modern social platforms. Amul has reached such great heights and competing with Amul is not as easy.
If you like this article please like our Facebook Page PROJECTS4MBA
Cite This Work
Referencing Style to cite this article:
[citationic]