Amul as Brand
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Transcript of Amul as Brand
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Amul
Not just a brand of milk
The Taste Of India
Brand Building -Alumni Symposium, IMDR, Pune
February 22 2003
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Amul
Indias largest Foods company Rs 2,500crore and
growing
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India is now the worlds largest producer of milk,
more than the US, Europe and Australasia
and it started its journey on donations from these
countries !Production of Milk in India
55.658
60.663.8
66.269.1
71.9
75.278.1
80.8
0
10
20
30
40
50
60
70
80
90
1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2K* 2000-01*
Years
M
illionTons
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Amul- the genesis
The Amul brand is rooted in Indias rural
economy :
includes 170 milk unions
operates in over 285 districts
covers nearly 96,000 village level societies
is owned by nearly 10.7 million farmermembers.
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The Amul Brand
The Economic Times Surveys : (ETIG- ACNielsen)
Most Trusted brands survey
Top 100 brands Survey
Biggest 100 Brands Rank '02
Dhara 40
Amul 42
Amul Spray 45
Amulya 90
Most Trusted Brands Rank '02 Rank '01
Amul 31 31
Dhara 96 78
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The Amul History:
The people behind the brand
Pioneering Institutions in Indias milk industry
Amul Dairy, NDDB (National Dairy Development Board, NDRI
(National Dairy Research institute Karnal/Bangalore), L&T (Larsen and
Toubro, engineering, Tetra Pak, Vidya Dairy, IRMA
Stalwarts in Indias milk industry : Sardar Patel, Tribhuvandas Patel, Lal Bahadur Shastri, Morarji Desai, N.
K. Khurody (Bombay Milk Scheme), Pestonji Polson founder of Polsons
who started milk business in 1920s
Professionals in the Amul / Anand pattern : Dr Verghese Kurien, Dr H M Dalaya, P H Bhatt ,V H Shah, K Kurien ,
Sylvie dCunha
Very large no of dairy experts in different dairy fields
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The Network
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Amul Landmarks:Brands across time
Marketing of milk to the Bombay Milk Scheme - 1950
Branded product sales with table butter - 1956/57 ( Akbarally, Mumbai;
Empire Stores, Delhi; Spencers, Chennai/ Kolkata); 1945 first run
Amul baby food ( roller dry) - 1960
Amul Ghee - 1960
Amul whole milk powder - 1965
Amul spray - ( spray dry) - 1965
Bal-Amul weaning food - 1968
Amul Cheese - 1964/65
Amul Chocolates - 1973 Amul Nutramul - 1978
Two- brand strategy - Introduction of Sagar butter - 1958; Sagar Ghee 1960;
1980 - Sagar SMP
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Amul landmarks ..Value add dairy products 1983- on
Amul Srikhand - 1983-84 - Sugam, then Amul
Amul UHT Milk - 1983 ( Tetra Pak)
Dhara ( operation golden flow) - NDDB/ GCMMF-1987
Amul Mithaimate - 1994 Amul Paneer - 1995
Amul Ice cream - 1998/99
Amul Indigenous sweets - Gulab Jamun etc -1990 on
Amul cheese varieties expansion- Emmenthal, Gouda, Mozzarella-1997/98
Amul Pizza - 2001
Amul Masti Dahi- 1997/98 - stepped up 2001/02
Amul retail outlets - 2003
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Amul Milk landmarks
Formation of First Co-op Milk society / Amul - Dec 16 1946
Marketing of milk in bulk to BMS - Bombay Milk Scheme - 1950
Milk supplied in insulated rail tankers from Anand to Bombay from NZ- 1950
under Colombo Plan
200,000 lit / day to Bombay alone by 1980, followed by organized long
distance mktg. to Delhi (120k) and Kolkata (50K)
Bottles - initially ( pasteurized)
Tetra Pak - 1983- onwards ( UHT)
Pouches - replaced bottles by 1983 ( pasteurized)
Co-operative logo for all milk unions - 2001
Doodh- Doodh campaign, for the milk industry 1987 - First full train from Anand - Kolkatta of milk
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Amul Landmarks Brand name Amul meaning Priceless - 1954
Utterly Butterly Delicious + Amul Girl - 1967 - dCunha Associates
GCMMF formation in 1974 to market produce of member unions
Six hand logo - denotes the 6 milk prducers unions - Anand, Mehsana,
Himmatnagar, Palanpur, Surat and Baroda ( gradually extended for all unions ;
2000 - 16 unions)
GCMMF policy of handling marketing by Producers organization in
addition to Procurement and Processing for full control without any
middlemen
Take over of Butter distribution from Voltas in Maharastra in 1978
Exports to the Middle east - 1983 - Ghee, SMP,Butter , cheese (now exceeds
Rs 50 cr)
Taste of India punch line - Late Kannan Krishnan of ASP - 1995
A gift for someone you love -chocolates - Radeus-K Kurien - 1978
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Amul / GCMMF distribution strategy :Create a network that can sell more than what can be produced
Butter + cheese national distribution by GCMMF in 1979
Amulspray - by GCMMF in 1979 - 1984
All Amul products via GCMMF - 1984
Largest exports to Bangladesh , then middle east
Utterly butterly ads only on hoarding Adspend of GCMMF is always less than 1% of sales
Most profitable product - milk powder
1976 - sales - Rs 55cr ; 1991- Rs 1,000cr ; 2002 - Rs 2,500cr - Largest
Indian Food company now excluding local sales of milk and cattlefeeds
which were quite substantial (over Rs 500 cr. Now)
GCMMF retails universe exceeds half a million all over the country serviced
by 50 sales offices and 4000 stockists
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The building blocks of the Amul brand
Milk always was a priority, not value added products
No preferences, no caste, no age , no quantity barriers
Milk as an agent of social change : women proved to be better managers.
The farmers were always a priority but unlike other brands / companies, higher
returns were not from higher prices, but from economies of scale and national
distribution.
Milk grid was used to balance / equalize the production and consumption of
milk and milk products - which helped members to take every litre of milk
offered- that in turn encouraged milk production and procurement at DCS
GCMMF dairies today collect over 5 million litres of milk per day
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Amul Brand Building Value for money products : strong procurement system gave it the option
of pricing very competitively
Enjoying highest consumer confidence for value
Amul were the first even before legal mandate to adopt Metric System
and mark MRP on the packs.
Amul were the first to stop advertising Baby Food even before the law and
even before Nestle
Only Amul made milk powders to meet full requirements of the Armed Forces
sometimes even at the cost of market supplies for over 20 years
Butter prices could have been hiked, but were not, since Amul believed by
not exploiting price, they could stop competitors from entering.
Pizza introduction meant to boost Cheese range;All Pizza majors now take
cheese from Amul Retail venture , in Mumbai and Corporate campuses , to provide one -stop
shop for Amul products
Introduction of non traditional product range to help build the Amul
Brand
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IT to ensure the right price
GCMMF can today know
sales data every night from
across India; it also knows the
price paid to the last farmer
via its IT network
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Milk- no caste, no age,no
preferences
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Challenges to the Amul brand
Converting excess milk into value added
products
De-regulation of milk industry
Competition from other majors- Nestle,
Britannia, HLL
Creating more Amuls