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Brand building @ amul.coop

Brand building @ amul.coopJayen Mehta

GCMMF Ltd., Anand

November 10, 2006

Contents Amul History and Current Operations Amul Brand Details Amul Brand Management Amul.com Extension in the Digital era Amul in Retailing Amul as Asias largest Milk Brand

The birth of Amul

Linked to the freedom movement of India Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen Inspiration of pre-eminent national leaders A cooperative movement - member control on milk production, processing & marketing A humble beginning with 2 village societies and 246 litres of milk...

Amul - today 2.5 million milk producers families part of a fraternity of 13 million coop producersnationwide

13,000 village societies there are over 113,000 coop milk societies pan India 8.1 million litres of milk procured in peak season on a single day India is the largest producer of milk in the world ! Rs 100 million handled in cash daily Milk is the biggest agricultural crop in India ! 13 district Unions there are 180 cooperative dairy unions across the country

GCMMF - Operations Indias largest food products marketing organisation 4 Distribution Highways 20 Product Groups 400+ SKUs

34 Supply Centres 50 Sales Offices 300 member sales team 5000 Stockists 700,000 Retail outlets Rs 4,500 crore (US$ 1 billion) annual Sales Turnover

Amul

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It means priceless in Sanskrit and many Indian languages

Amul Commitment to Quality

Value for money The generation of awareness The fostering of loyalty Development of strong brand identity

Amul1956

Icecream1996

Chocolates1973 Shrikhand

1980 Fresh Milk

1956Milk Power 1958

Cheese1962 Breadspread

Ghee1956

FatFree

Dessert2002

Nutrauamul1973Gulabjamun

1997

UHTRange

1980/99 Amulspray1968

CheeseSpread1986

AmulButter 1956

CowGhee2002

SoftyMix

2001

Eclairs2001 Gulabjamun

mix

1999

CondensedMilk

1996

AmulWMP

1960

Paneer 1997

Amul Lite1994

AmulShakti2003

Kulfi Mix2001Buttermilk

1998 Amulya

1987 pizzaCheese1998

Margarine2004

Chocozoo2005

Laddoo2004

fresh Curd1999

Amul IMF1&22001

Emmental

Cheese1999

Basundi2005

Flavoured

Milk 2001

Instant

FCMP2002

Frozen

Pizza2002

Khoa2006

FreshCream2002

GoudaCheese2002

Kool Cafe

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2005

GCMMF: PRODUCT PORTFOLIO

CATEGORY BRAND NAME MKT SH % RANK IMF AMULSPRAY 65 % # 1DAIRYWHITENER AMULYA 60 % #1

FCMP AMUL WMP 80 % #1S M P SAGAR SMP 40% #1BUTTER AMUL BUTTER 80% #1BREADSPREAD AMUL LITE 80% #1CHEESE AMUL CHEESE 60% #1CHEESE SPREAD AMUL CH SP. 90% #1EMMENTAL SWISS CHEESE 90% #1

MOZARELLA PIZZA CHEESE 75% #1

GCMMF: PRODUCT PORTFOLIO

CATEGORY BRAND NAME MKT SH % RANK MILK AMUL # 1GHEE SAGAR GHEE 10 #1

AMUL GHEE 8 #2ICE CREAM AMUL ICECREAM 40 #1

CONDENSEDMILK MITHAI MATE 50 #1

ETHNIC SWEET AMUL SHRIKHAND 50 #1

CHOCOLATES AMULCHOCOLATES 10 #3

BROWN BEV NUTRAMUL 15 #4

Amul : Brand Management

Appointment of Professional Advertising Agencies since 1956 (ASP, dCA, Radeus,Ulka) Appointment of Professional Distribution Agency (Voltas, Spencers) till 1983 Creation of GCMMF in 1973 A marketing Team Product Management Group for brand care..

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Amul : Brand Repositioning

Scenario post liberalisation in 1992: Likely threat of competition in various categories

Increasing media costs and fragmentation Decision to consolidate brand position as The Taste of India in 1995Brand Equity : Indicators

Perceived Quality Perceived Value Loyalty Brand Awareness Market Share Leadership Brand Personality Distribution Coverage

Price Premium Organisational Association

Brand : Core Identity Augmented by :

Brand as Product Product Scope Product Attributes Quality/Value Uses & Users Brand as Organisation

Organisation attributes Local v/s Global Brand as Person Brand Personality Brand - Customer relationship Brand as Symbol Visual imagery and metaphors Brand Heritage

Why is it hard to build brands ? Pressure to compete on price Proliferation of competitors Fragmenting markets and media Complex Brand Strategies and Relationship Bias towards changing strategies Bias against innovation Pressure to invest elsewhere

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Short Term pressures

AmulThe Challenges in 90's

Consumer Demand to widen the product range. Franchising the brand pan India to increase availability of fresh products. Globalisation : Dedicated brand building campaign in international markets.

www.amul.com

Among first Indian corporates on the net (since March 1996) Launch of Amul Cricket Rankings (Sep 1998) Launch of Amul Cyberstore in US (March 1999)

Launch of Amul Cyberstore India (June 1999) Launch of Amulmail.com (Sep 1999) Launch of Member Dairies Websites (Sep 2000) Launch of Amulgreetings.com (Dec 2000) Launch of Amul Icecream Cyberstore (Jan 2001) Launch of Amul.tv (Jan 06) Launch of Amulwd.com (March 06)

Digital Marketing : Key Benefits

Experienced Accessibility of brand & organization becomes global. Dramatic increase in exportenquiries since 1996 both from trade as well as consumers

High customer involvement due to emotional attachment' with the brand

The topical advertising campaign (updated weekly) and Cricket Rankings (updateddaily) helps in generating continuous interest

Regional Hubs ( USA , Dubai , India , Singapore ) to facilitate ebusiness transactions in

a highly restricted dairy product export market.

Next Steps Build Product specific sites Build WAP site Build each Member dairy web site

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Enable e-transactions in village coops

A

Afghanistan I Iraq R RussiaAlgeria

S

Saudi Arabia

Angola J Japan Sierra LeoneAustralia K Korea Singapore

B

Bahrain Kuwait South AfricaBangladesh L Laos Sri LankaBenin

M

Madagascar SudanBhutan Malaysia SyriaBotswana Maldives

TTaiwan

Brunei Mauritius Tanzania

C Cambodia Myanmar ThailandChina N

NepalU

UAED Dubai New Zealand Uganda

ENigeria UAE

Ethiopia O Oman V VietnamF Fiji P Pakistan W West IndiesG Gambia Philippines Y YemenH Hong Kong Q Qatar Z Zanzibar