1 MARKETING MANAGEMENT – II PROJECT ON: “AMUL BUTTER” GROUP -10 SUBMITTED BY AMOGH VYAS (18A3HP609) RADHA MADHAVI (18A1HP098) RUMAISA ALEM (18A1HP101) SAI CHANDER (18A2HP424) SIDDARTH (18A3HP638) SOWMYA ALUR (18A3HP626) SUDHEESH RAHUL MEESALA (18A1HP009) SUBMITTED TO PROF.NITHIN GUPTA DATE – NOV 28 TH , 20182 Analysis of Marketing Mix of Amul Butter PRODUCT STRATEGY EVALUATION: Product Differentiation: Form: Amul butter can be differentiated by different size s, flavours and packing.
Amul butter is available in different variants like Amul Choco Spread & Amul Garlic spread . They are also sold in small quantities in the form of Blisters. Performance Quality: Amul provides high quality butter priced reasonably.
They have employed “Backward Integration” which helps the company to cut down their costs. Conformance Quality: The taste of the butter doesn’t vary across the country making it the most trusted and respecta ble brand. Style: The look and feel of Amul butter is unique mainly because of its packaging. The package has the mascot – Amul girl with the tagline “Utterly Butterly delicious” making it distinct from the rest of the other brands. The advertising is one of a kind, p eople connect with quirky lines which depict the current happenings in the country.3 PRODUCT MIX: Source: http://www.amul.
com/m/brands Cheese Milk Bread Spread/ Butters Beverage Range Milk Powder Paneer Dahi Ghee Cream Desserts Amul Processed Cheese Amul Desi A2 Cow Milk Amul Choco Buttery Spread Amul Memory Milk Amul T – special Amul Fresh Paneer Amul Masti Dahi Amul Ghee Amul Fresh Cream Amul Epic Amul Ammental Cheese Amul Lactose Free Milk Amul Butter Amul Kool Flavoured Milk Amul Spray Amul Malai Paneer Amul Probiotic Dahi Sagar Ghee Amul Whipping Cream Amul Ice Creams Amul Gouda Cheese Amul Mithai Mate Amul Lite Amul Kool Café Amulya Amul Tin Paneer Amul Flaavyo Amul Yellow Cow Ghee Amul Sour Cream Flaavyo Frozen Yoghurt Amul Cheese Spread Amul Gold Delicious Fat Spread Amool Kool Koka Sagar Skimmed Milk Powder Amul Brown Amul Shrikhand Amul Pizza Cheese Amul Taaza Amul Unsalted Butter Amul Stamina Sagar Tea Coffee Whitener Amul Gulab Jamoon Amul Slim Trim Milk Amul Garlic Butter Amul Pro Drink Amul Basundi Amul Chai Maza Amul Masti Buttermilk Amul Avsar Ladoo Amul Shakti Amul Lassi Amul Chocolate Amul Diamond Amul Prolife Lassi Amul Chocozoo Amul Calci Amul Prolife Buttermilk Chocolate Syrup Amul Moti Milk Amul Kool Shakes Amul Wafer Chocolates Amul Smoothies Amul Rejoice Assorted Chocolate Amul Cooking Chocolate4 Amul has product width consisting of diary and perishable products broadly classified into Cheese Milk, Bread Spread/ Butters, Beverage Range, Milk Powder, Paneer, Dahi, Ghee, Cream an d Desserts. It has about 65 products under its umbrella. The product line of bread spreads and butters has 6 products – Amul Butter, Amul choco buttery spread, Amul lite, Delicious fat spread, Amul unsalted butter, Amul garlic and herb butter spread. Product Depth: Stock keeping units (SKUs) of Amul butter : Name of Product Variants Packaging Amul Butter 500g Sleeve carton 100g Sleeve carton 200g Tub 20g Sleeve carton 10g Blisters Amul Choco Buttery Spread 200g Tub sealed Amul Lite 500g Sleeve carton 200g Tub sealed 100g Sleeve carton Delicious Fat Spread 500g Tub sealed and sleeve Carton 100g Tub sealed and sleeve Carton Amul Unsalted Butter 500g Sleeve carton 100g Sleeve carton Amul Garlic and Herb Butter Spread 100g Sleeve Carton Product Line Stretching: Amul Butter was launched in the year 1955 and was the first diary product of Amul. Amul Butter is a preferred product by a good possible range of customers positioning itself in the middle market. Amul launched products like Amul Lite and Delicious at lower prices than Amul butter and also they had low fat and low cholesterol content butter, stretching its product line to reach customers seeking for lite products.
It also launched 10gm Blisters of Butter for customers seeking butter for one time use, portability and low price . This was part of down -market stretchin g. Product Line Filling: The unsalted butter, Garlic herb butter and choco buttery spread were launched to expand their existing product range to satisfy growing consumer wants.5 Packaging: Amul Bu tter is presented in yellow colour sleeve cartons, tubs and blisters.
The front side of the unit has a tagline – “Amul Butter – Utterly Butterly Delicious” which was associated with the product after about a decade of its launch and is still continuing. It also has a face – a cute chubby blue haired girl in polka dots frock who is heartthrob of the nation. This helped in building and maintaining brand of the product. Self -service: The packaging of this product has the information regarding nutritional information, batch number, MRP, manufacturing and expiry date , Ingredients, Manufacturer and Marketer information and instructions like “Keep under Refrigeration”. Consumer affluence and innovation opportunity: Introduction of Tubs and blisters as packaging units drew consumers to the product due to ease of storage and convenience . PRODUCT MAP :6 Amul butter variants (100gms) Butter of other brands H1 – Amul butter A- Britan nia dairy butter H2 – Amul lite B – Mother dairy H3 – Delicious fat spread C – Nutralite H4 – Amul unsalted butter D- Fun foods H5 – Amul garlic and herb butter spread H6 – Amul choco buttery spread The product map shows how the product line of Amul are located along with four of its competitors. Two paperboard attributes are price and quality.
PRICING STRATEGY OF AMUL BUTTER: Initially when Amul had just started, there were no other regional or national players and the dairy market was completely unorganised. Amul had the objective to sell to its end consumers at the best possible price while maintaining quality of its dairy product. The following factors can be analysed to understand the pricing policy of Amul: Factor 1: Selecting the pricing obje ctive The main objective of Amul has always been to price its butter as low as possible in order to gain maximum market share. They believed that having a higher sales volume would give long run profits and so they follow a market penetration strategy.
Factor 2: Determining demand Amul, being one of the first players in the dairy business enjoys a huge market share. Due to low entry barriers, in recent times, other players such as Mother Dairy, Nutralite and Nandini have cropped up and are selling dairy products a t lesser prices. But the consumers are insensitive to this marginal increase in the price of Amul butter.
In India, Amul enjoys a major 79.1% of the market share which translates approximately to $459million. Reasons for price insensitivity: 1. Consumers expect more quality from Amu l products.
2. Taste preferences . 3. The additional expenditure is just a small part of consumer’s income .
4. The presence of the Halo effect of Amul as a brand. Factor 3: Estimating costs The prices are derived after an evaluation of the costs of milk, processing, labour, transportation, sales, promotion and taxes.
Their costs can be divided into variable and fixed costs. Some of the variable costs are incurred in the form of procurement of milk, oil, packaging expenses which depends on the level of production of butter. And the fixed costs are in the7 form of interest paid to banks for the loans taken, rent of factory, salaries paid and insurance premium.
Most of their costs are expended in the procurement of milk which is the major ingredient of most of their products. In the year 2017 -18, Amul procured a total of 22 lakh kilograms of milk per day to meet their daily production requirements. This allowed Amul to produce a total of 24939 MT of butter in the FY 2017 -18. Step 4: Analysing competitors costs, prices and offers Amul’s competitors are mainly Mother Dairy, Britannia, Nestle and Nandini. Most of the competitors price their butter relatively lower to Amul’s product but not by a huge margin. Even though Amul’s prices are higher, people prefer their products to other brands because of brand loyalty. This is because consumers perceive Amul’s butter to have a higher quality to other brand’s butter.
Here we can say that, Amul is a value p erceived competitor. Product bundling pricing: Amul has introduced smaller quantities, containing 10g of butter which can be used as one serving for one individual. They call it the school pack, mainly targeting school going children.
They bundle together 10 units of such servings, thereby providing a total of 100g. this is pure bundling pricing as it’s the same product being sold. PROMOTION MIX: Amul has adopted promotional strategies since its inception in such a way that it has made a mark for itself in the people’s mind, making it the number 1 brand in dairy products. One unique marketing strategy of Amul is Umbrella Branding i.e., they promote the ir products under the name Amul across their product categories. Amul adopted various marketing communication mix which are as follows: 1.Advertising: Story of Amul Girl: In 1966, Sylvester daCunha the MD of daCunha Communications , an adversting firm was t he brain behind Amul Girl – The chubby girl in polka dots dress.
The Amul girl till date is part of Amul’s promotions and this was initially designed for a campaign which made it to Guinness book of world records for being the longest and successful runnin g ad campaigns. They promote in such a way that they reflect the current scenario of the country using the mascot with quirky lines. After the introduction of their mascot, the sales shoot up from 1000 tonnes a year in 1966 to 25,000 tonnes a year in 1997. Amul’s Tagline: People greatly connect with the tagline of Amul i.e.
, The taste of India. Amul has two important brand elements which are the Amul girl and the catchy tagline “Utterly Buttertly Delicious Amul” both together create magic and remain relevan t even to this day. Display Media: Hoardings, Print Media ( Newspapers, Magazines ), Billboards, TV Ads, Cinema, Websites and portals were used as adversting platforms to promote their products effectively. Amul8 spends not more than 1% of turnover on their advertisement. Amul believes in creative and genuine ads rather than spending huge amount on advertising. 2. Events and Experiences: Amul sponsored popular TV shows like Master Chef India to promote Amul Butter, targeting few of their major consumer groups i.
e., households and chefs. DISTRIBUTION STRATEGY Intensive Distribution Strategy : Amul has adopted Intensive distribution strategy as where the company products are available at as many outlets as possible, so that the consumers encounter the product virtually everywhere they go . Amul Butter is available in retail outlet segments like Kirana St ore / Modern Format store / Amul Parlors / Hotel ; Restaurant segment / Railway and Flight Kitchen etc . Objective : The main objective of the distribution strategy of Amul is to ensure its products reaching the final consumers before getting perishable.
Ch annel Integration And System : • Conventional : The company had adopted conventional channel integration as every channel in the distribution works for their own independent profits. • Contractual Vertical Marketing Systems : The company had adopted franchising model of contractual vertical marketing systems to provide its products to the end consumers by making them as its one of the distribution channels by providing franchising to the independent firms. Amul gets benefitted in o Increasing economies of scale o Product availability o Increase in market availabilit y Pull Strategy In Marketing Channel : In managing its intermediaries, Amul devoted a pull strategy, where by advertising in social media referring to the current affairs, promoting its products with other forms of communications to persuade the consumers to demand the products from its intermediaries like retail stores, own -house stores and franchise sto res. This strategy is particularly appropriate to Amul because of its high brand value and brand loyalty.
9 Distribution Flow : Including every FMCG company, Amul also concentrates on breaking the bulk to save its production and selling expenses to ensure the economies of scales by producing more output. Channel Levels • Three Level: The company adopted 3 level channel flow of distributions to reach its products to its end consumers, thus eliminating the intermediaries benefitting to low price offerings. The distributions of the product flows with 3 channels o Distributors/Branches o Wholesal er/Amul parlour/Amul franchise o Retailer The Head Office of AMUL is located at Anand, Gujarat. The entire market is divided in 7 zones representing zonal offices, which are located at Ahmedabad, Mumbai, New Delhi, Kolkata, Lucknow, Guwathi and Chennai controlling over 60 branches /distributors loc ated across the country and GCMMF exports to 11 countries.
It supplies in huge amounts to its branches in, wh ich are required to have the right arrangements to store Amul products in bulk due to its perishability which then transfers the products to wholesalers who in turn give it to retailers. These transportations were done with fully refrigerated trucks to ensure the product getting not perishable until it reaches final consumers. Moving forward, Amul has a direct sal e team , who sells amul butter to modern retail.
Amul butter can also be available through online platforms like Big basket, Amazon Pantry etc. COMPANY DISTRIBUTORS AMUL PARLORS WHOLE SALER AMUL FRANCHISE RETAILER CONSUMER10 Modifications: Pricin g: Amul can use mixed bundling pricing where a new product or a less selling product can b e offered with the most popular product. For example, with a 500gm pack of Amul butter 100gm of Amul garlic can be bundled.
Promotion: Sales promotion techniques can be used by distributing small blisters of new product or less popular butter spreads to the consumers. Distribution Strategy : Amul can launch their own e – commerce platform where retailers can register , sell Amul products an d consumer can buy them online . Packaging: The 100gm Amul butter is packed in a carton box which starts absorbing the oil content of the butter after some time. This could be improvised by introducing tubs and butter tubes for 100gm variants.
Different var iants of butter like Amul choco spread is available only in a 200gm tub. For such products different quantities like 10gms blisters, 50gms 100gms, should be offered