Why Amul is successful ? Marketing lessons from Amul. Full Case Study.

We as consumers consume at least one glass of milk daily. and billions of liter milk is consumed by all Indians every day, but do you know more than 5 million liters of milk is produced by Amul alone. means a huge population of India drinks Amul milk every day. But do you know why Amul is so famous? What makes Amul a brand of monopoly? To know more about Amul's marketing strategies and Case study, stay tuned with the post.

1. Identified the problem with Society

Let's go in the flashback, around the time of Independence of India (1947), India was a milk deficient country. Nobody was getting quality milk to drink in India. Even farmers were exploited by the middle man for more profit generation. As a result, both cattle farmers and milk consumers were not happy with the profit and quality of milk. Farmers were getting less paid for their milk, so they were also adulterating the milk with water and chemicals to increase the volume in the hope of profit, and consumers were sad because they were not getting quality milk even at high prices. We were then producing less than 1% of milk. and India was the major milk importing country.

2. The White Revolution of India(दुग्ध क्रान्ति )

It is an incomplete statement with the naming of Amul but not of Dr. Varghese Kurien. Dr. Kurien was an Engineer who studied in the USA, but on the call of PM Jawaharlal Nehru, he returned back to India to solve the milk crisis of India. He started his research snd survey from Gujrat and traveled from village to village to know the actual problem of farmers. And in the end, he started a small plant of Milk in Gujrat.

3. Top 10 Marketing Strategy of Amul

a. Three-Tier model of supply chain

b. Sense of collectiveness

c. Use of modern Technologies

d. Empowerment of Farmers

e. Large distribution network

f. Amul Girl

g. Every Dairy product = Amul

h. No age group difference

i. Dedicated to nation/ Patriotism

j. Dedicated long term plans

so let's discuss these all plans one by one

A. Three-Tier model

source-MyVoice-writeforopindia

The basic model is clear and simple, Where the other milk-producing firms keep their castles in a cattle farm and collect their milk. But Amul works on farmers' employment strategy. All the cattle farmers from a village collect the milk from their castles and go to nearby Warehouses. Warehouses are such places setup by Amul by which the quality of milk can be checked with modern machines and then the farmers are paid according to the quality of milk they have collected. This helped the farmers because now they are gaining a good amount of money, without any middle-man.

This collected milk is then transferred to the packaging plant, where the milk is pasteurized i.e. heated to 40-degree celsius and then instantly cooled to kill all the microbes.

At the last, the packaged milk is distributed to a large-scaled lever of suppliers and franchise owners.

B. Sense of collectiveness

Whenever someone takes the name of any milk product or any milk brand the first name that comes to the lips of people is Amul. This monopoly is established by Amul because of its service for all economic classes, and all groups of people in this diverse nation. Whenever a TV ad of Amul is picturized it clearly gives the message of unity in diversity and quality for all. Like "AMUL DOODH PEETA HE INDIA", "AMUL THE TASTE OF INDIA". The earnings that Amul gets as their turnover is paid to farmers for their milk in the majority, that's the reason why it is called a farmers union brand.

C. Use Of Modern Technologies

All the plants, warehouses, and processing plants of Amul are fully equipped with modern machines and the latest tools. This is to maximize workers' output and to scale up the production per day.

D. Employment of Farmers

Since Amul is a farmer's own brand that's why it is called 'Union'. Amul sells farmers' milk to market and returns it back to farmers for new more milk, Their motto is to empower the community of cattle farmers.

E. Large Distribution Network

Amul is famous for its distribution chain and supply network. The advantage of a large distribution network is that your suppliers and network acts as advertising and marketing chain contributors. Even your all network is responsible for advertising to social media, banners, product display. i.e. everything. Hence this shows the power of the network.

F. Amul Girl

Amul Girl refers to the advertising mascot used by the dairy brand. The Amul girl is a hand-drawn cartoon of a young Indian girl dressed in a polka-dotted. Amul girl advertising has often been described as one of the best Indian Advertising concepts because of its humor, frock with blue hair, and a half pony tied up.

Images source-google.com

In the pictures above you can clearly see the role of Amul girl. She is the feeling of every Indian. and also the part of every festival, event. Whenever a new movie launches on the big screen. She becomes part of the advertising for movies as well as Amul. Like when "Bajrangi Bhaijaan" was released she spelled it as "Butterangi Bhaijaan", for the movie 'PK', She spelled it as "Kha PK Jaana". She is even highly patriotic and supports all movements of the public and government. Like after the Galway valley clash, there were aggressive campaigns against China in India. and Amul girl also supports the campaign by saying "Exit the dragon". Even not Amul but many global brands have their mascots. It's up to us that how we use our strategies to connect our brand with the sentiments of people.

G. Every Dairy product = Amul

Nowadays Amul is not only limited to milk and butter brands but from milk to every milk product is manufactured by them. The positioning of the new MD of Amul, Dr. Rupendra Singh Sodhi has totally changed the brand identity of Amul. RS Sodhi has worked 33 years along with Varghese Kurien, and after his promotion to MD, he started the production of every milk item with the assurance of quality. the range of products is too vast now like milk, butter, ghee, curd, cream and products like chocolates, drinks, ice-cream, cheese, pizza, ready-made coffee, and many more.

H. No age group difference

The main thing that establishes Amul as the people's brand is "No age factor". Their TV ads play a vital role in the advertising. Picturizing the term such as "Amul Doodh Peeta Hai India", "Ghar Ki Bitiya" as their slogans, they have removed the age barrier from their marketing model. Even they are successful to prove that milk is for all age groups.

I. Dedicated to nation/ Patriotism

If you look at the name of "Anand Milk Union Ltd". It clearly explains it meaning that is a union for farmers, their main motto is not to earn by farmers but they actually earn for cattle farmers. The majority of the earnings of Amul is been invested in all possible ways on farmers and their upliftment. Even during pandemic scenarios, Amul has always shown its helpful presence by contributing to the nation's GDP to the feeding of poor and roadside beggars.

J. Dedicated long term plans

Gujarat Co-operative Milk Marketing Federation, which markets its range of products under the Amul brand, plans 40-60 new products in the next two years. It believes this will enable an annual turnover of Rs 50,000 crore by 2021.

In the past four years, it has launched 101 products. The revenue growth target for 2019-20 is 20.7 percent to Rs 40,000 crore. It was Rs 29,225 crore in 2017-18.

The new products, mostly high margin, will primarily belong to the categories of yogurts, cookies (biscuits), shortbreads (nan khatai), fresh mithai (sweetmeat), and milk-based beverages.

After coming up with its butter cookies range in the western part of India, the company plans to launch it across the country within the next quarter. Thereafter, variants like cashew, cumin seed (jeera), and others.

In fruit-based milkshakes, the firm will be broadening its Tru brand with new flavors such as double-chocolate, dark chocolate, and other fruit flavors. There is a plan to come up with dark chocolate having 99.99 percent cocoa content.

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