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Home » Brand Strategies » Marketing strategy of Amul

Marketing strategy of Amul

September 2, 2018 | By Hitesh Bhasin | Filed Under: Brand Strategies

The Marketing strategy of Amul covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the marketing strategy of Amul? Let us discuss

Table of Contents

  • Segmentation, targeting, positioning in the Marketing strategy of Amul
  • Mission of Amul
  • Tagline of Amul
  • Competitive advantage in the Marketing strategy of Amul 
  • BCG Matrix in the Marketing strategy of Amul
  • Distribution strategy in the Marketing strategy of Amul
  • Brand equity in the Marketing strategy of Amul
  • Competitive analysis in the Marketing strategy of Amul
  • Market analysis in the Marketing strategy of Amul 
  • Customer analysis in the Marketing strategy of Amul

Segmentation, targeting, positioning in the Marketing strategy of Amul

The segmentation of Amul is the mass population and in general, you will find people of all different age groups and demography enjoying Amul products. This is because Amul is not only present in Ice cream, but also in Milk, Butter, Cheese and other such products.

As it has a very deep product portfolio, it does not differentiate in its customers but uses a mass marketing principle. And till date, this principle has worked very well for the marketing strategy of Amul. Similarly, the target audience are the regular middle class people.

This is because higher end customers do have a lot of high end products as an alternative in ice cream. However, for other products like Butter and cheese, both high end and low end customers are the target. In terms of positioning, Amul has top of the mind positioning because it is the first brand which comes in mind when talking of Ice cream, milk, cheese, butter or any other milk based products.

Marketing strategy of Amul

Marketing mix – Refer this article for the marketing mix of Amul.

SWOT analysis – Refer this article for the SWOT analysis of Amul.

Mission of Amul

“We the motivated and dedicated workforce at amul are committed to produce wholesome and safe foods of excellent quality to remain market leader through development of quality management system, state of art technology, innovation and eco-friendly operations to achieve delightment of customers and milk producers”.

Also Read  Marketing Strategy of Parle - Parle Marketing Strategy

Vision of Amul – Amul has a vision to provide more and more satisfaction to the farmers, employees and distributors.

Tagline of Amul

The taste of India.

Competitive advantage in the Marketing strategy of Amul 

There are two major competitive advantages of Amul over other brands. First and foremost is the supply chain. Because of the large numbers of dairy suppliers, Amul has a tremendous strength and reliability in its supply chain. Hence it is able to produce such high volumes. The second competitive advantage is the wide product portfolio due to which it can run Amul shoppe’s and also have its products present in retail. The product portfolio is such that products like Butter and Ice cream are cash cows for the company.

BCG Matrix in the Marketing strategy of Amul

When we plot the BCG matrix, Amul has certain products which are stars whereas others are cash cows. And in fact, Amul chocolates are question marks because they have very low market share in a growing market. Amul ice cream and Amul butter can clearly be said to be a cash cow because they have very high market share and the market in itself is growing with the increase in population.

On the other hand, Dairy products like Milk, buttermilk, cheese, lassi, amul kool etc have a lot of direct and indirect competition in their niche. However, when compared with the same type of product, then Amul has a high market share. Thus, these products are stars for Amul.

Distribution strategy in the Marketing strategy of Amul

Like any FMCG company, Amul concentrates on breaking the bulk. It supplies in huge amounts to its C&F, who is required to have the right arrangements to store Amul products in bulk. This C&F then transfers the products to distributors who in turn give it to retailers. Furthermore, Amul has a direct sale team too which sells to modern retail. Besides this, the company has exclusive Amul stores which sell all products of Amul brand. Thus, in the marketing strategy of Amul, distribution is another strength of the brand.

Marketing strategy of Amul

Brand equity in the Marketing strategy of Amul

Because of the excellent products, the top of the mind positioning, the fantastic distribution and supply chain channels and finally the point of purchase branding and advertising of the Amul girl, Amul finds itself in a very strong position where its brand equity is concerned. Amul brand is worth $3.2 billion as per the 2013 brand equity report. Furthermore, most analysts say that Amul would have touched the $4 billion mark, but the dropping value of the rupee is what caused the difference.

Also Read  Marketing Strategy of Pond’s

Competitive analysis in the Marketing strategy of Amul

Amul has some good competitors who have entered the market in the last decade and growing strong steadily. Most of these ice creams entered regionally but then held on to the regional market share. Thus, even though individually these brands might not be a worthy adversary, combined and with their total net aggregate, all of them together are giving a very tough competition to Amul.

Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun Ice cream, Baskin Robbins, London dairy and others. Many of these ice cream products have their own niche or geographic targets. Arun ice cream is strong in the south whereas havmor and Vadilal are strong in the west.

Besides these organized players, there are many unorganised local players who also give competition to Amul by having their own outlets and their own variants of ice cream. However, the competition in Butter and Cheese and other dairy products is far lesser.

Market analysis in the Marketing strategy of Amul 

The FMCG market is highly competitive in nature and is known to have a combination of organized players as well as unorganized players. Similarly, in FMCG, direct competition is equally important as indirect competition. For example – During winters, ice cream and cold milk products will not sell, whereas butter and cheese will sell equally well.

But on the other hand, during summers the demand of ice cream shoots up so much so that companies are not able to meet demands. Thus, when we analyse the market of Amul, in some cases Amul is the clear market leader, whereas in other products it is a competitor in the market.

Customer analysis in the Marketing strategy of Amul

The typical customers of Amul belong to the Sec B and Sec C segment wherein they are either middle class or lower class. Amul in general uses mass marketing and therefore it targets these 2 classes majorly. The high end customers are more likely to prefer a Naturals, a Baskin robbins, or any other such brand which meets their taste and status.

This completes the analysis of the marketing strategy of Amul. What do you think of the Amul brand and why do you think it is the market leader?

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Comments

  1. dineshk says

    Pl include my book in the listing on your page.
    Marketing Channels by Dinesh Kumar, published by Oxford University Press. ISBN: 97801980 77091. The book is a text book in University of San Fransisco.

  2. Hitesh Bhasin says

    Is it selling online? Can you send an Amazon link?

  3. rrr says

    what contents shoulb be included to make a project on marketing practices of india

  4. neha sharma says

    i think amul is a taste of india

  5. paarvatee says

    sir whose marketing startegy is better amul or britannia? and why?
    i need it urgently for my project.

    • Hitesh Bhasin says

      Britannia is more into bakery products and Amul is more into Dairy products. Hence comparison of both is very difficult. But overall, Amul has the upper hand because of Amul butter and Amul ice cream.

  6. manish shah says

    I want to do business of dairy products

    • Saurabh Tyagi says

      You may start your own business if u get funding then u & we may start.i hv not fund but I hv my research, planning, ideas n market data so if u want then we may start.l eave a reply on my Gmail ac.

      • Rahul Agrawal says

        Regarding dairy plant.

  7. KALYAN BANARJEE says

    LETTER OF A FATHER OF FIVE YEAR OLD DAUGHTER:
    Dear Sir,
    I am a father of a 5 year old girl, Anushka.Our full family love to watch AMUL ADDS in T.V and in Hoardings in our city sites. I always tried to serve a right answer to her innocent queries about, what is happening in her surroundings.Just 2-3 days ago, my daughter Anushka suddenly asked a question to me, “Papa, Why, AMUL DOODH PEETA HAIN INDIA, why not, AMUL DOODH PEETI HAIN INDIA.

    I know, she asked this question unknowingly and spontaneously but now I don’t have any satisfactory answer of her question.It is also very astonishing that the LOGO of AMUL is a GIRL, still why PEETA HAIN INDIA and not PEETI HAIN INDIA.???????

    AMUL CAN CHANGE ITS VERY FAMOUS SONG TO CONVEY A SOCIAL MESSAGE TO PROTECT GIRL CHILD AND FOR A FATHER WHO WANTS TO GIVE A JUSTIFIED ANSWER TO HER LITTLE GIRL.

  8. Sanjay sinha says

    Good support for market research.Hope you will provide suggestions on regular basis.Thanks alot !

    • Hitesh Bhasin says

      Thanks a lot for the feedback. Will keep them coming :)

  9. Sanjay sinha says

    A like your market research in dairy sector especially the top brand marketing strategies.Hope you will provide full support to do brand strengthening for PARAG.

  10. naimisha says

    sir…what are the customer’s perception on AMUL products?

  11. Ayush Aggarwal says

    what are your views on deriving strategy for gaining substantial market share of newly launched Amul products in
    western up

  12. Ganesh kushwar says

    Hello! Marketing91 team,
    i am a marketing professional, for a long time i was looking for valuable content about marketing management. But now i got valuable content in marketing91.com. i am thankful to the marketing91 team. i also hope …. this types of content regularly

  13. Ankit Raj Goyal says

    Hello ,

    Very nicely analysed and comprehensively compiled market strategy report on Amul . I also believe that Amul benefitted from the Law of Leadership ( first mover advantage) , and that has become entrenched in public perception . Also Amul has the branding of a great visionary and visionary in its history , Sir Verghese Kurien . Add to that the Cause Backed Marketing of the White Revolution and I think its pedigree is just too unshakeable . However , with the millenials now becoming the main market , I wonder how that legendary history is going to stack up going forward .

    You have very nicely mentioned about its competitive edge , and specifically its TOP OF MIND BRAND RECALL position . I genuine think in some categories , like butter, its brand name is almost generic with the category .

    Great article , thank you very much !! Its been very helpful

    Ankit

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