amul as brand

7/31/2019 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

amul as brand

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