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Marketing Strategy of Amul – A Detail Case Study

The first time we became familiar with marketing strategy of Amul is when we heard the catchy tune “Amul Doodh Peeta Hain India”. Even though most of us were young at that time, ever since we grew up Amul has become a household name in the minds of Indian families. We are quite sure that you have at least one of Amul’s products in your house. Amul’s marketing strategy is such that it has elegantly created family-friendly and patriotic images with “Amul-the Taste of India”. Even the marketing jingle also evokes empathy towards the brand.

What makes Amul branding strategy so special is that it constantly managed to stay relevant for so many years. Therefore, it makes us wonder what they are doing so great to stay relevant in this competitive market. In this case study, we shall go through the details of Amul’s online marketing strategies. Also, we shall share the details of campaigns implemented by them over the years which have helped them to stay on top of their game. So let’s start with what Amul as a company is all about.

branding strategy of amul

Source – startup talky


Amul as a Company

AMUL – Anand Milk Union Limited is a company based in Anand, Gujarat. The company was not established as a brand but as a movement. The company was started with the motive to provide welfare to the farmers. In the process, it went on to establish itself as one of the most successful brands in India.

The objective of the company was to give farmers the dream, hope and courage to live. At present, Amul is still a cooperative company running under the guidance of RS Sodhi, who is the managing director of the company. It is supervised by Gujarat Co-operative Milk Marketing Federation Limited (GCMMF).

There are a lot of brands that have been successful for a long time. However, very few brands succeeded to touch our hearts. Amul is one such brand that truly touched our hearts. Now, the question is how di Amul manage that. The answer is simple – the quality of Amul’s products, their innovation and Amul marketing strategies.

Did you know? In 2020, during the peak of COVID-19, a lot of companies failed with their marketing strategies, sales and revenue. However, Amul managed to earn a turnover of 53,000 crores. Furthermore, the brand successfully added 60 new products to the inventory along with donating 800 crores to the farmers of rural areas. Amul is eyeing to achieve the Rs 1 Lakh crore mark in sales by 2025.

Amul’ Branding as The Taste of India & Amul Girl Mascot

The main component of its corporate-level strategy of Amul is branding. We are all aware of the tagline of Amul – The Taste of India. This tagline eliminated the notion that bread and butter are typical English breakfast, and brought nationalism in. The icon of Amul was the never-ageing girl in the polka-dot dress. Also, the best thing was, Amul marketed all the products under a single name. Thus, it helped the brand to sum up the marketing and advertising costs with 1% of the revenue.

Product Portfolio Adds to the Amul’s Marketing Strategy

Amul makes use of the umbrella marketing strategy. With the Amul girl campaigns and constant marketing efforts, the marketing strategies are always on point. The next aspect of Amul’s marketing strategy is the product portfolio. The variety of Amul’s products caters to a larger segment of the audience. Yes, you might come across different brands like London dairy or Baskin Robbins that managed to capture the regional markets but they still cater to a higher category of audience. On the other hand, Amul secured its standing in the overall dairy market. The primary target audience was the economic class and the middle class. The simple reason behind their retention of customers is product pricing.

corporate level strategy of amul

Source – BBA Mantra


Amul’s Low Cost Pricing Strategy

The third aspect of Amul’s marketing strategy is product pricing. It is one of the best promotional strategies that Amul adopted. It chose the low-cost pricing strategy for the products that are consumed regularly. The pricing of Amul made it affordable for the target audience. What Amul did was it kept the price of their products in proportion to the income of their audience. This is what helped them to retain their customer base. A competitive pricing strategy of Amul like a one-on-one offer was adopted by Amul for the products that had heavy competition.

The 25% Percent of Amul Advertisement Strategy

This is the final aspect of Amul’s marketing strategy. Without advertising, the target audience won’t be aware of the existence of the product. Did you know? Amul is the Guinness record holder of the longest-ever advertising campaign.

The butterfly girl is thirty-nine years old now and she certainly doesn’t appear to be! Amul achieved top-of-the-mind positioning. Thus, it means that when it comes to dairy, Amul is the first thought that comes to mind.

Amul came up with several taglines like Amul Doodh Peeta Hain IndiaHar Ghar Amul GharPehla Pyaar Amul Pyaar and more in the short advertisement videos.

Digital Marketing Strategies of Amul

Yes, indeed, Amul is not as big in television ads as it used to be, the advertising strategy of Amul through digital marketing made the most of it through platforms like Twitter, Facebook, Instagram and others. The digital marketing strategy of Amul also connected well with the customers and took care of any and every complaint.

Marketing Mix of Amul

There is no doubt that Amul is a household name when it is about staple items like cheese and ice cream. In the following section of the blog, we are going to look at the marketing mix of the dairy giant that includes the 4Ps of marketing – Product, Pricing, Promotion and Place.

pricing strategy of amul

Source – The Strategy Story


1. Product Mix of Amul

There is no denying the fact that Amul is one of the most diverse brands when it is about dairy products in India. It has got the widest range of products compared to the competitors. Amul has got a well-built portfolio that includes Amul milk, buttermilk, bread spreads, Amul Dahi, Amul Cheese, Amu Chocolates, Amul Mithai, Amul ice cream and Amul Milk Powders.

The complete range of products has enough competition. However, Amul has successfully ensured the best quality which is still unbeaten. Amul butter, cheese and ice creams are always voted in the poll for their taste and quality. Amul chocolates are also trying to climb up the ladder with parallel-growing brands like Dairy Milk and Nestle.

2. Pricing

Amul’s product price is economic and affordable. They have deployed a low-cost pricing strategy which is also known as penetrative pricing. When Amul first started, there were no Indian players in the market and the company has set itself across India with affordable prices and quality products.

Indeed, the years of inflation have also affected all areas of business and Amul is Not an exception. The distribution and storage of FMCG products are quite high but Amul’s marketing strategy ensures that the prices are in sync with the expectations of the people. Thus, even today, most people prefer Amul.

3. Place & Distribution

Amul is one such brand that has established its presence in every part of the country. All thanks to the massive distribution channel that ensures Amul products reach homes anywhere in India. The distribution model works to buy in bulk and disintegrates it further into smaller chunks and the final product reaches the end customer.

Amul has got two distinguished channels for distribution:

  1. The procurement or acquisition channel through which Amul buys raw materials (milk from villages) and dairy co-operatives and sends them to the manufacturing facilities that convert the raw materials into a wide range of finished goods.

  2. The distribution channels consist of carrying, dealers, distributors, retailers and forwarding agents. Amul has got its exclusive showrooms where Amul products are available.

4. Promotion

As we mentioned earlier, Amul is popular for the longest advertisement campaign character – the Amul Girl. The Amul girl character is not only popular as the song-singing adorable, butter-eating character that everyone loves, but also an informant of the trending events and current affairs taking timely digs through different commercials of Amul. These commercials of Amul make a great point.

If you have noticed, the products like Amul butter and cheese are the ones that are mostly advertised. The reason why Amul doesn’t promote other products in hardcore marketing is that the company doesn’t want to give away its margins in marketing. As per the company reports, it spends only 1% on marketing and advertising. Therefore, the prices are always better than the competitors despite the cut-throat competition.

5. Segmentation, Targeting & Positioning Strategy of Amul

There is no denying the fact that Amul’s marketing strategy has got something for everyone. Here is a look at how Amul has worked through different strategies to become a billion-dollar brand.

Segmentation:

  1. Customer-based segmentation – Kids – Amul chocolates, Amul butter, Amul Kool drinks, Amul Lite Butter, Regular cheese, Amul Pizza Cheese, Cheese spreads, Amul Milk Powder, and Nutra Amul

  2. Industry-based segmentation – Milk – Ice cream manufacturers, restaurants/food chains, coffee shop chains, Butter, cheese, ghee – for Indian households, Bakeries and confectionaries, street vendors and snack shops.

Targeting:

Amul has established its image by being a product that is easily available, and affordable and it surpasses the quality of other brands. Thus, it targets the entire demographic, whether it is rural or urban. It has targeted adults, kids, and industries all together under its product umbrella.

Positioning:

When you say the word butter, what is the first thing that comes to your mind? It is Amul butter. It has successfully positioned itself as the first choice of the national butter consumer and sometimes it is the only choice as well. The campaigns like the “Taste of India” added an emotional quotient to the marketing and it vouches for itself as a family product in every household.

Amul Marketing Strategy – Competitive Advantage

Established in 1946, Amul’s marketing strategy has a competitive advantage as the oldest Indian milk brand. Therefore, it has two main advantages over the competitors in the market.

  1. The Supply Chain & the Distribution Channel – Amul has got an organized and systematic supply chain and many years of experience compared to its peers. Thus, it is tough to compete with Amul. At present, Amul has more than 5 Lakh retailers. Thus, Amul products are available throughout the country.

  2. Distinguished and Wide Array of Product Portfolio – Amul has got a wide array of products that are available to end customers through retailers and exclusive Amul shops. According to Amul’s product portfolio analysis, Amul Butter and Ice Cream are the primary cash cows in maintaining the brand presence in the market.

Some Final Words

Amul has ruled the heart of the Indians and the best part is, it continues to do so even now with its overwhelming products and simple, yet effective marketing strategies. As a fun fact, Amul has created more than 1500 hours of content within the first 1% of its marketing budget allotted in 2020. On the other hand, bigger companies like Netflix spent more than INR 1 lakh crore. All that is to be credited is Amul’s exceptional branding and marketing efforts.

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