MARKETING PLAN: Amul Ice-Cream

Kunal Singh Thakur IMBA 5TH YEAR

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EXECUTIVE SUMMARY This report is about the marketing of the ice cream industry of Amul. We discuss its goals that it has set for its product Amul and eventually the type of culture of the organization. We also discuss the types of marketing researches before introducing our product to the market and how they have segmented its target market and positioned it in the minds of the consumers. Moreover, we discuss the SWOT analysis in which we highlight the strengths, weaknesses, opportunities, and threats the organization is facing since its product is launched. We further enlighten the marketing strategies employed at different stages of the product life cycle which promote the product and make consumers aware of it.
Introduction

AMUL

means

"priceless"

in

Sanskrit.

quality

control

expert

in

Anand

suggested the brandname Amul(AnandMilk Union Limited) from the Sanskrit Amoolya, Variants, allmeaning "priceless", are found in several Indian languages. Amul products have been in use inmillions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, AmulCheese, Amul Chocolates, AmulShrikhand, Amul I ce cream, Nutramul, Amul Milk and Amulyahave made Amul a leading food brand in India. Today Amul is a symbol of many things.Of high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, ofthe triumph of indigenous technology, of the marketing savvy of a farmers' organization andhave a proven model for dairy development and have a proven model for dairy development and have a proven model for dairy development. Background of the organization History of Amul The Kaira District Co-operative Milk Producers' Union Ltd. was registered on December 1, 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District of Gujarat).

Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city. Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk. Milk collection was also decentralized, as most producers were marginal farmers who could deliver atmost 12 litres of milk per day. Cooperatives were formed for each village too. Introduction on Ice Cream Industry The ice cream market growth picked up after de-reservation of the sector in 1997. Of the totalsize of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, restall is with the unorganized sector. Among the major players in this industry Hindustan Leverhas a market share of around 50%, represented mainly by Kwality Walls brand. Amul with an estimated market share of 41% is rapidly gaining market share and lastly Vadilal is the playerin the national market with 8-9% of the market share. Company Products and Services The product line of our product is fresh milk and real Ice Cream as we are offering the best quality product made of fresh milk and milk fats without any vegetable oil (frozen dessert),through which we provide tasty and creamy ice cream to our consumers. It is not very much expensive; every class of person can buy it. The company is newly launched in India, and it has no products as such and this product will be the inception of the company in this country.

Market Overview Our product is better than others which are currently offered by the competitors because we provide pure dairy ice creams from fresh milk to the consumers. The customer always requires more satisfaction and best quality products and we are providing it. Very soon, we will launch more products and customers will shift to our products, which will probably satisfy the needs of the customer for a longer period of time. Competition Review 1. Wall's 2. Dinshaws 3. Creambell Distribution Review Firstly, we will distribute our products in the capital cities of the country and the price will be moderate so that every class of person can buy it easily from any tuck shop or general store. After earning some profit we will distribute our products to ice cream parlors and parties. Swot Analysis: Strengths and Weaknesses Financially strong and good image in the mind of customer. There is no variation in taste.

Opportunities and Threats Opportunities Lack of focus due to multiple brands. Can reach out to different segments which have remained untouched. Amul must concentrate on heavy promotional advertising in order to maintain its market share. More enthusiastic efforts need to be carried out.

Threats Competition from existing players. Instability of India's political system. Huge investments on advertisement by other brands.

Objectives and Issues: To capture the large share of market. To provide maximum customer satisfaction. Continue product modification and improvement effort to increase customer benefit and reduce cost. Expand production capacity in advance of increasing demand to avoid stakeout. To meet the highest international standards of quality.

Value and Proposition We will offer the customer what they need the most now days that is providing best quality ice cream full of nutrition, fun and customer satisfaction and best quality backed by a large variety. Marketing Strategy: Amul Ice cream adopted customers oriented Marketing strategies to attract customers as much as it can. It follows differentiation strategy such as strategy emphasizes a product that is unique in the industry provides distinct advantage to the consumers. One the prominent Marketing strategy of Amul's is focusing on all classes of customers. Marketing Mix: Product Product Variety: A wide range of dairy ice creams and frozen desserts Quality: Premium ice cream rich in calcium which is fresh every time Design: Includes ice pop, choc bar, dairy ice cream and pop sickle. Features: Made from fresh milk and cream and high in nutrition

Packaging: High quality and eye catching packaging. Packaging color ranges from red, blue, yellow, orange and green. Packaging is colourful in order to attract children.

Price

Sizes: Sizes include 1ltr, 2ltr, and half litre for dairy ice cream. Choc bars & soft serve icecream are of different sizes as well Service: Satisfying the dessert needs of the population in the best possible manner and delivering quality every time to the consumer Warranty: None what so ever. Returns: Only in the case when ice cream is expired.

List Price: Price varies for different ice creams. Depending upon Cups = 20rs Cones= 30rs Ice Pop: 10rs Soft serve ice cream= Rs 10 1Ltr ice cream Tub= Rs 1 2ltr ice cream Tub = Rs 27 The price of its competitor (Walls) is more or less the same and price of liter ice creams is less than Walls which is a great strategy Dinshaws offers a 16% margin to retail traders and shop keepers which is slightly lower than Walls, who offer a margin of 20% to shop keepers. They are new in the market and do not have the same relationship with retailers as Walls.

Place Channels: Sells directly to the end user through retailers and shopkeepers. This is the trend in India. Coverage: Amul ice cream for the time being is only available in India and not available in India. Now the company started off its operation in India.

Transport: Ice creams are transported to retailers and shop keepers through private transportation firms. Locations: Available at large/medium sized and small bakeries, grocery stores and pharmacies in major cities of India. Sell their products directly to consumers using cycles and their own personnel. This strategy has been in practice for many years and is being used by Walls and Dinshaws too.

Promotion Advertising: Vehicle Advertising, Outdoor billboards, Point of Sale Displays and Ads on televisions. Advertisements are mostly colorful reminiscent to their ice cream packaging Message: Linked ice cream with joy and happiness so their tagline/slogan is Art of Happiness. Linked with consumers and got reviews of different ice creams using various mediums social communities e.g. Facebook and Orkut.