MARKETING STRATEGY OF AMUL ICE-CREAMS REPORT
||MARKETING STRATEGY OF AMUL ICE-CREAMS
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The first phase of the project aimed at introduction of Amul and repositioning of Amul ice-creams. In order to execute the same, initial activities included recording the existing volume of sales &analyzing the emerging patterns in ice-cream consumption and also Research conducted. This helped in arriving at important conclusions regarding packaging of the product,price,new positioning of the product,and if customer want less calories ice creams or not.questions encountered to the customers.
AMUL means"priceless"in Sanskrit. A 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 1–2 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.
In rural areas, kulfi / ice creams made by small / cottage industry are popular. The market fororganized sector is restricted to large metropolitan cities. In small towns and villages, there arethousands of small players who produce ice- creams / kulfis in their home backyard and caterto the local market.
Almost 40% of the ice creams sold in the country are consumed in thewestern region with Mumbai being the main market, followed by 30% in the north and 20% inthe south.
Growth promotional activities
The Indian government adopted the policy of liberalization regarding the ice cream industryalso and it is since then that this sector has shown an annual growth ranging from 15- 20% perannum for last 1- 2 years.
Indian Ice Cream market can be segmented in three different ways, namely on the basis offlavors; on the basis of stock keeping units / packaging and on the basis of consumer segments.