The first time that most of us came across Amul was when the catchy tune of ‘Amul Doodh Peetha Hai India’ rang from the television. Though many of us were really young at that time, ever since we grew up, whenever we encounter some variation or the other of the same tune, it never fails to evoke a melange of memories.
Anand Milk Union Limited., also known as Amul, is a 75+ years old brand, which is still a market leader when it comes to dairy products. Amazing, isn't it?
Some brands are, for a long time successful, but few managed to touch our hearts, and Amul is one such brand that truly touched our hearts and etched its long-term success out on it.
How did Amul manage that?
The answer is the quality of the Amul products, their innovation, and its marketing strategies no doubt.
When the Covid-19-induced lockdown marred many companies and disrupted their marketing strategies, sales and revenues, Amul managed to come up with a turnover of Rs 53,000 crore. Furthermore, the brand also successfully added 60 new products to its inventory along with donating Rs 800 crore to the rural farmers. Amul in 2022, is aiming to clock Rs 60,000 crore and is eyeing to achieve the Rs 1 lakh crore mark in sales by 2025.
Let's take a look at the various Marketing Strategies of Amul, its advertising strategy, Amul's Marketing Mix, STP Analysis, Pricing Strategy & more.
- Amul's Branding as 'The Taste of India'
- Amul’s Product Portfolio adds to its Marketing Strategy
- Amul's Low-Cost Pricing Strategy
- The 25 percent of Amul's Advertising Strategy
- Amul Girl - Advertising Mascot of Amul
- Digital Marketing Strategy of Amul
Amul Marketing Strategies [Infographic]
Amul Marketing Strategies [Detailed]
Amul's Branding as 'The Taste of India' & Amul Girl as Mascot
The first aspect of its marketing strategy of Amul is branding. What has primarily led to the Success of Amul is undoubtedly its Branding strategies. We are all aware of Amul’s tagline- ‘The taste of India’. The tagline banished the notion that bread and butter are a staple of only the British breakfast and pulled nationalism in. The never-ageing girl who wore a polka-dotted dress, with blue hair and an orange face was the company’s icon. Amul marketed all of its products under a single name, which helps the brand sum up its marketing and advertising costs within 1% of the revenue.
Amul’s Product Portfolio adds to its Marketing Strategy
Amul uses an umbrella marketing strategy. With the Amul Girl campaigns and their constant content marketing efforts, their marketing strategies are always on point.
The second aspect of Amul's marketing strategy is its product portfolio. Amul’s variety of products caters to a large audience. While certain brands such as London diary, Baskin Robbins, etc., managed to capture a few regional (ice cream) markets where they cater to high-end customers, Amul secured their standing in the overall dairy market. Their main target audience was, however, the middle and economic classes. The simple reason behind their retention of customers is because of the product pricing, which is discussed next.
Amul's Low-Cost Pricing Strategy
The third aspect is product pricing. It is one of the best promotional strategies adopted by Amul. It opted for a low-cost pricing strategy for products that are consumed regularly. This pricing strategy of Amul made it affordable for its target audience. Increasing the price of goods proportional to their audience’s increase in income helped them retain their customer base. A competitive pricing strategy, such as a one-on-one offer, was adopted for products facing heavy competition.
One such product line is ice cream. As Amul is a co-operative, it aimed to get the best price for the producer as well as the consumer, unlike certain companies that focused only on profit. But being an FMCG company surely involved a well-planned production, storage, and distribution network which is expensive. Yet Amul sold goods at affordable prices. How did they do that?
A well-planned and executed logistics and supply chain model was incorporated. Amul was a three-tier cooperative structure.
- At the village level, there were cooperative societies producing milk.
- At the district level, there were milk unions with processing centres.
- At the state level, there were milk federations responsible for consolidation.
This transparent model led to maximum returns for the suppliers- the farmers. As the prices increased, their income accordingly increased as well. Also, co-operatives are one big family. Surplus products were sent to areas with high demand and vice versa. So, that was the Amul distribution strategy. All the above-mentioned factors were 75%. Without the 25%, 75% was as good as zero. So what was the 25%?
The 25 percent of Amul's Advertising Strategy
We reached the final aspect of Amul’s marketing strategy, 25% of Amul's advertising strategy. Without advertising, the target audience wouldn’t be aware of the existence of the product. Amul was (and still is) in the Guinness record for running the longest-ever advertising campaign. The butterly girl is thirty-nine years old now, though she certainly didn’t appear to be! Top-of-the-mind positioning was achieved by Amul, meaning Amul was first thought of when it came to dairy. The butterly girl appeared in hilarious topical representations involving butter and current affairs!
Amul also came up with several taglines such as ‘Amul Doodh Peetha Hai India’,’ Har Ghar Amul Ghar’,’ Pehla Pyaar Amul Pyaar’, and so on in its short advertisement videos. Every advertisement was guaranteed to make you chuckle appreciatively at its wit, warm your heart, or tickle your funny bone.
Amul Girl - Advertising Mascot of Amul
The well-known mascot of Amul - 'Amul Girl' is a cartoon of a young Indian girl dressed in a polka-dotted dress with blue hair and a half pony tied up. The Amul Girl's first advertisement portrayed the Amul product - Amul Butter as 'Utterly Butterly Delicious'. This was a total hit!
An interesting story behind this - The Amul girl was created as a response to Amul's rival brand Polson's butter- girl. This sales strategy of Amul was conceived in 1967 once ASP (Advertising, Sales, and Promotion) clinched the brand portfolio from the previous agency FCB Ulka. The Amul girl has been the face of Amul since 1966 and is considered the longest-running advertising campaign.
Digital Marketing Strategy of Amul
While not as big a presence in television ads as it used to be, the advertising strategy of Amul through digital marketing made the most of it through platforms such as Facebook, Twitter, Instagram, and others. Amul’s digital marketing strategy also made it a point to connect with its customers and take care of any and every complaint rigorously.
These Seven aspects of Amul's marketing strategies made Amul a leader in its sector. While every company had its ups and downs, Amul managed to stand strong. Its emphasis on quality and integrity was what made it a survivor in the current market.
Marketing Mix of Amul
Marketing Mix is the combination of factors that can be controlled by a company to influence consumers for purchasing their products. Amul has become a household name when it comes to staple items like cheese and ice cream. We’re going to be looking at the marketing mix of the dairy giant which includes the 4Ps of marketing. Product, pricing, place, and promotion.
Amul is one of the most diversified brands when it comes to dairy products in India. It has the widest range of products compared to its competitors. Amul’s well-built portfolio includes Amul milk, buttermilk, bread spreads (ghee, butter, garlic butter), Amul Dahi (mishti dahi, regular dahi), Amul Chocolates, Amul cheese (mozzarella, regular), Amul mithai mate, Amul milk powders, and Amul ice cream.
The entire range of products has enough competition but Amul’s quality of the products is unbeaten so far. Amul butter, cheese, and ice creams will always be voted in a poll for their quality and taste. Amul chocolates have been trying hard to climb up the ladder with parallel growing brands like Nestle and Dairy Milk. However, no other brand has been able to build a portfolio such as that of Amul and that is one of the biggest competitive advantages for the company.
Amul’s pricing is economic and affordable. The low-cost pricing strategy may also be termed penetrative pricing. When Amul first started out, there were no Indian players in the market and the company has established itself across India with quality products and affordable prices. Of course, over the years inflation has affected all areas of business and Amul is no exception. The distribution and storage costs of FMCG products are quite high but Amul has made sure it keeps its prices in sync with people’s expectations and even today a majority of consumers’ first choice is always Amul.
Place and distribution
Amul is one such brand that has established its presence in every part of the country. All grace to the massive distribution channel that makes sure that Amul products reach homes pan India. The distribution model works on buying in bulk and disintegrating it further into smaller chunks where the final product reaches the end customer.
Amul has two distinguished channels for distribution -
- The procurement or acquisition channel through which Amul buys raw material that is milk from villages and diary co-operatives and sends it to the manufacturing facilities which convert the raw material into a wide range of finished goods.
- The distribution channel consists of carrying and forwarding agents, distributors, dealers, and retailers. Amul has its own exclusive showrooms where all Amul products are available.
Amul is well known for its longest advertisement campaign character- the Amul girl. Courtesy of Mr. Eustace Fernandes, the creator of the famous mascot, the Amul girl has been widely popular with the Indian households as she’s not only the butter-eating, song-singing adorable character that everyone loves, but also an informant of the current affairs, taking timely digs through Amul’s commercials. These commercials hit home and make a point. Well, if you have noticed, products such as Amul butter and Cheese are the only ones that are majorly advertised. The reason for its absence in hardcore marketing for other products is that the company does not want to give away its margins in marketing and according to the company it spends only around 1% on marketing and advertising. No wonder its prices are always better than its competitors despite cut-throat competition.
Segmentation, Targeting and Positioning (STP) Analysis of Amul
Amul is a brand that has something for everyone in its product range. Let’s have a look at how Amul has worked through the three strategies to become a billion-dollar brand.
- Customer-based Segmentation: Kids- Amul chocolates, Amul Kool drinks, Amul Butter, Amul Lite butter, Amul Pizza Cheese, Regular cheese, Cheese spreads, Amul milk powder, Nutra Amul
- Industry-based segmentation: Milk- Ice cream manufacturers, Restaurants/food chains, cafes, and Coffee shop chains. Butter, Cheese, Ghee- Indian households, Bakeries and Confectionaries, street vendors, and snack shops.
The value-for-money brand has established its image by being a product that is easily available, affordable, and surpasses the quality of other brands, thus, targeting the entire demographic be it urban or rural. It has targeted kids, adults, and industries, all together under its product umbrella.
What comes to your mind when you say butter? It's obviously Amul as it has positioned itself as the national butter and consumers’ first, and sometimes the only choice. Campaigns like “The Taste of India” have added an emotional quotient to its marketing, and vouches for itself as a family product in every household. Value for money, quality, and availability are other crucial attributes that have positioned Amul to where it stands today.
Amul's Competitive Advantage in Marketing
Established in 1946, Amul clearly has a competitive advantage as the oldest Indian milk brand in India. It has two main advantages over its competitors in the market.
- Supply chain and distribution channel: Amul has an organized and systematic supply chain and years of experience compared to its peers which makes it a tough one to compete with. Amul has over 5 lakh retailers that make products available throughout the country.
- Distinguished and wide range of product portfolio: Amul has a wide range of products that are easily available to the end consumers through retailers and exclusive Amul shops. Amul’s product portfolio analysis reveals that Amul Butter and Ice Cream are the cash cows in maintaining the company’s brand presence in the market.
Amul has truly ruled the heart of the Indians and continues to do so even now with its overwhelming products and its simple, yet memorable and effective marketing strategies. As a fun fact, Amul has produced more than 1500 hours of content within the 1% of its marketing budget allotted in 2020 whereas, on the other hand, companies like Netflix spent more than INR 1 lakh crore. This is more than impressive, isn't it? However, all that is to be credited is Amul's exceptional branding and marketing efforts along with the no-compromise attitude in terms of quality that the brand has firmly stuck to!
What is the Amul business model?
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level.
What is the tagline of Amul?
Amul's tagline is 'The Taste of India'.
What is the Amul slogan?
The Amul slogan says, 'Utterly Butterly Delicious'.
How Amul is using the power of Marketing?
From a low-cost pricing strategy to reaching every nook & corner of the country, Amul's marketing strategy has no bounds. The most popular Amul Girl to its ad campaign - 'Amul Doodh Peeta hai India' Amul has won the hearts of many through these popular advertisements. Amul has reduced its reliance on TV and is seen across various social media platforms now.
What is the target market of Amul?
Amul has a very wide target market. Amul is considered a brand for the entire family. Its target audience starts from consumers aged 5 to people in their 70s. Amul caters to all income groups.
What is Amul's pricing strategy?
Amul has a low-cost pricing strategy for products that are consumed regularly. This pricing strategy of Amul made it affordable for its target audience. Increasing the price of goods proportional to their audience’s increase in income helped them retain their customer base. A competitive pricing strategy, such as a one-on-one offer, was adopted for products facing heavy competition.
Why Amul is a Successful Brand?
Amul has a well-planned and executed logistics and supply chain model. Amul's low-cost pricing strategy, which was affordable by any income group, was one of the main reasons for its success. Amul’s tagline- ‘The taste of India’, banished the notion that bread and butter are a staple of only the British breakfast and brought nationalism into it.
Why was the Amul girl created?
The Amul girl was created as a response to Amul's rival brand Polson's butter-girl. This sales strategy of Amul was conceived in 1967 once ASP (Advertising, Sales, and Promotion) clinched the brand portfolio from the previous agency FCB Ulka.
What is the market share of Amul?
Amul is said to have clocked a growth rate of around 30% and has a market share of 86%.
What is the Amul's Marketing Plan?
Some business strategies/marketing plans of Amul are associated with:
- Product Portfolio
- Product Pricing
- Digital Marketing