The first time I came across Amul was when the catchy tune of ‘Amul Doodh Peetha Hai India’ rang from the television. I was, maybe six years of age. Thirteen years later, I still encounter some variation or the other and it evoked memories as always. Some brands are, for a long time successful, but few managed to touch our hearts. So how did Amul manage that? Let's take a look at the various marketing strategies of Amul:
Some Marketing Strategies of Amul
The first aspect of the marketing strategy of Amul is branding. 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-aging 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 led to advertising merely costing one percent of its revenue.
The second aspect of Amul's marketing strategy was Amul’s product portfolio. Amul’s variety of products catered to a large audience. While certain brands such as London diary, Baskin Robbins, etc., managed to capture 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.
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 centers
- 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 percent. Without the 25 percent, 75 percent was as good as zero. So what was the 25 percent?
We reached the final aspect of Amul’s marketing strategy, 25 percent 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.
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 Six 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.
Frequently Asked Questions
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?
The Taste of India Amul – 'The Taste of India'
How did Amul solve the media problems?
Amul has had a record in content marketing for years. It is now becoming an example of customer service on social media. The brand has proved that it is actually using social media for listening to its customers and solving their queries on Facebook.
Why was 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 marketing plan of Amul?
Some business strategy of Amul or marketing plan of Amul:
- Product portfolio.
- Product Pricing.
- 25-percent Advertising.
- Digital Marketing.