Product Mix of Amul Product Mix of Amul Himanshu Ahire 13 Dhiraj Kakati 05 Executive Full Time PGDM ( 2009-2010

) Trimester 2 Symbiosis Institute of Management Studies

Symbol of AMUL (Anand Milk Union Ltd.) is a ring of four hands, which are coordinated with each other. The actual meaning of this symbol is coordination of hand of Different People By Whom This Union is now at top. The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer.It s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as

Objective Introduction 5 Product 7 MARKETING OBJECTIVES 12 Product STRATEGIES 12 Product 12 Place 12 Price 13 Promotion 13 The different product for different people 14 Amul Product Mix 15 Amul Product Portfolio 15 Product-Width 18 Product-length 18 Product Depth 18 Line stretching 22 Conclusion 22

OBJECTIVE To understand the product mix strategy of Amul . To correlate the findings with the help of the theoretical concepts that we have been taught during this semester on Marketing Management. To gain an insight on the product range offered by Amul.

INTRODUCTION In the year 1946 the first milk union was established. This union was started wi th 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the brand name AMUL in 195 5. The brand name AMUL means AMULYA . This word derived from the Sanskrit word AMULYA which means PRICELESS . A quality control expert in Anand had suggested the brand n ame AMUL . Amul products have been in use in millions of homes since 1946. Amul Butter, Amu l Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2009). Today Amul is a symbol of many things of the high-quality products sold at reaso nable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers organization. And have a proven model for dairy development (Generally kn own as ANAND PATTERN ). In the early 40 s, the main sources of earning for the farmers of Kaira district w ere farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of t he milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply o f milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterate far mers by the private traders. The traders used to decide the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustr ated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). AMUL is based in Anand, Gujarat and has been a sterling example of a co-operativ e organization's success in the long term. The Amul Pattern has established itself as a uniquely appropri ate model for rural development.

Amul has spurred the White Revolution of India. It is also the world's biggest v egetarian cheese brand. Members 12 district cooperative milk producers' Union No. of Producer Members 2.36 million No. of Village Societies 11,333 Total Milk handling capacity 6.9 million litres per day Milk collection (Total 2003-04) 1.81 billion litres Milk collection (Daily Average 2003-04) 4.97 million litres Milk Drying Capacity 511 metric Tons per day Cattle feed manufacturing Capacity 2340 MTs per day

PRODUCT A product is anything that can be offered to a market for attention , acquisition , use, or consumption that might satisfy a want or need A product is anything that satisfies a need or wants and can be offered in the e xchange. A product can be goods, service or idea. Without product there is no marketing. This inclu des product variety, quality, product design, and brand name, sizes, warranties. AMUL produc es and sell the product i.e. milk; it has to plan its product very carefully so that the consume r gets only good quality products. RAW MILK Condensed Ghee Butter Cream Packaged Milk Ice cream Beverages pasteurization Dried Skimmed Milk Powder

List of Products Marketed Bread spreads Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter Cheese Range Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza Amul Emmental Cheese

Desserts Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos Fresh Milk Amul Amul Amul Amul Amul Amul Amul Amul Shakti 3% fat Milk Taaza 1.5% fat Milk Ganthiya Gold 4.5% fat Milk Lite Slim-n-Trim Milk 0% fat milk Shakti Toned Milk Fresh Cream Snowcap Softy Mix

For Cooking Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee Amul Malai Paneer Mithai Mate Pro-biotic Dahi Masti Dahi Utterly Delicious Pizza

Powder Milk Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Amul Ice creams Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Ba dshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Cur rant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango)

Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids

SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health Isabcool Chocolate & Confectionery Amul Milk Chocolate Amul Fruit & Nut Chocolate Brown Beverage

Nutramul Malted Milk Food Milk Drink

Amul Kool Flavoured Milk Health Beverage

Amul Shakti White Milk Food Ready to Serve Soups

Masti Tomato Soup Masti Hot & Sour Soup

MARKETING OBJECTIVES Identify & cater to emerging markets all over India Create awareness about the brand name and increase customer loyalty. Tackle the problem of imitation of design. Increase retailer satisfaction by providing better margins. PRODUCT STRATEGIES Product Create awareness about its different brands thereby enabling the customer to diff erentiate between its various brands. Copy-write the packaging design to preserve the distinguishing identity barring c ompetitors from imitating the same. Introduction of larger volume pouches in line with economy packs to provide large scale buyers price benefits. Different shaped pouches for its products for easy identification, e.g Square sha ped pouch for Amul Tazaa, rectangular shaped for Amul Gold, etc. Place Place refers to marketing activities that make products available to consumers a t the right time in a convenient location. It is the process of moving products from the producer to t he consumer, which may involve several steps and the participation of multiple. AMUL has developed federation and AMUL parlors located in several part of countr y. The GCMMF handles the works relating to managing of stocks and distributors in country. Th us GCMMF look after the disbursement of product to the various marketing channels.

Price It is the value, usually in monetary terms that sellers ask for in exchange for the products they are offering. Pricing and product image are closely related. Customers will pay a higher price for well known, well regarded products, partly because of the image created through advertising and o ther promotions. This includes list price, discount, allowance, and credit terms. The prices of produc ts of AMUL are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and fea sibility of prices in the market and accordingly decides the prices of AMUL products. However, the price is inclusive of several elements like, Cost of milk. Labour cost. Processing cost. Packaging cost. Advertising cost. Transportation cost. Sales promotion costs. Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the selling price of milk and milk products. Promotion Place refers to marketing activities used to communicate positive, information a bout an organization, its products and activities to directly or indirectly expedite exchanges in target m arket. It includes a variety of techniques including advertisement, sale promotion, public relation and personal selling that are used to communicate with customers and potential customers. AMUL promotes its products through newspaper, T.V.; hoarding etc. television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoa rding designed on the creative basis attract the customer more.

THE DIFFERENT PRODUCT FOR DIFFERENT PEOPLE Amul never forgot its primary customer Amul collects 447,000 ltrs of milk from 2.12 million farmers (many illiterate) Product for youth Amul launched Chocolate milk under brand name of h. Product for diabetic people India s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics Product for the health conscious Amul Launched low fat, low cholesterol bread spreads Product for the price sensitive India Low Priced Amul Ice Creams and affordable sagar Product for the urban class Amul launched emmental, gouda and pizza mozzarella cheese whitener Amul Kool Koko targeting the yout

AMUL PRODUCT MIX Amul Product Portfolio Amul mainly produces dairy product which falls under nondurable goods category b ut also produces durable goods Examples Durable Goods :-Milk Powders,Ready to Serve Soups Non Durable Goods:- Fresh Milk,Cheese Range & Ice creams Dairy Non Dairy CheeseProducts Bread Spreads Milk Drinks & Desserts Fresh Milk Instant Food Snacks Veg. Oils

Product Mix -Width Product Mix Length Cooking Health Drink Amul / Sagar Pure GheeNutramulAmul Malai PaneerAmul Shakti Health Food DrinkMithai MatePro-biotic DahiMasti DahiUtterly Delicious PizzaBrea d Spreads Cheese Desserts Butter Shredded Pizza Cheese. AMUL Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Low Fat Bread Spread. Emmental Cheese. AMUL Amrakhand. Cooking Butter. Gouda Cheese. AMUL Mithaee Gulabjamuns. Malai Paneer (cottage cheese) Frozen and Tinned. AMUL Mithaee Gulabjamuns Mix. Utterly Delicious Pizza. AMUL Mithaee Kulfi Mix.

Milk Drinks Powder Milk Fresh Milk Product Mix Length Amul Kool Millk Shaake Amul Spray Infant Milk Amul Fresh Milk Food Amul Kool Amul Instant Full Cream Milk Amul Gold Milk Amul Kool Cafe Sagar Skimmed Milk Amul Taaza Double Powder Toned Milk Kool KokoSagar Tea Coffee WhitenerAmul Lite Slim and Trim Milk Nutramul Energy Drink Amulya Dairy Whitener Amul Fresh Cream Amul Kool Flavoured Bottled MilkAmul Shakti Toned Milk Amul Kool Flavoured Amul Calci+ Tetra Pack Amul Masti Spiced ButtermilkAmul Buttermilk Amul Lassee Amul Kool Thandai Table 3

Product-Width The width of a product mix refers to the total number of items in the mix. Example: The total number of items are 8. ( bread spreads , cheese , desert, coo king,health drink, milk drinks,powder milk & fresh milk Product-length The length of a product mix refers to the total number of items in the mix. Example: The total Length of Amul s Product mix is 42 The Total width of Amul s Product mix is 8 ( No of lines) Hence the average product length is ( Total Length / Number of lines) = 44/8 is less than 6 Product Depth The depth of a product mix refers to how many variants are offered of each produ ct in the line Amul s Product Depth Name of Product Variants Price Amul Butter 100g Pack Rs. 25 Amul Butter 500g Pack Rs. 122 Delicious Table Margarine 100g Pack Rs. 13 Delicious Table Margarine 500g Pack Rs. 60 A m u l L i t e L o w f a t Breadspread 200g Tub Rs. 32

Name of Product Variants Price Amul Cheese 400g Tin (EOE) Rs. 117 Amul Cheese Slices 200g Pack Rs. 77 Amul Cheese Chiplets 200g Pack Rs. 66 Amul Cheese 1kg Block Rs. 233 Amul Cheese Spread 200g Tub Rs. 50 Amul Pizza Cheese 200g Pack Rs. 55 Amul Emmental Cheese 400g Pack Rs. 160 Amul Gouda Cheese 250 g Rs. 115 Amul Gouda Cheese 1 kg Rs. 440 Amul Malai Paneer 200g Dice Pack Rs. 36 Amul/Sagar Pure Ghee 1 Litre Tin Rs. 265 Amul/Sagar Pure Ghee 500ml Pouch Rs. 125 Amul/Sagar Pure Ghee 2 Litre Tin Rs. 495 Amul/Sagar Pure Ghee 5 Litre Tin Rs. 1,225 Amul Pure Ghee 1 Ltr Refill Rs. 260 Amul/Sagar Pure Ghee 1 Ltr Pouch Rs. 242 Amul Shrikhand 500g cup Elaichi Rs. 53 Amul Shrikhand 500g cup Mango Rs. 55 Amul Shrikhand 500g cup Kesar Rs. 66 Name of Product Variants Price Amul Cheese 400g Tin (EOE) Rs. 117 Amul Cheese Slices 200g Pack Rs. 77 Amul Cheese Chiplets 200g Pack Rs. 66 Amul Cheese 1kg Block Rs. 233 Amul Cheese Spread 200g Tub Rs. 50 Amul Pizza Cheese 200g Pack Rs. 55 Amul Emmental Cheese 400g Pack Rs. 160 Amul Gouda Cheese 250 g Rs. 115 Amul Gouda Cheese 1 kg Rs. 440 Amul Malai Paneer 200g Dice Pack Rs. 36 Amul/Sagar Pure Ghee 1 Litre Tin Rs. 265 Amul/Sagar Pure Ghee 500ml Pouch Rs. 125 Amul/Sagar Pure Ghee 2 Litre Tin Rs. 495 Amul/Sagar Pure Ghee 5 Litre Tin Rs. 1,225 Amul Pure Ghee 1 Ltr Refill Rs. 260 Amul/Sagar Pure Ghee 1 Ltr Pouch Rs. 242 Amul Shrikhand 500g cup Elaichi Rs. 53 Amul Shrikhand 500g cup Mango Rs. 55 Amul Shrikhand 500g cup Kesar Rs. 66

Name of Product Variants Price Amul Shrikhand 500 g Badam Pista Rs. 61 Amul Mithaee Gulabjamun 1kg Tin Rs. 115 Amul Mithaee Gulabjamun 500g Tin Rs. 64 Nutramul 500g Refill Rs. 110 Amul Chocolates 35g Milk Rs. 15 Amul Chocolates 35g Fruit & Nut Rs. 16 Amul Almondbar 35g Rs. 15 Amul Chocozoo 232g Tin Rs. 125 Amul Chocozoo Tub 500 g Rs. 180 Amul Taaza Double Toned Milk 1 Litre Tetra Rs. 35 Amul Taaza Double Tone Milk 200 ml Tetra Rs. 9 Amul Tazza Toned Milk Nothern Eastern States 1 Litre Tetra Rs. 38 Amul Gold Milk 1 Litre Tetra Rs. 39 Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40 Amul CALCI + high calcium milk 1 Litre Brik Rs. 42 M i t h a i m a t e S w e e t e n e d Condensed Milk 400g Can Rs. 58 Name of Product Variants Price Amul Shrikhand 500 g Badam Pista Rs. 61 Amul Mithaee Gulabjamun 1kg Tin Rs. 115 Amul Mithaee Gulabjamun 500g Tin Rs. 64 Nutramul 500g Refill Rs. 110 Amul Chocolates 35g Milk Rs. 15 Amul Chocolates 35g Fruit & Nut Rs. 16 Amul Almondbar 35g Rs. 15 Amul Chocozoo 232g Tin Rs. 125 Amul Chocozoo Tub 500 g Rs. 180 Amul Taaza Double Toned Milk 1 Litre Tetra Rs. 35 Amul Taaza Double Tone Milk 200 ml Tetra Rs. 9 Amul Tazza Toned Milk Nothern Eastern States 1 Litre Tetra Rs. 38 Amul Gold Milk 1 Litre Tetra Rs. 39 Amul Lite Skimmed Milk 1 Litre Tetra Rs. 40 Amul CALCI + high calcium milk 1 Litre Brik Rs. 42 M i t h a i m a t e S w e e t e n e d Condensed Milk 400g Can Rs. 58

Name of Product Variants Price Amulspray IMF 500 g Pouch Rs. 110 Amulspray IMF 500g Refill Rs. 111 Amulspray IMF 500g Tin Rs. 115 Amulspray IMF 1 kg Pouch Rs. 202 Amulspray IMF 1 kg Tin Rs. 222 Sagar Skimmed Milk Powder 500g Pouch Rs. 110 Amulya Dairy Whitener 500g Pouch Rs. 113 Amulya Dairy Whitener 500g Refill Rs. 114 Amulya Dairy Whitener 1 kg Pouch Rs. 227 Amul Shakti Health Food Drink (Kesa Almond) 500g Refill Rs. 115 Amul Kool (Kesar, Elaichi, Rose) 200ml Bottle Rs. 12 Amul Kool (Kesar, Elaichi, Chocolate) 200ml Tetra Rs. 12 Amul Kool Kesar 250 ml can Rs. 25 Amul Kool Cafe 200 ml Glass Bottle Rs. 15 Amul Kool Cafe 250 ml Can Rs. 22 Amul Kool Cafe 200 ml Tetra Brik Rs. 15 Amul Kool Koko 250 ml Can Rs. 22 Amul Kool Millk Shaake ( M a n g o , S t r a w b e r r y & Badam) 220 ml Can Rs. 22 Name of Product Variants Price Amulspray IMF 500 g Pouch Rs. 110 Amulspray IMF 500g Refill Rs. 111 Amulspray IMF 500g Tin Rs. 115 Amulspray IMF 1 kg Pouch Rs. 202 Amulspray IMF 1 kg Tin Rs. 222 Sagar Skimmed Milk Powder 500g Pouch Rs. 110 Amulya Dairy Whitener 500g Pouch Rs. 113 Amulya Dairy Whitener 500g Refill Rs. 114 Amulya Dairy Whitener 1 kg Pouch Rs. 227 Amul Shakti Health Food Drink (Kesa Almond) 500g Refill Rs. 115 Amul Kool (Kesar, Elaichi, Rose) 200ml Bottle Rs. 12 Amul Kool (Kesar, Elaichi, Chocolate) 200ml Tetra Rs. 12 Amul Kool Kesar 250 ml can Rs. 25 Amul Kool Cafe 200 ml Glass Bottle Rs. 15 Amul Kool Cafe 250 ml Can Rs. 22 Amul Kool Cafe 200 ml Tetra Brik Rs. 15 Amul Kool Koko 250 ml Can Rs. 22 Amul Kool Millk Shaake ( M a n g o , S t r a w b e r r y & Badam) 220 ml Can Rs. 22

Name of Product Variants Price Amul Kool Millk Shaake (Mango & Strawberry) 180 ml Tetra Pack Rs. 15 Amul Fresh Cream 200 ml Tetra Brik Rs. 30 Amul Fresh Cream 1 Lit Tetra Brik Rs. 113 Amul Masti Spiced Butter milk 200ml Tetra Brik Rs. 10 Amul Masti Spiced Butter milk 1 Litre Tetra Brick Rs. 35 Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12 Amul Basundi l Ltr Tetra Brick Rs. 103 Amul Mithai mate 400 g EOE can Rs. 58 Name of Product Variants Price Amul Kool Millk Shaake (Mango & Strawberry) 180 ml Tetra Pack Rs. 15 Amul Fresh Cream 200 ml Tetra Brik Rs. 30 Amul Fresh Cream 1 Lit Tetra Brik Rs. 113 Amul Masti Spiced Butter milk 200ml Tetra Brik Rs. 10 Amul Masti Spiced Butter milk 1 Litre Tetra Brick Rs. 35 Amul Lassee(Rose) 200 ml Tetra Brick Rs. 12 Amul Basundi l Ltr Tetra Brick Rs. 103 Amul Mithai mate 400 g EOE can Rs. 58 Line stretching Every company s product line covers a certain part of the total possible range. Li ne stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line down market, up-market or both ways. Example : Amul is now aggressively adopting the down market stretch by introduci ng ( CHHOTA AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid i.e. to ind ividual of low income group.) Amul has been introducing products with consistent value addition but never left the core philosophy of Providing milk at a basic, affordable price Conclusion This summarizes our research work on Amul s Product Mix. There are various other s trengths of Amul s marketing but we have only brought into context the above topic.