Amul Ice Cream Marketing Strategy

April 2, 2018 | Author: keshav956 | Category: Dairy Products, Foods, Food & Wine, Dairy, Agriculture


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IntroductionAMUL means" priceless" in Sanskrit. A quality control expert in Anand Suggested the brand name Amul (Anand Milk Union Limited) from the Sanskrit Amoolya, ´ Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul 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. 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, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization and have a proven model for dairy development. And have a proven model for dairy development and have a proven model for dairy development. 1 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. The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later, along with Kurien's help, making it on a commercial scale,[12] led to the first modern dairy of the cooperative at Anand, which would successfully compete against established players in the market. zThe trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. . 2 Introduction to Brand 3 Introduction on Ice Cream Industry The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, rest all is with the unorganized sector. Among the major players in this industry Hindustan Lever has 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 player in the national market with 8-9% of the market share. Production area In rural areas, kulfi / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce ice- creams / kulfis in their home backyard and cater to the local market. Almost 40% of the ice creams sold in the country are consumed in the western 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 industry also and it is since then that this sector has shown an annual growth ranging from 15- 20% per annum for last 1- 2 years. Types Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavours; on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis of flavours the market today has a number of flavours like vanilla, strawberry, chocolate, mango, butterscotch and a number of fruit flavours, dry fruit flavours traditional flavours like Kesar Pista, Kaju Draksh etc. The market is totally dominated by Vanilla Strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other fruit flavours. 4 Butter Scotch.Alphonso Marvel. Fundoo balls (vanilla & mango) 8) Utterly Delicious Take away (Available in 500ml. Strawberry.Alphonso Mango. Hum Tum. Cake magic 6) Malai Kulfi – Masti kulfi. Amul Ice-Creams Variants 1) Prolife Ice-cream – Vanilla with chocolate sauce. Choco crunch 5) Novelties – Cassata. fundoo chocobar. Candies 4) Cones – Butter Scotch. Fruit n Nut Fantasy. Sundae magic . Chocolate Passion.5L & 2.Double sundae 3) Sticks – Frostik. 1. Chocolate. Dollies. Draksh. 1. Two in One. Shahi anjir 2) Sundae – Sundae. Vanilla. Shahi pista 7) Kids – Sundae fundoo.2L) Vanilla Royale. Kis Mis Kaju 10) But 1 Get 1 Free – a) Spanish Saffron with Cream Balls + Same b) Rajbhog + Same c) Fresh Litchi + Same d) Shahi Anjir + Same e) Kesar Pista Royale + Same f) Fresh Pineapple + Same g) Fruit Bonanza + Same h) Chocolate + Same i) Alphonso Mango + Same j) Tutti Fruti + Same k) Green Pista + Same l) Prolife Vanilla + Butter Scotch 5 Kaju . Butter Scotch. Kesar Pista Royale.25L. 9)Utterly Delicious Cups . Butter Scotch Chocolate 6 . Strawberry.m) Vanilla Royale + Same n) Butter Scotch + Same o) Gauva + Same p) Cookie and Cream + Same q) Thandai + Same r) Afghan Dry Fruit + Same s) Shahista Pista Kulfi + Same 11) Couple Pack (250ml) – Vanilla Royale. Saffron. Almond Pistachio.5% fat Milk  Amul Slim-n-Trim 0% fat milk  Amul Chocolate Milk  Amul Fresh Cream  Amul Snow-cap Softy Mix Pure Ghee:  Amul Pure Ghee  Sagar Pure Ghee Infant Milk Range:  Amul Infant Milk Formula 1 (0-6 months)  Amul Infant Milk Formula 2 ( 6 months above)  Amulspray Infant Milk Food 7 . Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix UHT Milk Range:  Amul Taaza 3% fat Milk  Amul Gold 4.Various Other Brand of Amul AMUL‟S OFFERINGS Breadspreads:  Amul Butter  Amul Lite Low Fat Breadspread Cheese Range:  Amul Pasteurized Processed Cheddar Cheese  Amul Processed Cheese Spread  Amul Mozzarella Cheese  Utterly Delicious Pizza Mithaee Range (Ethnic sweets):      Amul Shrikhand (Mango. 5% fat Curd Products:  Amul Masti Dahi (fresh curd)  Amul Butter Milk Chocolate & Confectionery:  Amul Milk Chocolate  Amul Fruit & Nut Chocolate  Amul Éclairs Brown Beverage:  Nutramul Malted Milk Food 8 .Milk Powders:  Amul Full Cream Milk Powder  Amulya Dairy Whitener  Sagar Skimmed Milk Powder  Sagar Tea and Coffee Whitener Fresh Milk:  Amul Taaza Toned Milk 3% fat  Amul Gold Full Cream Milk 6% fat  Amul Shakti Standardised Milk 3% fat  Amul Smart Double Toned Milk 1. Market Share of Ice-Cream Brands COMPETITORS 9 . was founded in 1956.Vadilal (Vadilal Industries Limited) From a small outlet in Ahmedabad over 80 years back. It is a company of Hindustan Unilever. The main rivals are following. Kwality. Vadilal Industries Ltd has today emerged as India‟s second largest ice cream player. 3. Nestle Kwality Walls Vadilal Mother Dairy 1. Kwality entered into an agreement with Lever. and is an extension of the Wall's ice cream brand of Great Britain. With seven factories and a large number of co-packers. the arm of Unilever in India. In 1995. 2. 10 . and was the first in the region to import machinery for the mass production and sale of ice cream on a commercial scale. Pakistan. 1. the original Indian company. Of Switzerland. 4. Nestle India is a subsidiary of Nestle.A. and has since been known by its current umbrella name.S. curries and breads. in view of the growth potential of the frozen confections market.Malaysia and Singapore. The company is also one of the largest processed food players in India with significant exports of frozen vegetables and ready to eat snacks. Nestle India is a vibrant Company that provides consumer in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction 2. 3.Competitors are the once who produce and sell the same product as producer by the unit competitors affect the business with several caused. Sri Lanka. Kwality Walls Was previously known as Kwality owned by Pishorilal Lamba Kwality Wall's is a major producer and distributor of ice cream and other dessert products in India. 3. butter. Mother Dairy.Vadilal‟s aim is to become an Indian MNC in Ice creams and frozen foods and to provide products and services at an affordable price without compromising on quality.). ice cream. fruit juices). etc. milk products. is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India Mother Dairy's range of products includes the brands Mother Dairy (milk. Objective of the study   To have a clear understanding of the ice cream industry and Amul‟s position in market 11 . Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables. set up in 1974. frozen vegetables. curd. price acceptance.  To check awareness. To find out the problems and issues faced by the wholesalers  To understand the distribution channel of the Amul Ice Cream  To study consumer perception and competitive  To increase sales of Amul ice-creams  To brand existing outlets and convert new outlets for Amul  To conduct an exhaustive market research on introduction of new “low calories” flavours. RESEARCH METHODOLGY RESEARCH DESIGN 12 . innovation excitement amongst consumers  To check the awareness as well as level of satisfaction of retailers with distributors &the company with regards introduction of new flavours  To develop strategies and come out with suggestions for increasing the sales. Sample design is a definite plan of obtaining some items from the whole population. The cause were tried to be discovered. when they were contacted between 1:00 pm to 5:00 pm. the time when most of the people take rest during the scorching heat. The major purpose of this research was the description of the affairs as it exists at present. SAMPLING TECHNIQUES 13 . The sample design used in this cluster sampling. People were not willing to answer.The research methodology adopted is of descriptive type. SOURCES DATA One had to depend mainly on primary data as firsthand knowledge was required about market position of various brands in the ice cream. SAMPLING DESIGN Sample design is a definite plan of obtaining some items from the whole population. They are widely used in the sampling of human populations. The sample used in this project is Cluster. CLUSTER SAMPLING Here the whole area is divided into some geographical area and a definite number of retailers were to be surveyed Cluster sampling are frequently utilized when no list of sample population is available. Even though there was no control over the variables. When no complete universe listing exists. The facts or information gathered were analysed to make a critical evaluation of the information. Sampling methods in which universe elements are chosen in groups rather than individually are called cluster-sampling methods. it will sometimes be more expedient to select items individually. a type of sampling is called area sampling may be the only practically feasible form of probability sampling. In marketing research practice. Separate questionnaire was prepared for established and unexplored markets. Lastly the final questionnaire was prepared with various modifications to the previous questionnaire. Next format was prepared based on prior discussion. So our actual study was conducted in 3 stages: First we discussed with our guiding officers on the various parameters of the project. We also talked informally with some consumers and retailers to have some preliminary idea. each items in the sample is chosen one at a time from a complete list of universe elements. In the probability sampling methods. Sant Nagar.The stratified sampling method was followed. SWOT Analysis of Amul Ice Cream 14 . The findings resulting of the analysis varied from area to area and the recommendations stated accordingly arrived at after thorough and recommendation stated accordingly. Naharpur. So stratified sampling technique had to be applied in order to obtain a representative sample. There exist people of different occupation. The sample size of retailers varied from 7 to 25 according to the size of the market. The population of all the towns was not homogeneous. In Burari. The sample size taken was 30. Krishna market the sample size taken was 30. SAMPLE SIZE The sample size varied from town to town for retailers. DATA ANALYSIS The data were analysed separately for each area. Weaknesses:- 1) Advertising is low profile. 5) E-commerce. However Kwality Walls on the other hand is into heavy advertising and consequently. 3) Distribution coverage Threats:15 never. 3) Less attractive packaging. 2) Shortage of stock during season. Majority of the respondents have hardly seen any ad of Amul ice cream. 3) Penetration pricing strategy. 2) It is a high growth segment as the population is every increasing with demands. 4) Distribution problems. 5) Retailers now demand freezers without having to pay any deposit. as the results of the survey show. 2) 38% market share in the national ice cream market. new products and process technology. 4) Reputation of high quality. 6) Limited international presence as compared to leading global brands Opportunities:1) Internet promotions are a good means of awareness which should be tapped.Amul is the price warrior in the ice-cream market and currently has a very wide range to offer for all the price points. is popular.ending .Strengths:- 1) Biggest Sourcing base for milk and milk products in India. This is especially true of those retailers who already stock one or the other ice cream brands. 3) Also the low per capita income low per capita consumption of the people is a threat to Amul. 2) The customers have very well received the Kwality Walls product differentiation strategy and Mother Dairy is also pushing up its advertising pitch.1) Amul is currently facing stiff competition from Kwality Walls and may face more threat from the local manufactures in the low priced segment ice creams. 5) Even Vadilal is coming up with their new strategy and promotions of various variants Of ice creams 6) Health conscious people refraining from sweets 16 . 4) Free entry to the markets. high school.EXISTING STP AND SWOT OF AMUL ICE CREAM STP I) SEGMENTATION 1) Geographical – Urban and Rural 2) Demographic - A) Age: 1 to 60 B) Family Life Cycle: Young.e. College Goers. Diwali and Valentine‟s Day etc. Older C) Education: Grade School or less. Accepted by all religion. Single. D) Buyer Readiness: The consumers are ready to buy these products and so the buyer readiness is high. etc. E) Loyalty Status: The loyalty for Amul Ice-cream is Shifting Loyal as there is a major competitor in the market i. Kwality walls 17 . Married. D) Attitude towards the product: The attitude towards the product is positive as people have trust in Amul‟s products. college graduates. 3) Psycho graphicWorking Class. 4) BehaviouralA) Occasions: Amul targets special occasions such as New Year‟s Eve. Nestle. C) Usage Rate: The usage rate is very high in behavioural segmentation of Amul Ice cream. B) Benefits: They provide good quality product at economical prices. Middle.II) TARGET The target of Amul Ice-cream is Lower. 18 . It targets both men and women and children III) POSITIONING Amul Ice Cream is positioned as an Ice Cream with various flavours for all occasions and for all age groups. Upper Middle Income group people. What ice cream brand comes in your mind when you heard the word ICE CREAM? a) Kwality walls b) Amul c) Mother dairy d) Baskin robins e) Naturals f) Other Brands Naturals Amul Baskin robins Kwality Others 19 .FINDINGS OF THE SURVEY 1. 2. Do you like AMUL ice-cream? Yes No Likes Yes No 20 . Yes No 21 .3. Have you seen the ads of amul ice-creams? Yes No Seen the Ads. Do you think that price of amul ice-creams are high? Yes No Price high Yes No 22 .4. Is the brand name visible? Yes No Brand Visibility Yes No 23 .5. 6. Do you like the packaging of the brand? Yes No Like the packaging Yes No 24 . 7. Have you visited the amul parlour? Yes No Visit the parlour Yes No 25 . 8. Do you think amul should use the brand ambassador or it should stick with the amul girl? Yes No Amul Girl Vs Brand Ambassador Amul Girl Brand Ambassador 26 . Would you prefer amul ice-cream in a less-sugary base? Yes No Preference on Sugar Base Yes No 27 .9. Do you still prefer amul ice-creams after the worm controversy? Yes No Preference after warm-Contravercy Yes No 28 .10. 11. Do you think that amul has succeeded in all marketing strategies it has undertaken to get the control of the confectionery market? Yes No Success in Marketing Stratergy Yes No 29 . 12. c. b. News paper Advertising Radio Hoardings Media News paper Advertising Radio Hoardings 30 . From where do you come to know about the amul ice-creams? a. d. 13. Would you prefer a „low calories‟ ice-creams even if it is priced high? Yes No Preferece over low Calories Ice-Cream if Price high Yes No 31 . Are you satisfied with the amul ice-cream? Yes No Satisfaction Yes No 32 .14. 15. Any other suggestion? Suggestion Yes No 33 . As most of the people are health conscious they would like to have a „less sugar based‟ or „no added sugar‟ chocolate. But Most people will not prefer a „Low Calories‟ chocolate even if it is highly priced. it is clear that: 1. 2. 34 . People love Amul ice cream very much. 3. It is the most preferred brand of ice cream. especially if it comes from a reputed name like „AMUL‟.ANALYSIS OF THE SURVEY Through this survey. 4. THREATS: 1. 3. Flavours will be launched in the near future. Good Visibility.e. it is clear that if a new product is launched in the market. Especially for the health conscious people. Competitors. High priced. Kwality walls STP OF AMUL ICE CREAM HEALTH WEALTHY 35 . A „Low Calories‟. it will most probably be a success. For the health conscious people. i. 2. Comes from a reputed company „Amul‟ 3. 200. Following is the new product. Priced at Rs. „LOW CALORIES‟ Ice cream. its features and a SWOT Analysis and STP of the product: Company: Amul Brand: Ice Creams Product Launched: Amul Ice Cream Healthy wealthy (Low Calories) Tag Line: “Enjoy Moments of Happiness in a healthy way” Characteristics: 1. WEAKNESSES: 1. OPPORTUNITIES: 1.REPOSITIONING OF THE BRAND After the findings and analysis of the survey. Good Product Quality and packing. 2. SWOT ANALYSIS OF CADBURY DAIRY MILK HC STRENGTHS: 1.Nestle. also by those who have busy lifestyle. 4. PSYCHOGRAPHIC: It can be used by working class as well as house wives who are health conscious.  LOYALTY STATUS: Loyalty status will be „Hard core Loyals‟ as there is no much completion in the market. GEOGRAPHIC SEGMENTATION: It will target the Urban Market. Whenever the person wants he can consume the product and not worry about the calories also. 3. BEHAVIOURAL SEGMENTATION: BENEFITS: Low on calorie.  BUYER READINESS STAGE: The buyer will be ready to buy this product as it will be low on calorie even if it is highly priced. So buyer readiness will be high. Upper Middle Income group.  USAGE RATE: The Usage Rate will be high as it will be consumed more in urban areas. easily available in supermarkets and general stores also  OCCASIONS: There is no specific occasion for consuming this ice creams. It is accepted by all religions. good quality. 2. DEMOGRAPHIC SEGMENTATION:    AGE: The age of the customer will be between 18 to 35 years. INCOME: Middle income. TARGETING: 36 . OCCUPATION: It can be consumed by people of all occupations.SEGMENTATION: 1. Its USP will be that it will be rich in nutrients which are necessary for maintaining the health of the person. POSITIONING: It will be positioned as a „LOW CALORIES‟ ice cream.“Amul Ice Cream Healthy wealthy” will be targeted on both men and women who are health conscious and also youth who are more health conscious. LIMITATIONS 37 . RECOMMENDATIONS 38 .  The time duration of two months was too short for the completion of all activities.  Being a perishable product no sample could be shown. shops located in corners of by lanes were difficult to locate. The study is limited to North East Delhi. as demanded by many prospecting clients.  Due to unavailability of proper conveyance facility.  In many residential blocks. it was really hard to cover the market under a scorching sun.  Company should provide uniforms to vendors as other company do.In order to maintain and increase the sales in the city of Delhi. Company should have to open more APO‟S & A class outlets because total number of outels in delhi are very less. CONCLUSION 39 . are hereby suggested:  First and foremost Amul should take proper action in order to improve service. the following recommendations regarding Amul ice cream. promotional policies.  Company should introduce some new flavours in its range of ice-creams. Packaging is one of the main areas of disagreement with the ice cream because the packaging of the ice cream creates problem with caring and forwarding. particularly regarding advertisement. because although being on a top slot in Butter and milk supplies it does not get the sales in ice cream.  Amul should give local advertisements apart from the advertisements given at the national level. free gifts etc. Local advertisement must mention the exclusive Amul shops of the city.  The company needs to improve their packaging material quality.  Company should introduce sales promotion schemes like free extra weight. distribution. etc. which it should get. People have believed in Amul‟s product and they will accept its ice cream also if effective actions were taken.As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk. company can find out its weak points in Ice cream product and can increase its market share through rectifying mistakes. It is very difficult proposition to draw conclusion to the Amul Ice creams business and the impact it has on our daily life. but prompt availability of other ice cream brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. With the help of this project. Amul is a company that strongly pushes itself as an Indian company With the help of research. it can be concluded that the marketing strategies followed by Amul are very successful. Butter and Cheese. which are its main/core products. As we know Amul is a co-operative organization but ice cream industry is a profitable industry we can‟t ignore it. The survey resulted into following conclusions:  Amul must come up with new promotional activities such that people become aware about Amul Ice cream  Quality is the dominating aspect which influences consumer to purchase Amul product. 40 . motherdairy. Ninth Edition”.com www. Stuart. Year 1995. Philip Kotler.” Marketing Management.com www.com www.” The Real Power Of Brands”. Prentice Hall.com www. Personnel: www.BIBLIOGRAPHY Books: 1. 2. 4.com www. Printed in the United States of America. Crainer.wikipedia. Claes (1992). Tenth Edition” .” Principles of Marketing.. “A National Customer Satisfaction Barometer: The Swedish Experience”.com Sample survey by questionnaire 41 .consumerpsychologist.vadilal.amul. Year 1999.com www. Year 1996. PITMAN Publishing. 3.marketreseach. Printed in Great Britain. Fomell.kwalitywalls. Printed in India. Journal of Marketing. Philip Kotler. What ice cream brand comes in your mind when you heard the word ICE CREAM? a) b) c) d) e) f) Kwality walls Amul Mother dairy Baskin robins Naturals Other (please specify) 2. Is the brand name visible? Yes No 6. Do you think amul should use the brand ambassador or it should stick with the amul girl? 42 . No\Email id: ________________________________ Age: ________ Occupation: _______________________________________ 1.QUESTIONAIRE Survey on Amul Ice Cream Name: ___________________________ Gender: _________________________ Location: ________________________ Ph. Do you like the packaging of the brand? Yes No 7. Have you visited the amul parlour? Yes No 8. Do you think that price of amul ice-creams are high? Yes No 5. Have you seen the ads of amul ice-creams? Yes No 4. Do you like AMUL ice-cream? Yes No 3. ii. news paper advertising radio hoardings 13. iv. From where do you come to know about the amul ice-creams? i. Do you still prefer amul ice-creams after the worm controversy? Yes No 11. iii. Any other suggestion? ___________________________________________________________________________ 43 . Do you think that amul has succeeded in all marketing strategies it has undertaken to get the control of the confectionery market? Yes No 12.Amul Girl Brand Ambassador 9. Are you satisfied with the amul ice-cream? Yes No 15. Would you prefer amul ice-cream in a less-sugary base? Yes No 10. Would you prefer a „low calories‟ ice-creams even if it is priced high? Yes No 14.
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