Published by MBA Skool Team, Last Updated: August 15, 2021
Marketing Strategy of Amul analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Amul marketing mix, help the brand succeed.
Amul marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Amul Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Amul Product Strategy:
The product strategy and mix in Amul marketing strategy can be explained as follows:
Amul is one of the leading brands in milk products in India. Amul has a very diverse product range in its marketing mix. It mainly involves all the available dairy products. Amul uses the milk obtained from their primary source and then turn it into different products after going through various process. The list of products which Amul contains are: Amul Milk, Amul Taaza, Amul slim trim milk etc, Bread spreads (Amul butter, Amul Lite, delicious table margarine, unsalted butter, garlic butter), Amul Cheese, UHT milk, Amul Beverages (Amul kool flavoured milk, Amul masti buttermilk), Amul Ice cream, Paneer, Dahi, Ghee, Amul chocolates, fresh cream, pouch butter milk. Amul has always been known for coming up with new innovative products for different customer segments. From the above products we can see how it has classified its products in different niche segments according to demand or need of consumers. Amul cheese, butter and ice-cream are the products which undoubtedly have a very big market share and contributes a lot in Amul’s yearly revenue. Amul milk dahi and paneer’s consumption has also been increasing in a good way. For every product range there are lot of competitors but no one has been overcome Amul because of its very highly diverse and innovative dairy products. The company is driven by 1000+ employees who work with over 3 million milk producing partners.
Amul Price/Pricing Strategy:
Below is the pricing strategy in Amul marketing strategy:
Amul from starting only when there were no national player as there competitor has a vision to provide the best quality dairy products with a very low cost to consumers of all economical segments.
With the same initiative they have followed the low pricing strategy in their marketing mix. To make this strategy follow they segmented out their own products. Products which covers a huge market segment and are used on the daily basis like milk, ghee, ice-cream, cheese, butter were provided to the consumers at a lower rate in comparison to competitors whereas the price of products which were of niche segment like Amul Spray, Prolite, Milk powder were completion oriented. Mostly Amul follows a strategy which is more incline towards market. In Amul GCMMF sets up the price range of different products which is based on different factors like raw materials, labor cost, distributors margin, farmers profit, Administrative and manufacturers overhead, demand and supply of products, competitors prices, transportation cost, packaging cost, govt. taxes etc. With the rise in Indian economy transportation cost, storage cost has piled up but still Amul provides quality products at a fair and affordable price in comparison to others. The company has an annual revenue of over $5 billion.
Amul Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Amul SWOT Analysis, STP & Competitors
Amul Place & Distribution Strategy:
Following is the distribution strategy in the Amul marketing mix:
One of the key reason of Amul to stand at the top in such a volatile market with overloaded competition is because it has an enormous distributive channel which covers almost all parts of our country. Amul’s whole model works on collecting the raw material in mass and then keep it chunking down into small and small size which finally reaches as a single unit to consumer. There are two distinct channels through which Distribution occurs in Amul. One is the acquisition channel which is in charge of gathering of Milk through dairy co-agents. The other is the distribution channel which is in charge of circulating the concluded item to the end clients. In the acquisition channel Amul works up with farmers then to village co-operative society then it goes to manufacturing units then to company depots, wholesale distributors and finally to retailers. There is also one more channel which consist of carrying and sending specialists who helps in minimizing the administrative and transportation costs.
Hence Amul is able to deliver it products to consumers at an affordable price in comparison to its competitors even after there has been a huge increase in transportation cost.
Amul Promotion & Advertising Strategy:
The promotional and advertising strategy in the Amul marketing strategy is as follows:
Amul is one of the fewer company who is in charge of one of longest and successful campaign with a promotional character – The Amul girl. Amul generally uses the current news scenario in their promotion that too in a little sarcastic manner which connects the user. Most of their promotion is mainly for butter. As Amul has always stand at the top edge so it doesn’t spends more than 1% of its revenue on promotion because it would directly influence the cost of product. With an increase in the number of e-commerce users recently Amul has also shifted on e-commerce platform with an Amul online app through which they could deliver products to e-commerce users. This app also has helped Amul in promoting their brand through different social media sites i.e. through digital marketing. Despite the pandemic, the revenues for milk based products rose significantly for the company with continued marketing efforts. Hence, this completes the Amul marketing mix.
Amul is one of the very old Indian companies, which has made its mark since 1946. Now GCMMF has become the largest exporter of dairy products all across the world. Amul was built up in 1950 with the revolution of dairy agriculturists who were inspired by the independence of India. Main focus of Amul organization was to stop the exploitation occurring with the middleman in both the consumption and selling of milk. In these whole era Amul has built up its brand in such a way that it gives an assurance of high quality product with a reasonable price. Till now with its fantastic teams Amul has restricted any other firm or organization competing with them to go up. With its consistent campaign having a “young girl” as a mascot Amul has established itself as a “Taste of India”.
Amul in terms of butter and ghee dominates the market with almost 80-85% market share. With its effective distribution channel and low pricing strategy Amul has been able to keep itself at top of the market.
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