Marketing Strategy Of Amul Butter

Contents

Executive Summary 2
Introduction 3
SWOT analysis for “Amul Butter” 5
PEST Analysis 8
Porter’s 5 Force Model for AMUL Butter 9
Market Research through Survey 12
Findings from the survey analysis 16
Positioning Strategy 18
Recommendations 19
References 19

Executive Summary Introduction
Amul as a brand name is familiar to almost every individual in India, Amul is known for its quality products purity and hygiene. It is a Dairy Cooperative of Gujarat, also known as The Gujarat Cooperative milk marketing federation Ltd established in 1946. Gujarat as a state of India is a leader in organizing dairy cooperatives and its success is not only limited in India but acts as a model for rest of the World.
For over more than the past

Amul is popularly known as “the taste of India”, it is the most trusted brand for dairy products in India. It is the oldest dairy product brand and is existing in the market for more than 6 decades.
• Quality Marketing and Advertising strategies
Amul has been known for its advertisement campaigns. It usually builds on the theme of current happenings in the country and often use humor as the tool to convey the message.
Amul's longest running advertisement campaign has also found a place in the Guinness Book of World Records.
• High Market Coverage
Amul is not only spread in India but also exists in foreign markets like USA, UK, China, Singapore, Bangladesh and other Asian countries. Amul enjoys 85 percent share in butter market.
• Builds upon customer values and traditions
Amul has understood that Indian values and traditions should be the top priority in marketing the product and hence it mainly focusses on adding culture to the product.
• Largest chain of distributers and retailers in India
Amul is known to be the largest FMCG in India. With a network of 2.8 million dairy farmers, 3500 distributers and 5 lakh retailers, it is one of the biggest business house in

Amul has a farther reach compared to its competitors in rural market as it procures milk from 17,025 village milk cooperative societies.

Threats:
• Competition from other players
Although Amul has a significant market share of about 80 %, there is a threat that international brands like Britannia, Nestle and regional brands like Nandini (Karnataka) can take a slice of its share. Also Nutralite table margarine which is the leader of “alternative butter” market could influence traditional butter customers to change their preference.
• People getting more and more health conscious
With the media getting more and more into Lifestyle segment, people are getting health conscious and have started believing that butter is one of the major cause of Diabetes and Obesity. Also butter is considered to have high source of fat, health conscious people may reduce the consumption which could affect its sales.

PEST Analysis

Political:Since the budget range is decontrolled, no political effects are envisaged.

Economic:
• The Increasing per capita income of the whole population is resulting a higher disposable income to the consumer as the purchasing power parity is also rising