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| Amul Products |
From last 7 decades Amul has been in the
homes of almost all the Indians. Amul, a small union of milkmen from a village
called Kaira in Gujarat started to sell milk in Gujarat and Bombay Government now
known as Mumbai, is one of the leading milk providers in India. Amul has grown
into a very big industry with time that, now they not only supply milk but also
provides a variety of products in the market such as butter, cheese, paneer,
curd, bread spread, Ghee, ice cream, milk beverages, chocolates, fresh cream
and many types of dairy products. It is not only their products but also the
trust that they have built with the people is a huge factor of their success. Today
I will be unfolding the success path of Amul that helped it become the most
trusted brand in India.
Amul was founded in 1946 by Tribhuvandas
Patel under the guidance of Sardar Vallabhbhai Patel which was later taken over
by Dr. Verghese Kurien in 1949 who changed the whole perspective of Amul in the
market. He is also regarded as the ‘Milk Man of India’. Acronym of AMUL is (
Anand Milk Union Limited) Anand is the place in Kaira District where all this
started. Amul’s slogan “ Amul – The Taste of India” is a not only a slogan but
is a promise to provide the best quality of milk and hygiene to all the people
in this country which is still true and tested. All this revolution started
when farmers and milkmen were brutally exploited by the middleman and it was
only being a profitable business for these middlemen and the milkmen were
hardly getting paid. At this time people decided to start a revolution against
these middlemen. With the help of Sardar Vallabhbhai Patel a new union of
milkmen was established at Anand village in Kaira district of Gujarat which is
now proudly know as Amul. It is not only the product that is selling in the
market it is also the trust that Amul has created in the hearts of people in
India. Along with the product Amul has always worked on promoting its
products by advertising and running
various marketing campaigns. The success of these advertises and jargons made
Amul a precious and demanded brand in the market.
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| DR. Verghese Kurien |
How did Amul Become A Brand ?
Initially the milkmen in Gujarat were
dominated by the Polson Dairy which had the agreement with Bombay government to
supply milk. But the people at Polson dairy used middlemen to deal with these
people to buy milk from them. The company made huge profits but the middlemen
started to exploit the milkmen by giving them very less money for their milk. This
lead all the farmers and middle men to Sardar Vallabhbhai Patel who was an
activist working for the betterment of farmers back then. Under the guidance of
Vallabhbhai Patel, Tribhuvandas Patel started a union of milkmen from Anand
district to supply milk. Amul was formed by him and was later taken over by Dr.
Verghese Kurien which designed the whole brand of Amul. Amul is taken from a
Sanskrit word ‘Amulya’ which means
precious.
Today Amul is managed by Gujarat
Co-operative Milk Marketing federation Ltd.(GCMMF). Amul is jointly owned and
run by almost 36 lac farmers and milkmen who come from around 18000 different
villages and 17 unions to come together and supply the best quality of Milk.
Amul has promised to buy all the milk brought into the collection centers by
the milkmen at the highest possible rates. 18 million liters of milk is processed every single day in their
plant. Amul also launched new range of products in the market with time to encounter
other MNC’s in India. Almost 80% of the amount earned by the company is returned
back to the farmers and milkmen to encourage them for producing the best
quality of milk every time.
Amul is also the winner of International
Dairy federation Marketing Award in 2007. Amul not only is selling the best
quality of the products but is also has an excellent marketing strategy with ad
campaigns and jargons. In 2017 Amul made
an annual turnover of Rs.23000 crore with a production rate of 28 million
liters a day. It is estimated that by 2020 Amul will be supplying 38 million liters of milk each day which will be
having a turnover of Rs.50000 crore. There is also a success story based on
Amul’s success known as Manthan.
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| Amul logo |
Amul’s Growth Strategy
Amul is one of the leading Dairy product
manufacturer in the World and is operating and selling in almost 40 countries across the globe. An innovative
marketing approach and quality control measure has helped Amul to be on the top
from last 3 decades. Amul is using some great strategies to dominate and grow
in market such as :
1. Mass production
From the beginning of
Amul, Dr. Verghese Kurien has focused on mass production of the milk. He has a
doctorate in dairy farming from USA and wanted to help Indian milk producing
farmers to learn how they can produce more high quality milk by feeding organic
things to their cattle and how hygiene can be maintained while doing all these
procedures. He Encouraged farmers to sell their daily collected milk to Amul so
that the farmers can be paid the highest rate for milk per liter. With this
small initiative in the Anand District within no time the collection of milk started
to increase and now more than 3.6 million farmers are associated with Amul to
provide with best quality of milk. Amul utilized this milk to produce variety
of milk products and grow their market dominance not only in India, but also around the world.
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| Amul production Line |
2.
Powerful Supply Chain
The core reason why Amul
was formed is due to the lack of supply chain management. In 1946 Polson Dairy was
dominating the market and was purchasing milk from local farmers. But the
farmers were not paid the right price for their milk as most of the money was
taken away by the middlemen and farmers were hardly earning any money. That is
when this union of Amul was formed which eliminated the work of middlemen. Amul
decided to purchase the milk direct from the farmers by providing them the high
rates for milk which motivated the farmers to produce good quality milk at good
rates. Amul was established for the welfare of these milkmen who were exploited
by the middle person in the supply chain.
3.
Low-Cost Marketing
One of the most powerful
strategies of Amul till date is its marketing. Amul uses low cost marketing tactics in which
it applies umbrella Marketing strategy. Umbrella marketing is uses the idea of
selling all the products under one brands name like, Amul Milk, Amul butter,
Amul chocolates etc. This helps in reducing the marketing cost of their
products. According to Amul’s current managing director (MD) Mr. R. S Sodhi the total marketing expenditure
of Amul is just 0.8% which is very less compared to their top competitors in
the market. This strategy is beneficial to the farmers and customers as farmers
are paid high rates for their milk and customers are provided with the best
quality of products at affordable prices.
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| Amul Marketing Moto |
4.
Advertizes and Jargons
Amul’s one of the most successful running campaigns
till date is the Amul butter which is also registered in the Gunnies Book of
World Record which is been running from
last 36 years. The slogan “Utterly butterly delicious Amul” made a huge breakthrough in the industry
which is still loved by all the people in the country. Amul has been creatively
making banners and jargons every year for its variety of products for each and
every occasion. Amul also keeps in mind the part of human emotion which is the
key for building trust with their customers. Amul creates various slogans for
different people according to their sentimental requirements. For instance Amul
Milk advertizes for general people is “ the taste of India” but for mothers it
is “ the proper nourishment for your child” this creates a message of trust for
all the mothers across the globe that we have the top quality milk for your
children.
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| Amul Advertising |
Why Amul is an effective
brand ?
Amul is known for
starting the white revolution in India. It is not only the largest producer of
milk products in India but also in the entire Asia. It is a movement that freed
the farmers from the exploitations of middlemen. The way Amul started its
journey and the level of response it has achieved in last 74 years is
outstanding. Amul is the biggest supplier of milk and dairy products in India
and when it reached this mark, Amul decided to grow and establish itself as a
brand by spreading out in different countries across the globe. Today Amul is
producing 38 Million liters of milk every day. It is not only focused on
selling the milk but is also enriching the lives of its supplier and farmers
who are willing to provide a good quality of milk and is helping many people to
start a way of earning. Till date Amul has been the favorite of millions of
people in India and brand that is made in the home country since the independence
has developed a trust among the people that makes it the most effective brand.
What we can learn from Amul
We all can surely be successful with team work, brand building and continuity. This is the major message that Amul gives us
nice article
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