AMUL Final
AMUL Final
AMUL Final
08BS0001794
Neha Shrivasta
08BS0001938
Shruti Chhabra
08BS0003193
Shashwatendra Singh
08BS0003097
Table of Contents
ROLE OF AMUL AS A BRAND.......................................................................................3
Why is AMUL a Successful brand?..............................................................................4
BRAND EQUITY...........................................................................................................6
BUILDING A BRAND EQUITY........................................................................................8
1. BRAND LOYALTY..............................................................................................10
2. BRAND AWARENESS.......................................................................................10
3. PERCEIVED QUALITY.......................................................................................12
4. BRAND ASSOCIATIONS....................................................................................13
GROWING AND SUSTAINIG BRAND EQUITY..............................................................13
1. BRAND EXTENSION.........................................................................................13
2. SUBBRANDING................................................................................................14
MEASURING BRAND EQUITY –SOME MODELS & TECHNIQUIES.................................17
Young & Rubicam’s Brand Asset Valuator (BAV)......................................................18
Strategies over time to maximize Brand Equity.......................................................20
References...............................................................................................................26
ROLE OF AMUL AS A BRAND
Brands provide multiple sensory stimuli to enhance customer recognition. For example, a brand
can be visually recognizable from its packaging, logo, shape, etc. It can also be recognizable via
sound, such as hearing the name on a radio advertisement or talking with someone who mentions
the product. Customers who are frequent and enthusiastic purchasers of a particular brand are
likely to become Brand Loyal.
Cultivating brand loyalty among customers is the ultimate reward for successful marketers since
these customers are far less likely to be enticed to switch to
other brands compared to non-loyal customers.
Well-developed and promoted brands like AMUL make
AMUL “The Taste of
product positioning efforts more effective. The result is that
upon exposure to a brand (e.g., hearing it, seeing it) customers India” was born in 1946
conjure up mental images or feelings of the benefits they and christened in
receive from using that brand. The reverse is even better. 1955.Starting with milk
When customers associate benefits with a particular brand, the and milk powder, the
brand may have attained a significant competitive advantage. AMUL brand today covers
AMUL has established a successful brand and has extended a range of dairy products
the brand by adding new products under the same “family” —from chocolates to
brand. Such branding allows AMUL to introduce new cheese and ice-cream
products more easily since the brand is already recognized and, of course, butter-the
within the market.
AMUL can lead to financial advantages through the concept
of Brand Equity in which the brand itself becomes valuable. Such gains can be realized through
the out-right sale of a brand or through licensing arrangements.
If a brand’s value is to be judged by the ease with which it can be recalled, then AMUL’s
marketing campaign wins hands down. AMUL’s utterly butterly campaign won many awards
and accolades and entered Guinness World Records as the longest running campaign.
AMUL was the first brand which used Chubby, sweet looking four year old girl to speak for the
brand unlike conventional ads which used to feature only young sensational looking models to
advertise and pull crowd.
Because of Amul, India became largest milk producing nation from deficit. AMUL has always
cared for its employees, especially farmers; AMUL played active role in protecting farmers from
economic exploitation, which was very much high in Europe. Also, GCMMF decided to set up
AMUL Preferred Outlets across the country, so that the middleman does not make money at the
expense of farmers or customers. This ways they built long term relationship with both
customers and suppliers.
What helped AMUL in building such long term relationship customers- in terms of
Quality; Value for money & Availability.
Quality: No brand survives long if its quality does not equal or exceed what the buyer expects. In
the case of a food product, this means that the brand must always represent the highest hygienic,
bacteriological standards. It must taste good, and it must be good and AMUL has a very low
record of sour milk or milk products due to its effective technology used in logistics.
Value for money: If customer buys an AMUL product, he gets what he pays for, and more. They,
have kept prices fair and done their best to ensure that retailers do not gain at the consumers or
farmers’ expense. AMUL opened its own store-AMUL Preferred Outlet.
Availability: A brand should be available when and where the customer wants it. There is no
benefit achieved in creating a positive brand image, and then being unable to supply the
customer who wants to buy it. In AMUL’s case, over the years they have built what is probably
the nation’s finest distribution network reaching hundreds of cities and towns through a cold
chain that not only ensures that products are available, but they reach the customer at the farthest
end of the country with the same quality as one would find in Ahmedabad or Bangalore.
Some more strategies being discussed in later in the project
BRAND
EQUITY
Brand equity
is a set of
brand assets
and liabilities
linked to a
brand, its
name and
symbol that
add to or subtract from the value provided by a product or service to a firm and/or to that firm’s
customers.
The successful brand whose equity endures is a combination of category, consumers, action and
competition.
As Brand Line states- AMUL’s fundamental equity in the butter segment is unparalleled. Even if
AMUL stops advertising for the next 11 years for its butter, it will still reign. The word of mouth
on AMUL is terrific. The word of taste is terrific. So is the word of emotion. Generations have
enjoyed this butter, and AMUL butter is quite like the friendly old quilt in the house.
Today, there is no doubt that AMUL is a part of the world market. As everywhere else, the
market trend in India is towards the growing importance of fresh products. The coming years
will see increasing volumes being generated from fresh milk, Long Life Milk, curds and the like.
Because their milk procurement and processing capacity is unparalleled in the country and the
region and because they have a brand equity that is unsurpassed in the food business sector.
AMUL must constantly create and update their competencies in these products so as lead, set
and exceed market expectations.
BUILDING A BRAND EQUITY
From the traditional branding point of view, the brand building process is best represented by the Brand
Equity model (Brandt and Johnson, 1997) as following Figure:
There are also several other models and descriptions of the product or service branding process.
While they may differ in approach, a common thread of understanding runs through all of them.
We have therefore condensed them into something called the brand-building matrix.
Applying the major steps in the branding process (as explained by Brymer), we come up with the
following:
If we observe in context of AMUL, all the above three points got involved in the branding
EXPERIENCE QUALITY
• Customer perceptions • Tastes & levels of service
• Customer service • Ingredients & raw materials used
• Actions of sales & delivery people etc.
etc. • Product/service durability
• Brand evolution over the years, • Guarantees and warrantees
changes to any aspect of the brand • Cutting edge technology
must reflect the changing market
demands
IDENTITY COMMUNICATION
• Strong & visible • PR & Advertising strategies
• Memorable names • Quality letterheads & writing
• Logos & colors materials.
• Sponsorships • Internet presence
• Packaging etc. • News Releases, sponsored press
• Shelf position & display articles etc.
• Vehicle displays and branding • Other verbal and non-verbal means
• Corporate uniforms used in communicating
process of AMUL.
The daCunha Communications is the Agency that has given a face to brand AMUL. The
daCunha Communications has been handling the campaign since its promoter Sylvester daCunha
bagged the account in 1966. daCunha created the moppet and also inked the tag line ‘Utterly
Butterly Delicious AMUL’ .In one of its first advertisements in late 1960s, the girl wearing a
white apron was called ‘Taste Tube baby’ , referring to the developments in medical science.
Since then, the AMUL girl has never looked back. The campaign has been able to reach this
stage solely because of the relationship that the client and agency enjoy.
According to David A.Aaker, there are five categories of Brand Loyalty
assets that underlie brand equity that are described as
Name Awareness
following:
Perceived Quality
Brand Association
1. BRAND LOYALTY
AMUL was founded on a sound business model: providing quality products to consumers at an
affordable price. Their business model is often described as "value for money" and it has been
adopted by a number of companies. While imitation may be flattery, most other organizations
fail to understand that "value for money" is not just about low prices - it means offering the best
quality products at the most reasonable price. As a cooperative, their faith requires that they
safeguard the interest of two major stakeholders - the farmers - and the consumers whose loyalty
is essential to their continued success.
Hence, one fundamental rule they followed is: Stick to the core benefits of the brand.
‘Commonality of benefit is a must.’ The AMUL brand name is an integral part of their success
since it communicates the core values of AMUL.
2. BRAND AWARENESS
Brand recognition is the basic first step in the communication task. It usually is wasteful to
communicate brand attributes until a name is establishes with which to associate the attributes.
b. Familiarity-Liking
• Recognition provides the brand with a sense of familiarity- and people like the
familiar. This makes it a dominant brand, a brand that is usually at the “top of the
mind” especially in case of Butter.
a. Signal of Substance/Commitment
Name awareness can be a signal of presence, commitment, and substance, attributes which
can be very important for consumers. The logic is that if a name is recognized, there must be
a reason-such as:
• AMUL has been in the business for a long time. AMUL stands for richness of milk
and the Utterly Butterly AMUL values associated with AMUL Butter for over half a
century gave AMUL Cheese instant place on the shelves.
• The brand ‘AMUL’ is successful-used for different products. As mentioned earlier
the AMUL brand name is an integral part of their success since it communicates the
core values of AMUL.
1. PERCEIVED QUALITY
Perceived quality can be defined as the customer’s perception if the overall quality or superiority
of a product or service
with respect to its
intended purpose,
relative to
alternatives.
Differentiate/Position: AMUL is a household name in Indian homes, when one thinks of
AMUL one reminds of AMUL butter with its polka dotted butter girl, famous for its longest
running advertisement campaign “utterly butterly delicious AMUL” . Now the positioning of
AMUL is “Taste of India” which is still consistent with previous campaign. Most of AMUL’s
communication is based on latest happenings in the country. That is why its ads are termed
different from what is that of its nearest rival, Mother dairy. Most of Mother dairy ads are
directly targeted to children where as AMUL’s ad are on current affairs, in which adults are also
involved.
Price: Another strategy of AMUL’s has been to position the ice-cream in the lower price range.
The ice-cream’s value-for-money proposition was an important factor in its success. In their
effort to ensure that all sections of their society are able to
afford AMUL Butter, they have given special emphasis to
low unit value packs, in their marketing effort.
2. BRAND ASSOCIATIONS
Brand Association of AMUL with dairy products is very
strong making new entrants difficult to break the mould
and get into consumers mind and then the refrigerator.
AMUL has become a generic brand. Other brands may be
attempting to break the clutter which is very difficult.
AMUL had virtually no competition in the cheese
market for over a decade. And when Britannia entered this market AMUL’s share of the market
fell almost by half says market analysts. The associations such as Round eyed, chubby cheeked
AMUL moppet, AMUL Logo, Quality, Taste, are linked to the AMUL’s name via products.
AMUL’s association with milk has also given it an edge in the ice-cream market. AMUL ice-
cream – Real milk, Real ice-cream – rapidly climbed to number two position in just a short span
of three years.
1. BRAND EXTENSION
As the movement spread in the district, it was found that the Bombay Milk Scheme could not
absorb the extra milk collected by the Kaira Union in winter, AMUL set up a plant to process
milk into products like butter and milk powder. It is taking steps both to deepen their market
penetration as well as to accelerate its growth.
‘Sucessful brand extensions are those which focus on a trend, build upon and stay consistent
with the overall equity of the core brand,’ says Professor Das Narayandas, Harvard Business
school. Figure: Growing and Sustaining Brand
Equity
AMUL has high brand equity and umbrella branding of AMUL has helped the company in
bigger sense. AMULs’s brand name has helped its other brands also like Mitahi made, AMUL
Ice creams, chocolates, AMUL Kool etc. , though AMUL is still struggling to make its mark
with chocolates. So umbrella Brand, AMUL is used to build and offer value to customers in
bigger sense. In literal sense, a company has high brand equity if it has multi dimensions. AMUL
has explored various available opportunities to reach to mass customers. It has opened a
community on public forums like orkut, sponsored events like AMUL voice of India etc.
Category Extension: AMUL mostly uses the brand name AMUL to enter a different product
category altogether or a name close to AMUL. For example: When AMUL forayed into Health
drinks it named its product as NutrAMUL.
b. Market Development: The strategic thrust placed on opening AMUL Parlors since 2002 has
now started yielding the desired results. AMUL Parlors will enable them to
1. SUBBRANDING
The network of AMUL follows an umbrella branding strategy. AMUL is the common brand
for most product categories produced by various unions: liquid milk, milk powders, butter,
ghee, cheese, cocoa products, sweets, ice-cream and condensed milk.
• AMUL's sub-brands include variants such as AMULspray, AMULspree, AMULya
and NutrAMUL.
• The edible oil products are grouped around Dhara and Lokdhara, and mineral water
is sold under the Jal Dhara brand ( Jaldhara failed & Dhara is now under Mother
Dairy)
• Fruit drinks bear the Safal name. ( Safal is now under Mother Dairy)
• By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union
conflicts but also created an opportunity for the union members to cooperate in
developing products.
1. BRAND HIERARCHY
MEASURING
BRAND EQUITY –SOME MODELS &
TECHNIQUIES
Two understand how to design & implement a brand equity measurement &
management system; first we need to take a look at the brand value chain as
shown in the picture below.
Brand Value Chain is a means by which marketers can trace the value
creation process for their brands to better understand the financial impact of
marketing expenditure & investments; it offers a holistic integrated approach to
understand how brands create value
BVC works on several premises. Primarily, it assumes that value of the brand
resides with the customers. In BVC, value creation happens at different stages
explained below:
Stages Theoretically AMUL
Stage1 Firms investment in Annual expenditure in
Marketing program marketing ( advertising,
targeting actual or billboards, etc.), Parlors
potential customer
Stage 2 Associated marketing From “The taste of India”
activity that effects to “Where is the doodh,
customers mind set-what Dude?”
customer know & feel
about the brand “Indian-ness” attached to
AMUL
Stage 3 Mindset of the customer, Sales revenue of AMUL
in turn produces brand
performance in the place –
how much customers pay ,
what price they pay
Stage 4 Market capitalization, Returns to the farmers
Stock price who invested in AMUL.
The ability to create value at different stages is depends on its qualitative aspects
which is measured by the multipliers as shown in the figure above.
According to BVC, source of brand equity arise from customer mindset. Therefore,
measuring sources requires understanding what customers know, think, and feel
about the brand.
This basically focuses on to measure various aspects of Brand awareness & Brand
Image that can lead to differential customer responses making up brand equity.
Different conventional market research techniques can be used get consumer
responses.
For instance: Free Association where customers are asked several questions to find
their association with the brand.
In context of AMUL
Stages Questions
Stage 1 What does AMUL name mean to you? Or Tell me what comes to your
mind when you think of AMUL butter/or any other product?
Stage 2 What do you like best about AMUL?
What do you dislike?
What do you find unique about AMUL? How does it different from other
brands?
Stage3 Who uses AMUL?
When & Where you use the AMUL?
In the case of AMUL, the questions like above will give mixed responses as AMUL
uses umbrella branding. The response of a customer who uses AMUL Butter Could
be different from the person who uses AMUL Chocolates.
There are many techniques organization uses to measure brand equity. The one
which is globally renowned is Young & Rubicam’s Brand Asset Valuator (BAV).
BRAND STREGTH
Differentiation: the degree to which a brand is seen different shows
from others. Future Financial
Energy: the brands ability to meet future customers needs Performance
Relevance: measures how important the brand is to the
customers
BRAND STATURE
Esteem: measures how well the brand is liked shows
Knowledge: measure how intimate & familiar consumers are Current
with the brand. Performance
Once the measurements are collected they are put in the Power Grid for analysis as
shown below
Growing/Curiosity Leadership/Irresistibility
– iPod – Coke
– Xbox – Microsoft
– Crate & Barrel – Sony
–
New/Indifference Eroding/Fatigue
– Blackberry – Honeywell
– CompuServ – 7-Eleven
High
BRAND STRENGTH
Low
Low
High
BRAND STATURE
Strategies over time to maximize
Brand Equity
A journey of AMUL which stated with the rift between Polson & Tribhuvandas Patel
and later had battles with Nestle over condensed milk & with Glaxo over baby food
made AMUL enough experienced in the dairy industry.
THE NAME: Picture this, a country that just got independent from the clutches of
Britain & striving to find its own ground. In such days selection of the word “AMUL”
itself had more ‘swadeshi’ element which connects every Indian.
So selection of a brand name itself is a strategy which has significant impact in long
run.
AMUL is not only able to provide association with people but also exhibit its core
value –Quality, as Amoolya means "priceless" in Sanskrit, from which the name is taken.
Picture this,
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the
balcony drying clothes. From her second floor flat she can see her neighbours on the road. There are
other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity
Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no
signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up
overnight.
That was the power AMUL hoardings, of drawing people out of their homes & eventually it
became the favorite topic of discussion-& that gives AWARENESS, when people start talking
about the brand, company doesn’t need to spend much.
The
ads
are
very
creative, witty, humorous, whacky and sometimes controversial but invariably elicit a laugh,
chuckle or at least a smile from almost everyone who understands the context. The ads relate
butter to the topic of the ad in a very amazing & intriguing manner…primarily by playing with
words. The biggest reason for its success was its connection with the common man.
Some say the seeds of origin of AMUL lie in the conflict with Polson. One can see the same
even in the creation of AMUL girl created by Sylvester daCunha back in 1966 has some
resemblance with the Polson’s one.
The hording were not only able to create awareness but also made strong
association with the masses.
Since the tagline is introduced with AMUL girl, the cuteness in the tagline
enhances the likeness of AMUL girl.
AMUL has strong advantage of being considered as a hardcore Indian brand & well
respected at the same time. Certain Strategies are made to enhance this image; For
instance
AMUL Surbhai: Surabhi, once a widely known prime time television program,
which dealt with different cultural aspect of India got another sponsor
equally associated with India i.e. AMUL.
Through this, AMUL was reach to millions of people along its association with
India.
PUBLICITY
The contest to find Utterly Butterly Amul Girl & Amul Cheese Boy through AMUL
Surabhi created wave. Marketing activities like this increased the awareness among
people which contributes to increase the brand equity.
Manathan (1976) movie produced by the milkmen associated with AMUL, showed
the story of AMUL, in short, also spread the awareness.
hing of attractions in India
with the times, humor and understanding the need of the hour of the people. Amul boardings are
FAILURES
With all this success AMUL did face some failures:
TV commercials with punchlines like ‘Hey Dude Where’s The Dudh?’ and ‘Chill Your Dill’.
The federation is trying to woo generation-Z that finds colas and fruit drinks trendier. AMUL’s
new commercials aim at changing the perception of audiences towards milk and milk products.
Having a strong customer base AMUL is trying to position milk and milk products in different
light-fit and healthy consumers.
AMUL in Globe
AMUL products are now available in shelves across several countries including the
US, China Australia, West Asian countries and those in Africa. However, any well
known & well crafted marketing strategy has not been designed. Having won
several awards at International level, AMUL has already got name in the market &
currently covering the 0.4% of the share of the organized dairy market in the world.
o last too long or had to get a whole new look in order to stay in the market. It’s a mixture of keepi
Amul plans aggressive online play
One company that is Amul which looks set to unleash a revolution in the online world. Here
there is no policy glitch, no threat of a Wal-Mart and no small
kirana stores to reckon with.
Sample this: Gujarat Cooperative Milk Marketing Federation is studying the feasibility of
starting an online store on Second Life, the virtual world owned by Linden Labs. GCMMF MD
BM Vyas disclosed they are in talks with Trimensions, a metaverse development firm (creator of
3-D online environments) based in Gurgaon to find out whether it can take its product range
online on Second Life, where it has already built an ice cream parlour.
The parlour, which took about three months to create will be launched soon and will allow users
to walk into, browse and access information about Amul products and processes. If the company
decides to go ahead with selling products online, the initiative will put GCMMF at the forefront
of the V-Commerce (virtual commerce) drive in India
Suggestive alternatives
1. CO- Branding
They could have used the Co-branding with some traditional chain of resorts like Chauki dhani,
Apno
Amul can get a image positioning will get a boost of culture as well as National Brand. They
could have done Sponsoring of film related to social issues like Taare Zameen per & others
which will again give a positive image building because Amul is a National Brand which is
considered as a social responsible Brand. They could have branded themselves as Brand of
Nation with association with Khaddi & could started efforts to Minimise the use of Plastics as
much as possible etc.
Doing this project we have also contacted major retailers and come to know that Amul is giving
them a lower profit margin of around 9 % as compared to than that of Mother Dairy which offers
11% to retaliers. Amul should try to narrow down this gap because it will effect in distribution of
Amul product in long run. Higher margines can be given by implementing ERP solutions as well
waste reducing programs in the manufacturing unit which enable AUL to provide better margins
to retailers and will lead to more parlors & distributors that means more awareness
4. Celebrating B'day of AMUL girl making this an annual event could be an interesting tactic.