Amul - Evolution of Marketing Strategy

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Case Details:

Case Code : MKTA011
Case Length : 26 Pages
Period : 2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Gujarat Co-operative Milk Marketing Federation (GCMMF)
Industry : Food
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Organizational Structure

The cooperative model pioneered by Amul - a union of primary village dairy cooperatives- came to be known as the "Anand pattern" cooperative system. It was a three-tier structure that comprised village societies, district level dairy unions and a state level federation.

Each tier was economically independent of the others and comprised representatives elected from the tier below it. The organizations at each level were governed by their own bylaws, and were managed by democratically elected boards...

Product Development

Amul's product development was driven both by the spirit of the cooperative system and profitability. Being a cattle farmers' cooperative, Amul was committed to buying all the milk offered by the farmer. The perishable nature of milk made it imperative for Amul to process the surplus milk and enter new product categories as production increased...

Launched in 1955, butter was one of the first milk products offered by Amul. It was also the first time Amul successfully challenged the hegemony of an established brand. Amul's earliest competitor, Polson had been the monopoly milk supplier to the Bombay Milk Scheme. Amul displaced Polson to emerge as the undisputed leader in the butter market...

GCMMF launched processed cheese in 1959 followed by cheese powder in the early 1970s. In the 1980s the popularity of cheese increased...

Ghee, Skimmed milk powder and Baby food
Amul launched ghee (clarified butter) and skimmed milk powder in 1955. Amul Ghee was an instant success...

Milk and UHT Milk
Amul was the market leader in the Gujarat whole milk market with a 90% market share in 2002. Apart from supplying milk to parts of Maharashtra and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy in Delhi...

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