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AMUL - REPOSITIONING TO ESTABLISH 'YOUTH CONNECT'

Last updated on Sept. 18, 2021, 6:14 p.m. by tushar

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The case is about India-based milk and milk products brand Amul's repositioning strategy. It discusses how a traditional Indian brand repositioned itself to meet changing consumer preferences.

ABSTRACT
The case is about India-based milk and milk products brand Amul's repositioning strategy. It discusses how a traditional Indian brand repositioned itself to meet changing consumer preferences. The case highlights the initiatives taken by Amul to reposition its brand so that it would appeal to the youth segment.

ISSUES

  • Understand the repositioning strategy of the Amul brand in India.
  • Evaluate the market situation in the Indian dairy market.

INTRODUCTION 
In March 2011, India's leading milk and milk products brand, Amul , launched a flavored yoghurt called Flaavyo. It was one of the several products that Amul had launched in a bid to connect with the youth in the country. Within a span of one year, Amul had introduced several new varieties of ice-cream and pro-biotic buttermilk targeted at this segment.
     It had also associated itself with Sauber, an F1 team from Switzerland, at the maiden Indian Grand Prix event . According to R S Sodhi (Sodhi),, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), "The dull and conservative image associated with Amul products has to be rubbed off the minds of the youth. As a strategy, we have decided to communicate with the new generation more aggressively than ever before." 
Amul also went in for repackaging and rebranding several of its products in order to establish and maintain a connection with the target segment.

QUESTIONS:

  1. Discuss the reasons for the repositioning of the Amul brand in Indian market.
  2. Discuss how a traditional brand like Amul can be repositioned.
  3. In what ways can Amul benefit from this move? Give reasons.


AMUL - ORIGIN 
Amul, is an Indian dairy cooperative society, based at Anand in the Indian state of Gujarat. Formed in 1946, it is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 36 lakh (3.6 million) milk producers in Gujarat. Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products.

DISCUSSION OF ISSUES

Discuss the reasons for the repositioning of the Amul brand in Indian market.
As of 2010-11, Amul focused on their main supply chain and products like Milk, Butter, Cheese of different types, Ghee, etc. Its growth has been remarkable in terms of growth but India’s Major population is Youth and the above product chain made AMUL a tradition company in itself as it wasn't attracted by Youths as there were no Youth oriented specific products.
For Growth of Company in terms of customers and to make more interest of Youth towards it’s product range, It had to change its Image from old Traditional one to new one which had a new perspective and a different Image people’s mind. 
Lifestyle of youth in India is changing with time, their need and interest in new products with innovation has increased. 
Market segment has all types of people to be targeted for the Company's services and products. In AMUL’s its target market was pretty well but was very less oriented towards the Youth perspective although it has its Strong Image for all the products and had monopoly in that product segment.
For AMUL to be a brand which attracts the Youth of nation needed something new in their in product chain along with the existing ones. This is where the Idea of Repositioning of AMUL brand took place so as to make the Brand image more strong and firm in the minds of Youth.

Discuss how a traditional brand like Amul can be repositioned.
To reposition the brand, AMUL took major steps to make its image more Strong and attractive to young india. 

  • Launch of New Products : 

AMUL made a major move and investment in Launching many new products which targeted directly the Young India.
Products like -

  • Seltzer - Recently launched with a perfectly made advertisement which has direct attention of Young age and medium age group.
  • Beverage Range : Amul brings to you this age old secret recipe in “Amul Memory Milk”.This helps in maintaining their performance. It also reduces anxiety and stress and improves mental acuity in adults.



 

  • Products with Special Attraction :
    Chocolates with all different varieties taking in consideration all new taste and great experience.



     
  • Advertisements with Indian Olympic, Sports Athletes
    Making a great move to target the young group age by advertising the product range with sports athletes.
     
  • Investment in Different National/International events which directly focused the Youth.
    Sponsoring a show with all new concepts of Cooking and getting the attraction of young foodies out there.AMUL powered a show Master Chef with 2 Seasons Back-to-back.

    AMUL also came out with Tv Show Voice of India which got a huge fame and indeed a large Youth attraction at the end making AMUL again come in limelight for powering such shows.

     
  • Sponsorship of different teams/Competitions/Projects/Events

    Amul was the prime sponsor of the New Zealand cricket team in the ICC Champions Trophy starting from June 1, 2017 in England. The Blackcaps (who are in the same group with Australia, England and Bangladesh in the Champion’s Trophy) would sport a new jersey with the Amul logo during the tournament.
    Amul sponsored because milk is and has been the world’s original energy drink and is a favorite among sporting personalities for generations and they believe in encouraging every individual to believe in the power of milk and its ability to refresh and energize each one of us.



    India's dairy major, Amul, sponsored the Afghanistan cricket team for the 2019 World Cup, which began in England. The official announcement was made in New Delhi by the Afghanistan Cricket Board (ACB) CEO.

     
  • Being Consistent with by connecting all the latest happenings via beautiful and attractive AMUL Posters with humor and happiness at the same time.




     
  • Motivating School, College level students by providing them scholarships based on their performance.

    Class 10th Trophy for Scholars


    Class 12 Trophy for Scholars

     
  • By working on pack designs, product positioning, promotions to woo youth

    New Products with attractive Packing and design which have taken a special attention of youth over other similar products




     
  • Connecting with Youth on Social Media so as to get their attention 
    Amul the brand is consumed by all and loved by all, and the same holds true for its marketing communication effort. The love for Amul’s advertisements, in particular, and the brand, in general is such that people from all age groups connect emotionally with the brand (see the first image), though the fan page is skewed towards male audience (see the second image), and not everyone talks positively about the brand.
    Amul got a good deal of negativity going on social media, but the good thing is its audience is vocal and not reticent. They express their feeling, which gives the brand an opportunity to fix things that are wrong with it (see the third image).
     

Demographic Analysis of AMUL’s Customers

Source: Simplify360 – A Social Media Analytics Tool

Source: Simplify360 – A Social Media Analytics Tool

Source: Simplify360 – A Social Media Analytics Tool

 

In what ways can Amul benefit from this move? Give reasons.

  • The Youth usually spends more than other segments of citizens. Thus tapping into the youth market is a great opportunity for AMUL to boost its revenue. As the Youth of India is an age group where the spend in daily life is more than any other age group, targeting the Youth will make revenue even more in terms of sales, product loyalty and product life cycle. This will increase the customer retainment and hence higher profit per customer can be booked. This will increase the value of each customer and hence a high amount of money can be spent on marketing. This will again help in gaining new customers and thereby increase the turnover and is overall good for the company. 
  • Besides, the old-school image of AMUL would be improved especially in the minds of the young people. The image would be much stronger in the view that youth will have interest in Amul’s new Product range and the connect will get stronger. This will help gain new customers and will in turn increase the customer base and hence the revenue.

Conclusion : 
Thus AMUL having penetrated the youth market will help in overall development of the company as a whole and tapping the youth market will also get new insights into this new segment. It will help for future growth and will help in new product development as well. It is particularly beneficial for Amul in the long run. 

...

by tushar
KJ Somaiya College of Engineering Mumbai

Software Engineer | SWE Intern'21 @ConnectWise | Ex- Smollan | KJSCE CSE'22
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