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Amul, The Mother Brand of India’s Largest Food Products Organization, | Brand | Milk

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Amul, the mother brand of India’s largest food products organization, the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), redefined the way food products were advertised to the people. This caselet highlights the clever use of topical advertising by GCMMF using humor, to generate higher brand recall. The caselet brings out the utility of hoardings as an effective marketing communications tool for marketers. Finally, this caselet discusses the rationale behind GCMMF’s strategy to intr
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  Amul, the mother brand of India’s largest food products organization, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), redefined the way food products wereadvertised to the people. This caselet highlights the clever use of topical advertising byGCMMF using humor, to generate higher brand recall. The caselet brings out the utility of hoardings as an effective marketing communications tool for marketers. Finally, this caseletdiscusses the rationale behind GCMMF’s strategy to introduce the ‘Amul Cheese Boy’ as abrand mascot for its Amul cheese brand, despite the popularity of the ‘Amul Butter Girl’. Issues: » Role of topical advertising» Hoardings as a marketing communications tool» Influence of brand mascots on brand image. Introduction The Gujarat Co-operative Milk Marketing Federation (GCMMF) isIndia’s largest food products organization. It manufactures value-for-money food products that include bread spreads, cheese,mithaee (ethnic sweets), ghee, milk powders, fresh milk, curdproducts, ice creams, chocolate and confectionery, health drinks,and ready-to-serve soups. GCMMF handles around 6.9 millionliters of milk per day with a producer membership base of 2.36million. Amul is the mother brand for all the products of GCMMF.Before Amul entered the picture, companies used conventional methods of advertising wherethe focus was only on the food products and the tone of the pitch was serious. Amul changedthe way food products were communicated to the people in India. It always advertised itsmother brand – Amul, and not its products like butter, pizzas, or cheese. The cooperative hasbeen making extensive use of hoardings for promoting its flagship brand ‘Amul Butter’ since1966, and is all set to enter the Guinness Book of World Records for the longest run promotioncampaign ..... Questions for Discussion: 1. Analyze the reasons for the success of GCMMF’s hoardings, which continue to evokecustomer interest even after 39 years. To what extent do you attribute this success to topicaladvertising?2. GCMMF introduced the ‘Amul Cheese Boy’ in 1999 to create a brand recall for its Amul  Cheese slice as the ‘Amul Girl’ did for its butter. How can GCMMF establish the new mascotand avoid creating confusion in the minds of the consumers? Posted: Thursday, Jun 19, 2008 at 2339 hrs ISTUpdated: Thursday, Jun 19, 2008 at 2339 hrs ISTFont SizePrintFeedback EmailDiscuss Related ArticlesAluminium futures up on Asian cuesBarley futures remain up on speculative buyingGuarseed futures up on short-coveringSilver futures fall from recent record  Mumbai, Jun 18: Enthused by its performance in FY 08, the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is drawing up a fresh game plan for its flagship brand 'Amul Fresh Milk'. Rival Mother Dairy India is not far behind. To sustain itscompetitive edge, Mother Dairy is chalking out an aggressive growth strategy to reachout to a wider target audience. The Rs 18,000-crore packaged milk sector will soonwitness a pitched battle between two lead players Amul and Mother Dairy India, predictindustry analysts.On Amul’s future plans, RS Sodhi, chief general manager, GCMMF said: We areexpanding our processing and packaging capacity to meet growing demands. For starters,we are setting up additional processing facilities in Delhi and Mumbai. Currently, welead the pack with the production of 50 lakh liters per day. In a bid to pump up volumes, Amul is also extending its distribution network to reachnew markets. Our core strategy is to further consolidate our operations in existingmarkets which includes Kolkatta. Also, we are beefing up our marketing and advertisingstrategy to sustain our leadership,” said Sodhi.Incidentally, Amul is selling its packaged milk brands on the Net too. The company hasrecently extended its product portfolio by launching Amul Calci-a fortified milk brand.The company’s long term strategy includes foray into South India. But, we do not haveany immediate plans to enter South Indian markets,” said Sodhi.  Meanwhile, Mother Dairy India is sharpening its marketing focus to promote its milk  brand in major metros across the country. The Rs 18,000-core branded milk sector issteadily growing as consumer opt for hygienic milk products. We plan to go national inthe next few years,” said Paul Thatchil, chief executive officer (Dairy & Foods), Mother Dairy Fruit & Vegetables (P) Ltd.With increasing competition, the packaged milk sector will witness a lot of action thisyear, predict industry analysts.” The Gujarat Cooperative Milk Marketing Federation is beefing up its resources to strengthen its foothold in the liquid fresh milk market of Delhi,a battleground for the two cooperative giants —National Dairy Development Board(NDDB) and GCMMF,” said an analyst based in Mumbai. In India, the per capitaconsumption of milk is increasing day by day, according to industry analysts. Consumers are increasingly opting for packaged milk for health reasons. The sector willregister a healthy growth this fiscal,” added analysts. Out-of-home advertising in India Nothing sums up the circumstances in India quite like the figures.Between January and July 2008, There were eight investments inseven months in OOH companies. Since then, not a single investmentsin an Indian OOH company has been announced. That is, 14 drymonths.Those investments put big bucks in the hands of a few organizedplayers, creating fierce competition for sites, leading to astronomicalbids, which the OOH companies naturally expected their clients to paythrough high ad rates. With the down turn, OOH companies big andsmall have been severely wrong-footed..It wasn’t only bad stuff that happened in 2008, though. Among themost positive things was that OOH was finally accepted as a mainlinemedium. New advertisers turned to it while the existing ones uppedtheir spend. Newer media formats like digital and street furnituregained prominence. There was also a surge in innovations  “The feeling of euphoria that was witnessed in 2007 to mid-2008 ledmany companies in the wrong direction. Most outdoor companies bidsky-high for various tendered properties. The valuations wereunrealistic,” admits Yuvraj Agarwal, executive vice-president, grouprevenue, Laqshya Media. HANGING BY THEIR FINGERNAILS As the slowdown took grip, site occupancy plummeted and ad ratestanked. Ashish Pherwani, senior manager, Media and Entertainment(and OOH was hit at least as hard as – if not harder than – othermedia. Currently, the sector is fighting to raise rates which dropped byas much as 50 per cent.”   Noomi Mehta, chairman and managing directors, selvel One group,adds, “’Lowering prices’ is too gentle a tern are made at times likethese. These are normally done by small operators and fly-by-nighteres who are out to make a quick buck and are shaken off by thefinancial storm.” Even bigger than the problem of getting business is the matter of collections. The tightening of credit facilities by the banks and delayedpayments by clients and OOH specialist agencies have compoundedthe issue. In the absence of a formal credit policy, every company isfacing a liquidity problem and is forced to part with huge discounts andcredit notes each year to recover dues. As Mangesh Borse, director,Symbiosis Advertising , puts it, “We are making profits – but only onpaper, since payments are delayed by as much as six months.” Nabendu Bshattacharyya, President, Ogilvy Action, one of the mostprominent specialist agencies, says that the problem lies elsewhere, “Istrongly believe that 99 Per cent of the clients pay on time if thepaperwork at the agency and media owners is perfect. Clients cansometimes get into a real cash crunch but that happens rarely.”  MATTERS OF AUTHORITY The economic hit has made OOH companies especially carefull aboutthe way they bid for government tenders which , in the past, wereconsidered a quick one short way of gaining size.Everyone has in their mind the experience of Big Street, part of theAnil Dhirubhai Ambani Group (ADAG)which, in August 2008, bid Rs79crore to gain the rights (for 10 years) to Mumbai’s Bandra Skywalk (a1.3-Km long, raised pedestrain walkway). Under the changedcircumstances, Big street decided this May to Walk away from thecontract, forfeiting its earnest money with the Mumbai MetropolitanRegional development Authority (MMRDA). OOH companies havemixed feelings about bidding for government property.Mehta of Selvel One believes that dealing with the authorities ha itspros and cons. The pros include the scope for ‘ managing’ situationsthat occur; since accountability is poor, payments can be delayed.Besides, it helps a company build substantial inventory through asingle storke. It also guarantees stability since government property isunlikely to be touched by even whimsical changes in municipal policieson outdoor advertising.The cons, Mehta believes, are the large earnest money deposits andthe fact that the reserve (or minimum) price for such projects is high.Large tenders are also fiercely contested to the point of almostguaranteed loss, as seen in many cases. NEW MEDIA, NEW ISSUES As if things weren’t bad enough in the established part of the business,they got far worse in airport advertising which has grown only in the

Gatinha

Jul 8, 2018

Kasbes RA

Jul 8, 2018
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