The turnaround story of the ice cream industry started with Amul entering the market with its unique and innovative marketing strategies. It gave the entire industry a unique dimension. The success of Amul can be attributed to its distinctive planning of marketing mix and providing satisfaction to consumer needs. The analysis of this case will highlight the key marketing strategies adopted by Amul to become a market leader. 4 P’s of Marketing Mix: Amul brought in many changes in its 4 P’s of marketing mix, which helped it carve a niche for itself in the market.
ANALYSIS OF THE VARIOUS STRATEGIES USED BY AMUL TO CAPTURE THE MARKET AND TO BECOME THE MARKET LEADER Through this analysis, we will be identifying the various marketing strategies adopted by Amul in the attempt to garner the market share. We have related their various strategies with the theories in order to arrive at the conclusion of how these furthered their growth prospects. 1.Ansoff Product Market Expansion Matrix/ Grid
Current Products New Products
Current Markets Market Penetration Strategy
More intensive distribution
Try to capture unexplored markets – growing Diabetic patients market Tie–ups with state marketing federations for expanding customer base. Identify places/ cities were consumption levels are high to make more sales. Take away market for ice creams is restricted to only 40% enhance it through massive marketing. More expenditure on advertisement to bring home the idea to consumers that ice creams are no more a luxury product. Product Development Strategy Enter into new product lines like bakery items, desserts, chips and other snack items.
New MarketsMarket Development Strategy
Capturing the untapped demand in the:-
Foreign marketDiversification Strategy
Start supplying refrigerators of their own
Enter into areas like restaurant, café businesses.
Porter’s Generic Strategy
a)Overall Cost Leadership - The ice cream was always considered to be a high end product sold at premium prices. All the players existing before Amul targeted premium segments of the market. The high prices are attributable to the high cost of production- refrigeration facilities, distribution channels etc. Amul because of its less expensive distribution channel and low raw material costs was able to price their products very low. Thus it garnered a lot of market share by adopting Overall cost leadership strategy.
b)Differentiation – Amul was the first player which came up with different product flavors varied in terms of health usage, product ingredients (vitamin enriched ice creams, use of milk fat, power form kulfi) etc. It also differentiated in terms of its distribution channels, using associated advertising – feeling of patriotism with usage of Indian made product.
c)Focus – Ice cream were always targeted at the youth and as an impulse purchase. Amul brought a change in this perception and positioned ice creams as a family product thus increasing the volume of consumption. Thus by catering to the untapped market they emerged as the market leader. Because of its low prices, it also became a part of daily food habit- habitual buying behavior.
2.Nine Price – Quality Strategies
a)Super Value Strategy – Amul can be placed under the strategy-3 of the Nine-Price Quality strategies which differentiates it from its competitors in terms of high quality and low price – i.e. Super Value Strategy.
Price High Medium Low 1.Premium Strategy
•Kwality Walls3.Super-Value Strategy