NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Marketing Strategy

Internal Assignment Applicable for September 2020 Examination

Assignment Marks: 30

Instructions:

 

• All Questions carry equal
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as
• All answers to be written individually. Discussion and group work is not
• Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of

 

• Students should write the assignment in their own Copying of assignments from other students is not allowed

 

• Students should follow the following parameter for answering the assignment questions

 

 

 

 

Amul, the market leader in the Indian milk industry, has pioneered several progressive initiatives and stayed current with  consumer  trends  through  continuous  product development. A rise in health issues among the urban population in India and increased interest in fitness had led Amul to plan the launch of camel milk in India by the end of 2015.With camel milk  being hailed  as ―white  gold‖  and touted as the latest  superfood

 

in Australia  and  the  West,  Amul  is  considering  whether  to  launch  the  sale  of  camel milk in India. No company  in  India  has  yet  tapped  into  the  camel  milk  market; therefore, Amul would have a head start in  this unexplored segment. With product approval from the Food Safety and Standards  Association of  India  still  pending, industry  observers wondered whether camel  milk could  be   Amul’s   next   big opportunity  after  the  success  of  its  long-  life  milk   brand,  Taaza.  Should  Amul  launch the sale of camel milk in India?

The Indian milk industry

India had been the largest  dairy-producing  country  in  the  world  since  1998,  expecting  the demand to reach 200 tonnes (t) by 2022. The milk industry was dominated by an unorganized  sector  of  70  million   households   producing   milk.   The   per-capita availability of milk in India was 302 grams per day in 2013.With increasing domestic demand, the per-capita availability of milk has reached 336 grams per day by 2017. Urbanization,  busy  life,  nuclear   family,   Indian   eating   habits   and   westernization   all have together fuelled the need of milk and its products.

The Gujarat Cooperative Milk Marketing Federation (GCMMF) was a food product– marketing organization based out of Gujarat in west India. It was one of the few Indian companies with a pan-Indian  presence.  The  company  marketed  almost  all  of  its products under the flagship brand,  Amul, and had a large product  portfolio  in  key  categories such as dairy and its associated products— butter, ice cream, cheese, cream, yogurt, oils, and fats. The milk category accounted  for the  largest  portion  of  the company’s revenues.

Marketing Mix of Amul

Amul catered to a large segment  of  the  Indian  market  with  a  wide  product  portfolio, and regularly introduced new products to   the  market  over  the  years.  Amul’s  wide  product range included milk, bread spreads, cheese, ultra-high temperature (UHT: a

 

 

 

processing  technique  which  kills  bacteria)  milk,  a  range  of  beverages,  ice  cream, paneer (cottage cheese), yogurt, ghee (clarified butter), milk powders, fresh cream, chocolates, and traditional Indian sweets. Amul Butter is  as  big  as  INR 200  billion  and has a dominant market  share.  In  2014,  Amul  Creme  Rich  was  launched  in  the  ice cream category and was positioned as a premium ice cream to compete with Hindustan Unilever’s new launch, Magnum.  Other  new  launches  included  Amul  cheese  spread  in nine new flavours, and Amul garlic and herbs butter spread.

Amul entered the market with the goal of providing dairy products to  consumers at affordable prices at a time when the Indian dairy  industry  was  highly  unorganized  and lacked  a  national  competitor. Amul had  maintained its strategy  of   providing   its products to consumers at reasonable prices, which kept Amul at the  top  in  this  competitive markets comprising international brands like Nestle and Mondelez.

With  a  focus  on  supplying  all  of  India,  the  Amul  built  an  extensive   distribution network with 56 sales offices, 10,000  dealers,  and  1  million  retailers  across  the country.29 The Company handled the distribution of its products through self-run  retail outlets and third-party  retailers.  To  increase  market  penetration,  the  company strengthened its distribution network  over  the  years  to  extend  its  reach  —  even  into parts of rural India that were not easily accessible. Apart from brick-and-mortar retailer various online retailers (such  as  Vishal  Mega  Mart,  BigBasket,  and  AaramShop)  also sold Amul’s products, adding yet another channel for Amul to supply even more consumers.

Amul is identified by its mascot, the polka-dotted Amul Girl. Amul monitored current events and used the Amul Girl in different ways to  communicate the company’s  interpretations of various subjects.

Major competitors

Mother Dairy: Mother Dairy, a wholly owned subsidiary of the National Dairy Development Board, was established as part of Operation Flood in 1974. It

manufactured a wide array of  products,  including  milk,  ghee,  paneer,  ice  cream,  and other associated products. The company reported a revenue of ₹ 70 billion for 2014/15, which represented an 11 per cent growth over the previous year.

Britannia: With a history of more than 100 years, Britannia was amongst the oldest companies in  India.  Starting  in  the  baked  goods  industry,  Britannia  sold  a  range  of  food products through more than 3.5 million retail outlets all over India, and  in 2014/15, had revenue of over ₹ 60 billion. The  company  produced  a  wide  variety  of dairy  products,  including  milk,  cheese,  and   flavoured   drinks.Profits   from   the company’s dairy business, which comprised less than 5  per  cent  of  total  sales,  plummeted 69.5 per cent from ₹ 350 million in 2013, to ₹ 106.7 million by the fiscal year-end in 2014.

Nestle: One of the biggest companies in the world, Nestle had operations in almost all countries. Nestle Dairy  started   in  India  in  1961,  with  a  plant  in  Moga,  Punjab, collecting 511 kilograms of milk. In 2015, the company  collected  over  1.3  million  kilograms and produced  milk and  milk products  to  supply all of India. Milk and nutrition products, as a category,  was  the  largest  contributor  to  Nestlé’s  revenues  in  India. It accounted for 47.1 per cent of the company’s revenue in 2014.

Consumer Evolution

The Indian milk industry grew by 15 per cent in 2014 to reach ₹ 603 billion.44 Trends showed a switch toward more health-conscious options, largely driven  by  the  growing urban  population.  Consumers  focused  more  on  a  protein-rich  diet,  relying  on  milk as an easy option. The first effect  was  a  move  from  traditional  loose  milk  to  packaged milk. Consumers in urban India switched to  the  new  UHT  and  flavoured  milk options, while the majority of rural customers  moved  to  packaged milk. UHT was safer and could be stored for longer, hence eliminating the need  for  regular  purchase.  While traditional can milk delivered by the local milkman is still common in  Tier  2  and  Tier  3 cities (cities with populations between 20,000 and 100,000), distribution in the big

 

metro cities veered toward  the easily  available  new  UHT  and  other  modern  milk products. Flavoured milk saw the fastest growth in  the  milk category, with  a  value  of  26 per cent in 2014.

Camel Milk

Camel  milk,  a  by-product  of  camel  breeding,  was  consumed  primarily  by  herdsmen and their families,  especially  during  migration.  The  average  daily  yield  of  a  lactating camel was 2.5 to 6 kilograms. The camels were  milked  twice  a day.  Camel milk,  which was dense white in colour, had a sweet and  sharp  taste,  but  could also taste salty. The  water content of camel milk fluctuated between 84 to 90 per cent. Changes in  taste were attributed to the type of fodder and the availability of drinking water.  Factors considered important when rating the  quality  of  camel  milk  included  the  age  of  the animal, the stage of lactation, the quality and quantity of feed, and the amount of water available  during  animal  feeding.  The  taste  of  camel  milk   was  drastically  different   to the taste of full-fat cow’s milk, making it  difficult  for  many  consumers  to  adapt  to  the taste. Camel milk was proven to contain three times the amount of vitamin C found in traditional cow’s milk and one and a half times that in human milk. It  was  also  a  good source of vitamin B1 and calcium. Lower fat content and the presence of anti-bacterial properties also made  camel  milk more beneficial than cow’s milk. In addition, camel milk was more similar to human milk than cow’s  milk. India was  at the risk of becoming the diabetes capital  of  the  world  by  2025,  with  rapid  globalization  and  lack of precautionary measures identified as the leading causes of diabetes in the country. Analysis of camel milk showed that it contained 52 micro units of insulin per millilitre, which was 60 per cent more than the average external insulin  required  by  Type  1  diabetic  patients.  Camel  milk’s natural probiotic properties  made  it  easy  to  digest,  and it  could  be  consumed  by  lactose-intolerant  people.   Preliminary  evidence  had  also shown that camel milk was an effective antioxidant.

 

 

 

There was a drastic drop in the camel population in India from 500,000 in  2003,  to 300,000 in 2013. If  this  trend  continued,  local  sourcing  of camel  milk  would  prove  to  be a factor in competitive advantage; hence, the drop in camel population was seen as a problem that needed urgent attention. Yet  only a few locations in India had the resources to sustain large herds of camels.

As a marketing  and  brand  head  of GCMMF,  you are planning to  launch the  camel milk  in India. Answer the questions below with respect to the content  above  and  context  of India.

 

1. Draw a 9 matrix (Mckinsey GE) cell to  identify  and  explain  the  attractive  segment  which Amul Camel milk should target, drawing inferences from the case

(10 Marks)

 

 

2. Identify a strong brand  positioning  for  Amul’s  camel  milk  that  can  increase its resonance  with the                                                                                                                                  (10 Marks)

 

3. ―Though the  product,  Camel  milk  is  pioneering  in  India  but  milk  as  a  category is  very much a matured product with AMUL being  a  market    Strategies  for  the  camel  milk be it traditional or online, needs to be crafted for a WOW experience.‖

 

1. Design traditional  strategies   to comprehend  the                                                                                                                                            (5 Marks)

 

 

4. Design Marketing  0 strategies   to comprehend  the sentence                                                                                                                                           (5 Marks)

 

  

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