amul case study questions and answers

Amul Case Study - History & Present of The Taste of India

Varad Kitey

Amul is an Indian dairy cooperative society based out of Anand that lies in Gujarat. The word 'Amul' is derived from the Sanskrit word ‘Amulya’ which means priceless or precious. This case study on Amul discusses the history of Amul, its business model, revenue, and the key factors behind Amul's success.

Founded in 1946, Amul is managed by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF ), a cooperative body that comprises 3.6 million milk producers of Gujarat today.

Amul started India's White Revolution that made India the world's biggest maker of milk and milk products . Amul was founded by Tribhuvandas Patel under the direction of Sardar Vallabhbhai Patel , the first deputy prime minister of India .

The Kaira District Milk Union Limited was then conceived in 1946. Tribhuvandas headed the organization until his death in the 70s. He spoke to Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to assist in the mission of the White Revolution. Dr. Verghese Kurien is widely considered the founder of Amul.

Amul - Latest News Amul - About and Company Highlights Amul - History and The White Revolution Amul - Founders and Owner Amul - Business Model and Organization Structure Factors that led to Amul's Success Amul - Marketing Strategies Amul - Revenue and Growth

Amul - Latest News

May 9, 2021 - On the occasion of Mother's Day, Amul dedicated a new doodle to all the mothers . It features Amul's mascot feeding milk to a child in a bottle.

#Amul Topical: On the occasion of Mother’s Day... pic.twitter.com/oxizhJN8CF — Amul.coop (@Amul_Coop) May 9, 2021

May 7, 2021 - The suspension of  IPL 2021 attracted a series of memes across various platforms. Amul hopped on this trend and shared a topical on this regard that has gone viral all over the internet. The creative topical of Amul reads - I ndia P ostpones L eague!

#Amul Topical: IPL 2021 suspended due to CoVid -19! pic.twitter.com/QgzrDHkRJH — Amul.coop (@Amul_Coop) May 5, 2021

April 18, 2021 - Gujarat Co-operative Milk Marketing Federation Ltd (that markets Amul brand) reached out to AAR on the flavored milk taxable under GST. The brand deals with flavored milk products Amul Kool/Amul Kool Café. Thereby, the Gujarat Authority for Advance Ruling (AAR) said - "Flavored milk is basically 'beverage containing milk' and will attract 12% GST"

March 11, 2021 - Amul submitted a plan to The Government of India with an aim to make India a global hub for mozzarella cheese exports that are made from buffalo milk. It is planning to invest around INR 200 crore.

Amul - About and Company Highlights

Amul - Founders and Owner

Verghese Kurien and Tribhuvandas Kishibhai Patel founded Amul. R S Sodhi is the CEO of Amul since June 30, 2010.

Amul is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). Today, it is jointly owned by 36 lakh milk producers in Gujarat, and the apex body of 13 District Milk Unions spread across 13,000 villages of Gujarat.

Verghese Kurien - Biography

Tribhuvandas kishibhai patel - biography.

Amul - History and The White Revolution

Here's a brief analysis of Amul's history and how Amul contributed to the White Revolution. Amul cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers by the dealers and the agents of the main dairy of that time, the Polson dairy. The price of milk was randomly determined. The government had given monopolistic rights to Polson to collect milk from Kaira dairy farmers and supply it to the city of Mumbai.

Agitated by this treatment, the farmers of Kaira approached Sardar Vallabhbhai Patel under the administration of their leader Tribhuvandas K. Patel. Sardar Patel advised them to frame an organization, i.e., Kaira District Co-usable Milk Producers' Union (KDCMPUL) , and supply milk directly to the Bombay Milk Scheme rather than relying on Polson. He sent Morarji Desai to sort out the issues faced by the farmers.

Milk collection was decentralized as most of the makers were minor farmers who could provide 1–2 liters of milk each day. Cooperatives were framed for every town.

By June 1948, KDCMPUL had begun pasteurizing milk for the ' Bombay Milk Scheme' . Under the leadership of Tribhuvandas Patel, Amul celebrated its 25th Anniversary in 1973 with Morarji Desai, Maniben Patel, and Verghese Kurien.

The cooperative was additionally created and headed by Dr. Verghese Kurien with H.M. Dalaya. Dalaya's innovation of making skimmed milk powder from buffalo milk for the first time in the world and then making it on a commercial scale with Kurien's help led to the first modern dairy of the cooperative at Anand (Gujarat). It competed against many established market players.

Within a short period, the success at the cooperative's dairy spread to Anand's neighborhood in Gujarat. Thus, five unions in other districts like Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat were set up by following the approach sometimes referred to as the 'Anand pattern'.

In 1970, the White Revolution of India began. In 1973, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) , an apex marketing body of these district cooperatives, was set up to combine forces and expand the market while saving on advertising and avoiding internal competition. The Kaira Union, which had the brand name Amul with it since 1955, transferred the name to GCMMF.

Since then, GCMMF has become the largest food products marketing organization in India. It is the leading organization of dairy cooperatives in Gujarat. GCMMF is responsible for the exclusive marketing of products falling under 'Amul' and 'Sagar' brands.

Over the last five and a half decades, dairy cooperatives in Gujarat have created an economic network that links more than 3.1 million village-manufactured milk products with millions of consumers in India.

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in Mogar, Anand near its headquarters.

Amul - Business Model and Organization Structure

Amul pursues a unique plan of action in which 'esteem for cash' items are given to its purchasers while securing the premiums (as a proprietor) of the milk-producing farmers who are its providers. As milk is a transient item, the rancher could endure a misfortune on the off-chance that it isn't sold before the part of the bargain.

Amul's business model is described below:

Structure of the Organization

The cooperative model used by Amul came to be known as the "Anand design" cooperative framework. It is a three-level structure that involves town social orders, region-level dairy associations, and a state-level organization. Every level is financially free of the others and involves agents selected from the level below it.

It is fairly simple to understand. When one person does not have enough funds to generate the required capital for the company, other members with the same intention pool their resources together to make a whole organization that has substantial capital. The cooperative model is highly advantageous as it ensures faith in the brand. Even banks prefer to loan money to cooperative businesses over individual ownership. Today, Amul constitutes 30 Lakh farmers from all over India .

Situated in the town of Anand, the Kaira District Milk Cooperative Union (Amul) has grown exponentially. It held hands with other milk cooperatives in Gujarat and now covers 2.12 million farmers, supporting 10,411 towns' milk. It focuses on fourteen area-level plants (associations) under the general supervision of GCMMF.

Since the beginning, there was an assumption that this activity would directly profit and change poor farmers and add to the improvement of society. Markets, at that point and even today, are crude and poor in the foundation. Amul and GCMMF recognized that improvement and development couldn't be left to market powers and that proactive intercession was required.

Two key necessities were distinguished. -

• First, that continued development for the long haul would rely upon coordinating free market activity. It would require an overwhelming interest in the synchronous advancement of providers and customers.
• Second, the powerful administration of the system and business feasibility would require proficient administrators and technocrats.

The Three-tier Model of Amul

Amul is a brilliant organization that works with simplicity yet perfection. It follows a three-step process where each body functions effectively. The three tiers include:

• Village Dairy Cooperative Society - Each manufacturer is a part of the village dairy cooperative society that is a community for manufactures.
• District Milk Unions - Village Dairy Cooperative Society members elect their representatives who together form District Milk Union.
• State Milk Federation - This federation is responsible for the distribution and selling of products in the market.

Amul as the Umbrella Brand

The system pursues an umbrella marking technique. Amul is the basic brand for most item classifications created by different associations: fluid milk, milk powders, margarine, ghee, cheddar, cocoa items, desserts, frozen yogurt, and consolidated milk. Amul's sub-brands incorporate variations, for example, Amulspray, Amulspree, Amulya, and Nutramul.

The palatable oil items are assembled around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while natural product beverages bear the Safal name. By demanding an umbrella brand, GCMMF skillfully maintained a strategic distance from association clashes and created an open door for the patrons to coordinate in creating items.

Amul's Development of Products

Amul's item improvement was driven both by the soul of the cooperative framework and productivity. Being a farmers' cooperative, Amul was focused on purchasing all the milk offered by the former. The transitory idea of milk made it important for Amul to process the surplus milk and enter new item classifications as the generation expanded.

Margarine and Butter

Propelled in 1955, margarine was one of the main milk items offered by Amul. It was additionally the first run-through Amul effectively tested on the authority of a built-up brand. Amul uprooted Polson to rise as the undisputed pioneer in margarine advertisement.

Cheese and Cheddar

GCMMF propelled cheddar in 1959 followed by cheddar powder in the mid-1970s. The notoriety of cheddar expanded during the 1980s.

Milk and UHT Milk

Amul was the market chief in the Gujarat entire milk showcase with a 90% piece of the pie in 2002; aside from providing milk to parts of Maharashtra and Rajasthan .

Factors that led to Amul's Success

The amul girl (the amul advertising campaign).

In 1966, Amul hired Sylvester da Cunha, the managing director of an advertising agency, to design an ad campaign for Amul Butter. DaCunha designed the campaign as a series of hoardings with topical ads that related to day-to-day issues. It was popular and earned a Guinness World Record for the longest-running ad campaign in the world.

In the 1980s, cartoon artist Kumar Morey and scriptwriter Bharat Dabholkar were roped in for sketching Amul's ads. But Dabholka rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Verghese Kurien for creating a free atmosphere that encouraged the development of the ads.

The Amul girl is the advertising mascot used by the company to promote the brand. The brand has been cleverly using the cartoon figure in its longest-running ad campaign. The Amul girl is used to insert an element of humor into its print ads.

Indians have liked Amul's advertisements and the brand has seen higher customer engagement. The brand recall value for Amul increased. The Amul girl advertising campaign is often described as one of the best Indian advertising concepts.

Amul's Innovation

Amul has constantly been innovating, be it launching new products, creative marketing campaigns, or challenging traditional societal trends to come up with better ones. As mentioned, Amul in the 1960s became the first brand in the world to make skimmed milk powder from buffalo milk.

Also with its three-tiered cooperative structure, Amul transitioned from traditional operations to a more cost-efficient and effective structure. For its continuous innovation, Amul won the “CNN-IBN Innovating for Better Tomorrow Award” and “World Dairy Innovation Award” in the year 2014.

Efficient Supply Chain of Amul

Amul follows a three-tier cooperative structure. It consists of a dairy cooperative society at the village level that is affiliated with milk unions at the district level which in turn get federated to a milk federation at the state level. Milk is collected at the village dairy society, obtained and processed at the district milk union, and marketed at the state milk federation.

The greatness of this model lies in the fact that Amul was the first company to follow this model. It was reciprocated all over the country under 'Operation Flood' in the 1970s. The model ensures that there is efficiency and swiftness in operations. With this, the Amul model has helped India become the largest milk producer in the world.

Coordinating Nature of Amul

Amul follows the 'branded house architecture' way wherein whatever it promotes is done under a common brand name – Amul. The prime focus is on promoting the parent brand rather than individual products; this helps Amul gain more brand visibility and spend lesser on marketing and advertising costs.

Given the enormous number of associations and substances in the inventory network and decentralized duty regarding different exercises, successful coordination is basic for effectiveness and cost control. GCMMF has understood this procedure well and accomplishes the level of control.

Amul - Marketing Strategies

The first time I came across Amul was when the catchy tune of ‘Amul Doodh Peetha Hai India’ rang from the television. I was, maybe 6 years old. Thirteen years later, I still encounter some variation or the other and it evoked memories as always. Some brands are, for a long time successful, but few managed to touch our hearts. Let's take a look at the various Marketing Strategies of Amul -

Amul - Revenue and Growth

Amul's revenue stood at INR 38,550 crores (US$5.4 billion) in 2020. The Gujarat Cooperative Milk Marketing Federation Ltd., responsible for marketing Amul milk and dairy items, revealed a 13% expansion in its turnover to Rs 33,150 crores in the year finished March 31, 2020. The Amul gathering's turnover surpassed Rs 45,000 crores which are 13% higher than a year ago, i.e., in 2019.

The Amul Federation has accomplished a compound yearly development pace of over 17.5% for as long as nine years because of higher milk obtainment, extension in business sectors, and the dispatch of new items.

What is Amul's Full form?

It stands for Anand Milk Union Limited . Amul is an Indian dairy cooperative society based in Anand (Gujarat). The word 'Amul' is derived from the Sanskrit word ‘Amulya’ which means priceless or precious.

What is White Revolution and who started it?

The white revolution was the initiative responsible for the growth of milk production in India and encouraged the production and use of Indian dairy products. Amul started India's White Revolution, which made India the world's biggest maker of milk and milk products. Dr. Verghese Kurien is known as the 'Father of the White Revolution' in India.

What was the effect of the White Revolution?

White Revolution made India the biggest manufacturer of milk and milk items. It additionally diminished the acts of fraud and malpractices by milk dealers and traders.

How was Amul founded or when did Amul start?

Amul cooperative was registered on 19 December 1946 as a reaction to the exploitation of local milk producers by the dealers and the agents of Polson dairy.

Who is Amul's Owner?

Amul is owned by Gujarat Cooperative Milk Marketing Federation, Ministry of Cooperation, Government of Gujarat

Who is the founder of the Amul brand?

Dr. Verghese Kurien and Tribhuvandas Kishibhai Patel are considered as the Founders of Amul. Tribhuvandas headed the organization until his death in the 1970s. He got in touch with Dr. Verghese Kurien in 1949 and persuaded Dr. Kurien to help with the mission.

What does Amul mean?

It stands for Anand Milk Union Limited. The word 'Amul' is derived from the Sanskrit word ‘Amulya’ which means priceless or precious.

What is the mission statement of Amul?

The mission statement of Amul revolves around the company's aim of providing remunerative returns to the farmers. It also serves the interest of the consumers by providing quality products, which offer good value for money .

Where is the headquarters of Amul?

The headquarters of Amul is in the Anand district of Gujarat.

What is the Amul product life cycle?

The Amul product life cycle consists of 4 stages, which are Introduction, Maturity, Growth and Decline.

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Amul Case Study – How Amul Started & Built Its Successful Empire

Supti Nandi

Updated on: June 19, 2023

Every brand that you see around you has a unique story. But you will hardly see any brands that are mentioned in your history textbooks and exist in the current era. One such brand is AMUL. The “Amul Case Study” is a hot topic in the market. Reason? Because it has a glorious past, a magnificent present, and a successful future. If you reside in India, then you would be familiar with this brand. What’s so special about it? Why is it associated with our history? You may ask. Because AMUL was a significant part of the “White Revolution.” This revolution turned India from a “ milk-deficit country ” into the “ largest milk producer ” in the world. 

Its journey is related to our nationalism. Ever since its establishment it never lost its spirit. It created a successful empire through the great leadership and philosophy of “Dr.Verghese Kurien”- The father of the White Revolution. Are you curious to know about Amul’s journey? If yes, then stick to this write-up of “Amul Case Study” where we will explain how it started and built its successful empire.

Keep reading!

How Amul Started?

You must have heard the famous phrase- “ Rome wasn’t built in a day .” It means the building up of great things takes time. The same is the case with Amul. The foundation of Amul involves a tragic history of milk farmers and the government’s assistance. And most importantly the contribution of Dr. Verghese Kurien. How did it occur and benefited us? You will get to know it all in the following sections of Amul Case Study. 

1. The 1940s: Exploitation of Milk Producers (Milk Farmers)

Revolution doesn’t begin just in the blink of an eye. It takes years and years of exploitation, injustice, torcher, blood, sweat, and tears. Similar were the conditions of our milk producers back in the era of 1940s. Our milk producers possessed hardly one or two cows/buffalo. They traveled long distances in the scorching heat of summer just to get exploited by the middlemen/brokers. Yes, exploitation! The next few sections describe the tragic saga of Indian milk farmers in the 1940s.

2. Paying Negligible Prices for Milk to Farmers (Milk Producers)

In those days, brokers or middlemen randomly determined the prices of milk. Unlike today there were no criteria for determining the price of milk based on its lipid/fat and protein quantity. The arbitrary prices of milk were nearly negligible. Milkmen hardly earned pennies by selling milk. Their poverty seemed to be eternal until Amul arrived! We will discuss it in detail in the upcoming sections. The majority of those brokers worked for Polson. See the next section for more details.

3. Monopoly of Polson

This was another punch for milkmen. Apart from brokers, the company Polson was ruling the dairy industry. The British government had given it the right to collect milk from Kaira (Kheda, Gujarat) and supply it to Mumbai. Can you guess the condition of customers? They had to buy milk at the price of gold! The price of milk was sky-high and Polson used to earn large chunks of money due to its monopoly.

So, not only milk producers but milk consumers were exploited too! Only the rich could afford milk & milk products in that era. 

4. Pre-Independence Era of 1946: The Milk Strike Saga

Through the years the level of exploitation of farmers by the local trade cartel (middlemen) crossed the threshold and finally exploded. The milk producers (farmers) of the district along with Tribhuvandas Patel approached Sardar Vallabhbhai Patel for a sustainable solution. The great Indian patriot advised them to get rid of those brokers. Inspired by the national freedom movement, the milk farmers went on a milk strike in 1946. They refused to sell the milk to those town cartels.

5. 14 th December 1946: The Birth of AMUL

Sardar Vallabhbhai Patel advised the milk farmers to form a cooperative society through which they could supply milk directly. Working without the need for middlemen was no less than a blessing for farmers. But it was not possible without great leadership. So, he sent Morarji Desai to organize the farmers. A meeting took place in Chaklasi (Kheda, Gujarat), and a decentralized milk collection cooperative was formed. It was named “ Anand Milk Union Limited .” This long name was shortened to its acronym AMUL. Earlier its name was KDCMPUL (Kaira District Cooperative Milk Producers’ Union Limited).

How did it work?

 In AMUL, the milk farmers gave 1-2 liters of milk per day. Since there were many farmers, the amount of milk was high too! Thus, they collected 250 liters of milk per day in the villages of Anand (Gujarat).

H.M. Dalaya (Indian inventor) introduced the technique of making skim milk powder from a liquid form of milk. This was a technological breakthrough that revolutionized our dairy industry.

Such a cooperative association with the name AMUL was formed in numerous districts of Gujarat to supply milk to Bombay (Mumbai).  This cooperative was further developed and expanded under Dr. Verghese Kurien . Later, he became the father of the white revolution in India. How? You will get to know in the further sections.

6. Era of 1966: Birth of Amul’s Ad Girl

Dr.Verghese Kurien realized the fact that they need a strong brand identity to survive in the FMCG market. So, first of all, he renamed KDCMPUL as Amul. Do you know there is an interesting background in the nomenclature of AMUL?  The acronym AMUL is synonymous with the Hindi word “ Amulya ” meaning “Priceless.” This great meaning has a strong emphasis on the brand-building of AMUL. But renaming the brand wasn’t enough. Also, he wasn’t an expert in the field of marketing/advertising. Therefore, he handed the responsibility for Amul’s advertisements to Sylvester da Cunha in 1966. The team of Sylvester created and conceptualized this iconic Amul girl with a tagline- “ Utterly butterly delicious .” This tagline was made for Amul butter. 

Note : Go through the article “ Amul Marketing Strategies ” to have in-depth information about the marketing strategies used by Amul.

7. Era of 1970s: The White Revolution

Do you know, before AMUL, we had to import milk from New Zealand? Now you must have realized why milk products are considered a luxury in Indian households. The Indian government realized the fact that a masterstroke is needed to end the dependency of milk on foreign countries. And that masterstroke was none other than the “White Revolution.” It is also known as the “Operation Flood” campaign that aimed to grow indigenous milk production exponentially. On the 2 nd of October in 1970, then Prime Minister Indira Gandhi inaugurated the “White Revolution” in Motihari (Bihar). Over 100 high-milk-producing cows were imported from New Zealand. This is the crucial aspect of Amul Case Study. The goals of White Revolution were crystal clear-

• To increase the quality and quantity of milk so that consumers can have it at affordable prices. 
• To provide good prices for milk to the milk farmers.
• To improve the breeding practices among cattle owners with required training and financial assistance.

Two organizations collaborated to fulfill these objectives- 

• NDDB : National Dairy Development Board
• AMUL: Anand Milk Union Limited

They established several cooperatives in India. They bought fresh milk from local farmers at fair prices. Also, they provided the latest equipment to increase production levels without any expensive capital investment.

Dr. Verghese Kurien: Father of White Revolution in India & the Core of AMUL

You can never miss the name of the great leader Dr. Verghese Kurien in the “Amul Case Study.” Born in March 1921, Dr. Verghese Kurien, the visionary behind the white revolution in India. He embarked on a mission to transform the country’s dairy industry and empower farmers. With his determined spirit and innovative strategies, he spearheaded the creation of dairy cooperatives, most notably the Gujarat Cooperative Milk Marketing Federation (GCMMF) and the renowned Amul brand.

Dr. Verghese Kurien had two philosophical objectives-

• Value for Many : Profitable for farmers
• Value for Money : Profitable for consumers

Kurien understood that the key to success lay in organizing farmers into cooperatives. He established milk collection centers in rural areas, providing a reliable market for farmers’ milk and ensuring fair prices. This not only improved farmers’ incomes but also addressed the challenge of milk spoilage. Furthermore, Kurien revolutionized milk processing by introducing advanced technologies such as pasteurization and cold storage. These innovations enhanced the quality and shelf life of dairy products, opening up new avenues for value addition and export. Under Kurien’s leadership, India transformed from a milk-deficient nation to the world’s largest milk producer. His approach to empowering farmers, fostering cooperative movements, and embracing technological advancements revolutionized the dairy industry. Dr. Kurien’s remarkable contribution will forever be remembered as a turning point in India’s agricultural landscape, uplifting the lives of countless farmers and ensuring food security for the nation.

AMUL: Strongest Brand in FMCG Market

Look at the following data-

How Amul Built Its Successful Empire?

Here we are at the final part of the Amul Case Study. The data mentioned in the above table are enough to describe the grand success of AMUL. But what led to this sky-high success? This is the crucial part of the Amul Case Study. Here are some key factors that have contributed to Amul’s success:-

1. Cooperative Business Model

Amul operates on a cooperative model, which means it is owned and governed by farmers. It was established in 1946 as a response to exploitation by middlemen, and it aimed to empower farmers by ensuring they received a fair share of the profits. This cooperative structure allowed farmers to pool their resources, collectively manage the dairy operations, and benefit from economies of scale.

2. Milk Procurement Network

Amul has established an extensive milk procurement network, connecting millions of farmers across thousands of villages in India. This network ensures a steady and consistent supply of high-quality milk, which is a crucial factor for the success of any dairy business.

3. Milk Processing, Packaging, and Product Diversification

To deliver milk long distances and to ensure long shelf life, Amul uses innovative methods to process and package the products. While Amul initially focused on milk and milk products like butter and ghee, it gradually diversified its product portfolio. Today, Amul offers a wide range of dairy products, including cheese, ice cream, yogurt, milk powder, chocolates, and more. This diversification has helped Amul cater to different market segments, expand its customer base, and generate higher revenues.

4. Quality and Affordability

Amul has built a strong reputation for providing high-quality dairy products at affordable prices. By maintaining strict quality control measures, investing in modern technology, and adhering to international standards, Amul has gained the trust of consumers. Its products are known for their freshness, taste, and nutritional value, making them popular among customers across various demographics.

5. Umbrella Marketing and Advertising

Amul is renowned for its innovative and memorable advertising campaigns . It uses an “Umbrella Marketing” strategy to promote all of its products under the same brand name i.e. Amul. It has effectively used witty and creative advertisements featuring its mascot. That is the Amul girl, who connects with consumers and creates brand recall. Also, it uses a moment marketing strategy with alluring taglines. This consistent and engaging marketing strategy has helped Amul remain a top-of-mind brand in the dairy industry in India.

6. Distribution Network

Amul has established a robust distribution network that reaches even the most remote areas of India. Its distribution channels include a vast network of milk collection centers, processing plants, and an extensive distribution system involving cooperatives and third-party agents. Amul Franchises are considered one of the most profitable franchises in India . This wide reach ensures that Amul products are readily available to consumers across the country.

7. Social Impact

Amul’s success is not only measured in financial terms but also its social impact. By empowering farmers and providing them with a fair income, Amul has played a crucial role in rural development and poverty alleviation. It has uplifted the lives of millions of farmers and their families, improving their socio-economic conditions and creating a positive ripple effect on rural communities.

Final Words

The Amul Case Study teaches us the power of teamwork, innovation, and thinking outside the box. It shows how a group of farmers in India joined forces to create a cooperative that revolutionized the dairy industry. With their “Amul girl” mascot and catchy advertising campaigns, they built a beloved brand. They diversified their products, expanded their distribution network, and empowered farmers along the way. Amul’s success story teaches us that by working together, embracing creativity, and caring for the community, we can achieve remarkable things and make a positive impact on people’s lives.

Related Posts:

Amul has constantly been innovating, be it launching new products, creative marketing campaigns, or challenging traditional societal trends to come up with better ones.  It’s objective was to provide proper marketing facilities for the milk producers of the district . As mentioned, Amul in the 1960’s became the first brand in the world to make skimmed milk powder from buffalo milk.Yes, Amul has made a social impact & their teamwork is appreciable though.

To be honest, I generally don’t read but when I started reading, I became curious to know the whole story and enjoyed reading.

Also, It is very well researched and thorough, images are well placed, words are easy to understand.

Keep writing, we love it 🙂

Before this I didn’t not know much about Amul but with the help of this article I got some deep knowledge about Amul and how did it started and and what is the business model and etc..

I really enjoyed reading this artical..😊

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Case Study: The Supply Chain Of Amul - From Cow To Kitchen!

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Problem Statement:

Initially, the producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to carry milk in individual containers physically. These agents decided the prices and the off-take from the farmers by the season. In winter, the producer was either left with unsold surplus milk or had to sell it at very low prices.

The Establishment Of Amul

Thus the Kaira District Cooperative was established to collect and process milk in the district of Kaira. The first modern dairy of the Kaira Union was established at Anand “ which popularly came to be known as AMUL dairy after its brand name” . The new plant had the capacity to pasteurize 300,000 pounds of milk per day, manufacture 10,000 pounds of butter per day, 12,500 pounds of milk powder per day, and 1,200 pounds of casein per day.

The model of Amul is such that it benefits small producers like farmers, who together form an integrated approach to form an economically large-scale business. The model eliminates middlemen, bringing producers in direct contact with the customers.

Every day, Amul collects 447,000 litres of millk from 2.12 million farmers, converts the milk into branded, packaged products and delivers the goods which are worth Rs. 60 million to about 500,000 retail outlets across the country.

Decoding Supply Chain Of Amul

As shown in the figure, the Supply Chain Of Amul consists of farmers who produce milk from their cattle. The farmers are organized into cooperatives called Village Cooperative Societies (VCS). These VCSs supply milk to thirteen different dairy cooperatives, called Unions, of which Amul is one. The milk or milk products made at these unions are supplied to the Gujarat Cooperative Milk Marketing Federation (GCMMF) . 

Read Related Article: The Pay, Scope, And Opportunities In Supply Chain Management: Decoded

All we know about Amul's advertisement is of the Cartoon girl who markets products by making fun of recent issues and encouraging people everywhere. This development of a common identity is at the core of the GCMMF’s marketing strategy. 

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What moves the company amul.

“Keeping Farmers as Decision makers!!”

The Supply Chain Of Amul eliminates middlemen and directly engages farmer with the processor (dairy). The model has linked rural dairy producers to urban consumers through dairy cooperatives, trucking networks,  chilling plants and processing  plants. Further, the programme has also motivated dairy producers and others involved in the supply chain to invest and increase their earnings from dairying. Amul has developed organization representing not only the farmers but also customers thus securing both Demand and supply side of the milk industry.

Overall AMUL has been successful to develop linkages among cooperatives and develop partnership among Milk Producers, processors and marketers. Such partnerships reduce the operational risk and help to understand the consumer through its reliable partners. It provides flexibility and makes the entire organization responsive to changing environment conditions. Amul model has successfully shown the management through cooperatives and how cooperatives can be used to build larger organization. One can learn many things from this model and apply it in business practices. The approach may be different but message remains same- Building organizations through cooperatives.

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Marketing Strategy of Amul – A Complete Case Study with Examples (PDF Included)

Home > Blog > Marketing Strategy of Amul – A Complete Case Study with Examples (PDF Included)

• Last updated on November 17, 2023

Amul needs no introduction. It is an Indian and very successful dairy products brand. I am sure, if you check now, you will definitely find an Amul product in your home. All love Amul, trust Amul, and use Amul but how did this happen? How Amul became what it’s today? it’s because of the marketing strategy of Amul .

Amul was started decades ago but then also it successfully maintained its brand image just like before. There is a genius marketing strategy followed by Amul . You will learn about this strategy in this article. Before moving towards the marketing strategies, let’s know about the company .

Bonus Read: Jio Marketing Strategy

Amul is derived from Anand Milk Union Limited . It was started by Dr. Verghese Kurein in 1946. Dr. Verghese is popularly known as the Milkman of India. The special thing about Amul is, it is not a private or public company. It is a cooperative society that started to provide justice to farmers in 1946.

At that time, there was a middleman in cities who offers a very less amount of money in exchange for milk. To solve this problem , Dr. Verghese started Amul with the cooperation of other farmers. Now there are no middlemen in Amul. Milk producers (farmers) sell products that offer them a good amount of money.

Amul Business Model

Amul has 5 pillars in its business model . It is a “for the people” company. There is no single owner of Amul, all villagers manage Amul Cooperative society. Here are the 5 pillars of the business model.

• Milk Producers
• Village dairy cooperation
• District Milk cooperation union
• State cooperative milk marketing federation
• The Consumer

The profit share of the products is distributed as shown in the above chart .

Must Read: Zomato Marketing Strategy

Amul Target Customer (Two Segments)

Amul targets those  customers  who need a good  quality product  at an  affordable  cost. The brand creates products for everybody that’s why we have  divided  its target audience into  two segments . Amul smartly plans marketing strategies for both of these audiences.

Business to Consumers (B2C)

Amul created products for  every age group  based on their interests and choices. Here are the names of a few products. They hold the Guinness record for the longest-running advertising campaign.

Business to Business (B2B)

In  T.V. advertisements , we generally see Amul focusing on the B2C market. But in reality, the brand has a  special interest  in the B2B category. B2B category people buy products in bulk and are regular customers that’s why they are very important for the company.

Amul’s Marketing Strategy

Amul’s unique and innovative marketing strategies differentiate it from other dairy brands. There is no single dairy products company in India, we have many. Amul dominated this competitive market with its smart marketing campaigns. Let’s know about each campaign in detail.

1) Amul’s Ad Girl Marketing Strategy

This is a  handmade drawing of a girl  which Amul created in 1967 in response to its rival brand. It is the most  loved ad  icon in India. Amul uses this girl in every ad. The activities of this girl change according to the ads.

You can see her   doing Yoga in some ads, whereas   playing cricket in others. Using this girl as an ad icon is  Amul’s best marketing strategy  so far.

2) Moment Marketing Strategy of Amul

Amul is using this  moment marketing strategy  for decades now. Previously, it was in newspapers and now it is on popular social media platforms like Twitter. As you can see in the above image, Amul used this  latest news of equal pay  for both  men & women cricketers . See how smartly, the brand used this news for its marketing purpose. This is the innovative  marketing strategy of Amul .

3) Low-Cost, High-Value Marketing Strategy

Amul targets the  mass market . It sells quality products at a  reasonable price  that everybody can afford. This increase the repeat customers of Amul. It is a  simple  but effective  marketing strategy of Amul . Delivering high-quality products at low cost is also a great competitive advantage of Amul.

4) Smart Tagline Marketing Strategy

Amul’s popular taglines, are “ Amul Doodh pita hai India ” and  “The Taste of India “ . These taglines subconsciously attract the audience and capture the mind space of consumers.  Creating jingles  and  taglines  costs  no money  but some creativity and psychological understanding of your consumers.

5) Sell all Products Under one Brand

Generally,  FMCG companies  sell products under  different brand names . Amul did this differently. They created one flagship brand ( Amul)  and started selling various products under that brand. Whenever Amul launches a new product, it sold out effortlessly because of its brand value. This is another great  marketing strategy of Amul  where it thought and acted out of the box.

6) Digital Marketing Strategy of Amul

Digital marketing is much  cheaper than traditional marketing . Amul sees this opportunity and after going digital, their  profit margins have increased  tremendously. Let’s understand the digital marketing strategy of Amul in detail. Amul uses social media, email marketing, and influencer marketing to promote its products.

SEO Strategy of Amul

Amul follows a smart SEO strategy. According to SEMrush, their website gets more than  960,000 visitors  per month. Most of its traffic comes from  branded queries .

As you can see in the above image, the  domain authority  of the Amul website is  59 . Whenever Amul publishes a new page, it easily gets ranked on Google due to its high authority. This is a good  marketing strategy of Amul  which helps in getting the right audience from Google.

Social Media Marketing Strategy of Amul

Followers on these social media platforms show Amul follows  innovative and highly engaging marketing strategies  to attract the audience. Otherwise, it is very difficult to attract someone in this  noisy world  where we have more content than needed.

FACEBOOK ADS MARKETING STRATEGY

As you can see in the above image, Amul creates a  brand awareness  of its new products through  social media paid ads . After a few days, there is a festival in India called  Chhath Puja . Amul linked that festival with their new product. This is an awesome  marketing strategy of Amul . Every social media marketer must learn from it.

To check the latest Facebook ads of Amul, you can visit the  Facebook ad library .

TWITTER MARKETING STRATEGY OF AMUL

Amul generally uses  moment marketing  to capture the  audience’s attention . You can see, the above post got more than 1000 likes in just 1 day. In India, people are in love with Amul’s cartoon marketing. After Amul, new tech brands like Zomato also started using the strategy to gain attention. Many times Amul’s tweets go viral so this is a free  marketing strategy of Amul  to reach a larger audience.

YOUTUBE MARKETING STRATEGY OF AMUL

Amul has more than  4 lac subscribers  on YouTube . Amul follows a good  content marketing strategy  on YouTube. They started a trend during  Covid-19  #SimpleHomemadeRecipes which is still running. More than  3000 videos  are uploaded on YouTube of these series.

Professional  chefs shoot these videos  and  Amul uploads  them on  YouTube . Amul saves all its content creation money. They just edit & upload the video. Chefs also get the opportunity to be featured on a 4 lac subscribers channel so it’s a win-win game.

In my opinion, this is the best marketing strategy of Amul which everyone should learn from. Amul got millions of eyeballs by just uploading these other’s created videos.

Popular Marketing Campaigns of Amul Dairy Products

1) #celebratingdrkurien.

The campaign was started in 2018 as a tribute to Dr. Kurien. It was a bike rally from Jammu to Gujrat. During the campaign, bikers met those farmers whose life has been impacted by Dr. Kurien. It was a very big campaign.

This was a very successful campaign. Thousands of people from different villages met these bikers. All national news channels covered this news and Amul got free marketing without paying a single penny. This was a good marketing strategy of Amul in rural areas.

2) #amulrecipes

Amul started this #Amulrecipes campaign on YouTube. They created more than 300 videos during the campaign. Today Amul has more than 4 lac subscribers on its YouTube channel. Amul got a huge subscriber gain after this campaign. Many of its videos have lakhs of views. During the video, Amul is using their own products. Every recipe needs a dairy product so Amul started creating these recipe videos to showcase their products.

3) Amul Classics

This campaign was started during Covid-19. After a long period of time, Doordarshan started showing Ramayana and Mahabharat on Television. At that time, people demanded Amul to telecast those 90s ads again. These ads were shown on Television as well as social media platforms.

On YouTube, Amul created a playlist of 88 classic ad videos. These videos got thousands of views. Amul follows genius marketing strategies,  their  marketing doesn’t feel like marketing” because people love their ads and creativity.

Here we end our case study on Amul’s marketing strategy. Amul is one of the most loved brands in India. Their ads are so attractive that nobody can ignore them. In this case study, we have covered almost all marketing strategies of Amul. At the end of the article, we have also mentioned the names of Amul’s popular marketing campaigns.

During our 4 month digital marketing course in Jaipur , we teach hundreds of case studies to our students. You can also join our course to learn more marketing strategies of Amul. Thanks for reading. Do share this Amul case study with your friends & family.

Which marketing strategy of Amul, you loved the most? Tell us in the comment box.

FAQs Related to Amul Marketing Strategy

Amul sells all its product under one name i.e Amul. We can get Amul Ghee, Amul Dahi, and Amul cheese. Everything is available under one brand name. Whenever Amul launches a new product in the market, it starts selling with no advertising because people trust Amul. This is a wonderful marketing strategy of Amul which I loved the most.

Amul’s business model stands on the 5 pillars explained above in this article. Amul is not a company, it’s a cooperative society so the milk producers also get a good income by selling milk.

Amul has an internal marketing team. They plan and execute marketing strategies regularly to test the new products.

The two most famous marketing taglines of Amul are Amul Doodh pita hai India ” and  “The Taste of India “ .

Parmveer Singh Sandhu

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• Harvard Business School →
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• May 2016 (Revised June 2017)
• HBS Case Collection

India's Amul: Keeping Up with the Times

• Format: Print
• | Language: English
• | Pages: 25

About The Authors

Rohit Deshpande

Tarun Khanna

Related work.

• February 2017
• Faculty Research
• India's Amul: Keeping Up with the Times  By: Tarun Khanna, Rohit Deshpandé and Namrata Arora
• India's Amul: Keeping Up with the Times  By: Rohit Deshpandé, Tarun Khanna, Namrata Arora and Tanya Bijlani

Amul is an Indian milk cooperative society based out of Gujarat. t is under the ownership of Gujarat Cooperative Milk Marketing Federation Limited, Department of Cooperation, Government of Gujarat. Today, it is controlled by 3.6 million milk producers. Mr. Tribhuvandas Kishibhai Patel laid the foundation of Amul in 1946. Later, Verghese Kurien joined Mr. Patel as the general manager. To manage and assist the marketing and technical department of the cooperative. After Mr Patel died in 1990, Kurien became the chairman of Amul and the face of its success. 

History of Amul

The main motive behind the commencement of Amul was not profit-making but a fight against the exploitation of Polson towards the Dairy farmers. Polson is the name of a dairy products brand that was started in India by Pestonjee Eduljee in 1915 in Mumbai. Dairy farmers of Kaira, along with Mr Tribhuvandas Kishibhai Patel, went up to Sardar Vallabhbhai Patel. To get a solution for the exploitation they were facing by Polson because the prices of the milk were fixed arbitrarily by the Giant,  making it very hard for the Dairy farmers to make ends meet. Sardar Vallabhbhai Patel advised the farmers to form a cooperative and sent Morarji Desai to organise the farmers.

After a meeting in Chaklasi, the farmers formed the cooperative and decentralised the whole milk pooling system. Most of the farmers were only able to provide 1-2 litres of milk daily. They were the ones who most benefited from the formation of the cooperative. Later, this cooperative was named AMUL under the leadership of Mr.Tribhuvandas Kishibhai Patel.

Seeing the success of Amul in the Annand district, neighbouring districts of  Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat were set up with similar cooperatives, and this was sometimes described as the Anand Pattern. 

White revolution & AMUL

White Revolution popularly, known as Operation Flood, was a government-led initiative with the Spearhead cooperative Amul. The main aim of the revolution was to increase the milk production in the country. Indeed, it was a significant success for India, since India ended up being the top producer of milk and milk products in India. In 1973, an apex body called the Gujarat Co-operative Milk Marketing Federation Ltd was set up to facilitate the marketing of these district cooperatives. The world’s biggest dairy development program, led by Dr. Verghese Kurien. ‘Operation Flood’, as it is otherwise known, transformed the dairy-deficient nation into the global leader in milk production. For the millions living in rural India, milk farming became the largest source of employment and income.

During the 1960’s India had the highest cattle population, & yet India stands among the lowest milk producers in the world. Between 1961 and 1970, the nation had to be dependent on imports to fulfil their dairy needs. The idea behind the white revolution was simple, eliminate the middle man, directly connecting the consumers with the dairy farmers. When farmers were getting a better price for their product they felt incentivized. Hence, they were willing to increase the production of milk, and other milk products. With the combined success of Amul and the white revolution, Mr.  Verghese Kurien went on to be called as the milkman of India. The dairy engineering graduate transformed a dusty little town in Gujarat into the milk capital of India. 

5 Key factors that led to the success of Amul

Utterly, buttery, delicious! I bet almost all of us have heard this jiggle at least once in our lives. Or have noticed that vivacious little girl on the packs of Amul butter? She became the ultimate advertising mascot for Amul to date. Amul has smartly used the girl mascot to advertise their brand associating it with humour and and how children like everything with butter. Hands down, even today, it is still remembered as one of the best marketing campaigns.

Decoding the whole Supply chain 

One of the main and biggest reasons for Amul’s success was that they managed the whole supply chain of milk production so efficiently. Starting from the pooling of milk from various small dairy farmers to supplying it to the end consumer. Amul follows a three-tier cooperative structure which consists of a dairy cooperative society at the village level that is affiliated with milk unions at the district level, which in turn is federated to a milk federation at the state level. Milk is collected at the village dairy society, procured and processed at the district milk union and marketed at the state milk federation.

Constant innovation

Today Amul has over 2000+ products under its brand name. Started just as a milk cooperative is today the biggest gaint in the milk and dairy product segment. And it’s not just about its product line but also its marketing campaigns and strategies. Their most recent social media campaign #BEMOREMILK is gaining popularity immensely. 

Diversification

With daily constant efforts, Amul managed to carter every dairy-related segment. Making products for the needs of the kids, men, women, health conscious & taste conscious. You name it & they have it.  Through consistent efforts, Amul has managed to have a diversified portfolio in terms of products & it is very hard for any new player to enter the market.

Trust building

By delivering the best quality products at low rates, Amul has built trust and brand loyalty among its target market. Also, a fact to notice is that Amul was the first company to offer condensed milk at affordable prices and made a significant mark among the lower-income group. 

Business model of Amul

So Amul follows a three-tier business model to provide milk to us. The first tier is the village dairy cooperative society, next is the district milk unions & then there is the state milk federation. 

Village Dairy Cooperative Society

This is the lower and the first tier of the business model of Amul. Here, local daily farmers come and pool their milk. Depending upon the quality of milk, it is segregated and accordingly is supplied ahead to the next tier i.e. district Milk unions.

District milk unions

The milk is then brought to the district milk union centres for processing and packaging. Here the quality of the milk is checked and tested, whether it is fit to be delivered to the market or not. Then the milk is graded depending on its properties like fat concentration, water concentration, nutritional value etc. 

State milk federation 

This is the last and the final stage of milk production. Here, the packaged milk arrives, which is distributed to the suppliers for supplying it to the retailers. Here the manufacturing of the other dairy products takes place. And the final product is delivered to the market.

4P’s of Amul Marketing Strategy

Product Mix 

Amul offers a wide range of products to its customers making it a trustworthy brand among consumers. The cheese and the ice cream segment of the amul are their cash cows. Contributing a significant share in the revenue of the business. Also Amul Ice Cream is among the top 10 ice cream brands in India. Recently amul has also entered the chocolates and lactose-free dairy product segment to cater for the needs of the changing India. 

The pricing strategies of Amul include a combination of competitive and low-cost pricing. Amul began with the vision to provide the best quality dairy products at affordable prices. The pricing of different products is taken into account by different factors such as the price of raw materials, labour cost, farmer’s profit, transportation cost and storage costs. Amul is pursuing a low-cost strategy for products commonly used like milk, ghee, butter and so on, where they offer these products at a lower price than their competitors. For products like Amulspray, Prolite, condensed milk and more the company adheres to a competitive pricing strategy, where the price of these products is similar to their competitors.

Promotion Mix

Amul is one of the few cooperatives that consistently deliver memorable brand promotions to the audience leaving a long-lasting impact. Like the world-famous Amul girl designed by Mr. Eustace Fernandes or the jingles like utterly buttery delicious Amul! And their iconic tagline the taste of India. The way Amul incorporates the humour of the cartoons in delivering heartfelt messages is commendable. 

Their recent cartoon tweet to celebrate the success of Pathan a Shah Rukh film was also catchy.

Amul distribution channel takes place through 2 mediums. First is the procurement of the milk. Farmers provide milk to cooperatives, and milk is gathered in bulk and transported to the processing plant. That milk is used to produce the final goods at the production plant. The second channel is In charge of getting the finished product to the end-users. ​​Carrying and forwarding agencies, distributors, dealers, and retailers are all part of the distribution chain.

Read this also – Are ETFs good for beginner investors?

FAQs (Frequently Asked Questions)

• What is the full form of AMUL?

AMUL stands for Anand Milk Union Limited.

• Who is the owner of Amul?

Amul is cooperative and is not owned by any single person.

• Which state is associated with Amul?

Amul is a cooperative in association with the Gujarat Government.

• Is Amul an Indian Brand?

Yes, Amul is an Indian brand.

• How many products does Amul have?

Amul has roughly 2,000 products under its brand name.

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Amul Dairy Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Amul Dairy

Amul Dairy Case Solution

CASE OVERVIEW

Amul was founded in 1946 in Gujrat State India. The company was established with an aim to end the exploitation of powerful local trade associations that were involved in manipulating milk prices. Amul has set up itself as a model for development in rural areas of India and empower the local milk producers that attributed Amul’s success. Amul became a leader in various Indian markets for dairy products. The company’s mission revolved around making milk available to every corner of the country. Amul was operated under its own developed cooperative model that was a three-tier structure and comprised of Village Cooperative societies, district-level diary unions, and state-level federations. Amul’s cooperative model was helpful in maintaining the prices of milk by cutting out middlemen

However, despite the success and recognition, the company was facing challenges regarding its future positioning, as the changes were occurring in demand and demographics of India. The Managing Director of Amul Rahul Kumar was also concerned about the new technological advancements, foreign competition, and a global system.

Company’s Current Strategy

The  overall strategy of the company was to maintain the prices of milk and related products and to preserve the natural nutrition of the milk related products. Furthermore, the company was also concerned about the well-being of farmers and emphasized on the financial, educational, and societal needs of small and landless farmers. Amul was focused to make its products available to every corner of the country. The major products of the company that adds value in its offering are milk related products, butter, cheese, baby food, high protein weaning food, chocolate, malted milk food and wide variety of other dairy products.

Problem Statement

Despite the market leadership position and the success, the company was facing several challenges that required immediate resolution. The shifts in Indian demographic and demand became difficult to fulfill; therefore, in order to address this situation, the company was required to strengthen its cooperative system upon which it operates. Moreover, the competition was also high within the industry due to the increase in demand of milk and dairy products in India, which has opened the doors of the market for many influential players in the market. Apart from domestic players, many multinational players also attempted to enter the market and to acquire the market share of Amul, such as Nestle. In addition, the Indian farmers were lagging behind the farmer in other developed country with regards to technology and education. Therefore, the management of the company was concerned about the future positioning of the firm, which was under the threat. The company required to act immediately in order to address these issues, so as to maintain the firm’s competitive position.

SWOT ANALYSIS

In order to analyze the firm’s external situation, threats and opportunities will be identified first. Then the internal situation will be analyzed, which includes strength and weaknesses of the company. (Valentin, 2005 )

OPPORTUNITIES

Several opportunities that have been identified that can be used to provide benefits to the firm. To address the challenge of competition, the company can use its existing brand positioning, market leadership position, high quality, and low prices to strengthen its customer loyalty. Moreover, the company can also exploit international market opportunities through mergers and acquisitions, which would help it in accessing foreign markets. In this way, the company can expand its business in international markets. Furthermore, the company can also maintain its market share by keeping the prices low....................

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A Case Study of Amul: The Taste of India!

Post Highlight

India's "White Revolution," which was sparked by Amul, making the country the top producer of milk and dairy products in the world. Tribhuvandas Patel established Amul under the guidance of Sardar Vallabhbhai Patel, India's first deputy prime minister.

Then, in 1946, the Kaira District Milk Union Limited was created. The group was led by Tribhuvandas till his death in the 1970s. In 1949, he spoke with Dr. Verghese Kurien and convinced him to support the White Revolution's goals. Most people agree that Dr. Verghese Kurien founded Amul.

Utterly, butterly, delicious! Yes, you guessed it right this blog does a case study of Amul . Amul has made India the largest milk producer in the world! It gives us everything from milk to delicious milk products! So it is only fair that we must know about this great success story! #TWN

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Utterly Butterly Delicious, Amul! How can we forget this vivacious Amul girl on every Amul Butter pack? She has her witty take on every event taking place in India! And don't we all love it! Over the years, Amul has made a place in our hearts with its top-quality dairy products and unique marketing strategy! Amul Milk, Amul Butter, Amul Cheese, cream, chocolates, and Ice creams fill you with a blissful joy! It has become a trustworthy brand, and today you do not think twice before buying an Amul Product! But as gold has to burn in the fire before becoming gold, Amul, too, had to face many challenges before becoming the favorite dairy brand of India! Many people like Mr. Varghese Kurien have put in their sincere efforts to give Amul the place where it is today. We will read about it in the case study of Amul.

Amul Case Study: History!

Amul Milk Union Limited or Amul India got established on 19 December 1946 in the town of Anand in Gujarat in India. It was a move against the brokers and agents who arbitrarily determined the milk prices and exploited the milk producers. It was the time when Polson, another dairy company, was dominating the business! It established its first dairy in Anand in 1930. The government had given the company control in the work of collecting milk from Kaira and supplying it to Mumbai and its sub-areas. Polson brought the milk at low rates from the farmers! These unfair trade practices made the farmers very angry! 

The angry farmers went to their local leader Shri. Tribhuvandas Patel . Together they approached Sardar Vallabh Bhai Patel. He was a Congress leader and freedom fighter. Sardar Patel was already aware of the matter. In the year 1942, he had also pointed out the ulterior motives of Polson and the British government in a letter to Maganbhai Patel , who was a bureaucrat and well-wisher of the farmers. Sardar Patel advised the farmers to set up a cooperative (Kaira District Co-operative Milk Producers Union) and supply milk directly to the Mumbai milk division, not Polson. He asked Morarji Desai, another Congressmen and freedom fighter, to organize the milk farmers. 

The cooperative was further established and led by Dr. Verghese Kurien and H.M. Dalaya. Dalaya's ingenuity of creating skimmed milk powder using buffalo's milk, for the very first time and later putting it into commercial scale with Kurien's assistance created an early modern-day dairy in the cooperative in Anand (Gujarat). It was in competition with the most existing market leaders .

Within a short time and a short time, the good fortune at the dairy cooperative expanded to the neighborhood of Anand's in Gujarat. In the end, five unions from different districts such as Mehsana, Banaskantha, Baroda, Sabarkantha, and Surat were established following the method that is sometimes called the Anand pattern.

In the year 1970 in the year 1970, White Revolution of India started. In 1973 in 1973, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) is an apex marketing body for District Cooperatives (DCOs), was put in order to unite forces and increase market share while also reducing the cost of advertising and keeping out internal competition. Kaira Union, which was formerly known as the Kaira Union, which had the brand name Amul along with it from 1955 was able to transfer this name onto GCMMF.

Also Read:   Case Study A Detailed Marketing Brief Ideas For Sustainable Product

In 1946, the milk farmers of that area went on strike. It prompted them to set up a cooperative to collect and process milk. Milk collection was decentralized because many farmers could give only 1 to 2 liters per day. On 31st October 1964, Prime Minister Lal Bahadur Shastri inaugurated the Amul Cattle Feed Factory. While returning, he was very impressed by the Kaira cooperative. He announced the development of the National Dairy Development Board (NDDB) in other parts of India. 

Dr. Kurien: The Milkman of India!

Tribhuvan Kishibhai Patel became the founding chairman of the organization. He was also assisted by HM Dalaya, who invented Skimmed Milk which brought a revolution in the milk Industry. In 1949, Patel met Dr. Varghese Kurien, a dairy engineer who had come to Anand to serve the bond duration against the government scholarship he had attained. Dr. Kurien is known as the Father of the White Revolution in India. Sometimes he is fondly referred to as the Milk Man of India. Patel asked him to stay with him and help him. Dr. Kurien pioneered the development of Anand and many cooperatives in the Kheda district. He also had a big role in eliminating the exploitation of the milk farmers and helping them to get the justified rates for the milk supply.

How Amul became Amul!

Today, the name Amul needs no introduction, and here too, Dr. Kurien has a contribution. Initially, the butter from Kaira cooperative was just simple, but they had to give a name to it. So as Dr. Kurien narrates, the marketing unit thought of many names. Then they came across Anand Milk Union Limited (Amul). In Sanskrit also, ‘Amulya’ means ‘priceless,’ but his marketing specialists were doubtful as it is an Indian name and would not sell. But Dr.Kurien was sure, and he decided upon it. So Amul became Amul, and we all love it!

White Revolution and Amul!

The joint efforts of Patel, Dalaya, and Kurien led to the development of the National Dairy Development Board (NDDB) in 1965. The Prime Minister named Dr.Varghese Kurien as its founding Chairman. And this spread a wave of milk across India. Many cooperatives were set up in Gujarat itself! On January 13, 1970, Operation Flood was launched. It became the largest dairy development program in the world! Its main aim was to imitate the Anand model in all parts of India. As a result, we got about 0.1 million cooperatives and 5 million milk farmers. 

Dr. Kurien developed other dairy products also, like powdered milk . He focussed on improving the health of cattle and vaccine development. In 1973, he created an individual marketing unit of Amul, Gujarat Cooperative Milk Marketing Federation, in order to promote the brand in India and Abroad. He is also the man behind the foundation of IRMA (Institute of Rural Management Anand), as he wanted future generations to benefit from the knowledge. No wonder the government showered him with several awards like Padma Shri, Padma Vibhushan, and Krushi Ratna.  

Amul Business Model and Organizational Structure

Amul follows a unique course of action that involves "esteem for cash" products are offered to purchasers in exchange for the cost of premiums (as the owner) of the farmers who produce milk who supply it. Since milk is a perishable product, the rancher might be in danger of losing it in the event that it's not sold prior to the contract is completed.

The structure of the Organization

The model of cooperatives used by Amul was later referred to as the " Anand style " cooperative framework. It is a three-level system that includes town social orders and regional-level dairy associations as well as a state-level organization. Each level is financially unaffected of the other levels and consists of agents chosen from the levels below it.

It's fairly easy to comprehend. If one member does not have enough money to fund the capital needed for the company, the other members with the same goals combine their resources to form a larger organization that is able to raise significant capital. A cooperative structure is extremely beneficial as it guarantees trust in the company's reputation. Banks too prefer lending money to cooperative enterprises instead of individual owners. Presently, Amul constitutes 30 Lakh farmers across India.

A three-tier Model of Amul

Amul is an amazing organization that is simple and yet awe. It operates on a three-step method which ensures that each body performs its function efficiently. The three tiers are:

Village Dairy Cooperative Society Every manufacturer is a member of the cooperative village which is a manufacturer's community.

District Milk Unions -Village Dairy Cooperative Society members elect their representatives which collectively forms the District Milk Union.

State Milk Federation- The State Milk Federation is responsible for the distribution and sale of milk products on the market.

  Also Read:  How To Create A Socially Responsible Business Model

Conclusion Today, Amul has about 15 million milk farmers supplying milk in 1,44,246 cooperatives across the nation. The learnings from Amul Case Study signify that the combined efforts of these people are the foundation of the astounding success enjoyed by Amul. We are proud of this brand! Dr.Kurien and Tribhuvan Patel will always be remembered for helping India flow with strength and energy! This case study on Amul will make you question the white revolution and how Amul capitalized on the opportunity.

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Business Case Study: Amul's Strategy during the Pandemic

Amul - how amul beat its competition & made rs.39,200 cr during the 2020 pandemic.

24th March 2020 , on this day PM Modi declared a nationwide lockdown because of pandemics. In addition to that, a nightmare came with it, for which our nation was not prepared. Millions of people, especially laborers and daily wage workers lost their jobs. The lockdown costed the Indian economy more than 10 lakh crores. Many billion-dollar industries came into a dilemma. One such industry was the dairy industry. The impact was so heavy that it costed the milk producers of India more than 112.3 crores of rupees every day.

But one legendary company, which every Indian child knows was so strategically able to navigate the situation. They did not only minimize their losses but they even increased their revenue by almost 700 crores. the brand we are talking about here is none other than Anand Milk Union Limited , which we also know as AMUL.

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Anand Milk Union Limited, popularly known as Amul is a cooperative society based in Anand, Gujarat in India. The company was started with the motive of providing welfare to the farmers and in the process, it went on to establish itself as one of the most successful brands in India. Dr Verghese Kurein, who is known as the “Milkman of India”, was responsible for turning India from a milk deficient country to the largest producer of milk in the world today in which Amul has played a key role.

We all know that it has been in the market for so long now, and it also has acclaimed itself a position in the market. But we need to take a look at its magnificent business strategies. One such example can be seen from how Amul reacted to nationwide lockdown and COVID-19. It has done an astounding job during Covid-19. While in 2020, where the rest of the companies were fighting to keep their supply chain going, AMUL launched 33 new products in the market and got hold of additional 35 lakh liters of milk every day. And even paid Rs.800 crores extra to rural milk produces of India.

Now the question arises, what were the business strategies that made AMUL manage to achieve such an incredible height in business in difficult times? What are the business strategies lessons that we need to learn from them?

And the answer lies within the extraordinary supply chain management of AMUL. So, when the lockdown was announced, the dairy industry was allowed to operate with certain restrictions because milk is also an essential food. But as soon as the lockdown was declared, several businesses either cut down or shut their businesses. This resulted in the loss of demand in the dairy industry.

Because 20% of the revenue of the dairy industry came from hotels, catering businesses, and restaurants for the organized dairy sector. As a consequence, of this, AMUL also saw a drop of almost 12% in its demand. When the dairy company saw this massive fall in demand, they quickly pulled down the milk procurement, decreased their logistics, and slowed down their production up to a large extent. As an outcome of this, many farmers were left in a helpless state. Many workers such as truck drivers and factory workers lost their daily bread because less milk meant less operation of factories which means less transportation of milk. But when most of the dairy industry was preparing for a loss in demand, AMUL on the contrary prepared for a surge in demand.

Change in Consumer Behavior

Now the question arises again when it was clearly visible that there was a major decline in demand from the restaurant and the hotels that account for 20% of the revenue. Why was AMUL preparing for a surge in demand, isn’t it like taking a risk of 1000 crores?

Well, AMUL intelligently played, there was one important factor that many few people took in notice, which is a change in consumer’s behavior . Although there was no demand from restaurants and hotels, but the consumption of milk products in houses took a massive shoot up as more and more people began to stay at home. And this also gave rise to the homemade food trend. The demand for both groceries and milk products skyrocketed.

Secondly, because of the pandemic, people became more health-conscious and moved on from buying loose milk to packaged milk. While other companies misjudged consumer demand and started decreasing their supplies, Mr. R. S. Sodhi, Managing Director of AMUL insisted that they should keep the supply chain running at full capacity.

Despite the closures of restaurants, as of May 2020, during the peak of lockdown times, the demand for milk-based products took a massive shoot up. Milk products like cheese increased by almost 80%, demand for cottage cheese increased by 40%, and demand for condensed milk almost doubled. Despite running at its full capacity of 115%, the demands were so massive that they had to hire other plants from other companies that were lying vacant. Except for ice creams, all their plants were running at full capacity throughout the lockdown. They also realized that moving of trucks through the country would be very difficult because of the shortage of labor and the lockdown restrictions. They started using railways for the transportation of products quickly throughout the country.

Strategic Partnerships

Now, considering the vast supply chain of AMUL, i.e., 18,700 societies, 5000 milk tankers which go up to 200 chilling stations, 10,000 distributors, 1 million retailers, and most importantly more than 3.6 million farmers . The question arises that how did they manage to coordinate with their huge supply chain and manage their resources properly?

Well, the answer lies in a strategic partnership that was established between AMUL and IBM in 2009 wherein AMUL invested a hefty amount of 80 crores transforming the information technology landscape of the company. Now what they meant is that IBM would develop a full-fledged digital system and it would track every small detail of operation that is being carried out in the supply chain of AMUL. And just like Amazon, IBM could tell you how many plants are working at full capacity, how many trucks are engaged, and in which areas. Most importantly, it also tells you when and how many trucks or plants are at idle capacity so that they can divert the workload to them to make optimum utilization of every element of the supply chain.

This system turned out to be a game-changer for AMUL during the lockdown. Because on the one side, the supply chain of milk was overloaded, ice cream and frozen foods of the business were shut down. Therefore, labors, storage, trucks were lying at idle capacity at the end of the frozen industry. But due to the IBM system, the AMUL team was able to accurately oversee the entire operation of the supply chain. And this end-to-end digitalization gave them so much clarity about their operations that AMUL was even able to provide incentives to the ground staff. The casual workers were given 100-125 rupees incentives. And for the workers, food and stay arrangement were made, so that they don’t get sick and affected by covid.

When they realized that the cattle feed was not sufficient to meet the needs. AMUL even made extra arrangements for cattle feeds for farmers. All of this made the supply chain so effective that, while the rest of the dairy industry was completely shut down, AMUL procured 3.5 million liters of milk every day and even paid 800 crores of rupees extra to rural milk producers of India.

AMUL even used third part e-commerce sites like Flipkart, Big Basket, Dunzo and even started prompting deals with Swiggy and Zomato to sell butter, milkshake, and paneer. According to Mr. R. S. Sodhi, managing director of AMUL , they got more than 60,000 orders through Zomato and they sold AMUL products of almost 3 crores in more than 200 cities.

Now moving on to the last part of Amul's strategy, i.e., the huge investment of AMUL into marketing . Now when other brands were decreasing down their advertisements, AMUL on the contrary increased its advertisements volumes by 316% compared to 2019 . Their ads were so aggressive that they were viewed 10 times more than the IPL itself. Yes, you read right, the Amul ads were so popular that they crossed all the barricades of TRP.

When Door darshan started broadcasting the epic Ramayana and Mahabharata during the lockdown. AMUL started running their old ads to resonate with the nostalgic moods of the audience creating an even better impact on the audience’s mind. Then even made immunity-boosting products they never went overboard with any kind of ridiculous covid claims.

This is how using an extraordinary foresight of consumer behavior through an agile supply chain management system. So, using digital transformation, third party collaboration, incentivizing of labor, and through strategic marketing initiatives. Anand Milk Union Limited, i.e., AMUL established a benchmark for crisis management for dairy companies from all across the world to follow.

Important Business Lessons

This brings us to the most important part of this case study, i.e., what are the lessons that we need to learn in order become an extraordinary business leader,

While good leaders prepare to face risk, great leaders prepare to embrace them with open arms.

No matter how big your organization is, resourcefulness is one attribute that will always save you during crisis.

The only question is how to build such an agile system, in this case, it was Amul's futuristic investment of Rs. 80 crores into the IBM system that helped them operate such a huge supply chain in such an optimized manner.

Always remember during such a crisis, either choose to see it as an obstacle or you can see it as a golden opportunity to get ahead of your competitors.

This is how AMUL became an opportunist during times of crisis and established a benchmark from brands, all across the world to learn from.

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AMUL- THE TASTE OF INDIA- by Dr. Jyoti Yadav

Published: 28th Dec, 2018

AMUL means "priceless" and derives its name from Sanskrit word ‘Amoolya’. The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channelled towards economic prosperity.

Amul began the dairy cooperative movement in India and formed an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.2 million milk producers in Gujarat, India.

It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India one of the largest milk producers in the world.

Dr. Verghese Kurien, founder chairman of Gujarat cooperative milk marketing federation, is the man behind the success of AMUL.

HOW IT ALL STARTED:

Over five decades ago, the life of an average farmer in Kheda District was precarious. Their income came almost entirely from seasonal crops as income from milk was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. Milk being perishable, farmers were compelled to sell it for throwaway prices.  

Amul was the result of the realization that they could pool up their milk and work as a cooperative, the Gujarat Cooperative Milk Marketing Federation (GCMMF) in the village of Anand.

FOCUS AREAS:

• Low-cost price strategy to make its products affordable and attractive to consumers, guaranteeing them value for money.
• Maintaining balance between supply and demand, effective management of the network, and focus on commercial viability.
• Retaining their focus on farmers and forming a strong and healthy supply chain.
• Catchy advertisement through tongue-in-cheek sketches featuring amul baby, with the equally recognizable tagline Utterly Butterly Delicious Amul .

For the purposes above, a hierarchical network of cooperatives was developed. The vast and complex supply chain stretches from small suppliers to large fragmented markets.

INITIATIVES BY AMUL:

• One of the first examples of e-commerce activity in India: - In 1990s, Amul was one of the first major organizations in India to have a website which has been used both to develop an intranet of Amul distributors as well as a cyber-store for consumers.
• Focus on Total Quality Management (TQM) following the trends of liberalization and impact of WTO. Amul extended the TQM initiatives to its business partners, whether it was the farmer producer in the village or a wholesale distributor in a metro town, helping in integration of its business linkages at the village level to the forward linkage.

INNOVATION AT GRASS ROOTS:

• A unique initiative called the Internet Sewa Project in the district called Banaskantha. This is a village-level effort at bridging the Digital Divide by providing information kiosks at the Village Cooperative level.
• Awareness created by GCMMF through movie- MANTHAN, theme of which is the churning up of the social structure when the milk cooperative movement erodes the power of traditional bosses in a village.
• Social Awareness programs through works of Amul Relief Trust like school education, earthquake relief works, etc.

LESSONS FROM AMUL:

• Importance of cooperative societies towards farmer and women emancipation along with social upliftment of the weaker sections of the society.
• Emulation of the concept in other areas like Farmer Producer Organization (FPO) for increasing the bargaining power of farmers in the market and increasing their access to the quality inputs.
• Sense of ownership and belongingness among the participants for success of an organization or a program, eg. Swachh Bharat Abhiyan, Self Help Groups, etc.
• Importance of organizational democracy, positive work culture, and focus on quality management and end-customers for long-term growth and development of an organization.
• Importance of up-dation with time and adoption of latest technology for staying relevant in the field.
• Value of the Corporate Social Responsibility (CSR)

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GS SCORE, Plot No.2298, Jaydev Vihar Square, Near HCG Day Care, BBSR - 751013

LUCKNOW (Aliganj)

GS SCORE, 2nd Floor, B-33, Sangam Chauraha, Sector H, Aliganj, Lucknow, UP - 226024

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