Marketing Mix of Amul Butter and 4Ps (Updated 2023)

The Marketing mix of Amul Butter analyses the 4Ps of Amul Butter, including the Product, Price, Place, and Promotions. Amul is an Indian cooperative company that deals in dairy products like milk, butter, cheese, curds, etc. Dr. Verghese Kurien formed this Company in 1946, and it has its headquarters in Anand, Gujarat. Presently, the “Gujarat Cooperative Milk Marketing Federation Ltd” (GCMMF) manages the corporation, and the Company is also co-owned by at least three million people who are milk producers. Amul has become the number one brand in India in terms of milk and milk products, and some of its competitors are as follows-

• Mother Dairy
• Britannia

About Amul Butter

• Type: Dairy Company
• Industry: Dairy products
• Founded: 1946,
• Founder: Sardar Vallabhbhai Patel
• Headquarters: Anand, Gujarat, India
• Area served: India
• Key people: AShamalbhai B Patel, Chairman, and Jayant Patel, Chief Executive Officer
• Number of employees: Over 3.6 million

Amul Butter Product Strategy

The brand name of Amul Milk has many milk products under its wings, like milk, cheese, and sports drinks, but the most common and popular product is “Amul Butter’. It was the first dairy product under the brand name, and today, it occupies 86% of the total market share. Every generation has been raised on Amul Butter in the last six decades, making it a household product. Amul became the first Company to market butter in an international package. Made from butter, permitted natural color, and common salt, Amul Butter is available in packs of 20gm, 100gm, 50gm, 500gm, and 10gm. For calorie-conscious people, Amul milk has introduced Amul Lite Butter, which has low cholesterol and low fats and includes vegetable oils and CLA that help to reduce the body fats. It is available in packs of 200gm, 100gm, and 500gm.

The product marketing strategy the mix, of Amul Butter, one of the flagship products of Amul, encompasses a variety of offerings catering to different consumer needs and preferences.

The new Product Mix of Amul Butter in 2023 is as follows (Source).

1. Regular Amul Butter: This is the classic, widely recognized Amul butter with its distinct taste and creamy texture. It’s available in various sizes, from small packs suitable for individual consumers to larger packs for families or catering services.
2. Low Fat Butter: Targeted towards health-conscious consumers, this variant offers the same rich taste but lower fat content, catering to those monitoring their calorie intake.
3. Garlic and Herbs Butter: Infused with the flavors of garlic and herbs, this variant is aimed at consumers looking for a flavorful addition to their cooking, baking, or as a spread.
4. Unsalted Butter: Ideal for baking and cooking purposes where control over the salt content is necessary. This variant appeals to those who prefer or require low-sodium diets.
5. Spreadable Butter: This variant is formulated to be more spreadable from the refrigerator. It provides convenience for users who want to spread butter on bread or toast without waiting to soften.
6. Culinary Butter: Specifically designed for chefs and culinary experts, this range might include larger pack sizes and different formulations suited for professional cooking and baking.

Each marketing mix of amul butter in these variants is designed to meet specific consumer preferences, dietary needs, or cooking requirements for quality products, broadening Amul Butter’s appeal across various market segments.

Amul Butter Place Strategy

Amul has spread its network all over India, from the remotest village to a metro city and later to the overseas market. The “Amul Model” network is based on a ‘Three-tier Cooperative’ structure. Under this, the dairy cooperative society is at the village level. The milk union is affiliated with the society at the district level, and this, in turn, is the state-level federation. The collection of milk is the responsibility of village society, the procurement and the stage of processing of the district milk union, and the marketing of products like butter is the work of the state federation.

Presently, Amul has one hundred and seventy-six dairy unions that include 1,25,000 societies of cooperatives with a membership of nearly thirteen million farmers. The Company has processing plants that number more than one hundred and ninety. The network for distribution includes more than fifty sales offices, five thousand wholesalers, and seven lakh retailers retail outlets spread in every nook and corner of the country. Amul is one of the leading brands of dairy products in India that has successful networks in more than forty countries across the globe, such as the West Indies, USA, Singapore, SAARC Countries, Australia, and Mauritius.

Here’s Amul Butter’s place strategy.

1. Nationwide Retail Distribution: Amul Butter is widely available across India through a comprehensive network of retailers, ranging from small local shops to supermarkets, ensuring the product is easily accessible to most of the population.
2. Exclusive Amul Outlets: There are exclusive Amul outlets known as ‘Amul Parlours,’ which are dedicated to selling various Amul products, including Amul Butter. These outlets are strategically located in urban and semi-urban areas, providing a focused brand experience.
3. Modern Trade and E-commerce Platforms: Amul Butter is also available in modern trade outlets like malls and large departmental stores, as well as on e-commerce platforms, catering to the convenience of urban consumers and ensuring availability in online grocery markets.
4. Institutional Sales: Amul Butter is supplied in bulk to various institutions like hotels, restaurants, and catering services, which require large quantities of butter. This channel helps capture a large-volume segment of the market.
5. International Market Presence: Amul has expanded its reach to international markets, exporting Amul Butter to various countries. This global presence caters to the Indian diaspora and local consumers abroad, expanding the brand’s footprint beyond India.

Amul Butter Pricing Strategy

Amul has adopted a fair pricing policy because its customers belong to every section of society. The Company has proposed a reasonable pricing policy. The exceptional quality of Amul Butter and Amul Lite and their rational prices have helped the Amul brand maintain its loyal customers over the last six decades. The prices are derived after evaluating milk costs, processing, labor, transportation, sales, marketing mix promotion, and taxes.

Even a market analysis of the competitors’ products and prices is done so that an average estimate can be arrived at. All these factors help determine the competitive advantage and actual sales price of Amul Butter. GCMMF decides on the actual prices of the products, and they have adopted the low-cost pricing policy to get a competitive advantage and make the products affordable to all consumers.

Amul Butter’s pricing and marketing strategy also reflects a keen understanding of its market dynamics, consumer preferences, and competitive landscape. Here’s an expert breakdown of the amul model and its key pricing approaches:

1. Market Penetration Pricing: Initially, Amul Butter adopted a market penetration pricing strategy to establish itself in the market. By setting prices lower than competitors, Amul quickly gained a significant market share, appealing to a broad consumer base in India.
2. Value-Based Pricing: Amul Butter’s pricing aligns with the perceived value it offers – high quality, great taste, and brand reliability. This value-based pricing ensures that consumers feel they are getting excellent quality for the price they pay, solidifying brand loyalty.
3. Competitive Pricing: Amul maintains competitive pricing in a market with several butter brands. This strategy ensures that Amul Butter remains an attractive choice for consumers, balancing quality and affordability compared to other brands.
4. Skimming Strategy for New Variants: For new variants like Garlic and Herbs Butter or Low-Fat Butter, Amul may initially adopt a price skimming strategy, setting higher prices to target niche markets or health-conscious consumers before gradually lowering prices as these products gain market acceptance.
5. Psychological Pricing: To make the product appear more affordable, Amul often uses psychological pricing strategies, like pricing just below a round number (e.g., ?99 instead of ?100). This tactic is particularly effective in price-sensitive markets.
6. Dynamic Pricing for Raw Material Fluctuations: The cost of raw materials (like milk) can fluctuate since butter is a dairy product. Amul might adjust its prices in response to these fluctuations to maintain profitability while still offering competitive pricing.
7. Economy of Scale Savings: As Amul operates on a large scale, it benefits from economies of scale, which allows it to produce butter at a lower cost per unit. These savings can be passed on to consumers, enabling competitive pricing without compromising quality.

Amul Butter Promotion Strategy

Amul Butter has always made advertisements for leading brands that are innovative as well as fresh. The ads are not limited to a particular media but have been broadcast on all types like the outdoor media, including billboards and hoardings; the broadcasting media is the television; the print media, including magazines and newspapers, various portals and websites on the internet, even the social internet sites like Facebook and Twitter. Promotional activities are also organized at various events to promote the Amul brand name and its products.

The Amul mascot is a young girl wearing a red colored polka dot dress and singing the jingle “utterly, utterly, delicious…..Amul“. Since 1967, the mascot has remained unchanged because it has become synonymous with the taste of India and the brand name. Its Tagline is “The taste of amul lite, of Indi.”. Amul food festivals are organized at different retail outlets where the participants are encouraged to participate in the contest by making recipes with the help of Amul products. The winner is given vouchers for Amul products as well as cash Prices. The Company has also sponsored many TV shows like Amul Star Voice of India and Amul Music Ka Maha Mukabla. All the promotions are emotionally stirring and, therefore, have made waves in everybody’s hearts.

Some Recent Video ads and Print ads for Amul Butter are:

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