Amul is a dairy company in India based in Anand, Gujarat. This organization is unique in the sense that it was formed by a cooperative federation in the Gujarat district in retaliation to the monopoly of Polson Dairy. The movement for the formation of the cooperative was led by Tribhuvandas Patel in 1946. Today the cooperative has more than 3.6 million milk suppliers who jointly own the cooperative. The cooperative also has 752 employees involved in marketing and administrative functions (Amul, 2019). The company markets milk, yogurt, ice cream, butter, and various other products (The Hindu, 2011). The company has continued to expand and adopt the latest technologies to gain further market share. The company collects an average of 23 million liters of milk per day and expects the demand to grow in the coming years (Amul, 2019). The company also exports its products to various nations after they are treated and packaged in Tetra Pak. In 2018, Amul generated sales of $4.8 billion (Amul, 2019).
Following are the four dimensions of the Ansoff Matrix for Amul:
Market Penetration
Amul uses this strategy by promoting existing products in its existing markets. For Amul, this means motivating more consumers to purchase its products in the markets it is already serving. The first strategy the company adopts is increasing the number of retail stores it has that sell its products. It also ensures that all stores have complete product stocks so that all products can be sold. The stores are selected strategically in high traffic areas to ensure greater sales. The company is also forming strategic alliances with large retailers to dedicate shelves for the products of Amul e.g. with Wal Mart. Smaller retail stores are also being opened in neighborhoods to serve small consumers. The company also offers products in various packaging to meet the needs of diverse consumers. Amul also aggressively markets its products to highlight the benefits they have to offer. By doing so, the company is attracting new consumers and motivating existing consumers to increase their consumption to increase company sales.
Market Development
Promoting existing products in new markets is market development. The products already being marketed are sold to new market segments or new markets. Amul is doing this by increasing the number of stores in rural areas to serve rural consumers. It is also expanding out of Gujarat into Lucknow, Kanpur, and various other smaller towns to geographically expand its markets (Samad, 2012). Amul Taaza has been launched which is milk that has a longer shelf life than traditional Tetra Pak milk. On the international level, it is also expanding into the Middle East and Southeast Asian markets to promote its products. The company also alters its packaging sizes to match the needs of regional consumers rather than serving standard packaging sizes.
Product Development
Amul is renowned for product development by launching new products in its existing markets. It has improved its existing products in terms of quality and shelf life. Their packaging is also improved regularly. The company has also launched sugar-free ice cream and other desserts for diabetic patients. It has also launched Amul Cool and other drinks that are targeting the younger segment of the market. New ice cream flavors are also launched regularly. This shows that Amul has excellent product research and development system that allows it to create new products. The new products are then advertised through various channels. The company also has introduced various chocolate, butter-milk, lassi, and other product variants. All of these new products are helping increase market share and sales of Amul.
Diversification
Amul has an excellent diversification strategy as well. It does related diversification by expanding into new dairy products such as healthy ice cream, cooking chocolate, and lassi (Samad, 2012). It also does unrelated diversification by launching its energy drink Stamina and working on launching a pizza parlor chain. The company also produces various confectionery products for the international markets it serves. The company already manages its entire supply chain. It can diversify vertically backward by developing its own cattle farms rather than collecting milk from different members. All of these diversification factors are possible due to the strong brand name and excellent financial status of the company. The efforts have helped increase sales.
References
Amul, 2019. https://amul.com/m/organisation. [Online] Available at: https://amul.com/m/organisation [Accessed 30 Dec. 2019].
Samad, S., 2012. Amul b12. [Online] Available at: https://www.slideshare.net/sabirsamad/amul-b12 [Accessed 30 Dec. 2019].
The Hindu, 2011. Punch guru. [Online] Available at: https://www.thehindu.com/todays-paper/tp-features/tp-metroplus/punch-guru/article2280125.ece [Accessed 30 Dec. 2019].