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April 04, 2017 @ 01:15 PM

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K. J. Somaiya Institute of Management Studies and Research, Mumbai

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Brand article | Amul

Published: Wednesday, 08 June, 2016 10:15 AM


Management Gurus have always opined that Brand will be born and dying during Brand life cycles and will need push for their sustainability.

One of the first Indian brands to have won over the hearts of the common people of the country is Amul, an Indian dairy cooperative. The journey of the brand from its humble beginnings in Anand, Gujarat to becoming one of the world’s largest dairy company is nothing short of remarkable and involves the common man of India.

1. Beginnings

The idea of a dairy cooperative emerged in 1946 in a small town, Anand, in Gujarat as a protest against the exploitative trade practices followed by the local cartel by the local farmers. Under the guidance of leaders such as Sardar Patel, Morarji Desai and Tribhuvandas Patel, the farmers of the area formed the Kaira District Co-operative Milk Producers Union Ltd with just two village dairy co-operative societies and 247 litres of milk. It acquired the name of Amul and is managed by a cooperative society, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). Dr Verghese Kurien, founder chairman of the GCMMF for more than 30 years and called the ‘Milkman of India’ is credited with the success of Amul.

2. White Revolution

Amul spurred India’s White Revolution. India was a milk-deficient country but after the launch of Operation Flood in 1970, a project under the National Dairy Development Board (itself formed to replicate the model of Amul throughout the country), India raised its milk production from 17 million tons in 1950-51 to 88 million tons in 2002-03.

3. Model

Amul developed a highly successful three-tiered model which eliminated middlemen and linked the producers with the consumers directly. The model comprises the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. The milk is collected at village dairy society, is procured and processed at the District Milk Union and the products marketing at the state milk federation, finally consumed by the consumer. This system runs professionally, connecting the producer and the consumer directly and giving the producers control over their products. According to the Amul, more than 15 million milk producers pour their milk in 144500 dairy cooperative societies across the country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State Marketing Federations.

4. Brand Amul

Amul is valued at more than $3.2 billion but more than these figures, of more importance is the transformation it has brought up to the lives of the Indian people, especially the farmers living in rural areas. With over 3 million farmers as its members, Amul is present in over 50 countries, supplying a diverse range of dairy products such as milk, butter, curd, ice-cream, cheese, fresh cream, chocolates to name a few.

5. Advertising

The logo and slogan of Amul were designed keeping in mind the taste and diverse nature of the country. It reinforces Amul’s commitment to bring quality food products to the common people of India. The mascot of Amul, the hugely popular ‘Amul girl’, a young Indian girl dressed in a polka dotted frock with blue hair and a half pony tied up along with Amul’s advertising campaign relating to day-to-day issues have become part of the lives of every Indian.

With innovations like ‘Any Time Milk (Amul), which dispenses 300-ml pouch of milk for Rs 10, Amul is constantly trying to reinvent itself. It is one of the few Indian brands to have captured the consciousness of the Indian people and created immense goodwill for itself in the country and the world.

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