The Taste of India
The creation of the Amul brand was much more than a mere
advertising gimmick. RS Sodhi discusses the marketing
strategies that made Amul synonymous with milk in India
When we talk of Fast Moving
Consumer Goods (FMCG) the
foremost that comes to our minds is
soaps, toothpastes, oils and the frequency with
which these goods are purchased-say once or
twice a month. But there's nothing like milk,
which is the fastest moving consumer item
today. Purchased and sold 365 days a year,
even twice in a single day, it has around 100
per cent penetration across all the income
segments across all age groups. Whether it's
for tea or coffee for adults or milk for kids.
The market for packaged milk is worth Rs
12,000 crore and is growing at a rate of 10 per
cent per annum.
Potential and growth of liquid
milk market
The level of income is the most important
determinant for the demand for milk and its
products. But with an increase in per capita
income, the income elasticity of demand for
milk is more than one. NSS data for 1993-94
indicates that the expenditure on liquid milk
constitutes about 91 per cent of the total per
capita monthly expenditure on its products.
The rapid changes in lifestyle and the
increasing disposable income of the strong
middle class has considerably increased its
demand. The market share of the organised
sector is increasing gradually, while the
unorganised sector's share appears to be on
the decline. Branding of milk too has become
an integral part of all marketing activity. With
the increase of per capita income, the
consumption habits too have changed and
expenditures for packaged and processed food
have increased manifold. In value terms, milk
is the country's number one agricultural
commodity. Out of the total production of
milk, 46 per cent is consumed as fluid milk
and dominates the consumption of livestock
products across all income groups, while the
market for packaged milk stands at a mere 15
per cent.
The liquid milk market
The milk market has always
been an unorganised sector
with local milk vendors
catering to the household
demand throughout the
country. Besides these milk
vendors, there are local pouch
milk suppliers who again sell
milk in their respective areas
without bothering much about
quality. However with the
emergence of Amul as an all
India milk provider, things are
changing, at least in quite a
few major towns in India
where Gujarat Cooperative
Milk Marketing Federation...
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