Amul is a household name in India, dominating the dairy market for decades. Even today, most of us will have one or two Amul products in our homes. It has managed to maintain its image as a family brand with efficient marketing strategies and thought-provoking jingles like Amul- The Taste of India.
But how did Amul position itself as a market leader and manage to uphold its position for decades? The answer lies in the marketing strategy of Amul that has helped the brand stay relevant in the increasingly competitive world. The marketing of Amul serves as a valuable case study for businesses that aim to upscale their business and become a dominant force in their respective industries.
In this blog, we will explore the business model and marketing strategy of Amul which helped it become a household name in the entire nation. But first, let’s learn more about what Amul really is.
Overview and History of Amul
Anand Milk Union Limited or Amul is one of the world’s leading milk manufacturers. It was founded by Dr. Verghese Kurein in 1946 with the motive of farmer welfare and stopping the exploitation done by ‘Pestonjee Edulji.’
However, it soon became one of the most successful brands in India. Dr. Verghese, also known as the Milkman of India was responsible for transforming India into one of the largest producers of milk in the world.
Amul started out as the Milk Cooperative movement “Kaira District Cooperative Milk Producers Union Ltd” which was later rebranded as Amul. However, the special thing about Amul is not its products or position in the industry but the fact that it is a cooperative society that started solely to provide justice to farmers.
Today, Amul is under the leadership of RS Sodhi, who is the managing director(MD) of the company. The company operates in the FMCG sector and is supervised by the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF).
| Legal Name | Amul Dairy |
| Founder | Dr. Verghese Kurein, Shri Tribhuvandas Patel |
| Industry | Dairy (FMCG) |
| Headquarters | Anand, Gujarat |
| Revenue | $9 billion (2022) |
| Funding | $48.3 million |
| Number of Employees | 350,000 |
| Founding Year | 1946 |
The Business Model of Amul
Amul, the Indian dairy cooperative, follows a unique and highly successful business model known as the Amul model. It is a three-tier structure designed to empower farmers and ensure they receive fair prices for their milk while providing high-quality dairy products to consumers.
Three-tier Cooperative Structure
- Village Cooperative Societies
- Level 1: The foundation of Amul’s model
- Ownership: Milk producers (farmers) in villages form cooperative societies
- Function: These societies collect milk from their members, providing fair pricing. Moreover, farmers also receive special perks like animal feed, veterinary services, and more.
- Membership: Farmers are shareholders and receive dividends based on the profits.
- District Milk Unions
- Level 2: These unions collect milk from various village cooperatives within a district
- Function: Milk is processed, packed, and converted into various dairy products like butter, cheese, and ice cream.
- Management: These unions oversee the manufacturing process, branding, and quality control.
- State Federations
- Level 3: The apex body managing distribution and marketing
- Function: The federation handles the branding, sale, and marketing of Amul products globally.
- Ownership: The federation is owned by district unions.
With this model, Amul has established itself as an undefeated market leader in the dairy industry, providing value-for-money products to consumers while protecting the interests of farmers simultaneously.
The Target Audience of Amul
Amul targets the mass market and caters to consumers who are looking for the best quality products at affordable pricing. The company does not offer any premium offerings and creates its pricing policy on the low-cost price strategy.
The brand has strategically divided its target audience among two categories and crafts tailored marketing strategies for both segments.
Business to Business (B2B)
Contrary to popular belief, Amul primarily caters to other businesses. It has a special interest in the B2B category and the marketing of Amul targets people who buy products in bulk like restaurants and food stalls.
- Milk: Restaurants, Ice Cream Manufacturers, Local Food Stalls, Tea Vendors, Milk Distributors, Retail Stores
- Butter, Ghee, Cheese, etc: Bakeries, Food Stalls, Restaurants, Hotels
Business to Consumers (B2C)
We generally see Amul’s marketing strategy in the form of TV advertisements and billboards. These are created to target consumers of all age groups based on their interests and choices. Moreover, Amul also holds the Guinness World Record for the longest-running advertising campaign.
- Kids: Amul Kool, Amul Milk, Amul Chocolates
- Youth: Amul Cheese, Amul Pizza Cheese, Amul Pizza
- Elders(health-conscious): Amul Lite Butter, Amul Shakti, Nutramul
Given that Amul has a decent audience in both B2B and B2C segments, Amul has segmented its products to cater to various demographics according to age groups and social standing. Now, that we know about the target audience, let us understand Amul’s marketing strategy used that played a major role in its success.
The Marketing Strategy of Amul
Amul’s marketing strategies and campaigns are pivotal to its success, combining innovation, affordability, and emotional appeal. Let’s learn in detail:
The Iconic Amul Girl Mascot
If you are a millennial or GenZ, you will recognize the Amul girl at first glance. It is a hand-drawn cartoon of a young Indian girl dressed in a Polka-dot dress with blue hair. Launched in 1966, the Amul Girl was created to compete with its rival Polson’s Butter Girl back in 1967. The Amul girl mascot was featured in ads that reflected current events, making the brand relatable and memorable.
The mascot girl is the best marketing strategy of Amul and also holds a Guinness World Record for the longest-running ad campaign in the world. The tagline “Amul: The Taste of India” emphasizes its heritage Amul’s role in uniting the country through dairy products.
Moment Marketing Strategy of Amul
Amul also utilizes a moment marketing strategy where it leverages recent events and trends to engage its customers. It has been Amul’s marketing strategy for decades, shifting from newspapers to digital platforms. Look at how smartly Amul used the victory of Neeraj Chopra to its advantage. This is the innovative marketing of Amul.
Engaging Taglines of Amul
“Amul Doodh Peeta Hai India” every 90s kid and adult is familiar with this line and even the song. Another popular tagline is Amul: The Taste of India which subconsciously attracts the audience to the popular dairy brand. These taglines are like identities of the dairy brand and capture the thought process of the consumers, serving as more than just a marketing strategy.
On the other hand, Amul has also used catchy taglines for its various products. The tagline Utterly, Butterly, Delicious which was used for Amul Butter became synonymous with the brand.
One of the most popular marketing campaigns of Amul had the tagline “Amul Doodh Peeta hai India,” promoting milk consumption and showcasing Amul as a trusted supplier of pure, nutritious milk. Even today, the name Amul is synonymous with quality.
Unified Branding Marketing Strategy
Generally, FMCG companies sell products under various brand names. However, Amul’s marketing strategy uses a single brand name for all its products, ensuring consistent recognition and reducing marketing costs. Whenever Amul launched a new product, customers flocked to it because of its brand value. This approach helps maintain customer trust across its diverse product portfolio. This is an innovative and out-of-the-box marketing strategy of Amul.
Low Cost, High-Value Marketing Strategy
While most dairy companies target a specific demographic, Amul’s marketing strategy caters to the mass market. It sells high-quality products at an affordable price, catering to all sections of the society. From a lower middle-class person to an elite class, everyone uses Amul products. This simple but effective marketing strategy of Amul helped it acquire a mass market and position itself as a market leader in the dairy industry.
Amul’s Digital Marketing Strategy
In the ever-evolving digital landscape, customers have moved to social media platforms from television and newspapers. In this case, every brand needs to tailor their marketing strategies according to digital platforms, and Amul is no exception.
Amul has significantly cut down its TV ad cost and started focusing more on social media platforms like Facebook, YouTube, Twitter, and Instagram. Let’s explore the various marketing strategies of Amul for social media platforms.
Amul on Facebook
With over 2 million Facebook followers, Amul creates brand awareness for its product by leveraging paid ads. Currently, Amul is using a contest called ‘World’s Largest Live Recipe Show” on Amul’s Facebook page. Moreover, Amul also uses Indian festivals by linking their products with their products, creating a sense of familiarity among the consumers. This is a great social media marketing strategy of Amul that every marketer must learn from.
Amul on X (formerly Twitter)
On platforms like X(formerly Twitter), Amul generally uses moment marketing strategies and uses current events and news to capture the audience’s attention. The Amul girl is a cornerstone of Amul’s social media strategy. For example, last year, Amul celebrated Elon Musk’s feat of becoming the richest man in the world with a witty cartoon labelled ‘Elon Muska.’
After Amul, many other brands also copied Amul’s marketing strategy to gain attention and go viral.
Amul on YouTube
Amul has made great use of the video-streaming service and started a series during COVID-19 called #SimpleHomemadeRecipes which is still running. Professional chefs and cooking enthusiasts shoot their videos of making recipes with Amul products that are uploaded on Amul’s YouTube channel.
This is one of the best content marketing strategies of Amul that did not cost them a single penny. It sourced all the videos from its customers and just edits and uploads them on its YouTube channel.
Amul’s Social Media Follower Count
| Social Media Platform | Followers |
| 2 million | |
| YouTube | 516k subscribers |
| 438k followers | |
| X (formerly Twitter) | 370.1k followers |
National Milk Day Campaign
Amul’s National Milk Day campaigns are celebrated annually on November 26, honoring Dr. Verghese Kurein, also known as the Milkman of India. Amul organized a bike rally from Varanasi to Anand, where bike riders met the families of the farmers whose lives have been impacted by Dr. Kurien.
The objective of this campaign was to connect with the youth and inspire them to be motivated in their lives. Moreover, Amul also launched a small 70-second film on Dr.Kurein on Facebook, Instagram, and YouTube.
The hashtags used in this campaign included #CelebratingDrKurien, #BikeRally, #26November, and #VaranasitoAnand
Key Takeaways From Amul’s Marketing Strategy for Entrepreneurs
The marketing strategy of Amul serves as a blueprint for entrepreneurs who want to evoke emotions in millions of customers. Here are some key takeaways if you are building a business:
Customer-centricity is Key
One of the key factors that distinguishes Amul from its competitors is customer-centricity. It targets the mass market and has consistently maintained its quality over the years. Amul is very particular in using the highest quality ingredients and maintaining its unmatchable taste, making it truly ‘The Taste of India.”
Transparency
Amul is very transparent with its customers, revealing its processing methods, quality standards, and pricing. This enhances brand trust and loyalty among millions of customers which is key for any brand to make it big in the market. Moreover, Amul’s customer support team is very responsive, responding to user queries promptly, further solidifying the trust.
Risk Taking
While most brands follow the industry norms, Amul gained a competitive edge by executing risky campaigns that paid off well in the long run. A primary example of this is Amul’s flavored milk product, expanding its reach beyond Gujarat and even international markets.
The company has also adopted different marketing strategies for different markets, allowing it to capture new market segments with ease.
Final Words
From its humble beginnings in 1946 to being a household name in India, Amul has come a long way. By leveraging amazing marketing strategies and tapping into the emotions of the public, Amul made itself one of the biggest dairy brands in the world. The use of its Amul Girl mascot and combining it with current affairs also allowed Amul to create a solid presence in the subconscious of its consumer base.
In this case study, we have covered Amul’s marketing strategies, campaigns, and digital marketing strategies that positioned itself as a dominant force in the market. We also dive into the case studies of other successful brands like Zomato, Monster Energy, and Pepsi in our 3-month digital marketing course.
If you are interested in digital marketing, you can check out our digital marketing course along with a dedicated SEO course that offers placement assistance and internships.
Frequently Asked Questions(FAQs)
Ans. The Amul girl mascot combined with moment marketing is undoubtedly the best marketing strategy of Amul that helped position itself as a market leader. It allowed the brand to emotionally connect with its consumers and make a solid long-lasting presence among its user base.
Ans. Amul uses a three-tier cooperative structure focused on helping farmers and ensuring they receive fair prices for their milk while providing high-quality dairy products to its customers.
Ans. The marketing strategies of Amul are primarily planned by the internal digital marketing team at the Gujarat Cooperative Milk Marketing Federation(GCMMF) in Gujarat. The strategies are primarily focused on using Amul’s mascot girl and a strategy of adapting to current events through humorous and witty campaigns.
Ans. Over the years, there have been various taglines associated with Amul. These include the iconic “Amul: The Taste of India,” Amul Doodh Peeta hai India,” and Amul butter’s tagline ‘Utterly, Butterly, Delicious.’
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