Amul – A Disruption in Milk Procurement

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Where there is Unity, there is always Victory’, proving the validity of this quote is a company that disrupted the entire milk procurement process and spurred the White Revolution in India. A company that was founded by few farmers with a mission to stop the exploitation by middlemen and gradually became the biggest brand of the nation. A brand that not only changed the lives of many poor farmers but also took our nation to new heights. Let’s analyze the story of a brand that grew from infinitesimal firm to a huge brand ‘AMUL –The Taste of India’.

It all started 65 years back when poor farmers who worked hard day in and day out were exploited by the local traders and were given cipher incentives. Angered by unfair and manipulative practices followed by local traders, the farmers under the leadership of Tribhuvandas Patel approached Sardar Vallabhai Patel to resolve their grievances. Empathizing with the farmers, Patel Ji advised them to be self sustained entrepreneurs and work for themselves rather than being a slave. The farmers took the advice seriously and formed their own cooperative societies. What started with only a few farmers producing 247 liters of milk grew into a fully fledged organization with more than 3.6 million milk producers producing around 14.85 million liters per day (Data till 2015).

Here are few Facts about Anand Milk Union Limited i.e. AMUL-

  • Amul was founded in 1946 in Anand, Gujarat with a mission to stop the exploitation by middleman
  • Amul is managed by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which is jointly owned by more than 3.6 million milk producers of Gujarat
  • Amul spurred the White Revolution in India, which placed India at the top of milk producing nations
  • Amul corporative was created by Dr. Verghese Kurien also known as the Father of White Revolution in India
  • More than 15 million milk producers pour milk in 144500 dairy cooperative societies across the country
  • Brand Amul is present in over 50 countries, and in India alone it has more than 7200 exclusive parlors
  • In 1999, Amul was awarded the “Best of all” Rajiv Gandhi National Quality Award for maintaining the utmost level of quality in its plants
  • Amul has been awarded a Guinness World record for the longest running advertisement campaign

 

Key Success factors-

 

Amul girl (Amul Advertising Campaign)

Amul girl is the advertising mascot used by Amul to promote its brand. The brand has been cleverly using Amul girl, in its longest running ad campaign, to instill an element of humor into its print ads. The content is liked by people on social media and results in better customer engagement. This increases the brand recall value for Amul. Hence, Amul girl advertising is often described as one of the best Indian Advertising concepts.

Innovation

Amul has been constantly innovating – be it launching new products, creative marketing campaigns or challenging the traditional societal trends to come up with better ones.

In 1960’s, Amul became the first brand in the world, to make skim milk powder from buffalo milk. Also with its 3 tiered cooperative structure, Amul changed the traditional way of operations to a better cost efficient and effective way which was replicated all over the country.

For its continuous innovation, the brand won ‘CNN IBN Innovating for better tomorrow award’ and ‘World Dairy innovation awards’ in the year 2014.

 

Strong Brand- Branded House

Amul follows the Branded House Architecture i.e. whatever they promote; they promote it under one common brand name – ‘Amul’. The prime focus is on promoting the parent brand rather than individual products which help them gain more brand visibility and results in lesser marketing and advertising costs.

 

Efficient Supply chain

Amul follows a three- tier cooperative structure which consists of a dairy cooperative society at village level, affiliated to a milk union at the district level which in turn is federated to a milk federation at the state level. Milk is collected at the village dairy society, procured and processed at the District Milk Union and marketed at the state milk federation.

The greatness of this model lies in the fact that Amul was the first company to follow this model and it was replicated all over the country under the Operation Flood in 1970. Amul model ensures the efficiency and swiftness of the operations.

The Amul model has helped India to emerge as the largest milk producer in the world.

Amul_supply chain

Diverse portfolio of products

With its diversified product portfolio, Amul has been able to cater to the needs of all the segments. From kids to teenagers, men to women, calorie conscious to health conscious, the company has ensured to launch products for each segment. Providing the value and benefits to its target segment, Amul has been able to build a strong brand association with its customers over the years.

Amul Products

 

Conclusion

 

It is said that ‘If the farmer is poor then so is the whole country’. It was Sardar Vallabhai Patel, Tribhuvandas Patel and Dr. Verghese Kurien who realized the depth of this quote and took certain measures to stop the exploitation of the farmers. It was their sheer determination and hard work that made the farmers self sustained and India became the number one milk producing nation in the world.

Today, the brand has enabled farmers to be entrepreneurs and earn their own living. The whole process being transparent has ensured there is no exploitation of the underprivileged. It has changed the whole traditional scenario and caused a disruption in milk procurement process.

 The Amul brand has proved that it is not just a product but a movement that represents the economic freedom of farmers. The brand has given farmers the courage to dream, to hope, to live.

Amul in its all sense has proved that it is Amulya i.e. ‘Priceless’ for our nation and we must preserve it.

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