MFSA Assignment

Question: Explore the strategy of two similar companies on the basis of the following
parameters:

(FMCG Companies for milk products have taken into consideration)

Amul Mother Dairy
1. Vision Amul’s vision is to provide Provide quality food and
more and more satisfaction to beverages to consumers at
the farmers, employees and affordable prices while ensuring
distributers fair returns to the producers.
2. Mission Endeavour to satisfy the taste To serve farmers, rural India &
and nutritional requirements consumers. Their value reflects
of the customers of the world, who they are & what they
through excellence in firmly believe in.
marketing by our committed
team. Through co-operative
networking, we are
committed to offering
3. Goal Aims to provide remunerative To sustain market leadership in
returns to the farmers and the production and marketing of
also serve the interest of a variety of liquid milk and milk
consumers by providing products with assured quality at
quality products which are an affordable price, covering all
good value for money. market segments and to
maintain the growth, prosperity
and unity of all our internal &
external customers.
4. Objective Amul has an objective The main objectives of Mother
to supply goods with best of Dairy are to promote suitable
quality and purity at very measures to give power to
reasonable rates. It helped to farmers and milk producers
reduce malpractices carried through methods that are
out by merchants and milk equitable and also to make sure
traders. that farmers and milk producers
receive fair market prices for
their products.
5. Strategic Capability Amul has segmented Milk for High market potential for
various industries such as ice- consumables in India: Most
cream manufacturers, consumables have a high
restaurants, coffee shops, and demand in India and the
many similar industries. growing population of India is
Further, it has segmented creating more demand. The
Butter, Ghee, and Cheese for dairy market alone is around
bakeries, pizza, snack 80,000 crores INR which is
retailers, confectionaries, and mammoth sized.
many more.
The target audience study Favourable environment in
 tells us that Amul has a
strong presence in both India: The government is
business-to-business (B2B) favorable towards agriculture
and Business-to-Customers and the food processing industry
(B2C). has been able to receive a lot of
This is how Amul’s target perks as a result of this focus.
audience is served, given that
it has a decent concentration Mother Dairy deals with milk
in both B2B and B2C and milk products including
segments.  cultured products, ice creams,
paneer and ghee under the
Mother Dairy brand. Under the
label Dhara it sells edible oil
and fruits & vegetables, frozen
vegetables, pulses, processed
food like fruit juices, jams, etc
under the label Safal. This helps
the company to become a
popular name in the household
of an average Indian.

6. Strategies Promotional strategies Focused Approach: For the first

include different social media 22 years of its existence, liquid
marketing strategy and milk was the only dairy product
campaigns. that Mother Dairy offered.
Amul Girl is the official
mascot of the Amul brand. • Wider Spread: e.g.: In ice
Amul’s Digital Marketing creams, it was only a bit more
Strategy than two years ago that Mother
In this increasingly digitized Dairy entered its first market
world, every brand needs to outside Delhi-UP and Punjab.
revamp its marketing Today, it's extended its
strategy. Amul too has cut operation to Haryana, Jaipur,
down its expenditure on TV Mumbai and Kolkata as well, it
Ads and has started focusing plans to go south to Hyderabad
more on the online form of and Bangalore.
advertising just like its • Product differentiation:
competitors. bringing in mass Indian flavours
which are building up in terms
of absolute percentage of
contribution. Their attempt is to
make the taste experience in ice
creams as familiar as possible
so as to increase consumption.

Smart Marketing: Mother Dairy

says it's trying to take its
product campaigns and
communications to a higher
 platform.

Product enhancement and

assured quality: Identify and
address quality related problems
at every stage from the producer
at the village cooperative, to the
dairy plant and the process of
final delivery to the consumer.

STP: due to the growing need of

nutritious diet, the need of milk
and its products have increased
among the youth.

Tie-ups with local vendors •

Advertisement and promotion
strategies by mother dairy.

• Attractive packaging of the

products by

endorsements through
celebrities.
7. Business Models The Amul Model Village
This model aims to provide
‘value for money to the Farmer Produces
customers and protect the -Supplies to collection centre
interests of farmers Quality Testing Done
simultaneously’. Farmers Supplies and Gets
The Amul Model is a three- Payment
tiered structure that is
implemented in its dairy District
production:
 Amul acts as a direct Transfer from Village through
link between milk chilling vans
producers and Milk Process Centres Managed
consumers that Cattle-feed plants Producing
removes the Multi-products
middlemen which
help them offer State
products at affordable
prices. Marketing & Distribution
 Farmers (milk
Branding
producers) control
procurement,
processing, and
marketing.
 Run by Professional
Management
 With this model, Amul has
made a significant impact in
the market along with taking
care of the farmers and also
providing value for money
services to its customers.

8. Controls Amul Dairy has implemented With the government of India

digitization of artificial announcing nationwide
insemination of cattle. lockdown on March 24 due to
After successful operational the outbreak of COVID-19,
initial results at the Kaira Amul, one of the biggest FMCG
District Milk Producers' company in India, was in a
Cooperative Union (Amul major fix. With its complex
Dairy), all the 1,200-village supply chain, the company
level milk producer societies witnessed an unforeseen surge
of Amul Dairy milkshed area in the demand for dairy
have been covered under products and a steep decline for
digitalization. Amul Dairy frozen products. With the frozen
become India's first supply chain lying idle, and the
cooperative to adopt digital dairy supply chain under
tracking, monitoring system pressure, Amul maximized the
for artificial insemination use of recourses and
processes. infrastructure by deploying the
With the government of India frozen one for delivering dairy
announcing nationwide products overnight.
lockdown on March 24 due to
the outbreak of COVID-19,
Amul, one of the biggest
FMCG company in India,
was in a major fix. With its
complex supply chain, the
company witnessed an
unforeseen surge in the
demand for dairy products
and a steep decline for frozen
products. With the frozen
supply chain lying idle, and
the dairy supply chain under
pressure, Amul maximized
the use of recourses and
infrastructure by deploying
the frozen one for delivering
dairy products overnight.