Page 48 - DMGT509_RURAL MARKETING

Unit 2: Rural Marketing Environment

The Amul brand has been converted into the Amul contract due to certain specific well Notes
designed and executed plans that have become the talking points in the corporate circles
as well as in the Business Schools. The conversion process is discussed below:
Brand-Contract-Quality
Amul has been maintaining a strict vigil on the following three areas in its domain:
1. Hygiene standards

2. Bacteriological standards
3. Organelptic standards
4. Good taste
By observing the rigid quality standards, the Amul brand has rendered itself to reach the
heights that it can replace the daily contract between the buyers and suppliers associated
with Amul. The quality assurance given by the brand is sufficient for both the buyers and
the suppliers who all are ready to vouch for the brand and all the products coming under
the umbrella.
Brand-Contract and Product Pricing

In daily FMCG product purchase, the buyer looks for a 'Value for Money' product for which
they are ready to pay a reasonable amount of money if it delivers the benefits promised by
it. Amul has to strike a fine balance between reasonable price to the customers and a fair
return to its owners, the farmers of Gujarat. Even at times when Amul faced adverse conditions
with reduced supplies for products like butter, price rise was not resorted to; the management
resisted it. Retail trade was not favoured at the cost of the farmer owners of Amul.
Brand-Contract-Availability

Amul has organised the country's finest distribution network that covers hundreds of
cities and towns through a cold chain that ensures that the products are available all over
the country and at the same product quality. As the products belong to food group, Amul
takes special care to see that no non-standard product ever goes into the market. This is
further strengthened by the top quality service provided by Amul.
Brand-Contract-Service
Amul exemplifies itself as, arguably the best food product provider in the country.
However, in case of any complaint from a customer, the company makes certain that the
customer gets full satisfaction with the service they provide.

It can be stated without any contradiction that Amul Contract is based on its brand, which
spells success because of the following major initiatives:
1. Quality standards

2. Value for money products
3. Availability of same top quality product all over the country
4. Service for redressing complaints should they ever arise
Genesis of Amul

The origin of Amul can be traced back to the period just prior to India's independence. On
the 4th January 1946, a meeting was arranged of the farmers of Samarakha village in
district Kaira Gujarat. It was on the initiative of Sardar Vallabh Bhai Patel that Morarji
Contd...

LOVELY PROFESSIONAL UNIVERSITY 43