Amul's Milk Chocolates: International Marketing Essay.

Write a global marketing plan for Amul based on the opportunity identified

Australia has a huge demand for chocolate, Amul an Indian based company wants to expand its operations in to the Australian market

Market Potentiality in Australia

In the current business scenario, it is important for the contemporary business organizations in having the flexibility of operating in the foreign locations also. This is due to the reason that it is unviable for the contemporary business organizations to only depend on the domestic market in the current competitive scenario. Thus, more organizations are searching for potential markets in the foreign locations for their products and trying to enhance their global positions (Akaka, Vargo & Lusch, 2013). This is helping them in increasing their brand value in the global market as well as increasing the sales volume. However, it is also important to have the proper understanding of the local market trends and patterns prior to the entry in the particular market. This will ensure that the international marketing strategy of a particular organization will be well aligned to that of the target market characteristics (Samiee, Chabowski & Hult, 2015).

In the recent time, a major trend being identified of maximum number of global business from the emerging economies. This is mainly due to the rapid development of economy of the developing countries. Amul is the leading milk and milk products manufacturers from India and having their presence across the world. They are founded in 1948 as a milk cooperative and currently they are having more than 3.6 million dairy producers as their suppliers (Amul.com, 2018). In addition, they are having wide varieties of dairy products such as different chocolate variants, ice cream and cheeses. However, they are proposing their chocolate brands for foreign market operations due to the reason profit ratio from the chocolates is more compared to other products (Palsule-Desai, Tirupati & Chandra, 2013). Hence, for their foreign market operations, it is important to identify a potential country for investment.

Australia is one of the major countries where Amul is still not having their presence. However, they will have huge market potentiality there due to the reason that it is identified that chocolate market in Australia will grow at the rate of 7 percent till 2023 (confectionerynews.com, 2018). This growth is mainly driven by the high demand for dairy based products. It is also identified that milk chocolate is the largest revenue generator in the Australian scenario and Amul is having wide variety of milk chocolates. Australia is having huge number of immigrants from South Asian regions, which will be an added advantage for Amul in operating in Australia (confectionerynews.com, 2018). This report will discuss about the marketing approach of Amul in doing business in Australia on basis of a few assumptions. In addition, this report will also discuss about the target market strategy in Australia along with the marketing mix strategies. The implementation plan for the marketing strategy will also be discussed and evaluated in this report. 

Marketing Objectives for Amul

This international marketing plan will be based on a few assumptions, which will include:

• Amul is having their business objective for global expansion.
• Amul is having the flexibility and market adaptation strategy to tap the foreign markets.
• Amul is having the expertise in terms of capital and infrastructural support for the foreign market operations.
• Analysis and evaluation to be done in this report will provide only the overall view and not exact estimates.

SWOT analysis

Strengths	· Amul is having favorable brand equity in their existing markets. This will help them to push their sales in the new markets (Jhunjhunwala, 2014). · Amul is a billion dollar brand and this is having the access to larger financial sources (Prasad & Satsangi, 2013). · High diversity of products will help them to tap different customer segments in the further stage. · They are already having presence in different foreign markets. Thus, they will not find difficult to operate in Australia.
Weaknesses	· Amul is not having manufacturing facilities in any foreign locations. Thus, they are entirely depended on exporting (Gandhi, 2014). · Having lower brand value compared to global chocolate brands such as Mars in the international market. · Sourcing milk in cooperative basis will be difficult to implement in foreign locations (Nisa, 2015).
Opportunities	· Chocolate market of Australia is estimated to increase in the next few years. · Diversified product portfolio of Amul will also ensure to tap the growing opportunities in different other markets (Deepak, 2014). · Amul is having the opportunity of position itself as a social media by uplifting the social economy by means of cooperation (Khare, 2014).
Threats	· Emergence of new Australia based competitors will pose threat to Amul (Llamas & Jomo, 2018). · Emergence of economic recession will further create challenge for Amul in their foreign business. · Rapid change in the taste and preference pattern of the customers will pose threat for Amul to change their product strategy.

The two major marketing objectives for Amul being identified are the launching a new product line in the new market and penetrating in the new market further. Both these marketing objectives are being designed in accordance to the goal of effective market presence in Australia (Chang, Hu & Hong, 2013). The following sections will discuss about both these objectives using the SMART concept.

Launching a new product 

Launching a new product is the most critical in developing the foreign business. This is due to the reason that market oriented products should be introduced for the particular foreign market to meet the local taste and preference pattern (Gruner, Homburg & Lukas, 2014). In this case, Amul should launch new brand of milk chocolates including some chocolates with fruit blends and flavor. This is due to the reason that fruit blended chocolates are popular in the Australian market.

• Specific: It is estimated that the new product line to be launched in Australia will contribute 5 percent of the total revenue of Amul in the first year.
• Measurable: It will be measured by the determination of market coverage of the new products in the Australian market.
• Attainable: Demand for chocolates is on rise in the Australian market.
• Realistic: Amul is having their presence in India for more than 50 years and have few years of experience of operating in the foreign markets.
• Timeframe: It is targeted that this objective will be achieved in the next 1 year.

New market penetration (Australia)

Market penetration is also important for the foreign business operations for Amul. This is due to the reason that the more will be the extent of market penetration for them, the more will be the market potentiality for the new products (Grilli & Murtinu, 2014). It is targeted that 10 percent of the Australian market will be covered in the first year.

• Specific: The target market will be covered by about 10 percent. This portion will ensure the viability for Amul in the initial stage.
• Measurable: The performance will be measured by calculating brand visibility and distribution in different locations of Australia.
• Attainable: Australian market is having enough business scope for the new brands in the chocolate and confectionary sector.
• Realistic: Amul is having the experience of initiating foreign business in different countries already.
• Timeframe: It is targeted that 10 percent of the Australian market will be achieved within the 1 year.

Identification of target market is important in the international marketing plan. This is due to the reason that Amul will target a particular customer segment and will cater to their respective expectations. Thus, effective identification of the target market will help Amul in having the proper understanding of the taste and preference pattern of the target customers. This will help Amul to design their product strategy accordingly (Aghdaie & Alimardani, 2015). The major value proposition of Amul in targeting the customers will be the wholly milk based chocolates without the use of any chemicals and artificial agents. This will help in positioning themselves as a more organic alternative to the conventional substitutes. However, it is also important for them to segregate the target customers in the basis of different traits, which will be discussed in the following sections. 

Target customers 

Variables	Characteristics
Demographic	· Age groups between 7 and 20 will be targeted. This is due to the facts that younger aged customers will be more preferable towards the chocolate products. In addition, the elderly age groups will be targeted as the secondary target group for further market penetration (Azar, 2014). · Customers across different price levels will be targeted by diverse offerings of Amul. · Both male and female will be targeted.
Behavioral	· Customers searching for quality and chemical free chocolates at affordable price will be targeted. · Expecting sweeter taste from the chocolates compared to the dark ones. · Frequent customers will be more targeted over the single time users (Bunduchi, 2013).
Psychographic	· Preferences for chocolate products without having health issues. · More preferable for the milk chocolates. · Value for money seeking customers.
Geographic	· In the initial stage, Tier I cities of Australia will be targeted for gaining the infrastructural advantages (Chakrabarti & Mitchell, 2013). · Areas with having major South Asian immigrants. · Urban settings for the customers.

Target geography

Determination of the target geography is also important as the target customers due to the reason that it helps in identifying the trends and patterns of the target markets. In this report target geography analysis of Australia is being done on the basis of secondary research. However, it is preferable that primary research will help more effectively in determining the local market trend (Clark, Li & Shepherd, 2018). It is identified that Australia is one of most populous countries in the world and it is rapidly increasing in the recent time. This denotes that Amul is having favorable market opportunities in doing business in Australia. This coupled with the above identification of increasing opportunities for the chocolate industry is further proving the viability of doing business in Australia. However, it should also be noted that Australia is already having a good number of global and national chocolate brands operating. Thus, it may get difficult for Amul to get the desired foothold in the new market (Shipley et al., 2013).

Target Market Strategy

Market entry strategy 

Based on the above analysis of the business potentiality in Australia and competencies of Amul, it is recommended that they should initiate direct exporting strategy in the initial stage and licensing technique in the following period. This is due to the reason that Amul is already having experience of direct exporting to different countries (Gubik & Karajz, 2014). Thus, it will be beneficial for them if they follow the known route in the initial stage of operation in the Australian market. In addition, initiation of the direct exporting model in the initial stage will help Amul to have lower level of risk of investment and they will be able to determine the market opportunity for their products In the Australian market prior to further investment. Direct exporting will also enable Amul to reduce the cost of intermediaries in the entire process and can offer their products at most competitive prices (Bernard, Grazzi & Tomasi, 2015).

It is also suggested that in the further stage of Australian operation of Amul, licensing strategy should be initiated. This refers to the strategy of appointing a local partner for the manufacturing purposes. This will help Amul to have the local manufacturing facility in Australia without having the requirement of huge investments (Laufs & Schwens, 2014). Furthermore, Amul will be able to reduce their product cost by localizing the manufacturing components and offering more customized products according to the local market trend and preference pattern. Thus, Amul will have their physical presence and manufacturing facilities in the Australian region.

Determination of the marketing mix strategies is important for Amul due to the reason that the effective implementation of the elements of marketing mix will help them to have holistic approach of marketing approach. The following sections will discuss about the 4 elements of marketing mix in accordance to the indentified business factors of doing business in Australia.

Product 

Amul is recommended that they should have diverse product offerings in doing business in Australia. This is due to the reason Australia is having different customer segments with preferences for different kind of chocolates. Thus, offering diverse flavors and variants will help them to target the major customer segments. These variants will include dark chocolates to milk chocolates. In addition, it is also recommended that the market adaptation strategy should also be followed by them over product standardization (Wei, Samiee & Lee, 2014). This is due to the reason taste and preference pattern of the Australian customers are different to that of the Indian customers. Hence, the products should be developed in accordance to the local market preferences. On the other hand, it is also recommended that Amul should not introduce end products rather than they should also have complementary products such as chocolate sauce also (Dubuisson-Quellier, 2013). This will help them to enhance the utility of their product portfolio and increasing the target customers.

Recommendations

Price 

Pricing decision is also important in the marketing mix strategy due to the reason that it will determine the attractiveness of the product to the customers along with justifying the value proposition. It is recommended that Amul should initiate market penetration pricing strategy in their Australian operation. This is due to the reason that initiation of the market penetration pricing strategy will help Amul to cover the maximum market portions and have more sales volume. In the initial stage of operation, it is important for Amul to have the maximum market exposure and penetration, which can be made possible by the initiation of the market penetration pricing strategy (Danziger, Hadar & Morwitz, 214). On the other hand, it should also be noted that there are number of premium chocolate brands operating in the Australian market and market scope is also low. Amul is also established as a mass market brand in India and other foreign markets. Thus, premium pricing strategy will not be effective for the business approach of Amul.

Place

Place determines the distribution strategy of the business organizations and the extent to which the products are made available in the market. It is recommended that Amul should follow extensive distribution strategy for their chocolate products due to the reason that this strategy will made their products available in major market regions. Extensive distribution strategy refers to the process of making the products available to maximum outlets as possible. Thus, this strategy will ensure that Amul is having maximum market visibility for their chocolates in the Australian market. On the other hand, it should be noted that Amul will have mass market products and thus exclusive distribution strategy will not be effective enough for them (Zenti et al., 2014). Extensive distribution strategy will also ensure that customers will have the access to the chocolates of Amul across different stores variants ranging from hyper market to convenience stores. On the other hand, online medium will also be used by Amul in their distribution strategy. This will include availability of the products of Amul in the online marketplaces. It will help Amul to have lower intensity of geographical barriers and can virtually cover the entire Australian region. 

Promotion 

It is recommended that Amul should initiate the Omni Channel promotional strategy in their business. This will include introduction of both online and offline based promotional activities. In case of the offline promotional mediums, print and television media will be used to target the maximum sets of customers. It is also recommended that Amul should have market adaptation strategy for their television commercials. This is due to the reason that if the cultural aspects of the Australian customers can be effectively maintained in the television commercial, then the brand recall value for Amul will be more. In terms of the online promotional activities, social media marketing will be extensively used to determine the change in the local market trends and patterns. Initiation of the social media marketing strategy will also ensure that Amul will be able to identify the feedbacks of the customers regarding their products (Cook, 2014). The promotional strategy of Amul should also include the sales promotion, which will enable the potential customers to have the experience about the new products being launched in the Australian market. Initiation of the Omni Channel promotional strategy will help Amul to have the holistic approach.

Determination of market positioning is also important for Amul due to the reason that competition is high in the Australian market and it is the unique positioning of them among all the competitors that will help in gaining competitiveness. It is recommended that Amul should position their chocolates as affordable alternatives to the premium organic and chemical free chocolates. It is identified that majority of the competitors are offering same quality at the same price points and thus offering more value at same price point will help Amul to have unique positioning in the market. It is suggested that Amul should position their brand as a value for money with providing the maximum value to the customers at the particular price points (Mitani, 2014). It is identified that in the Australian market, majority of the premium chocolate brands are offering larger variants and not the mass market manufacturers. This can also be a source of gaining competitive advantages for Amul due to the reason that Amul should position their products as more variants in the market with affordable price.

It is earlier discussed that Amul operates on the basis of cooperative in sourcing their raw materials. Thus, if the same strategy can be implemented in the Australian region also, then it will beneficial for them to position their products as a purely Australian made product. In Australia, products with having the advantages of Australian made and grown are having more preferences among the customers. Thus, this can also act as another positioning factor for Amul. It is stated that the positioning statement of Amul in Australia will be “Affordable quality”. This denotes that the products of Amul will be positioned as quality products in affordable price.

In the global marketing plan, implementation plan is important to design the activities for effective implementation of the discussed strategies. This will include setting the timeline for implementing different activities, calculating budget and reporting approach. 

Timeline

Timeline for implementation plan for Amul is discussed in this report for the 12 months period. This is due to the reason that marketing objectives discussed in this report are stated for 1 year.

Budget 

The budgetary considerations for Amul will include different elements such as investment in developing new products and developing the infrastructural requirements for the new market development. The considerations for promotional activities are also being included in the budget for Amul.

Task Name	Duration	Start	Finish	Resource Names	Cost
Market entry implementation plan	410 days	Mon 11/26/18	Fri 6/19/20		$1,653,600.00
1.0 Market definition	65 days	Mon 11/26/18	Fri 2/22/19		$134,000.00
1.1 Examining the market for target consumers	30 days	Mon 11/26/18	Fri 1/4/19	Marketing team	$60,000.00
1.2 Examine research gap	10 days	Mon 1/7/19	Fri 1/18/19	Marketing team ,Project Manager	$26,000.00
1.3 Draft the findings	15 days	Mon 1/21/19	Fri 2/8/19	Marketing team	$30,000.00
1.4 Discuss with the stakeholders and make amendments	10 days	Mon 2/11/19	Fri 2/22/19	Project Board ,Project Manager	$18,000.00
1.5 Milestone 1: Market defined	0 days	Fri 2/22/19	Fri 2/22/19		$0.00
2.0 Perform market analysis	57 days	Mon 2/25/19	Tue 5/14/19		$392,000.00
2.1 Conduct analysis of the market economy , forecasted demand, potential entry barriers and competitors	25 days	Mon 2/25/19	Fri 3/29/19	Finance Team ,Technical team	$240,000.00
2.2 Record the findings in a draft	7 days	Mon 4/1/19	Tue 4/9/19	Finance Team ,Operations Team	$22,400.00
2.3 Stakeholders meeting	12 days	Wed 4/10/19	Thu 4/25/19	Finance Team ,Project Board ,Project Manager, Operations Team	$60,000.00
2.4 Strategic initiatives	10 days	Fri 4/26/19	Thu 5/9/19	Finance Team ,Marketing team ,Project Board ,Project Manager	$54,000.00
2.5 Draft the strategic initiative	3 days	Fri 5/10/19	Tue 5/14/19	Finance Team ,Marketing team ,Operations Team	$15,600.00
2.6 Milestone: Market analysis performed	0 days	Tue 5/14/19	Tue 5/14/19		$0.00
3.0 New market development	90 days	Wed 5/15/19	Tue 9/17/19		$164,000.00
3.1 Build logistics for export	40 days	Wed 5/15/19	Tue 7/9/19	Operations Team	$64,000.00
3.2 Brand marketing	20 days	Wed 7/10/19	Tue 8/6/19		$40,000.00
3.2.1 Creative development	20 days	Wed 7/10/19	Tue 8/6/19	Marketing team	$40,000.00
3.2.2 Media planning	30 days	Wed 8/7/19	Tue 9/17/19	Marketing team	$60,000.00
3.3 Milestone 3:New market developed	0 days	Tue 9/17/19	Tue 9/17/19		$0.00
4.0 Product marketing	64 days	Wed 9/18/19	Mon 12/16/19		$509,200.00
4.1 Test marketing	7 days	Wed 9/18/19	Thu 9/26/19	Marketing team	$14,000.00
4.2 Social media promotions	35 days	Fri 9/27/19	Thu 11/14/19	Marketing team ,Technical team	$350,000.00
4.3 Road shows and events	7 days	Fri 11/15/19	Mon 11/25/19	Marketing team ,Operations Team	$25,200.00
4.4 Feedback analysis	15 days	Tue 11/26/19	Mon 12/16/19	Technical team	$120,000.00
4.5 Milestone 4: Product analyzed	0 days	Mon 12/16/19	Mon 12/16/19		$0.00
5.0 Market research	67 days	Tue 12/17/19	Wed 3/18/20		$372,600.00
5.1 Conduct survey	30 days	Tue 12/17/19	Mon 1/27/20	Marketing team ,Human resource Team	$84,000.00
5.2 Analyze data	15 days	Tue 1/28/20	Mon 2/17/20	Technical team	$120,000.00
5.3 Draft the findings	5 days	Tue 2/18/20	Mon 2/24/20	Technical team	$40,000.00
5.4 Discuss with the stakeholders	7 days	Tue 2/25/20	Wed 3/4/20	Finance Team ,Human resource Team ,Marketing team ,Operations Team ,Project Board ,Project Manager,Technical team	$110,600.00
5.5 Develop suitable strategies	10 days	Thu 3/5/20	Wed 3/18/20	Project Board ,Project Manager	$18,000.00
5.6 Milestone 5: Market research completed	0 days	Wed 3/18/20	Wed 3/18/20		$0.00
6.0 Closure phase	67 days	Thu 3/19/20	Fri 6/19/20		$81,800.00
6.1 Product launch	7 days	Thu 3/19/20	Fri 3/27/20	Human resource Team ,Project Manager	$9,800.00
6.2 Analyse the performance	30 days	Mon 3/30/20	Fri 5/8/20	Project Manager	$18,000.00
6.3 Make changes if necessary	15 days	Mon 5/11/20	Fri 5/29/20	Project Board ,Project Manager	$27,000.00
6.4 Develop new strategies for further expansion	15 days	Mon 6/1/20	Fri 6/19/20	Project Board ,Project Manager	$27,000.00
6.5 Milestone 6: Project completed	0 days	Fri 6/19/20	Fri 6/19/20		$0.00

Evaluation process

A few key performance indicators will be used for measuring and evaluating the success of the marketing plan. These key performance indicators will be the rate of new customer acquisitions, rate of revenue generation, customer satisfaction level and financial position of the organization.

KPIs	Analysis
New customer  acquisitions	It will help in determining the effectiveness of the marketing plan in attracting new customers in the business.
Revenue generations	It will help to determine the increase in the revenue after the implementation of the marketing plan..
Customer satisfaction level	It will help to determine the level of satisfaction among the customers after considering their expectations in the marketing plan.
Financial position	It will help in determining the profitability of Amul from their Australian operation along with their viability.

Conclusion 

This report concludes that the major objectives for Amul in doing business in Australia is to launch a new product specifically for the Australian market and penetrate in the market. In addition, this report also identified the potential target segments for Amul in Australia. It is identified that younger age groups will be the primary target segments for them while the elderly customers will be their secondary target groups. The marketing mix strategies discussed in this report are in accordance to the marketing objectives and trends of target customers. All the major four elements are being discussed and strategies are being recommended to achieve the stated marketing objectives. This report also concluded that Amul should position their products as a more value for money in the Australian market and they should also position their products as mass market items. The implementation plan discussed in this report will help Amul effectively allocate funds in different marketing activities and evaluating the success of implementation. In the implementation plan, a few key performance indicators are being identified for Amul that should be implemented by them to determine the performance of the marketing plan. The budget estimated in this report is based on hypothetical data and it will provide a rough over view of the fund allocation. Thus, in the real world situation, changes may be identified in terms of value 

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