Amul Forays into Carbonated Drinks Market
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Case Code: CLMM162 Case Length: 7 Pages Period: 2019-2020 Pub Date: 2021 Teaching Note: Available |
Price: Rs.250 Organization: Gujarat Cooperative Milk Marketing Federation Industry: Food & Beverage Countries: India Themes: Brand Development, Marketing Mix, Marketing Strategy, Brand Extension |
Abstract
The case discusses home grown dairy brand Amul’s foray into the carbonated drinks space in India with the launch of a fizzy fruit based dairy drink ‘Tru Seltzer’ in October 2020. Said to be India’s first seltzer, Amul Tru Seltzer was available in two flavors — lemon and orange – and was affordably priced at just Rs 15 for a 200ml PET bottle. The drink was targeted at the health conscious younger generation. According to Amul, one of the USPs of the product was that it contained milk solids, which no other carbonated beverage in India had as an ingredient. The dairy brand also claimed that the percentage of added sugar in both the variants of the seltzer was less than in other products in the carbonated beverages segment in India.
Given Amul’s maiden foray into the carbonated beverages segment with Tru Seltzer, it was expected to face some challenges such as tough competition from big players in the Indian carbonated drinks space, defining the category as seltzers were still not a distinct category in the Indian beverages market, and scaling up the brand.
Issues
- Understand the reasons behind Amul’s entry into the carbonated drinks market in India.
- Analyze the marketing mix of ‘Tru Seltzer’.
- Understand the dynamics and risks involved in brand extension.
- Understand the challenges faced by Amul with respect to its entry into the carbonated drinks space in India.
- Explore the strategies that Amul could adopt in the future to succeed in the carbonated drinks space.
Introduction
In October 2020, in a major product diversification, India’s leading home-grown dairy brand Amul entered the carbonated drinks space in India with the launch of ‘Tru Seltzer’, said to be India’s first seltzer . Marketed as a healthy beverage, Tru Seltzer was a mix of real fruit concentrate, milk solids, and fizz. According to the company, “There has not been much innovation in this category. Consumers are also moving away from sugary beverages that only contain water, sugar & fizz. Amul researched deep into this category and figured that Seltzer which originated more than 300 years ago has never been explored in India,” the Gujarat Cooperative Milk Marketing Federation (GCMMF), which marketed Amul products, stated..
Keywords
Brand Extension; Marketing Mix; Brand Development; Amul Tru Seltzer; Carbonated Drinks Market; Marketing Strategy.
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