Marketing Challenge

Amul is about to launch its New ice cream flavor:

Nutty-Coffee

Caution: Suitable for adults as it contains caffeine.

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And guess what?

They want you to lead the Marketing Team for the product launch!

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As the Lead you need to design a marketing strategy focussed around the 4 Ps of Marketing.

Since, we already are aware about the product let's move on to the next step​.

​Your competitors are already selling similar products in the market.

​So you need to decide a price for your product which helps you compete with others and at the same time ensure that you make a profit.

Multiple Choice

If Amul spends Rs. 150 in making a 500mL tub of Nutty Coffee, what should be the selling price of the product so that Amul can successfully beat its competitors and at the same time make a profit?

Hint: Compare the prices of similar products in the market.

Please Note: Click on the image to zoom in.

• ₹ 170

• ₹ 250

• ₹ 320

• ₹ 350

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​Amul should sell Nutty-Coffee at ₹250

• After comparing the prices of similar products from different brands it can be said, that the price should range in between ₹​ 160-320.

• As Amul is a household name in India so the price should be affordable for the masses and at the same time a little more than mid range products from Kings kulfi and Gianis and lesser than High-range products from Havmor and Natural.

Product placement in the market is considered to be an art.

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So let's decide how you will introduce your new product to the customers​.

Multiple Choice

Where will the new product be available for sale?

Please Note: Click on the image to zoom in.

• Online channels like Swiggy/Zomato

• Offline channels supermarkets/ local vendors

• Both online and offline channels

• Through its own website.

Amul should sell the product through both online as well as offline channels.

• Customers are purchasing from both offline and online mode at a good percentage, therefore Amul should sell through both channels. Offline Channels are ~50% and Zomato/Swiggy are 40%.

• Selling through their own website is not a good choice as currently they are dealing primarily B2B on website, so a lot of changes would be required to deal with customers directly.​

Multiple Choice

How are you going to reach out to your customers?

Please Note: Click on the image to zoom in.

• YouTube Advertisements

• Newspaper Advertisements

• TV Advertisements

• Direct contact with the customer through Email, Messaging etc.

Amul should choose YouTube advertisements.

• With YouTube, Amul can reach out to a large number of customers​ and also convince them to actually purchase the product. At a spend of 1 Cr, we can get 10% of 500 million i.e 50 million people to buy the product.

• Although the reach of Email is much more but only 1% of those customers will purchase i.e. 10 million. The reason is that very few people open their promotional emails to read it.

Multiple Choice

If Amul gives you a budget of ₹ 5 crores for 6 months marketing, how many customers will you reach out to using YouTube advertisements?

(Hint: 1 Billion = 1000 million)

Please Note: Click on the image to zoom in.

• 2.5 Billion

• 3 Billion

• 25 Biilion

• 30 Billion

Amul can reach out to 2.5 billion people if they use YouTube ads.

Calculation:

• ​If we reach out to 500 million people using ₹ 1 Crore then, using ₹ 5 Crore we can reach out to 5 times more audience.

• Thus, Amul's reach = 500 million × 5= 2500 million or 2.5 billion

Multiple Choice

If India's total population is 1.4 billion, how is Amul reaching out to 2.5 billion people through YouTube ads?

• YouTube is showing ad to global audience.

• YouTube will count multiple views by same people as multiple people.

• YouTube doesn't actually reach out to 2.5 billion people. Your previous answer was wrong.

• None of these.

​YouTube's reach doesn't increase by 5 times if you spend 5 times more money. It will get expensive to reach every new additional customer when you have already reached 500 million. Hence, you can't multiple reach by 5 times. ​​

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• As you spend more on any channel, its efficacy will reduce.

• So, there is no use of spending ₹ 5 Crore​ on YouTube as the reach would increase only slightly.

• Also, reaching out to global customers is not beneficial for Amul as its new flavour is available only in India.

​Promotional products have longevity. According to statistics 53% of consumers use them once a week or more!

Multiple Choice

Before we promote our product, we need to understand who our customer is?

Can you recall who is the ideal customer for our product: Nutty-Coffee?

• Kids aged 5-12 years old

• Teenagers

• Adults

• Anyone who loves ice cream!

Adults are the ideal customer for Amul's Nutty-Coffee.​

Since, the product contains caffeine a lot of the parents won't allow their children to have it.​

Multiple Choice

What would be your promotional strategy?

• Giving 1 on 1 free scheme

• Giving 10-20% discount

• Tie-up with payment gateways like Mobikwik and Paytm to give discounts on payments

• Giving reward points

Amul ​ should opt for 10-20% discount as their promotional strategy.

• Amul spends Rs. 150 in making a 500mL tub of Nutty-Coffee. If they decide to give 1 on 1 free for a price of Rs. 250, they will have to bear a loss as total cost for two ice-creams will be 150*2 = Rs. 300.

• Tie-up ​with a payment gateway or giving reward points is not possible, as Amul doesn't deal with the customers directly but through its channel partners such as offline vendors.

Poll

On a scale of 1-5 (1 being lowest and 5 highest) how fun was this challenge?

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Poll

On a scale of 1-5 (1 being lowest and 5 highest) how much did you learn from this challenge?

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