Wednesday, 3 August 2011

Amul Stamina: Learning from Competition

When Amul first launched its milk- based energy drink, Stamina, in 2006, the product did not succeed. Consumers were at the centre of the product and the lack of success was attributed to:

Ø  Low awareness about the product among consumers
Ø  Consumers’ hesitation to try out a new concept: a milk-based energy drink
Ø  Medicinal taste of Stamina
Ø  Preference of consumers’ towards other sports drinks

Going by the success of Red Bull, the points of learning for Amul are as follows:
     Initiative of the marketing team to tap key consumer outlets (in the case of Red Bull : clubs and trendy bars). Amul representatives should seek to tap gymnasiums and centres for other physical activities to create an impact. Also, they can choose sportsmen and athletes as an important target segment.
       Exclusive distribution --- As in the case of Red Bull, Amul can choose to have prominent distributors who sell only Amul’s products. This will create a stronger push in favour of the new product with the involvement of a dedicated distribution channel.
      Shelf Positioning --- The new product Amul Stamina should be placed prominently in distribution outlets to catch the attention of customers. The benefits associated with the use of Amul should be highlighted by means of promotional features.
         De-centralization of sales units --- If sales units are decentralized, there will be better focus on a city-to-city basis. The responsibility then falls on each unit to create distribution, promote the product effectively and develop targeted marketing plans.

Learning from Pepsi’s Gatorade, Amul can adopt the following to promote Stamina:
  •       Effective demonstration --- The perceived benefits will gain credence if the effects of the drinks are physically demonstrated in a convincing manner before the eyes of potential consumers. This will lead to a stronger word of mouth promotion of the drink.
      Product Endorsement --- Amul can choose to have prominent athletes and sportsmen as brand endorsers who will promote the product and will explain the benefits of using the product as realised by means of their personal experiences.

Hence, the path ahead for Amul Stamina to capture the consumer market lies in:
ü  Reaching out to the consumers’ with demonstrative examples and product endorsers
ü  Project Stamina as a differentiated and beneficial consumer product
ü  Prominent shelf positioning of the product
ü  Focus on individual sales units on a citywise or regional basis
ü  Dedicated distribution channel
ü  Marketing teams to develop and execute target plans

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