Spending less on marketing is Amul’s winning formula; here’s why it spends only 1% on ads

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Published: May 7, 2019 4:51:39 PM

Compared with other leading brands which spend nearly 8-15% on endorsements, Amul’s strategy is to keep the advertising spendings low.

The leading FMCG brand Amul does not spend much on advertisements with only 1% of its total spending aimed at marketing, Amul’s MD RS Sodhi said. Even the iconic butter girl figure, which has become a household name with its pun commentaries on topical issues, costs 4-5% of the company’s total ad spend, RS Sodhi revealed without disclosing the actual advertisement number.

“Our FMCG spend is not like other food brands. It is less than one per cent of our total spendings. In the last five years, it has been 0.8%. The reason is, we do umbrella branding. We do not have many genres and we sell everything under Amul’s name. Amul’s is a one-child theory. We spend the least in nurturing of the brand,” Amul MD, RS Sodhi said on the sidelines of a company event.

Compared with other leading brands which spend nearly 8-15% on endorsements, Amul’s strategy is to keep the advertising spendings low. “Other brands spend 8-15% on advertisement… We don’t believe that by spending more, you can build the brand,” RS Sodhi said upon being asked the company’s average marketing spends.

Sticking to the campaigns

Amul’s marketing strategy is not just limited to less spending. When it comes to creating brand campaigns, cooperation sticks to its tried and tested catch phrases. “We turn to our brand strategy agencies and tell them to think lifelong while creating an advertisement,” RS Sodhi said.

Also Read: Amul — Hunter or Prey? New Tru juices may put the fate of brand at stake

Amul does not want to change the strategy in the near future either. With more than 52 years of the ‘Utterly Butterly Delicious’ campaign, the company has found its winning formula with brand marketing and intends to stick with what has captured the consumer imagination for so long. “‘Amul Doodh Peeta hai India’ has completed 15 years, ‘Amul the Taste of India’ has been in the market for 25 years, once we create, we adhere to it,” RS Sodhi said.

The leading FMCG brand Amul has recently announced its collaboration with Afghanistan cricket team for the upcoming ICC World Cup. The company looks to leverage the Afghanistan market for its products as it is one of the 15 global markets in which Amul products are sold.  

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