Amul’s advertising spends is less than 0.8% of annual turnover: RS Sodhi, Amul

Announcing Amul as the principal sponsor for Afghanistan cricket team at the upcoming ICC Cricket World Cup 2019, Sodhi, shared insights on the partnership and more

RS Sodhi

India’s major Dairy brand Amul has joined hands with the Afghanistan cricket team as the principal sponsor for the upcoming ICC Cricket World Cup 2019. The logo of brand Amul will appear on the leading arm of Afghanistan team as well as on the training kits throughout the World Cup, which is slated to begin from May 30 to July 14, 2019. The company boasted an annual sales turnover of Rs 45,000 Crores (US$ 6.5 billion) in the year 2018-19.

According to R S Sodhi, Managing Director, Amul, “The main reason behind this partnership is to satisfy our need of communication because nowadays for a FMCG brand it is becoming difficult to reach the target audience, especially youth as they are not available on television and print but are inclined towards sports, and cricket is at a craze with ICC world cup being the biggest event in the category. We were looking for such opportunity to get our brand associate at the world cup.” This is the third time that Amul is sponsoring a cricket team in the world cup; the brand has earlier associated with teams like New Zealand and Netherland.  

When asked, If the brand is planning to roll out a campaign around the ICC world cup, and what kind of ROI they are expecting, he said, “We are in touch with our advertising agency to see how we can take benefit from this association and nobody can predict or calculate the ROI, it is very difficult, such partnerships are only done to build your brands’ image building.”

He also said, Amul’s advertising spend is less than 0.8 per cent of their annual turnover.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), markets dairy products under Amul brand, exports around Rs 200 crore worth of products annually to the neighbouring country.

Speaking further on how the advertising genre has changed with the boom of digital platforms, “Advertising has been changed tremendously over the years. For media planners, it has become difficult to come out with effective and calculative media plan all the time. Social media is becoming popular, but like BARC there is no way where you can judge the performance based on the social media platforms,” he opined.

The Amul has made a remarkable position in the advertising fraternity for its topical, sarcastic and witty ads at every point by the little Amul Girl. It has followed the same approach for many years, yet it is working for the brand. Sodhi said, “Give me an example where brand recall is throughout the campaign. If you look at the other brands, you’ll recognise them by their products but Amul has been completely different from others, because it’s the consistency in communication.”

He also said, “Our iconic advertisements like ‘Amul Doodh Pita hain India’, Amul The taste of India, Utterly Butterly Delicious will remain the same, we won’t change the positioning statement of any of these products.”

The brand has not restricted itself only to milk products, as it has expanded into various product segments, “The main reason of entering into other segments is for learning purpose. Our main emphasis has always been on Dairy and will remain so but the objective is to get into other newer categories where dairy is involved like chocolates and beverages."

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