GCMMF juices up, looks to leverage the Amul brand in a new market

The dairy major pitches its newly launched juice label as a healthy snacking alternative, bets on recall and trust of its flagship brand

Come summer and there is usually a flurry of high pitched campaigns and new launches from the ever-growing assembly of juice-cola brands in the country. This year is no different—using the ongoing Indian Premier League as a launching pad, a number of new variants of colas and flavours for juices have hit the shelves. However in the midst of the din, with little fanfare and no major campaign to mark its entry, Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) has launched Amul Tru, its first venture into the blended fruit juices market and yet another extension of its mother brand, in a new format and segment.
 
Brand Amul, the company said, evoked trust and recall, which it expects will help Tru carve a niche for itself. It does not intend to spend a big amount on branding and promotions because it hopes to leverage the brand pull that Amul has and also because it is working with wafer-thin margins in the market, having priced the product at Rs 10.
 
But is the strong recall and affinity of the mother brand enough to beat the clutter in a new market?
 

Launched in Gujarat last month, Amul Tru will soon be retailed across the country. It is aiming at the mass market consumer and is priced at Rs 10

The juices and blended juices market has an assortment of brands in play, there are veterans such as Dabur (Real), PepsiCo (Tropicana), Coca-Cola (Minute Maid), ITC (B Natural) and Mother Dairy (Safal) apart from small labels such as PaperBoat and Raw Pressery. Brands have made a beeline for the segment given its rising popularity among the young. According to Euromonitor International, a market research provider, the blended juice market that Amul has stepped into grew 10.2 per cent in volume terms and close to 16 per cent in value in 2017-18, as compared to 6.5 and 10.3 per cent in 2016-17
 
R S Sodhi, managing director of GCMMF says that Tru is different from the fare available in the market.
For one, it is a  blended product (fruit and milk, which according to him is a unique offering). Second it comes with the Amul tag attached and hence bears the trust of millions who use its dairy products.
 
“The other USP is pricing and packaging. With 180 days shelf life, the product does not need refrigeration until opened. And the Rs 10 price point for a 200ml bottle,” he said, “would be a big draw.”
The company has targeted Rs 4,000 crore in revenue from the beverage business in the next 2-3 years and Tru will be one of its major drivers. Sodhi said that the company has collaborated with Almond Branding for brand building, packaging, and communication.
 
Harish Bijoor, founder of Bijoor Consults said that Amul Tru will draw immense benefits from the mother brand. “Amul (the brand name) creates an instant recall of good value and quality,” he said while pointing out that the company did not really need a big campaign. He sees the extension as a clever move because it does not stray too far from the dairy portfolio while allowing it a foot into a rapidly expanding segment.
 
Tru has been launched in Gujarat and will be expanded to the rest of the country soon, leveraging the 10,000-odd distributors and nearly ten lakh retailers that GCMMF has across the country. Given its price point, the company is planning to make it available at general trade, pan shops, bakeries, highway outlets, schools, institutions and canteens among other such outlets.