Utterly, butterly plus more

The success of the dairy brand's merchandise plans will be decided by a subtle sales pitch: Experts

For half a century, generations have grown up anticipating and admiring the witticisms of the Amul girl, India’s best known ad mascot whose commentary on our pet obsessions like politics, cricket and Bollywood has turned a dairy brand into an unofficial spokesperson for the public. Now with the company planning to launch its own merchandise, the Amul girl is soon likely to go beyond hoardings and enter the personal spaces of consumers. Although the road ahead may seem rosy for a company enjoying unparalleled brand equity, experts caution against making an overt sales pitch and recommend strong retail presence of the merchandise for success.

An official with the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which manages the Amul brand, says the merchandise plan is still in the works. “We are scheduling it two to three months later at the moment, but it depends on the complexity of the product, our partners, vendors, etc.”

According to reports, Amul is likely to kick off its line of merchandise with items such as key rings, fridge magnets and polka dot frocks. The official adds, “The merchandise would include items which are related to our regular use. We are thinking about ways in which we can leverage our current network to promote it and sell it.”

N Chandramouli, chief executive of Trust Research Advisory, says that merchandising here would mean that the label of Amul isn’t a part but the character of the mascot alone is. “The Amul girl is such an icon that everybody recognises her. She just has to say ‘utterly, butterly’ and that is the best way to push the product, mentioning the phrase at the bottom. Using it in a subtle way Amul can move into not only a refrigerator, but also office desktops as it can be a statement of one’s personality.”

The dairy industry in India is a competitive space with private as well as government brands vying for a share. GCMMF registered a 67 per cent rise in its turnover to record Rs 23,004 crore during FY16.

According to Technopak, the size of the branded merchandise industry in India is around Rs 4,500 crore, and it is growing at 12-13 per cent per annum. The market has got merchandise extensions from the dominant kids’ space, film studios catering to teens and young adults and mature ones like automobile. Disney is the largest player in the space.

Chandramouli compares Amul, which is the leading brand, to Maruti which held a lion’s share of the passenger car market in India until the 1990s. However, he argues, Amul enjoys the advantage of consumers looking at the mascot as a friend, a mnemonic object that reminds all of the brand without urging anyone by saying “eat my butter”. In their communication appeal, such subtlety will be the key to success in the merchandise space which could turn out to be ideal gifting items.

Samit Sinha, founder and managing partner, Alchemist Brand Consulting, agrees given that Amul has been an iconic brand for decades it could have leveraged the equity by launching merchandise earlier too. He also feels Amul has maintained a timeless appeal by cleverly communicating advertising messages which are always topical. As a result, even if it may not be a new age brand that is specifically youth-oriented, its appeal cuts across age groups.

He adds it’s important to understand what the territory of Amul’s brand equity is. “Any merchandise which is more family-oriented, which is where the appeal is wholesome and it’s broadly in the area of health would be the best kinds of extensions for them. If they move out of this core territory, they would find it difficult to be relevant.”

Ayan Banik, head, brand strategy, Cheil India, also feels Amul’s unique perspectives on topical issues allow it a good starting point to become a more integral part of the lives of the younger generation. With products like Amul Kool (beverage) the company has tried to broaden its appeal among the young. “Topicality and humour are elements that get the attention of youngsters. The only thing is that they have to take that asset out of hoardings and print ads and make it a part of the everyday part of youngsters. Youngsters love to wear their attitude. Not just T-shirts or magnets, but they could also make mobile phone back covers or a mouse pad. It is a huge opportunity if leveraged the right way, but the youngsters need to see it. It’s a great opportunity to revive the brand and make it a part of the youth lingo,” he adds.

The GCMMF official adds that leveraging the iconic status of the Amul girl is the core thought, but the brand could explore “areas related to milk or the field of sports where we are strong”. “It opens up a lot of opportunities. Right now, we are focused on a few things to begin with.” The merchandise items would be sold across Amul’s 8,000 parlours for a start. However, the official doesn’t rule out the possibility of tying up for online and retail channels.

Chandramouli points out that dairy as a category isn’t aspirational per se, unlike beer for instance where different brands may signify different personality types. As a result, how consumers can relate to a character like the Amul girl is crucial.

Depending on whether the promotion of the merchandise is blatant or subtle, the Amul girl in our personal spaces could be seen as either an “invited or uninvited guest”.

“If they don’t do it well, the merchandising may fail and not impact Amul in any way. But it may impact Amul (dairy products) positively if the merchandising succeeds. A similar iconisation is not possible for any other brand in dairy. Amul is in a unique position.”

Expert Take: Focus on retail distribution

Ayan Banik, Head, brand strategy, Cheil India

Amul’s merchandise plan is a brilliant idea. But the retail distribution of the goods will be a critical factor. There are very few exclusive Amul outlets, so they will need to team up with the right distribution partners. They could explore the quirkiest of brands such as Happily Unmarried and through their online as well as offline channels promote their products in order to gain mass popularity.

They should start off with such a distribution channel, as especially in case of merchandise, word of mouth publicity is the best. Social media also offers an interesting opportunity. There should be visibility of products online as well as offline. They should also make the Amul girl active. For instance, they could outsource to some of the quirkiest graphic designers in order to create consumer interest in the merchandise.