While other brands spend 8-15% – Amul spends less than 1% of its total expenses on advertising.
Yet the iconic Amul Girl is probably one of the most recognizable advertisements in the country - so, what seems to be Amul’s golden formula for cost-effective advertising?
1. Umbrella branding:
One thing that sets Amul apart is that it markets the brand, not individual products - this is called umbrella branding.
You’ll notice that most of the Amul Girl comics are pitching the brand Amul to you, instead of particular products that they offer, say, dark chocolate or cheese slices. This way, Amul is able to cut down advertising costs immensely.
2. Simplicity & Relevance:
The Amul Girl was created for two reasons – one, as a rival to the then-popular “Polson’s Butter Girl”. And two, to stand out from the erstwhile corporate seeming ads back then.
Even now, they continue to maintain this simplicity, resulting in the cost-effective advertising strategy that we see today.
Another key element is Amul’s moment marketing - i.e. their topical Amul Girl advertisements. In fact, they have been doing these (and doing it well) for the past 53 years! Whether it be politics, social issues or cinema - you can count on Amul to stay relevant & deliver.
3. Sticking to their guns:
Amul has been in the business since the 1940s and having decades of experience, the company is known for sticking to its tried and tested campaigns - be it Amul Girl (56 yrs) or “Amul Doodh Peeta Hai India” (18 yrs).
It has also stuck to its tagline “the taste of India” for a long 27 years! This continues to keep the costs low, all the while being memorable across generations!
All of this has helped Amul become the giant it is now, clocking a ₹61,000 Cr turnover in FY21-22.
What are your thoughts on Amul’s advertising strategy? Let us know in the comments!
If you are a salaried employee, then congratulations!
You already have ₹7 lakh worth of FREE life insurance.
Here’s how.👇
[A thread...]
Well, kudos to the Employees' Deposit-Linked Insurance (EDLI) scheme. Under EDLI, all folks with an EPF account are eligible for free life insurance cover.
For those unaware, EPF stands for Employee Provident Fund—a retirement benefits scheme under which monthly contributions are made by the employee and employer to the employee's EPF account.
It gives you wiiings, sponsors F1 teams and football clubs, and even made a man jump to Earth from the edge of Space.
But, it doesn’t produce any of its products.🧵
So, how did Red Bull earn a 43% market share, and earn a whopping EUR 7.816 bn as revenue in 2021 - without owning a single manufacturing plant?
The short answer? Red Bull outsources the production of its popular energy drinks, and focuses on just one thing: marketing.
Red Bull spends around 30-35% of its revenues on marketing. Its rivals are far behind - Pepsico, Nestle, and Coca-Cola spent only 4.4%, 7.8%, and 8.4% respectively in 2020.
India saved an astonishing Rs. 41,000 crores in Foreign Exchange this year!
How, you ask?🧵
Well, India has been working hard to reduce its dependency on foreign oil. And one of the most promising alternatives has proven to be — Ethanol.
Unlike petrol, ethanol is a renewable energy source generated by processing plant components. And using ethanol-blended petrol has a direct relation to saving up on foreign exchange.
What do Kit Kat, Nike, Krispy Kreme, KFC, and Starbucks have in common?
Well, they’re all a product of a neuromarketing technique called the K effect. Meaning, they all either have the letter K, or the K sound in their brand names.
But what’s so magical about this letter? 🧵
You see, branding practitioners are often looking for something unique to make their product stand out - and the letter K delivers. It’s one of the least common letters in the English Dictionary.
Secondly, it’s believed that sounds are able to subconsciously transfer meaning. This is called sound symbolism. For instance - an athletic brand tends to sound rugged, like Reebok; while a personal care brand usually sounds soft, like Dove.
Pepsi ran an advertising campaign where people were given 2 cups - one filled with Pepsi & the other with Coca-Cola, without revealing which was which. 🧵
The blind tasters were asked which one they preferred. Surprisingly, more than half chose Pepsi, even though Coke had a much higher market share.
This disparity was baffling, so in 2003, a neuroscientist called Read Montague decided to get to the bottom of it. He assembled some test subjects and recreated the blind taste test while monitoring their brain activity.
When Shinzo Abe stepped in as Prime Minister in 2012, Japan’s economy was in crisis. Its GDP growth rate had tumbled to -4.3%.
Abe had his work cut out for him and he needed to shock the world’s third-largest economy back into action - and lo and behold, Abenomics was born. 🧵
The plan was to get the multiple levers that drove the Japanese economy to work together. Fiscal Policy, Monetary Policy and Structural Reforms, all working in unison, to achieve one common objective — Growth.
While you might contest that virtually every country aspires to do the same things, Japan’s economic problems were rather unique.