REPORT: RELAUNCH STRATEGY FOR AMUL PIZZA
Far away from the pizza hubs of the metros, in remote Surat to be precise, Amul was brewing an ambitious plot without much ado. The co-operative first opened 10 pizza parlors in Gujarat. Amul then planned to scale up operations in a year by setting up 2,000 such parlors in 100 cities. What was crucial to the entire game was PRICING. Amul was then currently test-marketing a basic capsicum, onion, tomato pizza at just Rs. 20, which could well change the contours of pizza consumption in the country.
Basically it looked like Amul has adopted this radical strategy to expand the consumption of mozzarella cheese, a core ingredient that goes into the making of pizzas. "We are the biggest cheese brand in India and it is time we leveraged this strength,” Mr Vyas (MD-Amul) explained. The pizza parlours will not be very big in size. An ordinary retail shop, which is strategically located, could also get into an arrangement with Amul. The entire project is based on the franchisee model. Amul will ire pizza consultants who in turn will train franchisees. The co-operative will also provide them with equipment, technical inputs and promotional support.
Amul was hopeful that the right mix of product quality and affordable price will lead to a demand explosion and could perhaps lure customers away from the established pizza chains. Besides eating into their market shares, this was a strategic move towards forward integration into the fast food segment. "Instead of waiting for the pizza market to grow, we decided to create a new mass market ourselves, "Mr Vyas said.
Once the demand for mozzarella cheese takes off, Amul plans to stimulate the demand for cheese slices by extending the product line.
Keeping pace with the new age corporate world of backward integration and diversification, Amul started selling pizza to market its cheese and was now talking about frozen foods.
WHY AMUL ENTERED THE PIZZA...