Question

Topic: Customer Behavior

Failure Of Amul Pizza

Posted by Anonymous on 8/21/2009 at 6:47 AM ET 250 Points
Why did AMUL Pizza failed in the Indian market despite huge promotion campaigns and investments. Was it a wrong marketing strategy or a wrong judgement of consumers' behaviour?
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RESPONSES

  • Posted by Gary Bloomer on 8/21/2009 at 9:44 AM Member
    Right now, a series of blue and red flashing lights are strobing away to the chimes of an alarm, deep in a concrete bunker located way, way underground in Marketingland.

    The alarm sounds a little like this: AAARRRROOOOGAAA! AAARRRROOOOGAAA! AAARRRROOOOGAAA!

    Accompanying the sound is a computerized voice of icy, metallic calm. That voice sounds like this: "Red alert! Red alert! This is not a drill. Repeat: This is not a drill! WARNING! WARNING! Homework alert! Danger Marketing Profs!"

    At least, having Googled your name, that's what I can hear.

    But in answer to your question, why not think about it for a moment.

    I urge you to do this because few things say "Taste of India" quite like pizza!

    So, why do YOU think Amul's foray into the pizza business failed? Look at the following link and see if you can't figure it out for yourself.

    The results might surprise you (and your tutors), and, because you'll have done the research on your own, it will be more satisfying.

    https://www.amul.com/products.html

    Gary Bloomer
    Wilmington, DE, USA
  • Posted by Gary Bloomer on 8/26/2009 at 11:21 AM Accepted
    Dear vinesh.elavana,

    Amul pizza failed because the pizza portion of Amul's business
    model did not match its core strengths or the major brand areas
    it's recognized for.

    This lack of connection created a lack of significance. Imagine if Volkswagen suddenly started making yogurt, or Ben and Jerry's suddenly started offering cell phones or cable TV.

    There's no connection for either company with their proposed (but fictional) goods or markets. So when a company with no history in a sector suddenly begins offering something in that sector, in the minds of shoppers, there's suddenly consumer disparity between what's known and expected, and what is being presented.

    This creates a discordant feeling for the customer, and when customers don't feel comfortable, they don't buy.

    Gary Bloomer
    Wilmington, DE, USA
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