PROJECT REPOR ON

STUDY OF MARKETING OF THE DAIRY PRODUCTS AT

MOTHER DAIRY SUBMITTED IN PARTIAL FULFILLMENT OF BBA PROGRAM

2009-2012

H.N.B GARHWAL UNIVERSITY SRINAGAR

Doon (PG) College of Agriculture Science Technology and Management

Camp Road Selaqui,Dehradun(UK)
Under the Guidance of: Faculty Guide Guide
Mr Manish Baduni Kaushak Chaudary

Industry
Mr.

(Faculty of Finance) SUBMITTED BY:

FIROZ UDDIN

DECLARATION
I here by declare that the Project Report titled MOTHER DAIRY is my own work and has been carried out under the constant guidance of Mr. Kushik Choudhary, and Mr. Manish Baduni, Faculty Member, HNB Garhwal University. Every care has been taken to keep this report error free. I sincerely regret any unintended discrepancies that might have crept into the report. I shall be highly obliged if errors (if any) be brought to my attention. Thank You

Date:

Firoz uddin

Certificate of Completion
This is to certify that the Summer Internship Report on Study on Marketing of the Dairy Products at Mother Dairy prepared by Firozuddin of BBA(2009-12) batch is his genuine effort under my guidance and supervision.

Signature of the Faculty Guide of the Student ( Mr. Manish Baduni ) uddin )

Signature (Firoz-

Preface

Theoretical knowledge is of no use, until and unless it is applied into some practical aspect. We must lay stress on the proper implementation of what we have learned in class at real life incidents to obtain optimum output. Thus to apply all theoretical knowledge gained so far onto the practical field, I have undergone 40 days on the job training at Mother Dairy Fruit & Vegetable Pvt. Ltd. The submission of this project report is the part of the curriculum of MBA course. This project shows the various steps and activities performed in the mother dairy and enlist the key features of the ad campaigns of Mother dairy. Lastly, to study the buying behavior for Mother Dairy products. The report gives a true picture of the importance of advertising and advertising strategy of mother dairy.

Fi roz-uddin

Acknowledgement
This project comes out to be a great source of learning and experience. Lots of efforts have been put to make this project a success. This has been greatly enhanced my knowledge. It gives me immense pleasure to acknowledge my gratitude to Mr.Kaushik Choudhary Mother Dairy Fruit & Vegetable Pvt. Ltd., for accommodating me in the organization and hence enabling me to undertake the study and also providing me with an opportunity to learn from the rich and varied experience of the people I worked with.

I would fail if I would not acknowledge my internal guide Mr. Manish Baduni. Without his continuous help and enthusiasm, the project would not have been materialized in the present form.

Firoz-uddin

Executive Summary
The report is a part of my summer training at mother dairy where I was assigned to enlist the key aspects of the ad campaigns of Mother Dairy and also highlight the key aspects of the campaigns. I have given the company profile in the first chapter followed by the importance of advertising in the present world and then I have discussed the key aspects of Mother Dairy and its campaigns.

Finally I have conducted a survey of Mother Dairy customers to gauge the overall impact of advertisements on their buying behavior. Lastly, I have drawn conclusion based on the research findings and presented the key learning of my summer internship.

Firoz uddin

TABLE OF CONTENTS
PREFACE EXECUTIVE SUMMARY PROFILE OF THE COMPANY Introduction History Product Profile Organizational Chart

 JOB DESCRIPTION Beat The Heat during the month of MAY. Summer Fiesta during the month of JUNE. Difficulties Faced Research Methodology Finding & Analysis CONCLUSION RECOMMENDATIONS ANNEXURE Questionnaire References

Research Objective:
To understand the importance and different types of advertising in the present scenario To understand the key aspects of Mother dairy To enlist the key features of the ad campaigns of Mother dairy To study the buying behavior for Mother Dairy products

Research methodology:
The study is mainly concerned with the Marketing Strategy of Mother Dairy. The main data sources are: PRIMARY SOURCE OF DATA: Primary data refers to the original information gathered for a specific purpose and provides up to date, accurate and relevant information and it is gathered in an investigation according to the needs of the problem. TOOLS USED TO COLLECT THE PRIMARY DATA: The primary data is collected on the basis of survey method with the help of questionnaires, personal observation and direct consultation with the customers. SAMPLE SIZE: It refers to the total number of people surveyed and in the study 150 people were surveyed and responses drawn. SECONDARY SOURCE OF DATA:

The secondary sources of data where various business journals, magazines, newspapers, websites etc.

LITERATURE REVIEW
Indian Dairy Industry: An Overview
Beginning in organized milk handling was made in India with the establishment of Military Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the country on a small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945 Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc. Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk. Milk Production

India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in 2003-04. India is the largest producer of Milk in the World (replacing USA) Per capita availability of milk presently is 231 grams per day, up from 112 grams per day in 1968-69. India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year.

Marketing

In 2004-05, average daily cooperative milk marketing stood at 155 lakh litres, registering a growth of 4.2 percent over 148.75 lakh litres in 2003-04. Dairy Cooperatives now market milk in about 200 class cities including metros and some 550 smaller towns. During the last decade, the daily milk supply to each 1,000 urban consumers has increased from 17.5 to 52.0 litres.

Innovation

Bulk-vending - saving money and the environment. Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail and road milk tankers. Ninety-five percent of dairy equipment is produced in India, saving valuable foreign exchange.

Macro Impact

The annual value of India's milk production amounts to about Rs. 880 billion. Dairy cooperatives generate employment opportunities for some 12 million farm families. Dairy Farming is the single largest contributor to the economy(5% of GDP &13% of employment) Dairy industry represents a huge opportunity being the largest single FMCG Market: Urban market size Rs 33000 Crores and organized sector Rs 11000 Crores representing a huge opportunity for conversion and growth.

Key challenges before Indian Dairy Industry are as follows: Ensuring Quality Procurement and efficiencies in supply chain Product differentiation and value addition

National Dairy Development Board:

The National Dairy Development Board is an institution of national importance setup by an Act of Parliament of India. The main office is located in Anand, Gujarat with regional offices throughout the country. NDDB's subsidiaries include Mother Dairy, Delhi. The major success of this mission was achieved through the World Bank financed Operation Flood, which lasted for 26 years from 1970 to 1996 and was responsible for making India the world's largest producer's of milk. This operation was started with the objective of increasing milk production, augmenting farmer income and providing fair prices for consumers. NDDB has now integrated 96,000 dairy co-operatives in what it calls the Anand Pattern, linking the village society to the state federations in a three-tier structure.

NDDB launched its Perspective Plan 2010 with four thrust areas: Quality Assurance, Productivity Enhancement, Institution Building and National Information Network. The National Dairy Development Board (NDDB) was founded in 1965 to replace exploitation with empowerment, tradition with modernity, stagnation with growth, transforming dairying into an instrument for the development of India's rural people.

NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of "Operation Flood", a programme extending over 26 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements. As on March 2006, India's 1,17,575 village dairy cooperatives federated into 170 milk unions and 15 federations procured on an average 21.5 million litres of milk every day. 12.4 milliion farmers are presently members of village dairy cooperatives. Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. In addition, NDDB also promotes other commodity-based cooperatives, allied industries and veterinary biologicals on an intensive and nation-wide basis. The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organisations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative principles and cooperative strategies.

MOTHER DAIRY
Mother Dairy Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and distribution networks for marketing food items. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It is Mother Dairys constant endeavor to (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and; (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. At Mother Dairy, processing of milk is controlled by process automation

whereby state-of-the-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India. Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy. The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country.

Mother Dairy today reaches Indian homes in myriad forms

Mother Dairy: Milk Campaign

The Milkscape in India:

Total urban milk market in India is in the region of 700 LLPD Bulk of the demand is met by loose milk- 63% While PPM accounts for 37% market share, its growth is stronger and will intensify over time As consumers evolve, trend towards branded packaged milk is imminent as has been the case across all consumer products categories

In the PPM category, cooperative brands hold sway

The key objective: Achieve growth of 15% against current growth of 11%. Identifying the key barriers in consumers switching their brand of milk:
Consumers relationship with milk brands are built around trust and taste We have been having this milk for many years now, and never really had any problem with it Whenever we have tried any other milk, we have not really liked the taste of it- we are used to the taste of the milk we have been having

Consumers really have no reason to change their brand of milk The key is that women perceive no inadequacy in the brand of milk that they buy The milk that I buy is adequate.

The challenge:
Convince the competition consumer that the milk she buys is inadequate

Assure Mother Dairy consumers that the brand they are consuming is more than adequate- it is the best that she can provide her family

Rising to the challenge: By understanding consumers beliefs about and relationship with milk.
There are two truths about milk that consumers have grown up believing in: Milk is good for bones in specific and health in general: Its a truth about milk that is as old as Himalayas! Researches over the years has validated this fact All mothers have grown up believing in this truth Most popularly known benefit is of calcium for bones That milk is fundamental for robust health and well being is manifested in the abundance of good milk archetypes in the country from the mythological Krishna to modern day MS Dhoni- healthy swashbucklers all

Milk is also the primordial conduit to building good character

Transference of values from mother to child via milk The values imbibed in formative years- sanskar sets the moral compass for life At its extreme, is the Doodh ka dhula archetype which is also abundant in our culture from the mythological Ram to modern day Dravid

Addressing the Objective:

Disrupt the consumers belief about her milk brand: Your brand of milk is not adequate for the benefits that you seek from milk Why is that true?

Bulk of the branded milk market is accounted for Toned Milk It is the single largest milk variant sold in the country

It is the dominant variant of most branded players in the country Toned Milk is typically lower in Vitamin A, compared to pure cow or buffalo milk Presence of Vitamin D is insignificant in cow milk and absent in buffalo milk Vitamin D is what helps bones absorb calcium and Vitamin A boosts immunity Low presence or absence of either actually denies the body the benefits of milk as understood and believed by consumers

Mother Dairy Milk is fortified with Vitamin D and Vitamin A which is how the doubts about the adequacy of competitive milk brand gets sowed and assures Mother Dairy consumers that their brand is the best choice.

But, just disrupting the consumers belief about her milk brand is not enough:
We have to build on her belief of what milk means to her and Milk builds character as much as it builds and nurtures the body.

Tapping into a motherhood truth and a societal need :

Mothers want their children to be strong in body and mind Physically, Attitudinally, Morally

The act and ritual of feeding milk is rooted in that desire There is despair today on account of plunging quality of society Venality, apathy, corruption, spinelessness, et al

The mood of the nation today is ardently desirous of a stronger nation Physically, Attitudinally, Morally

Orchestrating the insight elements to arrive at the proposition for Mother Dairy:

Mother Dairy helps you be STRONG IN BODY AND CHARACTER The proposition
87

MOTHER DAIRY CURD CAMPAIGN: An overview of the curd market:

The set curd volume in the top 8 metros is estimated at 3200 mt per day Branded set curd accounts for only 2.5% of that volume, about 80 mt per day Clearly the potential is huge for the category Currently branded set curd as a category is growing @ 15% .

Mother Dairys play in the category:

Mother Dairy launched set curd in Delhi & NCR in 2000 and today commands a dominant share of 60% in this market We launched Curd in the Mumbai market in the summer of 2007 The same year in July we launched b-Activ, the Probiotic curd in Delhi The following year we introduced b-Activ Plus in Mumbai Probiotic curd with added fibre

Today over 15% contribution of our Curd sales come from the probiotic range Currently Mother Dairy is growing in this category @ 28%.

The competitive landscape in the category:

Though Mother Dairy has a presence in only three cities, we are the leaders in the category We are the dominant player in Delhi, but in Mumbai it is Amul Nestle also has a significantly larger share in Mumbai

In Delhi, however Amul and Nestle are significantly lesser players, but together have garnered a 30% share of market Britannia is the other national player of note, but has only around 4% share in both markets

The objective for Curd:

Capture 6% share of total curd potential by end of 2013.

Arriving at the key task for growing the category :

Curd consumption is fairly entrenched in our daily diet repertoire

Its benefits as a digestive aid and as a cooler are well understood Besides, the nourishment and wholesome aspects of curd are also ingrained in our diet culture The need, and the consumption occasion already exist The key task therefore is to drive replacement of home set curd with branded set curd - specifically Mother Dairy Curd

The key drivers of branded set curd:

Convenience remains the single biggest driver of consumption of branded curd It is a boon for those who are hard-pressed for time; for emergency requirements, etc

For some, taste is a driver as well Firm, thick, consistent, not too sour curd is not easy to achieve at home

Hygienic safety is also a driver to some extent

The key barrier for branded curd:

The biggest barrier is the price-value equation of branded curd Home-makers find it hard to justify its consumption on a regular basis It in fact goes against the grains of the thrifty-ness of a typical homemaker Regular purchase of branded curd is too indulgent and even a shirking of responsibility There are barriers such as availability or the inconvenience of frequent stocking, but they are not key

The key challenge:

Give consumers a new reason to re-evaluate her current choice- home set curd

B-Activ Probiotic Dahi

It is a value added curd that a homemaker cannot make at home It justifies the extra money that she shells out to buy Better digestion than what home set curd can do Scientific reason to believe New age solution for newer age living

Helps the homemaker to be seen as sensible and more concerned about her family rather than someone just seeking convenience Going forward, need to keep strengthening our innovation pipeline:

The key to weaning away consumers from home set curd is constant innovation Innovations that add value to the diet and digestion and that cannot be replicated or made at home Mother Dairy has already introduced b-Activ Plus- probiotic curd with added fibres Need to explore value adds such as Vitamins, minerals Functional curds as for weight-watchers, for athletes, for the elderly, etc can be explored as well

Building towards the proposition:

Build on product truth and consumer beliefs: B-Activ dahi is enriched with the BB12 Probiotic strain which helps fight stomach bugs by increasing the good flora in the intestines The strain is hardy enough to withstand the gastric juices to reach the intestines and do good

Consumers know and accept that curd aids digestion and helps to settle the tummy Our b-Activ dahi not only what consumers expect from their dahi- but does it much more effectively.

The proposition:
Mother Dairy b-Active dahi with its BB12 probiotic strain is more efficient and effective in keeping your digestive system healthy

The creative expression:

HAPPY TUMMY TO YOU!

Mother Dairy Chillz Ice-creams

BACKGROUND:
To promote and rebrand Chillz the impulse range of ice cream from Mother Dairy. Targeted towards youth primarily. The vision was to make Chillz stand on its own feet as a brand in the long run. Competition viz. Kwality Walls had taken sensuality as a route, while, Cream Bells had a celebrity endorsement. Unfortunately, Mother dairy did neither have the money nor a brand ambassador to promote their brand.

Business Objective
To empathise and stand for the youth of India in a differentiated way and generate a volume sales of 15 lakh litres for the season.

Issue:
Competition had already captured the mind space of the youth through their strategy of connecting through sensuality and brand ambassadors and pumping in a huge GRP. MD as a brand could not get into a space like this because of its architecture and philosophy. Consumer Insight: The modern youth is considered to be an irresponsible, selfish creature who creates his own world and lives in it. The truth is in every youth, there is a inherent goodness to make his own world better and in the process making the entire world a better place to live in. That is why they light a candle as a mark of protest or drop all inhibitions and start working behind coffee shop counters to make life better.

Communication Challenge:

To salute the goodness inside the youth and stand up as the only brand to do so.

Organising Idea: MD Chillz: The Goodness Inside The Result Volume sales of 19 lakh litres as against annual target of 15 lakh litres for the year. OUTDOOR:

Danglers:

STANDEE:

DANGLERS:

Outdoor:

Lic Lolleez have yet another kind of goodness inside:

Lic Lolleez have the goodness of Vitamin C inside Though in keeping with the target audience- kids, in this case,- it is couched in mischief that kids can vibe with.

POSTER:

Dangler:

Outdoor:

Mother Dairy: Launch of Probiotic category

Opportunity: Curd is an essential part of Indian meal. The perception is that it helps digestion. The truth is the Probiotic delivers on this front. Hence, Probiotic was a natural extension of our portfolio Thus, India saw the introduction of the Probiotic category

B Active

Dahi

Lassi

Probiotic product story:

B Active Probiotic Dahi It is a regular curd with added advantage of unique probiotic Bifidobacterium BB-12, which enhances the bodys natural digestive system and nutrient absorption capability an essential part of diet for todays hectic life

B-Activ Probiotic Lassi It is a tasty, refreshing lassi with added advantages of Probiotic properties, which boosts digestion.

Communication Objective:
To create awareness and propagate the benefits of the new brand amongst the consumers

Issue:
Probiotic an unknown concept in the consumer mindset

Rider:
We have different probiotic strains in our offering- do we own the larger Probiotic story or specific strain heroes

Insight:
Lifestyle of today has lead to eating disorders, which has adverse effect on our digestive system leading to poor health.

Challenge:
Establish Probiotic dahi as an aid to your digestive system

Creative expression:
Happy Tummy to you

Some popular ad campaigns: Launch Ad

Ad for fiber enriched dahi

Leaflet

Poster

Standee

Dangler

Probiotic Milk Drink Nutrifit

Nutrift
Milk based flavoured drink with billions of LA5 friendly bacteria, which strengthens the bodys defenses against infections & diseases over time. Hence building immunity. Launched in mango & strawberry flavour. Kesar ilaichi added later.

Communication Objective:
To garner significant sales of Nutrifit in a short duration from launch, by creating a habit of everyday administration (to their kids) among SEC A1 mothers.

Issue:
Nutrifit is expensive. Mom is value conscious. She will not spend more money for something, unless it offers her a unique, clearly differentiated benefit that she places great value on, and that no other similar product offers her.

Insight:
Moms realizes that her children live in an increasingly difficult, challenging world. She knows that they need something special, to cope with all of lifes challenges. They need an edge. She is on the lookout for anything that can help her give them this edge.

Challenge:
To get moms excited about super-immunity a new weapon that can give their kids the edge to take life head-on.

Super-Immune Kids fall ill less often Creative expression: Small on size. Big on Immunity Ad campaigns: Launch Ad:

Magazine ad:

Outdoor:

Print ads of Mother Dairy

OOH:

STORY BOARDS OF MOTHER DAIRY ADS:

Mother Dairy Milk:

The film opens on three students appearing for a mathematics test with their teachers.

One boy tries to solve a question but finding it difficult leaves it midway.

The second student comes and takes it a little forward but returns leaving it incomplete.

The third one, a girl, takes a sip of Mother Dairy milk and approaches to try her hand.

The teachers look on in surprise as she quickly comes out with the solution.

The ad ends with the shot of Mother Dairy products. Super: Powered by Mother Dairy milk.

Mother dairy chillz ice cream:

The film opens on a guy getting a bouqet made from a florist.

He also buys two cones of Chillz from a Mother Dairy vendor.

With both the things he arrives at a house. On knocking the door...

...an old lady comes out and gets pleasantly surprised to see him. Presenting...

the bouqet and ice creams our guy says, Happy anniversary, Mam.

The teacher notices the birthday note on the bouqet with anniversary spelt wrongly.

Pulling his ears for the carelessness she gently...

.chides him, still spelling mistakes. The ad ends as the...

V O plays, Mother Dairy Chillz. Its all about the goodness inside.

Mother dairy: lic lolleez ice cream

With an ice cream in one hand, a little boy approaches the blackboard in his classroom.

Climbing on a chair the naughty fellow places the duster on top of it.

After arriving in the classroom the teacher looks for duster to clean the board.

Cut to the shot of him getting annoyed on being unable to reach it.

As our boy teases the teacher, the voiceover plays, Mother Dairy Lic Lolleez...

.Jagaye andar ka bandar. The ad ends on the boy offering an ice cream to the teacher.

GROW FASTER CAMPAIGN:

Looking at greenery all around a little girl hugs a tree. Super: Environmentalist?

Next we see another girl offering a sugar candy to a cheerless girl. Super: Social worker?

As the jingle plays in the background let's grow faster, we see a boy engaged in a game...

... of cricket doing balling, batting and fielding all on his own. Super: Allrounder?

Super: The country needs you grow faster.

Super: Mother Dairy. India's no.1 milk brand.

INTRODUCTION:
Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image". For these purposes, advertisements sometimes embed their persuasive message with factual information. There are many media used to deliver these messages, including traditional media such as television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet. Today, new media such as digital signage is growing as a major

new mass media. Advertising is often placed by an advertising agency on behalf of a company or other organization. Definition: Advertising is any paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor.American Marketing Association Advertising consists of all the activities involved in presenting to a non-personal, oral or visual, openly sponsored message regarding a product, service or idea. This message, called an advertisement, is disseminated through one or more media and is paid for the identified sponsor. W.J.Stanton

Importance of advertising:
Advertisement creates demand for the goods and makes it possible for the introduction of mass production. It is not only beneficial to manufacturer but also to retailer and consumers. (I) Benefits To Manufacturers: (a) Advertisement increases demand of the product hence manufacturer can go for latest state of art machinery. This results in improved quality of product and reduction in cost of production. (b) Mass production needs mass selling efforts, which are possible or because of advertisement. (c) Through advertising the manufacturer can create the demand for his product and maintain it throughout the year and thereby reduces seasonal slumps in the business. (d) Advertising also protects manufacturers against unfair competition because customers learn to recognize the brand with the name of manufacturer.

e) Advertising also creates pressure on the retailer to stock goods which have demand. f) Advertising tends to stabilize the selling price and this can create confidence in the public. g) Pushing the goods through salesmen is a slow process and expensive too. Advertising is comparatively less expensive marketing tool. (h) In case of change in products or product features or new outlets, revised price, etc. advertising helps in giving necessary information very quickly to customers. (II) Benefits to Retailers (a) It quickens the return on investment, reduces risk on dead stock and thus can result in proportionate reduction of overhead expenses. (b) Retailer is afraid of fluctuations in prices. Advertising normally aims stabilization of price. (c) Looking at current demand to the product, retailer can easily estimate the sales accordingly plan the stock. (d) It helps the customer to know existence of retailers in their areas and the type of products available with them. (e) Wholesaler or retailer may have his own sales people. The advertising helps these salesmen to sell the product, the awareness about which is already created by advertisement.

(III) Benefits to Customers

(a) The manufacturer is compelled to maintain the quality of the goods advertised. The money spent on advertisement should be taken by him as long-term investment but he is bound to maintain the quality to ensure this return in the future. (b) Advertised goods are generally bear certain quality and thus consumers get the quality matching to the price. (c) Advertising also acts as information and educates the consumers. (d) Advertising stimulates demand thereby increases production and hence reduces the cost per unit. This benefit goes to the consumer. (e) Advertising also makes it possible to sell direct to the consumers by mail order like say Asian Sky Shop. This reduces commission payable to intermediaries and hence lessens the price. (f) As manufacturers control the price of goods and services, the price cutting is not available to more retailers. The only way retailer can get more business is to attract customers by providing satisfactory service or place additional benefits like installment, credit etc. Hence advertising an additional benefit to the consumers. Economic and Social Implications of Advertising (I) Social Implications Advertising is criticized as mentioned below: a) It compels people to buy product and services they do not need. b) It increases the price of goods and services.

e) The claims made by advertisements are always false, deceptive and misleading. d) It is often vulgar. e) It tends to develop monopolies. f) It provokes crime in the society. g) Expensive advertising alone cannot promote a product. h) In a poor country like India, spending the amount in crores of rupees on advertisements is sheer waste of national resources. i) It enhances the disappointment and unhappiness amongst those who cannot buy the product but aspire to use it. j) Due to price wars and ad-wars, manufacturers might declare the discount or price-cut suddenly to wipe out competition. In such cases, the customers who have bought the product before price-cuts have to face disappointment. (II) Economic Implications (a) Advertising is one of the key tools in national economic growth. Some people may however, argue that advertising is economic waste, basing their news on the assumption that the consumers know what they want and that they do not want to subsidize or pay for extra cost of advertising. However, this does not confirm the reality of the work where people need information, to make choices, thus discouraging, price competition. Price competition lowers product prices and also stimulates better products and packaging. This helps raise the standard of living and greater gross national product. Sometimes there are monopoly situation created by industrial giants by sheer force of financial backing. Awareness through advertisement in such cases might help reducing monopoly situations and ultimately passing the benefits to the consumers.

(b) Advertising is a source of information. Economic growth is dependent upon the peoples ability and desires to buy more and different products and as a rational buyer, a consumer wants to optimize the utility of his purchases. This is possible when provisions for informing the consumer about various aspects of existing product are made. Thus the consumer saves a lot of time by knowing more about the product that he wants to buy, instead of spending time in investigation of the product. This is specifically true about the quality of the product which can not be tested visibly or physically. A high quality product ensures brand loyalty, resulting in repeat purchase business. This helps sustaining huge amount spent on advertisement.

5 Ms of advertising:
In developing a program, marketing managers must always start by identifying the target market and the buyers motives. Then they can make the five major decisions in developing an advertising program, known as the five Ms. Mission: what are the advertising objectives? Money: how much can be spent?

Message: what message can be sent? Media: what media should be used Measurement: how should the results is evaluated?

The above mentioned can be explained by the diagram given below: The 5Ms of Advertising Checklist for planning of a marketing or advertising campaign.

What are the objectives? What is the key objective?

Mission

How much is it worth to reach my objectives? How much can be spent? What message should be sent? Is the message clear and easily understood? What media vehicles are available? What media vehicles should be used? How should the results be measured? How should the results be evaluated and followed up?

Money

Message

Media

Measurement

Advertising Strategy:
An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. As Portable MBA in Marketing authors Alexander Hiam and Charles D. Schewe stated, a business's advertising strategy "determines the character of the company's public face." Even though a small business has limited capital and is unable to devote as much money to advertising as a large corporation, it can still develop a highly effective advertising campaign. The key is creative and flexible planning, based on indepth knowledge of the target consumer and the avenues that can be utilized to reach that consumer. Today, most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business: 1) promote awareness of a business and its product or services; 2) stimulate sales directly and "attract competitors' customers"; and 3) establish or modify a business' image. In other words, advertising seeks to inform,

persuade, and remind the consumer. With these aims in mind, most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business.

Stages of Advertising Strategy

As a business begins, one of the major goals of advertising must be to generate awareness of the business and its products. Once the business' reputation is established and its products are positioned within the market, the amount of resources used for advertising will decrease as the consumer develops a kind of loyalty to the product. Ideally, this established and evergrowing consumer base will eventually aid the company in its efforts to carry their advertising message out into the market, both through its purchasing actions and its testimonials on behalf of the product or service. Essential to this rather abstract process is the development of a "positioning statement," as defined by Gerald E. Hills in "Marketing Option and Marketing" in The Portable MBA in Entrepreneurship: "A 'positioning statement' explains how a company's product (or service) is differentiated from those of key competitors." With this statement, the business owner turns intellectual objectives into concrete plans. In addition, this statement acts as the foundation for the development of a selling proposal, which is composed of the elements that will make up the advertising message's "copy platform." This platform delineates the images, copy, and art work that the business owner believes will sell the product. With these concrete objectives, the following elements of the advertising strategy need to be considered: target audience, product concept, communication media, and advertising message. These elements are at the core of an advertising strategy, and are often referred to as the "creative mix." Again, what most advertisers stress from the beginning is clear planning and flexibility. And key to these aims is creativity, and the ability to adapt to new market trends. A rigid advertising strategy often leads to a loss of market share. Therefore, the core elements of the advertising strategy need to mix in a way that allows the message to envelope the target consumer, providing ample opportunity for this consumer to become acquainted with the advertising message. TARGET CONSUMER: The target consumer is a complex combination of persons. It includes the person who ultimately buys the product, as well as those who decide what product will be bought (but don't physically buy it), and those who influence product purchases, such as children, spouse, and friends. In order to identify the target consumer, and the forces acting upon any purchasing decision, it is important to define three general criteria in relation to that consumer, as discussed by the Small Business Administration:

1. DemographicsAge, gender, job, income, ethnicity, and hobbies. 2. BehaviorsWhen considering the consumers' behavior an advertiser needs to examine the consumers' awareness of the business and its competition, the type of vendors and services the consumer currently uses, and the types of appeals that are likely to convince the consumer to give the advertiser's product or service a chance. 3. Needs and Desireshere an advertiser must determine the consumer needsboth in practical terms and in terms of self-image, etc.and the kind of pitch/message that will convince the consumer that the advertiser's services or products can fulfill those needs. PRODUCT CONCEPT: The product concept grows out of the guidelines established in the "positioning statement." How the product is positioned within the market will dictate the kind of values the product represents, and thus how the target consumer will receive that product. Therefore, it is important to remember that no product is just itself, but, as Courtland L. Bovee and William F. Arens stated in Contemporary Advertising, a "bundle of values" that the consumer needs to be able to identify with. Whether couched in presentations that emphasize sex, humor, romance, science, masculinity, or femininity, the consumer must be able to believe in the product's representation. COMMUNICATION MEDIA: The communication media is the means by which the advertising message is transmitted to the consumer. In addition to marketing objectives and budgetary restraints, the characteristics of the target consumer need to be considered as an advertiser decides what media to use. The types of media categories from which advertisers can choose include the following:

PrintPrimarily newspapers (both weekly and daily) and magazines. AudioFM and AM radio. VideoPromotional videos, infomercials. World Wide Web. Direct mail. Outdoor advertisingBillboards, advertisements on public transportation (cabs, buses).

After deciding on the medium that is 1)financially in reach, and 2) most likely to reach the target audience, an advertiser needs to schedule the broadcasting of that advertising. The media schedule, as defined by Hills, is "the combination of specific times (for example, by day, week, and month)

when advertisements are inserted into media vehicles and delivered to target audiences."

ADVERTISING MESSAGE: An advertising message is guided by the "advertising or copy platform," which is a combination of the marketing objectives, copy, art, and production values. This combination is best realized after the target consumer has been analyzed, the product concept has been established, and the media and vehicles have been chosen. At this point, the advertising message can be directed at a very concrete audience to achieve very specific goals. Hiam and Schewe listed three major areas that an advertiser should consider when endeavoring to develop an effective "advertising platform":

What are the product's unique features? How do consumers evaluate the product? What is likely to persuade them to purchase the product? How do competitors rank in the eyes of the consumer? Are there any weaknesses in their positions? What are their strengths?

Most business consultants recommend employing an advertising agency to create the art work and write the copy. However, many small businesses don't have the up-front capital to hire such an agency, and therefore need to create their own advertising pieces. When doing this a business owner needs to follow a few important guidelines. COPY: When composing advertising copy it is crucial to remember that the primary aim is to communicate information about the business and its products and services. The "selling proposal" can act as a blueprint here, ensuring that the advertising fits the overall marketing objectives. Many companies utilize a theme or a slogan as the centerpiece of such efforts, emphasizing major attributes of the business's products or services in the process. But as Hiam and Schewe caution, while "something must be used to animate the theme care must be taken not to lose the underlying message in the pursuit of memorable advertising." When writing the copy, direct language (saying exactly what you mean in a positive, rather than negative manner) has been shown to be the most effective. The theory here is that the less the audience has to interpret, or unravel the message, the easier the message will be to read, understand, and act upon. As Jerry Fisher observed in Entrepreneur, "Two-syllable phrases like 'free book,' 'fast help,' and 'lose weight' are the kind of

advertising messages that don't need to be read to be effective. By that I mean they are so easy for the brain to interpret as a whole thought that they're 'read' in an eye blink rather than as linear verbiage. So for an advertiser trying to get attention in a world awash in advertising images, it makes sense to try this message-in-an-eye-blink route to the public consciousnessbe it for a sales slogan or even a product name." The copy content needs to be clearly written, following conventional grammatical guidelines. Of course, effective headings allow the reader to get a sense of the advertisement's central theme without having to read much of the copy. An advertisement that has "50% Off" in bold black letters is not just easy to read, but it is also easy to understand.

ART WORK AND LAYOUT: Small business owners also need to consider the visual rhetoric of the advertisement, which simply means that the entire advertisement, including blank space, should have meaning and logic. Most industry experts recommend that advertisers use short paragraphs, lists, and catchy illustrations and graphics to break up and supplement the text and make the document both visually inviting and easy to understand. Remember, an advertisement has to capture the reader's attention quickly. ADVERTISING BUDGET: The advertising budget can be written before or after a business owner has developed the advertising strategy. When to make a budget decision depends on the importance of advertising and the resources available to the business. If, for instance, a business knows that they only have a certain amount of money for advertising then the budget will tend to dictate what advertising is developed and what the overall marketing objectives will be. On the other hand, if a business has the resources available, the advertising strategy can be developed to meet predetermined marketing objectives. For small businesses, it is usually best to put together an advertising budget early in the advertising process. The following approaches are the most common methods of developing an effective budget. All the methods listed are progressive ones that look to perpetuate growth:

Percentage of future or past sales Competitive approach Market share All available funds

The task or objective approach

The easiest approachand thus the one that is most often usedis the percentage of future or past sales method. Most industry experts recommend basing spending on anticipated sales, in order to ensure growth. But for a small business, where survival may be a bigger concern than growth, basing the advertising budget on past sales is often a more sensible approach to take.

Different types of advertising:

Advertising is the promotion of a companys products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows: Increasing the sales of the product/service Creating and maintaining a brand identity or brand image.

Communicating a change in the existing product line. Introduction of a new product or service.

Increasing the buzz-value of the brand or the company.

Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising. Mentioned below are the various categories or types of advertising: Print Advertising Newspapers, Magazines, and Brochures The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper.

Outdoor Advertising Billboards, Kiosks, Tradeshows and Events Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor

advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the companys products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. Broadcast advertising Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles.

Covert Advertising Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment show. Surrogate Advertising Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising. Public Service Advertising Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field

for a social cause. Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes." . Today public service advertising has been increasingly used in a noncommercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel.

Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.

Advertising campaign:
Steps For Advertising Campaign

First step to be consider when developing advertising campaign is Identification of the target audience. It is very important to understand your audience and what are their needs. There researchers job becomes crucial to understand the mind of the audience that advertisement could be related to specific target. Second step is to establish message and budget objectives. Objectives for message and budget have to be steady.

Message objectives have to informative, persuasive and reminding. Budget objectives has to be set to allocate affordable percentage of the money that can be spend on that particular advertise. Third step is to Design ad. Creativity is a big part of this step. There has to be combination of what to say and how to say it in the end meeting the desired objectives. Art directors, copywriters, photographers play a major role in this step. Fourth step of the advertising process is to Pretest what add will say. The purpose of this step is to try to minimize mistakes. It can be done be testing the reactions before add is placed for truth function. Research has to be done to be sure that products market, consumers and competitors are correctly defined. Copy testing is done in this step, to measure how effective add is. Fifth step is to choose the media(s) type and media schedule. Aperture (the best window) has to be determined in this step. It is crucial to know when and where the target audience can be reached. Perfect timing of the message delivery is the main role in this step. Final sixth step in this process is to evaluate the advertising. In this step has to be determined that advertisement is effective and it going to serve the purpose. The impact of the message has to be set to its highest potential. Post testing is a best way to do it. Communication about the product it self and what has to be sad about it is a very important detail for company to succeed at advertising.

ADVERTISING AGENCY:
An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An

agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign.

Types of advertising agencies

Full-service agencies
Most full-service agencies work on a combination of fee-based and commission based compensation. The fee is paid by the entity for which the marketing is being done. The commission is a payment from the media to the agency and is usually equal to 15% of the cost of the advertisement. The broadcast media, radio and television, traditionally pay a commission. Full-service, or media-neutral advertising agencies produce work for many types of media, creating integrated marketing communications, or through-the-line (TTL) advertising. The "line", in this case, is the traditional marker between the media that pay a commission to the agency and the media that do not. Full-service agencies are also known as traditional advertising agencies for the client, wherein the client satisfies almost all their advertising or promotional needs with the same organization. This type of agency provides advertising services such as strategic planning, creative development, production, media planning, media buying, and other related services such as sales promotional, direct selling, design, and branding, etc.

Interactive agencies
Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The 'digital space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile).

Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, Web 2.0 website design and development, elearning Tools, email marketing, SEO/SEM services, PPC campaign management, content management services, web application development, and overall data mining & ROI assessment. The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace, Facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing. Tradigital agencies Tradigital agencies are advertising agencies who are experts in both traditional and digital advertising. They offer the best of both worlds and are very useful in todays digital age where all campaigns now require both online and above-the-line advertising. These agencies often buy out digital agencies. Now more then ever traditional agencies are looking for a door into the digital world. They are often the only way to extend your brand across all the numerous mediums of todays markets. Social media agencies Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites,

Q&A sites, discussion forums, microblogs etc. The two key services of social media agencies are:

social media marketing online reputation management

Agency departments
Creative department The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-byproject basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry-level positions, as well as for operations and maintenance. Account services The other major department in ad agencies is account services or account management. Account Services or account management is somewhat the sales arm of the advertising agency. An account executive (one who works within the account services department) meets with the client to determine sales goals and creative strategy. They are then responsible for coordinating the creative, media, and production staff behind the campaign. Throughout the creative process, they keep in touch with the client to update them on the ad's progress and gain feedback. Upon completion of the creative work, it is their job to ensure the ad's production and placement.

Creative services The creative services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can.

Job description

Advertising account executives act as a link between clients and the advertising agency. They usually report to an account manager and are responsible for the day-to-day running of their clients' campaigns. They liaise between the client and a range of agency staff in order to coordinate the details of advertising campaigns. Advertising account executives work closely with their clients throughout campaigns, managing administrative and organisational work, and ensuring that this is completed on time and on budget. The role can involve handling the accounts of three to four clients or, in larger agencies, just one or two accounts. Typical work activities Typical work activities revolve around the running of advertising campaigns. Tasks typically involve:

Discussing the products, services and advertising requirements of each particular client; setting up meetings with clients and other agency staff; delegating work to other members of the agency team; working with the account manager to brief media, creative and research staff, and assist with the formulation of marketing strategies; liaising with, and acting as the link between, the client and advertising agency by maintaining regular contact with both, ensuring that communication flows effectively; overseeing the status of advertising campaigns; negotiating with clients and agency staff about the details of campaigns; presenting creative work to clients for approval or modification; meeting deadlines and prioritising tasks;

handling budgets and managing campaign costs; writing reports, keeping records and financial details; helping to secure new business; undertaking administrative tasks; becoming familiar with the nature of clients' products, business culture and competition and understanding the possibility of changes to these; monitoring the effectiveness of campaigns;

SURVEY ANALYSIS
1. Which of the following Mother Dairy brands/products are you aware of? Milk Curd Ice-cream Juices Vegetables Frozen Vegetables Ghee Lassi Butter Pickles Jam Vegetable Oil Cheese 150 150 97 69 121 78 99 150 150 88 88 63 47

160 140 120 100 80 60 40 20 0 Milk

150 150 121 97 69 78 99

150 150

88

88 63 47

Curd Frozen Vegetables Pickles

Ice-cream Ghee Jam

Juices Lassi Vegetable Oil

Vegetables Butter Cheese

Awareness about daily products is higher than other products. But as all the products are sold through company franchised outlets most of the respondents were aware of the products of MDIL.

2. How often do you consume Mother Dairy Products? Daily 150 Occasionally 0 Never 0

Never

0 0 150 0 20 40 Daily 60 80 100 Never 120 140 160 Occasionally

Occasionally

Daily

All the products of MDIL are consumed on daily basis by respondents that include milk, curd, butter etc.

3. How often do you purchase the Mother Dairy products?

Daily Milk Products Vegetables Frozen Products Jam, Pickles, etc

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Daily Milk Products 150 78

Once a week 21 39 -

Fortnightly 22 21 88

150 78 18 -

18

39

88

21 21 22 Once a week Vegetables Frozen Products Fortnightly Jam, Pickles, etc

The purchase frequency of the respondents in shown in above graph its the highest for milk products. MDIL is known to be a milk products company.

4. Factors you consider while purchasing a Mother dairy products RANK THEM ACCORDING YOUR PRIORITY:

Packaging 98

Quality 143

Brand 145

Shelf Life 112

Price 81

Availability 117

160 140

143

145

112 120 100 80 60 40 20 0 Packaging Quality Brand Shelf Life Price 98 81

117

Availability

The above bar graphs list the factors that matter the most in affecting the purchase decision of respondents.

5. Listed below are statements about shopping behavior for Mother Dairy Products. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement.
Agre e I buy the products I like, regardless of other available brands I buy new products only when they are well accepted. I am not as concerned about other products as I am about price and quality. I prefer to buy known brands rather than take a chance on something new. I am confident that I have good choice for consumer products.
Impact of Brand on Buying Behaviour Neither Agree Nor Disagree 19%

Neither Agree Nor Disagree 29 97 9

Disagre e

121 28 141 150 150

25

New Product & Buying Behaviour

Disagree 0%

Disagree 17%

Agree 19%

Agree 81%

Impact of Price and Quality

Neither Agree Nor Disagree 64% Existing Brand Vs. New Brand

Neither Agree Nor Disagree 6%

Disagree 0%

Neither Agree Nor Disagree 0%

Disagree 0%

Agree 94%

Agree 100%

Consumer Brand Choice

Neither Agree Nor Disagree 0%

Disagree 0%

Agree 100%

6. Who influence you to purchase the brand? Family Friends Advertiseme nt 145 19 78 98 Self Other

Self

98

Advertisement

78

Friends

19

Family

145

As evident from above the influence of the family members is the highest.

7. In which media you have seen the advertisement of Mother Dairy products? TV Magazine Billboard and hoardings 86 12 13 Newspape r 21 0 18 Internet Other

Newspaper 14%

Internet 0%

Other 12%

Billboard and hoardings 9% Magazine 8%

TV 57%

Mother Dairy ads are mostly visible on TV followed by Newspaper.

8. Which of the following would affect your choice of Mother Dairy Products? No effective at all Quality Price Promotional campaigns
100%

Affecting the most 150

49 69

101 81

67% 54% 46% 33%

No effective at all Quality Price

Affecting the most Promotional campaigns

The most important factor affecting the buying decision for MDI products is quality.

9. What is our opinion towards Mother Dairy Products? Decision No. of Respondents Excellent Good Average Poor 45 80 20 5

13%

3% 30%

54%

Excellent

Good

Average

Poor

30% of the Respondents rated that Mother dairy products are excellent.54% of the respondents rated as good and 13% of the respondents rated as average quality. 3% rated that Mother dairy products are of poor quality.

RESPONDENT PROFILE
Gender: Male 11
Male 7%

Female 139

Female 93%

Occupation: Occupation Businessman Executive Government Service Academics House-Wife Self-employed Student Others No. of Respondents 12 36 31 6 45 4 4 12

Self-employed 3%

Student 3%

Others 8%

Businessman 8% Executive 24%

House-Wife 29% Academics 4%

Government Service 21%

Monthly Household Income: <10000 11 10000-15000 19 15000-20000 46

<Rs.10000 7% >Rs. 20000 49%

>20000 74

Rs. 1000015000 13%

Rs. 1500020000 31%

FINDINGS & CONCLUSION:

First, I would like to present my survey findings. The main findings of my surveys are as follows:

Milk and Milk products are having high demand and are considered as essential products. Most of the people were aware about daily products of mother dairy like milk, curd, ice cream etc.

The products of MDIL are consumed on daily basis by respondents that include milk, curd, butter etc. The purchase frequency of the respondents as shown in the above graph is maximum for milk products. The main purchasing factors for Mother Dairy products are quality & brand image are considered important factors. Quality and brand image plays a dominant role. Milk and Milk products move in the market due to its quality and brand. The buying behavior indicates that the majority of the respondents buy the mother dairy products regardless of other available brands. It also indicates that the people buy only well accepted products. The buying behavior also indicates that the people are more concerned about the price, quality of the products and the brand name. As evident from survey the influence from the family members and advertisements were the highest.

 Mother Dairy ads are mostly visible on TV followed by Newspaper, magazine and hoardings. The most important factor affecting the buying decision for MDI products is quality as compared to price and promotional campaigns. Majority of the Mother dairy products are rated as good quality. Gender plays a vital role in the purchase decisions. Females are the main decision maker for the milk and milk products. Milk and milk products purchase decisions are more decided by women rather than male, because she acts as an invigilator, execute her decision and influence the same to purchase while ascertaining the quality, freshness and price. The occupation of the user influences the purchase decisions. The particular occupation plays a vital role in deciding the product or services. Women segment are influencing more on milk and milk products. Therefore, an occupation is the factor influencing the products. Income of the people decides the purchasing power. The high income prefers to purchase product with quality, freshness etc. Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The co-operative is also expanding its product portfolio further to match rival offerings -

particularly those of Amul. For the first 22 years of its existence, liquid milk was the only dairy product that Mother Dairy offered. It was in 1996 that it came up with ice-creams. But the real spurt came about four years ago, when it introduced curd, flavoured milk, lassi and mishti doi. It introduced butter a year-and-a-half ago; ghee and UTH milk a year ago; and cheese, about 10 months ago. And under its frozen foods and vegetables brand Safal, besides the introduction of corn and mixed vegetables, it has plans to come out with frozen potato-based snacks in a few months. So while the product portfolio has been growing, Mother Dairy has plans for reach out to newer markets - but the strategy here is more product-specific. In liquid milk, it will initially concentrate only on four markets - Delhi, its home ground; the Junagarh region and Ahmedabad in Gujarat; Mumbai, which it entered a year ago; and Hyderabad, where it moved in a little more than a year ago. "The objective of getting into newer locations is not to make Mother Dairy larger, but to ensure that there is a large viable distribution network and consumer brand to take care of surplus milk . In ice creams, it was only two years ago that Mother Dairy entered its first market outside Delhi - UP and Punjab. Today, it's extended its operation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad and Bangalore. In the case of butter and cheese, it's present across north India, Mumbai and Kolkata, and has plans to enter Bangalore by yearend. In UTH milk, it has entered Mumbai and the milk-short areas of West Bengal and north-east. For ghee, although the current focus is the northern region, it has plans for a nationwide presence. As far as Mother Dairy's non-dairy products are concerned, edibleoil brand Dhara has already has nationwide presence.

Product differentiation While Mother Dairy still may not have a product portfolio as large as Amul, which is also expanding across the country in a big way and is a much bigger player, it's doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those markets - which means bigger market shares in the different product categories in whichever market it is present. The drivers will be value created through quality of the offerings as well as innovations in products. This will, of course, be backed by relevant marketing and promotion campaigns. Citing the example of ice creams, " The differentiation for the consumer comes in taste and quality." The Indianised flavours have done exceptionally well, something that the co-operative has constantly focused on. Apparently, its best-seller in take-home ice creams is not the regular Sundae, Jamaican Almond Fudge or Hazelnut Swril, but an Indianised Sundae called Shahi Mewa Malai. Mother dairy is bringing in mass Indian flavours which are building up in terms of absolute percentage of contribution. The attempt is to make the taste experience in ice creams as familiar as possible so as to increase consumption." Take the case of curd. It started off very slow but today, Mother Dairy claims it's growing at close to 60 per cent year-on-year in Delhi. Here again, the Indian flavour formula seems to have worked. "While curd from an MNC player is probably based on international formulation, we formulated it to taste as close to home-made curd as possible. If your offering fits well with the Indian consumer, the resistance is lower and acceptance more," says Mother Dairy's CEO. Smart marketing

On the marketing front, Mother Dairy says it's trying to take its product campaigns and communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits - milk is good for health, it has calcium and so on - but rather it targets children and are created around ideas such as "The country needs you, grow faster". The TVC wants children to achieve their ambitions faster. That the product is pure or healthy is a given for us,". As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular UtterlyButterly campaigns. Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador. While Mother Dairy has been carrying out school programmes games and activities - involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata as well. It also runs a gaming website on the character to attract children. It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheros - through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken. Cheese was also something that helped the company bond better with its retailers. Retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer him anything worth Rs 20 from the shop - which worked better than

offering something free with the product, which the consumer didn't even needs.

ANNEXURE
QUESTIONNAIRE
(Tick whichever applicable) 1. Which of the following Mother Dairy brands/products are you aware of? Milk Ice-cream Vegetables Ghee Butter Jam Cheese 2. How often do you consume Mother Dairy Products? Daily Occasionally Never Curd Juices Frozen Vegetables Lassi Pickles Vegetable Oil

3. How often do you purchase the Mother Dairy products?

Daily Milk Products Vegetables Frozen Products Jam, Pickles, etc

Once a week

Fortnightly

4. Factors you consider while purchasing a Mother dairy products

RANK THEM ACCORDING YOUR PRIORITY: Packaging Brand Price Quality Shelf Life Availability

5. Listed below are statements about shopping behavior for Mother Dairy Products. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement. Agree Neither Agree Nor Disagree Disagree

I buy the products I like, regardless of other available brands I buy new products only when they are well accepted. I am not as concerned about other products as I am about price and quality. I prefer to buy known brands rather than take a chance on something new. I am confident that I have good choice for consumer products.

6. Who influence you to purchase the brand? Family Advertisement Other 7. In which media you have seen the advertisement of Mother Dairy products? TV Magazine Friends Self

 Billboard and hoardings Newspaper Internet Other 8. Which of the following would affect your choice of Mother Dairy Products? No effective at all Quality Price Promotional campaigns Affecting the most

9. What is our opinion towards Mother Dairy Products? Excellent Good Average Poor

Respondent Profile
Name: Age: Sex: Male Female

Occupation: (tick one) Businessman Executive Government Service Academics

House-Wife Self-employed Student Others ________________________(Please Specify) Monthly Household Income: <10000 10000-15000 15000-20000 >20000

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