1

CERTIFICATE

This is to certify that ABHISHEK VOHRA, student of Jagan Institute of

Management Studies has successfully completed his report under my guidance. His
subject to study was “Marketing Strategy of Mother Dairy” . The work is original and
had not been submitted anywhere else. All resources of information and help have duly
mentioned and acknowledge.

Project Guide

Sugndha Sharma

(Assistant Professor)

2
 ACKNOWLEDGEMENT
Project work is never the work of an individual. It is more a combination of views,
ideas, suggestions, contributions and work involving many individuals. This project
report forms an integral part of our curriculum.

I would like to pay my sincere regards to MRS. SUGANDHA SHARMA (My Project
Guide) whose wisdom words and teaching had guided me during the preparation of this
report. This could not have been possible without his guidance. I express my gratitude
for his continuous support without which this project could not have reached a
successful completion.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me opportunity to utilize their resources for the completion of
the project.

I am also thankful to my family and friends for constantly motivating me to complete

the project and providing me an environment which enhanced my knowledge.

(ABHISHEK VOHRA)
BBA (GENERAL) 6thSEMESTER

3
 DECLARATION

This is to declare that the report titled “SUPPLY CHAIN MANAGEMENT WITH
SPECIAL PREFERENCE TO MOTHER DAIRY” which is submitted by me in partial
fulfillment of the requirement for the award of Bachelor Of Business Administration to
Jagan Institute of Management Studies, Delhi comprises only my original work and has
not been submitted in part or full for any other degree or diploma of any university.

(ABHISHEK VOHRA)

4
 CHAPTER 1
INTRODUCTION

1.1 Overview of the industry

India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO
regulations expected to come into force in coming years all the developed countries
which are among big exporters today would have to withdraw the support and subsidy
to their domestic milk products sector.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents,
compared with the U.S' 63 cent. Also to take advantage of this lowest cost of milk
production and increasing production in the country multinational companies are
planning to expand their activities here. Some of these milk producers have already
obtained quality standard certificates from the authorities. This will help them in
marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum to around Rs.83, 500 crores by year 2010. This growth is going
to come from the greater emphasis on the processed foods sector and also by increase in
the conversion of milk into milk products. By 2011, the value of Indian dairy produce is
expected to be Rs 10,00,000 million. Presently the market is valued at around
Rs7,00,000mn

5
1.2 MOTHER DAIRY OVERVIEW

"MotherDairy" is the single largest brand of milk in India as well as in Asia, marketing
about 2.2 million litres of milk per day. Mother Dairy commands 40% market share in
the organized sector in and around Delhi, primarily because of consistent quality and
service – whatever be the crisis - floods, transport strike, curfew etc. Mother Dairy,
Patparganj, Delhi, is presently manufacturing& selling around 8.5 lakh litres of toned
milk through bulk vending shops.

Mother Dairy, Delhi is an IS/ISO - 9001:2000 and Hazard Analysis Critical Control
Points (HACCP) and IS-14001:1996 Environment Management System (EMS)
Certified organization .Mother Dairy was the first Dairy in the country to implement
ISO-14031 (Environment Performance Evaluation) project.

The National Dairy Development Board (NDDB) commissioned Mother Dairy in the
first phase of Operation Flood in 1974. Considering the success of Dairy industry
NDDB established Fruit& Vegetable Project in Delhi in 1988 with "SAFAL" as its
umbrella brand.

With a view to separating the commercial activities from developmental activities, the
NDDB merged Mother Dairy and the Fruit & Vegetable project into a wholly owned
company named Mother Dairy Fruit & Vegetable Ltd (MDFVL) in April 2000. This
becomes the holding company of Mother Dairy India Ltd (MDIL) – a marketing
company and Mother Dairy Foods Processing Ltd (MDFPL) – a processing company.

MDFPL is a multi-unit company, with units at various locations in India. Mother Dairy,
Delhi is one of the units of MDFPL .The company is a highly trusted house hold name
for its wide range of milk products like Milk, Flavored Milk, Ice-Cream, Dahi, Lassi,
Table Butter, Dairy Whitner, Ghee etc. The application for the award is being made for
Mother Dairy, Delhi unit.

Mother Dairy has received "Best Productivity Performance" award for three
consecutive years starting from1987-88 to1989-90 and again from1995-96

6
to1997-1998 from National productivity Council and accommodations Certificate for
Rajiv Gandhi National Quality Award, National Energy Conservation Award - 2004,
Oil and Gas Conservation Award - 2004, Indian Innovation Award - 2004 and Safety
Initiative Award - 2005.

Over the years, Mother Dairy has not only served the daily need of milk of the
consumers of Delhi, it has also extended its milk to other States like Haryana, Uttar
Pradesh, Maharashtra, Andhra Pradesh & Gujarat and is expanding its wings rapidly to
serve the masses.

7
1.3a)SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

Strengths:

Demand profile: Absolutely optimistic.

Margins: Quite reasonable, even on packed liquid milk.

Flexibility of product mix: Tremendous. With balancing equipment, you can keep on
adding to your product line.

Availability of raw material: Abundant. Presently, more than 80 per cent of milk
produced is flowing into the unorganized sector, which requires proper channelization.

Technical manpower: Professionally-trained, technical human resource pool, built over

last 30 years.

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk
long life. Surely, many new processes will follow to improve milk quality and extend
its shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher
income to rural milk producers should automatically lead to improvement in milk
yields.

Logistics of procurement: Woes of bad roads and inadequate transportation facility

8
make milk procurement problematic. But with the overall economic improvement in
India, these problems would also get solved.

Problematic distribution: Yes, all is not well with distribution. But then if ice creams
can be sold virtually at every nook and corner, why can’t we sell other dairy products
too? Moreover, it is only a matter of time before we see the emergence of a cold chain
linking the producer to the refrigerator at the consumer’s home!

Competition: With so many newcomers entering this industry, competition is becoming

tougher day by day. But then competition has to be faced as a ground reality. The
market is large enough for many to carve out their niche.

Opportunities:

"Failure is never final, and success never ending”. DrKurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-on,
and now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are
looking for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Given below are potential areas of value addition:

Steps should be taken to introduce value-added products like shrikhand, ice creams,
paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and
flexibility in the market place along with opportunities in the field of brand building.

Addition of cultured products like yoghurt and cheese lend further strength - both in
terms of utilization of resources and presence in the market place.

A lateral view opens up opportunities in milk proteins through casein, caseinates and
other dietary proteins, further opening up export opportunities.
9
Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and
dairy products in particular.

Threats:

Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of
place in the industry. Organized dissemination of information about the harm that they
are doing to producers and consumers should see a steady decline in their importance.

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well only when you
have three essential ingredients: entrepreneurship (the ability to take risks), innovative
approach (in product lines and marketing) and values (of quality/ethics).

The Indian dairy industry, following its delicensing, has been attracting a large number
of entrepreneurs. Their success in dairying depends on factors such as an efficient yet
economical procurement network, hygienic and cost-effective processing facilities and
innovativeness in the market place. All that needs to be done is: to innovate, convert
products into commercially exploitable ideas. All the time keep reminding yourself:
Benjamin Franklin discovered electricity, but it was the man who invented the meter
that really made the money!

10
 1.3 b) SWOT ANALYSIS OF MOTHER DAIRY

STRENGTHS WEAKNESS

 The major strength of the Mother Dairy is the
different variety of Milks and a recognized
BRAND name.
 Scarce Mother Dairy Outlets.
 Fewer Margins given to the Outlet owners to
match the existing competitors.

 The increasing demand for these products

presents a great opportunity for the Mother
Diary to increase and scale up the production.

OPPORTUNITIES THREATS

 There is a scope of business as there is a

 Strong marketing muscle by competitors.
demand for dairy products.
 Mother Dairy should open more outlets to get
 Unstable economic condition in India.
the maximum advantage of the demand.
 Need to put more stress in the face-to-face
direct marketing to reach to the customers.  Other competitive brands.
 The increasing demand for these products
presents a great opportunity.

11
1.4 Problems Faced by the company
The nature of competition varied among the different products. In the case of liquid
milk, competition was from private dairies and contractors. There was also competition
from newly emerging private dairies that had started supplying milk to the consumers
as well as sweet makers.
There was intense competition for the supply of milk, which was sought after,
especially in the festival seasons, by the sweet makers who derived large profits from
the sale of their sweets.
 Consumers were generally not very particular about the brand of liquid milk, so
that the sales depended to a large extent on dealer push. However, there was
scope to establish differentiation through apprising the customers of the quality
not only of the initial milk itself, but also the quality of the supply chain, which
ensured the stability of milk.
 For butter and cheese, new entrants were making their mark. Britannia, a firm
engaged in manufacture and sale of biscuits, had entered into foods business,
and more particularly in milk and milk related products such as butter.
 Britannia had introduced new forms of cheese such as cheddar cheese slices,
and supported its products with extensive advertising campaigns. It was
believed that advertisements played a powerful role in the demand for particular
brands of butter and cheese. The sweet market was highly fragmented, with
numerous small time local operators producing their own brands and unbranded
forms of sweets. The sales of sweets soared in the festival seasons, drawing
milk supply by offering higher prices.
 Other food companies such as Hindustan Lever Ltd. (HLL), a subsidiary of
Unilevers, and Nestlé had also entered into the business of ready made or near
ready sweets. Branded ready or near ready sweets were advertised and heavily
promoted through campaigns such as through mail orders to housewives.
 The ice creams market was an emerging market in India, witnessing the entry of
numerous players. The national scene was dominated by Hindustan Lever with
its Kwality and Walls brands, accounting for about 45 percent of the market.

GCMMF was the other national player, with about 30 percent of the market.
There were, in addition, very powerful regional players such as Vadilal Ice Creams in

12
the Western India who commanded substantial (in excess of 30 percent) of the regional
market shares. Icecreams were largely promoted through local promotions, hoardings
(billboards) and advertisements. It could be expected that these companies would also
expand their operations

1.5 Competitors

1. AMUL

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement
in India. It is a brand name managed by an apex cooperative organization, Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned
by some 2.6 million milk producers in Gujarat, India.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with
an annual turnover of US $1050 million (2006-07) [4]. Currently Amul has 2.6 million
producer members with milk collection average of 10.16 million litres per day.

Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African
countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has
fresh plans of flooding the Japanese markets [5]. Other potential markets being
considered include Sri Lanka.

2. GOPALJEE

The Gopaljee Group is Delhi's third largest liquid milk player. The Rs200-crore group's
company, G.K Dairy (GK), is expanding its product portfolio. Having made an entry
into flavored milk and paneer markets, GK also plans to introduce curd under the
Gopaljee brand.

13
3. PARAS DAIRY

This organization involved in quality milk collection practices since 1960. A very
strong rural procurement network comprising of more than 3000 villages across
western Uttar Pradesh in North India arising after immense infrastructure investment in
the rural areas by the organization.

Five state of the art manufacturing units complying with ISO 9001-2000 and HACCP
standards of system implementation.Total handling Capacity 1.9 million ltrs a day .
Largest marketier of Polypack milk in Delhi in corporate sector. First player in private
sector to offer Homogenized toned milk through automatic milk vending machines and
FRP tanks in North India. A major exporter of edible grade casein and other milk
products It sells 3 lakh LPD.

4. Delhi Milk Scheme (DMS)

DMS was set up in 1959 with the primary objective of supplying wholesome milk to
citizens of Delhi at reasonable prices, as well as for providing remunerative prices to
milk producers. Manufacture and sale of milk products like Ghee, Table Butter,
Yoghurt, Paneer, Chhachh and Flavored Milk is also undertaken as an allied activity.

The initial installed capacity of Delhi Milk Scheme was for processing/packing of 2.55
lakh litres of milk per day. However, in order to meet the increased demand for milk in
the city, the capacity was expanded in phases to the level of 5.00 lakh litres of milk per
day. It includes custom packaging of 60,000 litre per day of Mother Dairy Milk by
DMS.

14
Market Chase Analysis of Major Milk Brands

GRAPH-3.1

It is clearly visible through the above graph, Mother dairy and Amul are tough
competitors. Mother dairy holds 42% of the market share while Amul being next in the
queue captures 39% of the milk market.

They prevail vigorously as they deal in n numbers of different milk products but other
brands do contribute in this milk market share i.e. Paras holding 10%, Gopaljee with
6% and Delhi Milk Scheme capturing 3% of the Milk market

15
 CHAPTER 2
RESEARCH METHODOLOGY

2.1 Significance of Study

A complete market analysis is acornerstone of a successful marketing and advertising
campaign. All too often companies neglect performing a thorough market analysis
and are left to the bleak alternative of guesswork. Market analysis provides an
analytical approach to answering some of your companies most difficult questions:

· Who are our customers?

· How competitive is the current market landscape?
· How risky is entering this market?
· How efficient are our branding efforts?

Most businesses start on a hunch that a product or service could sell or be beneficial to
someone. That may have been enough to launch your idea off the ground, but in order
to keep your business thriving, it’s important you get accurate and concise answers to
these questions.

16
 2.2 Scope of study

1. Diagnosing the current situation or problem based on detailed information.

2. Clearly identifying competitive strengths and weaknesses.

3. Constantly analyzing what is happening in the market place.

4. Planning to watch company’s strengths with market opportunities by outlining

objectives for product and market development and devising strategies and tactics to
achieve them.

5. Watching out continuously for threats to the achievement of those plans.

6. Monitoring the progress of strategy implementation.

7. Research creativity, at its best, marketing research develops innovative ways to solve
problems. The main objective of marketing research is to enable manufacturers to make
goods acceptable and saleable and to see that they reach the market more easily,
quickly, cheaply and profitably without sacrificing consumer interest..

17
 2.3 OBJECTIVES OF THE STUDY

* Assessing the milk market of ET-5

* Assessing Mother Dairy’s position in the territory vis-à-vis other brands.
* Assessing the different parameters on which the sales of product varies.
*Assessing the reasons of low sales volume of Mother Dairy’s milk in places of central
Delhi.
* Suggesting remedial course of action for Mother Dairy India Ltd.

Objectives and Business Philosophy of Mother Dairy

The main stakeholder of Mother Dairy was the farmer member for whose welfare it
existed. Unlike other organizations, their objective is not to maximize the profit. They
are more interested in giving the best price for the farmers for their milk than in making
a large profit. Thus they look at the price given to their suppliers as not a cost but as an
objective.

Mother Dairy had, as its main objective, “carrying out activities for the economic
development of agriculturists by efficiently organizing marketing of milk and dairy
produce, agricultural produce in raw and/or processed form and other allied produce”.

This was to be done through:

 Common branding
 Centralized marketing
 Centralized quality control
 Centralized purchases and
 Pooling of milk efficiently

Mother Dairy had declared, as its business philosophy, the following:

 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;

 Uphold institutional structures that empower milk producers and farmers

18
 through processes those are equitable.
The biggest strength of Mother Dairy was the trust it had created in the minds of its
consumers regarding the quality of its products. NDDB, and its brand Mother Dairy,
stood for guaranteed purity of whatever products it had produced.

Adulteration was simply not done in any of its products. In India, where such trust was
hard to come by, this could provide a central anchor for Mother Dairy’s future business
plans. For more than 40 years' Mother Dairy helping to create a national network has
been adapted and extended to other commodities and areas.

19
2.4 RESEARCH METHODOLOGY

In the light of above, the objectives of this study are:

* Assessing the milk market of parts of Delhi.

* Assessing Mother Dairy’s position in the territory vis-à-vis other brands.

* Assessing the parameters due to which the sale of the product varies.

*Assessing the reasons of low sales volume of Mother Dairy’s milk in places of
central Delhi.

* Suggesting remedial course of action for Mother Dairy India Ltd.

Research Design adopted

DESCRIPTIVE RESEARCH
The chosen for this research is descriptive, as it’s essentially a fact finding approach
related largely to the present.

Design in this case is quite rigid and focuses attention on the following:

 What the study is all about and why is it being made?

 What technique of gathering data will be adopted?

 How much material will be needed?

 Where can the required data are found?

 Processing and analyzing the data.

 Reporting the findings.

20
 SAMPLE PLAN / SAMPLE DESIGN
Sample Method: Non- Probability Sampling (judgment sampling)
Non Probability sampling does not provide every item of the universe a known
chance of being included in the sample. Judgment is one in which items for the
sample are selected deliberately by the researcher includes only those items in the
universe which he considers important to him.
Sample Size:The sample size is 50.
Sample Unit: Local retailers and customers of places of central Delhi.

SOURCES OF DATA COLLECTION

* PRIMARY DATA- Primary data has been collected from people in the initial
market by filling up semi- structured questionnaires and through meeting with the
customers.

DATA COLLECTION INSTRUMENT

Semi- structured Questionnaires
Questionnaires used are semi- structured , as these use a mixture of questions- open
ended, dichotomous and multiple choice i.e. those with pre decided answers as well
as those where the respondents are free to express their own views. Questionnaires
so prepared intend to gather the information from personnel of different areas of
concern.

21
 2.5 LIMITATIONS OF THE STUDY

 Incorrect response by the respondents in the questionnaires would lead to wrong

interpretation and analysis.
 Customers sometimes don’t respond to the visits made to them.
 At times respondents are not ready to listen, due to which the message cannot be
conveyed.

Some local retailers are not responsible enough, which leads to the dissatisfaction of
customers.

22
 CHAPTER 3

CONCEPTUAL DISCUSSION

Milk Production

India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in
2007-08.
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 2007-08, average daily cooperative milk marketing stood at 155 lakh litres,
registering a growth of 4.2 percent over 148.75 lakh litres in 2006-07.
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 Farming is the single largest contributor to the economy(5% of GDP &13% of
employment)

23
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.

Analyzing the product - Milk

Milk- An almost complete food

Milk is not only an excellent source of Calcium, which is vital for strong bones and
teeth; it also contains many other vital nutrients like:

Protein: For growth and repair of body tissues.

Carbohydrates: In the form of lactose.

Fat: For energy.

It also contains Vitamins needed for good health; Vitamin A, B1, B2, B3, B12, FOLIC
ACID and Vitamin D are all found in significant quantities in milk.

A glass of milk provides 50% of the daily intake of calcium required by teenagers

Milk Production

THE UPSIDE

Increasing awareness:

As India enters an era of economic reforms, agriculture, particularly the livestock

sector, is positioned to be a major growth area. The fact that dairying could play a more
constructive role in promoting rural welfare and reducing poverty is increasingly being
recognized.

For example, milk production alone involves more than 70 million producers, each
raising one or two cows/buffaloes. Cow dung is an important input as organic fertilizer
for crop production and is also widely used as fuel in rural areas. Cattle also serve as an
insurance cover for the poor households, being sold during times of distress.

24
Supply matches demand:

Efforts to increase milk production by dairy farmers are strongly influenced by the
degree to which demand signals are transmitted through the marketing system.

Cooperatives have played an important role in transmitting the message of urban

market demand to them. Since the demand in the urban scenario is rapidly increasing so
is the supply generated by the farmers.

Surplus capacity:

Further, the new dairy plant capacity approved under the Milk & Milk Products Order
(MMPO) has exceeded 100 million lpd (liters per day). The new capacity would
surpass the projected rural marketable surplus of milk by about 40 per cent by 2005
AD.

THE DOWNSIDE
Technological gaps:

Several areas of the dairy industry can be strengthened by the induction of

state-of-the-art technologies from overseas. Those who bring in new technologies or
sign joint ventures with foreign companies stand to benefit the most. To make the best
out of the present situation, the following areas require immediate remedial action on
the part of dairy entrepreneurs:

Raw milk handling needs to be upgraded in terms of physiochemical and

microbiological attributes of the milk collected. The use of clarification and
bactofugation in raw milk processing can help improve quality of the milk products.

Better operational efficiencies are needed to improve yields, reduce waste, minimize
fat/protein losses during processing, control production costs, save energy and extend
shelf-life. The adoption of Good Manufacturing Practices (GMP) and HACCP would
help manufacture milk products conforming to international standards and thus make
their exports competitive.

Latest packaging technology can help retain nutritive value of packaged products and
extend their shelf-life. For proper storage and transportation, cold chain needs to be

25
 CHAPTER 4
RESEARCH ANALYSIS
HOUSEHOLDS
Analysis: INCOME GROUPS
INCOME GROUPS and use of Mother Dairy Milk.
INTERPRETATION
It shows that people falling in higher income group i.e. 19%, are maximum in numbers
who do not consume MD milk whereas lower income group are the major consumers of
MD Milk with 28% of Total Consumers. So the higher income group can be the target
for action.
Analysis:Graph showing QUALITY as an important parameter QUALITY

Quality- A Parameter

80%
70% 20%
60%
50%
%age of
40%
Consumers 58%
30%
20% 16%
10% 6%
0%
Quality as a Quality not as a
Parameter Parameter
Donot Use MD Milk
Parameter
Use MD Milk

Graph: 4.1.2
INTERPRETATION
It shows that Quality is the most important parameter that effects the buying decision of
consumers. Out of total households surveyed 36% were not consuming MD milk since
they are not satisfied with the quality of MD milk. And the 64% consumers who
consumed Mother Dairy Milk are very much cautious about the Quality of the product.
These were the findings in the area of Narayana and Patel nagar.
Analysis: AVAILABILITY

26
Graph showing ease of AVAILABILITY as an important parameter.

Ease Of Availability

70%
60% 8%
Number of 50% 24%
Ease of Availability
consumers(i 40% 7%
30% 10% not Imp.
n %age) 20% 32%
19% Ease of Availability
10%
somewhat imp.
0%
Use MD Donot Ease of Availability
Milk Use MD Important
Milk
Milk Usage

Graph: 4.1.4
INTERPRETATION
It shows that ease of availability is also an important parameter that plays a role in
effecting consumers buying decision. Out of 64% of MD users, 32% prefers ease of
availability as the most important parameter. And 19 % of Non- users feel availability
as important either they were getting the milk they were consuming on their doorsteps
or it was available near to their house.These were the findings in the area of
AnandParvat, which was a hilly area and there was no MD booth there.
Analysis: PRICE
Price as an important parameter.
INTERPRETATION
It shows that price being one the parameter that effects the buying decision of
consumers is least effective in major areas. Out of 36% of sample size those who are not
consuming MD milk, 31%consider Price as not at all important.
But there are areas where Price is still the most important parameter. These areas are the
areas of Karol Bagh, Regarpura. In these areas price is still the most important factor
and hence its importance cannot be ignored in these areas.
Analysis: REASONS FOR DISCONTINUATION

27
The following Pie chart shows the major reasons of discontinuing MD milk by a sample
that was earlier consuming MD milk.

quality

2% taste
7% 3% 1%
availability
14% 52% price

21% still consuming md

never tried

others

Graph: 4.1.6
INTERPRETATION
The major of discontinuing the use of MD milk is Quality. Majority of people
discontinued MD milk due to quality problems followed by taste, then availability and
last price.
Analysis: SATISFACTORY LEVEL
The graph shows the SATISFACTORY LEVEL of Retailers.

28
 Satisfaction Level

60
50
40 40
%age of
30
Retailers 44 Not Satisfied
20
16 Satisfied
10
0 0
Have MD Donot Have
Milk Md Milk
Use of MD Milk

Graph: 4.2.2
INTERPRETATION
Out of the total retailers surveyed 56% of Retailers were stocking MD milk but out of
these 56 only 16 Retailers were fully satisfied with the services of the company and the
sales they were getting. 40 were still having some or the other problems.
44% of Retailers who were not stocking MD milk were not at all satisfied with the
company, which is why they were not stocking MD milk.
Analysis: PROBLEMS

29
The Pie shows the PROBLEMS faced by Retailers.

Problems faced by
Retailers

8 2
12 40
3
4 20
5
6

supply
back date
low margin
no return
no Interaction with Co.
staff misbehavior
Graph: 4.2.3
INTERPRETATION
Major problem being faced by Retailers was due to SUPPLY PROBLEM. The
distribution channel is not at all satisfying.
INSTITUTIONAL
Relating to formulated by or managed by institution. Governments often implement
institutional programs such as subsidized housing and welfare programs for
unprivileged citizens. Higher educational facilities also offer institutional programs
such as grants, scholarships and work study options for students. Anything institutional
will consists of certain rules and regulations that must be abided by in order to
participate in program.

30
Analysis: The important parameter i.e. TASTE for the institutional consumers.
INTERPRETATION
According to the institutional consumers, who consume milk as an Input for their
production of sweets (like sweet shops, restaurants etc) consider TASTE as the only
and the most important parameter that effects their buying decision. Out of 50% only 16
consume packed milk rest 34 consume loose milk as they perceive it to be fresh and of
better taste.

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 CHAPTER 5

FINDINGS

 It shows that people falling in higher income group i.e. 19%, are maximum
in numbers who do not consume MD milk whereas lower income group
are the major consumers of MD Milk with 28% of Total Consumers. So
the higher income group can be the target for action.

 It shows that Quality is the most important parameter that effects the
buying decision of consumers. Out of total households surveyed 36% were
not consuming MD milk since they are not satisfied with the quality of MD
milk. And the 64% consumers who consumed Mother Dairy Milk are very
much cautious about the Quality of the product.

 It shows that ease of availability is also an important parameter that plays a

role in effecting consumers buying decision. Out of 64% of MD users,
32% prefers ease of availability as the most important parameter. And 19
% of Non- users feel availability as important either they were getting the
milk they were consuming on their doorsteps or it was available near to
their house.These were the findings in the area of AnandParvat, which was
a hilly area and there was no MD booth there.

 It shows that price being one the parameter that effects the buying decision
of consumers is least effective in major areas. Out of 36% of sample size
those who are not consuming MD milk, 31%consider Price as not at all
important. But there are areas where Price is still the most important
parameter. These areas are the areas of Karol Bagh, Regarpura. In these
areas price is still the most important factor and hence its importance
cannot be ignored in these areas.

32
 The major of discontinuing the use of MD milk is Quality. Majority of
people discontinued MD milk due to quality problems followed by taste,
then availability and last price.

 Out of the total retailers surveyed 56% of Retailers were stocking MD milk
but out of these 56 only 16 Retailers were fully satisfied with the services
of the company and the sales they were getting. 40 were still having some
or the other problems. 44% of Retailers who were not stocking MD milk
were not at all satisfied with the company, which is why they were not
stocking MD milk.

 Major problem being faced by Retailers was due to SUPPLY PROBLEM.

The distribution channel is not at all satisfying.

 According to the institutional consumers, who consume milk as an Input

for their production of sweets (like sweet shops, restaurants etc) consider
TASTE as the only and the most important parameter that effects their
buying decision. Out of 50% only 16 consume packed milk rest 34
consume loose milk as they perceive it to be fresh and of better taste.

33
 CHAPTER 6

RECOMMEDATIONS

HOUSEHOLDS:
Areas of Narayana Vihar and Patel Nagar
People have a high consideration for QUALITY and they think MD Milk is low in
quality and is also yellowish in color.

Recommendation:
Company should try to conduct camps and awareness programmes in these areas to
overcome this thinking of people.

Areas of Karol Bagh and Regar Pura

People in these areas have PRICE as the most important factor which effects their
decision to consume.

Recommendation:
If the company can achieve its target in this area by keeping low margin and by
reducing the price then the sales in this area can improve drastically because in this area
the income level of households is not very high.

Areas of AnandParvat and Baljit Nagar

This area being a HILLY Area is the most challenging job for any company to serve.
People want MD Milk here but there are no booths in this area.

Recommendation:
If the company can open its Booth in this area it can be the leader as no other company
has its booth in this area except GOPALJEE. The sales can improve to a very big extent
from this area alone since there is demand but no availability.

34
  MOTHER DAIRY should also launch certain schemes for Households. It has
schemes for Retailers but not for households. This section being the major user
of milk and in order to enter into a new area such starting schemes can be very
helpful.

 Demand and Visibility go hand in hand. If MD can do certain promotions as its

competitor AMUL does, then it can attract sales. Promotion with the help of
boards, hoardings etc.

 Lastly in case of Households the company should maintain a proper

communication with the Localities or Areas facing problem.

RETAILERS AND MD RETAILERS:

 The major problem faced by Retailers and MD Retailers is the SUPPLY

problem i.e. problem with the distribution. The company should aim at
improving its SUPPY CHAIN MANAGEMENT.

 The company should increase incentives that can increase Retailers Nominal
Income. This can be done through certain Schemes that increase the overall
sales.

 The company should lay emphasis on proper PROMOTION of the brand at the
Retail Outlet.

 The company should get a proper FEEDBACK from Retailers time to time. In
case they are facing any problem it can be solved timely, without delays.

35
 CHAPTER 7

CONCLUSION

Mother Dairy in the Year 2011

Mother Dairy is expanding its edible oil portfolio by venturing into olive and rice bran
oil segment. The dairy major is already selling vegetable and mustard oils under Dhara
brand. Inline with the changing needs of consumers, they are venturing into the olive oil
segment with anew brand - Daroliva.

 The company aims to achieve 10-15 per cent market share in the olive oil
segment within a year of the launch. In the total market of olive oil in the
country is around 2,000 tonnes per annum.
 Daroliva - extra virgin olive oil- is imported from Spain and the packaging of
the product is doneatDhara Vegetable Oil & Foods Company facility in Gujarat.
The company has priced the oil at Rs. 165 for the 200 ml pack and it would be
available in four different sizes.

About marketing strategy, the launch of Daroliva would be supported by print

campaign in addition to attractive point-of-purchase material and the company also
plans to hold sampling sessions at various retail outlets and malls.
The firm is also venturing into the rice bran oil with it new brand 'Dhara Rice Bran Oil'
in Tamil Nadu and Andhra Pradesh market. With opportunities galore Mother Dairy is
looking to capture those opportunities through their innovative strategies and plans. In
times to come the great challenge for Mother Dairy will be to be the best and capture
the maximum Indian market.

36
 BIBLIOGRAPHY

1. BOOKS
Opportunities and Challenges in the Indian Dairy Industry – Dr. Karmakar.
K. G. and Dr. Banerjee . G. D, 4TH edition (2009)

2. WEBSITE
1. Bureau, O. (2010, December 4). Business financial, economy, market, stock - news
& updates. Retrieved November 1, 2016, from http://www.thehindubusinessline.com

2. Home. (2011, April 21). Retrieved November 15, 2016, from

http://www.motherdairy.com

3.2000, sidddhant. (1996, February 12). IndiaDairy.Co111m - global resource for

Indian dairy industry information. Retrieved November 15, 2016, from
http://www.indiadairy.com

37
 ANNEXURE

QUESTIONNAIRE
NAME :

AGE :

Address :

Q.1 Do you consume milk or milk products?

 Yes
 No

Q.2 What is your frequency of buying milk and milk products?

 Daily
 Once in 2/3 days
 Once in 4/5 days
 Once in a week

Q.3 Which income group do you belong to?

 0-20000
 20000-50000
 50000-100000
 100000+

Q.4 Which brand do you consume the most?

 Mother Dairy
 Amul
 Paras Dairy

Q.5 Major reasons for consuming mother dairy milk?

 Quality
 Taste
 Price
 Availability
 Still consuming mother dairy
 Never tried
 Others

38
Q.6 How long have you been using mother dairy milk and milk products?

 1 year
 2 year
 3 years
 4 years and above

Q.7 Are you aware of the different types of milk product available in market?

 Yes
 No

Q.8 If yes the varieties you know?

 Paneer
 Milk
 Ghee
 Ice-cream

Q.9 Do you drink packed milk?

 Yes
 No

Q.10 Is it profitable as a retailer to sell mother dairy milk?

 Yes
 No

Q.11 What are the problems faced by you as a retailer?

 Supply
 Backdate
 Low Margin
 No return
 Staff misbehavior
 No interaction with the company

39