35913296 mother dairy summer training report

Abhimanyu yadav|MBA IInd year|DoMS, IIT Roorkee|

PROJECT REPORT ON

“Market Analysis & Strategy proposition for Mother Dairy Milk in Institutional Business in Delhi

MOTHER DAIRY PVT.LTD, DELHI

Master of Business

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

A report submitted in partial

Company Guide: Ms. Amrita Das Institutional Sales Head Mother Dairy Pvt. Ltd, Delhi


PROJECT REPORT ON

“Market Analysis & Strategy proposition for Mother Dairy tional Business in Delhi-NCR”

At


BY: ABHIMANYU YADAV

Master of Business Administration(MBA)OF


A report submitted in partial fulfilment of the requirements of

MBA (2009-11)

Mother Dairy Pvt. Ltd, Delhi

“Market Analysis & Strategy proposition for Mother Dairy NCR”


Administration(MBA)


of the requirements of


ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Mother

Dairy Pvt. Ltd. Delhi. It has been an enriching experience for me to undergo my

summer training at “MOTHER DAIRY”, which would not have possible

without the goodwill and support of the people around. As a student of

“Department of Management Studies, IIT Roorkee” I would like to express my

sincere thanks to all those who helped me during my training program.

I would like to express my gratitude to all those who gave me the

encouragement to complete this project. I would like to thank my college

authorities and HOD Dr. V K Nangia, for providing me the opportunity to work

with the one prestigious organization.

I would like to give my heartily gratitude to the Mr. Sandeep ghosh, General

Manager (SALES), Mother Dairy Pvt. Ltd., Delhi for having given me the

opportunity to do my project work in the organization and lighted my way of

progress with his guidance.

My sincere and deepest thanks to Mr. Z. Rahman, Faculty Member of

Department of Management Studies, IIT Roorkee for having spared his valuable

time with me and for all the guidance given in executing the project as per

requirements.

I would like to give my special thanks to my parents, their love, support and

blessing enabled me to complete this Project work.

However, I accept the sole responsibility for any possible error of omission and

would be extremely grateful to the readers of this project report if they bring

such mistakes to my notice.


DECLARATION I hereby declare that the following project report titled “Market Analysis &

Strategy proposition for Mother Dairy milk in Institutional Business in Delhi-

NCR” at Mother Dairy Pvt. Ltd., Delhi is an authentic work done by me. It is

to the best of my knowledge and belief. This is to declare that all my work

indulged in the completion of this Project Report such as research, competitor

analysis and sales promotion is a profound and honest work of mine.

Date: Signature

(Mr.ABHIMANYU YADAV)


TABLE OF CONTENTS :

Sr. No.

Subject

Page No.

1.

EXECUTIVE SUMMARY

5

2.

INTRODUCTION

8

3.

MILK INDUSTRY AND COMPANY PROFILE

9

4.

OBJECTIVE AND SCOPE OF STUDY

21

5.

RESEARCH METHODOLOGY

22

6.

DATA PROCESSING AND ANALYSIS

26

7.

OBSERVATION AND FINDINGS

41

8.

CONCLUSION

42

9.

SUGGESTION AND RECOMMENDATION

43

10.

BIBLIOGRAPHY AND WEBLIOGRAPHY

44

11.

ANNEXURE

45


EXECUTIVE SUMMARY In today’s competitive world while entering in the market it is very necessary to

have good knowledge of the potential of a particular market. The information

regarding the activities of competitor’s existing in the market so that we can

plan our each activity according to that. It is also necessary to retain the existing

customers apart from attracting the new customers.

The Project is concern with the market analysis & sales development of Mother

dairy milk in

Delhi and NCR region. The project included as part of MBA Programme and

the project is done from 15th May to 15th July.

1.1 Title:

“Market Analysis & Strategy proposition for Mother Dairy Milk in Institutional

Business in Delhi-NCR region”.

1.2 Organization:

“Mother Dairy India Pvt. Ltd, New Delhi”.

1.3 Objective:

The Primary objective of study was to find size of mother dairy milk

Institutional business of Mother dairy milk in specific areas of Delhi-NCR

region. In the study my intention was go through the Institutional sales of milk

network of

Mother dairy milk to know distributors and Institutions view about supply chain

of Mother dairy milk, to know the complaints of Mother dairy milk and to find

the suggestions from Institutions for more penetration of Mother dairy milk in

Delhi-NCR region.


The secondary objective was to find customer(Institution) response towards

Mother dairy milk. My aim was to go through the customers to know the

interest of purchasing & using Mother milk. Basically the study was for the

demand of Mother milk among the customers. And also to know the complaints

on Mother dairy milk.

1.4 Research Methodology:

Research type was descriptive. The research was done through Institutions. I

have collected the primary data through questionnaire which was filled by

Institutional customers. Questions were both open and close ended. The

secondary data was collected from website www.motherdairy.com

Sampling done is non-probability sampling. The type of sampling method was

Judgment sampling.

1.5 Findings:

In Delhi-NCR region there are many major players of liquid milk exist. Those

are like Mother, Vita, DMS, Verka, Saras,Paras, Gopalji and many other local

brands.

As per the findings Mother Dairy is the Market leader and having more market

share. Mother Dairy has estblished a great name in milk and milk products

market segment in Delhi-NCR region. The sale is totally depends on the

distributors and retailers.

1.6 Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of

Mother dairy milk. It gives information regarding their market share.


1.7 Conclusion:

It was concluded that Mother dairy milk i.e. Single Toned milk has a high

potential in the market and it is the known to its customers and its acceptance is

comparatively higher as of other variants and competitors present in the market,

most of the consumer continuously using Mother Dairy milk brand and they do

not want to switch over to other brand.


INTRODUCTION The dairy industries companies run mainly on the factors such as Price,

availability, service frequency, affordability, taste and marketing. Price plays a

vital role because purchasing power is depend upon price and availability of that

product, in case distributors and retailers service matter a lot in Institutional

business.

From chronic shortages of milk, India has emerged today as the largest producer

of milk in the world crossing 97 million tonnes. It is 'The Oyster' of the global

dairy industry. It offers opportunities galore to entrepreneurs worldwide, who

wish to capitalize on one of the world's largest and fastest growing markets for

milk and milk products. A bagful of 'pearls' awaits the international dairy

processor in India. The Indian dairy industry is rapidly growing, trying to keep

pace with the galloping progress around the world.

The effective milk market is largely confined to urban areas, inhabited by over

25 per cent of the country's population. An estimated 50 per cent of the total

milk produced is consumed here. By the end of 2007, the urban population is

expected to increase by more than 100 million to touch 864 million in 2007 a

growth of about 40 per cent. The expected rise in urban population would be a

boon to Indian dairying. Presently, the organized sector both cooperative and

private and the traditional sector cater to this market.


INDIAN DAIRY INDUSTRY - A PROFILE 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 nto 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

2010, 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 .

Background of Dairy Industry

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 more

than 100 million MT in 2008-09.

• India is the largest producer of Milk in the World (replacing USA)

• Per capita availability of milk presently is 250 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.

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. 900

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

Key challenges before Indian Dairy Industry are as follows:

• Ensuring Quality

• Procurement and efficiencies in supply chain

• Product differentiation and value addition.

OPERATION FLOOD

Programme implementation:

Operation Flood was implemented in three phases.

Phase

I

Phase I (1970-1980) was financed by the sale of skimmed milk powder

and butter oil gifted by the European Union then EEC through the

World Food Programme. NDDB planned the programme and

negotiated the details of EEC assistance.

During its first phase, Operation Flood linked 18 of India's premier

milk sheds with consumers in India's four major metropolitan

cities: Delhi, Mumbai, Calcutta and Chennai.


Phase

II

Operation Flood's Phase II (1981-85) increased the milk sheds from 18

to 136; 290 urban markets expanded the outlets for milk. By the end of

1985, a self-sustaining system of 43,000 village cooperatives covering

4.25 million milk producers had become a reality. Domestic milk

powder production increased from 22,000 tons in the pre-project year to

140,000 tons by 1989, all of the increase coming from dairies set up

under Operation Flood. In this way EEC gifts and World Bank loan

helped to promote self-reliance. Direct marketing of milk by producers'

cooperatives increased by several million litres a day.

Phase

III

Phase III (1985-1996) enabled dairy cooperatives to expand and

strengthen the infrastructure required to procure and market increasing

volumes of milk. Veterinary first-aid health care services, feed and

artificial insemination services for cooperative members were extended,

along with intensified member education.

Operation Flood's Phase III consolidated India's dairy cooperative movement,

adding 30,000 new dairy cooperatives to the 42,000 existing societies organized

during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of

women members and Woman’s Dairy Cooperative Societies increasing

significantly.

From the outset, Operation Flood was conceived and implemented as much

more than a dairy programme. Rather, dairying was seen as an instrument of

development, generating employment and regular incomes for millions of rural

people. "Operation Flood can be viewed as a twenty year experiment

confirming the Rural Development Vision" (World Bank Report 1997c.)


HISTORICAL BACKGROUND OF NDDB

The National Dairy and Development Board was founded in 1965, with the

mission of organizing poor milk producers, thereby transforming dairying into

an instrument for the economic development of India’s rural people. The

formation of the NDDB stemmed from the vision of the then Prime Minister of

India, the late Lal Bahadur Shastri, to extend the success of the Kaira

Cooperative Milk Producer’s Union (in the state of Mother) to other parts of

India.

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" in 1970, a

programme extending over 30 years and which used World Bank loan to

finance India's emergence as the world's largest milk producing nation. During

this period, dairy commodity surpluses were building up in Europe. Imports

from Europe had already adversely affected the dairy industry in India. Imports

by individual players in India would have resulted in a market glut and a fall in

the prices throughout the country. With the backing of government policy, and

with the assistance of the World Food Program, NDDB imported food aid in the

form of milk powder and butter oil, and marketed it under its own brand name.

The surplus from these sales was invested in the expansion of the cooperative

movement in the dairy industry.Operation Flood's third phase was completed in

1996 and has to its credit a number of significant achievements.

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 co-operatives, allied industries and

veterinary biologicals on an intensive and nation-wide basis.

NDDB's subsidiaries include Mother Dairy, Delhi.

Major Players

There are virtually 15 major Dairy Cooperative Federations in India, namely:

1) Andhra Pradesh Dairy Development Cooperative Federation Ltd

(APDDCF)

2) Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)

3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)

4) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

5) Himachal Pradesh State Cooperative Milk Producers' Federation Ltd

(HPSCMPF)

6) Karnataka Cooperative Milk Producers' Federation Ltd (KMF)

7) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)

8) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)

9) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)

10) Orissa State Cooperative Milk Producers' Federation Ltd (OMFED)

11) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)

12) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED)

13) Rajasthan Cooperative Dairy Federation Ltd (RCDF)

14) Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF)

15) West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)

National Dairy Development Board (NDDB) is the central cooperative board of

the country and was created to promote, finance and support producer-owned

and controlled organizations mentioned above.


Two main players – Mother of GCMMF and Mother Dairy of NDDB – is the

leading brand in India. Our main focus is to analyze the strategic move of

NDDB for mother Dairy from top to bottom. Thus we are going to concentrate

on the progress of Mother Diary and NDDB for their future strategies.

OVERVIEW OF THE MOTHER DAIRY

Mother Dairy – Delhi was set up in 1974 under the Operation Flood

Programme, a wholly owned subsidy of the National Dairy Development Board

(NDDB), whose current chairman is Dr. Amrita Patel. Currently, it is one of the

largest milk (liquid/unprocessed) plants in Asia selling more than 27 lakh litres

of milk per day, out of 50 lts of milk consumed daily in Delhi, thereby enjoying

a market share of 66% of the branded milk sales in Delhi. Other important

markets include Mumbai, Saurashtra and Hyderabad. Mother dairy ice-cream

was launched in the year 1995 and has shown continuous growth over the years,

and today it boasts approximately 62% market share in Delhi and NCR.

It is Mother Dairy’s constant endeavour 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. To ensure this Mother Dairy

operates such that the farmer gets 85% of the total cost of sales.

(b) Uphold institutional structures that empower milk producers and farmers

through processes that are equitable.


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

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

through processes that 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. Their constant effort to learn and to enrich experience is central to

their approach and capacities. In times to come, Mother Dairy shall strive to

become a leading player in the food industry in India.

Product Profile

S.No. Product Name Brand Name Items

1. Milk and its Products Mother Dairy Packaged Milk (Full Cream, Standardised, Toned, Double Toned Skimmed and Pro-biotic), Butter, Dahi, Ghee, Cheese, Ice-Creams, UHT Milk, Lassi & Flavoured Milk.

2. Edible Oils Dhara Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.

3. Fresh and frozen fruit and vegetable products

Safal Fruits, Vegetables, Rice, Processed items (jams, juices, ketchup, pulp, etc.)


Mother Dairy’s has a varied range of products. The different products categories

are explained below:

MILK:

Packaged Milk is available in 5 different variants:

1. Full Cream milk - milk fat 6%, SNF 9%

2. Standardised milk - milk fat 4.5%, SNF 8.5%

3. Toned milk - milk fat 3%, SNF 8.5%

4. Double toned milk - milk fat 1.5%, SNF 9%

5. Skimmed milk - milk fat 0.5%, SNF 8.7%

Other than packaged milk, Bulk Vended Token Milk is also available which is

distributed through vending machines installed in different regions of the city.

The high quality variant of milk is also available under the brand name of

‘MILK’. It is thick & completely natural, containing no preservations. It is

referred with name of UHT (Ultra Heat Treatment) Milk.

Mother Dairy also manufactures flavoured milk under the brand name of

‘CHILLZ’ . It is available in three flavours namely Kesar Elaichi, Vanilla and

Chocolate flavour.

Milk Products:

Various milk products of Mother Dairy are:

1. Mother Dairy Ghee

2. Mother Dairy Butter

3. Mother Dairy Cheese

4. Mother Dairy Dahi (Curd)

5. Mother Dairy Lassi


Except all these milk products Mother dairy also manufactures Ice Cream

under two categories namely

PROBIOTIC:

It is the latest product range

BB-12 friendly Bacteria which results in better digestion and absorption of

nutrients. It also contains probiotic fibre which also results in better

digestion. The various products in this category are:

1. b-Activ Probiotic Dahi

2. b-Activ Probiotic Lassi

3. b-Activ Curd

4. Nutrifit (Strawberry & Mango)

SAFAL: Range of fresh foods & vegetables, frozen ve

fruit juices etc.

DHARA: It has a popular range of edible oils in different types as refined soya

bean oil, refined sunflower oil and filtered ground nut oil etc.



under two categories namely CHILLZ and Mother Dairy Ice Cream.

It is the latest product range launched by Mother Dairy. It mainly contains

12 friendly Bacteria which results in better digestion and absorption of


digestion. The various products in this category are:

Activ Probiotic Dahi

Activ Probiotic Lassi

Nutrifit (Strawberry & Mango)

Range of fresh foods & vegetables, frozen vegetables, fruit pulps and

It has a popular range of edible oils in different types as refined soya

bean oil, refined sunflower oil and filtered ground nut oil etc.


Mother Dairy Ice Cream.

launched by Mother Dairy. It mainly contains

12 friendly Bacteria which results in better digestion and absorption of


getables, fruit pulps and

It has a popular range of edible oils in different types as refined soya


Distribution Channel of Milk in Delhi- NCR

*MS- Milk Shop MMS-Mini Milk Shop

CS-Combined Shop FS- Franchisee Shop

RS-Retail Shop IC-Insulated Container

Patparganj

DMS

Modern

NDRI

Rohtak

Alwar

B. Garh

Noida

Jind

Meerut

BVM Tankers

PPM Vehicles

Distributors

Cash Route

Retailer

Retailer

Kiosks

MS

CS

MMS

FS

RS

IC

C

O

N

S

U

M

E

R

S


OBJECTIVE & SCOPE OF THE STUDY

Objectives of Project:

The main objective of the Study can be listed as follows:-

A. Primary Objective

1. To find market size of Mother dairy milk in Institutional business in Delhi-

NCR region.

1. To find the problems faced by Institutions in milk purchase from mother

dairy and other competitors.

2. To collect the information about the competitors.

B. Secondary Objective

1. To propose strategies for sales promotional activities to improve Institutional

milk selling.

2. To generate and secure consumer awareness among Institutions .

Scope of Project:

The study carried out in Delhi-NCR so its scope is mainly limited to Delhi and

Gurgaon-NCR.

1. It gives information about the size of the retail network.

2. It gives information about the services given by distributor to their retailer.

3. It gives information about the competitors’ products.

4. It will serve consumer in better manner.

5. It provides suggestions to the company to improve their products sales.

6. It gives information about the sales promotion activities to improve the milk

Sale.


RESEARCH METHODOLOGY

5.1 Research Methodology:

The research was conducted from 15th May to 15th July 2010. The research

include meetings with the Institutions. It included preparation of the

questionnaire to be answered by above people for knowing the competitive

position of Mother dairy in the Institutional milk market. The views of the

above parties were recorded in the research as per the questionnaire set by us.

5.1.1 Research Approach:

The objective was to know the competitive position of Mother dairy in the

Institutional milk business market thus in order to successfully conduct the

research the unbiased opinion of the above parties was desirable. Thus we

conducted the research as the representative of Mother dairy company and

sometimes the representatives of the other company like Amul or Paras in order

to have an unbiased opinion of the concerned persons and it worked to achieve

our goal.

5.1.2 Research Instrument:

The research instrument was the structured questionnaire formulated for the

respondents. There were also the area maps.

5.1.3 Types of Question:

The second important aspect in the designing a question is to decide which

types of question are to be used. Question can be classified in various ways.

Questionnaire contains following type information-

1. Open-ended question

2. Dichotomous question

3. Multiple-choice Question


Both the questionnaire consists of all three types of question. Mostly all

questions are multiple type questions. Dichotomous question are few in number.

There is only one open-ended type question.

5.1.4 Phrasing of Question:

In questionnaire, I try to phrase the question in logical way. For example I

arrange question in sequence as personal information, awareness data, usage

data, and finally related to reason and satisfaction.

5.1.5 Sampling Plan:

Sample Size:

The sample size was as of 210 Institutions which includes Hospitals, Hotels and

restaurants, Schools and colleges, NGOs, Offices and Companies etc.

Sampling Technique:

A stratified sampling technique was used. A different Stratum for different type

of respondent within every stratum the respondents was selected as per

convenience basis.

5.1.6 Method of Survey:

Personal Interview:

It is direct form of investigation, involving face-to-face communication with

free feedback information. It offers a sense of participation. It is more flexible

form of data collection. Use of unstructured, open-end questions is possible.

Rate of refusal is low. Depth interview is possible. Complex questions can be

asked. The interview can have questions to secure more information.

Observation approach can be combined to verify age, income, status, standard

information. Visual aids in the form of catalogues samples etc. can be used to

get views, opinions, and attitudes of responding Institution.


5.2.1 Product for Which Survey Was Conducted:-

Composition:

Variety Fat (%) SNF(%)* Price(Rs.)

Full cream milk 6.0 9.0 32.00

Single Toned milk 3.0 8.5 24.00

Double toned milk 1.5 9.0 20.00

Lite milk 0.5 8.7 18.00

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34

parts of protein and 9 parts of minerals.

Special Features:

Mother dairy Milk is the most hygienic liquid milk available in the market. It is

pasteurized in state of-the-art processing plants and pouch-packed to make it

conveniently available to consumers.

Product Specification:

Mother milk meets the PFA standards for the respective type of milk.

5.3.1 Area of Operation:

The areas of operation were the research was done are as follows:

• West Delhi(3 subdivisons – Patel nagar, Rajouri garden and Punjabi Bagh)

• Gurgaon NCR(Haryana)


How the survey conducted

To approach the Institutions with the following requirements in mind

At Approach:

• What type of Institution it is? (Hotels, restaurant, general stores, Schools and

Colleges, Company offices, Caterers etc).

• Does it use Mother milk ?

• If not, which other milk institution is using ?

• From where it purchases milk(distributor/retail) ?

These sectors were chosen because the company believed that these segments

could be the best potential buyers for this product.


DATA PROCESSING AND ANALYSIS


Sales of different variant of Mother Dairy Milk

Graph shows the sales of milk with respect to the study conducted:

1. Full Cream Milk:

2. Toned Milk:

51 52 53

1

2

FULL CREAM MILK SALES IN %ge

s

a

l

e

s

0 10 20

1

2

TONED MILK SALES


Sales of different variant of Mother Dairy Milk (WEST DELHI)


Full Cream Milk:

54 55 56 57 58

%ge sales of

mother dairy

milk, 44.869921

08

%ge salesof

other brand milk

, 55.130078922

CREAM MILK SALES IN %ge

SALES(IN %ge)

30 40 50 60

%ge of sales

motherdairy, 58.

27389444

%ge of milk

sales of other

brand, 41.72610

556

MILK SALES

(WEST DELHI) :

%ge sales of

mother dairy

milk, 44.869921

%ge of sales

motherdairy, 58.

27389444


3. Double Toned milk:

4. Lite milk:

020

1

2%ge sales of

brand, 100

SALES(IN %ge)

DOUBLE TONED MILK

020

1

2

%ge sales of

motherdairy

milk, 100

SALES(IN %ge)

SA

LES


Double Toned milk:

4060

80

%ge sales of

motherdairy

milk, 0

%ge sales of

other

brand, 100

SALES(IN %ge)

DOUBLE TONED MILK

Series1

4060

80100

%ge sales of

other brand, 0

LITE MILK

other brand, 0


Market size of Mother dairy:

Market Size West Delhi ZoneVOLUME OF MILK OF INSTITUTE &

RESTAURANT WHO ARE USING

MOTHERDAIRY(in ltrs)

TOTAL VOLUME OF MILKOF INSTITUTE &

RESTAURANT TAKEN(in ltrs)

USING BOTH MD & OTHERS BRAND

MARKET SIZE OF MD (IN %

USING BOTH MD & OTHERS BRAND(IN %

REMAINING(IN %age)

BOTH MD &

OTHERS BRAND

0.71571

REMAINING, 42.

72727273



Delhi Zone VOLUME OF MILK OF INSTITUTE &

RESTAURANT WHO ARE USING

3965


ltrs)

6986

USING BOTH MD & OTHERS BRAND(in ltrs) 50

MARKET SIZE OF MD (IN %age) 56.75636

USING BOTH MD & OTHERS BRAND(IN %age) 0.71571

42.72727

MD MARKET

SIZE, 56.756369

88BOTH MD &

OTHERS BRAND

FIG: MD MARKET SIZE

3965

6986

50 56.75636

0.71571

42.72727

MD MARKET

SIZE, 56.756369

88


Interpretation:

• The above graph indicates that Mother Dairy is the market leader in the Delhi City,

according to the study conducted mother dairy has a market size of 56.75 percent.

• We have excluded 2500 litres of MD milk sold in Janakpuri market as Institutional

sales.

• This shows that Mother Dairy is most preferable brand in West Delhi.

Market size in different Institutions :

Market Potential:

MARKET POTENTIAL

INTERESTED IN SWITCHING TO MOTHER DAIRY: No. of Institutions (IN %ge)

INST. INTERESTED IN

SWITCHING TO MD ARE: 32 32

INST. WHO ARE ALREADY

USING MOTHERDAIRY: 37 37

INST. WHO DON'T WANT TO

SWITCH TO MD ARE: 28 28

DATA NOT AVAILABLE: 3 3

TOTAL NUMBER OF INSTITUTE

TAKEN: 100 100

0

500

1000

1500

2000

2500

3000

Hospitals Hotels&

restaurants

Offices&edu.

Institutes

Coffee

outlets

Others

MD

other brands


Finding:

The study shows that Mother Dairy is a leading marketer of Dairy products in the Delhi and

NCR regions. So in Delhi city

are few institutes who are interested in switching to MD brand, a

32% of institute are interesting in switching to MD.

Interpretations:

• There are large numbers of institutes that ar

total 32 % of institutes are interested in switching to MD.

• Also 28 % institutes are not interested to change their brand because they think that quality

of milk is not good, and services provided by MD are not proficient.

• In the sample taken there are some institute which are not using milk, and for some of the

institutes data are not available

NOT

INTRESTED, 28

MARKET



NCR regions. So in Delhi city most of institutes are currently using MD Milk, but still there

few institutes who are interested in switching to MD brand, as per the survey conducted

of institute are interesting in switching to MD.

There are large numbers of institutes that are currently using MD approx 3

% of institutes are interested in switching to MD.

% institutes are not interested to change their brand because they think that quality

of milk is not good, and services provided by MD are not proficient.

there are some institute which are not using milk, and for some of the

institutes data are not available.

INTRESTED TO

SWITCH, 32

USING MD, 37

DATA NOT

AVAILABLLE, 3

MARKET POTENTIAL


sing MD Milk, but still there

s per the survey conducted

e currently using MD approx 37%, & out of

% institutes are not interested to change their brand because they think that quality

there are some institute which are not using milk, and for some of the


Sales of different variant of Mother Dairy


1. Full Cream Milk:

2. Sinle Toned milk:

0 10 20

1

2

%ge sales of

mother dairy

milk, 44.869921

FULL CREAM MILK SALES IN %ge

s

a

l

e

s

0 200

1

2

TONED MILK SALES


fferent variant of Mother Dairy Milk (GURGAON


Full Cream Milk:

30 40 50 60 70 80

%ge sales of

mother dairy

milk, 44.869921

08

%ge salesof

other brand milk

, 55.130078922

CREAM MILK SALES IN %ge

SALES(IN %ge)

400 600 800

%ge of sales

motherdairy, 58.

27389444

%ge of milk

sales of other

brand, 41.72610

556

MILK SALES

(GURGAON-NCR):

%ge salesof

other brand milk

, 55.130078922


3. Double Toned milk:

4. Lite milk:

020

40

1

2%ge sales of

other

brand, 100

SALES(IN %ge)

DOUBLE TONED MILK

020

1

2

%ge sales of

motherdairy

milk, 100

SALES(IN %ge)S

ALE

S


6080

100

%ge sales of

motherdairy

milk, 0

%ge sales of

brand, 100

SALES(IN %ge)

DOUBLE TONED MILK

Series1

4060

80

%ge sales of

motherdairy

milk, 100

%ge sales of

other brand, 0

LITE MILK

other brand, 0



Market Size Gurgaon-NCR Zone VOLUME OF MILK OF INSTITUTE & RESTAURANT

WHO ARE USING MOTHERDAIRY(in ltrs)


RESTAURANT TAKEN(in ltrs)

USING BOTH MD & OTHERS BRAND(in ltrs)

MARKET SIZE OF MD (IN %age)

USING BOTH MD & OTHERS BRAND(IN %age)

REMAINING(IN %age)

REMAINING, 42.727

27273



VOLUME OF MILK OF INSTITUTE & RESTAURANT

WHO ARE USING MOTHERDAIRY(in ltrs)

2285

TOTAL VOLUME OF MILKOF INSTITUTE & 8569

USING BOTH MD & OTHERS BRAND(in ltrs)

50 26.6658

USING BOTH MD & OTHERS BRAND(IN %age) 0.5864

73.7713

MD MARKET

SIZE, 26.66588867

BOTH MD &

OTHERS BRAND

, 6.36

REMAINING, 42.727

FIG: MD MARKET SIZE

2285

8569

50 26.6658

0.5864

73.7713

MD MARKET

SIZE, 26.66588867

BOTH MD &

OTHERS BRAND

, 6.36


Interpretation:

• The above graph indicates that Mother Dairy is not the market leader in the Gurgaon

City, according to the study conducted mother dairy has market size of 26.66 percent.

• This shows that Mother Dairy is not preferable brand in Institutional business in

Gurgaon-ncr region.

Market size in Different Institutions:

Market Potential:

MARKET POTENTIAL

INTERESTED IN SWITCHING TO MOTHER DAIRY: No. of Institutions (IN %ge)

INST. INTERESTED IN

SWITCHING TO MD ARE: 33 30

INST. WHO ARE ALREADY

USING MOTHERDAIRY: 41 37

INST. WHO DON'T WANT TO

SWITCH TO MD ARE: 31 28

DATA NOT AVAILABLE: 5 4.5

TOTAL NUMBER OF INSTITUTE

TAKEN: 110 100

0

500

1000

1500

2000

2500

3000

MD

Other brands


Finding:

The study shows that Mother Dairy is a leading marketer of Dairy products in the

NCR regions. So in Gurgaon city almost every institute are currently using MD Milk, but still

there is few institutes who are interested in switching to MD brand,

conducted 30% of institute are interesting in switching to MD. While there is a large scope

for Mother Dairy in the Gurgaon

using Milk of other brand, and also they don’t have any problem in switching to MD.

Interpretations:

• There are large numbers of institutes that are currently using MD approx

of total 30% of institutes are interested in switching to MD.

• Also 28.18% institutes are not interested to change their brand because they think that

quality of milk is not good, and services provided by MD are not proficient.

• In the sample taken there are some institute which are not using milk, and for some of the

institutes data are not available

NOT

INTRESTED, 28.

181


The study shows that Mother Dairy is a leading marketer of Dairy products in the

city almost every institute are currently using MD Milk, but still

there is few institutes who are interested in switching to MD brand, as per the survey

% of institute are interesting in switching to MD. While there is a large scope

Gurgaon (NCR) region as there are many hotels that are currently


There are large numbers of institutes that are currently using MD approx

% of institutes are interested in switching to MD.

% institutes are not interested to change their brand because they think that

not good, and services provided by MD are not proficient.

In the sample taken there are some institute which are not using milk, and for some of the

institutes data are not available.

INTRESTED TO

SWITCH, 30

USING

MD, 37.272

NOT

INTRESTED, 28.

DATA NOT

AVAILABLLE, 4.

5454

MARKET POTENTIAL

The study shows that Mother Dairy is a leading marketer of Dairy products in the Gurgaon-

city almost every institute are currently using MD Milk, but still

as per the survey

% of institute are interesting in switching to MD. While there is a large scope

(NCR) region as there are many hotels that are currently


There are large numbers of institutes that are currently using MD approx 37.27%, & out

% institutes are not interested to change their brand because they think that

not good, and services provided by MD are not proficient.

In the sample taken there are some institute which are not using milk, and for some of the


Competition mapping in West Delhi and Gurgaon

I. Source from where

Of the total 210 institutions Surveyed

institutions, 42 of them were getting their milk from distributors while remaining 36 were

getting from retail shops.

Interpretation:

It was found that the institutions which are purchasing milk in large quantity take mostly

from distributors while small institutions take mostly from retailers.

II. Analysis on basis of Taste factor:

Graph showing Taste as an important parameter

0

20

40

60

80

100

120

140

Using MD

milk


Competition mapping in West Delhi and Gurgaon:

Source from where Institutions get their milk-

Of the total 210 institutions Surveyed, 78 of them were using mother dairy milk. Of 78


was found that the institutions which are purchasing milk in large quantity take mostly

from distributors while small institutions take mostly from retailers.

Analysis on basis of Taste factor:

Graph showing Taste as an important parameter-

No. of institutions

Distributors

Retailers

Using MD

milk

Not using

MD milk

Rarely using

MD milk

Taste not imp.

Taste as somewhat imp

parameter

Taste as most imp.

Parameter

78 of them were using mother dairy milk. Of 78


was found that the institutions which are purchasing milk in large quantity take mostly

Taste as somewhat imp

Taste as most imp.


Interpretation: It shows that taste being the second most important parameter effects the buying decision

of consumers. Out of 210 institutes surveyed, 125 institute does not use

them do not find taste appropriate. The reason for not li

become habitual of consuming either the other brands or the loose milk available from local

dairies.

III. Analysis On the basis of QUALITY factor

Graph showing QUALITY

Interpretation:

It shows that Quality is the most important parameter that effects the buying decision of consumers. Out of 210 institutions surveyed 125 were not consuming MD milk since they are not satisfied with the quality of MD milk

0%

20%

40%

60%

80%

100%

yes no

50

25

3


It shows that taste being the second most important parameter effects the buying decision

of consumers. Out of 210 institutes surveyed, 125 institute does not use MD milk since 67 of

do not find taste appropriate. The reason for not liking the taste was that they had


Analysis On the basis of QUALITY factor:

QUALITY as an important parameter-

that Quality is the most important parameter that effects the buying decision of consumers. Out of 210 institutions surveyed 125 were not consuming MD milk since they are not satisfied with the quality of MD milk.

no rarely

81 4

332

11 1

quality as a paramtr not at all imp

quality as a paramtr somewhat imp

quality as a paramtr most imp

It shows that taste being the second most important parameter effects the buying decision

MD milk since 67 of

king the taste was that they had


that Quality is the most important parameter that effects the buying decision of consumers. Out of 210 institutions surveyed 125 were not consuming MD milk since they are

quality as a paramtr




IV.Analysis on the basis of

Graph showing ease of AVAILABILITY

Findings:

It shows that ease of availability is also an important parameter that plays a role in effecting

consumers buying decision. Out of 210 sample size 132

prefers ease of availability as the most important parameter. Either they were getting the milk

they were consuming on their doorsteps or it was available near to their house.

0

20

40

60

80

100

120

140

yes no


Analysis on the basis of AVAILABILITY parameter:

AVAILABILITY as an important parameter-

shows that ease of availability is also an important parameter that plays a role in effecting

ers buying decision. Out of 210 sample size 132 do not consume MD milk that



no rarely

not imp

ease of avail. Somewhhat imp.

ease od availability imp

shows that ease of availability is also an important parameter that plays a role in effecting

do not consume MD milk that



ease of avail. Somewhhat imp.

ease od availability imp


V. Price of milk:

Interpretation:

About 50% of the Institutions who are not using Mother Dairy Milk rated price as the most important parameter as compared to around 75% Institutions who are using Mother Dairy.

Because of the margins provided to Institutions by the Milk companies play an important role

in deciding the purchase of milk by institutions(except coffee outlets), Price is most important

factor.

0

20

40

60

80

100

120

140

yes No Rarely

Price not important

Price somewhat imp

Price important


OBSERVATIONS AND FINDINGS

In Institutional Users: (sweet shops, restaurants, hotels, canteens, Offices,

Hospitals etc) -

• The awareness level of Mother dairy milk in bulk users is around 90% but

only 30% are using Mother dairy milk.

• The preference of purchasing milk by the bulk users is mainly quality, price

and timely availability.

The reasons for not using milk by the bulk users are :-

1. Higher price that is not meeting the competitors rate as bulk user are very

price sensitive. Other milk dairies are providing higher margin.

2. In sweet marts mawa generation is less and there is a complaint about

cuddling of milk.

3. In case of canteens contract some of them prefer credit purchasing which is

against company’s norms and policies.


CONCLUSION:

5.1 Concluding observations

The final outcome of the project is that the parameters which hinder the

sale of Mother Dairy are Price, Quality, Service and Taste. Milk market is a

totally unpredictable market and the organisation should be over-cautious of

any complaints that come into milk as it includes the sentiments of a mother for

her kid and she would not prefer to give anything to her kid for which she is not

100% satisfied. So the company should take every step possible to contain these

problems which in some way or the other affects the sale of Mother Dairy and

its retailers.

5.2 Limitations of the study

Since the study is done in only one region of West Delhi and Gurgaon-NCR,

these results cannot be generalised on all Delhi basis. Shopkeepers also tend to

hide some facts and figures due to some reasons which can hinder the results

we get from this survey. Still a lot can be done to make the whole system

efficient.

5.3 Further scope of study

The findings we got from this project will be of great help for the company as

these findings will help the organisation for improving their system as well as

milk.


SUGGESTION AND RECOMMENDATIONS :

• Mother Dairy can cut costs for some period of time followed immediately

by strong advertising. As we have seen during the research that most of

institutions give most preference to the margin provided to them on

milk(except coffee outlets). As the quality and taste and availability of

mother dairy milk are best in market and local milk companies good

margin to them, Price remains the main criteria of institutional milk sales.

• Can start schemes like cash prizes or foreign trips on scratching the

barcode on the packet

• Locate the institutions using competitor’s milk and provide them

attractive offers to increase the market share so that at least the big

competitors will not try to expand.

• Mergers and Acquisition in the milk industry with local players help the

company in increasing its distribution network and Market share.

Following this MD can buy the milk from local dairies taking over their

business which is substantial in terms of market share

• MD should introduce a mascot for the milk (as it has been for Amul

Butter). This will help in easy Brand differentiation and Recognition.

• Efficiency in distribution

• Remove communication barriers and misconceptions between the

Institutions and distributors by effective communication with institutions

time to time.


BIBLIOGRAPHY & WEBLIOGRAPHY

www.motherdairy.com

www.nddb.org

www.indiandairy.com

www.wikipedia.com

www.indianmilkproducts.com


ANNEXURE:

For collecting the data a structured questionnaire for the Institutions is prepared to get detailed and structured information regarding the project. Given below is the questionnaire:

Questionnaire for Institutions

Ques-1: How much milk do you consume every day?

Ques-2: From which source (company/local source) you purchase milk? If MD then leave.

Ques-3: What type of variant is used (FCM/TM/DTM/LITE)?

Ques-4: What type of mix?

Ques-5: At what price each variant is bought from whatever source?

Ques-6: What type of delivery method (transporter/distributer/self) is used?

Ques-7: What is the credit period provided?

Ques-8: Payment by cheque /cash?

Ques-9: Are you satisfied by your milk source (quality of milk/facilities)?

Ques-10: How do you perceive MD as a brand?

Ques-11: Reasons for not using Mother Dairy (Any previous bad experience/credit/transport/price /quality (taste, water content, preservatives, colour, etc))?

Ques-12: What changes do you expect from MD so that you can switch to MD (In terms of credit facility/delivery time/price margin etc)?

Ques-13: Anything in general to be improved in MD?

35913296 mother dairy summer training report

Documents