markering report of gowrdhan milk dairy munchar,pune

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UNIVERSITY OF MUMBAI

SUMMER PROJECT REPORT ON

(A Study on Marketing of Gowardhan Milk and milk Products in pune)

PROJECT UNDERTAKEN AT

(PARAG MILK AND MILK PRODUCT PVT.LTD.)

(DEPARTMENT: MARKETING)

SUBMITTED BY

SHRIKANT CHANDRAKANT KOTHAWALE

ROLL NO: 16

(2009-2011)

NCRD’S

STERLING INSTITUE OF MANAGEMENT STUDIES

Sector: 19, Near Seawoods Dharave Petrol Pump, Nerul (E)

Navi Mumbai: 400706

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PROJECT REPORT ON

“A Study on Penetration of Govardhan Milk and Milk Products in Retail Outlets of

Pune City”

(This study was conducted from 1st May to 30th June 2010)

Submitted At

Govardhan Milk and Milk Products Pvt. Ltd

Manchar, Pune.

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ACKNOWLEDGEMENT

We would like to express our sincere gratitude towards Mr. Rajesh Patil Deputy

Manager Sales, Pune of Govardhan Milk and Milk Products Private Ltd. for the guidance

provided. This project would not have reached its end without the supervision and direction

which they gave. We thank them for spending their valuable time and energy in guiding us

throughout this project and for certifying us of our successful completion of the project

report.

We take this opportunity to express our deep gratitude to Mr Vikas Bhor Sales field

representative who has always been there to guide us throughout this project report. We thank

to the Department of Marketing Management and Human Resource for offering us this

opportunity.

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Index

Sr. No. Page No

1 INTRODUCTION 5

2 EXECUTIVE SUMMARY 7

3 INDUSTRY PROFILE 8

4 INTRODUCTION AND HISTORY OF

COMPANY

11

5 OBJECTIVE AND SCOPE 30

6RESEARCH METHODOLOGY

26

7 DATA ANALYSIS AND INTERPRETATION 28

8LIMITATIONS OF THE RESEARCH

38

9FINDINGS OF THE RESEARCH

38

10SUGGESTIONS AND RECOMMENDATIONS

39

11QUESTIONNAIRE

40

12BIBLIOGRAPHY

41

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INTRODUCTION TO THE PROJECT

1.1 CONTEXT OF THE TOPIC

The dairy industries companies run mainly on the factors such as availability, service

frequency, affordability, taste and marketing. Availability is plays a vital role because

purchasing power is depend upon availability of that product, in case distributors and retailers

service matter a lot.

A retailer or retail store is any business enterprises whose sales volume comes

primarily from retailing.

Market penetration is one of the four growth strategies of the Product-Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company

enters/penetrates a market with current products. The best way to achieve this is by gaining

competitors' customers (part of their market share). Other ways include attracting non-users

of your product or convincing current clients to use more of your product/service (by

advertising etc).

It was found that due to low consumption of milk, there is no more awareness of milk

product here It was the major cause to the low selling of “Govardhan” milk product. Like that

penetration level in the outlet of milk product was low.

Finally the whole study of the research work, the company needs the effective

advertisement of the product in the local channel and print media for awareness of

“Govardhan” milk in the Pune city.

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Promotion Tool Used

The consumer promotion tools mean the promotion activities, which are beneficial for

consumers as well as company. Such as price discounts, samples, cash refund, premiums,

prizes, cross promotion and coupons etc. We distributed it among customers and validity kept

seven days from issued.

The consumers are seduced to buy the product.

It helped to increase sales volume.

Consumer can get good quality of goods in cheaper price.

It can attract the new consumers and customers buying other milk brands.

Attract brand switchers, who are primarily looking for low price, good value or

premiums.

Turn switcher to loyal users,

It induced to make some subsequent purchases.

Give little permanent gain in market share.

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EXECUTIVE SUMMARY

Govardhan Milk, brand of the Govardhan Milk and Milk Products Private Ltd. is the

significant player in Pune in milk segment.

The project basic objectives are to estimate demand of Govardhan Milk and

promoting Govardhan milk in Pune at the same time. 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. Also it is necessary to retain

the existing customers apart from attracting the new customers.

The Project is concern with to determine the penetration level of Govardhan dairy

milk in Pune city. The project included as part of MMS Programme and the project is done

during the month of May and June.

The project was aimed to find out various strategies that can be implemented to

increase the Retail penetration of Govardhan milk in Pune Region. These strategies were

suggested after a research on the milk industry in Pune. There was questionnaire prepared for

retailers. The sample size was decided on 165 retailers by dividing group members to study

the various areas in Pune.

We encountered a little problem in collecting data as the retailers were reluctant in

providing any kind of information on their relationship with the distributor/company. Also to

ensure that the information was accurate, the retailer had to be cross questioned on many

occasions.

Basic analysis was done through pie charts and bar diagram to reveal the real picture

in the market in terms of percentage so that strategies could be thought upon the concrete data

that had been collected. These strategies were to be sought to be of benefit to the company,

the distributors, the retailers and the consumers.

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INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology

refers to the application of scientific knowledge for practical purposes. Dairy technology has

been defined as that branch of dairy science, which deals with the processing of milk and the

manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade

and India has now become one of the largest producers of milk and value-added milk

products in the world.

The dairy sector has developed through co-operatives in many parts of the State.

During 1997-98, the State had 60 milk processing plants with an aggregate processing

capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government

and 33 co-operatives milk chilling centers operate in the State. 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 cents,

and Japan’s $2.8 dollars. 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.43, 500 crores by year 2005. 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 2005, the value of Indian dairy produce is expected

to be Rs 10, 00, 000 million. Presently the market is valued at around Rs.7, 00, 000 million.

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India contributes to world milk production rise from 12-15 % & it will increase up to 30-35%

(year 2020) World’s Major Milk Producers (Million MTs).

Country 2002-03 and 2003-04 (Approx.)

Sr. No Country 2002-03 2003-04

1 India 81 84.5

2 Brazil 75 77

3 Russia 34 33

4 Germany 27 27

5 France 24 24

Development of Food Processing Industry:

The food processing industry sector in India is one of the largest in terms of

production, consumption, export and growth prospects. The government of accorded it is a

high priority, with a number of fiscal relieves and incentives, to encourage commercialization

and value addition to agriculture produce, for minimizing harvest wastage, generating

employment and export growth. Food processing industry is providing backbone support to

the milk industry.

The development food products by using milk can give good market opportunities to

produces milk

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Products and Industry Status:

Among the products manufactured by organized sector are Ghee, Butter, Cheese,

Milk powders, Melted milk food, dahi etc condensed milk etc. Some milk products like

Casein and Lactose are also being manufactured lately. Therefore, there is good scope for

manufacturing these products locally. Liberalization of the economy has led to a flood of new

entrants, including MNC’s due to good prospects and abundant supply.

Major Indian and Overseas Players in the Food industry are:

Hindustan Uni Lever Limited

MTR foods limited

Cadbury India Ltd.

Godrej industries Limited

PepsiCo India Holdings

Govardhan

Nestle India Pvt. Ltd.

Dabur India Ltd.

Britannia Industries Ltd.

ITC Limited · Parle Products Pvt. Ltd.

Agro Tech Foods.

Parle Products Pvt. Ltd.

The major brands in milk and dairy products are:

Amul

Nestlé

Mother Dairy

Britannia

Govardhan

Gokul

Chapter 1

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INTRODUCTION AND HISTORY OF COMPANY

INTRODUCTION

Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of

India's largest private dairies, with an output capacity of 1,000,000 liters per day.

Located in a lush green village called Manchar in Maharashtra (60 km from Pune),

and also owns the largest cow farm in India as well as Asia's largest cheese plant.

We are an ISO 9000 and AGMARK certified company, committed to international

standards of product quality. Our product portfolio includes Skim Milk Powder, Whole Milk

Powder, Ghee, Processed Cheese, Butter, Dahi, proprietary foods like Dairy Whitener and

Gulab Jaab, Govardhan Mix powder under the brand names of "Gowardhan" and 'Go' and all

made from 100% fresh cow milk.

A dairy plant consist of all manufacturing section used for milk treatment and

processing begins with milk reception and ending with dispatch of the finished products.

They operate within the framework of the milk regulation and consist of a production

program and regulation, flow sheet, energy flow sheet and functional descriptive.

The Genesis: He had a "Vision" to set up institution to help the famous of near village

to grow economically. He believed in this vision of faluire as he conceptualized marketing of

successful milk which was unused by the farming community to the village with his scientific

way and the political to increase milk production, he led to the step to his dream "PARAG

MILK”.

Thus the pure intension of the entrepreneurship of Shri.Devendra Shah, PARAG

MILK & MILK Products Pvt. Ltd. is one of the most popular dairy in the state of

Maharashtra. It is located on NH 50, Pune-Nashik highway, 65 km from industrial city Pune,

near Awasari phata at western of Mancher. The factory spread over an area of 8 acres. The

company hosts plant and machinery supplied and erected by the world leaders "Alfa-

Laval" .Initially the plant was started with a handling capacity of 30.000 Liters/day. At

present the dairy handle milk upto 8 Lakhs Liter/day in lean season. It has an annual growth

of 50%.

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Parag milk is a multi-products dairy plant manufacturing different milk products like

Ghee, Butter, Dahi, Chass, Liquid-milk, Skim Milk Powder, Whole Milk Powder, Dairy

Whitener, Real Milk Powder, Cheese ,Gulam JGovardhann ,UHT Milk, Cheese(Cheddar

cheese, Process cheese, Mozzarella cheese).It is an ISO-9001 HACCP certified company.

The brand name of is "GOWRDHAN" Company also has the certificate of MMPORC

No.310/r-MPO/2003.

Vision:

Infrastructure & Technology

Our commitment to quality and innovation has resulted in huge investments in

infrastructure and technology. Our integrated dairy and cow farm at Manchar, is rapidly

scaling up to cater to the ever expanding circle of customers in India, who seek all-natural,

wholesome and delicious dairy products.

Dairy Plant, Manchar, Pune

The extensive ranges of our products are processed at this ultra modern dairy. Our

dairy plant is fully automated, of international standards and equipped with the best European

technology. Right from reception of milk to the finished product, we maintain strict no-

human-contact through the entire manufacturing process. Our plant churns out 1,000,000

litres of milk per day, has an output capacity upto 10 MT of butter, 25 MT of ghee and 10

MT of dahi (yoghurt) and 65 MT of milk powder.

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DAIRY FARM

Gowardhan manufactures dairy products that are not just 100% natural , but also

lighter and rich in calcium.

That's because the milk, procured from its own cow farm - the largest in Asia - is

100% natural cow's milk.

What's more is the use of latest European technology in our manufacturing units

ensures the superior quality and freshness of our products, giving them the unique

Gowardhan taste and flavors.

The plant have the dairy farm also it have nearly about 2500 cows. Each cow gives

milks about 20 to 25 Liter/day.

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Products of the company

BUTTER

Definition:

According to PFA rules, table butter is the product obtained from cow or buffalo milk

or a combination of there of, from cream or curd obtained from cow or buffalo milk or ;

combination there of , with or without the addition of common salt.

Composition:

According to PFA rule, table butter should contain Fat-not less than 80% , Moisture-not more

than 16% , Salt-not more than 3% , Curd - not more than 1.5%

Chemical composition of Butter

Constituents Percentage

Moisture% 16

Fat% 80

Salt% 1.5

Curd 2.5

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CHEESE

Definition: According to PFA rules, cheese Composition: means the products obtained by

draining after the coagulation of milk with the harmless milk coagulation agent, under the

influence of harmless bacterial culture. The capacity of govardhans new cheese plant is 40

tons/day. It is the first largest plant in India and second largest in Asia. It is fully automatic

plant. The plant manufactures 3 types of cheese products are:

•Chedder cheese

•Processed cheese

•Mozzarella cheese

Cheeder cheese:

Cheeder cheese is a ripened and hard variety of cheese. Cheddar cheese has the longest shelf

life as it is ripened after being made for six months. Fresh cheese prepared is called green

cheese and after ripping, it is called a curd cheese. All the other type of cheese have short

self-life as they have high moisture content and thus mold growth can occur easily.

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Processed Cheese

Processed cheese is defined as a modified form of cheese prepared with the aid of

heat, salt and emulsifier to form a homogeneous plastic mass which packed hot.

Ingredient used: Sodium Citrate(900 g) , Salt (130 g) , Citric Acid (25 g) , Sorbic Acid(30 g)

CHEESE

Flow chart of chedder cheese :

Receiving milk in cheese vat --> Addition of Cacl2 --> Addition of Culture

-->Heating of milk -->Addition of Rennet --> Coagulation of milk --> Cutting of

curd --> Cooking of curd -->Curd Transfer to Alfomatic -->Salting of Alfomatic

--> Transfer of Block-former --> Cheese block discharge -->cheese block

weight --> cheese block vacuum sealing --> Cheese block pass from metal

detector --> Store in cold storage.

Processed flow chart for MOZZARELLA Cheese

Receiving of milk --> Filtration --> Chilling --> Standardization in storage

tank<10 c --> Bactofugation --> Pasteurization -->Preheating --> Transfer to OST

vat --> Setting -->Cutting -->Cooking --> Transerfer of alfamatic -->Removal of

whey --> Milling Transfer of stretching machine --> Cooking and streching -->

Molding -->Brining --> Vaccum packing --> Weight ment --> Ripeningin cold

storage --> Shredding -->Packaging --> metal detector --> Cartooning -->Storage

at-18 c --> dispatch.

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CREAM

Definition: According to PFA cream, excluding sterilized cream is the product of cows or

buffalos milk or a combination of which contains not less than 25% milk fat.

Chemical composition of Cream-Water:68.2% , Fat:25% , Protein :2.54%, Lactose: 3.71%,

Ash :0.56%, TS :31.8 % ,SNF 6.8% .

Various types of cream:

1.Table cream 20-25% milk fat

2.Light cream 20-25% milk fat

3.Coffee cream 20-25% milk fat

4.Wipping cream 30-40% milk fat

5.Heavy cream 30-40% milk fat

6.Plastic cream 60-85% milk fat

DAHI

Definition: According to PFA Rules dahi or curd is the product obained from pasterized or

boiled milk by souring , natural or otherwise by a harmless lactic acid or other bacterial

culture.

Chemical composition of curd- Water: 85-88%, Fat: 5-8%, Protein: 3.2-3.4%, Lactose: 4.6-

5.2%, Ash: 0.7-0.72%, Lactic Acid: 0.5-0.11%.

Flow diagram of dahi:

Receiving milk --> Pre heating --> Filtration/clarification -->Standardization -->

Pre heating (60°c) --> Homogenization (176Kg /sq cm) --> Pasteurization (80-90°c/15-

30min) --> Cooling(22-25°c) --> Inoculation --> Packing --> Incubation(40-50°c/6-8hrs) -->

Dahi --> Cooling and storage(<5°c).

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GHEE

Definition: - "Ghee may be defined as clarified butter fat prepared from cow or buffalo milk."

According to PFA rule, ghee is clarified fat arrived solely from milk or from desi butter or

from cream of which no coloring matter is added.

Ghee section receives the pasteurized cream from unit 1. This cream is either chilled or

packed as finished product or the cream is used to manufacture ghee.

Ghee is manufactured by "PRESTRATIFICATION METHODE"

CHEMICAL COMPOSITIONS

Milk fat -- 99-99.5%

Moisture -- not more than 0.5%

Free fatty acid ( % oleic) -- max 2.8 (AGMARK)

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Specification of Ghee:-

Description:-

General: - Shall be pure, clarified milk fat obtained by cooking of cream, buter etc. Free from

sediment or foreign colouring matter.

Color- Shall be yellowish to golden yellow in colour.

Flavor- Should has a natural, sweet, pleasant odor, agreeable taste and shall be free from

rancid or other objectionable flavor

Texture:- The solid phase shall be of well defined granular structures.

Chemical:-

Percent fat (min) :- 99.7

Percent moisture (max) :- 0.30

Percent free fatty acid (as oleic acid) (max):-0.60

Butyro refract meter reading at 40°c: - 40 to 43

R M Value (min):- 28.0

Polanske Value: - 1.0 to 2.0

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Baudouin test: - negative

Filling temperature: 40-45°c

The phenolphthalein test: - negative.

MILK POWDER

Dried milk or milk powder is product obtained by the removal of water from milk by heat or

other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted

milk or skim milk may be used for drying the dried products obtained from whole milk

(WMP).whole milk powder and that from skim milk is known as (SMP)skim milk powder.

There are mainly three powder plants namely P1, P2, P3 (10 tones, 15 tones, 25 tones).

WMP: According to PFA rules 1976 whole milk powder is the product obtain from cow or

buffalo milk or combination there of or from standardize milk by the removal of water. Milk

powder should contain moisture not more than 5%, fat not less than 26%,acidity not more

than 1.2% standard plate count not more than 50,000/g,coli from count not more than 90/g.

SMP: According to PFA rules 1976 whole milk powder is the product obtain from cow or

buffalo milk or combination there of or from standardize milk by the removal of water. Milk

powder should contain moisture not more than 5%, fat not less than 1.5%,acidity not more

than 1.5% standard plate count not more than 50,000/g,coli from count not more than 90/g.

Dairy whitener: Dairy whitener is the product obtain from cow or buffalo milk (skim milk) or

combination there of, by the removal of water. Milk powder should contain moisture not

more than 5%, fat not less than 18%,acidity not more than 1.5% standard plate count not

more than 50,000/g,coli from count not more than 90/g.

Dairy Top:

Dairy top is the product obtain from cow or buffalo milk (skim milk) or combination there of,

by the removal of water. Milk powder should contain moisture not more than 5%, fat not less

than 1.5%,acidity not more than 1.5% standard plate count not more than 50,000/g,coli from

count not more than 90/g.

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Gowardhan launches summer OOH campaign for GO Fruit and Dahi Fusion

While the sweltering summer heat saps the energy out of people, brands are rolling out OOH campaigns inviting them to try their thirst quenching or re-energizing products. Besides the colas and nimbu sherbets, Gowardhan's flavoured yogurt (dahi), GO Fruit and Dahi Fusion, have also joined the fray.The brand has launched an outdoor campaign that invitingly displays the yogurt's six different flavours, including two new ones, Mixed Berries and Litchi.

Gowardhan, founded by Parag Milk and Milk Products in 1992, produces dairy products such as cheese, milk, chaas, ghee, butter, dahi and flavoured dahi, using 100 per cent cow's milk. Its plant is located in a village called Manchar in Maharashtra (60 km from Pune). Its flavoured dahi products are currently available in Mumbai and Pune markets, with plans to

expand to other metros in cities.

The product is priced at Rs 20 for 125 gm and comes in six flavours, including Mango, Pineapple, Banana, Strawberry, Mixed Berries and Litchi.

The thought for the outdoor campaign was to have a clean and clutter free creative, with emphasis on the new product range launched under GO Fruit and Dahi.

Rahul Akkara, vice-president, marketing, Parag Milk Foods, tells afaqs!, "The creatives have already started showing impact on sales and overall brand recall, but since it's just been about a week since the campaign broke, I can't share sales figures just yet."

Bengaluru based creative agency Scion Advertising has worked on the minimalistic campaign, while three outdoor agencies, Posterscope, Percept and OAP, handled the outdoor media.

As the product is available only in these two cities, the company felt that outdoor would be the right way to go. It has used 100 bus shelters in Mumbai and 12 in Pune, and three hoardings in Mumbai and 15 in Pune, in addition to five AC buses in Mumbai. Akkara informs that the ad spend on this outdoor campaign in the two cities was about Rs 50 lakh.

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The campaign was launched about a week ago and is scheduled to run for a month. Akkara informs that following the campaign, placement in terms of shelf space has shot up by 50 per cent.

Also, last year (when the brand was launched), it specifically targeted women who lead an active lifestyle with a tight schedule as the flavoured dahi would fit into their diet easily. However, now, the brand is going further and targeting the entire family.

Akkara explains, "Targeting women becomes very niche and we decided to position the brand on a larger platform. We are promoting GO Fruit and Dahi Fusion as a healthy and easy snack, filled with rich sources of calcium, protein and highly beneficial bacteria for the entire family."

He adds, "So, while women are still an important TG (target group), they also take care of a family that needs such nourishment - thus it should be consumed by other members as well and we aim that it becomes a part of their daily diet, whether consumed for breakfast, with lunch or dinner, or as a snack."

GO enjoys 10-12 per cent of the market share in Mumabi and Pune. The flavoured yogurt (dahi) market in India is fairly small and pegged at about Rs 50 crore, informs Akkara, adding that Gowardhan's GO is valued at Rs 5-7 crore. Other competitors in the market include Nestle's Fruit n Dahi, Amul's Yogi Dahi and Danone India.

Govardhan produces many products which are as below:

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Exports

Gowardhan exports milk powder, butter and butter oil, anhydrous milk fats and ghee to 27

countries in the Middle East, South East Asia and Africa. We are soon going to include

cheese in the product mix. Some of our significant customers include Yakult for our skimmed

milk powder and BEL, Morocco (world famous manufacturers of cheese).

Institutional Sales:

Gowardhan is a one-stop, efficient and reliable supplier to reputed hotels, restaurants,

institutions and caterers. The wide ranges of products we supply include cheese, butter, ghee

and milk powder. Each of these products comes with the Gowardhan assurance of purity and

quality. We have a national tie-up with companies like Baskin Robins, Barista, Café Coffee

Day etc.

We have also expanded our retail presence significantly: Gowardhan and Go brands of are

now available at large retailers and modern retail outlets, reaching out to more and more

customers with the promise of a healthy, active life.

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QUALITY ASSURANCE SECTION

"Quality is never an accident. It is always the result of high intensions, sincere effort,

intelligent direction & skillful execution."

Definition:-

Quality is defined as desirable attributes of a product, which are liked by the consumer. It is a

combination of characteristics that have significance in determining the degree of

acceptability of the product to a consumer. In simple words, one can say that a product has

good quality when it complies with the requirements specified by the client. This is expressed

by ISO definition: "The totality of features and characteristics of a product or service that

bear on its ability to satisfy stated or implied needs."

Quality Assurance:-

According to ISO: "The assembly of all planned and systematic actions necessary to provide

adequate confidence that a product, process or service will satisfy gave quality requirements."

Quality Control:-

Quality control refers to the adjustment of attributes within the prescribed limit. The purpose

of the quality control is general into ensure the production and distribution of the products

within well defined and accepted standards at an agreed level there by protecting the health

and legal rights of consumer and financial interest of the manufacturer. It is a major part of

quality assurance. According to ISO, "The operational techniques and activities that are used

to satisfy quality requirements."

Quality Control Laboratory:- The first function of quality control laboratory is taken the

sample of the testing. Though each dairy has separate section of quality control and people

working in this section are made responsible for evaluating the quality of the finished goods.

There are two main quality control /assurance laboratories at Parag dairy. They are as

follows:

RMRD Laboratory

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Main Laboratory

RMRD Laboratory: Here the quality of incoming milk is judged and grading under good,

sour and curdle. The tests performed at the lab provide record for the payment of milk

producers.

The tests performed are:

Organoleptic Test

Fat and SNF

Main Laboratory: Main laboratory is the heart of the Parag dairy, Manchar. The quality of

milk and milk products are maintained by main laboratory .The main laboratory is divided

into two sections:

Chemical Quality Assurance

Microbiological Quality Assurance

The various activities of main Laboratories are as follows:-

Tests for:-milk, butter, ghee, dahi, powder, cheese, water, raw material, packing material.

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MARKETING

The company is holding domestic markets. Except it is the products of the company are

exported in the major countries as listed below:

•Algeria

•Bangladesh

•China

•Dubai

•Egypt

•Gabon

•Iran

•Lebanon

•Morocoo

•Myanmar

•Nigeria

•Pakistan

•Phillipines

•Saudi Arebia

•Thialand

•Turkey

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Competitors Profile

Gokul

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular

brand ‘Gokul‘ is an Operation Flood cooperative dairy project established on 16 th March

1963. Since then achieved many land marks in Milk Procurement, Extension, Animal Health,

Breeding, Milk Processing, Product making and Marketing. At present Gokul has modern 7

Lakh Liters/day capacity dairy plant with 4 owned and 1 hired chilling centers having 4.25

Lakh Liters/day milk handling capacity.

Mahanand Milk

Mahanand Milk, the World-Wide Taste of Happiness. Mahanand Dairy is the Largest

Cow Milk packing and distributing dairy in Asia. Mahanand Dairy is always related to any

breakthrough or advent in the Milk Production and Dairy Technology in India. Mahananda

has launched Mahanand Parijatak Scheme.

At present Mahanand Dairy is distributing 8.5 Lac Liters milk per day through 722

milk distributors (Ex Dairy Distributors -174 and shop Distributors, Commission Agents etc.

- 548).

Arey

During Second World War to prevent of malnutrition pregnant ladies and children due

to food shortage, Municipal Corporation of Mumbai started milk distribution system. Each

female used to get half liter of milk. This scheme was operational till 1946. After that civil

supply department was operating this scheme.

As there were no facilities for boiling the milk, raw milk was supplied to British

soldiers, officers, and employees. They were not used to drink raw milk which created health

problem for them. The cattle sheds of Mumbai were in unhygienic conditions and

rearing/nursing of cattle was done in unscientific ways. Due to this health problems surfaced

in the nearby locality. To rehabilitate cattle shed of Mumbai in a more scientific way and to

encourage clean milk production, in the year 1949, Arey Milk Colony was established.

Warana

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The dairy plant has a capacity to handle more than 300,000 liters of milk of which

100,000 liters can be converted into milk products. A clean and efficient management of

dairy brought the proud products of Warana like Warana pasteurized Milk, Milk Powder,

Ghee, and Butter

The turnover for the year 1997-98 was Rs. 138 cores. By selling 2035 tones of

Shrikhand in the year 1998, Warana reached a new record of maximum selling of Shrikhand

in India. For its qualitative and quantitative excellent performance dairy has acquired an ISO

9002 Certification in record time of three months.

Mother dairy

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.

The company’s 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 chain of 400+ own Fruit and Vegetable shops and

more than 20,000 retail outlets in various parts of the country. Fresh produce from the

producers is handled at the Company’s modern distribution facility in Delhi with an annual

capacity of 200,000 MT.

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Chapter 2

OBJECTIVE AND SCOPE

1. OBJECTIVES OF THE REPORT

The main objective of the Study can be listed as follows

A.PRIMARY OBJECTIVE

1. To find size of retail network of Govardhan Gold and Go dahi in specific areas of

Pimpri-Chinchwad (Pune) city or penetration level of Govardhan Milk in Pimpri-

Chinchwad (Pune) city.

2. To find the problems faced by retailers in selling and storing.

3. To collect the information about the competitors

B.SECONDARY OBJECTIVE

1. To organize sale promotional activities to improve milk and dahi sales.

2. To generate and secure consumer awareness.

2. SCOPE OF PROJECT

The study carried out in Pimpri-Chinchwad (Pune) city so, its scope is mainly limited to

Pimpri-Chinchwad (Pune) city.

It gives information about the size of the retail network.

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

It gives information about the competitors’ products

It will serve consumer in better manner.

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Chapter 3

RESEARCH METHODOLOGY

RESEARCH DESIGN FOLLOWED

Descriptive Research is the research method used because descriptive studies embrace

a large proportion of market research. The purpose is to provide an accurate snapshot of some

aspect of the market environment. Descriptive research is more rigid than exploratory

research and seeks to describe users of a product, determine the proportion of the population

that uses a product, or predict future demand for a product. As opposed to exploratory

research, descriptive research should define questions, people surveyed, and the method of

analysis prior to beginning data collection. In other words, who, what, where, when, why, and

how aspects of the research should be defined.

SAMPLING:-

SAMPLING TECHNIQUE USED

In this project the technique of sampling used was Judgment sampling. Judgment

sampling involves the choice of subjects who are most advantageously placed or in the best

position to provide the information required.

SAMPLE UNIT

In this project case sample were the retailers in Pimpri-Chinchwad (Pune) region

& the aim was to know the penetration level of Govardhan milk and the competitors present

in the market.

SAMPLE SIZE: 165 Retailers.

DATA COLLECTION TECHNIQUES

SOURCES OF DATA

PRIMARY DATA

To collect primary data from Retailer’s Questionnaires were used. Questionnaire was

prepared very carefully so that it may prove to be effective in collecting the right information.

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SECONDARY DATA

Secondary data collected from different website. This secondary data formed the

conceptual background for the project. This secondary data was compared with the primary

data collected in area.

RESEARCH INSTRUMENT

The research instrument used in the project was Questionnaire to collect primary

information, it provided flexibility by using more close ended and few open ended questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through interviews.

5) Total Retail Outlets of Govardhan & its Competitors

Organization % Market Share

No of

Retailer

Warna 33% 47

Gokul 22% 22

Arey 14% 19

Loose 11% 16

Mahanand 7% 10

Mother dairy 3% 4

Gowardhan 6% 17

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Reasons for Govardhan milk not stored by retailers.

Answer No. of respondents

Not Regular Supply 24

No One has Asked 8

Not Allowed 18

Replacement 3

Retailers Margin 24

Not Demanded by Customers 5

Response of Retailers When Asked for Order.

INTERPRETATION:

1) Most of them were not interested because of their relation with past

distributor and retailer’s margin.

2) Some of them has given order

3) Few of them tell that they will think in future regarding order.

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Chapter 5

LIMITATIONS OF THE RESEARCH

The survey is limited only for Pune city.

Time period of the project was 8 weeks, which may not be enough to understand the

whole market.

Respondent hesitate to give true response to question.

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Chapter 6

FINDINGS OF THE RESEARCH

Pimpri-Chinchwad territory is mainly distributed into two main parts Pimpri and

Chinchwad.

Chinchwad is having relatively less no of retailers as compared to Pimpri, but from

the research it was found that in this market loose milk is more popular and this market is not

covered by milk distributing companies.

Retailers were selling different brands. Because they were able to receive more

margin from non popularized brand that they could not from well known brands.

Measurable amount of retailers were not happy with the distributors, because of

frequent change in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken by Govardhan.

But some of the retailers were complaining about cheating during scheme as they didn’t get

discounted amount back.

Some retailers were interested in the Gowardhan’s exclusive stall.

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Chapter 7

SUGGESTIONS AND RECOMMENDATIONS

The Milk products market has reached Maturity stage in India large no. of

Cooperatives having a variety of product range has entered the market, thus there is one way

for Govardhan to sustain their milk business in the market by delivering outstanding

satisfaction to their retailers, so that they can take interest in selling of Govardhan milk

products.

This can be done as follow

Govardhan has a relatively good distribution network, but still company is not able to

fulfill the demand of outlet in the peak season when demand is very high. Here

company should consider on the supply of product in the peak season.

Company should make new product i.e. scented milk which has more demand in

market.

Supply should be regular to all the outlets including those that lie in the pocket roads

and not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to more extent to retailers for selling,

because lower income family has intention to buy small pouch milk.

Provide reasonable Margin to retailers as compared to competitors, this motivates

them to promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the retailers about who

claimed that Govardhan milk and other products are not available to them on time.

Incentives & schemes should be given to the retailers and some scrutiny should be

follow to check the scheme get being communicated properly by distributors or sales

person.

Company should provide advertising facility like outside wall painting; provide

company’s stand boards, Posters which help to sell Govardhan milk.

Provide consistent service to retailers as this will help gain company goodwill in the

market.

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Do not change distributor frequently, because he is the only person who act as a

connecting link between company and retailers.

Do not place more than one distributor in same market area.

RECOMMENDATIONS

From above research it is clear that there is a need for Point Of Purchase display

programme for retailers of Govardhan. Also, I have seen few advertisements at the

retailers which can make consumer aware that product exists. Their shelf display was

also poor i.e. Products are placed at backside of shelf, which directly affect sales as

all products are impulse. And most products being seasonal we really need to make

product visible everywhere, at least at retailer’s place.

When I put myself into consumer’s shoe, generally I don’t go into a shop to drink

Govardhan’s beverage. I go there because I am thirsty, now if our display is poor, I

am going to buy that beverage which has consisted most share of mind (SOM) which

is decided by communication mix and factors (reach, impact and frequency) of that

communication tool (TV, radio, print, other medium) used or by advertisement at

point of purchase (pop).

Example- If I am thirsty and going to shop to drink something and if I see some Govardhan’s

products POP (Poster etc.), I‘ll most likely to buy Govardhan’s product. So if we work more

on POP displays, which I think will help Govardhan to sale better in season.

In today’s cut throat competition POP displays aren’t option but compulsion to get

maximum sales.

-If we see Govardhan beverage’s competitors are as:-

Water

Pepsi products

Coca-Cola products

Juices

Local cold drink manufacturers

Street Hawkers selling Nimbupani etc.

-We can classify all these into 3 main categories as:-

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Competitors

Substitutes

Threat of new entrants

In this cut throat competition all are trying to eat same pie. POP can help us to fight back.

And I think today extensive use of POP is not an option for us, it is rather compulsion for us

because our competitors are doing it and that is helping them to attract some of our

customers.

In warehouse while staking the products, on the boxes instructions are clearly

mentioned about maximum no. of boxes which can be staked one above other but

here these instructions are not followed which can increase waste. So distributor’s

should be made aware about this and asked to instruct concern person to follow the

instructions on boxes strictly.

Recommendations for handling sales force:-

1) We know,

Total sales volume per day= Order per retailers X No. Retailers covered

Now based on this we can increase the sales in two ways as-

Increasing volume of order from each retailer:

By using personal salesman skills

By using personal contacts

By taking help of our products which are sold under Pull Factor i.e. Go

Dahi or no. Of boxes of buttermilk will be decided on the basis of order

volume of other products from same retailers. Because they cannot afford

not to keep that product.

Make good use of schemes to push products.

Increase the no. Of retailers covered per day

By adding new 5 shops per day to your earlier list of retailers visited per day

(+ 5 FORMULA )

By adding snacks centers, college canteens, small hotels etc.

2) As per my observation, salesman is finding it a bit difficult to push our products harder

when it comes to –

very low margins for all our products as compared to our competitors

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our no replacement strategy

no credit facility available

So salespeople should follow the below mentioned approach for getting orders from

retailers:-

Likely arguments done by them and probable answers for them

How to make use of schemes to push our products

Average targets to be achieved for each beat

3) I think to deal with this we can train our salesman or at-least give a structured speech to

talk for all these problems. I believe these are such problems which cannot be removed but

only be managed. So such structured speeches can make our salesmen better equipped to

manage such situations and keep getting larger sales orders. Also it can help us by avoiding

any chance of brand erosion even in minds of the retailers

OPERATIONAL PROCEDURES FOR IMPLEMENTATION OF THE

RECOMMENDATION

Our markets can be segmented along 3 lines:-

Kirana shop Volume

Chemist’s product portfolio

Hotel Cluster

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1. On basis of Kirana shop volume-

Economy

Deluxe

Super Deluxe

2. On basis of Hotel Cluster-

Convenience

Snack Centers

3. On basis of Chemists Product Portfolio-

Where

Economy= retailers having sales volume above average per day for that distributor

Deluxe= retailers having sales volume average per day for that distributor

Super Deluxe= retailers having sales volume below average for that distributor

Convenience= includes outlets which are small eating centers, generally accessible

locally. These are often located alongside busy roads. Here one can stand and does not

have place to sit. It includes STD booths/Pan-Beedi shops/Bakery/Sweet Shops/Juice

centers/Soft Drinks Shops/Tea Shops etc.

Snacks Centers= includes outlets selling items to eat and the outlet should have place

to sit. It includes sit down restaurants/Bars/Dhabas/Cafes etc.

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Questionnaire

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Some photos

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Bibliography

www.govardhanindia.com

www.google.com

www.wikipedia.org

Marketing Management by Philip Kotler

http://www.wikipedia.org/

http://www.google.com/

markering report of gowrdhan milk dairy munchar,pune

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