Project Report

 

Study of Mother  Dairy’s WT-5

Probing the reason(s) for low sales & suggesting remedial  measures thereof.

By: Kalyan Sundar Banerjee Krishna Tomar Priya Madan

 

Sudip Verma Sushant Chowdhary

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INDEX: Acknowledgement Project Details Analysis of Milk Industry Indian Dairy Industry – Facts & Figures Analyzing the product – Milk Operation Flood Cooperative Unions National Dairy Developme Development nt Board About Mother Dairy Other Major Players Delhi’s (NCR) Milk Market Objectives of Research Findings of the Research SWOT Analysis of Mother Dairy & Others Recommendations Annexure

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Acknowledgement

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At th the e ve very ry outs outset et we wo woul uld d lik like e to ex expr pres ess s our our hear heartf tfel eltt Mothe ther r Da Dair iry y Ind India ia Lt Ltd d.’ fo grat gr atit itud ude e to ‘Mo forr al allo lowi wing ng us to contribute, though modestly, in the functioning of WT-5, which has the unique distinction of being the most competitive milk market of Asia by way of our research project which we all found very interesting & challenging. Our thanks are due to Mr.K.P.S. Chauhan who was very kind in explaining to us the challenge that lay ahead of us & also for allowing us to make liberal use of his knowledge, resource &  patience. Venkat katram ramani  ani , for allowing &  We fe fee el grat ate efu full to Mr. Ven encouraging us to pursue our research with utmost objectivity, fairness & flexibility. Mr.. Ku Kuma mar r & Mr Mr.. An Anil il Grov over  er  for We fe feel el in inde debt bted ed to Mr explaining to us the intricacies & peculiarities of milk business which came handy on various occasions & allowed us to retain our focus & finish our research with the satisfaction of a job well done.

We would also like to thank all those people at ‘ Mother Dairy India Ltd.’ who though being total strangers to us lifted our spir sp irit it with with thei theirr ch chee eerf rful ul smil smiles es & gave ave us th the e co cour urag age e &  inspiration to work zealously on the project assigned to us &  do justice to it. I am extremely thankful to my Faculty Guide Dr. Anurika vaish at Indian Institute of Information Technology for her invaluable Guidance and Suggestions during my Training. We all would also like to express our gratitude towards our parents from whom we have inherited all the desired virtues &  to whom we look up to as living inspirations. Last, but by no means the least, we would like to pay obe ob eis isa ance nce to the Almig lmight hty y God fo forr bestowin owing g on us his bl bles essin sings gs & also also fo forr be bein ing g on ou ourr si side de when when th the e chal challe leng nge e 5

 

seemed insurmountable & the going was tough. Our unshakeable faith in Him allowed us to take this research to its logical conclusion.

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Project Details

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Name of the company:

“Mother Dairy India Ltd.” 

Title of the project:

Probing the reason(s) for low sales & suggesting remedial measures thereof.

Type of project:

Research based marketing project.

Duration of project:

6 weeks (from May 1 to June 15, 2005)

Number of team members: 5 Area under research:

WT-5 (West Delhi)

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Analysis of Milk Industry

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Traditionally, in India dairying has been a rural cottage industry. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. In earliermilk years, many households households owne owned theirWith own the ‘family cow’ or secured from a neighbour who hadd one. increase in urban population fewer households could afford to keep a cow for private use & moreover there were other problems also like the high cost of milk production, problems of sanitation etc. restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually Gradua lly farme farmers rs liv living ing nea nearr the cit cities ies too took k advant advantage age of the their ir prox pr oxim imit ity y to th the e ci citi ties es & be bega gan n su supp pply lyin ing g milk milk to th the e ur urba ban n population; this gave rise to the fluid milk-sheds we see today in every city of our country. Prior to the 1850s most milk was necessarily produced within a shor sh ortt dist distan ance ce of th the e pl plac ace e of co cons nsum umpt ptio ion n be beca caus use e of la lack ck of  suitable means of transportation and refrigeration. The In The Ind dian ian Da Dair iry y Indu dust strry has ma mad de ra rap pid prog progrress ess si sin nce Independence. A large number of modern milk plants and product factories have since been established. These organised dairies have been successfully engaged in the routine commercial production of  pasteu pas teuriz rized ed bot bottle tled d mil milk k an and d var variou ious s Wes Wester tern n and Indian Indian dairy dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of  Aarey Milk Colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. Indian dair Indian dairy y secto sectorr is still mainly an unor unorgani ganised sed sector as barely 10% of our total milk production undergoes organised handling.

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Indian Dairy Facts & Industry Figures –  

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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 Paste asteur uriz izat atio ion n and and bottli ling ng of mil ilk k on a la larg rge e sca scale fo forr organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc. Establ Esta blis ishm hmen entt of Mi Milk lk Pl Plan ants ts unde underr the the Fi Five ve-Y -Yea earr Plan Plans s for for Dairy Development all over India. These were taken up with the dua the uall object of inc incre reas asin ing g the natio ation nal le leve vell of mil ilk k consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk. Milk Production •

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•

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India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in 2003-04. India is the largest producer of Milk in the World (replacing USA) Per capita availability of milk presently is 231 grams per day, up from 112 grams per day in 1968-69. Indi In dia' a's s 3. 3.8 8 perc percen entt an annu nual al grow growth th of milk milk prod produc ucti tion on surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year.

Marketing •

In 20042004-05, 05, ave averag rage e dai daily ly coo coope perat rative ive milk milk marke marketin ting g stoo st ood d at 15 155 5 lakh lakh li litr tres es,, re regi gist ster erin ing g a growt rowth h of 4.2 4.2 percent over 148.75 lakh litres in 2003-04.

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•

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Dairy Cooperatives now market milk in about 200 class cities including metros and some 550 smaller towns. During the last decade, the daily milk supply to each 1,000 urban consumers has increased from 17.5 to 52.0 litres.

Innovation •

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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. Ninet Nin ety-f y-five ive pe perce rcent nt of dairy dairy equip equipme ment nt is produc produced ed in India, saving valuable foreign exchange.

Macro Impact •

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The annual value of India's milk production amounts to about Rs. 880 billion. Dairy coop cooperat eratives ives generat generate e emp employm loyment ent opportu opportunitie nities s for some 12 million farm families. Dair Da iry y Fa Farm rmin ing g is the the si sing ngle le la larg rges estt cont contri ribu buto torr to the the economy(5% of GDP &13% of employment) Dairy industry represents a huge opportunity being the largest si sing ngle le FMCG FMCG Ma Mark rket et:: Ur Urba ban n Mk Mktt si size ze Rs 33 3300 000 0 Cr Cror ores es an and d organized sector Rs 11000 Crores representing a huge opportunity for conversion and growth.

Key chal alle leng nges es be befo fore re In Indi dian an Da Dair iry y In Indu dust stry ry ar are e as Key ch follows:

• Ensuring Quality • Procurement and efficiencies in supply chain • Product differentiation and value addition

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Per Capita Monthly Expenditure on Broad Groups of Items  Monthly Consumption Expenditure (in Rs.) 

NSS Round

Milk and Meat, Milk Egg, Products Fish

Total Food

Total NonFood

Total Exp.

Average Size of  Household

25th (1970 - 1971) Rural

3.03

1.02

25.98

9.33

35.31

Urban

5.01

1.9

34.04

18.81

52.85

27th (1972 - 1973) Rural

3.22

1.09

32.16

12.01

44.17

5.22

Urban

5.91

2.07

40.84

22.49

63.33

4.72

32nd (1977 - 1978) Rural

5.29

1.84

44.33

24.56

68.89

5.22

Urban

9.16

3.33

57.67

38.48

96.15

4.89

Rural

8.45

3.40

73.73

38.71

112.45 5.20

Urban

15.15

5.92

96.97

67.06

164.03 4.85

38th (1982)

42nd(1986 - 1987) Rural

13.48

5.25

92.55

48.38

140.93 5.26

Urban

23.32

9.25

128.99 93.66

222.65 4.79

43rd(1987 - 1988) Rural

13.63

5.11

100.82 57.28

158.10 5.08

Urban

23.83

8.85

139.75 110.18

249.93 4.71

44th(1988 - 1989) Rural

15.65

6.12

111.80 63.30

175.10 5.17

Urban

26.74

10.59

152.49 114.36

266.85 4.87

th

45 (1989 - 1990)

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Rural

18.35

6.84

121.78 67.68

189.46 4.96

Urban

29.53

11.42

165.46 132.54

298

4.66

46th (1990 - 1991) Rural

19.04

7.08

133.34 68.78

202.12 4.81

Urban

32.37

12.27

185.77 140.00

326.75 4.55

47th (July - Dec. 1991) Rural

21.90

8.20

153.59 89.91

243.50 5.00

Urban

37.21

13.49

207.77 162.57

370.34 4.73

48th (Jan. - Dec. 1992) Rural

23.00

8.00

161.00 87.00

247.00 5.20

Urban

42.00

14.00

224.00 175.00

399.00 4.80

49th(Jan. - June 1993) Rural

23.00

9.00

159.00 85.00

244.00 5.10

Urban

41.00

14.00

221.00 162.00

382.00 4.60

50th(July 1993 - June 1994) Rural

27.00

9.40

178.00 104.00

281.00 4.90

Urban

45.00

15.50

250.00 208.00

458.00 4.50

10.00

189.00 121.00

309.00 4.90

Urban 49.00 17.00 52nd (July 1995 ? June 1996)

271.00 237.00

508.00 4.60

Rural

32.38

10.94

207.75 136.53

344.29 5.00

Urban

56.45

19.11

299.98 299.28

599.26 4.60

51st (July 1994 ? June 1995) Rural

27.00

53rd (Jan-Dec 1997) Rural

39.31

11.79

231.99 163.02

395.01 5.00

Urban

62.75

19.58

320.26 325.19

645.44 4.60

12.65

232.40 149.67

382.07 5.00

54th (Jan-? June 1998) Rural

36.54

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Urban

64.63

21.94

339.71 344.57

684.27 4.70

55th (July 1999 ? June 2000) Rural

42.56

16.14

288.80 197.28

486.07 5.00

Urban

74.18

26.77

410.10 444.10

854.96 5.00

Source : Basic Animal Husbandry Statistics,2004, GOI.

Share of Agriculture and Livestock Sector in GDP (At current prices in Rs. Billion)

 Year

GDP (Total)

GDP GD P ((A Agr griicu cult ltur ure) e) Rs.

GD GDP P ((Li Live vest stoc ock k Sec Secto tor) r)

% Share

Rs.

% Share

1980-81

1,224

425

34.72 59

4.82

1985-86

2,338

700

29.94 139

5.95

1986-87

2,600

744

28.62 156

6.00

1987-88

2,949

835

28.31 183

6.21

1988-89

3,527

1,041

29.52 217

6.15

1989-90

4,087

1,154

28.24 275

6.73

1990-91

4,778

1,352

28.30 308

6.45

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1991-92

5,528

1,593

28.82 375

6.78

1992-93

6,307

1,779

28.21 432

6.85

1993-94

7,813

2,218

28.39 507

6.49

1994-95

9,170

2,552

27.83 577

6.29

1995-96

10,733

2,778

25.88 650

6.06

1996-97

12,435

3,340

26.86 747

6.01

1997-98

13,901

3,535

25.43 819

5.89

1998-99

15,981

4,064

25.43 911

5.70

1999-00

17,618

4,224

23.98 992

5.63

2000-01

19,030

4,235

22.25 1093

5.74

2001-02

20,910

4,730

22.62 1187

5.68

2002-03

22,495

4,560

20.27 1209

5.37

* Provisional; ** Quick Estimate; Source : Central Statistical Organisation, Dept. of Statistics, GOI

Dairy Cooperatives- Progress on Key Parameters during 2003-04 * States/UT

Andhra Pradesh Assam Bihar  Chhattisgarh

Farmer  Women Procurement Members Members (TKGPD) $ (Nos) ('000) ('000)

DCS #

(TLPD) $

5072

756

143

950

898

65

3

0

4

8

4657

240

36

396

288

424

19

4

18

28

DELHI Goa

Marketing

1937 169

19

3

43

89

Gujarat

11400

2360

540

5102

2101

Haryana

4219

230

30

331

153

Himachal Pradesh

283

21

6

25

15

Jammu &

**

**

**

**

17

 

Kashmir  Jharkhand

80

2

0

6

163

Karnataka

9293

1737

444

2243

1518

Kerala

3208

706

125

614

738

Madhya Pradesh

4699

231

33

294

296

18349

1582

366

2680

2629

76

3

0

2

4

1654

122

54

127

132

96

32

14

54

53

Punjab

6892

402

42

745

496

Rajasthan

9643

534

111

1036

855

189

7

0

9

7

7631

1988

717

1664

1206

84

4

1

2

9

Uttar Pradesh

18104

824

237

814

436

West Bengal

2287

172

59

324

816

All - India Total 108574

11994

2963

17483

14875

Maharashtra Nagaland Orissa Pondicherry

Sikkim Tamil Nadu Tripura

@ Organised ( cumulative ) *Provisional, includes conventional societies and Taluka unions formed earlier  ** Not reported Chhattisgarh & Jharkhand reported separately from 2003-04

 

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Milk Production

NUMERO UNO

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The Upside Increasing awareness: 

As In Indi dia a ente enters rs an er era a of ec econ onom omic ic refo reform rms, s, agri agricu cult ltur ure, e, particularly the livestock sector, is positioned to be a major gro row wth ar are ea. The fa fact ct tha hatt dair iryi yin ng co coul uld d pla lay y a more cons co nstr truc ucti tive ve ro role le in prom promot otin ing g ru rura rall welf welfar are e an and d re redu duci cing ng povert pov erty y is inc increa reasin singly gly be being ing rec recog ogniz nized ed.. Fo Forr examp example, le, mil milk k produ pro ducti ction on alone alone inv involv olves es more more than than 70 millio million n prod produce ucers, rs, each ea ch rais raisin ing g on one e or tw two o cows cows/b /buf uffa falo loes es.. Cow Cow dung dung is an important input as organic fertilizer for crop production and is also widely used as fuel in rural areas. Cattle also serve as an insura ins urance nce cover cover for the po poor or hou house sehol holds, ds, being being sold sold during during times of distress. Supply matches demand: 

Effort Effo rts s to in incr crea ease se milk milk pro rodu duct ctio ion n by dair dairy y fa farm rmer ers s are are strongly influenced by the degree to which demand signals are transmitted through the marketing system. Cooperatives have played an important role in transmitting the message of urban mark ma rket et dema demand nd to them them.. Si Sinc nce e th the e dem demand and in the the urba urban n scenario is rapidly increasing so is the supply generated by the farmers. Surplus capacity: 

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

The Downside Technological gaps: 

Several areas of the dairy industry can be strengthened by the induction of state-of-the-art state-of-the-art technologies from overseas. Those 20

 

who br who brin ing g in new new tech techno nolo logi gies es or si sign gn join jointt ve vent ntur ures es with with foreign companies stand to benefit the most. To make the best outt of th ou the e pr pres esen entt situ situat atio ion, n, the the foll follow owin ing g area areas s requ requir ire e immediate remedial remedial action on the part of dairy entrepre entrepreneurs: neurs: Raw milk handling needs to be upgraded in terms of  phys ph ysio ioch chem emic ical al an and d mi micr crob obio iolo logi gica call attr attrib ibut utes es of the the milk milk collected. The use of clarification and bactofugation in raw milk processing can help improve quality of the milk products. Better operational efficiencies are needed to improve yields, reduce waste, minimize fat/protein losses during processing, contro con troll pr prod oduct uction ion cos costs ts,, save save en energ ergy y and extend extend shelf-l shelf-life ife.. The Th e adop adopti tion on of Go Good od Ma Manu nufa fact ctur urin ing g Prac Practi tice ces s (GMP (GMP)) and and HACCP would help manufacture milk products conforming to int international standards and thus make their exports competitive. Latest packaging Latest packaging technol technology ogy can help retain nutritive nutritive value of  pack pa ckag aged ed pr prod oduc ucts ts and and ex exte tend nd th thei eirr shel shelff-li life fe.. For For prop proper er storage and transportation, cold chain needs to be strengthened.

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Analyzing the product Milk

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Milk- An almost complete food

Milk is not only an excellent source of Calcium, which is vital for strong bones and teeth; it also contains many other vital nutrients like: Protein: For growth and repair of body tissues. Carbohydrates: In the form of lactose. Fat : For energy.

It also contains Vitamins needed for good health; Vitamin A, B1, B2, B3, B12, FOLIC ACID and Vitamin D are all found in significant quantities in milk. A glass of milk provides 50% of the daily intake of calcium required by teenagers.

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Demand & Supply Equations: Supply:

Supp Su pply ly of milk ilk is af affe fect cted ed by th the e seas season onal al in infl flue uenc nces es,, in summers the milkmake supplies in surplus winters it soars. Therefore, dairies generally usedip of & the milk available with them during winters for manufacturing milk powder so that they can meet the increased demand during summers. Demand:

Demand for milk is not very stable either, during festivals its deman de mand d increa increases ses expone exponent ntial ially ly .In 2003, 2003,for for examp example, le, the dema de mand nd duri during ng fe fest stiv ival als s su surp rpas asse sed d ev even en Moth Mother er Dair Dairy’ y’s s projections & its booth had to encounter a rare problem of  being out ofsystem stock, aofblot indeed on an otherwise impeccable distribution Mother Dairy. Since then, to its credit Mother Dairy brought efficiency in the system & reevaluated its strategy to encounter this problem & to be fair to them they have lived to the expectations of its consumers by making milk easily available.

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Operation Flood

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Launched in 1970, Operation Flood has helped dairy farmers direct their own development, placing control of the resources they create in their own hands. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities cities,, red reduci ucing ng se seaso asonal nal and regio regional nal price price variat variation ions s while ensuring that the producer gets a major share of the consumers' rupee. The bedrock of Operation Flood has been village milk producers’ cooperatives, which procure milk and provide in inp put uts s and se serv rvic ice es, mak akin ing g mode odern manag nagement and technology available available to mem members. bers. Operation Flood's ob objectives jectives included: •

•

•

Increase milk production ("a flood of milk") Augment rural incomes Fair prices for consumers

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Programme implementation: Operation Flood was implemented in three phases. Phase Pha has se I (19 197 700-1 198 980 0) was fin inan ance ced d by the sal ale e of  I skim sk imme med d milk milk po powd wder er an and d but utte terr oil oil gift gifted ed by th the e

Europe Euro pean an Un Unio ion n th then en EE EEC C thro throug ugh h th the e Worl World d Fo Food od Pro rogr gram amm me. NDDB NDDB plan planne ned d the the prog progra ram mme and and negotiated negotiate d the details of EEC assistance. During Duri ng its its firs firstt ph phas ase, e, Op Oper erat atio ion n Fl Floo ood d lin linke ked d 18 of  India's premier milk sheds with consumers in India's four major met metropolitan ropolitan cities: Delhi, Mumbai, Calcutta and Chennai.

Phase Operation Flood's Phase II (1981-85) increased the milk II  sheds from 18 to 136; 290 urban markets expanded

the outl the outlet ets s fo forr mil ilk. k. By the end end of 1985, 1985, a self self-sust su stai aini ning ng sy syst stem em of 43,0 43,000 00 vi vill llag age e coop cooper erat ativ ives es cove co veri ring ng 4.25 4.25 mi mill llio ion n mi milk lk prod produc ucer ers s had had be beco come me a realit re ality. y. Domes Domestic tic milk milk po powd wder er produ producti ction on inc increa reased sed 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 Bank loan he helped lped to promot promote e self-reliance self-reliance.. Direct marketing of milk by producers' cooperatives increased by several million litres a day.

Phase Ph Phase ase III (1 (1985 985-1 -1996 996)) ena enable bled d dairy dairy coope cooperat rative ives s to III expand and strengthen the infrastructure required to

procu rocure re an and d mark rke et in incr cre easi sing ng volu volum mes of mil ilk. k. Vete Ve teri rina nary ry firs firstt-ai aid d he heal alth th care care serv servic ices es,, fe feed ed and and artificial insemination services for cooperative members were extended, along with intensifie ied d member education. 27

 

Opera Ope rattion ion Flood lood''s Phas ase e III conso onsoli lid dated In Ind dia ia''s dai airy ry 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 wom en me memb mbers ers and Wom Woman’ an’s s Dai Dairy ry Coope Cooperat rative ive Socie Societie ties s increasing significantly. Phase III gave increased emphasis to research and develop lopment in anim ima al health lth and animal nutrition. Innovations like vaccine for Theileriosis, bypass protein feed and an d urea urea-m -mol olas asse ses s mine minera rall bloc blocks ks,, al alll cont contrib ribut uted ed to the the enhanced productivity of milk animals. From the outset, Operation Flood was conceived and implemented implemente d as much more more than a d dairy airy progra programme. mme. Rather, dairying was seen as an instrument of development, ge gener nerati em emplo ployme yment and reg regula ular inc for millio mil ns "Ope "O per rnt atio ation n F lo lood od r cincom anomes bes e view vi ewed edlions as of  a rural rur al ating peopl peng ople. e. twenty year experiment confirming the Development Vision" (World Bank Report 1997c.)

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Rural

 

Cooperative Unions

29

 

Over almost half a century ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else else in In Indi dia. a. His His inco income me wa was s de deri rive ved d al almo most st en enti tire rely ly fr from om seasonal crops. The income from selling milk was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if they market their milk themselves. In order to do that they th ey ne need eded ed to fo form rm so som me sort sort of an orga organi niza zati tion on.. This This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December December 14, 1946. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. •

•

•

•

More than 900 village cooperatives have created jobs for people in their own villag lages and that too with ithout disturbing the socio-agro-system and thereby the exodus from the rural areas has been arrested to a great extent. The yearly elections of the management committee and its chairman, by the members, are making the pa parti rticip cipant ants s aware aware ofprocess. the their ir rights rights and ed educa ucatin ting g the them m about the democratic Perpetuating the voluntary mix of the various ethnic and social groups twice-a-day for common causes and mutual betterment has resulted in eroding many social ineq inequa ualit litie ies. s. The The ri rich ch and and th the e poor poor,, the the el elit ite e and and th the e ordi or dina nary ry come come toge togeth ther er to coop cooper erat ate e for for a comm common on cause. Live exposure to various modern technologies and their application in day-to-day life has not only made them aware of these developments but also made it easier for the hem m to ad adop optt the hes se very very proc rocesse sses for for their heir own

30

 

•

betterment. One might wonder whether the farmer who knows almost everything about impregnating a cow or buff bu ffal alo, o, is also also eq equa uall lly y awar aware e of th the e proc proces ess s in the the humans and works towards planning it. The income from milk has contributed to their household e conomy. ,Bnow eside s, a wosay men wh o areconomy. e the major participants, participants have in, the home

This in This inco com me is help helpin ing g th thes ese e peop people le not not on only ly to li libe bera rate te themselves from the stronghold of poverty but also to elevate their social status. The system succeeded mainly because it provides an assured market mar ket at remune remunerat rative ive pr price ices s for pro produc ducer ers' s' mi milk lk besid besides es acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of  the farmers. It also enables the totional high qualit qua lity y milk milk and mil milk k pr prod oduct ucts. s. consumer Contr Contrary ary an to access the tr tradi aditio nal system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. •

•

•

•

•

Pro rodu duce ce an ap appr prop opri riat ate e blen blend d of the the poli policy cy make makers rs farme far mers rs board board of man manage ageme ment nt and the profe professi ssiona onals: ls: each group appreciating its roles and limitations. li mitations. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic agro-economic systems.

Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers. Even Ev en th thou ough gh,, grow growin ing g wi with th time time and and on scal scale, e, it has has remained with the smallest producer members. In that

31

 

sense, Cooperative Movement is an example excellence, of an intervention for rural change.

par

Recently the Indian cooperative movem movement ent got a much needed facelif fac elift. t. With With com compe petit tition ion sna snapp pping ing at its hee heels, ls, the secto sectorr which has been governed by arcane laws until the recent past willl see a spe wil specia ciall pr provi ovisio sion n ins insert erted ed in the Compan Companies ies Act, Act, 1956 19 56.. All the coo oop perat rativ ive e un unio ions ns wil illl be rere-chr chris isttened ned cooperative companies; they will come under the purview of  the th e re reg gis isttra rarr of com omp panie anies s, in ins stead of the re reg gis isttrar rar of  cooperatives. While they will have to adhere by the audit procedures like any corporate, they will differ from ordinary companies in many ways. Not everyone can join a cooperative. Only users can enroll as members at a fixed membership fee. Quantum of  busi bu sine ness and and th not no te eq equi uity ca capi pita tallibil wi will lly see se anise elec ecti tion on th the e bo boar ard. d.ssAnd ther ere wi will lltybe flex flexib ilit ity toe rais ra eel capi ca pita talltofr from om members and outside. Dairy Cooperatives account for the major share of processed liqui liq uid d milk milk ma mark rket eted ed in th the e coun countr try. y. Milk Milk is pr proc oces esse sed d and and marketed by 170 Milk Producers' Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's programmes and activitie ies s seek to strengthen the functioning of Dairy Cooperatives, as producerow owne ned d and and of cont contro roll lled ed org rgan aniz izat atio ions ns.providing . NDDB NDDB them supp suppor orts ts the the development dairy cooperatives by financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become syno sy nony nym mous ous wi witth quali ualitty an and d va valu lue e. Brand ands li like ke Amul (GCMM (GC MMF) F),, Vijaya Vijaya (A (AP) P),, Verka Verka (Punj (Punjab) ab),, Saras Saras (R (Raja ajasth sthan) an).. Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. Some of the major Dairy Cooperative Federations include:

32

 

Andhra Pradesh Dairy Developme Development nt Cooperative Federation Ltd (APDDCF) Bihar State Cooperative Milk Producers Federation Ltd (COMPFED) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Developmen Developmentt Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) West Bengal Cooperative Milk Producers Federation Ltd. (WBCMPF)

The Dairy Cooperative Netwo Network: rk: • • • •

includes 170 milk unions operates in over 338 districts covers nearly 1,08574 village leve levell societies societies is owned by nearly 12 million farmer members.

33

 

Apart from making India self sufficient in milk, these dairy cooperatives have established our country as the largest milkproducing nation in the world!

34

 

National Dairy Development Developme nt Board

35

 

The Nat The Nationa ionall Dairy airy De Deve velo lop pment Board ard was cre create ated to promote, finance and support producer-owned and controlled orga or gani niza zati tion ons. s. NDDB NDDB's 's pr prog ogra ramm mmes es an and d acti activi viti ties es seek seek to strengthen farmer cooperatives and support national policies that th at are fav avo our ura able to the growth of such such in inst stit itut utio ion ns. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperat Cooperation. ion. A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years. This commitment has been rewarded with achievements made by cooperative dairies in milk production, employment generation, generation, per capita availability of milk, foreign exchange savings and increased farmer incomes. Nati tiona onall Da Dair iry y De Deve velop lopme ment nt Boar Board d (NDD (NDDB) B) has The Na replac rep laced ed exp exploi loitat tation ion with with em empo power werme ment, nt, conven conventio tion n wit with h modernity, stagnation with growth and transformed dairying into an instrument for the development of Indian farmers.

The National Dairy Development Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to "t "tra rans nspl plan antt th the e sp spir irit it of An Anan and d in many many othe otherr plac places es". ". He wanted the Anand model of dairy development - with institutions owned by rural producers, which were sensitive to their needs and responsive to their demands - replicated in other parts of the country. The Board Board's 's cre creat ation ion was rou route ted d in th the e convic convictio tion n that that our nation's socio-economic progress lie ies s largely on the development developm ent of rural India. Thus ND Thus NDDB DB's 's mand mandat ate e is to pr prom omot ote, e, fi fina nanc nce e an and d su supp ppor ortt pro rod duc uce er-o -ow wned and and contr ontrol olle led d org organ aniz izat atio ion ns. NDDB NDDB's 's pro rog gra ram mmes and ac acttiv ivit itie ies s se see ek to streng rength the en farm armer cooperatives and support national policies that are favourable to the growth of such institutions.

36

 

NDDB belie NDDB believes ves that that the Rs 7, 7,00 000-c 0-cror rore e (Rs (Rs 70-bi 70-billio llion) n) mil milk k coope coo perat rative ive marke markett is ge gett tting ing mu much ch mo more re com compe petit titive ive and wants to strengthen the position of cooperatives through a multi-pronged action plan with an outlay of Rs 800 crore (Rs 8-billion). This includes using MDFL to enter into 51:49 joint venture companies with state cooperative assist them with marketing value added productsfederations and to helpto them in other ways to become self-reliant enterprises.

37

 

Mother Dairy India Limited

38

 

‘Mother ‘Mothe r Dair Dairy’  y’  is th the e larg larges estt liqu liquid id mi milk lk br bran and d in As Asia ia.. It

st star arte ted d its its op oper erat atio ions ns in 19 1974 74 un unde derr the the Oper Operat atio ion n Fl Floo ood d pro rog gra ram mme of the Na Nati tio ona nall Da Dair iry y Deve Develo lop pment Board ard. Oper Op erat atio ion n Floo Flood d is one one of th the e la larg rges estt dai airy ry deve develo lopm pmen entt projects in the world. Mother Diary, Delhi is IS/ISO- 9002 &  IS-15000 (HACCP) certified organisation. ‘Mother Dairy’  is the single largest brand of milk in Delhi,

India as well as in Asia, marketing about 1.9 million liters of  milk per day. Mother Dairy commands 40% market share in the organized sector in and around Delhi, primarily because of  consistent quality and service reliability. ‘Mother ‘Mothe r Dair Dairy’  y’ , whic which h mar arke kets ts over over 15 la lakh kh LPD LPD of mil ilk k

procured procur ed from from var variou ious s St State ate fede federat ration ions s in Delhi, Delhi, has now entered the Mumbai market. In addition to toned milk through Bulk vending, Mother Dairy also markets Full cream milk, standardised milk, toned milk, double toned milk and Skimmed milk (lite) in polypacks.

Mother Moth er Da Dair iry, y, Delh Delhii is an IS/I IS/ISO SO-9 -900 001: 1:20 2000 00 and and Haza Hazard rd Analysis Analy sis Critical Critical Cont Control rol Points Points (HAC (HACCP) CP) and IS-14001 IS-14001:19 :1996 96 Environment Management System (EMS) Certified organisation. Mother Dairy was the first industry in country to implement ISO-14031(Environment ISO-14031 (Environment Performance Evaluation) projec project. t.

39

 

This provides assurance to the consumer in respect of  Qua Qu ality lity and Saf afe ety of pr prod odu ucts cts manu manufa fac ctu ture red d and  marketed by Mother Dairy.

The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first phase of Operation Flood in 1974. Considering the success of Dairy industry NDDB established Fruit & Vegetable Project in Delhi in 1988 with "SAFAL" as its umbre umb rella lla brand. brand. Wit With h a vie view w to sep separa aratin ting g the comme commerci rcial al activi act ivitie ties s fro from m devel develop opmen mental tal act activit ivities ies,, the NDDB NDDB merge merged d Mother Dairy and the Fruit & Vegetable project into a wholly owned own ed compan company y nam named ed Mo Mothe therr Dairy Dairy Fruit Fruit &Veg &Veget etab able le Lt Ltd d (MDFVL) in April 2000. This becomes the holding company of  Moth Mo ther er Dair Dairy y In Indi dia a Lt Ltd d (M (MDI DIL) L)-- a mark market etin ing g co comp mpan any y and and Moth Mo ther er Da Dair iry y Food Foods s Pr Proc oces essi sing ng Lt Ltd d (MDF (MDFPL PL))- a proc proces essi sing ng company. The company a highlylike trusted for its wide range of milk is products Milk,household Flavoured name Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitner, Ghee etc. Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives. The objective of Mother Dairy is to: (a)) ensu (a ensure re th that at mi milk lk prod produc ucer ers s and and farm farmer ers s regu regula larl rly y and and continually receive market prices by offering quality milk, milk mi lk pr prod oduc ucts ts and and othe otherr fo food od pr prod oduc ucts ts to co cons nsum umer ers s at competitive prices and; (b)

Uphold hold in inst stit itut utio iona nall stru struct ctur ures es that hat empowe ower mil ilk k produce cerrs and farmers through processes that are equitable.

At Mother Dairy, processing of milk is controlled by process auto au toma mati tion on wher whereb eby y stat statee-of of-t -the he-a -art rt mic icro ropr proc oces esso sorr technology is adopted to integrate and comple lettely auto au toma mate te all all fu func ncti tion ons s of th the e mi milk lk proc proces essin sing g area areas s to ensure high product quality/ reliability and safety.

40

 

 In addition to its market leadership in India, Mother Dairy is

also active in the global arena, exporting its range of dairy products to various international i nternational markets.

41

 

Process of Procurement & Distribution of Milk:

Farmers and the Milk Co-operative Society

The Operation Flood programme programme helps both farmers as well as the city consumers. The programme ensures that the farmers get a fair price for their cow & buffalo milk and the consumers get best quality milk at reasonable prices. In order to maintain freshness, this milk is chilled and then transported transporte d to Mother Diary in insulated milk tankers by road and by rail.

Checking the quality of milk

At the Dairy stringent hygienic standards are maintained. The milk in the tankers is first checked for quality and freshness and then unloaded into huge insulated stainless steel storage tanks. These tanks have a capacity of 1 lakh liters each. The presence of adulterants (impurities) like urea, neutralisers, preservatives and germs like bacteria are checked. All these tests ensure that only good quality milk is accepted. accepted. Once empty, the tankers are thoroughly cleaned and sanitized using acid and alkali. The tankers are then finally rinsed with water.

Processing of milk

Unprocessed milk may contain small dirt particles invisible to the naked eye. In order to remove these particles the milk has to be processed.

To process milk at Mother Dairy, the milk is first clarified. This is done in a clarifier which spins the milk at a very high speed, 42

 

as a result of which the dirt particles are thrown out and drained. The milk is then pasteurize pasteurized d to make it safe for human consumption. This process destroys any disease causing bacteria and also the shelf lifedegree of the Celsius milk. During pasteurization theincreases milk is heated to 72 for 15 seconds and then rapidly cooled down to 7 degree celsius. This process, unlike boiling, does not affect the nutritional value of  the milk. Pasteurized milk is safe to drink without boiling as long as it is kept cool at all times.

Fortification with Vitamin A

Toned milk during processing is fortified with Vitamin A. The deficiency of Vitamin A can lead to night blindness and skin horning.

Homogenisation

At Mother Dairy the milk is also homogenised. This ensures that the customers get uniform amount of cream in their milk. In this process the milk is pumped at a very high pressure turning the cream into tiny droplet droplets s thus distributing the fat through out the milk. These droplets do not float to the surface to form a creamy layer. That is why no creamy layer appears when Mother Dairy milk is boiled at home. Mother Dairy shops sell homogenised toned milk which contains minimum 3% fat even though you cannot notice it. Dispatching of milk

After processing, the milk is chilled and stored in silos and further chilled to about 2 C. by the glycol chilling chilli ng system, and

43

 

then dispatched to the Milk Shops in insulated road milk tankers. Prior to the milk being dispatched in tankers, it is tested for quality to make sure that it meets the quality standards. When the tanker arrives at the shop the milk is transferred into a large refrigerated tank.

Making the milk available

The control room is very vital to the efficient distribution of  milk to the 900 shops across the city. It organizes the tanker routes and its staff is responsible for ensuring that shops do not run out of milk. Each milk tanker is fitted with a wireless set. As soon as the incharge at the control room learns that a particular shop is running out of milk, he contacts the tanker nearest to the shop on the wireless which then delivers the extra milk to it. Quality control all the way

A final quality check of the mill is also made at the shop itself. This ensures that milk reaching the customers is of same quality as dispatched from the Dairy.

Consumer Information

To raise the consumers awareness regarding Adulteration of  milk, Mother Dairy has thrown open its testing facilities. In its laboratories consumers can see for themselves how impurities and adulterants are easily detected. Mother Dairy also has two "mobile labs" that can test milk in the residential colonies. All this is part of a commitment commitment to provide the consumers with the purest milk nature has to offer.

Keeping milk cool

44

 

Mother Dairy takes care to keep milk cool at every stage-it is chilled before transporting transporting in insulated tankers, it is stored in insulated silos and kept in refrigerated tanks at the shops. Keeping milk cool slows down the rate at which bacteria multiply. This also increases its shelf life.

Caring for the environment

Solar Panels: In an effort to conserve fuel, Mother Dairy utilises the abundant solar energy to preheat the water going into the boilers. This also minimizes the pollution caused by burning of fuels like coal, oil etc.

Effluent treatment plant:

The water used for cleaning equipment equipment and tankers is treated at the effluent treatment plant in the Dairy before being discharged into the sewege system.  

45

 

Other Major Players

46

 

AMUL Amul is th Amul the e late latest st en entr tran antt in th the e high highly ly co com mpeti petiti tive ve milk ilk market of NCR where Mother Dairy had an almost monopoly. Amul is the brand owned by GCMMF is handling almost 80 lakh litres of milk daily.

PARAS Dairy It sells 3 lakh LPD

DMS GOPALJEE PARAM

COMPARITIVE ANALYSIS OF MAJOR MILK BRANDS MILK  BRANDS

Amul

Full

Mother  Dairy 19

19

Delhi Milk   Gopaljee Scheme 19 19

Cream Toned

Paras 19

15

15

15

15

15

Double Toned Standard

13

NA

NA

NA

NA

17

NA

NA

NA

NA

Skimmed

11

NA

NA

NA

NA

47

 

Delhi’s (NCR) Milk Market

48

 

Delhi National Capital Region (NCR), among the biggest milk mar arke kets ts in the coun counttry ry,, is domin ina ated by Moth other Dai airry currently. The Delh The Delhii mark market et co comp mpri rise ses s 40 la lakh kh litr litres es cu curr rren entl tly y an and d is dominated by NDDB owned Mother Dairy, which sells 10 lakh LPD. The other organized sector players are Paras Dairy, which sells sel ls 3 lakh lakh LP LPD, D, st state ate-ow -owned ned De Delhi lhi Milk Milk Schem Scheme e (2.5 (2.5 lak lakh h LPD), Gopaljee (1-1.5 lakh LPD) and Britannia 30-40,000 LPD. Amul and NDDB's non-compete agreement has prevented the former from launching its liquid milk in the Delhi market till 2003.With the non-compete agreement having run out, Amul launched launch ed its fresh fresh mil milk k in Delh Delhii in two varia variants nts — full cream cream and toned — priced at par with that of Mother Dairy .Amul, to its delight, has seen the demand for its milk going up by leaps and an d bo boun unds ds in th the e ci city ty an and d is now now plan planni ning ng to en ente terr in into to allia allianc nces es with with da dairi iries es loca locate ted d ar arou ound nd De Delh lhii such such as Indi Indian an Potash and Modern Dairy to cater to the demand. Amul already has a lease agreement with Kwality Dairy's unit in Faridabad where it is planning to increase capacity and has also decided to set up a new 5-lakh litre per day dairy plant at an in inve vest stme ment nt of Rs 40 cr cror ore e in Hary Haryan ana a to cate caterr to the the northern market. GCMMF officials say the company's milk capacity has already touched 80,000 litres per day (LPD) and have plans to take it to 3 LPD. Amul is now selling through 2,500 retail outlets and will increase this to 7,500 apart from covering outlets which are selling Amul butter. Another player gearing up to unseat Mother Dairy from the lead leader ersh ship ip th thro rone ne is th the e Rs 40 4000-cr cro ore Paras aras grou group. p. Th The e company has hit upon an innovative strategy of introducing milk machines dispense token at Rs per litre lit re.. vending Pa Para ras s says sa ys this this which stra strate tegy gy targ target ets s the the milk unbr unbran ande ded d13milk mi lk 49

 

segmen segm entt wh whic ich h ac acco coun unts ts for for 45 pe perr cent cent of th the e tota totall milk milk consumed in Delhi NCR. The company plans to put up Paras Milk Point (PMP) machines at variou various s fas fast-m t-movi oving ng con consum sumer er goo goods ds out outlet lets s all ove overr the capital. Over 50inmachines — each costing Rs 2to lakh — will be installed phases over the next fourover months cater to toned milk users. The PMP machines carry about 250 litres of milk and have an in-b in-bui uilt lt re refr frig iger erat ator or.. Para Paras s br bran and d curr curren entl tly y reac reache hes s 9,00 9,000 0 outl ou tlet ets s in an and d ar arou ound nd De Delh lhi, i, and and the the group roup is lo look okin ing g at penetrating fresh markets in the northern region. Paras' total processing capacity of its three units, one at Haryana and two at Sahibabad in Uttar Pradesh, is 14 lakh LPD.

50

 

Objectives of Research

51

 

1)

Assessing the population of WT-5.

2)

Assessing the milk market of WT-5.

3)

Asses Assessin sing g Mot Mothe herr Dai Dairy’ ry’s s posit position ion in the te terri rrito tory ry vis-à-vis other brands.

4)

Assessing the reasons of low sales volume of Mother Dairy’s milk in WT-5.

5)

Sugg Suggest esting ing rem remed edial ial cou course rse of action action for Mothe Motherr Dairy India Ltd.

52

 

Findings of the Research

53

53

 

HOUSEHOLDS Analysis: MONTHLY INCOME Graph showingDairy Relationship between MONTHLY INCOME and use of Mother Milk.

100%

48

156

56

220

0 monthly household income above 25000

80% 60% 40% 20%

4 64 38

263 150

0% yes

no

monthly household income 15000 to 25000 monthly household income 10000 to 15000

0 rarely

monthly household income upto 10000

use MD milk

Findings: It shows that people falling in income group of 10000 to 15000 and an d 1500 15000 0 to 25 2500 000 0 are are ma maxi ximu mum m in nu numb mber er who who do not not consume MD milk and also major number of people fall under this category. So this group can be the target for action.

54

 

Analysis: QUALITY Graph showing QUALITY as an important parameter.

100%

0 6

0

11 40

80% 60%

200

4

738

40% 20% 0% yes

no

rarely

quality as a paramtr not at all imp quality as a paramtr somewhat imp quality as a paramtr param tr most imp

use MD milk Findings: It shows that Quality is the most important parameter that effe ffect cts s the buyi ying ng deci cisi sion on of co cons nsu umers. Out of 1000 households surveyed 738 were not consuming MD milk since they are not satisfied with the quality of MD milk. These were the findings in the area of Narayana and Patel nagar.

55

 

Analysis: TASTE Graph showing TASTE as an important parameter.

100% 80%

0

75 38

21 23

60% 40%

162

4

676

20% 0% yes

no

taste as a paramtr  not at all imp taste as a paramtr  somewhat imp taste as a paramtr  most imp

rarely

use MD M D milk

Findings: It shows that taste being the second most imp important parameter effects the buying decision of consumers. Out of  1000 households surveyed 676 people do not use MD milk since they do not find taste appropriate. The reason for not li liki king ng the tast aste was that they hey had had become ome ha hab bitu itual of  consuming either the other brands or the loose milk available from local dairies. These findings were common in all the areas i.e. it was the problem in almost every area surveyed.

56

 

Analysis: AVAILABILITY Graph Gra ph show showin ing g ease ease of  AVAILABILITY as an im impo port rtan antt parameter.

100%

11 20

32

0

167

80% 60% 40%

175

4

ease of availability not at all imp ease of availability

590

somewhat imp ease of availability most imp

20% 0% yes

no

0 rarely

use MD milk

 

Findings: It sh sho ows that that ea ease se of av avai aila labi bili lity ty is also lso an impo import rtan antt parameter that plays a role in effecting consumers buying decision. Out of 1000 sample size 590 do not consume MD milk who prefer ease of availability as the most important param pa ramet eter er.. Eith Either er they they were were ge gett tting ing th the e milk milk they they were were consuming on their doorsteps or it was available near to their house. These were the findings in the area of Anand Parvat, which was a hilly area and there was no MD booth there.

57

 

Analysis: PRICE Graph showing PRICE as an important parameter.   100% 80%

129

60% 40% 20% 0%

582 4

26 51 yes

75 132 no

0 rarely

price as a paramtr  not at all imp price as a paramtr  somewhat imp price as a paramtr  most imp

use MD milk

Findings: It shows that price one theisparameter that the buying buy ing deci de cisi sion on of being cons consum umers ers le leas astt effec effectiv tive eeffects in ma majo jorr areas. Out of 1000 sample size those who are not consuming MD milk i.e. 582, consider Price as not at all important. But there are areas where Price is still the most important para pa ram met eter er.. These hese area areas s ar are e th the e ar area eas s of Ka Karo roll Ba Bagh gh,, Regarpura. In these areas price is still the most important factor and hence its importance cannot be ignored in these areas.

58

 

Analysis: REASONS FOR DISCONTINUATION Thseconftoilnlouing ing MPDie mcihar ha thpele mta jotr w re rea ns orf  di dis uiwng lk rtbysho awssam hat ha aassoe arlie consuming MD milk.

1%

quality

2% taste

3% 7%

availability

14%

pric ice 52%

21%

sti till consum ing md never ttr rie ied others

 

Findings: The major of discontinuing the use of MD milk is Quality. Majo Ma jori rity ty of pe peop ople le di disc scon onti tinu nued ed MD milk milk due due to qual qualit ity y problems followed by taste, then availability and last price.

59

 

Analysis: The graphas simportant hows theparameters combined availability

effect

of

Price

and

Findings: There ere is an inv nve erse relationsh nship between PRICE ICE and AVAIL AV AILAB ABIL ILIT ITY Y pa param ramet eters ers.. Peop People le who who co cons nsid ider er price price as mostt import mos important ant parame parameter ter do not con consid sider er availa availabili bility ty as important at all and vice versa.

60

 

RETAILERS

Analysis: NUMBER OF RETAILERS The graph shows that Dairy stock Mother Dairy milk the and NUMBER those whoOF do RETAILERS not stock Mother milk.

Findings: Out of 100 samples of Retailers surveyed 56 were stocking MD milk and 44 were not stocking MD milk.

61

 

Analysis: SATISFACTORY LEVEL The graph shows the SATISFACTORY LEVEL of Retailers. 50 40

40

44

30 20

stock stoc kM MD D milk yes

16

stock MD milk no

10 0

0 yes

no

fully satisfied

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

62

 

Analysis: PROBLEMS The Pie shows the PROBLEMS faced by Retailers.

Problems Problem s faced by Retailers

8

2

12 40

3 4 5

20

6

supply

back date

low margin

no return

no Interacti ction with Co.

st sta aff misbe sbehavior 

promotion problem less demand

near by booth

Findings: Major problem being faced by Retailers was due to SUPPLY PROBLEM. The distribution channel is not at all satisfying.

63

 

INTITUTIONAL

Analysis: The graph shows the only important parameter i.e. TASTE for the institutional consumers.

100% 80%

12

4

23

11

60% 40%

type of milk used packed type of milk used loose

20% 0% most im imp

somewha what imp im p

taste as imp paramtr 

Findings: According to the institutional consumers, who consume milk as an Input for their produc production tion of sweets (like sweet shops, restaurants etc) consider TASTE as the only and the most important parameter that effects their buying decision. Out of total sample size of 50 only 16 consume packed milk rest 34 consume loose milk as they perceive it to be fresh and of  better taste.

64

 

MD RETAILERS

Analysis: The graph shows whom do MD Retailers consider their major competitors as they are facing competition from them.

Findings: According to the total sample of 30 MD Retailers maximum Retailers considered Local dairy owners as their competitors and then the second major was Amul. These Thes e ar are e th the e comp compet etit itor ors s acco accord rding ing to the the MD Reta Retaile ilers rs surveyed as they were having them as their neighbors and facing competition from them.

65

 

SWOT Analysis of  Mother Dairy

66

 

WEAKNESS

STRENGTHS •

•

The ma The major jor st stren rengt gth h of th the e Mother Dairy is the different variety of Milks and a recognized BRAND name. The inc increa reasin sing g dema demand nd for th these ese produ product cts s prese present nts s a gr grea eatt op oppo port rtun unit ity y for for the the Mother Diary to increase and scale up the production.

•

•

THREATS

OPPORTUNITIES •

•

•

•

There is a scope of business as ther there e is a de dema mand nd for for dairy products. Moth Mo ther er Da Dair iry y sh shou ould ld op open en more outlets to get the maximum advantage of the demand. Need to put more stress in the face-to-face direct ma mark rket etin ing g to reac reach h to the the customers. The increasing demand for these products presents a great opportunity for the Mother Diary to increase and scale up the production.

Scarce Mother Dairy Outlets. Less Le ss Ma Marg rgin in give given n to the the Outlet owners to match the existing competitors.

•

•

•

Increasing competition from the other brands. Strong supply chain management by the competitors. Strong Stro ng mar marketi keting ng str strateg ategy y by comp competit etitors ors by off offerin ering g th the e disco iscoun untt co coup upon ons s to consu con sumer mers s an and d prov providi iding ng healthy retailers.commissions to the

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Recommendations

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

Compan Com any y sho houl uld d try to cond condu uct cam camps and and aware areness ness prog pr ogra ram mme mes s in th thes ese e area areas s to ov over erco come me this this thin thinki king ng of  people.

Areas of Karol Bagh and Regar Pura People in these areas have PRICE as the most important factor which effects their decision to consume. Recommendation:

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

Areas of Anand Parvat and Baljit Nagar This area being a HILLY Area is the most challenging job for any company to serve. People want MD Milk here but there are no booths in this area. Recommendation:

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

MOTHER DAIRY should also launch certain schemes for Ho Hous useh ehol olds ds.. This It ha has s sc sche heme mes s the for for major Reta Retaile ilers rs but bu not not and fo forr households. section being user oft milk

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•

•

in order to enter into a new area such starting schemes can be very helpful. Demand and Visibility go hand in hand. If MD can do certain promotions as its competitor AMUL does, then it can ca n at attr trac actt sa sale les. s. Prom Promot otio ion n with with the the he help lp of bo boar ards ds,, hoardings etc. Lastly incase of Households the company should maintain a prop proper er co comm mmun unica icati tion on wi with th the the Loca Localit litie ies s or Area Areas s facing problem.

RETAILERS AND MD RETAILERS: •

•

•

•

•

The major problem faced by Retailers and MD Retailers is the SUPPLY problem i.e. problem with the distribution. The company should aim at improving its SUPPY CHAIN MANAGEMENT. The Th e co comp mpan any y shou should ld incr increa ease se ince incent ntiv ives es that that ca can n increase Retailers Nominal Income. This can be done thro th roug ugh h ce cert rtai ain n Sc Sche heme mes s th that at incr increa ease se the the over overal alll sales. The company should lay emphasis on proper PROMOTION of the brand at the Retail Outlet. The Th e co comp mpan any y shou should ld get get a pr prop oper er FEED FEEDBA BACK CK fr from om Reta Re taile ilers rs time time to time time.. In Inca case se they they are are faci facing ng any any problem it can be solved timely, without delays. Th The e re is. aTh p oble lem ointe f ted DdATis E one al als seo da beyin ing g fa fac ceus. d . bIf  y Reta Re taile ilers rs. The erob da date tem pr prin on day prev previo ious retailers get the same day’s milk in the evening (which is not so), the Retailers can sell some of the same day’ da y’s s mi milk lk in the the ev even enin ing g itse itself lf and and the the re rema main inin ing g would be happily acceptable by people in the Morning, next day.

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Annexure

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RETAILER  1. M/S _______________ _______________________ ________________ _______________ _______________ _______________ ____________  _____  2. Location\Addr Location\Address: ess:-- _______________ ______________________ _______________ ________________ _______________ ________  _  3. Avg. Daily Daily Sales: Sales: _______ ________lt _ltss 4. Which brand of of milk milk do you you sell? sell? (In (In order order of volume volume of sales) sales) i) __________________________  ii) __________________________  iii) __ ___ _____ ___ ____ ___ _____ ___ _____ ___ ____ ___  _  iv) __ ___ _____ ___ ____ ___ _____ ___ _____ ___ ____ ___  _  v) __________________________  vi) __ ___ _____ ___ ____ ___ _____ ___ _____ ___ ____ ___  _    5. Which Which type type of milk milk sells sells the the most? most? Toned ___ Double toned ___ Standard ___ Skimmed ___ Full Cream __  6. Do you you stoc stock k Mo Mothe therr Da Dair iry’s y’s milk? milk?   Yes ____

No ____ 

7. If yes, what’s what’s the the custome customers’ rs’ response response to it? it?  ______________________________________________________________  8. If no, no, please please spec specify ify the reas reason( on(s). s).  ______________________________________________________________  9. Any sugg suggest estion ionss would would you you like like to give? give?  ______________________________________________________________ 

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HOUSEHOLDS 

1) Name: _______________ _______________________ _______________ _______________ ________________ _______________ ________  _  2) Address/Ph Address/Phone one no: no: _________ ________________ _______________ ________________ _______________ ____________  _____  3) No. of family family member members: s: ____ ____

A: ___

C: ___ 

4) Avg househol household d consumpti consumption on of milk/day: milk/day: ______lts. ______lts. 5) Type Type of of milk milk you you con consu sume me •

 Loose

Cow ____  

•

Buffalo _____ 

 Packed 

Brand ______________________________  Type:   Toned ___ Double toned ___ Standard ___ Skimmed ___  Full Cream ___    •

 Both

Qty of packed Milk _____lts  

6) Rank the top top 3 most importa important nt parameters parameters which which affect affect your purchase. purchase. • • • • •

 

Qty of Loose Milk _____lts.

Price Taste Quality Ease of Availability Advertising/promotion

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7) Have you ever ever tried tried Mother Dairy Dairy’s ’s Milk? Milk? (To be asked asked only if if the brand brand  

mentioned in 5 is other than Mother Dairy) Yes ____

No ____ 

8) If yes, yes, why have have you you discont discontinu inued ed using using it? it? • • • • •

Price Taste Quality Availability Others _________________________________________________ 

  9)  ___________________________________________________________  If no, no, pleas pleasee specif specify y the the reason reason..  _  10) What suggestions would you like like to give to Mother Dairy? Dairy?  ___________________________________________________________   _  11) What is your your monthly household income:   • Up to Rs.10000 Rs.10000 to 15000 • • Rs.15000 to 25000 •

 

Above Rs.25000

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INSTITUTIONAL CONSUMERS 1. M/S: _______________ _______________________ _______________ _______________ ________________ _______________ ______________  _______  2. Address/Ph Address/Phone one no: _______________ ______________________ _______________ ________________ _______________ ___________  ____  3. Avg cons consump umpti tion on of milk milk/da /day: y: ____l ____lts ts 4. Type Type of of mil milk k you you con consu sume me •

 Loose

Cow ____

Buffalo _____ 

  •

 Packed 

Brand ______________________________  Type:   Toned ___ Double toned ___ Standard ___ Skimmed ___  Full Cream ___    •

 Both

Qty of packed Milk _____lts

Qty of Loose Milk _____lts.

5. Rank the top 3 most most importan importantt parameters parameters which which affect affect your your purchase. purchase. • • • • •

Price Taste Quality Ease of Availability Advertising/promotion

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6. Have you you ever tried tried Mother Mother Dairy’ Dairy’ss Milk? Milk? (To be asked only only if the brand brand mentioned in 5 is other than Mother Dairy)   Yes ____ No ____  7. If yes, yes, why why have have you you discont discontinu inued ed using using it? it? • • • • •

Price Taste Quality Availability Others _________________________________________________ 

  8. If no, please please specif specify y the the rreas eason. on.  ___________________________________________________________   _  9. What suggest suggestions ions would would you you like like to give give to Mother Dairy? Dairy?  ____________________________________________________________   

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MOTHER DAIRY RETAILER 1. Booth No:- _____

Vendor Name:- ___________________________  ________________________ ___ 

2. Location/Address:- __________________________________________________  3. Avg. Daily Sales: ____lts. a) Packed: _____ b) Vending Machine: _____  4. How would you rate your present sales? a) Satisfactory: ______ b) Average: ______

c) Unsatisfactory: ______ 

5. If the answer to the above is other than 4a then please choose the reasons from  below: a) Competition from other brands  b) Competition from local dairy owners c) Others ____________________________________________________________  6. Whom do you consider con sider your major competitor? ___________________________________________________________________  7. Which type of milk sells the most? Toned ___ Double toned ___ Standard ___ Skimmed ___ Full Cream __  8. Package of what size moves faster? 500 ml _____

1lt _____ 

9. Which situation you encounter at your booth more? Over stocking ________

Shortage ________ 

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10. What according to you has been general consumers’ experience? __________________________________________________________________   _  11. Any suggestions would you like to give to the company? __________________________________________________________________   _