Mother Dairy Summer Training Report

PROJECT REPORT ON “Market Analysis & Strategy proposition of Mother Dairy”

At MOTHER DAIRY PVT.LTD, DELHI

Submitted By: Roman Kattel

Under Guidance Of: Mrs.Sonal Goel (Asst. Prof.)

03221001911 BBA(CAM) 5th 2011-2014

IDEAL INSTITUE OF MANAGEMENT AND TECHNOLOGY

ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Mother Dairy Pvt. Ltd. Delhi. It has been an enriching experience for me to undergo my summer training at “MOTHER DAIRY”, which would not have possible without the goodwill and support of the people around. I would like to express my sincere thanks to all those who helped me during my training program.

I would liketo express my gratitude to all those who gave me the encouragement to complete this project. I would like to thank my college authorities, for providing me the opportunity to work with the one prestigious organization.

I would like to give my heartily gratitude to the Mr. Sandeep ghosh, General Manager (SALES), Mother Dairy Pvt. Ltd., Delhi for having given me the opportunity to do my project work in the organization and lighted my way of progress with his guidance.

My sincere and deepest thanks to Mrs. Sonal Goel and , Faculty Member of IIMT, for having spared his valuable time with me and for all the guidance given in executing the project as per requirements.

However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

(Signature of student) Roman kattel

DECLARATION

I hereby declare that the following project report titled “Market Analysis & Strategy proposition for Mother Dairy milk in Institutional Business in Delhi- NCR” at Mother Dairy Pvt. Ltd., Delhi is an authentic work done by me. It is to the best of my knowledge and belief. This is to declare that all my work indulged in the completion of this Project Report such as research, competitor analysis and sales promotion is a profound and honest work of mine.

Roman kattel 03221001911 BBA(CAM) 2011-2014 Ideal Institute Of Management And Technology

TABLE OF CONTENTS:

Sr. No.

Subject

Page No. 8

Chapter 1

INTRODUCTION 9

1.1 Chapter 2

MILK INDUSTRY AND COMPANY PROFILE RESEARCH METHODOLOGY

22

26 Chapter 3

DATA PROCESSING AND ANALYSIS 41

Chapter 4

FINDINGS AND CONCLUSION 42

Chapter 5

RECOMMENDATIONS 44 BIBLIOGRAPHY 45 ANNEXURE

EXECUTIVE SUMMARY In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitor’s existing in the market so that we can plan our each activity according to that. It is also necessary to retain the existing customers apart from attracting the new customers. The Project is concern with the market analysis & sales development of Mother dairy milk in Delhi and NCR region.

1.1 Title: “Market Analysis & Strategy proposition for Mother Dairy Milk in Institutional Business in Delhi-NCR region”.

1.2 Organization: “Mother Dairy India Pvt. Ltd, New Delhi”.

1.3 Objective: The Primary objective of study was to find size of mother dairy milk Institutional business of Mother dairy milk in specific areas of Delhi-NCR region. In the study my intention was go through the Institutional sales of milk network of Mother dairy milk to know distributors and Institutions view about supply chain of Mother dairy milk, to know the complaints of Mother dairy milk and to find the suggestions from Institutions for more penetration of Mother dairy milk in Delhi-NCR region.

The secondary objective was to find customer (Institution) response towards Mother dairy milk. My aim was to go through the customers to know the interest of purchasing & using Mother milk. Basically the study was for the demand of Mother milk among the customers. And also to know the complaints on Mother dairy milk.

1.4 Research Methodology: Research type was descriptive. The research was done through Institutions. I have collected the primary data through questionnaire which was filled by Institutional customers. Questions were both open and close ended. The secondary data was collected from website www.motherdairy.com. Sampling done is non-probability sampling. The type of sampling method was Judgment sampling.

1.5 Findings: In Delhi-NCR region there are many major players of liquid milk exist. Those are like Mother, Vita, DMS, Verka, Saras, Paras, Gopalji and many other local brands. As per the findings Mother Dairy is the Market leader and having more market share. Mother Dairy has estblished a great name in milk and milk products market segment in Delhi-NCR region. The sale is totally depends on the distributors and retailers.

1.6 Data Analysis: The data analysis has done area wise. It gives idea about the competitors of Mother dairy milk. It gives information regarding their market share.

1.7 Conclusion: It was concluded that Mother dairy milk i.e. Single Toned milk has a high potential in the market and it is the known to its customers and its acceptance is comparatively higher as of other variants and competitors present in the market, most of the consumer continuously using Mother Dairy milk brand and they do not want to switch over to other brand.

INTRODUCTION The dairy industries companies run mainly on the factors such as Price, availability, service frequency, affordability, taste and marketing. Price plays a vital role because purchasing power is depend upon price and availability of that product, in case distributors and retailers service matter a lot in Institutional business.

From chronic shortages of milk, India has emerged today as the largest producer of milk in the world crossing 97 million tonnes. It is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international

dairy processor in India. The Indian dairy industry is rapidly

growing, trying to keep pace with the galloping progress around the world.

The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. By the end of 2007, the urban population is expected to increase by more than 100 million to touch 864 million in 2007 a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying. Presently, the organized sector both cooperative and private and the traditional sector cater to this market.

INDIAN DAIRY INDUSTRY - A PROFILE India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come nto force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cent. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000mn .

Background of Dairy Industry Beginning in organized milk handling was made in India with the establishment of Military Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the country on a small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945. Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk.

Milk Production India's milk production increased from 21.2 million MT in 1968 to more than 100 million MT in 2008-09. India is the largest producer of Milk in the World (replacing USA) Per capita availability of milk presently is 250 grams per day, up from 112 grams per day in 1968-69. India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth in population; the net increase in availability is around 2 per cent per year.

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

Macro Impact The annual value of India's milk production amounts to about Rs. 900 billion.

Dairy cooperatives generate employment opportunities for some 12 million farm families. Dairy Farming is the single largest contributor to the economy(5% of GDP &13% of employment) Dairy industry represents a huge opportunity being the largest single FMCG Market.

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

OPERATION FLOOD Programme implementation: Operation Flood was implemented in three phases.

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

oil gifted by

the

European Union then EEC through the World Food

Programme NDDB planned the programme and negotiated the details of EEC assistance. During its first phase, Operation Flood linked 18 of India's premier milksheds with consumers in India's four major metropolitan cities: Delhi, Mumbai, Calcutta and Chennai.

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

to 136; 290 urban markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000 village cooperatives covering 4.25 million milk producers had become a reality. Domestic milk powder production increased from 22,000 tons in the pre-project year to 140,000 tons by 1989, all of the increase coming from dairies set up under Operation Flood. In this way EEC gifts and World Bank loan helped to promote self-reliance. Direct marketing of milk by producers' cooperatives increased by several million litres a day.

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

strengthen the infrastructure required to procure and market increasing volumes of milk. Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended, along with intensified member education.

Operation Flood's Phase III consolidated India's dairy cooperative movement, adding 30,000 new dairy cooperatives to the 42,000 existing societies organized during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of women members and Woman’s Dairy Cooperative Societies increasing significantly. From the outset, Operation Flood was conceived and implemented as much more than a dairy programme. Rather, dairying was seen as an instrument of development, generating employment and regular incomes for millions of rural people. "Operation Flood can be viewed as a twenty year experiment confirming the Rural Development Vision" (World Bank Report 1997c.)

HISTORICAL BACKGROUND OF NDDB The National Dairy and Development Board was founded in 1965, with the mission of organizing poor milk producers, thereby transforming dairying into an instrument for the economic development of India’s rural people. The formation of the NDDB stemmed from the vision of the then Prime Minister of India, the late Lal Bahadur Shastri, to extend the success of the Kaira Cooperative Milk Producer’s Union (in the state of Mother) to other parts of India. NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of "Operation Flood" in 1970, a programme extending over 30 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. During this period, dairy commodity surpluses were building up in Europe. Imports from Europe had already adversely affected the dairy industry in India. Imports by individual players in India would have resulted in a market glut and a fall in the prices throughout the country. With the backing of government policy, and with the assistance of the World Food Program, NDDB imported food aid in the form of milk powder and butter oil, and marketed it under its own brand name. The surplus from these sales was invested in the expansion of the cooperative movement in the dairy industry.Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements. Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. In addition, NDDB

also promotes other commodity-based co-operatives, allied industries and veterinary biologicals on an intensive and nation-wide basis. NDDB's subsidiaries include Mother Dairy, Delhi.

Major Players There are virtually 15 major Dairy Cooperative Federations in India, namely: 1) Andhra Pradesh

Dairy Development Cooperative Federation Ltd

(APDDCF) 2) Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED) 3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) 4) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) 5) Himachal Pradesh State Cooperative Milk Producers' Federation

Ltd (HPSCMPF) 6) Karnataka Cooperative Milk Producers' Federation Ltd (KMF) 7) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) 8) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) 9) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) 10) Orissa State Cooperative Milk Producers' Federation Ltd (OMFED) 11) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) 12) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED) 13) Rajasthan Cooperative Dairy Federation Ltd (RCDF) 14) Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF) 15) West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)

National Dairy Development Board (NDDB) is the central cooperative board of the country and was created to promote, finance and support producer-owned and controlled organizations mentioned above.

Two main players – Mother of GCMMF and Mother Dairy of NDDB – is the leading brand in India. Our main focus is to analyze the strategic move of NDDB for mother Dairy from top to bottom. Thus we are going to concentrate on the progress of Mother Diary and NDDB for their future strategies.

OVERVIEW OF THE MOTHER DAIRY

Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme, a wholly owned subsidy of the National Dairy Development Board (NDDB), whose current chairman is Dr. Amrita Patel. Currently, it is one of the largest milk (liquid/unprocessed) plants in Asia selling more than 27 lakh litres of milk per day, out of 50 lts of milk consumed daily in Delhi, thereby enjoying a market share of 66% of the branded milk sales in Delhi. Other important markets include Mumbai, Saurashtra and Hyderabad. Mother dairy ice-cream was launched in the year 1995 and has shown continuous growth over the years, and today it boasts approximately 62% market share in Delhi and NCR.

It is Mother Dairy’s constant endeavour to: (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices. To ensure this Mother Dairy operates such that the farmer gets 85% of the total cost of sales. (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable.

Mother Dairy is an IS/ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)Department of Science and Technology, Government of India

Objectives and Business Philosophy of Mother Dairy The main stakeholder of Mother Dairy was the farmer member for whose welfare it existed. Unlike other organizations, their objective is not to maximize the profit. They are more interested in giving the best price for the farmers for their milk than in making a large profit. Thus they look at the price given to their suppliers as not a cost but as an objective. Mother Dairy had, as its main objective, “carrying out activities for the economic development of agriculturists by efficiently organizing marketing of milk and dairy produce, agricultural produce in raw and/or processed form and other allied produce”. This was to be done through: Common branding Centralized marketing Centralized quality control Centralized purchases and Pooling of milk efficiently Mother Dairy had declared, as its business philosophy, the following: ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and;

uphold institutional structures that empower milk producers and farmers through processes that are equitable. The biggest strength of Mother Dairy was the trust it had created in the minds of its consumers regarding the quality of its products. NDDB, and its brand Mother Dairy, stood for guaranteed purity of whatever products it had produced. Adulteration was simply not done in any of its products. In India, where such trust was hard to come by, this could provide a central anchor for Mother Dairy’s future business plans. For more than 40 years' Mother Dairy helping to create a national network has been adapted and extended to other commodities and areas. Their constant effort to learn and to enrich experience is central to their approach and capacities. In times to come, Mother Dairy shall strive to become a leading player in the food industry in India.

Product Profile S.No.

Product Name

Brand Name

Items

1.

Milk and its Products

Mother Dairy

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

2.

Edible Oils

Dhara

Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.

3.

Fresh and frozen fruit and Safal vegetable products

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

Mother Dairy’s has a varied range of products. The different products categories are explained below: MILK: Packaged Milk is available in 5 different variants: 1. Full Cream milk - milk fat 6%, SNF 9% 2. Standardised milk - milk fat 4.5%, SNF 8.5% 3. Toned milk - milk fat 3%, SNF 8.5% 4. Double toned milk - milk fat 1.5%, SNF 9% 5. Skimmed milk - milk fat 0.5%, SNF 8.7% Other than packaged milk, Bulk Vended Token Milk is also available which is distributed through vending machines installed in different regions of the city. The high quality variant of milk is also available under the brand name of ‘MILK’. It is thick & completely natural, containing no preservations. It is referred with name of UHT (Ultra Heat Treatment) Milk. Mother Dairy also manufactures flavoured milk under the brand name of ‘CHILLZ’. It is available in three flavours namely Kesar Elaichi, Vanilla and Chocolate flavour. Milk Products: Various milk products of Mother Dairy are: 1. Mother Dairy Ghee 2. Mother Dairy Butter 3. Mother Dairy Cheese 4. Mother Dairy Dahi (Curd) 5. Mother Dairy Lassi

Except all these milk products Mother dairy also manufactures Ice Cream under two categories namely CHILLZ and Mother Dairy Ice Cream. PROBIOTIC: It is the latest product range launched by Mother Dairy. It mainly contains BB-12 friendly Bacteria which results in better digestion and absorption of nutrients. It also contains probiotic fibre which also results in better digestion. The various products in this category are: 1. b-Activ Probiotic Dahi 2. b-Activ Probiotic Lassi 3. b-Activ Curd 4. Nutrifit (Strawberry & Mango)

SAFAL: Range of fresh foods & vegetables, frozen vegetables, fruit pulps and fruit juices etc.

DHARA: It has a popular range of edible oils in different types as refined soya bean oil, refined sunflower oil and filtered ground nut oil etc.

Distribution Channel of Milk in Delhi- NCR

Patparga nj

BVM Tankers MS

Meeru t

C S MMS

Jind Rohta k

FS

O

RS

N

IC Alwar

PPM Vehicles

M E

Distributo rs

Retailer

Noida DMS

R S

Cash Route

Retailer

Moder n NDR I

*MS- Milk Shop

S U

B. Garh

C

Kiosks

MMS-Mini Milk Shop

CS-Combined Shop

FS- Franchisee Shop

RS-Retail Shop

IC-Insulated Container

OBJECTIVE & SCOPE OF THE STUDY Objectives of Project: The main objective of the Study can be listed as follows:A. Primary Objective 1. To find market size of Mother dairy milk in Institutional business in DelhiNCR

region.

1. To find the problems faced by Institutions in milk purchase from mother dairy and other competitors. 2. To collect the information about the competitors. B. Secondary Objective 1. To propose strategies for sales promotional activities to improve Institutional milk selling. 2. To generate and secure consumer awareness among Institutions . Scope of Project: The study carried out in Delhi-NCR so its scope is mainly limited to Delhi and Gurgaon-NCR. 1. It gives information about the size of the retail network. 2. It gives information about the services given by distributor to their retailer. 3. It gives information about the competitors’ products. 4. It will serve consumer in better manner. 5. It provides suggestions to the company to improve their products sales. 6. It gives information about the sales promotion activities to improve the milk Sale.

RESEARCH METHODOLOGY 5.1 Research Methodology: The research was conducted from 15

th

th

May to 15

July 2010. The research

include meetings with the Institutions. It included preparation of the questionnaire to be answered by above people for knowing the competitive position of Mother dairy in the Institutional milk market. The views of the above parties were recorded in the research as per the questionnaire set by us. 5.1.1 Research Approach: The objective was to know the competitive position of Mother dairy

in the

Institutional milk business market thus in order to successfully conduct the research the unbiased opinion of the above parties was desirable. Thus we conducted the research as the representative of Mother dairy company and sometimes the representatives of the other company like Amul or Paras in order to have an unbiased opinion of the concerned persons and it worked to achieve our goal. 5.1.2 Research Instrument: The research instrument was the structured questionnaire formulated for the respondents. There were also the area maps. 5.1.3 Types of Question: The second important aspect in the designing a question is to decide which types of question are to be used. Question can be classified in various ways. Questionnaire contains following type information1. Open-ended question 2. Dichotomous question 3. Multiple-choice Question

Both the questionnaire consists of all three types of question. Mostly all questions are multiple type questions. Dichotomous question are few in number. There is only one open-ended type question. 5.1.4 Phrasing of Question: In questionnaire, I try to phrase the question in logical way. For example I arrange question in sequence as personal information, awareness data, usage data, and finally related to reason and satisfaction. 5.1.5 Sampling Plan: Sample Size: The sample size was as of 210 Institutions which includes Hospitals, Hotels and restaurants, Schools and colleges, NGOs, Offices and Companies etc. Sampling Technique: A stratified sampling technique was used. A different Stratum for different type of respondent within every stratum the respondents was selected as per convenience basis. 5.1.6 Method of Survey: Personal Interview: It is direct form of investigation, involving face-to-face communication with free feedback information. It offers a sense of participation. It is more flexible form of data collection. Use of unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible. Complex questions can be asked. The interview can have questions to secure more information. Observation approach can be combined to verify age, income, status, standard information. Visual aids in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of responding Institution.

5.2.1 Product for Which Survey Was Conducted:Composition: Variety

Fat (%)

SNF(%)*

Price(Rs.)

Full cream milk

6.0

9.0

39.00

Single Toned milk

3.0

8.5

24.00

Double toned milk

1.5

8.5

20.00

Lite milk

0.5

8.7

18.00

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and 9 parts of minerals. Special Features: Mother dairy Milk is the most hygienic liquid milk available in the market. It is pasteurized in state of-the-art processing plants and pouch-packed to make it conveniently available to consumers. Product Specification: Mother milk meets the PFA standards for the respective type of milk. 5.3.1 Area of Operation: The areas of operation were the research was done are as follows: West Delhi(3 subdivisons – Patel nagar, Rajouri garden and Punjabi Bagh) Gurgaon NCR(Haryana)

How the survey conducted To approach the Institutions with the following requirements in mind At Approach: • What type of Institution it is? (Hotels, restaurant, general stores, Schools and Colleges, Company offices, Caterers etc). • Does it use Mother milk ? • If not, which other milk institution is using ? • From where it purchases milk(distributor/retail) ? These sectors were chosen because the company believed that these segments could be the best potential buyers for this product.

DATA PROCESSING AND ANALYSIS

Sales of different variant of Mother Dairy Milk(WEST DELHI): Graph shows the sales of milk with respect to the study conducted:

1. Full Cream Milk: FULL CREAM MILK SALES IN %ge

s

milk

%ge salesof other brand

2

,

a

%ge sales of mother dairy milk, 44.869921 08

55.130078922

l e s

1 51

52

53

54

55

56

57

58

SALES(IN %ge)

2. Toned Milk: TONEDMI LKSALES

%ge of milk sales of other brand, 41.72610 556

2

%ge of sales motherdairy, 58. 27389444

1

0

10

20

30

40

50

60

3. Double Toned milk:

DOUBLE TONED MILK %ge sales of other brand, 100

2

%ge sales of motherdai ry milk, 0

1 0

Series1

20 40

60

80

SALES(IN %ge)

4. Lite milk:

LITE MILK 2 SALES(IN %ge)

SALE S

1

0

%ge sales of other brand, 0

%ge sales of motherdai ry milk, 100 20

40

60

80

100

Market size of Mother dairy:

Market Size West Delhi Zone VOLUME OF MILK OF INSTITUTE & RESTAURANT WHO ARE USING MOTHERDAIRY(in ltrs) TOTAL VOLUME OF MILKOF INSTITUTE & RESTAURANT TAKEN(in ltrs)

3965

6986

USING BOTH MD & OTHERS BRAND(in ltrs)

50 MARKET SIZE OF MD (IN %age)

56.75636

USING BOTH MD & OTHERS BRAND(IN %age)

0.71571

REMAINING(IN %age)

42.72727

FIG: MD MARKET SIZE

REMAINING, 42. 7272727 3

BOTH MD & OTHERS BRAND 0.71571

MD M ARKET SIZE, 56.756369 88

Interpretation: The above graph indicates that Mother Dairy is the market leader in the Delhi City, according to the study conducted mother dairy has a market size of 56.75 percent. We have excluded 2500 litres of MD milk sold in Janakpuri market as Institutional sales. This shows that Mother Dairy is most preferable brand in West Delhi.

Market size in different Institutions: 3000 2500 2000 150 0

MD other brands

100 0 500 0 Hospitals Hotels& Ofices&e restaurants du. Institutes

Cofe e outlet s

Others

Market Potential: MARKET POTENTIAL INTERESTED IN SWITCHING TO MOTHER DAIRY: Institutions (IN %ge)

INST. INTERESTED IN SWITCHING TO MD ARE: INST. WHO ARE ALREADY USING MOTHERDAIRY: INST. WHO DON'T WANT TO SWITCH TO MD ARE: DATA NOT AVAILABLE: TOTAL NUMBER OF INSTITUTE TAKEN:

No. of

32

32

37

37

28

28

3 100

3 100

Finding: The study shows that Mother Dairy is a leading marketer of Dairy products in the Delhi and NCR regions. So in Delhi city most of institutes are currently using MD Milk, but still there are few institutes who are interested in switching to MD brand, as per the survey conducted 32% of institute are interesting in switching to MD.

MARKET POTENTIAL DATA NOT AVAILABLLE ,3 NOT INTRESTED, 28

INTRESTED TO SWITCH, 32

USING MD, 37

Interpretations: There are large numbers of institutes that are currently using MD approx 37%, & out

of

total 32 % of institutes are interested in switching to MD. Also 28 % institutes are not interested to change their brand because they think that quality of milk is not good, and services provided by MD are not proficient. In the sample taken there are some institute which are not using milk, and for some of the institutes data are not available.

Sales of different variant of Mother Dairy Milk(GURGAON-NCR): Graph shows the sales of milk with respect to the study conducted:

1. Full Cream Milk: FULL CREAM MILK SALES IN %ge

s a l

%ge salesof other brand milk , 55.13007892 2

2 %ge sales

of

e

mother

dairy s 1 44.869921

milk, 08

0

10

20

30

40

50

60

70

80

SALES(IN %ge)

2.

Sinle Toned mil k : TONEDMI LKSALES

%ge of milk sales of other brand, 41.72610 556

2

%ge of sales motherdairy, 58. 27389444

1

0 200

400

600

800

3.

Double Toned milk:

DOUBLE TONED MILK %ge sales of other brand, 100

2

%ge sales of motherdai ry milk, 0

1 0

20

40

60

Series1

80 100

SALES(IN %ge)

4.

Lite milk:

LITE MILK 2 SALES(IN %ge)

SALE S

%ge sales of motherdai ry milk, 100

1

0

%ge sales of other brand, 0

20

40

60

80

Market size of Mother dairy:

Market Size Gurgaon-NCR Zone VOLUME OF MILK OF INSTITUTE & RESTAURANT WHO ARE USING MOTHERDAIRY(in ltrs) TOTAL VOLUME OF MILKOF INSTITUTE & RESTAURANT TAKEN(in ltrs)

2285 8569

USING BOTH MD & OTHERS BRAND(in ltrs)

50

MARKET SIZE OF MD (IN %age)

26.665 8

USING BOTH MD & OTHERS BRAND(IN %age)

0.5864

REMAINING(IN %age)

73.7713

FIG: MD MARKET SIZE

MD MARKET SIZE, 26.66588867

BOTH MD & OTHERS BRAND , 6.36

REMAINING, 42.727 2727 3

Interpretation: The above graph indicates that Mother Dairy is not the market leader in the Gurgaon City, according to the study conducted mother dairy has market size of 26.66 percent. This shows that Mother Dairy is not

preferable brand in Institutional business in

Gurgaon-ncr region.

Market size in Different Institutions: 3000 2500 2000 1500 100 0

MD Other brands

50 0 0

Market Potential: MARKET POTENTIAL INTERESTED IN SWITCHING TO MOTHER DAIRY: INST. INTERESTED IN SWITCHING TO MD ARE: INST. WHO ARE ALREADY USING MOTHERDAIRY: INST. WHO DON'T WANT TO SWITCH TO MD ARE: DATA NOT AVAILABLE: TOTAL NUMBER OF INSTITUTE TAKEN:

No. of Institutions

(IN %ge)

33

30

41

37

31

28

5

4.5

110

100

Finding: The study shows that Mother Dairy is a leading marketer of Dairy products in the GurgaonNCR regions. So in Gurgaon city almost every institute are currently using MD Milk, but still there is few institutes who are interested in switching to MD brand, as per the survey conducted 30% of institute are interesting in switching to MD. While there is a large scope for Mother Dairy in the Gurgaon (NCR) region as there are many hotels that are currently using Milk of other brand, and also they don’t have any problem in switching to MD.

MARKET POTENTIAL

DATA NOT AVAILABLLE, 4. 545 4

NOT INTRESTE D, 28. 181

INTRESTED TO SWITCH, 30

USING MD, 37.272

Interpretations: There are large numbers of institutes that are currently using MD approx 37.27%, & out of total 30% of institutes are interested in switching to MD. Also 28.18% institutes are not interested to change their brand because they think that quality of milk is not good, and services provided by MD are not proficient. In the sample taken there are some institute which are not using milk, and for some of the institutes data are not available.

Competition mapping in West Delhi and Gurgaon: I.

Source from where Institutions get their milk-

Of the total 210 institutions Surveyed, 78 of them were using mother dairy milk. Of 78 institutions, 42 of them were getting their milk from distributors while remaining 36 were getting from retail shops.

No. of institutions

Distributors Retailers

Interpretation: It was found that the ins titutions which are purchasing milk in large quantity take mostly from distributors while small institutions take mostly from retailers.

II.

Analysis on basis of Taste factor:

Graph showing Taste as an important parameter-

140 120 100

Taste not imp.

80 60

Taste as somewhat imp parameter

40

Taste as most imp. Parameter

20 0 Using MD Not using milk MD milk

Rarely using MD milk

Interpretation: It shows that taste being the second most important parameter effects the buying decision of consumers. Out of 210 institutes surveyed, 125 institute does not use MD milk since 67 of them do not find taste appropriate. The reason for not liking the taste was that they had become habitual of consuming either the other brands or the loose milk available from local dairies. III. Analysis On the basis of QUALITY factor: Graph showing QUALITY as an important parameter-

100%

3

11

80%

25

33

1 2

60% 40%

50

81

4

20%

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

0% yes

no

rarely

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

IV.Analysis on the basis of AVAILABILITY parameter: Graph showing ease of AVAILABILITY as an important parameter-

140 120 100 not imp

80

ease of avail.

60

Somewhhat imp. ease od availability imp

40 20 0 yes

no

rarely

Findings: It shows that ease of availability is also an important parameter that plays a role in effecting consumers buying decisio

Out of 210 sample size 132 do not consume MD milk that

prefers ease of availability as the most important parameter. Either they were getting the milk they were consuming on their doorsteps or it was available near to their house.

n.

V. Price of milk: 140 120 100 80

Price not important Price

60

somewhat imp

40

Price important

20 0 yes

No

Rarely

Interpretation: About 50% of the Institutions who are not using Mother Dairy Milk rated price as the most important parameter as compared to around 75% Institutions who are using Mother Dairy. Because of the margins provided to Institutions by the Milk companies play an important role in deciding the purchase of milk by institutions(except coffee outlets), Price is most important factor.

OBSERVATIONS AND FINDINGS In Institutional

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

Hospitals etc) • The awareness level of Mother dairy milk in bulk users is around 90% but only 30% are using Mother dairy milk. • The preference of purchasing milk by the bulk users is mainly quality and timely availability. The reasons for not using milk by the bulk users are :1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive. Other milk dairies are providing higher margin. 2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk. 3. In case of canteens contract some of them prefer credit purchasing which is against company’s norms and policies.

CONCLUSION:

5.1 Concluding observations The final outcome of the project is that the parameters which hinder the sale of Mother Dairy are Price, Quality, Service and Taste. Milk market is a totally unpredictable market and the organisation should be over-cautious of any complaints that come into milk as it includes the sentiments of a mother for her kid and she would not prefer to give anything to her kid for which she is not 100% satisfied. So the company should take every step possible to contain these problems which in some way or the other affects the sale of Mother Dairy and its retailers.

5.2 Limitations of the study Since the study is done in only one region of West Delhi and Gurgaon-NCR, these results cannot be generalised on all Delhi basis. Shopkeepers also tend to hide some facts and figures due to some reasons which can hinder the results we get from this survey. Still a lot can be done to make the whole system efficient.

5.3 Further scope of study The findings we got from this project will be of great help for the company as these findings will help the organisation for improving their system as well as milk.

SUGGESTION AND RECOMMENDATIONS : Mother Dairy can cut costs for some period of time followed immediately by strong advertising. As we have seen during the research that most of institutions give most preference to the margin provided to them on milk(except coffee outlets). As the quality and taste and availability of mother dairy milk are best in market and local milk companies good margin to them, Price remains the main criteria of institutional milk sales. Can start schemes like cash prizes or foreign trips on scratching the barcode on the packet Locate the institutions using competitor’s milk and provide them attractive offers to increase the market share so that at least the big competitors will not try to expand. MD should introduce a mascot for the milk (as it

has been for Amul

Butter). This will help in easy Brand differentiation and Recognition. Efficiency in distribution Remove communication barriers and misconceptions between the Institutions and distributors by effective communication with institutions time to time.

BIBLIOGRAPHY & WEBLIOGRAPHY www.motherdairy.com www.nddb.org www.indiandairy.com www.wikipedia.com www.indianmilkproducts.com

ANNEXURE:

For collecting the data a structured questionnaire for the Institutions is prepared to get detailed and structured information regarding the project. Given below is the questionnaire: Questionnaire for Institutions Ques-1: How much milk do you consume every day? Ques-2: From which source (company/local source) you purchase milk? If MD then leave. Ques-3: What type of variant is used (FCM/TM/DTM/LITE)? Ques-4: What type of mix? Ques-5: At what price each variant is bought from whatever source? Ques-6: What type of delivery method (transporter/distributer/self) is used? Ques-7: What is the credit period provided? Ques-8: Payment by cheque /cash? Ques-9: Are you satisfied by your milk source (quality of milk/facilities)? Ques-10: How do you perceive MD as a brand? Ques-11: Reasons for not using Mother Dairy (Any previous bad experience/credit/transport/price /quality (taste, water content, preservatives, colour, etc))? Ques-12: What changes do you expect from MD so that you can switch to MD (In terms of credit facility/delivery time/price margin etc)? Ques-13: Anything in general to be improved in MD?