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Company Guide:
Ms. Amrita Das
Institutional Sales Head
Mother Dairy Pvt. Ltd, Delhi
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.
I would like to give my special thanks to my parents, their love, support and
blessing enabled me to complete this Project work.
However, I accept the sole responsibility for any possible error of omission and
would be extremely grateful to the readers of this project report if they bring
such mistakes to my notice.
I hereby declare that the following project report titled “Market Analysis &
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
Date: Signature
(Mr.ABHIMANYU YADAV)
42
8. CONCLUSION
43
9. SUGGESTION AND RECOMMENDATION
44
10. BIBLIOGRAPHY AND WEBLIOGRAPHY
45
11. ANNEXURE
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.
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.
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.
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 .
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.
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
Innovation
Macro Impact
• The annual value of India's milk production amounts to about Rs. 900
billion.
• Ensuring Quality
• Procurement and efficiencies in supply chain
• Product differentiation and value addition.
OPERATION FLOOD
Programme implementation:
Phase Phase I (1970-1980) was financed by the sale of skimmed milk powder
I and butter oil gifted by the European Union then EEC through the
World Food Programme. NDDB planned the programme and
negotiated the details of EEC assistance.
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.)
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
Major Players
(HPSCMPF)
6) Karnataka Cooperative Milk Producers' Federation Ltd (KMF)
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.
(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.
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
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
3. Fresh and frozen fruit and Safal Fruits, Vegetables, Rice, Processed
vegetable products items (jams, juices, ketchup, pulp, etc.)
MILK:
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:
PROBIOTIC:
1. b-Activ
Activ Probiotic Dahi
2. b-Activ
Activ Probiotic Lassi
3. b-Activ Curd
4. Nutrifit (Strawberry & Mango)
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.
BVM Tankers
Patparganj
MS
Meerut CS
MMS C
Jind O
FS
Rohtak RS N
S
IC
Alwar
U
E
Noida
Distributors R
Retailer
DMS
S
Cash Route
Modern Retailer
NDRI
Kiosks
Objectives of Project:
The main objective of the Study can be listed as follows:-
A. Primary Objective
1. To find market size of Mother dairy milk in Institutional business in Delhi-
NCR region.
1. To find the problems faced by Institutions in milk purchase from mother
dairy and other competitors.
2. To collect the information about the competitors.
B. Secondary Objective
1. To propose strategies for sales promotional activities to improve Institutional
milk selling.
2. To generate and secure consumer awareness among Institutions .
Scope of Project:
The study carried out in Delhi-NCR so its scope is mainly limited to Delhi and
Gurgaon-NCR.
1. It gives information about the size of the retail network.
2. It gives information about the services given by distributor to their retailer.
3. It gives information about the competitors’ products.
4. It will serve consumer in better manner.
5. It provides suggestions to the company to improve their products sales.
6. It gives information about the sales promotion activities to improve the milk
Sale.
Composition:
Variety Fat (%) SNF(%)* Price(Rs.)
Full cream milk 6.0 9.0 32.00
Single Toned milk 3.0 8.5 24.00
Double toned milk 1.5 9.0 20.00
Lite milk 0.5 8.7 18.00
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34
parts of protein and 9 parts of minerals.
Special Features:
Mother dairy Milk is the most hygienic liquid milk available in the market. It is
pasteurized in state of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
Product Specification:
Mother milk meets the PFA standards for the respective type of milk.
These sectors were chosen because the company believed that these segments
could be the best potential buyers for this product.
Graph shows the sales of milk with respect to the study conducted:
%ge salesof
s 2 other brand milk
, 55.130078922
a
l %ge sales of
e mother dairy
s 1 milk, 44.869921
08
51 52 53 54 55 56 57 58
SALES(IN %ge)
2. Toned Milk:
TONED MILK SALES
%ge of milk
sales of other
brand, 41.72610
2
556
%ge of sales
motherdairy, 58.
1 27389444
0 10 20 30 40 50 60
%ge sales of
2
other
brand, 100
%ge sales of
1 motherdairy
milk, 0 Series1
0
20
40
60
80
SALES(IN %ge)
4. Lite milk:
LITE MILK
2 %ge sales of
SALES(IN %ge) other brand, 0
SALES
%ge sales of
1 motherdairy
milk, 100
0
20
40
60
80
100
Market Size
West Delhi Zone
VOLUME OF MILK OF INSTITUTE &
RESTAURANT WHO ARE USING
MOTHERDAIRY(in ltrs) 3965
50
MARKET SIZE OF MD (IN %age)
% 56.75636
REMAINING, 42.
72727273
MD MARKET
SIZE, 56.756369
88
BOTH MD &
OTHERS BRAND
0.71571
• 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.
2500
2000
1500
MD
1000 other brands
500
0
Hospitals Hotels& Offices&edu. Coffee Others
restaurants Institutes outlets
Market Potential:
MARKET POTENTIAL
INST. INTERESTED IN
SWITCHING TO MD ARE: 32 32
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
sing MD Milk, but still there
are few institutes who are interested in switching to MD brand, as
as per the survey conducted
32% of institute are interesting in switching to MD.
MARKET POTENTIAL
DATA NOT
AVAILABLLE, 3
NOT INTRESTED TO
INTRESTED, 28 SWITCH, 32
USING MD, 37
Interpretations:
• There are large numbers of institutes that are
are currently using MD approx 37%,
3 & 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
Graph shows the sales of milk with respect to the study conducted:
%ge salesof
s 2 other brand milk
, 55.130078922
a
l %ge sales of
e mother dairy
s 1 milk, 44.869921
08
0 10 20 30 40 50 60 70 80
SALES(IN %ge)
%ge of milk
sales of other
brand, 41.72610
2
556
%ge of sales
motherdairy, 58.
1 27389444
%ge sales of
2 other
brand, 100
%ge sales of
1 motherdairy
milk, 0 Series1
0 20 40 60
80
100
SALES(IN %ge)
4. Lite milk:
LITE MILK
2 %ge sales of
SALES(IN %ge) other brand, 0
SALES
%ge sales of
1 motherdairy
milk, 100
0
20
40
60
80
Market Size
Gurgaon-NCR Zone
VOLUME OF MILK OF INSTITUTE & RESTAURANT
WHO ARE USING MOTHERDAIRY(in ltrs)
2285
TOTAL VOLUME OF MILKOF INSTITUTE &
RESTAURANT TAKEN(in ltrs)
8569
50
MARKET SIZE OF MD (IN %age) 26.6658
MD MARKET
SIZE, 26.66588867
BOTH MD &
OTHERS BRAND
, 6.36
REMAINING, 42.727
27273
• 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.
2500
2000
1500
1000 MD
Other brands
500
Market Potential:
MARKET POTENTIAL
INST. INTERESTED IN
SWITCHING TO MD ARE: 33 30
The study shows that Mother Dairy is a leading marketer of Dairy products in the Gurgaon-
NCR regions. So in Gurgaon city almost every institute are currently using MD Milk, but still
there is few institutes who are interested in switching to MD brand, 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.
5454
NOT INTRESTED TO
INTRESTED, 28. SWITCH, 30
181
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
No. of institutions
Distributors
Retailers
Interpretation:
It was found that the institutions which are purchasing milk in large quantity take mostly
from distributors while small institutions take mostly from retailers.
140
120
100
Taste not imp.
80
60 Taste as somewhat imp
40 parameter
100% 3 11 1
80% 25 33
2
quality as a paramtr
60% not at all imp
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.
milk
140
120
100
80 not imp
ease of avail. Somewhhat imp.
60
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
ers buying decision. 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.
140
120
100
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.
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.
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.
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.
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.
• Mother Dairy can cut costs for some period of time followed immediately
by strong advertising. As we have seen during the research that most of
institutions give most preference to the margin provided to them on
milk(except coffee outlets). As the quality and taste and availability of
mother dairy milk are best in market and local milk companies good
margin to them, Price remains the main criteria of institutional milk sales.
• Can start schemes like cash prizes or foreign trips on scratching the
barcode on the packet
• Locate the institutions using competitor’s milk and provide them
attractive offers to increase the market share so that at least the big
competitors will not try to expand.
• Mergers and Acquisition in the milk industry with local players help the
company in increasing its distribution network and Market share.
Following this MD can buy the milk from local dairies taking over their
business which is substantial in terms of market share
• MD should introduce a mascot for the milk (as it has been for Amul
Butter). This will help in easy Brand differentiation and Recognition.
• Efficiency in distribution
• Remove communication barriers and misconceptions between the
Institutions and distributors by effective communication with institutions
time to time.
www.nddb.org
www.indiandairy.com
www.wikipedia.com
www.indianmilkproducts.com
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:
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)?