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PROJECT REPORT ON

“Market Analysis & Strategy proposition for Mother Dairy


Milk in Institutional
tional Business in Delhi-NCR”
Delhi NCR”

At

MOTHER DAIRY PVT.LTD, DELHI


BY:
ABHIMANYU YADAV
Master of Business Administration(MBA)
OF

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

A report submitted in partial fulfilment of the requirements of


MBA (2009-11)

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

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


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

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


encouragement to complete this project. I would like to thank my college
authorities and HOD Dr. V K Nangia, for providing me the opportunity to work
with the one prestigious organization.

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

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


Department of Management Studies, IIT Roorkee for having spared his valuable
time with me and for all the guidance given in executing the project as per
requirements.

I would like to give my special thanks to my parents, their love, support and
blessing enabled me to complete this Project work.
However, I accept the sole responsibility for any possible error of omission and
would be extremely grateful to the readers of this project report if they bring
such mistakes to my notice.

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


DECLARATION

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

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

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

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

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

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

Date: Signature
(Mr.ABHIMANYU YADAV)

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


TABLE OF CONTENTS:

Sr. No. Subject Page No.


5
1. EXECUTIVE SUMMARY
8
2. INTRODUCTION
9
3. MILK INDUSTRY AND COMPANY PROFILE
21
4. OBJECTIVE AND SCOPE OF STUDY
22
5. RESEARCH METHODOLOGY
26
6. DATA PROCESSING AND ANALYSIS
41
7. OBSERVATION AND FINDINGS

42
8. CONCLUSION

43
9. SUGGESTION AND RECOMMENDATION

44
10. BIBLIOGRAPHY AND WEBLIOGRAPHY

45
11. ANNEXURE

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


EXECUTIVE SUMMARY

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


have good knowledge of the potential of a particular market. The information
regarding the activities of competitor’s existing in the market so that we can
plan our each activity according to that. It is also necessary to retain the existing
customers apart from attracting the new customers.
The Project is concern with the market analysis & sales development of Mother
dairy milk in
Delhi and NCR region. The project included as part of MBA Programme and
the project is done from 15th May to 15th July.

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

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

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

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


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.

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


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.

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


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.

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


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.

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


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.

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


• 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
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.

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


milk sheds with consumers in India's four major metropolitan
cities: Delhi, Mumbai, Calcutta and Chennai.

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


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.)

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


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

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


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

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


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;

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


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

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


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

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


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
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
Activ Probiotic Dahi
2. b-Activ
Activ Probiotic Lassi
3. b-Activ Curd
4. Nutrifit (Strawberry & Mango)

SAFAL: Range of fresh foods & vegetables, frozen vegetables,


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.

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


Distribution Channel of Milk in Delhi- NCR

BVM Tankers
Patparganj
MS

Meerut CS

MMS C

Jind O
FS

Rohtak RS N

S
IC
Alwar
U

B. Garh PPM Vehicles M

E
Noida
Distributors R
Retailer
DMS
S
Cash Route
Modern Retailer

NDRI
Kiosks

*MS- Milk Shop MMS-Mini Milk Shop

CS-Combined Shop FS- Franchisee Shop

RS-Retail Shop IC-Insulated Container

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


OBJECTIVE & SCOPE OF THE STUDY

Objectives of Project:
The main objective of the Study can be listed as follows:-
A. Primary Objective
1. To find market size of Mother dairy milk in Institutional business in Delhi-
NCR region.
1. To find the problems faced by Institutions in milk purchase from mother
dairy and other competitors.
2. To collect the information about the competitors.
B. Secondary Objective
1. To propose strategies for sales promotional activities to improve Institutional
milk selling.
2. To generate and secure consumer awareness among Institutions .

Scope of Project:
The study carried out in Delhi-NCR so its scope is mainly limited to Delhi and
Gurgaon-NCR.
1. It gives information about the size of the retail network.
2. It gives information about the services given by distributor to their retailer.
3. It gives information about the competitors’ products.
4. It will serve consumer in better manner.
5. It provides suggestions to the company to improve their products sales.
6. It gives information about the sales promotion activities to improve the milk
Sale.

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


RESEARCH METHODOLOGY

5.1 Research Methodology:


The research was conducted from 15th May to 15th July 2010. The research
include meetings with the Institutions. It included preparation of the
questionnaire to be answered by above people for knowing the competitive
position of Mother dairy in the Institutional milk market. The views of the
above parties were recorded in the research as per the questionnaire set by us.

5.1.1 Research Approach:


The objective was to know the competitive position of Mother dairy in the
Institutional milk business market thus in order to successfully conduct the
research the unbiased opinion of the above parties was desirable. Thus we
conducted the research as the representative of Mother dairy company and
sometimes the representatives of the other company like Amul or Paras in order
to have an unbiased opinion of the concerned persons and it worked to achieve
our goal.
5.1.2 Research Instrument:
The research instrument was the structured questionnaire formulated for the
respondents. There were also the area maps.

5.1.3 Types of Question:


The second important aspect in the designing a question is to decide which
types of question are to be used. Question can be classified in various ways.
Questionnaire contains following type information-
1. Open-ended question
2. Dichotomous question
3. Multiple-choice Question

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


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.

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


5.2.1 Product for Which Survey Was Conducted:-

Composition:
Variety Fat (%) SNF(%)* Price(Rs.)
Full cream milk 6.0 9.0 32.00
Single Toned milk 3.0 8.5 24.00
Double toned milk 1.5 9.0 20.00
Lite milk 0.5 8.7 18.00

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34
parts of protein and 9 parts of minerals.

Special Features:
Mother dairy Milk is the most hygienic liquid milk available in the market. It is
pasteurized in state of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
Product Specification:
Mother milk meets the PFA standards for the respective type of milk.

5.3.1 Area of Operation:


The areas of operation were the research was done are as follows:
• West Delhi(3 subdivisons – Patel nagar, Rajouri garden and Punjabi Bagh)
• Gurgaon NCR(Haryana)

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


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.

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


DATA PROCESSING AND ANALYSIS

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


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

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

1. Full Cream Milk:

FULL CREAM MILK SALES IN %ge

%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

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


3. Double Toned milk:

DOUBLE TONED MILK

%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

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


Market size of Mother dairy:

Market Size
West Delhi Zone
VOLUME OF MILK OF INSTITUTE &
RESTAURANT WHO ARE USING
MOTHERDAIRY(in ltrs) 3965

TOTAL VOLUME OF MILKOF INSTITUTE &


RESTAURANT TAKEN(in ltrs)
6986

USING BOTH MD & OTHERS BRAND(in


BRAND 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.
72727273

MD MARKET
SIZE, 56.756369
88
BOTH MD &
OTHERS BRAND
0.71571

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


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

1500
MD
1000 other brands

500

0
Hospitals Hotels& Offices&edu. Coffee Others
restaurants Institutes outlets

Market Potential:

MARKET POTENTIAL

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

INST. INTERESTED IN
SWITCHING TO MD ARE: 32 32

INST. WHO ARE ALREADY


USING MOTHERDAIRY: 37 37

INST. WHO DON'T WANT TO


SWITCH TO MD ARE: 28 28

DATA NOT AVAILABLE: 3 3

TOTAL NUMBER OF INSTITUTE


TAKEN: 100 100

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


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
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

institutes data are not available.

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


Sales of different
fferent variant of Mother Dairy Milk(GURGAON
(GURGAON-NCR):

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

1. Full Cream Milk:

FULL CREAM MILK SALES IN %ge

%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)

2. Sinle Toned milk:

TONED MILK SALES

%ge of milk
sales of other
brand, 41.72610
2
556

%ge of sales
motherdairy, 58.
1 27389444

0 200 400 600 800

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


3. Double Toned milk:

DOUBLE TONED MILK

%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

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


Market size of Mother dairy:

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

USING BOTH MD & OTHERS BRAND(in ltrs)

50
MARKET SIZE OF MD (IN %age) 26.6658

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
27273

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


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

1000 MD
Other brands
500

Market Potential:
MARKET POTENTIAL

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

INST. INTERESTED IN
SWITCHING TO MD ARE: 33 30

INST. WHO ARE ALREADY


USING MOTHERDAIRY: 41 37

INST. WHO DON'T WANT TO


SWITCH TO MD ARE: 31 28

DATA NOT AVAILABLE: 5 4.5

TOTAL NUMBER OF INSTITUTE


TAKEN: 110 100

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


Finding:

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

institutes data are not available.

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


Competition mapping in West Delhi and Gurgaon:
Gurgaon
I. Source from where Institutions get their milk-
Of the total 210 institutions Surveyed,
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 institutions which are purchasing milk in large quantity take mostly
from distributors while small institutions take mostly from retailers.

II. Analysis on basis of Taste factor:


Graph showing Taste as an important parameter-

140
120
100
Taste not imp.
80
60 Taste as somewhat imp
40 parameter

20 Taste as most imp.


Parameter
0
Using MD Not using Rarely using
milk MD milk MD milk

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


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
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 1
80% 25 33
2
quality as a paramtr
60% not at all imp

40% quality as a paramtr


50 81 4 somewhat imp
20% 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.
milk

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


IV.Analysis on the basis of AVAILABILITY parameter:

Graph showing ease of AVAILABILITY as an important parameter-

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.

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


V. Price of milk:

140

120

100

80 Price not important


60 Price somewhat imp
Price important
40

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.

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


OBSERVATIONS AND FINDINGS

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


Hospitals etc) -
• The awareness level of Mother dairy milk in bulk users is around 90% but
only 30% are using Mother dairy milk.
• The preference of purchasing milk by the bulk users is mainly quality, price
and timely availability.

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

1. Higher price that is not meeting the competitors rate as bulk user are very
price sensitive. Other milk dairies are providing higher margin.
2. In sweet marts mawa generation is less and there is a complaint about
cuddling of milk.
3. In case of canteens contract some of them prefer credit purchasing which is
against company’s norms and policies.

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


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.

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


SUGGESTION AND RECOMMENDATIONS :

• Mother Dairy can cut costs for some period of time followed immediately
by strong advertising. As we have seen during the research that most of
institutions give most preference to the margin provided to them on
milk(except coffee outlets). As the quality and taste and availability of
mother dairy milk are best in market and local milk companies good
margin to them, Price remains the main criteria of institutional milk sales.
• Can start schemes like cash prizes or foreign trips on scratching the
barcode on the packet
• Locate the institutions using competitor’s milk and provide them
attractive offers to increase the market share so that at least the big
competitors will not try to expand.
• Mergers and Acquisition in the milk industry with local players help the
company in increasing its distribution network and Market share.
Following this MD can buy the milk from local dairies taking over their
business which is substantial in terms of market share
• MD should introduce a mascot for the milk (as it has been for Amul
Butter). This will help in easy Brand differentiation and Recognition.
• Efficiency in distribution
• Remove communication barriers and misconceptions between the
Institutions and distributors by effective communication with institutions
time to time.

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


BIBLIOGRAPHY & WEBLIOGRAPHY
www.motherdairy.com

www.nddb.org

www.indiandairy.com

www.wikipedia.com

www.indianmilkproducts.com

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


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?

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


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

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