INTRODUCTION

Cooperatives have existed as dominant forms of organization in the dairy

industry around the world since 19th century. Sometimes they have played

the role of developing infant industry while at other times they have been

used to strengthen weak production bases in an environment where market

failures tend to be higher for marginal producers. In some other cases, a

network of small producers have organized themselves to better market their

products. Management of these cooperatives has also led to some interesting

managerial insights for managers in emerging as well as developed

economies. Large emerging economies, e.g., India and China, have

complexities that range from development of markets (where the largest

segment of population is the one which has low purchasing power) to

integration of low cost suppliers who are predominantly very small. For

firms that aspire to conduct substantial business in such markets, such

complexities have to be recognized and then overcome.

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 can be divided into two types of enterprises:

Liquid Milk and Milk Products. In the procurement and marketing of liquid

milk, there is strong presence of co-operative and traditional private

channels though the organized sector private enterprises also exist. On the

other hand, in the marketing of western dairy products, there are only

organized large co-operative, multinational and domestic private sector

enterprises.

Dairying is a centuries-old tradition for millions of Indian rural households.

Domesticated animals have been an integral part of the farming systems

from time immemorial. Milk and milk products contributes more to the

national economy than any other farm commodity—more than 10.5 billion
dollars in 1994-95. In the context of poverty and malnutrition, milk has a

special role to play for its many nutritional advantages as well as providing

supplementary income to some 70 million farmers in over 500,000 remote

villages.

Annual milk production in India has more than tripled in the last three

decades, rising from 21 million tons in 1968 to an anticipated 80 million

metric tons in 2001. This rapid growth and modernization is largely credited

to the contribution of dairy co-operatives. Despite the impressive growth in

milk production in the last three decades, the productivity of dairy remains

very low and milk-marketing systems primitive. Currently, more than 80

percent of the milk produced in the country is marketed by unorganized

sectors and less than 20 percent by the organized sector. The organized

sector involves government and co-operatives the unorganized sector

involves private organizations.

Marketing of the majority of the milk through unorganized sectors is likely

to dissuade small dairy farmers from expending production, which is abso-

lutely necessary to keep up with the strong demand growth.

The study sought to explore the question on the different ways of marketing

the product of Mother Dairy, and to find out what preference people have for

the consumption of mother dairy product. Being perishable in nature and the
range of skills involved in its production and marketing, expanding the

potential of dairy marketing requires a number of services that can best be

provided by cooperative action.

The orientation of the large private dairy sector has been, historically,

towards milk product marketing. The private, domestic and multinational

enterprises are attracted to dairy product manufacturing because of the ease

of profit making through brand marketing by reaching to high income

consumers, SNF (Solids Not Fat) surplus and lesser hassles in marketing.

The price realization per litre of milk is higher in the case of western milk

products. There are a few organizations which are into both liquid milk as

well as milk products. These two categories differ in terms of their

ownership, size of business and profitability. Whereas liquid milk business

is dominated by co-operative or private Indian firms, the milk product

business is largely in the hands of multinational corporations (MNCs). The

presence of private dairies in liquid milk is confined only to certain cities

and regions.

This paper also examines the profile of mother dairy in dairy business, its

growth, performance, business and marketing strategies and prospects, with

special reference to Nagrakata Region. This study is based on the secondary

data and the interviews with the dairy unit owners and managers are done to

obtain qualitative information.

Current theories of strategy and organization suggest that Mother Dairy

benefit from related diversification and tight coordination of the

multidivisional structure. This project aims to probe into this issue by using

the theoretical framework of “strategy, structure and performance”. Three

Issues will be addressed by us:

a) What strategies and structure does Mother Dairy adopt in a constantly

changing and turbulent developing economy?

b) Do the influences of Mother Dairy have interaction effects with

environmental conditions?

c) How does Mother Dairy make milk affordable for the large majority with

limited purchasing power?

Dairy marketing strategies:

Marketers use an assortment of strategies to guide how, when, and where

product information is presented to consumers. Their goal is to convince

consumers to buy a particular brand or product. Successful marketing

strategies create a desire for a product. A marketer, therefore, needs to

understand consumer likes and dislikes. In addition, marketers must know

what information will convince consumers to buy their product, and whom
consumers perceive as a credible source of information. Some marketing

strategies use fictional characters, celebrities, or experts (such as doctors) to

sell products, while other strategies use specific statements or "health

claims" that state the benefits of using a particular product or eating a

particular food. So dairy marketing Strategies in the context of Globalization

should be as:

1) Focused Approach: While the product portfolio has been growing,

Indian dairy Industry should plan for reach out to newer markets - but the

strategy here is more product-specific.

2) Wider Spread: However, as far as other dairy products are concerned,

Indian dairy Industry should plan to expand across the board.

3) Create Original Marketing: Re-invent a product with a powerful

marketing campaign. No matter whether what is sold is milk, yogurt, butter,

sour cream, or cheese, a truly original commercial or print ad can cause

consumers to think of the products in a new light. A catchy slogan, a

memorable spokesperson or an emotionally powerful commercial can go a

long way. It is better to use viral marketing and social media to get the

products to the masses without spending an enormous amount on

advertising.
4) Focus on Nutritional Value: Use scientific-based guides and studies

such as this to convince consumers to consume the dairy products.

5) Appeal to the Organic Market: Consumer demand for organic milk

continues to grow at an annual rate approaching 20 percent, according to the

Agricultural Marketing Research Center. Many people are attracted to

products that are free of chemicals and are manufactured naturally. Utilize

the organic trend in the product line. Follow the government guidelines to

get the organic seal to include in the product advertising and packaging.

6) Introduce New or Unknown Products: Offering consumers something

they have never heard of is a sure-fire way to peak interest in a product.

There were 448 total new dairy product launches in 2010, according to Dairy

Foods. Try new flavors of milk, such as banana or blac.