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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE A report submitted in partial Company Guide:
Ms. Amrita Das Institutional Sales Head Mother Dairy Pvt. Ltd, De lhi
Abh imanyuyadav|MBAIInd ye ar|DoMS, IIT Roorkee|
DEPARTMENT OF
MANAGEMENT STUDIES, IIT R OORKEE A report submitted in partial fulfilment of the req uirements of MBA (2009-11)
Mother Dairy Pvt. Ltd, De lhi
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.Sandeepghosh, 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.
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)
TABLE OF CONTENTS:
Sr. No. Subject Page No. 1. EXECUTIVE SUMMARY 5 2. INTRODUCTION 8 3. MILK INDUSTRY AND COMPANY PROFILE 9 4. OBJECTIVE AND SCOPE OF STUDY 21 5. RESEARCH METHODOLOGY 22 6. DATA PROCESSING AND ANALYSIS 26 7. OBSERVATION AND FINDINGS 41 8. CONCLUSION 42 9. SUGGESTION AND RECOMMENDATION 43 10. BIBLIOGRAPHY AND WEBLIOGRAPHY 44 11. ANNEXURE 45
EXECUTIVE SUMMARY
In todays 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 competitors 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.
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 websitewww. mo t h erd ai ry.co m Sampling done is non-probability samplin g. 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.
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.
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
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
OPERATION FLOOD
Programme implementation: Operation Flood was implemented in three phases. Phase I Phase I (1970-1980) was financed by the sale of skimmed milk powder 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.
Phase II Operation Flood's Phase II (1981-85) increased the milk sheds from 18 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 III Phase III (1985-1996) enabled dairy cooperatives to expand and 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 Womans 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.)
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) Cooperative Milk Marketing Federation Ltd (GCMMF) Developmen
3)Gujarat
4)Haryana Dairy
t Cooperative Federation Ltd. (HDDCF) 5) Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF)
6)Karnataka 7)Kerala
State Cooperative Milk Marketing Federation Ltd (KCMMF) State Cooperative Dairy Federation Ltd (MPCDF) Sahakari Maryadit Dugdh Mahasangh (Mahasangh)
8)Madhya Pradesh
Orissa State Cooperative Milk Producers' Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF) West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)
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.
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
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e f f i c i e n t l y Mother Dairy had declared, as its business philosophy, the following: e n s u r e t h a t m p r o d u c e r s a n d f a r m e r s r e g u l a r a n d c o n t i n u a l l y r e c e i v e market prices by offering quality milk, milk products and other food products to consumers at competitive prices and;
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