Summer Training Report on Identifying factors behind low sale of milk A study of Mother Dairy

As partial fulfilment of requirements for the award of the Post Graduate Diploma in Business Management (FMG-XVII) 2008-10

Submitted to: Prof. Sanghamitra Buddhapriya

Submitted By: Sumeet Sharma FMG XVII Roll No.081117

FORE SCHOOL OF MANAGEMENT
B-18, QUTAB INSTITUTIONAL AREA NEW DELHI

Certificate

This is to certify that Mr. Sumeet Sharma, Roll No. 081117 has completed his summer internship at Milk Division at Mother Dairy Fruits and Vegetables Pvt. Ltd., Noida and has submitted this project report entitled Identifying factors behind low sale of milk;A study of Mother Dairy towards partial fulfilment of the requirements for the award of the Post Graduate in Management (FMG-XVII) 2008-2010.

This Report is the result of his own work and to the best of my knowledge no part of it has earlier comprised any other report, monograph, dissertation or book. This project was carried out under my overall supervision.

Date: Place: ----------------------------------Internal Faculty Guide

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TABLE OF CONTENTS
S.no I II 1. Particulars Acknowledgment Exécutive Summary Introduction
1.1) Relevance 1.2) Description of Problem 1.3) Objective of the Project

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1 3 3 5

2.

Literature Review
2.1) Indian Dairy Industry: An Overview 2.2) Operation Flood 2.3) National Dairy Development Board (NDDB) 2.4) About the Company: Mother Dairy 2.5) Delhi NCR Market

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3.

Methodology
3.1) Locale of the Study 3.2) Sample Collection 3.2.1) Size of Sample 3.2.2) Method of Sampling 3.3) Data Collection 3.4) Data Analysis

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4. Analysis of Results
4.1) Quality 4.2) Smell 4.3) Taste 4.4) Commission 4.5) Timing 4.6) Accessories (Paint/Board) 4.7) Distributor 4.8) Schemes

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23 25 27 29 31 33 35 37

5. Conclusions
5.1) Concluding observations 5.2) Limitations of Study 5.3) Further Scope of Study

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6.

Recommendations References Appendix- Questionaire

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ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the project would be incomplete without the mention of the people who made it possible. I take this opportunity to express my sincere gratitude to Sh. Sandeep Ghosh (Head Sales) for his valuable guidance, support and encouraging words during the entire project duration. I feel privileged in expressing profound sense of gratitude and indebtness to my company guide Mr. Achint Malhotra (ASI,NT-4) for his invaluable support, guidance and suggestions which helped me to do the project. I would like to thank Mr. Subhash Sharma and Mr. F.C.Gupta who in spite of busy schedule has co- operated with me continuously and indeed, his valuable contribution and guidance have been certainly indispensable for my project work. I would like to express my profound sense of gratitude to Dr. Sanghamitra Buddhapriya, my faculty guide, who has always given me motivational boost to go and perform. I would further like to thank him for his persistence to listen to my problems and to give apt solutions.

(Sumeet Sharma)

Summer Internship Project/ Sumeet Sharma/FSM

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Shastri Nagar.EXECUTIVE SUMMARY This project report mainly focuses on identifying various factors which affects the sale of Mother Dairy milk in the market. Also some recommendations are suggested to the organisation which I think would be beneficial to the organisation to get back its lost customers. Ashok Vihar. Lawrence road etc. The region NT-4 includes the area of Pitampura. Kishan Ganj. I was assigned a region NT-4 in which I have to scan the whole market doing a market research finding various factors due to which the sale of Mother Dairy is continuously descending. In this questionaire the retailers were asked to rate the important factors on the scale of 1-5. Summer Internship Project/ Sumeet Sharma/FSM Page ii . The organisation can also focus on maintaining the quality of the milk till it reaches the end customers. The major finding of this research is that the main reason due to which the sales are continuously decreasing is due to the low Quality and bad taste and smell present in the milk as suggested to retailers by customers. It can be achieved by coming out with some schemes for the customers which could benefit the customers in monetary form. For this I have formulated a questionaire with the help of which I can clearly evaluate those factors qualitatively and can come to a conclusion. Rani Bagh. For this purpose they can have a organised structure for the distributors as they holds the milk for the most important phase of the milk.

CHAPTER 1 INTRODUCTION Summer Internship Project/ Sumeet Sharma/FSM Page 1 .

makes a major nutrient contribution to children's diets. The quality of milk was not guaranteed also adulteration was an issue. Further minerals like phosphorous. apart from Vitamin C. sodium. biotin. Summer Internship Project/ Sumeet Sharma/FSM Page 2 . Over 70 percent of the calcium in our food supply comes from milk and dairy foods. pyridoxine. In addition to calcium. one of the most nutritious beverages that you and your family can enjoy. niacin. vitamin B12 etc. folic acid. pantothenic acid. it's unlikely that kids will meet their daily calcium needs. Poly pack milk is fast gaining precedence also the quality of mik is assured by the company which is selling milk.Milk. potassium and magnesium are present in appreciable quantities. Due to the fast expansion of cities and lack of time with the people. Earlier milk used to be available in loose form delivered by the milkman. Milk provides considerable quantity of thiamine. Without milk on the menu. The quality is in accordance with the norms of FAO – Food and Agricultural Organisation which takes care of the quality of food products sold all over the world. Milk is the most widely used commodity in most of the households. it provides eight other essential nutrients. Although people use it daily for drinking or making tea or coffee. riboflavin.

many households owned their own ‗family cow‘ or secured milk from a neighbour who had one. Nowadays consumers have become more cautious about the quality of the milk they are consuming as they are highly aware of the standards they get in the milk taken from local milk distribution centres and the standard they get in the poly packed milk. restricted the practice. 1.1.2 DESCRIPTION OF PROBLEM Traditionally. problems of sanitation etc. With the increase in urban population fewer households could afford to keep a cow for private use & moreover there were other problems also like the high cost of milk production. So it‘s quiet important that a company should focus on this market and know each and every detail of this market. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Summer Internship Project/ Sumeet Sharma/FSM Page 3 .1 RELEVANCE Indian dairy sector is still mainly an unorganised sector as barely 10% of our total milk production undergoes organised handling. What this research would help them to know the insights of the market through the side of retail chain with the help of which they can focus on solving the problems faced by their retailers. A company should keep a close watch at the satisfaction level of its retailers and also they should be able to meet any complaints as soon as possible. The retail chain has emerged as a huge potential market which if captured can help a company to emerge as a leader in the market. in India dairying has been a rural cottage industry. In earlier years.

Earlier only these booths are the means through which mother dairy is used to sell the milk in the urban areas. but with the inception of the competitors and there use of the retail shops as a means to distribute milk. With modern knowledge of the protection of milk during transportation. The Indian Dairy Industry has made rapid progress since Independence. this gave rise to the fluid milk-sheds we see today in every city of our country.Gradually farmers living near the cities took advantage of their proximity to the cities & began supplying milk to the urban population. The problem that will be tackled in this research is to find the appropriate reasons for the low sale in the retail chain of Mother dairy as compared to other competitors like Amul. it forces Mother Dairy to also make these local retail shops as a medium of their selling. the market milk technology may be considered to have commenced in 1950. For this purpose what we have to do is to find issues related to Mother Dairy retailers so that we can clearly understand the mindset of the market and the retailers so that we can improve upon those points to increase the sale of Mother Dairy in market. A large number of modern milk plants and product factories have since been established. with the functioning of the Central Dairy of Aarey Milk Colony. These organised dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. In India. Summer Internship Project/ Sumeet Sharma/FSM Page 4 . Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. Mother Dairy is the first company to set up booths in the country through which they sell bulk vended milk (loose milk) and milk in poly packs. and milk product technology in 1956 with the establishment of AMUL Dairy. it became possible to locate dairies where land was less expensive and crops could be grown more economically. Anand.

1.  To study Mother Dairy strategy vis-à-vis competitors.2 Secondary Objective:  To identify the issues related to Mother Dairy retailers.1.  To add up new retailers in this area.  To study the distribution channel in the retail chain of Mother Dairy  To cover up the region NT-4 and get the retailers feedback. 1.3 PROJECT OBJECTIVES: 1.1 Primary Objective: The main objective of this project is to probe the reasons for low sale in the retail chain of Mother Dairy in the milk sector in the area NT-4 and thereby suggesting remedial recommendations thereof.  Suggesting viable recommendations to be implemented in the area.  To keep track of the daily sales of the distributors in the region NT-4. Summer Internship Project/ Sumeet Sharma/FSM Page 5 .  To find out short term problem in every sub-region that can be sorted out.1.

Chapter 2 LITERATURE /CONCEPTUAL SUPPORT Summer Internship Project/ Sumeet Sharma/FSM Page 6 .

and the animals and workers involved in their production: for example dairy cattle. websites and blogs were used. but also from buffalo. horses or camels —for human consumption.In the earlier chapter. As an attributive. sheep. introduction to the project was given in which objectives were defined. the problem that the company is facing and the relevance of this project was given. The dairy industry is a part of the livestock sector of the country. This chapter is about the literature and the conceptual support that will be needed at the advance stage of this project. company’s overview was given. that will be helpful in properly understanding this project. butter and cheese. These establishments constitute the dairy industry. derivatives and processes.1 Indian Dairy Industry: An Overview A dairy is a facility for the extraction and processing of animal milk—mostly from goats or cows. a component of the food industry. dairy goat. In this various important terms and important concepts as per the requirement of the project have been defined. A dairy farm produces milk and a dairy factory processes it into a variety dairy products. Typically it is a farm (dairy farm) or section of a farm that is concerned with the production of milk. Summer Internship Project/ Sumeet Sharma/FSM Page 7 . the word dairy refers to milk-based products. 2. For this various books.

 India's 3.  The Eleventh Five Year Plan envisages an overall growth of 6-7 % per annum for the sector.Some highlights of the livestock sector are:  The livestock sector contributes over 4 % to the total GDP and about a quarter of the GDP from agriculture and allied activities. Summer Internship Project/ Sumeet Sharma/FSM Page 8 .3 million tonnes of meat. the net increase in availability is around 2 per cent per year. This sector is a main source of family income in the arid and semi-arid regions. Key challenges before Indian Dairy Industry are as follows:  Ensuring Quality  Procurement and efficiencies in supply chain  Product differentiation and value addition Milk Production  India's milk production increased from 88. up from 112 grams per day in 1968-69. this sector contributed 101 million tonnes of milk. In 2006-2007. 45 million kg of wool and 2. 51 billion eggs.8 percent annual growth of milk production surpasses the 2 per cent growth in population.1 million tonnes in 2003-04 to 100 million tonnes in 2007-2008.  India is the largest producer of Milk in the World (replacing USA)  Per capita availability of milk presently is 231 grams per day.

Operation Flood's objectives included:    Increase milk production ("a flood of milk") Augment rural incomes Fair prices for consumers Summer Internship Project/ Sumeet Sharma/FSM Page 9 .2 Operation Flood Launched in 1970. which procure milk and provide inputs and services. Operation Flood has helped dairy farmers direct their own development.2. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities. reducing seasonal and regional price variations while ensuring that the producer gets a major share of the consumers' rupee. making modern management and technology available to members. placing control of the resources they create in their own hands. The bedrock of Operation Flood has been village milk producers‘ cooperatives.

employment generation. This commitment has been rewarded with achievements made by cooperative dairies in milk production. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. stagnation with growth and transformed dairying into an instrument for the development of Indian farmers. Thus NDDB's mandate is to promote. finance and support producer-owned and controlled organizations. He wanted the Anand model of dairy development . finance and support producer-owned and controlled organizations. The National Dairy Development Board (NDDB) has replaced exploitation with empowerment. convention with modernity. which were sensitive to their needs and responsive to their demands .with institutions owned by rural producers.replicated in other parts of the country. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperation.2. The National Dairy Development Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to "transplant the spirit of Anand in many other places". foreign exchange savings and increased farmer incomes.3 National Dairy Development Board( NDDB) The National Dairy Development Board was created to promote. Summer Internship Project/ Sumeet Sharma/FSM Page 10 . per capita availability of milk. The Board's creation was routed in the conviction that our nation's socio-economic progress lies largely on the development of rural India.

standardised milk. Delhi is an IS/ISO-9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Environment Management System (EMS) Certified organisation. double toned milk and Skimmed milk (lite) in polypacks. marketing about 1.9 million liters of milk per day. Delhi is IS/ISO9002 & IS-15000 (HACCP) certified organisation. ‘Mother Dairy’. which markets over 22 lakh LPD of milk procured from various State federations in Delhi. India as well as in Asia. Mother Dairy. It started its operations in 1974 under the Operation Flood programme of the National Dairy Development Board. Operation Flood is one of the largest dairy development projects in the world. primarily because of consistent quality and service reliability. Summer Internship Project/ Sumeet Sharma/FSM Page 11 .2. toned milk. Mother Dairy also markets Full cream milk. Mother Dairy commands 40% market share in the organized sector in and around Delhi. ‘Mother Dairy’ is the single largest brand of milk in Delhi. In addition to toned milk through Bulk vending.4 About the company –Mother Dairy ‘Mother Dairy’ is the largest liquid milk brand in Asia. Mother Diary. has now entered the Mumbai market.

milk products and other food products to consumers at competitive prices and. Table Butter. Dairy Whitner. Ghee etc.a processing company. the NDDB merged Mother Dairy and the Fruit & Vegetable project into a wholly owned company named Mother Dairy Fruit &Vegetable Ltd (MDFVL) in April 2000. Ice-Cream. Dahi. This becomes the holding company of Mother Dairy India Ltd (MDIL). The objective of Mother Dairy is to: (a) ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk. (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. Considering the success of Dairy industry NDDB established Fruit & Vegetable Project in Delhi in 1988 with "SAFAL" as its umbrella brand. Flavoured Milk. Summer Internship Project/ Sumeet Sharma/FSM Page 12 .a marketing company and Mother Dairy Foods Processing Ltd (MDFPL). Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives. Lassi. The company is a highly trusted household name for its wide range of milk products like Milk. The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first phase of Operation Flood in 1974.Mother Dairy was the first industry in country to implement ISO-14031(Environment Performance Evaluation) project. With a view to separating the commercial activities from developmental activities. This provides assurance to the consumer in respect of Quality and Safety of products manufactured and marketed by Mother Dairy.

exporting its range of dairy products to various international markets. is dominated by Mother Dairy currently. there is the public sector Delhi Milk Scheme (three LLPD) and private brands such as ‗Paras‘ and ‗Gopaljee‘ (1.5-2 LLPD each). Amul launched its fresh milk in Delhi in two variants — full cream and toned — priced at par with that of Mother Dairy . Amul and NDDB's non-compete agreement has prevented the former from launching its liquid milk in the Delhi market till 2003. which sells 10 LLPD). Summer Internship Project/ Sumeet Sharma/FSM Page 13 . processing of milk is controlled by process automation whereby state-ofthe-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Delhi‘s estimated 40 lakh litres per day (LLPD) organised liquid milk is dominated by Mother Dairy (23 LLPD) and Gujarat Cooperative Milk Marketing Federation (GCMMF or ‗Amul‘. In addition to its market leadership in India. Besides these two.5 Delhi NCR market: Delhi National Capital Region (NCR).Amul. has seen the demand for its milk going up by leaps and bounds in the city and is now planning to enter into alliances with dairies located around Delhi such as Indian Potash and Modern Dairy to cater to the demand.At Mother Dairy. to its delight. 2.With the non-compete agreement having run out. Mother Dairy is also active in the global arena. among the biggest milk markets in the country.

Chapter 3 METHODOLOGY Summer Internship Project/ Sumeet Sharma/FSM Page 14 .

this chapter deals with the methodology that was used while carrying out the project. various parameters and also the data that was collected. a brief session was again conducted with Mr. a brief session was conducted with Mr. and clues were provided to prepare the questionnaire for the Independent retail stores.Sandeep Ghosh (Head Sales) at Noida Office. This chapter would give the detailed process how appropriate methods were chosen and designed. He also gives us knowledge about the various plants where milk is processed. In order to get the first hand experience. In that chapter various terms and concepts were explained.Gupta (Head Sales-North Delhi). where he provided us with valuable insights of how the company works and what are various distribution channels followed by the company.Delhi) and Mr. F. Subhash Sharma (Head Sales.The earlier chapter dealt with the literature and the conceptual facts that are needed to be understood to have clarity on this project’s topic.C. and a format was provided to scan the market. From here the main methodology starts as after that various hints. Summer Internship Project/ Sumeet Sharma/FSM Page 15 . At the beginning of the training process. what were the target sample and the method that was used for it.

Rani Bagh. Sawan Park. Sindhori Kalan.e. Indra Lok Radha Krishna ENT: Kishan Ganj. NT-4 and cover all retail shops irrespective of that they are selling Mother Dairy or not and then to convince the non-selling shops to start selling the Mother Dairy Milk.  The various locations surveyed under different distributors are:  Mukesh Sharma: Shakurpur Basti. I first visited the retail shops that are covered by the five distributors present in the area and then after that I visited the non-selling shops.Thus during the entire project following steps were undertaken:  After getting feel of the whole working of the organisation. Multani Mohalla. Kohat Enclave. Pitampura. Sainik Vihar. Mahindra Park.: Ashok Vihar. a questionaire is drafted depending on the type of research we were asked to do. Andha Mugal.Sunita Sharma: Tri Nagar. Choudhary & Sons Co.  I am asked to scan the whole area i. Subhadra Colony.J.  A total of around 600 retailers are surveyed during the whole research with the help of a questionaire. Srinagar. Saraswati Vihar. Lok Vihar.Colony Summer Internship Project/ Sumeet Sharma/FSM Page 16 . Raja Park.      Smt.  The market is surveyed with the help of the distributor as well as independently.  So for having a clear idea. Lawrence Road. Padam Nagar. Geeta Enterprises: J. Satyveer Singh: Shastri Nagar.

and Ashok Vihar.2. Shastri Nagar. Kishan Ganj. The next chapter deals with the data analysis and interpretations that was done for the project after collecting all the data. The data collected from secondary sources is also used to analyse on one particular parameter.2 Sample collection All the retailers under region NT-4 were interviewed. 3. Rani Bagh.2.1 Locale of the study The study was done in the region NT-4 under the supervision of Noida Office.4 Data Analysis Data analysis was done mainly from the data collected through the retailers. 3.3 Data collection Data was collected through two sources: Primary Source: Primary data was collected directly from the retailers through a questionaire. 3. 3.1 Size of the sample Around 600 retailers were interviewed. 3. Qualitative analysis was done on the data collected from the primary as well as secondary sources. The region NT-4 covers areas like Pitampura.J.Colony.2 Method of sampling Convenient sampling is used to do sampling as all the retailers in the region NT-4 are interviewed. J. Tri Nagar.3. Secondary Source: The secondary source was the daily sales record of all the distributors. Summer Internship Project/ Sumeet Sharma/FSM Page 17 . Lawrence Road.

Chapter 4 Analysis of results Summer Internship Project/ Sumeet Sharma/FSM Page 18 .

The data collected focussed on various parameters on which the whole milk industry depends and furthers the analysis is done on those parameters. First let us look about the type of retailers surveyed 78 retailers selling MD retailers not selling MD 522 What we can see is that most of the retailers surveyed are currently selling milk of Mother Dairy and only 78 retailers not selling mother Dairy milk are surveyed out of which one retailer is convinced to sell the Mother Dairy milk. Summer Internship Project/ Sumeet Sharma/FSM Page 19 .The analysis is done on the data collected through a questionaire filled by around 600 retailers.

The gap between number of retailers satisfied and number of retailers notsatisfied is too high.Next thing which was reviewed was that how many retailers out of 600 are satisfied with the milk of Mother Dairy. The following result came out: 235 satisfied 365 not satisfied The results were really shocking as not even 50% of the retailers are satisfied with the milk of Mother Dairy. So further research was sidelined to find why so many retailers under one region are not satisfied with the milk of Mother Dairy. Summer Internship Project/ Sumeet Sharma/FSM Page 20 . So with the help of distributor and Mother Dairy officials some parameters emerges which we all feel is important in the milk industry.

On the whole 10 parameters were finalised on which the research was done. Summer Internship Project/ Sumeet Sharma/FSM Page 21 . Amul and other Brands are rated on the scale of 1-5 to get an overall view of the market situation and then different parameters are evaluated on the same scale of 1-5. These parameters are:  Quality  Taste  Scheme  Smell  Commission  Leakages  Dirty crates  Paint/Board  Distributor  Timing Initially MD.

Out of those 10 parameters finalised 8 of them were really found important once the survey was over. It is because Amul has tried to made inroads into the Delhi/NCR market with a high quality milk which no other brand in the market at this point of time is providing to its customers.5 0 overall MD AMUL Others What we can see is that Amul leads the pack which is in accordance with the earlier result of satisfaction level of retailers as not many of them were satisfied.5 4 3.5 1 0. Summer Internship Project/ Sumeet Sharma/FSM Page 22 . These parameters are analysed graphically and statistically.5 3 2. Now comes the main work.The result of overall view is: 5 4. finding parameters which are important and affects the behaviour and perception of retailers about Mother Dairy.5 2 1.

Quality Ha: There is a significant difference between the response of retailers w.t. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of quality of MD and Amul. To confirm this data we have applied the statistical tool. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor.r. Quality Summer Internship Project/ Sumeet Sharma/FSM Page 23 . This is mainly because MD is 7 state milk whereas Amul is a one state milk.r. Hypothesis: Ho: There is no significant difference between the response of retailers w.4.1 QUALITY 6 5 4 3 2 1 0 Quality MD Amul Others What we can clearly see is that Amul clearly leads the pack in the terms of quality.t.

02387 Difference 100 -2.t.Result: Paired T for MD . Summer Internship Project/ Sumeet Sharma/FSM Page 24 .11953 95% CI for mean difference: (-2. there is a significant difference between the response of retailers w. Quality.39717.AMUL N MD AMUL Mean StDev SE Mean 100 2.000 Interpretation: The P-Value < 0. -1.16000 1. not = 0): T-Value = -18.e.78000 1.15976 0.r.92283) T-Test of mean difference = 0 (vs.11598 100 4.94000 0.07 P-Value = 0.19528 0.23868 0.05 means we have to reject the null hypothesis at 95% confidence level i.

2 SMELL 5 4.t. To confirm this data we have applied the statistical tool. Smell Ha: There is a significant difference between the response of retailers w.r. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Smell in MD and Amul.5 MD Amul Others 2 1.5 3 2.4.5 0 Smell What we can clearly see is that smell is most prominent in MD as compared to other competitors. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor.t. Hypothesis: Ho: There is no significant difference between the response of retailers w.r.5 1 0.5 4 3. Smell Summer Internship Project/ Sumeet Sharma/FSM Page 25 .

98 P-Value = 0.Result: Paired T for MD .e. there is a significant difference between the response of retailers w.r.17000 0.32000 0.89383 0.01739 Difference 600 3.AMUL N MD AMUL Mean StDev SE Mean 600 4. 3.05 means we have to reject the null hypothesis at 95% confidence level i.02741 600 1.42591 0.49000 0.03649 95% CI for mean difference: (3. Summer Internship Project/ Sumeet Sharma/FSM Page 26 .24834.t.67131 0.39166) T-Test of mean difference = 0 (vs not = 0): T-Value = 90. Smell.000 Interpretation: The P-Value < 0.

Smell Summer Internship Project/ Sumeet Sharma/FSM Page 27 .r.4.3 TASTE 6 5 4 3 2 1 0 Taste MD Amul Others What we can clearly see is that in case of Taste.t. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Smell in MD and Amul.r. Smell Ha: There is a significant difference between the response of retailers w.t. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor. Hypothesis: Ho: There is no significant difference between the response of retailers w. To confirm this data we have applied the statistical tool. Amul leads the pack followed by MD and the competitors.

28000 0.67175) T-Test of mean difference = 0 (vs not = 0): T-Value = -110.r.000 Interpretation: The P-Value < 0.00000 0.60183 0. -2.Result: Paired T for MD .60183 0.72000 0.00000 0.76825.AMUL N Mean StDev SE Mean MD 600 2.00000 Difference 600 -2.02457 95% CI for mean difference: (-2. there is a significant difference between the response of retailers w.t. Summer Internship Project/ Sumeet Sharma/FSM Page 28 .e.02457 AMUL 600 5. Taste.05 means we have to reject the null hypothesis at 95% confidence level i.71 P-Value = 0.

These high values are because MD and Amul both have the same commission of 80 paise/litre.5 2 1.t.4. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor. Hypothesis: Ho: There is no significant difference between the response of retailers w.5 0 COMMISSION MD Amul Others What we can clearly see is that in case of Commission.t. To confirm this data we have applied the statistical tool. Commission Ha: There is a significant difference between the response of retailers w. whereas other brands have a higher commission as compared to the market leaders.5 4 3.5 3 2. Commission Summer Internship Project/ Sumeet Sharma/FSM Page 29 .r.5 1 0.r. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Commission in MD and Amul.4 COMMISSION 4. other brands lead the pack followed by Amul and MD.

0. there is no significant difference between the responses of retailers‘ w.01000 1.02690 600 Difference 600 -0. Commission.070000 1. Summer Internship Project/ Sumeet Sharma/FSM Page 30 .Result: Paired T for MD .195 Interpretation: The P-Value > 0.r.65903 0.04485 0.05 means we have to accept the null hypothesis at 95% confidence level i.30 P-Value = 0.t.AMUL N MD AMUL 600 Mean StDev SE Mean 4.036004) T-Test of mean difference = 0 (vs not = 0): T-Value = -1.322125 0.176004.04266 4.08000 0.053976 95% CI for mean difference: (-0.e.

So this is the parameter in which MD should improve more and try to squeeze out even single complaint coming in this parameter.5 4 3. To confirm this data we have applied the statistical tool.5 0 Timing What we can clearly see is that in case of Timing.5 3 2.5 TIMING 4. Hypothesis: Ho: There is no significant difference between the response of retailers w.5 MD Amul Others 2 1. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor. Timing Summer Internship Project/ Sumeet Sharma/FSM Page 31 .t.r.5 1 0. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Timing in MD and Amul.t. MD leads the pack with a little difference above other players but Amul really lacks in this field. Timing Ha: There is a significant difference between the response of retailers w.r.4.

there is a significant difference between the response of retailers w.71970 0.20 P-Value = 0.r.02938 600 3. 1. Timing.AMUL N MD AMUL Mean StDev SE Mean 600 4.025043) T-Test of mean difference = 0 (vs not = 0): T-Value = 17.053486 95% CI for mean difference: (0.27000 0.96387 0.920000 1.Result: Paired T for MD .03935 Difference 600 0.05 means we have to reject the null hypothesis at 95% confidence level i.t.e.000 Interpretation: The P-Value < 0. Summer Internship Project/ Sumeet Sharma/FSM Page 32 .814957.35000 0.310138 0.

6 ACCESSORIES(PAINT/BOARD) 4 3. To confirm this data we have applied the statistical tool.5 1 0. Accessories Ha: There is a significant difference between the response of retailers w. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor.5 0 Accessories(Paint/Board) MD Amul Others What we can clearly see is that in case of Timing.5 3 2.t. MD leads the pack with a little difference above Amul but other players really lacks in this field.5 2 1. Accessories Summer Internship Project/ Sumeet Sharma/FSM Page 33 . Hypothesis: Ho: There is no significant difference between the response of retailers w.r. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Accessories (Paint/Board) in MD and Amul.r.4.t.

296615) T-Test of mean difference = 0 (vs not = 0): T-Value = 5.57000 0.02469 600 3.220000 0.955574 0. 0.143385.35000 0.05 means we have to accept the null hypothesis at 95% confidence level i.60474 0.t.96387 0. Accessories (Paint/Board).e.03935 Difference 600 0. there is no significant difference between the responses of retailers w.r.135 Interpretation: The P-Value > 0. Summer Internship Project/ Sumeet Sharma/FSM Page 34 .64 P-Value = 0.039011 95% CI for mean difference: (0.AMUL N MD AMUL Mean StDev SE Mean 600 3.Result: Paired T for MD .

r. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Distributors of MD and Amul.4. Hypothesis: Ho: There is no significant difference between the response of retailers w.2 4 3.7 DISTRIBUTOR 4.6 PROBLEM WITH DISTRIBUTOR MD Amul Others What we can clearly see is that in case of Distributors.t.8 3.t. Distributors Summer Internship Project/ Sumeet Sharma/FSM Page 35 .8 4.r.6 4.4 4. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor. To confirm this data we have applied the statistical tool. Amul leads the pack with a little difference above MD but other players are good in this field. Distributors Ha: There is a significant difference between the response of retailers w.

987281 0.Result: Paired T for MD . Summer Internship Project/ Sumeet Sharma/FSM Page 36 .02477 600 Difference 600 -0.AMUL N MD AMUL 600 Mean StDev SE Mean 4.23 P-Value = 0.130000 0.050843) T-Test of mean difference = 0 (vs not = 0): T-Value = -3.65000 0.60672 0.086 Interpretation: The P-Value > 0. there is no significant difference between the responses of retailers‘ w.t.r.209157. Distributors.e.83111 0.05 means we have to accept the null hypothesis at 95% confidence level i.03393 4. -0. This parameter provides an opportunity to MD to focus more on this as there are many complaints of Amul distributors in the area and if tried many customers and retailers can be broken from Amul.52000 0.040306 95% CI for mean difference: (-0.

as its MD only which comes up with the schemes as compared to its competitors.4. Hypothesis: Ho: There is no significant difference between the response of retailers w.t.r. To confirm this data we have applied the statistical tool. MINITAB OUTPUT: Objective: To know whether there is any difference in the opinion of retailers on the view of Distributors of MD and Amul.r.t. Schemes Ha: There is a significant difference between the response of retailers w.8 SCHEME 6 5 4 3 2 1 0 Scheme MD Amul Others What we can clearly see is that in case of Scheme. For applying statistical tool we just took into consideration Amul and MD as they both are the leader and successor. Schemes Summer Internship Project/ Sumeet Sharma/FSM Page 37 . MD clearly leads the pack.

Result: Paired T for MD .46000 0.05 means we have to reject the null hypothesis at 95% confidence level i. so what I had done is further researched on this front and the analysis I came up with is as follows: Summer Internship Project/ Sumeet Sharma/FSM Page 38 .94000 0.43833.r.AMUL N MD AMUL Mean StDev SE Mean 600 4. 3. What we have seen is that its Mother Dairy which is more focussed on bringing out new schemes as compared to its competitors.49881 0.000 Interpretation: The P-Value < 0. Schemes.t.03 P-Value = 0.23768 0.00970 600 1.e.02036 Difference 600 3.02122 95% CI for mean difference: (3. there is a significant difference between the response of retailers w.51966 0.48000 0.52167) T-Test of mean difference = 0 (vs not = 0): T-Value = 164.

To further verify our finding we have again applied statistical tool to confirm our finding: Summer Internship Project/ Sumeet Sharma/FSM Page 39 .May 10.Aur Ban Jao Malamaal”. During the period of May 01. From the graph what we can clearly see is that during the scheme period as highlighted the Demand is high as compared o the non-scheme period as highlighted.3500 3400 SCHEME 3300 3200 Series1 3100 3000 NO-SCHEME 2900 2800 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 This graph is formed with the help of average sales of all the distributors in the region NT-4 on the daily basis. During this scheme the sales are high as compared to the non-scheme days. 2009 a scheme was undergoing named ‖ Mother Dairy Full Cream Kharedo.

69 27.517 95% CI for mean difference: (90.68 Difference 10 154.60 no-scheme 10 3101.800 90.MINITAB OUTPUT: Objective: To know whether there is any difference in the sales of the distributors during the scheme and no-scheme days.43 P-Value = 0.289.41 11.e. there is a significant difference between the sales of distributor during the scheme and noscheme period.311) T-Test of mean difference = 0 (vs not = 0): T-Value = 5.no-scheme N Scheme Mean StDev SE Mean 10 3256.000 Interpretation: The P-Value < 0. Result: Paired T for Scheme . Hypothesis: Ho: There is no significant difference between the sales of distributor during the scheme and no-scheme period.70 86.90 36.180 28. 219.05 means we have to reject the null hypothesis at 95% confidence level i. Summer Internship Project/ Sumeet Sharma/FSM Page 40 . Ha: There is a significant difference between the sales of distributor during the scheme and no-scheme period.

CHAPTER 5 CONCLUSIONS Summer Internship Project/ Sumeet Sharma/FSM Page 41 .

charts and different statistical software. So in this project different parameters on which the sale of Mother Dairy depends are studied and analysed. 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. This chapter holds the conclusion of the whole project. that due to intense competition from its competitors is continuously losing its market in Delhi/NCR.1 Concluding observations This project was about the milk segment of Mother Dairy Pvt.2 Limitations of the study Since the study is done in only one region of Delhi. 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. 5. Shopkeepers also tend to hide some facts and figures due to some reasons which can hinder the results we get from this survey. Summer Internship Project/ Sumeet Sharma/FSM Page 42 . these results cannot be generalised on all Delhi basis. Smell and Taste.In the last chapter all the analysis for the project was done with the help of various graphs. Ltd. Still a lot can be done to make the whole system efficient. The final outcome of the project is that the parameters which hinder the sale of Mother Dairy are low Quality.

This kind of research should be done on all Delhi basis so that the organisation could get a clear picture of overall Delhi and then they can effectively implement some measures to rectify all the problems that comes up on all Delhi basis. Summer Internship Project/ Sumeet Sharma/FSM Page 43 .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. The next chapter is pretty important for this project as it includes the recommendations that if implemented can solve the company’s problem.

CHAPTER 6 RECOMMENDATIONS Summer Internship Project/ Sumeet Sharma/FSM Page 44 .

company should have a policy for each distributor to keep vehicles which can maintain the temperature of the milk as maximum distributors are currently doing the distribution with the help of auto-rickshaws which exposes milk to the hot air and sunlight.  As there are many regions in the area which consists of low income group. so the organisation should have a policy to provide them ―Dry ice Boxes‖ which can act as a refrigerator.  The organisation is way ahead in coming out with schemes for the distributors and retailers but the organisation should also start coming with schemes for the customers as it would be a real boost to the sales of Mother Dairy milk and also it will help MD get back its lost customers.In the last chapter conclusion was drawn and the business decision about the project was explained. These should be used in these areas as they are cheap and convenient to use.  To keep track of the supply timings and to sustain the quality of milk till it reaches the retailers.  There should be an arrangement made available for the distributors so that they can cater to sudden demand for the milk so that not even a single chance of selling is missed. Summer Internship Project/ Sumeet Sharma/FSM Page 45 . Following are the recommendations to be considered:  The organisation should have a specific distribution model which should be followed necessarily by each distributor as at this level not everything is organised and each distributor follows a different model to distribute milk due to which in some areas potential sale doesn‘t happens. In this chapter recommendations are given which can be helpful for the company if implemented.

 The organisation should have a consistent replacement policy for all kind of customers. The organisation should understand that the sale of MD milk is more in less developed areas so they should take extra care of these kinds of areas and should act as soon as possible to cater to their problems.  The organisation should schedule these kinds of surveys on a more regular basis as at this point of time Amul is really capturing the market and the organisation should take viable steps to meet the expectations of its customers.  The organisation should change their design of the packets of milk as the organisation should clearly state the bifurcations of various ingredients of milk as Amul presents a strong point to its customers writing there ―No Powder Milk‖ whereas MD milk packets has no such statements written on its packets. Summer Internship Project/ Sumeet Sharma/FSM Page 46 .

References  www.com Summer Internship Project/ Sumeet Sharma/FSM Page 47 .com  www.com  www.wikipedia.org  www.indiandairy.motherdairy.indianmilkproducts.com  www.nddb.

Avg.__________________________________________________ 3. Given below is the questionnaire: Questionaire for Retail Outlets 1. Booth No:._____ Distributor Name:. The questionaire includes both the closeended as well as open ended questions.Annexure For collecting the data a structured questionnaire for the retailers is prepared to get detailed and structured information regarding the project.___________________________ 2. How would you rate your present sales? a) Satisfactory: ______ b) Unsatisfactory: ______ Summer Internship Project/ Sumeet Sharma/FSM Page 48 . Daily Sales in litres for: MD_____ AMUL_____ OTHERS_____ 4. Location/Address:.

5... Commission________ Other Incentives______________________________ 9.. Whom do you consider your major competitor? ___________________________________________________________________ 7.. If not satisfactory then please choose the reasons from below: a) Competition from other brands b) Competition from local dairy owners c) Others ____________________________________________________________ 6... Specify one strength and one weakness of MD milk..... Strength________________________________________________________ Weakness______________________________________________________ Summer Internship Project/ Sumeet Sharma/FSM Page 49 .. Specify the commission and other incentives company is providing. Strength______________________________________________________________ Weakness______________________________________________________________ 8. Specify one strength and one weakness of your competitor..

... For leakage_________ For Curdling________ 11.Rate the milk on the scale of 1-5 on the following factors:  Quality MD_____  Taste MD_____  Scheme MD_____  Leakages MD_____ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______  Commission MD_____ AMUL____ OTHERS______ Summer Internship Project/ Sumeet Sharma/FSM Page 50 . and u feel happy to have their product on your counter? Rate on scale of 1 to 5: MD_________ AMUL________ OTHERS________ 12..Which company‘s product u feel has maximum sales.Is there any replacement policy being followed in the company.10.

Any suggestions you want to give to the company.. Distributor MD_____  Timing MD_____  Dirty Crates MD_____  Paint/Board MD_____  Smell MD_____ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______ 13. ___________________________________________________________ Summer Internship Project/ Sumeet Sharma/FSM Page 51 ....

Summer Internship Project/ Sumeet Sharma/FSM Page 52 .

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