EXECUTIVE SUMMARY

The basic purpose of this project is to know about the awareness level of people towards
mother dairy and its products. In its totally understanding the issues and problems faced by
mother dairy in marketing and to give suggestions for the ways they can improve their
functioning in this field. This project makes aware about company and its position.

The first chapter contains a brief introduction about the backgrounds of dairy industry,
emerging trends in dairy market, its market size and growth, major players present, future
prospect of dairy industry and brief introduction about National Dairy Development Board.
further a brief introduction about the company is
 CHAPTER 1
INTRODUCTION

BACKGROUND

Indian dairy sector contributes the large share in agricultural gross domestic products.
Presently there are around 70,000 village dairy cooperatives across the country. The co-
operative societies are federated into 170 district milk producers unions, which is turn has 22-
state cooperative dairy federation. Milk production gives employment to more than 72mn
dairy farmers. In terms of total production, India is the leading producer of milk in the world
followed by USA. The milk production in 1999-00 is estimated at 78mn MT as compared to
74.5mn MT in the previous year. This production is expected to increase to 81mn MT by
2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT while rest is from
other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India
accounts for more than 13% of the total world output and 57% of total Asia's production. The
top five milk-producing nations in the world are India, USA, Russia, Germany and France.

Of the three A's of marketing - availability, acceptability and affordability, Indian dairying
is already endowed with the first two. People in India love to drink milk. Hence no efforts
are needed to make it acceptable. Its availability is not a limitation either, because of the
ample scope for increasing milk production, given the prevailing low yields from dairy cattle.
It leaves the third vital marketing factor affordability. How to make milk affordable for the
large majority with limited purchasing power? That is essence of the challenge. One practical
way is to pack milk in small quantities of 250 ml or less in polythene sachets. Already, the
glass bottle for retailing milk has given way to single-use sachets, which are more
economical. Another viable alternative is to sell small quantities of milk powder in mini-
sachets, adequate for two cups of tea or coffee.
Emerging Dairy Markets

 Food service institutional market: It is growing at double the rate of consumer

market
 Defense market: An important growing market for quality products at reasonable
prices
 Ingredients market: A boom is forecast in the market of dairy products used as raw
material in pharmaceutical and allied industries
 Parlour market: The increasing away-from-home consumption trend opens new
vistas for ready-to-serve dairy products, which would ride piggyback on the fast food
revolution sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of modernization,
would have a place in the sun of prosperity for many decades to come. The one index to the
statement is the fact that the projected total milk output over the next 15 years (1995-2010)
would exceed 1457.6 million tonnes, which is twice the total production of the past 15 years!

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at
Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus
states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in
these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production. 70's,
under Operation Flood, production growth increased significantly averaging
Milk production grew by a mere 1% pa between 1947 and 1970. Since the early over 5% pa.
About 75% of milk is consumed at the household level, which is not a part of commercial
dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most
consumers. In reality however, it poses a higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food, malted food,
condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder
including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is
at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT
respectively in the same year.

Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives
have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in
Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J
K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a
leading player in the sector has turned bankrupt and is facing liquidation.

Export Potential

India has the potential to become one of the leading players in milk and milk product exports.
Locational advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located
close to India.

Low Cost of Production: Milk production is scale insensitive and labour intensive. Due to
low labour cost, cost of production of milk is significantly lower in India.

Quality: Significant investment has to be made in milk procurement, equipments, chilling

and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it
up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over
the world.
Future Prospects

India is the world's highest milk producer and all set to become the world's largest food
factory. In celebration, Indian Dairy sector is now ready to invite NRIs and Foreign investors
to find this country a place for the mammoth investment projects. Be it investors, researchers,
entrepreneurs, or the merely curious – Indian Dairy sector has something for everyone.

Milk production is relatively efficient way of converting vegetable material into animal food.
Dairy cows buffaloes goats and sheep can eat fodder and crop by products, which are not
eaten by humans. Yet the loss of nutrients energy and equipment required in milk handling
inevitably make milk comparatively expensive food. Also if dairying is to play its part in
rural development policies, the price to milk producers has to be remunerative. In a situation
of increased international prices, low availabilities of food aid and foreign exchange
constraints, large-scale subsidization of milk conception will be difficult in the majority of
developing countries.

National Dairy Development Board

The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmers and activities seek to
strengthen farmer cooperatives and support national policies that are favorable to the growth
of such institutions. Fundamental to NDDB's efforts are cooperative principles and
cooperative strategies.

An institution of national importance

Due to very wide dispersal of producing and consuming units of milk, the unorganized sector
continues to dominate the milk marketing in India. However, the market structure for milk is
constantly changing. The organized sector now handles above 20% of the milk output in the
country. The cooperative sector accounts for nearly 50% of this. There are over 1.10 lakh
milk producers cooperatives federated into district milk unions and state dairy federations,
which have organic links with the Mother Dairy at the nation level. It is hearting to note that
the milk producers in the Anand modal of milk production get net of intermediation, about
60% of the final price. In other basic foods, the returns are as low as 30% of the final price.
NDDB supports the development of dairy cooperatives by providing them financial
assistance and technical expertise. Over the years, brands in milk products created by
cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF),
Vijaya (A.P.), Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala) and
Gokul (Kolhapur) are among those that have earned customer confidence. The Dairy
Cooperative Network i) include 170 milk unions ii) operates in over 338 districts iii) covers
nearly 1,08574 village level societies iv) is owned by nearly 12 million farmer members.

Milk production

 India’s milk production increased from 21.2 million MT in 1968 to 88.1 million MT
in 2003-04.

 Per capita availability of milk presently is 231 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 percent growth
in population; the net increase in availability is around 2 percent per year.

Marketing

 In 2003-04, average daily cooperative milk marketing stood at 148.75 lakh liters;
annual growth has averaged about 4.2 percent compounded over the last five years.

 Dairy cooperatives now market milk in about 200 cities including metros and some
550 smaller towns.

 During the last decade, the daily milk supply per 1,000 urban consumers has
increased from 17.5 to 52.0 liters

Innovation

 Bulk vending – saving money.

 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. 880 billion.

 Dairy cooperatives generate employment opportunities for some 12 million-farm

families.

In sum, NDDB is a unique example of an organizational innovation with a focus on human

resource and co-operative development in India. By placing technology and professional
management in the hands of the village societies it has helped to raise the standard of living
of millions of poor people. These processes prove that true development of the people and
this could be achieved through putting the instruments of development in the hands of people.

Constitution

The National Dairy Development Board has been constituted as a body corporate and
declared an institution of national importance by an Act of India's Parliament.

The National Dairy Development Board -- initially registered as a society under the Societies
Act 1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed and
registered under the Companies Act 1956, by an Act of India's Parliament - the NDDB Act
1987 (37 of 1987), with effect from 12 October, 1987. The new body corporate was declared
an institution of national importance by the Act.

Aims and Objectives of NDDB

Dairy Development Programmed in State at raising the levels of income of their doors, as
well as providing good quality milk and milk products to consumers, Particularly of the urban
areas at a reasonable price. Dairying also Provide an effective supplement to agriculture,
especially for the weaker sections of the society in the rural areas. Adequate provision has
been made for technical and attendant services such as artificial insemination, animal health,
fodder seeds and nutritive cattle food.
Objectives of NDDB

 Evaluation of standard of quality of milk and milk product to be marketed by

Federation.

 To provide encouragement incentive on production, Procurement, Processing and

marketing activities of milk product for the economic development of farmer
community.

 To encourage market and R & D programmes.

 To help member milk unions in technology administrative, financial assistance,

 To arrange collection storage and transport for milk and milk products.

 To encourage activities related to development and extension of dairy industry to

improve the economic development of milk producers and dairy industry.

 To establish collection and refrigeration centers, liquid milk units and processing
facilities for distribution and sale of items purchased from various sources.

Dairy Co-Operatives

Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which
federate into 15 State Cooperative Milk Marketing Federations.

The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy
Cooperatives, as producer-owned and controlled organizations. NDDB supports the
development of dairy cooperatives by providing them financial assistance and technical
expertise, ensuring a better future for India's farmers.

Over the years, brands created by cooperatives have become synonymous with quality and
value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have
earned customer confidence.
Some of the major Dairy Cooperative Federations include:

Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)

Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)

Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF)

Karnataka Cooperative Milk Producers' Federation Ltd (KMF)

Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)

Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)

Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)

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)

 REGIONAL CONTRIBUTION TO MILK PRODUCTION

Source: NDDB / NIANP 2003

PATTERN OF MILK UTILIZATION BY DIFFERENT SECTORS

Source: NDDB / NIANP 2003

 CHAPTER 2
COMPANY PROFILE AND SWOT ANALYSIS

2.1 History

Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a
wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy
markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice
creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits &
vegetables, frozen vegetables and fruit juices at a national level through its sales and
distribution networks for marketing food items. Mother Dairy sources significant part of its
requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits
and vegetables from farmers / growers associations. Mother Dairy also contributes to the
cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils
by undertaking to nationally market all Dhara products. It is Mother Dairy’s constant
endeavor 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 and;

(b) Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.

At Mother Dairy, processing of milk is controlled by process automation whereby state-of-

the-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.
Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004
(EMS) certified organization. Mother Dairy has Certificate of Approval from Export
Inspection Council of India also. 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.

Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets of
Mother Dairy.

The company’s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today boasts of
approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures and
markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk,
Lassi & Flavored Milk and most of these products are available across the country.

The company markets an array of fresh and frozen fruit and vegetable products under the
brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than
20,000 retail outlets in various parts of the country. Fresh produce from the producers is
handled at the Company’s modern distribution facility in Delhi with an annual capacity of
200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in
Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a
100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international
market. With increasing demand another state-of-the-art fruit processing plant has been set up
at Bangalore with fruit handling capacity of around 250 MT per day.

Mother Dairy has also been marketing the Dhara range of edible oils for the last few years.
Today it is a leading brand of edible oils and is available across the country in over 2,00,000
outlets. The brand is currently available in the following variants: Refined Vegetable Oil,
Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard
Oil and Filtered Groundnut Oil. Mother Dairy has also launched extra virgin Olive Oil under
the Daroliva brand.
Mother Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to
deliver a range of delicious products and bring a smile on your face. In times to come,
Mother Dairy shall strive to remain one of India’s finest food companies.

Mother diary is the largest liquid milk plant in Asia. It began on 4th December 1974 under the
Operation Flood program of the National Dairy Development Board. It began with the supply
of 40 liter milk that day and rest is history. In Delhi alone 50-55 lakh liters of milk is
consumed daily. Mother Dairy supplies around 20 lakh liters per day. The target of Mother
Diary is also to achieve clean milk production by 2010. The production of milk also to be 100
million tonne per annum. The current supply is 80million tonne litre per annum. At Mother
Dairy, processing of milk is controlled by process automation whereby state-of-the-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. Mother Dairy,
Delhi has been awarded ISO 9001 :2000 (Quality Management Systems), HACCP,2002 RvA
(Food Safety Management Systems) and ISO 14001 :2004 (Environmental Management
Systems) Certifications. Moreover, its Quality Assurance Laboratory is Accredited as per
ISO/IEC 17025 :1999 by National Accreditation Board for Testing and Calibration
Laboratories, Department of Science and Technology, Government of India. The main
challenge before dairy cooperatives is to be able to quickly adapt to a rapidly changing
domestic and world economic order, and with the WTO in place, not only hold its own in this
country but become a regional force! by focusing on strengthening the Marketing, Sales and
Distribution of the dairy sector in India and Mother Dairy has been identified as the vehicle
for driving and realizing this strategy.

The strategy is being operationalized through the formation of joint ventures between Mother
Dairy and the State co-operative federations. The joint venture companies would take on the
responsibility of driving the ongoing business of marketing, sale and distribution of the State
federation in a more organized, professional and efficient manner.
2.2 Vision, Mission and Objectives of the Company

Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The
co-operative is also expanding its product portfolio further to match rival offerings So while
the product portfolio has been growing, Mother Dairy has plans for reach out to newer
markets - but the strategy here is more product-specific.

2.3 Organizational Structure/ Management Hierarchy

2.4 Products and Brands

Mother Dairy Fruit &

Vegetable Pvt. Ltd

Mother Dairy Safal Dhara

MILK FRUITS REFINED OIL

DAIRY VEGETABLES FILTERED OIL

PRODUCTS

ICE CREAM
 MOTHER DAIRY

Milk Dairy products

Ice cream
 Bulk vended  Dahi
milk  Mishti doi  Fruit classics
 Poly packed  Lassi  Indian classics
milk  Chach  Western
 Ultra-heat  Probiotic classics
treatment milk drink  Bricks Bars
 Flavored  Cones
milk  Ice candies
 Paneer  Kulfis
 Butter  Cassattas
 Cheese  Cups
 Ghee  Sugar free
 Fruit yogurt  Fruito lics
 Sweets  Ice cream cake
 Whitener
 Cream
 Shake

SAFAL

FRUITS VEGETABLES
 Juices and drinks  Frozen vegetables
 Jams and marmalade  Ketchup and puree
 Pickles
 Unpolished pulses
Outlets

Mother Dairy products are available in over 5000 numbers of outlet

out of which about 680 are exclusive Mother Dairy booths. Mother
Dairy Booths are strategically located all across Delhi and NCR,
making it convenient for you to pick up your daily requirement of
Milk, Flavoured milk, Butter, Dahi, Lassi...mouth watering Ice
Creams. So go ahead, check out the outlet nearest to you.

Major Competitors

Amul

Amul is one of major competitor of mother dairy in ice cream business. For its ice-cream
GCMMF had invested in increasing its milk capacity. The cooperative also planned to
expand its production facilities beyond Gujarat to service other regions in India. GCMMF
bought an ice-cream manufacturing unit in Nagpur and installed a dairy unit alongside.
Through this unit, Amul extended its milk supply to over 10 cities spread over Rajasthan,
Madhya Pradesh and Maharashtra. Amul also focused on its supply system. Efforts were on
to ensure greater availability of Amul ice-cream at pushcarts and small outlets. The company
felt that availability was the most important factor in ice cream sales. Thus, Amul ice-cream
could be found in ‘just around the corner shops,’ local STD booths, local kirana shops,
chemists and bakers, who stocked the ice-cream in deep freezers.

HUL – Kwality Wall’s

Kwality Wall’s of HUL is another main competent of Mother Dairy. Kwality Wall’s was
launched in 1995 as HUL’s master brand for ice creams. With in depth knowledge of the
Indian market and Unilever’s state of the art technology, Kwality Wall’s has been delivering
superior quality products under its international brands. HUL started by merging six existing
ice cream brands in the country and then launched Kwality Wall’s range of ice cream and
frozen desserts. Kwality, the original Indian company, was founded in 1956, and was the first
in the region to import machinery for the mass production and sale of ice cream on a
commercial scale. In 1995, in view of the growth potential of the frozen confections market,
Kwality entered into an agreement with Lever, and has since been known by its current
umbrella name. At the same time, other brands acquired by Hindustan Lever, such as
Gaylord-Milkfood, were phased out in favor of promoting the Kwality Wall's brand.

Jaipuria Group- Cream bell

Cream Bell Ice-Cream launched by Jaipuria Group in various parts of India. Gained
recognition in very short span of time and now is among the top 5 brands across India. The
JAIPURIA GROUP is one of the top business houses in India, headquartered in New Delhi,
India. It is quickly establishing itself as a pan Asian group with its operations already starting
in Sri Lanka, Singapore and Indonesia. It has business interests in manufacturing, processing
& distribution of Aerated Water, Beer, Ice Creams, Bread and Pizzas. It is also present in
diverse fields of IT, Printing, Real Estate, Industrial Water Meters, Education, Power and
Coal mining.

Vadilal

VADILAL GROUP had its humble beginning, more than 95 years ago, when its founders
started manufacturing Ice-cream with a hand cranked machine. Today it is a diversified
Business Group with major interests in Ice-creams, Food Processing, Real Estate
Development and Specialty Gases. Head Quartered in Gujarat, the most industrialized State
in India, the Group had a turnover (1998-99) exceeding Rs.1500 million. Major companies of
the Group are listed in several Stock Exchanges of. India. The Group has a large investor
base and its brand name "Vadilal" commands an excellent equity. The "Vadilal" philosophy
of providing its customers with quality products and services at affordable prices has resulted
in the brand being a household name in India.
2.6 Future Plans

The marketing of MOTHER DAIRY products is monitored and affected through their six
regional marketing offices located at Delhi, Rampur, Delhi, Merrut and varanashi & Kolkata.
A regional manager (Marketing) who has a certain area of office and also one warehouse
located in the above towns.

Products are transferred from General Manager (Marketing) at the head office to the stockiest
to through the C&F agent and around their respective regions.

Regional Manager is assisted in his marketing function by team of sales Force who basic task
is the call on the retailer, book order increase the no. of retailers and study competitive
environment. The entire marketing operation monitored at the head office level under the
supervision of the General Manager (Marketing) through regular reporting feedback received
from the head office marketing staff that makes regular intervals at the head office.

Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest
dairy development program launched to make India a milk sufficient nation. Today, Mother
Dairy manufactures markets & sells milk and milk products including cultured products, ice
creams, paneer and ghee under the Mother Dairy brand. The Company also has a diversified
portfolio with products in edible oils, fruits & vegetables, frozen vegetables, pulses,
processed food like fruit juices, jams, etc. to meet the daily requirements of every household.

The Company over the last many years has created a market leadership position for itself in
branded milk segment in Delhi & NCR through a robust network of its booth and retail
channels. It has also expanded its reach to other regions in North, South, East and West with
its offering of Milk and Milk products pegging it among the few companies to own such a
vast channel of distribution in India.

Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004
(EMS) certified organization. Quality of milk is of paramount importance for the company
and hence it has invested extensively in installing hi tech automated machines to ensure high
product quality/reliability and safety.
Safal, F&V arm of Mother Dairy was the first Company to organize the fruits and vegetables
business in India. Today Safal is the market leader in organized fruit & vegetable retail
business in Delhi NCR and operates the largest number of F&V Stores in Delhi NCR and has
significant presence in Bangalore. Safal was also the first brand in India to launch frozen
vegetable in mid 90s. Over the years, the brand has gained significant customer support and
has become a household brand with market leadership and presence across the country. Safal
also has a state of the art plant in Bangalore which produces and sells around 23000 MT of
aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in food
processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has a prominent
presence across 40 countries viz., USA, Europe, Russia, Middle East, Asia and Africa and
exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp &
Concentrate, Frozen Fruits & Vegetables, etc.

Mother Dairy is also present into edible oils segment under the brand name Dhara which was
launched under the 'Operation Golden Flow' program of NDDB as a market intervention
program to address a larger cause of the Indian farmers & consumers. Trust, Purity and Taste
are the hallmarks of Dhara cooking oil.

The corporate tag line of the latest brand campaign - Happy Food Happy People - captures
the essence of what the Company stands for.
Recent Awards and Recognition

Commendation certificate for significant achievement in food safety

Award presenter: CII National food safety award 2015
Award for: Pilakhuwa unit

Large food businesses – Dairy of the year 2015

Award presenter: CII
Award for: Junagarh unit

Ice award 2015

Award presenter: Global cold chain alliance (GCCA) along with DANFOSS, supported by
‘Ministry of agriculture’
Award for: First position in the category of Best Maintained Cold Storage

India’s most trusted brand awards 2015

Award for: India’s Best Frozen Products Category

Brand excellence award

Award presenter: ABP news
Award for: Brand excellence award in FMCG sector (food and beverages)

Greentech safety award (gold trophy) 2015

Award presenter: Greentech foundation, Delhi
Award for: Patparganj plant

Ranked 39th among the top 100 best places to work for in India
Award presenter: great place to work institute
SWOT ANALYSIS
 CHAPTER 3

LITRATURE REVIEW

The study of Graf (1986) articulates that the dairy industry is conformed with a myriad of
problems including stagnant prices, increasing costs, surplus, lagging per capita consumption,
subsidized imports, an unfavorable international market and imitation dairy products United
States consumers are eating more fat than ever, but they are eating less animal fat. The shift
to imitation dairy products is reflected in dairy product surpluses and resulting downwards
pressure on dairy product prices. The imitation product that threatens that dairy industry most
is imitation cheese. Average retail prices for various types of imitation chess are 16 to 32 %
lower than natural cheese prices.

The following strategies are recommended to counter the imitation problem

1. Reduce price advantage of imported casein through negotiations, to reduce export

subsidies
2. .2. Work for clearer, more S Ayyappa Naik Nenavath, International Journal of
Engineering, Business and Enterprise Applications, 7(1), December 2013- February
2014, pp. 62-66 IJEBEA 14-145; © 2014, IJEBEA All Rights Reserved Page 63
prominent labeling of imitation dairy products.
3. 3. Put more emphasis on better margin blend products, which compete more directly
with margarine than butter.
4. 4. Use more of the annual promotion funds from farmer check offs for promoting
cheese.

Acharya. R. M (2009) felt that to ensure that buffalo production should be economically
sound and socially satisfying. There is a need for improvement of production, improvement
in methods of handling milk at the source of production and improvement in economic
returns from disposal of milk of live animals for breeding, draught or meat.

Ezhil Raj. R., Safiullah. A. Md., Selvam. S., Annal Villi. R., Senthilkumar. V (2009) says
that Production of dairy tends to be region specific. In the production and marketing of
indigenous dairy products, there exist various cost components. The present study done at
Uthukuli block in Erode district of Tamil Nadu, famous for butter and curd making, aims to
analyze the production of butter in economic term.

Suresh, R (2009) assumed that Milk and milk products undeniably have great potential both
as a source of precious nutrients and as the basis for functional foods that will contribute
substantial health benefits to the consumers. Functional foods have vast potential and are
going to be the mega-trends of the future in dairy products beginning with metro-markets and
gradually spreading to other big cities and towns.

The Indian Dairy Association 2010 (east zone) in association with the Bihar State Co-
operative Milk Producers Federation (Compfed) organized a seminar on dairy development
in eastern India focusing on the impact of natural calamities on milk production. The seminar
also reviewed the giant leap taken by the federation in producing a record quantity of milk
and milk products against all odds.
 CHAPTER 4
OBJECTIVE OF THE STUDY & SCOPE OF THE STUDY

4.1 OBJECTIVE OF THE STUDY

1. Study the product, price, promotion and place mix for the Mother Dairy to
understand the potential of Marketing mix.
2. Study the customer perception towards the Mother Dairy.
3. To offer suggestions for improvement to make it a more productive investment.

4. To study the satisfactions level of Mother Dairy.

4.2 SCOPE OF THE STUDY

 This study is limited to only Delhi city.

 The study would help in gathering the opinion of people who are already using
mother dairy products in terms of quality and satisfaction level.
 The study is carried out to know about the awareness level of people towards Mother
Diary Products.
 This study also helps effectiveness of Advertisement done by Mother dairy.
 CHAPTER – 5
RESEARCH METHODOLOGY

5.1 Population

Respondent Number of respondents

Users 100

5.2 Sources for Data Collection

Primary data collection

Primary Data collection consists of a collection of original primary data. It is often

undertaken after the researcher has gained some insight into the issue by reviewing secondary
research or by analyzing previously collected primary data. It can be accomplished through
various methods, including questionnaires and telephone interviews in market research, or
experiments and direct observations in the physical sciences, amongst others.

The source of primary data for this study was a structured questionnaire.

Secondary data collection

Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organizational records and data collected
through qualitative methodologies or qualitative research.

Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own.

The sources of secondary data for this study were books and websites.
5.3 Sampling Technique

Non-probability Sampling

Sampling is the use of a subset of the population to represent the whole population. Probability
sampling, or random sampling, is a sampling technique in which the probability of getting any
particular sample may be calculated. Non-probability sampling does not meet this criterion and
should be used with caution. Nonprobability sampling techniques cannot be used to infer from the
sample to the general population.

Convenience Sampling

It is a type of non-probability sampling which involves the sample being drawn from that part of
the population which is close to hand. That is, sample populations selected because it is readily
available and convenient, as researchers are drawing on relationships or networks to which they
have easy access. The researcher using such a sample cannot scientifically make generalizations
about the total population from this sample because it would not be representative enough.

5.4 Tools and techniques of analysis

Basic analytical tools, which include Tabular Analysis, Graphical Analysis, Percentage
Analysis.

5.5 Statistical/ Instrument used

 Excel
 SPSS
 CHAPTER 6
DATA ANALYSIS

1. Do sometimes advertisements influence to change your decision regarding the

Dairy Companies?

Answers No. of respondents

Yes 26
No 74

Yes, 26%

No, 74%

Interpretation:

Majority People say advertisements does not influence the decision consumer regarding the
Dairy Companies.
 2. You chose mother dairy based upon –

Answers No. of respondents

Advertisement 31
Availability 24
Brand Name 25
Family and Friend Suggestion 15
Price 5

Price 5

Family and Friend Suggestion 15

Brand Name 25

Availability 24

Advertisement 31

0 5 10 15 20 25 30 35

Interpretation: -According to survey I have found that there are 31 % people choose Mother
dairy products based on advertisement. Where 24 % people say that they opt for availability
of the products.
 1. How would Describe Mother Dairy Ads in general.

Answers No. of respondents

Emotional 14
Boring 10
Funny 34
Informative 22
Creative 20

No. of respondents

34

22
20

14
10

EMOTIONAL BORING FUNNY INFORMATIVE CREATIVE

Interpretation: - 34 % people believe that funny advertisement make them aware about the
products where others believes that informative also plays a major role for the same.
 2. What message you get from Mother dairy ads.

Answers No. of respondents

Trying to create brand awareness 56
Cheaper than competitors 24
High quality 20

No. of respondents
60

56
50

40

30

20 24
20
10

0
Trying to create brand Cheaper than competitors High quality
awareness

Interpretation: - As per survey 56 % people has suggested to create brand awareness ,24 %
has suggested that it should be cheaper from competitors where as 20 % has suggested that
they need high quality.
 3. Do you talk to someone else about Mother Dairy Ads?

Answers No. of respondents

Always 46
Sometimes 34
Never 20

NO. OF RESPONDENTS

46

34

20

No. of respondents

Always Sometimes Never

Interpretation: - 46 % has suggested they are always ready to talk to someone else about
Mother Dairy Ads. 34 % has suggested Sometimes they would like to talk to someone else
about Mother Dairy Ads.
 4. What is the Frequency of using the given mother dairy products?

Products Never Daily Weekly Monthly

Milk 10 80 5 5
Ghee 24 0 16 60
Dahi 5 35 30 30
Ice Cream 15 20 40 25
Lassi 35 25 30 10
Paneer 10 5 35 50

Frequency of using the Mother dairy products

80
70
60
50
40
30
20
10
0
Milk Ghee Dahi Ice Cream Lassi Paneer

Never Daily Weekly Monthly

Interpretation: - According to survey the frequency of using Amul products specially milk,
80% people use on daily basis .where as 60% Ghee products are being used on monthly
basis .as per other products such as Dahi Ice-cream, Lassi and Paneer are being used by
people mostly on week and fortnightly basis .
 5. On the following scale mark the following products per your Satisfaction?

Products Highly Dissatisfied Neutral Highly Satisfied

Dissatisfied Satisfied
Milk 0 5 25 65 5
Ghee 4 16 38 22 20
Dahi 10 22 42 16 10
Ice Cream 6 8 66 5 15
Lassi 16 14 40 15 15
Paneer 10 22 42 16 10

Product Satisfaction
70

60

50

40

30

20

10

0
Milk Ghee Dahi Ice Cream Lassi Paneer

Highly Dissatisfied Dissatisfied Neutral Highly Satisfied Satisfied

Interpretation: -As per multiple survey I have found that the 65 % people are satisfied with
the Milk products ,whereas Ghee Dahi , Ice Cream lassi and Paneer has possess natural
responses as per satisfaction survey .
 7 Which of the Mother Dairy products do you consumer?

Product name Number of Consumers Percentage

FLAVORED MILK 26 52

SWEET CURD 16 32

MATTHA 25 50

MILK CAKE 07 14

ICE CREAM 03 06

PANEER 04 08

Percentage

60

50

40

30 cc

20

10

0
Flavored Sweet Curd Mattha milk Cake ice Cream paneer
milk

The above table shows that 52% consumers are consuming Flavoured milk 48% consumers
are consuming Mattha, 32% SweetCurd, rest 68% do not consume.

8 No. of Consumers perception That Mother Dairy products are worth the paid by
them?
Table no. 3

Think No. of consumers Percentage

Yes 42 84

No. 08 16

Percentage

90

80

70

60

50
Percentage
40

30

20

10

0
Yes No.

The above table shows the 84% consumers perception are with the money paid by them 16%
consumers perception are not worth the money.

9. No. and percentage of consumer buying Mother Dairy products due to Price, Brand name,
Taste, Purity and Quality.
 Table No. 4

Course of buying No. of Consumers Percentage

Price 09 54

Brand Name 08 16

Taste 32 64

Purity 27 54

Quality 34 68

Graph of the Table No. 4

Percentage

80

68
70
64

60 54 54

50

40 Percentage

30

20 16

10

0
Price Brand Name Taste Purity Quality

From the above table it is clear that the mostly 68% consumer buy MOTHER DAIRY
products due to its better quality, 64% due to taste 54% due to it.

10 Consumer percentage about Mother Dairy products when the other brands are liable at
the same quality they switch over?
Table No. 5

Think No. of consumers Percentage

Yes 16 32

No. 34 68

Graph of Table NO. 5

Percentage

80

70

60

50

40 Percentage

30

20

10

0
Yes No.

Above table shows that 32% consumers would switch over when other brands are available in
some quality 68% have no effect.

11 . No. of consumers which want more number of Mother Dairy booths to be set up your
locality?
Table no. 6

Think Consumers Percentage

Yes 44 88

No. 12 12

Graph of Table No. 6

Percentage

100

90

80

70

60

50 Percentage

40

30

20

10

0
Yes No.

Above table shows that 88% consumers want more number of booths set up in their location
^ 12% have no effect.

13.Does presence of any celebrity in the advertisement affects your opinion

about the product?
Answers No. of respondents

Yes 69

No 31

No, 31%

Yes, 69%

Interpretation:

Presence of any celebrity affects on the opinion of consumers about the product.
 1. From where do you get information about the new product?

Answers No. of respondents

Television 42

Newspapers 26

Magazines 11

Internet 6

Peers (Family / Friends) 15

Series1, Peers,
15, 15%
Series1,
Internet, 6,
6% Series1,
Television, 42,
Television
42%
Newspapers
Magazines
Series1,
Internet
Newspapers,
26, 26% Peers
Series1,
Magazines, 11,
11%

Interpretation:

A large size of population is influenced by Television and Newspapers.

 FINDINGS

By the help of analysis & interpretation of the data we come to some findings, these findings are
as follows.

 Mother Dairy has good market position in the regional market. It holds 52% of market
share. This shows the loyalty of customers towards the Mother Dairy.
 Most of the customers are satisfied with the quality & availability of Mother Dairy
products.
 Increasing price of Mother Dairy milk & other products are the big challenge for the
Mother Dairy, because these products are available in the market at the comparatively
lower price.
 Customers want to make the availability of the Mother Dairy products nearer to their
home.
 53% of customers are not satisfied with the price of the Mother Dairy products. They
suggest the reduction in the price of Mother Dairy products.
 Some customers want to make available the Mother Dairy ghee in small volume.
 Among the different Mother Dairy products demand of flavored milk, matha & butter
are high.

CHAPTER 7
CONCLUSIONS, AND SUGGESTIONS
 CONCLUSIONS & SUGGESTIONS

1. More milk ATM should be established to enhance the availability of Mother Dairy milk.

2. Make the customers aware about the Mother Dairy products through different mode of
advertisement.

3. There should be no leakage in the liquid milk & if the exists than these packets should be
replaced.

4. Packing of the liquid milk should be reusable that helps to reduce the price of the products.

5. On line information about the Mother Dairy products & trading should be facilitate by the
company.

6. There should be regular visit for getting the customer feedback about the Mother Dairy
products. This helps to know the changing demand of the customers.

7. For fulfilling the increasing demand of milk the company should try to increase the
production.

8. Company should try to provide discount on bulk purchasing. And also provide some offers
& schemes for sales promotion.
 CHAPTER 8
LIMITATIONS

 Some of the respondents were not cooperative.

 Some respondents were hesitating to give the details.
 Biasness is another limitation that the scope of the survey.
 The reliability and scope of survey greatly relies on the cooperation of the
respondents.
 Due to illiteracy of some respondents, specific information could not be recovered.

Despite these limitations, the project was completed in a smooth manner and the interesting
nature of the project made all these limitations too small to think of.

Bibliography, Glossary

Books:
Websites:

 http://www.google.com
 http://scribd.com
 http://www.wikipedia.org/
 www.nddb.com
 www.pcdf.com

Magazine

 India Today
 Business World
 Annual report of MOTHER DAIRY
Annexure

QUESTIONNAIRE

Name…………………………………. Add…………………………………

Age……………. Contact no………………………..

1. Which of the Mother Dairy product do you consume?

Flavored milk

Sweet curd

Mattha

Ice cream

Paneer

2. What is the off take of product your use ?

Flavored milk (daily/weekly/monthly)

Sweet curd (daily/weekly/monthly)

Mattha (daily/weekly/monthly)
 Ice cream (daily/weekly/monthly)

Paneer (daily/weekly/monthly)

3. On the following scale mark the following products according to your Satisfaction ?

Flavored milk/Sweet curd/Mattha/Milk Cake/Ice Cream/Paneer.

4. Do you think that Mother Dairy products are worth the money paid by you?

 yes
 No.

5. Do you come across problems regarding the non-availability of Mother Dairy

products?

 yes
 No

6. Why do you buy Mother Dairy products?

 Price
 Brand Name
 Taste
 Purity
 Quality

7. If other brands are availale at the same quality, would you switch over ?

 yes
 No

8. Do you want more number of Mother Dairy booths to be set up in your location?
 yes
 No

9. Are you satisfied with the price of Mother Dairy Products?

 Yes
 NO