1.

HLL's Moo (Nutritional Ice Cream) - targeted at Kids

2. As Mother Dairy has competency cold chain distribution as they have Safal brand ( frozen

peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from

Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this

and other brand extensions in the pipeline, Mother Diary expects their turnover by 20% this

year over their present size of Rs. 2800 Rs. Cr.

3. Avian, the cooperative sector milk and dairy products marketer in Tamil Nadu, has

launched a low sugar variant of ice creams in the market. According to an official press

release, the ice cream `without added sugar' is ideal for diabetics and safe for children and

mothers-to-be. This variant has just 80 calories and has 16 mg of sweetener against 8,000

mg of sugar in the traditional ice creams.

4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer

beneficial health effects such as improving immunity and digestion and strengthening

bones. It also introduced a sugar-free ice cream range and is planning a Web site on ice

creams. There two ranges are - Amul Prolife and Amul Sugar free. According to Mr. R.S.

Sodhi, GM Marketing, Amul, Amul hopes to build the pro-biotic range into a Rs 100- crore

brand within the next two-three years. While Amul had earlier tested this market segment

through the launch of an isabgol-enriched ice cream, this is company's first full-fledged

attempt at capturing a good share of the pro-biotic enriched foods market in India. Both the
 brands are available in 125 ml (Rs 15), 500 ml and 1.25 liter (Rs 120) packs in five flavors,

vanilla with chocolate sauce, strawberry, chocolate, shahi anjir and fresh litchi. On the

retail front, it intends to hike its Amul parlors from 600 to 10,000 by 2010

5. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new

range of ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest

private dairy in India, plans to make available its range of dairy products at the

conventional Arun ice cream outlets operated through franchisees. This network will also

be expanded. The new range of outlets will sell ice cream by the scoop, `aggressively

priced' at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A feature of these parlors will

be the wide selection of flavors, over 25 flavors with five new substituted for the existing

ones each month to ensure more variety. The company is investing over Rs 15 lakh in each

of these outlets.

FUTURE OF ICE CREAM MARKET IN INDIA

Ice Cream market will expand with increase in number of malls - HLL has been increasing their

ice cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy
ice creams from hawkers. But now consumer who often visit malls for entertainment prefer to

buy ice creams during different times of the day as it is visible upfront and feel like spending Rs.

50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different

needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up

with products specific for them... with portfolio of flavors, consumer today has plethora of

options at hand to choose from and therefore high probability of buying one more scoop of ice

cream. Also with increasing wallet size and innovative modern retail formats, it has definitely

given a Philip to the ice cream industry in India.

BRIEF INTRODUCTION OF THE COMPANY

Mother Dairy Foods Processing Ltd, presently known as Mother Dairy Fruit & Vegetable Private

Limited, Pratap ganj, Delhi, with a present turnover of about $500 million was set up in 1974

under the Operation Flood Programme. It is now a subsidiary company of National Dairy

Development Board (NDDB). Mother Dairy Foods Processing Ltd offers the following products:

Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavored Milk, Dahi, Lassi,
Mishti Doi, Ghee, White Butter, Table Butter, Cheese, SMP, Dairy Whitener, UHT Milk, Dhara

range of edible oils and the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and

Fruit Juices at a national level, through it's sales and distribution networks, for marketing food

items. Mother Dairy milk (Bulk Vended Milk) is fortified with vitamin A @2000 IU per liter of

milk as a part of social accountability. This program was started with the Mother Dairy, Delhi,

since February 1980and there after Mother Dairy is continuing this program on their own as a

social responsibility without having any financial assistance from the Government as well as

since it is felt that BVM is generally consumed by the middle / lower middle / poor strata of the

society. It is also found that the dietary practices adopted by these classes are deficient in

Vitamin A. 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 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; 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 IS/ ISO-9002, IS-15000 HACCP and IS-4001 EMS certified organization. Moreover, its

Quality Assurance Laboratory is certified by National Accreditation Board for Testing and

Calibration Laboratory (NABL)-Department of Science and Technology, Government of India.

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 supplied 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 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.

QUALITY STANDARDS

Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization.

Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP,

2002 Riva (Food Safety Management Systems) and ISO14001:2004 (Environmental

Management Systems) Certifications. Moreover, National Accreditation Board accredits its

Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration

Laboratories, Department of Science and Technology, Government of India.

 MAIN MANEGERIAL PROBLEM

Mother Dairy fruits and vegetable Pvt. Ltd. Kolkata is selling ice-cream in Kolkata for the last 3

years or so and are facing certain managerial problem.

The main problem that the company is facing is many and some of them are as follows:

1. The distribution system of the company have many flaws and because of that the company

is facing certain problems relating to smooth supply of products to the retailers.

2. The distributor are not supplying the goods to the retailers on time and because of that the

company is not able to have a hold on the market even though the company have a very

good product line and variety.

3. The retailers are not showing any interest in selling the products of the company because of

low margin given by the company in comparison to some its local competitors.

NEED OF THE STUDY

There is very intense competition in the market and the market dynamics are changing every day,

so to sustain in such a competitive market one needs to have a very good Distribution system

because the success and failure of an origination in FMCG market to a large extent depend upon

the effectiveness of the distribution system of the Organization. Under this condition the main

needs of the study are as follows: -

 To assess the effectiveness of the distribution system

 To study the distribution pattern of the competitors

 To assess the taste and preference of the consumers

 To find out the most potential SKU in the market

HISTORICAL BACKGROUND OF MOTHER DAIRY

"Mother Dairy" is the single largest brand of milk in India as well as in Asia, marketing about

2.2million liters of milk per day. Mother Dairy commands 40% market share in the organized
sector in and around Delhi, primarily because of consistent quality and service whatever be the

crisis like floods, transport strike, curfew etc.

Mother Dairy, Patparganj, Delhi, is presently manufacturing& selling around 8.5 lakh liters of

toned milk through bulk vending shops. Mother Dairy, Delhi is an IS/ISO - 9001:2000 and

Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Environment

Management System (EMS) Certified organization. Mother Dairy was the first Dairy in the

country to implement ISO-14031 (Environment Performance Evaluation) project. The

company’s Quality Assurance Laboratory is ISO/IEC-17025:1999 certified by NABL (National

Accreditation Board for Testing and Calibration Laboratory), Department of Science &

Technology, India. This provides assurance to the consumer in respect of Quality and Safety of

products manufactured and marketed by Mother Dairy. The National Dairy Development Board

(NDDB) commissioned Mother Dairy in the first phase of Operation Flood in 1974. Considering

the success of Dairy industry NDDB established Fruit& Vegetable Project in Delhi in 1988 with

"SAFAL" as its umbrella brand. With a view to separating the commercial activities from

Developmental activities, 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. This becomes the holding company of Mother Dairy India Ltd (MDIL) – a marketing

company and Mother Dairy Foods Processing Ltd (MDFPL) – a processing company. MDFPL is

a multi unit company, with units at various locations in India. Mother Dairy, Delhi is one of the

units of MDFPL.
The company is a highly trusted house hold name for its wide range of milk products like Milk,

Flavored Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitener, Ghee etc. The application

for the award is being made for Mother Dairy, Delhi unit. Mother dairy has taken up the concept

of Total Productive Maintenance (TPM) wholeheartedly. The number of employees involved in

KAIZENS and the no. of KAIZENS per employee are very encouraging. Mother Dairy is a

member of CII-TPM Club and the KAIZENS done by Mother Dairy employees have been

selected and presented in 2nd, 3rd, 4th and 5th National Kaizen Conferences held from time to

time during the last three years. Our TPM efforts have resulted in increase in MTBF and

decrease in MTTR, quality improvement, Cost reduction and reduction in accidents. Mother

Dairy has received "Best Productivity Performance" award for three consecutive years starting

from1987-88 to1989-90 and again from1995-96 to1997-1998 from National productivity

Council and a commendation Certificate for Rajiv Gandhi National Quality Award, National

Energy Conservation Award - 2004, Oil and Gas Conservation Award - 2004, Indian Innovation

Award - 2004 and Safety Initiative Award - 2005. Over the years, Mother Dairy has not only

served the daily need of milk of the consumers of Delhi, it has also extended its milk to other

States like Haryana, Uttar Pradesh, Maharashtra, Andhra Pradesh & Gujarat and is expanding its

wings rapidly to serve the masses. Strategically located Mother Dairy booths across Delhi and

NCR make it convenient for you to pick up your daily requirement of Milk, Flavored milk,

Butter, Dahi, Lassi, Cheese, Chaas….mouth watering Ice Creams .The focus is on key markets

for each of the categories. In the curd category, they have been in Delhi for a while now and

launched in Mumbai just three months back. They hold a 60 per cent market share in Delhi, but it

is too soon to gauge where we stand in Mumbai.