SALES AND PROMOTON OF DHARA EDIBLE OIL

PRODUCTS IN SELECTED AREAS OF DELHI-NCR

MOTHER DAIRY FRUIT & VEGETABLE PVT. LTD.

SUMMER INTERNSHIP PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE PGDM PROGRAMME

SUBMITTED BY

SRAJIT SRIVASTAVA

202132056

SUPERVISORS

Mr. RAHUL TOMAR (AREA SALES MANAGER, DHARA)

DR. SRIPAD KULKARNI (FACULTY GUIDE)

INSTITUTE OF MANAGEMENT TECHNOLOGY,NAGPUR

PGDM BATCH 2021-23

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 ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly influenced my
thinking, behavior, and acts during the internship period.

I express my sincere gratitude to INSTITUTE OF MANAGEMENT TECHNOLOGY,

NAGPUR and MOTHER DAIRY FRUIT & VEGETABLE PVT. LTD. for providing me an
opportunity to undergo summer internship program.

I also extend my sincere appreciation to Dr. Sripad Kulkarni who provided his valuable
suggestions and precious time in accomplishing my project report.

I am thankful to Mr. Rahul Tomar (Area Sales Manager), company guide for his support,
guidance and motivation provided to me during the internship period.

Lastly, I would like to thank the almighty and my parents for their moral support and my friends
with whom I shared my day-to-day experience and received lots of suggestions that improved
my quality of work.

SRAJIT SRIVASTAVA

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 TABLE OF CONTENTS:
TOPIC PAGES
INTRODUCTION AND OBJECTIVES 4-7
CONCEPTS INTRODUCED DURING STUDY 7-8
COMPANY ANALYSIS 8-10
PROJECT DETAILS 11-13
TABLES AND GRAPHS 14-17
SUMMARY 18
RECOMMENDATIONS 19
LEARNINGS 20
LIMITATIONS 21
SCOPE FOR FUTURE IMPROVEMENTS 21
BIBLIOGRAPHY 22

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INTRODUCTION:

FMCG SECTOR
Fast moving consumer goods are products that are sold quickly and at relatively low cost. These
products are non-durable which require little shopping efforts and are sold in packaged form.
FMCG is probably the most classic case of low profit and high-volume business. FMCG
segments can be mainly classified as personal care, household care, branded and packaged food
and tobacco.

The following are the main characteristics of FMCGs from the consumer's perspective:

• Frequent purchase
• Low involvement (little or no effort to choose the item)
• Low price
• Short shelf life
• Rapid consumption

DAIRY INDUSTRY

Today, India is The Oyster‟ of the global dairy industry. It is the highest milk producing country
in the entire globe. Many Indian companies and MNCs are ready to invest in this booming sector
because of expectations of high return and greater consumption. The dairy market in India
reached a value of INR 13,174 billion in 2021. Looking forward, IMARC Group expects the
market to reach INR 30,840 billion by 2027, exhibiting at a CAGR of 14.98% during 2022-2027.
The main purpose of dairy industry is to use innovative technology to increase dairy output so
that it can lead to increase in profit.
In India, majority of dairy production occurs in village where people are engaged in agriculture
apart from that people having small land holdings are also involved. India’s milk product mix is
shown through a graph below:

% of Milk Product Mix

1%
3.50% 2% Fluid milk
6.50%
7% Ghee
46% Butter
6.50%
Curd
28% Khoa
Milk Powder

Fig1.Milk product mix of India

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MOTHER DAIRY

Mother Dairy was commissioned in 1974 and is a wholly owned subsidiary of the National Dairy
Development Board (NDDB). Over the years, Mother Dairy has contributed significantly in its
objectives through a series of innovation and programs. 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.

Mother Dairy Brands:

• Mother Dairy- Milk, cultured products, ice creams, paneer and ghee
• Safal - frozen snacks, frozen vegetables, tomato puree unpolished pulses, Honey
• Dhara – Refined oils, filtered oils

Fig2. Functioning at Mother Dairy

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ABOUT DHARA OILS:

• Dhara’s journey began the golden flow operation was launched by the National Dairy
Development Board (NDDB) to curb the sale of loose oil in 1988. It was then when India’s
first tetra packaged oil brand Dhara was launched.

• Dhara’s journey began under NDDB through a partnership with Gujarat Cooperative Milk
Marketing Federation. Then the brand moved to Dhara Vegetable Oil and Foods Company
Ltd (DOFCO) and finally to Mother Dairy Fruit & Vegetable (MDFVL).

• For over two decades, Dhara cooking oils have been one of India’s most trusted brands,
synonymous with purity, freshness, taste and value for money. A homegrown brand, it has
continuously featured in independent consumer studies as among the most trusted brand in
the edible oil category.

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OBJECTIVES:

PRIMARY OBJECTIVES:

• To promote and place Dhara vegetable oils.

• To increase penetration of Dhara Kachi Ghani Mustard Oil and Soyabean Oil.
• To increase number of outlets selling Dhara products.
• Do competitor analysis.

SECONDARY OBJECTIVE:

• Promote Dhara products through posters and pamphlets.

• Push products that are not performing well in market.
• Solve retailer-distributer disputes.
• Bring transparency between retailer-distributer-company.
• Create brand awareness for Dhara.
• Interact with the final consumers and get feedback.

CONCEPTS OR MODEL INTRODUCED:

PUSH STRATEGY

A push promotional strategy involves taking the product directly to the customer via whatever
means, ensuring the customer is aware of your brand at the point of purchase.
“Taking the product to the customer”
Using this strategy, we promoted Dhara products such as Mustard oil and Soyabean oil to
retailers and insome cases directly to the customers.

PULL STRATEGY

A pull strategy involves motivating customers to seek out your brand in an active process.
“Getting the customer to come to you”
Using this strategy, we promoted Dhara products through various product centric posters and
consumerconnect activities which resulted in increased number of sales and better positioning.

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GUERILLA MARKETING

Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing

tactics that yield maximum results.
We used this strategy to promote Dhara Soyabean Oil and Dhara Kachi Ghani Mustard Oil
which needed more consumer awareness and increased demand.

ACTIVITIES PERFORMED

• Umbrella activity
• Promotion through POP (Point Of Purchase) placement and posters.
• Competitor market survey

COMPANY ANALYSIS

Mother Dairy’s Dhara is one of the biggest edible oil brands in India. In spite of it, Dhara is facing
Cutting-edge competition in Delhi-NCR. Other big players in the region are brands such as Fortune,
Saffola and Nature Fresh.

Mother Dairy uses sophisticated quality assurance instruments such as GLC, GCMS, HPLC,
HPTLC, Rancimat etc. to ensure that Dhara cooking oils are 100% pure. Moreover, the packing
material used for packing Dhara cooking oils is food grade to ensure that the oil packed in it
remains hygienic and fresh for a long period of time.

Dhara Oils Products

➢ Refined Oils:
• Assure refined vegetable oil
• Nourish refined sunflower oil
• Lite n fine refined soyabean oil
• Life refined rice bran oil
• Refined groundnut oil

➢ Filtered Oils:
• Kachi Ghani Mustard Oil
• Filtered refined groundnut oil
• Filtered mustard oil
• Filtered gingelly oil
• Extra virgin olive oil

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EDIBLE OIL MARKET SCENARIO IN DELHI-NCR

Population 30291000

Average per capita 0.5

consumption(ltrs)

Oil market size (ltrs) 630000

Pouch oil market(ltrs) 230000

Bottled oil market(ltrs) 400000

Table1. Overview of Market Size

COMPETITOR SALE – BOTTLE OIL (LTR. PER DAY)

Company liters Sold Market Coverage

Dhara 43000 19%

Fortune 62000 27.4%

Nature 45000 20%

Fresh
Saffola 46000 20.33%

Others 30000 13.27%

Table2. Bottled Oil market-market share

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 Litres sold

30,000 43,000 Dhara

46,000 Fortune
62,000 Nature Fresh
45,000
Saffola
Others

Fig3.Bottled Oil market share

SWOT ANALYSIS OF DHARA IN DELHI-NCR

STRENGTH

• Brand awareness and trust

• Established distribution network
• Wide variety of products
• High quality products
• Rural presence
• Incentives and schemes

WEAKNESS

• Low margin to retailers

• No replacement
• Less human resource
• Less advertising
• Low Market Share

OPPORTUNITIES

• Increasing awareness about Dhara under the brand of Mother Dairy.

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THREATS

• Competitors providing better incentives and offers

• Competitors providing replacement of expired and unsold products

PROJECT DETAILS
For our project, I collaborated with a Distributer Sales Man (DSM) and we were required to visit
selected areas of Delhi-NCR like – Sahibabad, Vaishali, Central Delhi and east Delhi. The main
objective of our project was to promote Dhara products like Mustard Oil, Soyabean oil in these
selected areas Delhi-NCR.

KEY OBJECTIVES OF SIP

The main objectives of our SIP were:

• Increase the penetration of Dhara products.

• Collect retailer’s data.

• data from outlets where Dhara products are currently sold.

• Promote products like Mustard Oil, Soyabean oil and Sunflower Oil.

• Create awareness about existing products through umbrella activity.

• Promotion of Dhara products through POP and posters.

To achieve all these objectives, we perform certain activities in the market which are as follows:

MARKET APPROACH

I had to collaborate with DSM (Distributer Sales Man) and we were required to visit selected
areas of Delhi-NCR.

ANALYSIS OF DISTRIBUTION NETWORK

Dhara’s distribution network consists of Distributers and Distributer Sales Man (DSM). These
DSMs are allocated sales person who supply Dhara products to retailers and roadside vendors
who in turn supplies to the consumers. On the first day of our internship, we identified and
analyzed the network for any route optimization if possible.

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COLLECT RETAILER‟S DATA

In the initial period of our internship, we visited each and every outlet selling Dhara product and
gathered data regarding their current sale and competitor’s product demand in order to study
market scenario.

VISITING RETAILERS AND DISTRIBUTORS

We were required to visit the existing outlets to increase the sales. Our job was also to look for
the placement of other products and variants of Dhara. We also used to convince new retailers to
keep Dhara products and convert them for long term association. Whatever orders we generated
need to be conveyed to distributor. Apart from this we also need to keep in check whether the
orders that we conveyed are being delivered within the stipulated time. Distributors also used to
provide us with the leads of some specific areas where we can convert stores and increase
Dhara’s presence in the market.

PROMOTION OF DHARA SOYABEAN OIL AND MUSTARD OIL

Dhara Soyabean Oil is the flagship products of Dhara. The cost of this product is Rs.175 for 1
litre bottle while the major competitor of this product which is Fortune cost Rs.180 for same
quantity. Dhara holds a big advantage over pricing of this product. Initially there were
complaints regarding the quality of this product but after taking feedback of consumers into
consideration quality of this product was improved and our task was to convince retailers about
the quality of the product and generate repeat orders for the same.
Dhara Kachi Ghani Mustard Oil is another flagship product of Dhara. The advantage of this
product over competitor’s product was that the price of this product is Rs.5-7 less than Saffola
and Fortune. After doing all the carpet bombing for this product next step was to go for surgical
strike i.e. interact with the consumer directly and spread awareness about the product. Consumer
connect activity like umbrella activity was done in areas where competitors product was more in
demand.

BRAND AWARENESS

One of our objectives was to create brand and consumer awareness for Dhara products. Though
Dhara is a big brand there were many things that consumers were not aware of, so in order to
bridge the gap we did umbrella activity and placed POP‟s and distributed pamphlets at existing
and new retail outlets. During Umbrella activity we came to know about various myth people
had about the products. We cleared people’s doubt and even got a suggestion on how the product
and its visibility can be improved, this consumer connects initiative helped us understand
people’s perception of the brand.

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PLACEMENT OF BANNERS
While promoting Dhara products one of our major strategies was to place banners which were
designed in order to attract consumer’s attention. These banners were also designed according to
the color psychology to attract the target group. One such placement of banner was done on the
main road where it is visible from distance. And since it was very hot at that time, retailers
preferred to have umbrella for their as well as consumer’s convenience.

We also distributed pamphlets containing details of all Dhara fresh products to consumer
tospread awareness about the products.

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TABLES AND GRAPHS

As mentioned above, 2 distributors were allocated to us who delivered Dhara products in

theselected areas of Delhi-NCR. The 2 Distributors allocated to us were as follows:

• Om Traders
• Hyper Overseas

The details of products wise sale, number of outlets and new outlets added by us during the
promotion of products is given below:

NEW OUTLETS ADDED FOR DHARA SOYABEAN OIL (Bottled)

Total outlets
Outlets New selling
Distributers Area Total selling outlets Soyabean Oil
Retailers Soyabean added
Oil before

Om Traders Central Delhi (Khari

Baoli Market) 59 41 8 49

Hyper overseas East Delhi and

NCR. 43 13 5 18

25

20

15

10

0
Om Traders Hyper Overseas
Outlets Selling before New outlets added

Fig4.Total outlets selling Soyabean Oil

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NEW OUTLETS ADDED FOR DHARA KACHI GHANI MUSTARD OIL

Outlets New Total outlets

Distributers Area Total selling outlets selling
Retailers Mustard added Mustard Oil
Oil
before
Om Traders Central Delhi
(Khari Baoli 59 41 8 49
Market)
Hyper Overseas East Delhi
and NCR 43 16 7 23

25

20

15

10

0
Om Traders Hyper Overseas

Outlets Selling before New outlets added

Fig5.Total outlets selling Kachi Ghani Mustard Oil

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NEW OUTLETS ADDED FOR DHARA SUNFLOWER OIL

Outlets New Total outlets

Distributer Area Total selling outlets selling
Retailers Sunflower added Sunflower
Oil before Oil

Om Traders Central Delhi

(Khari Baoli 59 24 4 28
Market)
Hyper Overseas East Delhi
and NCR 43 7 4 11

25

20

15

10

0
Om Traders Hyper Overseas

Outlets Selling before New outlets added

Fig6.Total outlets selling Sunflower Oil

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NEW OUTLETS ADDED FOR DHARA RICE BRAN OIL

Outlets New Total outlets

Distributers Area Total selling outlet selling Rice
Retailers Rice Bran added Bran Oil
Oil
before
Om Traders Central Delhi
(Khari Baoli 59 16 5 21
Market)
Hyper East Delhi
Overseas and NCR 43 8 3 11

25

20

15

10

0
Om Traders Hyper Overseas

Outlets Selling before New outlets added

Fig7.Total outlets selling Rice Bran Oil

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SUMMARY

PURPOSE
The purpose of the project was to visit the market and promote and increase the penetration of
Dhara products such as Mustard Oil, Soyabean Oil etc. Also, our secondary objective was to
push products that were not performing well in the market. We were required to increase sales of
existing Dhara distributors and also to add new retailers\outlets.

Our job was to perform following activities:

• Visit retailers.
• Meeting the Distributor.
• Collecting retailer’s data.
• Creating brand awareness.
• Do marketing of existing products.
• Push the products that are not doing well in the market.
• Do competitor analysis.

METHODOLOGY
The Project involved visiting all retail outlets in a given area of Delhi NCR and then convert
them into Dhara selling outlets, especially Soyabean oil and Kachi Ghani Mustard oil. The
project also involved collecting data of each retailer regarding the everyday sales and
competitor’s information. It was meant to give Dhara a competitive advantage in the market
and giving offers and schemes to retailers.

CONCLUSION:
• 44 new outlets were added to the distributors.
• Penetration of Mustard Oil, Soyabean Oil was increased.
• Promotion of new products led to increase in sales.

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RECOMMENDATIONS
• Distributor sell products to different retailers at different prices, this can lead to distributor-
retailer conflicts and also hamper the image or goodwill of the product. Thus, Dhara
should ensure that the products are delivered to market at the same price.

• Many retailers also complain that the schemes and change in margins\costs are not properly
communicated to them by the distributor. Dhara can create a database of retailers, this will
help Dhara to create transparency in the system by informing retailers about new products,
margins,schemes and other updates. This will make the retailers feel as if they are the part of
Dhara family.

• Many retailers have complained that Dhara’s schemes are for a limited period only, because
of which retailer’s margins shrink after some time. Dhara should start giving round the year
schemes like Fortune and Saffola to win retailers.

• People must be hired for a regular market visit. Other brands are quick in making deal with
new retail and thus manage to develop loyalty which becomes difficult to break. Dhara
shouldtry to tap those retailers list.

• Distribution of competitors in the area like Fortune is better than that of Dhara in terms of
time and thus gives an upper edge to competitors over Dhara.

• Dhara should work on the margins to retailers as many retailers don’t want to sell Dhara
products just because the margins are low compared to that of competitors. And in FMCG
market the placements of the product is very important.

• Supply should be regular to all those outlets that lie in the pocket roads and not just in the
outlets which lie on the easily accessible roads.

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LEARNINGS
• We understood the working of the market in the real world, from ground level to managerial
level, how the product is distributed in the market, what is the problem that a company faces
during product placement. What are the challenges faced by retailer, distributor, and company
itself to delight customer for gaining the competitive edge in the market?

• In the case of FMCG products, placing the product in maximum outlets is more important.

• Margin to retailers is a crucial factor as it is the incentive for them to sale the product. Retailers
prefer to sale products with more margin.

• We understood the working of complete supply chain created for the placement of a product in
the market, how distributor works, how an area sales person works, what are the basic demand
of a retailer to a product.

• We observed that, even if the quality and the price of the product is excellent, it has to reach
the customer via the distributor and retailer. In this area, we faced many distributor problems
like late delivery, leakage due to mishandling etc. and if your distributor doesn’t fulfill the
demand of retailers, the product will not take off no matter how good the quality and pricing is.

• We saw that how a Location, Time and Purpose are important factors as a part of planning
Brand Awareness drives. We did umbrella activity in front of the garden area which was very
crowded place in the morning, we got a good response from the customer, and during the
activity, we did live to sample of our product and got the feedback about the product which
helped us to know the customer’s taste and preference about the product.

• As a management student, this was the perfect project for sales and promotion of the product,
we learned that never bring your prejudices while dealing with retailers, understand your
customer from the ground level and you have to think from consumers‟ perspective and not
from your end.

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LIMITATIONS
The limitations of this project were:

• We were assigned just one task of sales; towards the end we were assigned the different task
of doing competitor analysis.
• No strategic marketing task was given, where we had some influence over the company’s
decision.
• No guide or even roadmap was provided to us, so that we could smoothly and quickly find our
ways to retailers.

SCOPE FOR IMPROVEMENTS:

Dhara is still comparatively not the most preferred brand in the market. Also, Dhara is lacking in
creative branding of its products. The quality of the products is one of the best from what market
has to offer but they have to advertise more to the right audience for them to take the leading
position in the market. Still, Dhara has a lot of room for improvements to become a market
leader in an already established market.

• First and foremost is the distribution, Dhara can improve a lot in this area by making
their Distribution channel strong, it will be able to reach even the remotest areas of the
city.
• Dhara can create better relations with the retailers, as many retailers have certain
grievances which should be acknowledged by the company. This will create the good will
of the company among its seller.
• Dhara can initiate a campaign to increase brand awareness, by sponsoring and
conducting certain events in the city.
• Dhara can increase their salesman base so that they can counter competitors and gain
frontedge in the market.

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BIBLIOGRAPHY
• Marketing Management: A south Asian Perspective – Philip Kotler
• Market Analysis data
• Handouts and pamphlets provided by Dhara

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