Market and Distribution Analysis

Market and distribution analysis are two essential components of business planning and
strategy. They help companies understand their target audience, evaluate the competitive
landscape, and develop effective strategies for reaching and serving customers.
Both market and distribution analysis are crucial for making informed decisions that drive
business success. A well-conducted market analysis helps companies tailor their products
and marketing efforts to meet customer needs, while a thoughtful distribution analysis
ensures that products are efficiently delivered to customers through the most appropriate
channels. These analyses play a vital role in shaping a company's overall business strategy
and helping it stay competitive in the market.

Market Analysis:
1. Market Size and Growth Potential: Understanding the size of the market helps a
business estimate its revenue potential. This involves analyzing the total addressable
market (TAM), which represents the maximum revenue opportunity, as well as the
serviceable available market (SAM) that can realistically be targeted. Additionally,
assessing market growth trends helps companies predict future demand and plan
accordingly.

2. Market Segmentation: Dividing the market into segments based on demographics,

psychographics, behavior, or other relevant factors helps businesses target their
offerings more effectively. Each segment may have distinct preferences, needs, and
purchasing behaviors that require tailored marketing approaches.
3. Market Trends and Dynamics: Monitoring trends such as technological advancements,
shifts in consumer behavior, economic changes, and cultural influences provides insights
into potential opportunities and threats. Staying attuned to these trends helps a
business adapt its strategies to remain relevant and competitive.
4. Competitor Analysis: Examining the strengths and weaknesses of competitors provides
insights into their market strategies, positioning, and customer perceptions. This
information helps a business identify gaps in the market that it can exploit or areas
where it can differentiate itself.
5. SWOT Analysis: Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities,
Threats) helps a business understand its internal capabilities and limitations as well as
external factors that could impact its success. This analysis aids in strategic planning by
aligning strengths with opportunities and addressing weaknesses and threats.

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Process of Marketing Analysis:
1. Define Your Objectives
2. Identify Your Target Market
3. Gather Data
4. Conduct Competitor Analysis
5. Analyze Customer Needs and Preferences
6. Identify Market Trends
7. Segmentation and Targeting
8. SWOT Analysis
9. Market Sizing and Forecasting
10. Assess Market Potential
11. Market Positioning
12. Make Informed Decisions

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Distribution Analysis:
1. Channel Selection: Choosing the right distribution channels involves evaluating the
preferences and behaviors of the target audience. For instance, if the target audience
prefers online shopping, e-commerce platforms might be a suitable distribution channel.
If personal consultations are essential, direct sales or retail stores could be more
effective.

2. Channel Partnerships: Collaborating with intermediaries, distributors, wholesalers,

or retailers can expand a company's reach and provide expertise in specific markets.
Partnering with established players can help navigate distribution challenges and
provide access to existing customer bases.

3. Logistics and Supply Chain Management: Efficient distribution requires careful

management of the supply chain. This includes selecting shipping methods, warehousing
solutions, and optimizing inventory levels to minimize costs while ensuring timely
product availability.

4. Inventory Management: Balancing inventory levels is crucial to avoid stockouts that

can lead to missed sales opportunities and overstock situations that tie up resources
unnecessarily. Advanced inventory management systems and demand forecasting help
strike the right balance.

5. Customer Accessibility: Ensuring that customers can easily access products is

essential. This involves optimizing the physical placement of products in retail spaces,
streamlining the online purchasing process, and providing accurate product information.

Process of Disrtribution Analysis

1. Define Distribution Objectives
2. Understand Customer Preferences
3. Inventory and Logistics Assessment:
4. Identify Distribution Channels
5. Evaluate Channel Partnerships
6. Customer Accessibility and Convenience
7. Competitive Landscape
8. Select Distribution Channels
9. Monitor and Measure
10. Continuous Improvement

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Advantages of Market Analysis
Market analysis provides actionable insights that guide a company's strategies, leading to
improved decision-making, customer satisfaction, competitive advantage, and overall
business success. It helps align your offerings with market demand and positions your
business for sustainable growth.
Market analysis offers several benefits to businesses, helping them make informed decisions
and develop effective strategies. Here are some of the key benefits of conducting a
thorough market analysis:

1. Informed Decision-Making: Market analysis provides businesses with valuable

insights about customer preferences, needs, and behavior. Armed with this information,
companies can make informed decisions about product development, pricing strategies,
and marketing efforts.

2. Targeted Marketing: Understanding the demographics, psychographics, and

behaviors of your target audience allows you to create more targeted and relevant
marketing campaigns. This increases the likelihood of resonating with customers and
generate

3. Competitive Advantage: By analyzing the competitive landscape, you can identify

your competitors' strengths and weaknesses. This information helps you differentiate
your products or services, find market gaps, and position yourself as a unique and
valuable option.

4. Effective Product Development: Market analysis helps businesses identify gaps in

the market and areas where customer needs are not adequately addressed. This insight
can guide product development efforts, ensuring that your offerings align with what
customers truly want.

5. Risk Mitigation: By understanding market trends and potential challenges, you can
proactively address risks and pivot your strategies if needed. This helps you avoid
investing resources in products or approaches that might become obsolete or
unprofitable.

6. Maximized ROI: Targeted marketing and product development based on market

analysis can lead to higher return on investment (ROI) by reducing wasteful spending on
irrelevant marketing efforts or products with limited demand.

7. Expansion Opportunities: Market analysis can reveal new segments or markets that
might be underserved or overlooked. This information can guide your expansion efforts
into new geographic regions or customer segments.

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8. Investor Confidence: If you're seeking investors or funding, a comprehensive market
analysis demonstrates that you've done your homework and have a solid understanding
of your target market. This can increase investor confidence in your business.

Advantages of Distribution Analysis

1. Optimized Reach and Accessibility: Distribution analysis helps you identify the
most suitable distribution channels to reach your target audience. This ensures that your
products are available and accessible to customers in the locations and formats they
prefer.

2. Cost Efficiency: By evaluating different distribution options, you can choose channels
that are cost-effective for your business. Efficient distribution reduces overhead costs
and improves profit margins.

3. Faster Time-to-Market: Understanding the most efficient distribution channels

enables you to get your products to market more quickly. This can be crucial in
industries with rapidly changing trends or high competition.

4. Flexibility and Adaptability: Distribution analysis allows you to diversify your

distribution channels, making your business more adaptable to changes in customer
preferences or disruptions in specific channels.

5. Enhanced Customer Experience: Choosing the right distribution channels

enhances the overall customer experience. Customers receive products when and where
they want them, leading to greater satisfaction and potential repeat business.

6. Market Expansion: Distribution analysis can uncover opportunities for expanding

your reach into new geographic areas or target markets. It helps you identify the most
effective ways to introduce your products to new audiences.

7. Effective Partnering: Collaborating with distribution partners, such as wholesalers or

retailers, can help you leverage their expertise and infrastructure. This can lead to
smoother logistics, better market coverage, and improved customer service.

8. Improved Supply Chain Management: A well-thought-out distribution strategy

often involves optimizing the supply chain. This leads to better coordination of
production, transportation, and inventory management.

9. Competitive Edge: An effective distribution strategy can set you apart from
competitors by providing unique delivery options, faster shipping, or more convenient
access to your products.

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10. Risk Management: Diversifying your distribution channels mitigates the risk associated
with relying heavily on a single channel. If one channel experiences disruptions, your
business can still operate through other channels.

INDUSTRY PROFILE

India has the world's largest dairy herd with over 300 million bovines, producing over 187
million tonnes of milk. India is first among all countries in both production and consumption
of milk. Most of the milk is domestically consumed, though a small fraction is also
exported. Indian cuisine, in particular North Indian cuisine, features a number of dairy
products like paneer, while South Indian cuisine uses more yogurts and milk. Milk and dairy
products play a part in Hindu religious practice and legend.
Dairy production in the Indian subcontinent has historical roots that go back 8,000 years to
the domestication of zebu cattle. Dairy products, especially milk, were consumed on the
subcontinent at least from the Vedic period. In the mid- to late 20th century, Operation
Flood transformed the Indian dairy industry into the world's largest. Previously, milk
production in India occurred mainly on household farms.
Dairy industry is a significant segment of the global food and agriculture sector. It
encompasses various activities related to the production, processing, distribution, and
marketing of dairy products derived from milk.
Here is a general profile of the dairy industry:

1. Milk Production: Milk production is the foundation of the dairy industry. Dairy farms
raise cows, goats, sheep, and other animals to produce milk. The quantity and quality of
milk produced are influenced by factors like animal health, nutrition, genetics, and farm
management practices.

2. Dairy Products: Dairy products are derived from milk and include a wide range of
items such as:
 Liquid Milk: Consumed directly or used as an ingredient in various products.
 Cheese: Made by coagulating milk proteins and removing whey.
 Yogurt: Fermented milk product containing probiotics.
 Butter: Made by churning milk or cream.
 Ice Cream: A frozen dessert made with milk, cream, sugar, and flavorings.
 Milk Powder: Milk that has been dehydrated to increase shelf life.
 Condensed Milk: Milk with water removed and sugar added.
 Processed Dairy Products: Cream, flavored milk, sour cream, cottage cheese, etc.

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3. Dairy Processing: Milk from farms undergoes various processing steps to create dairy
products with longer shelf lives and different textures/flavors. Processing involves
pasteurization, homogenization, fermentation, separation, and more.

4. Global Market Trends: The dairy industry experiences various trends influenced by
consumer preferences, health awareness, and technological advancements:
 Plant-Based Alternatives: The rise of plant-based milk alternatives (soy, almond, oat,
etc.) due to dietary choices, lactose intolerance, or environmental concerns.
 Health and Nutrition: Demand for dairy products with enhanced nutritional profiles,
such as high-protein or low-fat options.
 Sustainable Practices: Growing emphasis on sustainable and ethical dairy farming
practices, animal welfare, and reduced environmental impact.
 Premium and Specialty Products: Consumer interest in artisanal and specialty dairy
products, including organic and locally sourced items.
 Convenience and Innovation: Ready-to-eat dairy snacks, innovative packaging, and
functional dairy products (probiotic-enhanced, fortified) gaining popularity.

6. Global Players: The dairy industry is served by both multinational corporations and
smaller regional companies. Some well-known global dairy companies include Nestlé,
Danone, Lactalis, Fonterra, and Arla Foods.

6. Challenges: The dairy industry faces several challenges:

 Fluctuating Milk Prices: Dairy farmers often experience price volatility due to supply
and demand imbalances.
 Animal Welfare Concerns: Ethical treatment of animals is increasingly important to
consumers, leading to scrutiny of farming practices.
 Sustainability: Addressing the environmental impact of dairy production, including
greenhouse gas emissions and water usage.
 Health Concerns: Consumer perceptions about the health effects of dairy
consumption can impact demand.

6. Regulations and Standards: Dairy production and processing are subject to various
regulations regarding food safety, labeling, animal welfare, and environmental impact.

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 COMPANY PROFILE

We are a business house from Central India with a standing of over five decades in Industry
and now with a committed vision on Rural farming, Dairy and Cattle.
Our aim is to alleviate the farmers of Chattisgarh on cow rearing and their well-being for.
This endeavor of ours, we believe will create an atmosphere of improved rural livelihood
linked with Dairy farming.
Vachan brand of milk and milk products aim to be the link between the farmers’ livelihood
and health conscious consumers of milk and milk products. And therefore, we differentiate
on the aspects of good and healthy products to customers linked to the rural farmers and
their well-being.
Our aim is to return back to the society from where we grew and to ensure chain of growth.

VISION:
 Service to Rural farmers
 Committed to consumers on quality milk and milk products
 Become valued partner and trustworthy.

MISSION:
 Develop the best eco-system of milk
 Adhere to the best industry practices to ensure quality of products
 Worlds' best dairy technology and practices.

VALUES:
 Quality: We are committed to quality of our products, services and business ethics.

 Innovation: Innovation is ingrained in our team who continuously changes the status
quo.

 Integrity: Integrity is naturally with us

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 Community : We are devoted to serve, lead and educate the society, in which we live,
and are committed to agriculture community in which we operate.

SARDA DAIRY MANAGEMENT TEAM

1. PADAM KUMAR JAIN (Director)

Mr. Padam Kumar Jain born on 06th June, 1963, is a Fellow Member of the Institute of
Chartered Accountants of India and an Associate Member of the Institute of Company
Secretaries of India. Mr. Jain has an experience of nearly 28 years in the field of finance,
accounting, Costing, Secretarial, taxation and corporate laws.

2. PANKAJ SARDA (Director)

Pankaj Sarda, born on 24 October has completed his Bachelors in Industrial Engineering
from Nagpur University, Nagpur, MH, India in 2001 and Masters of Science in Industrial
Administration from Purdue University, USA in 2004. He has more than five years of industry
experience.

3. SAURABH RATHI (Director)

The key managerial person Mr. Saurabh Rathi, who happens to be a relative of the Chairman
Mr. Kamal Kishore Sarda, did his B.Sc. (Horticulture) from Indira Gandhi Agriculture
University and got JRF AIEEA cleared with All India Ranking No.1 to get admission or M.Sc. in
Vegetable Breeding in Indian Agriculture Research Institute (PUSA), New Delhi in 2005. He
did his M.Sc. in 2007. He completed one year practical training in Namdhari Seeds Pvt. Ltd.,
Bangalore. Thereafter, he joined the company in the year 2008- 09 to take care of its
agricultural operations. Mr. Saurabh Rathi also attended International Vegetable Training
Course of about one month’s duration held by AVRDC – The World Vegetable Center,
Taiwan in 2011. He was promoted to the position of a Director in July, 2011. He also won
the Best Farmer Award from the Govt. of Chhattisgarh for the financial year 2013-14.

4. VENKAT RAM (Independent Non-Executive Director)

Mr. Venkat Ram, born on 31st March, 1961 has done his post Graduate Diploma in Rural
Development Management with specialization in Marketing. He has over 35 years of strong
management career providing leadership, focused mission building, strategic planning and
compelling client value in the areas of managing, administration and communications with
among the best companies like G.C.M.M.F. Ltd, (AMUL), Modi Cement Ltd., The Associated
Cement Companies Ltd., Advani Oerlikon Ltd. and Raipur Alloys and Steel Ltd.,etc.''

5. H.K. TAMRAKAR (Senior General Manager)

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Hemant Kumar Tamrakar, born on August 26th, 1966, is an Engineering graduate (Electrical
Engineeing) from NIT, Raipur (formerly known as Government Engineering College), Master
of Business Administration and Chartered Engineer. He has a vast experience spread over 29
years in Engineering, Project and Management. He is leading Sarda Dairy and Food Products
Ltd., in the capacity of Senior General Manager.

ROLES AND RESPONSILBILITIES

1. Market Research: Conduct thorough market research to gather data on customer

preferences, behaviors, trends, and competitor activities.
2. Data Analysis: Analyze collected data to identify patterns, trends, and insights that
inform marketing strategies and decision-making.
3. Segmentation and Targeting: Divide the target market into segments based on
demographics, psychographics, and other criteria. Determine the most promising
segments for targeting.
4. Competitor Analysis: Analyze competitors' strengths, weaknesses, strategies, and
market positioning to identify opportunities and threats.
5. Market Trends Analysis: Monitor and analyze market trends, technological
advancements, and changes in consumer behavior to identify opportunities and
challenges.
6. SWOT Analysis: Conduct SWOT analysis to assess the company's strengths, weaknesses,
opportunities, and threats in the context of the market.
7. Channel Evaluation: Assess different distribution channels and their suitability for
reaching the target audience effectively.
8. Logistics Analysis: Evaluate logistics and supply chain processes to ensure efficient
product distribution and timely deliveries.
9. Partner Relationships: Build and maintain relationships with distribution partners, such
as wholesalers, retailers, or e-commerce platforms.
10. Reporting: Generate reports and presentations that communicate distribution
strategies, performance metrics, and recommendations to management team.

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 LEARNING OUTCOMES

Number of retailers of milk in

markets Number of Retailers in of dahi

Milk Dahi

Vachan 84 Vachan 66

Amul 124 Amul 110

Mother Dairy 33 Mother Dairy 13

Haldiram 3 Haldiram 2

Gaia 8 Gaia 6
Number of Lassi retailers in
Devbhog 2 Devbhog 2
markets
Dinshaw Lassi 6 Dinshaw 4
Vachan 25
Amul 77
Mother Dairy 7
Haldiram 7
Gaia 3
Devbhog 1
Dinshaw 3
Number of Chaach retailers in
markets
Chass
Vachan 40
Amul 75
Mother Dairy 7
Haldiram 11
Gaia 4
Devbhog 2 Number of Misti Dahi retailers in
Dinshaw 2 markets

Misti dahi

Vachan 36
11
Mother Dairy 7

Dinshaw 3
 Conclusion & Scope of further work

• Strength:- High-quality products, Diverse product portfolio.

• Weakness:- Inconsistency and delay in supply of products to retailers,

Not proper advertisement ( Holdings, Paints ).

• Opportunities:- Try to reach new shops (In our report new orders are
written & we need to acquire those Retailers) & Enhancing customer
service.

• Threat:- Low customer retention.

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