MOTHER DAIRY: CREATING

A NATIONAL FOOTPRINT

SUBMITTED BY :- GROUP 2
AKSHIT GARG
AMAN NAGAR
AMRITANSHU GHOSH DASTIDAR
AKANKSHA PALIWAL
AKANSHA PRASAD
 Government has taken several initiative to change the
face of milk production in India
1. No excuse duty for most of the dairy products
2. 2. 100% FDI is allowed through automatic route

1. Mother dairy was a wholly owned

1. High cost of milk
company of NDDB
2. Labour is scarce
2. Four strategic business units-
3. Money spent on dairy products as a
dairy, dairy products, horticulture
percentage of food consumption is 18.85%
and oil were created.
(urban) and 15.47%(rural)
3. Collaboration with government
collective centres

1. Milk assumed a significant role in Indian

1. Mother dairy saves 5.5 to 6 tons of
society, which is largely vegetarian
plastic entering the Delhi market
2. Milk production provides livelihood to
every day
small farmers
2. It's green initiative saves 1700 to s
3. People have become more health conscious
plastic an year
4. 580 million people will be in middle class
3. New packaging portrayed the
by 2025
journey of milk from the farmer's
abode to the customers 1. Robust and stream lined supply
chain
2. COW - container on wheels
3. Token distribution system
PORTER’S FIVE FORCES
 Threat of new entrants
A growing number of domestic as well as multi-national players in the country. License not required to establish in the dairy products firm.

Perishable nature of milk.

 Threat of substitutes
No substitutes are available for milk or milk products.

Mother Dairy products can be substituted with the products of other local vendors who provide milk at a cheaper price.

 Bargaining power of customers

Due to the availability of dairy products from many local vendors, customers possess high bargaining power

Quality, trust, reliability of sources, and ease of access attract more consumers.

 Bargaining power of suppliers

The emergence of milk producer co-operatives, the presence of many traditional milk supplier, an increasing number of dairy farmers, small and scattered milk suppliers
gave much higher bargaining power to the milk suppliers.

 Competitive Rivalry
Varying size of competitors – from small players like Anik, Heritage, Parag Foods, Kwality to big players like Amul(owns a market share of 14.8 percent), Nestle,
Danone, and Hatsun Agro
 SWOT ANALYSIS
STRENGTH
Farmer's Support: In the areas where it operates, dairy and vegetable
farmers are friendly toward the corporation. This guarantees them a
constant and reasonably priced supply of raw materials.
Strong reputation and goodwill: As a result of consistently providing
milk to clients, the business enjoys a high reputation and goodwill.
Customer Satisfaction: The company has a strong relationship with
Indians and, as a result, has a solid understanding of the needs and
sentiments of the Indian client across all of their product categories.
OPPORTUNITIES
Great market potential for consumer goods in India: The
majority of consumer goods are in high demand in India, and
the country's expanding population is driving up demand.
Environment- Environment in India is beneficial because of
the government's support for agriculture, which has led to the
food processing sector receiving many benefits.
WEAKNESS
Localization: Due to the perishable nature of milk, the market
is primarily local. For instance, there is Milma in Kerala,
Nandini in Karnataka, and Tirumala Milk Cooperative in Tamil
Nadu. Thus in order to target wider audiences the organization
needs to enter into other businesses.
Costs associated with distribution: Because Mother Dairy's
goods are perishable, distribution requires the use of freezers
and other equipment. The coverage zones are likewise quite
small in scope. This significantly raises the cost of distribution.
THREATS
Market Entry Barriers- Entry barriers are minimal or
nonexistent in the food processing sector, and conglomerates
and independent providers are equally competitive. Mother
Dairy is facing numerous risks as a result of this.
Competitors - Amul, Britannia, Nestle, and other significant
rivals of Mother Dairy.
OUR ANALYSIS

• Mother Dairy should make plans to expand outside of Delhi and introduce new products in order to enhance
its market share.
• To enhance its market share, Mother Dairy introduced its ice creams, curd, probiotic curd, sweet curd, etc.
Mother Dairy also employs distinctive and superior marketing techniques to those of its rivals. An attempt is
made to maintain a certain age range of clients that is targeted.
• Additionally, while customer pleasure is the primary driver of their growth, profit is the organization's least
crucial goal. With Safal, Mother Dairy has a significant position in the markets for milk and items related to
milk, as well as for frozen fruits and vegetables and edible oils.
• They can anticipate expanding nationally because of their positive political, economic, social, technological,
environmental, and legal implications.