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SYNOPSIS
I started my project on 1st May by observing and understanding the distribution network of
ice cream of renowned distributor in MORADABAD named MANILA ASSOCATES. There
I met to Mr. DAYA KISHAN NAILWAL and asked him to give detailed information about
the execution of the work. He has 2000 lt. deep freezer looking as cold room where ice
creams are stored. The temperature of the room varies between -24 to -28 degree Celsius
which is up to the standard. Four staffs are working over there, one is to look after the
freezers, two are involved in the process of supply & one works as the salesman whose work
is to take the orders from the retailers.
In the next phase of the training new work was assigned to me. I was asked to give the details
of the every day call with the amount of order given by the retailers. That time I was little bit
familiar to the functioning in the market. I assimilate how many calls were productive & how
many were non productive. I also provided required remedial suggestions to the distributor.
There I came to about the actual happening in the market. Overall the seven weeks session,
for me, was the opportunity to manipulate in practical manner, whatever knowledge &
learning I gain in 1st year.
1
CHAPTER-1
INTRODUCTION
Today, there is stiff competition among the business organizations in different industries to
become the market leader.
IT'S a Cold War this summer. And, it promises to be the fiercest ever, the domestic ice-cream
industry has seen. The players are putting there strenuous efforts to capture the market and
for sure this is heating up. Mother Dairy is not far behind in the competition and hence the
primary objective of this project is “finding out and increasing the market share of Mother
Dairy ice-creams in retail sector in MORADABAD AND RAMPUR REGION”.
The project is about understanding the ice cream industry and in particular Mother Dairy.
This helps us in getting practical experience about marketing research, channel distribution,
sales, and developing new strategies. Thus at present we are working with mother dairy to
increase the market share through there Own Your Program Scheme through which there will
be an considerable increase in the share of Mother Dairy ice cream in MORADABAD AND
RAMPUR REGION
NEED OF STUDY
The need of study is to know about Market forces, customer retention, competitor’s price,
Product place and also to know about the strength, weakness, opportunities and threats of
Mother Dairy and for this SWOT analysis is to be done which provide solution to the various
problems and will help to analyze various issues in Ice–cream Industry. This study ( Project)
provides relevant ideas and information which help company to come out from various
problems .
2
Scope Of the Study-
Completion of the project could help marketing team to develop marketing strategies as per
the market condition and demand. Also it will help to understand the current market scenario
and essence of marketing in stiff competition.
My study will help me to:
To analyze the retailer’s perception about Mother Dairy ice-cream.
To find out the competitive edge of the company over the competitors.
To study pricing strategies being followed by competitors.
To study the consumer preferences about different ice-cream companies.
To analyze the consumer’s perception about Mother Dairy ice-cream.
To study of distribution channel of Mother Dairy.
3
CHAPTER-2
COMPANY OVERVIEW
ABOUT MOTHER DAIRY
Mother diary is the largest liquid milk plant in Asia. It began on 4 th December 1974 under the
Operation Flood program of the National Dairy Development Board. It began with the supply
of 40 litre milk that day and rest is history. In Delhi alone 50-55 lakh litres of milk is
consumed daily. Mother Dairy supplies around 20 lakh litres 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
4
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.
Focused approach
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.
Product differentiation
The drivers will be value created through quality of the offerings as well as innovations in
products. This will, of course, be backed by relevant marketing and promotion campaigns.
Smart marketing
On the marketing front, Mother Dairy is trying to take its product campaigns and
communications to a higher platform. For instance, in the case of milk, the campaigns do not
talk about the obvious benefits - milk is good for health, it has calcium and so on - but rather
it targets children and are created around ideas such as "The country needs you, gow faster".
Mother Dairy has been carrying out school programmes - games and activities - involving
Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata as well.
It also runs a gaming website on the character to attract children.
5
Product Range of Mother Dairy:
Mother Dairy has a huge product range and these products have been marketed through retail
network. These products are ICE-CREAMS , Safal Select frozen vegetables, jams, Ketch-up,
Pickle, Mango drink, Fruit Juices, Paneer, Sterilized cream, Butter milk (chhachh), Dhara Oil
etc and some of the new products launched recently are Misthi doi, Dahi, Flavoured Milk,
Lassi, Butter, Pure Ghee, UHT Milk, Dairy Whitner, Cheese
ABOUT MOTHER DAIRY ICE-CREAMS
In 1996 mother dairy came up with its ice-creams. Mother Dairy ice creams are now being
enjoyed across the markets of Delhi/ NCR, Mumbai, Kolkata, Punjab, Rajasthan, UP &
Uttaranchal. Next year, it plans to go south to Hyderabad and Bangalore.
With India's per capita consumption of ice-cream - at 200 ml - being among the lowest in the
world, opportunity for ice-cream marketers is abundant. And mother dairy is all geared up to
take advantages of the opportunities ahead. Mother dairy has a huge variety of ice-creams in
its portfolio, from impulse to take away to gallons. The range will be available at Mother
Dairy booths, retail outlets and push carts.
In the icecream business their major competitors are Amul, Kwality Wall’s, Cream bell and
Vadilal. Among these Amul, Kwality Wall’s are giving neck to neck competition to mother
dairy.
6
But to stay ahead of the competition require special effort. Mother dairy ice-creams strategy
of product differentiation is value created through quality of the offerings as well as
innovations in products. And this is backed by a relevant marketing and promotion
campaigns. At present company claims 65 per cent market share in the ice creams market in
Delhi and the National Capital Region.
A harsh summer, a keenly contested battle, and a pampered consumer. It can't get hotter than
that for the ice cream industry.
Mother Dairy – Delhi was set up by national dairy development board (NDDB) in 1974
under the Operation Flood Programme to take the co-operative vision forward and has built a
strong foundation by consistently achieving its mandate. It is now a subsidiary company of
the National Dairy Development Board (NDDB).
7
National Dairy Development Board (NDDB)
The National Dairy Development Board (NDDB) was created in 1965 to promote finance
and support producer-owned and controlled organization. NDDB’s programmes and
activities seek to strengthen farmer cooperatives and support national policies that are
favorable to the growth of such institutions.
The National Dairy Development Board (NDDB) was founded to replace exploitation with
empowerment, tradition with modernity, stagnation with growth, transforming dairying into
an instrument for the development of India’s rural people. Since its inception, the Dairy
Board has planned and spearheaded India's dairy programmes by placing dairy development
in the hands of milk producers and the professionals they employ to manage their
cooperatives. In addition, NDDB also promotes other commodity-based cooperatives, allied
industries and veterinary biologicals on an intensive and nation-wide basis.
There are virtually 15 major Dairy Cooperative Federations in India, namely:
· 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)
8
· 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)
National Dairy Development Board (NDDB) is the central cooperative board of the country
and was created to promote, finance and support producer-owned and controlled
organizations mentioned above. Mother Dairy of NDDB and Amul of GCMMF are the
leading brand in India.
CONSTITUTION
The National Dairy Development Board (NDDB) 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 the act of India’s Parliament –the
NDDB act 1987 (37 of 1987), with effect from October 12, 1987.
Facts at a Glance
Reach
- Includes 170 milk unions.
- Operates in over 338 districts.
- Cover nearly 108574 village level societies.
- Is owned by 12 million farmer members.
9
Milk Production
- Milk production increased from 21.2 million MT in 1968 to 88.1 million MT in
2005-2006.
- Per capita availability of milk presently in 231 grams per day, up from 112
grams per day in 1968-69.
- India’s 3.8% annual growth of milk production surpasses the 2% growth in
production; the net increase in availability is around 2% per year.
Marketing
- In 2005-2006 average daily co-operative milk marketing stood at 148.75 over
the last 5 years.
- Dairy Co-operatives now market milk in about 200 cities including metros and
smaller towns.
- During the last decade, the daily milk supply to each 1000 urban customers has
increased 17.5 to 52.0 liters.
Innovation
- Bulk- vending- saving money and the environment.
- Milk travels as far as 2200 kilometers to deficit areas, carried by innovative rail
and milk tankers.
- 95% of dairy equipment is produced in India, saving valuable foreign exchange.
Macro Impact
- The annual value of India’s milk production amounts to Rs880
Billion.
ISO CERTIFICATE
Mother Dairy is an IS/ISO-9002, IS-15000 HACCP and IS-14001 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.
10
SOURCES OF MILK, FRUITS, VEGETABLES, OIL SEEDS:
Mother Dairy sources its entire 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.
DAIRY COOPERATIVES
1) Andhra Pradesh Dairy Development cooperative Federation Ltd (APDDCF) -
Vijaya.
2) Bihar State Cooperative Milk Products Federation Ltd (COMPFED) -Sudha.
3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)- Amul.
4) Haryana Dairy Development Cooperative Federation Ltd (HDDCF)- Vita.
5) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF)
Milk time
6) Karnataka Cooperative Milk Producers Federation Ltd (KMF)- Nandini
7) Kerala State Cooperative MILK marketing federation Ltd (KCMMF)-Milma
8) Madhya Pradesh State Cooperative Dairy federation Ltd (MPCDF)- Sanchi.
9) Maharashtra Rajya Sahakari Mmryadit Dugdh Mahasangh (Mahasangh)-
Mahananda
10) Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
11) Pradeshik Cooperative Dairy Federation Ltd (UP) – Parag
12) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) – Verka
13) Rajasthan Cooperative Dairy Federation Ltd(RCDF)- Saras
14) Tamil Nadu Cooperative Milk Producers Federation Ltd(TCMPF)-Aavin
15) West Bengal Cooperative Milk Producers Federation Ltd(WBCMPF)-bens
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Regional state offices
1. Ahmedabad
2. New Delhi
3. Jaipur
4. Chandigarh
5. Noida
6. kolkata
7. cuttack
8. Patna
9. Mumbai
10. Pune
11. Vijaywada
12. Erode
13. Trivandrum
14. Bhopal
15. Bangalore
12
NDDB Structure:
Indian Indian Dairy Dhara MDF& V
Immunological Machinery Vegetable Oil & (P) Ltd,
Hyderabad. Company Ltd Fruits Company Ltd
Anand
MDFPL MDIL
Milk &Dairy Fruits & Vegetables SUB SUB
Products - Fruits & Vegetable Marketing & Marketing &
- Mother Dairy Units. Units, Mangolpuri. Sales for Sales For
- Pikhuwa Dairy. - Fruits Processing - Dairy - Fresh Milk
- Vashi Dairy. Plant, Mumbai. Products. - Fresh Fruits
- Neem Biocide - Ice cream &
Plant, Anand. - Safal. Vegetables
- Ramgarh Unit. - Dhara
Mother Dairy’s Market Share of Ice-cream in MORADABAD AND RAMPUR
Ice-cream market under the brand name "Mother Dairy" has a
36 percent market share in MORADABAD AND RAMPUR
13
Mother Dairy is basically divided into 3 divisions as given as below
- Mother Dairy Fruit and Vegetable Private Ltd- (Holding company)
- Mother Dairy Foods Processing limited - (Processing Company)
- Mother Dairy India Limited – (Marketing and Sales Company)
Mother Dairy Fruit and Vegetable Private Ltd (MDFV)
MDFV (P) LTD, the holding company for all the Mother Dairy group companies, was
incorporated on 24th March 2000 as a wholly owned subsidiary company of the National
Dairy Development Board.
Mother Dairy Foods Processing limited
- MDFPL’s requirements of milk are sourced primarily from the dairy
cooperatives, thereby serving to reinforce- MDFV (P) Ltd basic commitment to
the dairy cooperatives sector. MDFPL also undertakes viable commercial
initiatives in the fields of vegetables, fruit and vegetable unit.
- MDFPL employs state-of- the-art microprocessor technology and complete
process automation for milk processing to ensure high product quality/reliability
and 100% hygiene.
- MDFPL is an IS/ISO-9002,IS-15000 HACCP and IS 14001 EMS
Certified organization
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Mother Dairy India Ltd
- MDIL is responsible for the marketing, sales and distribution of all dairy
products (except fresh milk) under the Mother Dairy brand, Dhara range of
edible oils and the safal range of food products at national and international;
level.
- MDIL will deploy the Mother Dairy brand portfolio consistent with MDFVL’s
guidelines
- It markets the fresh milk and fruit and vegetables in the NCR and select markets.
MFS explores consumption opportunities out of home, thereby targeting a varied range of
customers:
Private Institution
- Star hotels
- Schools
- Office canteens
- Air canteens
- Hospitals
Government Institutions
- Paramilitary Forces
- CSD
- Kendriya Bhandar
15
- Air Defiance Canteen
- Hospitals
- Airports
- Railways
- ITDC
- IRCTC
- Pragati Maidan
It also targets any other opportunities out of home viz. festivals, gatherings, fair etc
Indian Ice cream Market (fact and figures)
Market size - 800 Crores
Ice cream market is growing at 10 to 12%
Ice creams traditionally are low volume business
The Indian ice cream market growth picked up after de-reservation of the sector in 1997. Of
the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs
4.9bn, rest all is with the unorganized sector. Among the major players in this industry
Hindustan Lever has a market share of around 50%, represented mainly by Kwality Walls
brand. Amul with an estimated market share of 35% is rapidly gaining market share and
lastly Vadilal is the player in the national market with 8-9% of the market share.
In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market
for organized sector is restricted to large metropolitan cities. In small towns and villages,
there are thousands of small players who produce ice- creams / kulfis in their home backyard
and cater to the local market. Almost 40% of the ice creams sold in the country are consumed
16
in the western region with Mumbai being the main market, followed by 30% in the north and
20% in the south.
The Indian government adopted the policy of liberalization regarding the ice cream industry
also and it is since then that this sector has shown an annual growth ranging from 15- 20%
per annum for last 1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15- 16bn.
This growth rate is expected to continue for another next 2- 3 years because of lower base.
Indian Ice Cream market can be segmented in three different ways, namely on the basis of
flavors; on the basis of stock keeping units / packaging and on the basis of consumer
segments. On the basis of flavors the market today has a number of flavors like vanilla,
strawberry, chocolate, mango, butterscotch a number of fruit flavors, dry fruit flavors
traditional flavors like Kesar- Pista, Kaju- Draksh etc. The market is totally dominated by
Vanilla, Strawberry and chocolate, which together account for more than 70% of the market
followed by butterscotch and other fruit flavors.
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
17
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.
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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.
Process of Procurement & Distribution of Ice cream
Mother Dairy has manufacturing plants in New Delhi, where the ice-creams are
manufactured. The company has its own fleet of trucks, which are used to transport Ice
cream to the C & F agents. The company takes daily stocks with these agents and fills up the
gap between the required and the prevailing stock. The company decides the level of stocks
to be maintained as per the demand in the market. The factories send their trucks with the
required stock of Ice-creams.
Mother Dairy pays a fixed amount to these C&F agents. This policy is necessary in ice cream
as the seasonal variation is very high. So fixed percentage of unit sales will not work as these
C&F agents incur very high expenses. These C&F agents keep their daily record of their
supplies to the different distributor and thus provide a daily update to the concern managers
in Mother Dairy. The entire exercise of determine the stock and supply level is carried out
19
solely by Mother Dairy and the C&F agent has no role to play in it. However C & F agent act
as a mediator between distributor and Mother Dairy ice cream manufacturing unit.
Distributor’s job is to collect ice creams from the C&F agents and supply it to the retailers
and in some case also to the vending distributors. Thus forms a very important part of the
chain as they argument the physical reach of the company by adding new retailers to their
fold. They also serve as a channel for getting feedback from the market that is the consumers.
They keep the company abreast of the demand pattern in the market as regards which product
is doing well and which is not. The distributors are appointed on the basis of geographic
region as well as the number of retailers.
ENVIORNMENT AND SAFTEY
Mother Dairy, Delhi is committed to the protection of environment by Prevention of
Pollution and continual improvement in their processes and systems to improve
Environmental Performance. The company is ISO14001:1996 (EMS) certified by BVQI.
Mother Dairy was the first industry in country to implement ISO-14031(Environment
Performance Evaluation) project.
The following steps are taken and on going efforts are continuously made as per their
"Management Systems Policy"
• Minimize Waste generation
• Conservation of resources
• Use of renewable energy
• Recycling & re-use
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The Effluent Treatment Plant (ETP) was installed at the inception of the Dairy Plant. The
company complies with applicable regulations and legislations of Delhi Pollution Control
Committee (Department Of Environment, Govt. of NCT of Delhi).
The water consumption has been reduced over the year as a result of the implementation of
following initiatives:
1. Installation of water recuperation system in the year 2001-02 where in the final water
rinse quantity after Cleaning in Place (CIP) is taken in the water recuperation tank for reuse
as the initial rinse in the subsequent CIP operation.
2. In-house water audit is carried out every year and by a continual process of educating the
employees about the importance of water conservation and motivating those to do KAIZENS
directed to reduce water consumption.
3. Water consumption in all the activities in the Dairy is regularly monitored with the help of
data furnished by magnetic flow meters installed at various locations.
4. The Dairy has installed a Solar Plant for hot water generation and solar heat recovery to
the tune of 200 to 250 Mkcal per annum is achieved through it.
5. The Dairy has constructed Rain Water Harvesting by dividing the entire premises into six
zones to harvest maximum possible potential of rain water run-off available in the campus.
Accordingly unit has constructed rain water harvesting structures at the locations that
experience water logging in each of the zones during rainy season. By this unit has achieved
increase in water table ranging from 30 cms to 150 cms in our existing tube wells in the
Dairy.
6. Industrial safety is of paramount importance at Mother Dairy. A Safety Committee headed
by Sr. Manager(Mfg.) as Chairman and members drawn from workmen and officers cadre
from different sections meet regularly to review and initiate safety measures in all the
activities of the Dairy. Number of mock drills is carried out from time to time. Internal safety
audits are carried out to locate unsafe conditions, acts and thorough investigation of accidents
21
if any, strict enforcement of safety rules and procedures including work permit system and
use of Personal Protective Equipment(PPE). The Dairy is member of National Safety Council
and also celebrates safety week every year. The Dairy has ZERO fatal accident since the date
of its inception
AWARDS & RECOGNITIONS
Mother Dairy has received "Best Productivity Performance" award for three consecutive
years starting from 1987-88 to 1989-90 and again from 1995-96 to 1997-1998 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 and 2005, Indian Innovation Award - 2004 and Safety Initiative Award - 2005.
Mother Dairy, Delhi is an IS/ISO - 9001:2000(Quality Management Systems) 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.
22
MOTHER DAIRY PRODUCTS
Mother Dairy markets and sells dairy products under the Mother Dairy brand (like Liquid
Milk, Dahi, Ice Creams and Butter), Dhara range of edible oils and the safal range of
fresh fruits and vegetables, frozen vegetables and fruit juices at a national level, through
it’s sales and distribution networks, for marketing foods.
DETAILS OF PRODUCTS
Safal Products
Juice- Orange
Orange-Apple
Mixed Fruits
Grape
Pickles- Mixed Pickle
Mango Pickle
Red Chili Pickle
Lemon Pickle
Jam- Pineapple
Mixed Fruits
Apple
Orange Marmalade
Squash- Orange
Lemon
Rice- Safal Gold Basmati Rice
Safal Silver Basmati Rice
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Safal Premium Paramal Rice
Safal Drink- Guava
Mango Nectra
Tomato Products- Tomato Puree
Tomato Ketchup
Dairy Products
Butter
Ghee
UHT
Curd
Lassi
Flavored Milk
1. The creamier, tastier butter
It’s delicious. It’s creamy. And it’s so easy to spread. Available in 100 and 500 gram packs.
Mother Dairy is produced under totally hygienic conditions using Mother Dairy’s
wholesome milk.
2. Pure Ghee
Mother Dairy is pure ghee made from buffalo milk and has every quality that you would
look for while purchasing ghee- just the right off-white colour and the typical daana-daana
feel. The formulation developed delivers superior flavor and aroma to the food you prepare
making it the best choice in Ghee. Mother Dairy Ghee is available in one liter and half liter
cartons (known as Ceka and having a special type of lining) and also in one litre tins. All
the packs are carefully packed to ensure that the rich flavour and aroma of Mother Dairy
Ghee gets sealed in and remains intact for you to savour and enjoy.
3. UHT Milk
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Mother Dairy UHT Milk is thick, tasty & completely natural, containing no preservatives.
Regular milk is put through a process known as UHT (Ultra Heat Treatment) that makes
the milk completely germ free. The milk is then packed in a special six layer package that
preserves the milk for up to 120 days without refrigeration. The milk needs no boiling and
can be drunk straight from the pack. The different kind of milk available are
Full Cream
Toned
Double Toned
Token Milk
Skimmed
4. Dahi
Absolutely delicious, with a rich and creamy texture, Mother Dairy Dahi is uniformly
thick, consistent and natural, without the use of any preservatives. Mother Dairy Dahi is
made from pasteurized standardized milk which contains 4.5% milk fat and 10% milk SNF.
Not only does it taste great, it also aids digestion by maintaining balanced micro flora in the
intestine and suppressing the growth of undesirable pathogenic bacteria.
5. Lassi
Mother Dairy Lassi is a tasty and refreshing drink made from pure, nutritious milk. Drink it
either as an anytime snack or as a tasty accompaniment to your food. Either way it’s a great
tasting drink. You can choose from two variants- Sweet Lassi (300 ml) and Salted Lassi
(200 ml), to suit your taste.
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6. Chillz
Mother Dairy Flavored Milk captures all the goodness of Mother Dairy’s pure and fresh
milk combined with the magic of special flavors. Made from Double Toned Milk, and
available in Kesar Elaichi, Chocolate and Vanilla Flavours- these drinks are light and
refreshing and capture the great taste of these unique flavours without being heavy or too
filling. These tasty drinks, available in 300 ml and 500 ml, are perfect for any occasion-
either to savour when you are alone, or to enjoy with family and friends.
ICE-CREAMS
In 1996 mother dairy came up with its ice-creams. Mother Dairy ice creams are now being
enjoyed across the markets of Delhi/ NCR, Mumbai, Kolkata, Punjab, Rajasthan, UP &
Uttaranchal. Next year, it plans to go south to Hyderabad and Bangalore.
26
With India's per capita consumption of ice-cream - at 200 ml - being among the lowest in
the world, opportunity for ice-cream marketers is abundant. And mother dairy is all geared
up to take advantages of the opportunities ahead. Mother dairy has a huge variety of ice-
creams in its portfolio, from impulse to take away to gallons. The range will be available at
Mother Dairy booths, retail outlets and push carts.
In the icecream business their major competitors are Amul, Kwality Wall’s, Cream bell and
Vadilal. Among these Amul, Kwality Wall’s are giving neck to neck competition to
mother dairy.
But to stay ahead of the competition require special effort. Mother dairy ice-creams
strategy of product differentiation is value created through quality of the offerings as well
as innovations in products. And this is backed by a relevant marketing and promotion
campaigns. At present company claims 65 per cent market share in the ice creams market
in Delhi and the National Capital Region.
A harsh summer, a keenly contested battle, and a pampered consumer. It can't get hotter than
that for the ice cream industry”
Sundae Magic
Add a little magic to your day with Mother Dairy’s sensational range of sundaes. A liberal
sprinkling of nuts accompanied by a thick layer of rich sauce makes these sundaes
absolutely irresistible. Available in three exotic flavors- Jamaican Almond Fudge. Coffee
27
Excess and Shahi Meva Malai, these sundaes give you the chance to relish what even the
Nawab of Awadh was deprived of.
No Guilt
The Dietz range has been created to allow you to enjoy the delightful taste and the rich,
creamy texture of ice creams without the guilt of consuming all those extra calories. In fact,
the milk fat content in Dietz is 75 per cent less than that in regular ice creams, making it
ideal for weight watchers. Dietz is currently available in three variants, Mango, Kesar
Bahaar and Butterscotch in 500 ml tubs. Butterscotch flavour is available in a 115 ml. cup
as well.
Kulfi
This traditional Indian delicacy just got better- richer & creamier and with more variety.
Surrender to that all time favorite: Kesar Kulfi or enjoy the richness and abundance of nuts
with Pista Kulfi. A royal treat for those with a taste for traditional delights.
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Cups
A wide range of flavours to enjoy both at home and while on the move. Take your pick
from a variety of flavours like Vanilla, Strawberry, Chocolate, Butterscotch, Choco Chip
etc. Guaranteed to make all those family gatherings and outings extra special.
Fruit Classics
A unique range of premium ice creams in which carefully handpicked fruits blend with
rich, creamy ice cream so that every spoonful that melts in your mouth has a natural taste
of real fruit. Indulge your senses in the mouth watering flavour of delicious fruit with an
added excitement of real fruit pieces. What’s more, it comes in three delectable flavours-
Strawberry Crush, Mango Marvel and Litchi Surprise
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Bricks
Experience take your favorite ice creams home. Just grab a 500 ml or 1 litre Brick. Choose
from a mind boggling range of great flavours. The All time Favorite Vanilla, Strawberry,
Butterscotch, Chocolate and Two in One. The Simply Irresistible Choco Chip, Kesar Pista,
Kaju Kishmish and Kulfi Pista. The New Unique Choco Fudge, Badam Thandai, Shahi
Nazrana and Fruit N Nut and Simply Coffee. A delicious for the entire family.
Lic Lolleez
An all time hit with the kids!! A refreshing and colorful range of ice candies and milk
lollies- they are the perfect solution to the summer heat and add that
extra zing to the winter chill. Try the new Chulbuli & Shararat Lic Lolleez to re-discover
the naughtiness in you.
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CHAPTER-3
OBJECTIVE OF PROJECT
The main objective of the project is to analyze the marketing mix of MOTHER DAIRY and
to increase the market share of Mother Dairy through Own Your Assets (OYA) Program in
retail sector.
The following value additions to the company are
Creating awareness among retailers about the benefits of deep freezers which will
lead to increase in sales of ice cream.
Creating a deeper penetration through regular visit to each and every retailer of
Mother Dairy.
Choosing a specific retail outlet that can be converted into Mother Dairy outlet
through OYA program
Acquiring a brief knowledge about the products.
Movements of the competitor’s product.
Understanding the 4 P’s of marketing in relation to Mother Dairy’s Ice-cream in
Moradabad and Rampur
31
To find out the market share of Mother Dairy’s Ice-cream with other competitors.
Prospective/ new market for capturing majority of market share of Mother Dairy Ice-
cream i.e. how to expand market share?
Factors influencing in New Retailers mind for buying new Deep freezer.
Response of New Retailers to take new Deep freezer (Positive and Negative).
Whether all the New Retailers knows Mother Dairy also has Ice-cream?
What do Retailers looks before opening Ice-cream parlor in their shop?
Ascertain growth opportunities as well as threats.
Give recommendations to Mother Dairy India Ltd. regarding strategic market
positioning of Mother Dairy Ice-cream.
To increase the sale of mother dairy ice-cream by increasing the number of retail
outlets.
To know the customer response about Mother Dairy ice-cream through retailer.
To know the retailer response about Mother Dairy ice-cream whether they are satisfied with
the distributor and the new schemes of Mother Dairy in MORADABAD AND RAMPUR
32
The project undertaken was to know sales & distribution strategies followed by company to achieve competitive edge over major ice-cream players. Basically my research work is divided into three parts:
• Market research.• Analyze distribution channel.• Working procedure.
Market Research
This was the first part of the project. This part deals in visiting a certain market that is
actually allocated to us. The survey will be helpful in understanding the current market
scenario as well as the market share of different brands in the ice cream industry. The main
purpose lies in interacting with the retailers who are into ice cream business and to insight
customer’s intention regarding product. The comments regarding the various brands are
gathered and in particular of mother Dairy. The positives and negatives of each brand are
noted. The issues such as replacement of ice creams, timely information about schemes,
distributor’s service, salesman visits, display boards, stickers and order placed are to be
observed. The basic purpose of market survey was to understand the markets and the pros
and cons of ice cream business.
Analysis of Distribution Network
This is the second part of the project. This part deals in working and understanding the
market that the distributor and the salesman handle. Various issues such as salesman’s visit,
supply status, mode of supply, awareness of promotional activity, display status were
observed. Thus any loophole that exists between the C & F agent and distributor, distributor
and salesman, salesman and retailers can be worked upon and necessary recommendation
should be suggested.
33
Working procedure
Here we have to approach various retail outlets & enquire about problems, complaints,
suggestions etc. As a part of marketing research we also have to collect data in order to find
market share of mother dairy from our sample space. During this period we are in constant
touch with our sales executive and area sales manager and have to submit weekly report
about each market and full information about each shop in those markets. Questionnaire and
observation method was used for collecting the information.
MY OWN CONTRIBUTION
As far as my contribution is concerned I regularly visit to market, used to meet the concerned
person’s like-distributor, retailers and target customers. Initially I segregated the markets
into heads like- individual retail shop, Ice-cream parlors, bakery/sweet shops, restaurants, to
get clear view of market in retailer’s perception.
Then I met to the customers and get their views about product. My project is about
understanding the ice cream industry and in particular Mother Dairy. This project is helping
me in getting practical experience about marketing research, channel distribution, sales, and
developing new strategies.
34
CHAPTER-4
RESEARCH METHODLOGY
TYPES OF DATA
The data is using both primary and secondary data. Secondary data is collected by distributor
and through internet and primary data is collected from retail outlets.
METHODS OF DATA COLLECTION( By using Questionnaire as well as survey and
observation)-
The task of data collection begins after we define the research problem. While deciding about
the methods of data collection to be used for the study, the
researcher should keep in mind two types of data viz. primary and secondary. The primary
data are those data which are collected for the first time and thus it is original in nature. The
secondary data on the other hand are those which have already been collected by someone
else and which have already been passed to the statistical process. The researcher would have
to decide which sought of data he would be using for his study and accordingly he will have
to select one or the other method of data collection. The methods of collecting primary and
secondary data differ since primary data are to be originally collected, while in case of
secondary data the nature of data collection were is merely that of compilation.
35
COLLECTION OF PRIMARY DATA:
We collect primary data during the course of doing experiments in an experimental research
but in case we do research of the descriptive type and perform surveys, whether sample
surveys or census surveys then we can obtain the primary data either through observation or
through direct communication with respondents in one form or another or through personal
interview. Thus, in other words, it means that there are several methods of collecting primary
data particularly in surveys and descriptive research. Important ones are:
Observation methods:
In observational studies, the investigator doesn’t ask question to seek clarification on
certain issue instead he records the behavior, as it occurs, of an event in which he is
interested. Sometimes mechanical devices are also used to record the desired data.
interviewing:
Interview can be conducted either face to face or over telephone. Such interviews
provide an opportunity to establish a rapport with the interviewer and help extract
valuable information.
Questionnaire:
It is formalized set of question for extracting information from the target respondent.
The form of the question should correspond to the form of required information. The
three general form of question are dichotomous (yes/no type), multiple choice and
open ended.
36
COLLECTION OF SECONDARY DATA:
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, then he has to look into various sources from where he can obtain them. In this scale he
is certainly not confronted with the problems that are usually associated with the collection of
original data.
Secondary data may either be published or unpublished. Usually published data are available
in various publications of the central, state, and local bodies. In various publications of
foreign govt. and international bodies and their subsidiary organization. In technical and
trade journals, books magazines, newspaper, reports and publication of various associations
connected with business and industry, banks, stock exchanges etc.
SAMPLE AREA
The sample area is MORADABAD AND RAMPUR
SAMPLE SIZE
Approx 100 outlets.
The project is basically divided into three parts. They are
Market Survey
Through a random selection of markets, all the retail outlets containing ice cream
will be visited and the market share of mother dairy and other competitors will be
measured
37
Various issues relating to Mother Dairy and its supply will be gathered through a
series of questions put forward to the retailers.
Distribution
A proper understanding of the distribution network will be understood by working
with the distributors and salesman.
Thus understanding the loopholes between the distributors and the retailers.
Sales
The potential retailers who are interested in owning deep freezers will be looked
upon.
They will be attracted in keeping deep freezers through OYA scheme that is
offered by Mother Dairy.
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MY OWN STRATEGY TO COMPLETE TARGETS
Step 1) Markets are segregated into heads to get clear view of market potential. Like
1. Individual retail shops
2. Ice-cream parlors /coffee parlors
3. Bakeries
4. Bakery shops/sweet shops
5. Restaurants
6. Chemists shop
7. Juice corner’s
8. Caterer’s
9. Party & wedding contractors
Step2). By making a database of all the potential customer’s by using secondary Databases &
directories like sulekha.com
Step3). Contact them and follow them to convert to sales.
39
Instrument Used
In this research the instrument was used are frequency distribution and percentage, which
were used in tabulating the data and were used in representing the findings.
SOURCE OF DATA COLLECTION
Both type of data which are needs to be collect for this research i.e. primary data as well as
secondary data. Primary data was collected on regular visits to our target customer and it was
in the form of interview and secondary data was collected through internet.
Marketing Research
This was the first part of the project. This part deals in visiting a certain market that is
actually allocated to us. The survey will be helpful in understanding the current market
scenario as well as the market share of different brands in the ice cream industry. The main
purpose lies in interacting with the retailers who are into ice cream business. The comments
regarding the various brands are gathered and in particular of mother dairy. The positives and
negatives of each brand are noted. The issues such as replacement of ice creams, timely
Information about schemes, distributor’s service, salesman visits, display boards, stickers and
order placed are to be observed. The basic purpose of market survey was to understand the
markets and the pros and cons of ice cream business.
Here we have covered 20 areas in 3 weeks. We have covered all the ice cream retail outlets.
These areas are:
40
1. HARPAL NAGAR
2. M.D.A.
3. GANDHI NAGAR
4. CHANDRA NAGAR
5. GANJ GURHATTI
6. ADARSH NAGAR
7. COMPANY BAGH
8. G.M.D. ROAD
9. BUDDHA BAZAR
10. BARADARI
11. PAKBADA
12. DEENDAYAL NAGAR
13. RAM GANGA VIHAR
14. LAJPAT NAGAR
15. RAHMAT NAGAR
16. HARTHALA COLONY
17. AMROHA
18. PAKBADA
19. BUDDHI VIHAR
20. LINE PAR
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Working procedure
Here we have to approach various retail outlets & enquire about problems, complaints,
suggestions etc. As a part of marketing research we also have to collect data in order to find
market share of mother dairy from our sample space. During this period we are in constant
touch with our sales executive and area sales manager and have to submit weekly report
about each market and full information about each shop in those markets.
Questionnaire consisting of open ended questions was used for collecting the information.
Observations to be made while doing survey.
1. Whether the deep freezer is visible or not?
2. What is the position of boards and point of purchase displays?
3. Is the purity of the Deep freezer maintained?
4. Which Ice cream has then major share of deep freezer?
5. Which brand is pushed by the retailer?
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Feed back Questionnaire for retailers during market survey
1. Do you keep Ice-cream? If yes, of which company(s)?
2. Are you satisfied with the supply/ service of the company(s)? If no, what are the
problems faced?
3. Which Ice-cream is in demand in this area? Any specific reasons?
Thus through market research information on the presence of various brands, there supply,
issues of the retailers through open ended questions provided above were gathered.
Understanding Distribution Network
This is the second part of the project. This part deals in working and understanding the
market that the distributor and the salesman handle. Various issues such as salesman’s visit,
supply status, mode of supply, awareness of promotional activity, display status, Deep
freezer purity of Mother Dairy’s ice cream are to be gathered. Thus any loophole that exists
between the distributor and salesman, salesman and retailer can be worked upon and
necessary recommendations could be provided.
Working procedure
In these phase I WAS associated with the distributor (MANILA ASSOCIATES MORABAD
AND RAMPUR AGENCIES RAMPUR). Mother Dairy has a wide distribution channel
consisting of 2 distributors in this region. Our market is divided into six beats form
Wednesday to Monday. We have to move around with the sales man to the prospective beat
and look for the issues in the supply chain, distribution network, retailer satisfaction, purity
status, point of purchase displays, salesman visit. If there arises small issue then we have to
solve that issue at our level, otherwise have to inform territory sales in charge immediately.
43
Sometimes sales executive will also accompany us in this process. The results of our findings
are displayed here. These show that Mother Dairy lags in promotional activity, display and
visibility.
44
SUPPLY AND DISTRIBUTION MODEL-
MANUFACTURING UNIT
Patparganj, Delhi
CFA 1 CFA 2 CFA N
DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
RETAILER RETAILER RETAILER
CONSUMER CONSUMER CONSUMER
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Own Your Assets Program
This is the final part of the project. The market share of Mother Dairy’s ice cream is to
be increased by this Own Your Assets Program (OYA). The retailers who are currently not
into the ice cream business are approached and benefits of the OYA schemes have to be
communicated resulting in the sales of the assets of Mother Dairy thus increasing its market
share. There are many retailers who are currently not into ice cream business but they can be
actually attracted through various schemes that Mother Dairy is providing.
In this we process we will also get to know about certain concepts of sales like.
Cold calling
Warm calling
Hot calling
Deal open and Deal closing etc.
46
Working procedure
Here we are assigned some areas where we are working on OYA program. Here we
have to sale mother dairy freezer to those who want to do ice cream business. Here our task
is to make retailers aware about benefits of doing business with Mother Dairy ice creams,
handling calls according to the situation and finally closing deal. In order to make the retailer
convinced we have the below table which actually shows the time needed to recover the
amount they have spend. Suppose the retailer purchased a deep freezer of 300 liter. The
estimated cost is 15075 and ice cream worth 6000 is provided free. Hence it amounts to
9000. Here an example taking 300 liter is provided. The schemes provided are attractive.
They offer deep freezers of Carrier which are best in class with 2 year warranty.
O.Y.A. Programme offers a variety of modalities to the retailers so that they can enjoy the
pleasure of being associated with the No.1 brand in the country today at a low investment
and minimum risk. For that Mother dairy provide following facility to retailers under O.Y.A.
scheme
Provide Deep Freezer to retailers on outright sale basis.
For that the Mother dairy have negotiated with Carrier India Pvt. Ltd., Voltas Ltd. and
Western Ltd. at special price.
Rates are much below than market price.
Provide Deep Freezer to retailers at subsidized rate.
47
For providing this facility to the retailers the Mother dairy have contacted the three renowned
Indian companies at corporate level to provide deep freezer at cheaper rate. The companies
which are contacted are:
Carrier India Private Limited, New Delhi
Voltas Limited, New Delhi
Western India Limited, Kanpur
48
SOME INFORMATION ABOUT O.Y.A . PROGRAMME OF MOTHER DAIRY -
Carrier India Private Limited, New Delhi- The scheme under O.Y.A .
Programme is given below which is showing various issues of the scheme under
different categories of the deep freezer .
TABLE-1.
This scheme includes :
Two year warranty
Delivery freight
Fast track bonus up to Rs . 1000.
CARRIER MRP YOUR DISCOUNT FREE ICE BONUS SAVING PRICE CREAM 150 Ltr 14906 12038 2868 4200 1000 8969
300 Ltr 18563 15075 3488 6000 1000 11688
400 Ltr 22500 18844 3656 7200 1000 13356
500 Ltr 26438 22388 4050 7200 1000 13750
300 Ltr 23625 19125 4500 6000 1000 12700(glass top)
400 Ltr 26438 21938 4500 7200 1000 14200 (glass top)
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HARD TOP FREEZER
GLASS TOP FREEZER
50
Benefits of the O.Y.A scheme to retailers
To understand this scheme here we take the example of Carrier 300Ltrs. Deep Freezer-
Cost saving
Market price of this deep freezer without scheme is Rs.18563 approx
Price of same deep freezer under O.Y.A scheme is Rs. 15075.
Some other players are providing same deep freezer on security and charge some
amount on it.
It means ownership of same deep freezer by paying lesser amount in comparison to
the original amount of the deep freezer and also provide some additional benefits like
free Ice- creams as well as warrnty on the deep freezer .
Independent system and very easy in operation
Very low consumption of electricity
In 24hrs it consume only 2 to 3 unit
Two year warranty free from market condition
Delivery in committed time
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CHAPTER-5
DATA ANLYSIS AND INTERPRETATION -
The analysis of various issus and the data collected during the summer training is as
follows :
1. TABLE 2.: THE TIME NEEDED BY THE RETAILERS TO RECOVER THEIR
INVESTMENT
Sales per
day
(rupees)
Sales per
month
(rupees)
15% of
the MRP
(rupees
)
Electricity
charges
(rupees)
Profit
retained
(rupees)
Effective price of
the deep
freezer(rupees)
Time
required to
recover
cost
250 7500 1125 720 405 9000 < 2years
500 15000 2250 720 1530 9000 <6month
750 22500 3375 720 2655 9000 <4month
1000 30000 4500 720 3750 9000 <2.5month
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Assets utilization
There was another program which had to be completed during the sales period. During this
period we had to visit the shops of Mother Dairy and to observe whether the assets are
properly utilized or not. There were 95 shops of mother dairy which were visited and we
found that in 75 shops the assets were utilized properly.
5. SURVEY RESULTS & FINDINGS
5.1 MARKET SURVEY
TABLE 3.: Market share of ice cream brand covered during the project
Brands No. of shops covered
Mother Dairy 22
Amul 21
Kwality Walls 20
Cream Bell 11
Others 2
53
29%
15%
28%
26%
2%
Mother Dairy
Cream Bell
Amul
Walls
Others
FIGURE 1- MARKET SHARE OF ICECREAM BRANDS
Some of the information that we gathered are presented. The current market ratios of the
markets which we surveyed are given above. These facts prove that Mother Dairy is still
lagging in this aspect and our concentrated efforts can bring positive changes.
Table-4. DEEP FREEZER PURITY
Ice-cream Retail Outlet Mother
Dairy
Amul Cream Bell Kwality
Walls
Shops With Company’s Deep
Freezer
14 11 5 18
Shops With Deep Freezers Of
Others’
6 10 6 4
Total Shops 20 21 11 22
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FIGURE 2 – PURITY IN DEEP FREEZERS
Thus, from the figure shown above we found that the purity in deep freezer of Kwality Walls
was better when compared to that of Mother Dairy.
Table-5 DISTRIBUTION
Factors No. Of Shops Out Of 85 Shops Visited
Hygiene 68
Display 21
Visibility 48
55
FIGURE 3- DISPLAY STATUS
Thus, from the figure drawn above we can find out that Mother Dairy Ice-creams lack in
visibility and display with a share of less than 60%.
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Table-6 VARIOUS ISSUES
Issues Concerned No. Of Shops Out Of 85 Shops Visited
Salesman Visit 81
Quality Of Stock
Received
77
Awareness Of
Promotional Activity
60
FIGURE 4- VARIOUS ISSUES
Thus the salesmen’s visit was proper but what was found that though the visits were regular
and proper but retailers didn’t have a proper idea of the schemes of Mother Dairy.
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5.3 SALES
Table-7 SHOPKEEPERS’ ISSUES
Issues No. Of Shops
Margin 160
Initial Investment 199
Replacement 120
Brand 90
Consumer Behavior 130
Availability 140
58
FIGURE 5- SHOPKEEPERS ISSUES
As can be depicted from the figure drawn above, there were some issues which are a concern
for the shopkeepers before entering into ice-cream business. Initial investment being the
major concern for the shopkeepers followed by other issues.
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INCREASE IN MARKET SHARE IN AREA ALLOCATED TO ME AFTER SALES
FIGURE 6- INCREASE IN SALES
Thus, there was a considerable increase in the market share after the sales program was
carried out. As I was able to sell 4 deep freezers in the area allotted to me, there was a
considerable increase in market share of Mother Dairy.
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Table-8 Asset utilization
No of shops visited 95
Assets properly utilized 75
Whether all the Shop owners know Mother Dairy also has ice-cream?
Answer: 100% says yes
Table-9
No: of New Counter visited 100(appx)
Yes 100%
No 0%
61
500(appx)
0%
20%
40%
60%
80%
100%
120%
Yes No
500(appx)
This shows that Mother Dairy has good reputation in the market and a leading brand in the
Indian Market and Mother Dairy Ice-cream has its own identity
5.4 SWOT ANALYSIS
In present corporate scenario the S.W.O.T. Analysis is the most vital and foremost tool in
order to judge the competitors and also to analyze the position of the company itself.
Basically S.W.O.T. Analysis refers to the Strength, Weaknesses, Opportunities and Threats.
Strength and Weaknesses are the internal analysis of the firm; on the other hand
Opportunities and Threats are the external analysis of the firm.
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Strength:
Mother Dairy has well built image of excellence and innovation supported of triumph
of Indian dairy technology.
It has well logistic and channel network.
Well trained and educated marketing staff.
Quality of Ice-cream is good and it doesn’t use any artificial items in making Ice-
creams.
It ensures that only cow and buffalo milk is used for making Ice-creams by collecting
milk from milk cooperatives.
Demand is absolutely optimistic.
Abundant availability of raw material.
High brand image of Mother Dairy Ice-cream in market.
Provide pure milk Ice-cream rather than frozen desert.
Nation wide coverage of Mother Dairy Ice-cream.
Offering new product to customer continuously.
Large varieties of Ice-cream and its reasonable pricegives the value for money to
customer.
Consumer have trust on the brand name of Mother dairy, which is helping it to build
up a formidable image.
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Weaknesses:
Retailers say they are not satisfied by trade schemes and offerings.
Equal importance is not given by distributors to all retailers and confectionary stores.
They neglect some retailers.
All is not well with distribution system.
With so many companies in this industry, competition is becoming tougher day by
day. But then competition has to be faced as a ground reality. The market is large
enough for many to carve out their niche.
Image of Mother Dairy is being diminished by not supplying the goods and services
regularly.
As far as deep freezer is concern, company has no plan to provide DF on installment
or any other plan while the competitors are doing so.
Advertisement policies are not good.
Replacement policy of Mother dairy is very tough and because of this many retailer
don’t want to go with Mother dairy.
A major entry barrier with Mother dairy is their some non flexible policies , if Mother
dairy makes a bit flexible policies then it will be beneficial for them.
Opportunities:
“Failure is never final, and success never ending.” Dr. Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-on, and
now he clearly is an example of ‘never ending success! If dairy entrepreneurs are looking for
opportunities in India, the following areas must be tapped:
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Value Addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Steps can be taken to introduce Mother
Dairy ice cream with having less fat as additional essential extra elements for health
conscious people.
By increasing the margin to the retailer Mother Dairy Ice-cream can reach to the more
retailers as well as consumers.
By solving the replacement problem it can maximize the attention of retailers about
selling the product.
Can open retail outlet in Rich residential colonies and various malls, cinema halls.
Can expand its business in rural areas.
Threats:
Cut throat competition in the market.
No flexibility in strategy.
Customers are not brand loyal in ice-cream industry.
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CHAPTER-6
LIMITATIONS OF STUDY
Sampling error is likely because nature of markets differ from each other.
No response error occurs during survey phase, because some retailers do not wish
to respond at all.
The tendency to give wrong information by some retailers as well as distributors
will be a major hurdle to the project.
As ice cream storage depends heavily on supply of electricity in the markets there
can be a major set back in sale of deep freezers in power affected areas of Delhi.
Few of the retailers were not co- operated with me .
Time constraint is always there.
The area of survey was mostly unknown to me so it was hard to find out the routs
to survey in the market.
As the survey was conducted during business hour so it was difficult for the shop
owners to talk freely .
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SUGGESTIONS:
For increasing retail penetration of ice-cream in market Advertisement & sales promotion
should be conducted by the company so that the consumers can be more attentive to the
product. If it is possible then sales can be increased.
The area of distributor should be defined clearly so that they can work in their area with
more potential.
1. The company should make direct communication with the retailers so that retailers
can give the feedback to the company about the market position to the company. And
on the basis of that company can take the effective decision in time.
2. They should conduct the regular survey of the particular product so that they can
know the taste and the desires of the consumers and the strategy of the competitors.
3. The company should cover the retailers who are far from the main road or market,
because the competitors cover it very well.
4. The company should give the credit facility to the loyal retailers so that the retailers
can easily get the product. And they can pay without stress. The competitors are
providing this facility.
5. The company should give advertisement on radio, as well as in newspapers regularly
as reminder for the consumers.
6. Advertise for the brand awareness for ice-cream towards the customer particularly in
the rural area.
7. Focus on the value addition of the product.
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8. Position the product in the right way like that we are no. 1.
9. Mother Dairy should have highlight its basic strength i.e. pure ice-cream product
rather than that of competitors “Frozen Desert”
10. Should follow an advertisement campaign that could highlight difference between
ICE-CREAM AND FROZEN DESERT.
11. Advertisement on T.V. in prime time shows.
12. Try to make a direct relationship with retailers, not depend upon distributor’s
feedback.
13. Conduct continuous R & D so that company can develop new product time to time to
avoid competition.
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CONCLUSION
Hence MOTHER DAIRY LTD. should take necessary action to continue bringing quality
product.
First, it should participate in formulating strategies and policies designed to help the
company win through total quality excellence.
Second, they must deliver marketing quality along side production quality and value. Each
marketing activity marketing research, advertising, and customer service and so on must be
performed to high standards.
Awareness level of the consumers about Mother Dairy ice-cream should be improved by
installing more canopies and hoarding and ensure that every colony has a hoarding and a
retailer selling Mother Dairy ice-cream. Big banners and billboards should be installed on
main roads.
Mother Dairy must launch promotional schemes for customers as well to increase sales as
well as to be in news.
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BIBLIOGRAPHY
1- Books
C.R.Kothari, 2002, Research Methodology, New Delhi, New Age International (P) limited
Schiffman & Kanuk, 2004, Consumer Behavior, New Delhi, Prentice Hall of India.
2- Internet
www.motherdairy.com
www.nddb.org.com
www.dairyindustries.com
www.sulekha.com
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QUESTIONNAIRE
NAME OF RETAILER……..
ADDRESS/LOCATION………….
CONTACT NO…………………….
Q 1. DO YOU HAVE ANY ICE-CREAM BRAND?
ANS. 1.YES. 2. NO.
Q 2. IF YES, WHICH BRAND?
ANS. 1. MOTHER DAIRY 2. AMUL
3. K. W. 4. CREAM BELL 5. OTHERS.
Q 3. HOW IS THE PURITY IN YOUR DEEP-FREEZER?
ANS. 1. GOOD. 2. NOT GOOD.
Q 4. HOW WILL YOU RATE THE MOTHER DAIRY ON FOLLOWING ISSUES WITH COMPARED TO OTHERS?
ANS. 1. HYGIENE……. 2. DISPLAY…….
3. VISIBILITY…..
Q.5 HOW IS THE SERVICE OF MOTHER DAIRY ON FOLLOWING ISSUES?
ANS. 1 SALES MAN VISIT……..
2 QUALITY OF STOCK RECEIVED…..
3. AWARENESS OF PROMOTIONAL ACTIVITY……
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Q.6 WHAT DO YOU THINK IS THE MAIN FACTOR BEFORE ENTERING INTO ICE-CREAM BUSINESS?
ANS. 1. MARGIN……….
2. INITIAL INVESTMENT……
3. REPLACEMENT OF STOCK……
4. BRAND……….
5. CONSUMER BEHAVIOUR……
6. PROPER AVILIBILITY OF STOCK…….
Q.7 DO YOU USE YOUR DEEP FREEZER FOR ANY OTHER PURPOSE OTHER THAN ICE-CREAM?
ANS. 1. YES….. 2. NO……..
Q.8 DO YOU LIKE TO PLACE ANY ORDER FOR MOTHER DAIRY ICE-CREAM?
ANS. 1. YES 2.NO.
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