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A BRIEF STUDY OF EXISTING DISTRIBUTION STRATIGIES OFSUDHA RANGE OF MILK AND MILK PRODUCTS

AT

BIHAR STATE MILK COOPERATIVE FEDERATION (PATNA)

UNDER THE SUPERVISION OF: PRESENTED BY:

Mr. RAJEEV VERMA (MARKETING MANAGER) & ADEEL RAHMAN

Mr. PRAKASH KUMAR(Sn. MARKETING SUPERVISOR) 10MBA-461



CONTENT

COMPANY PROFILE

PRODUCT PROFILE

DISTRIBUTION STRATIGIES

OBJECTIVE OF THE STUDYRESEARCH METHODOLOGY

DATA ANALYSIS AND INTERPRETATION

FINDINGSRECOMMENDATIONS

LIMITATIONS

2



COMPANY PROFILE

It was set up with a noble mission to upgrade the socio-economic

condition of rural farmers of Bihar, cater to the needs of urban

consumers with the supply of hygienically packed milk at affordable

rates and offer job vistas as well, Bihar State Co-operative Milk

Producers Federation Limited (COMFED) started off in 1983. It has been formed as an implementing agency of "Operation

Flood" programme on the lines of ANAND milk co-operative.

It’s affiliated milk unions includes-

Vaishali Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPMU),Patna, Deshratna Dr. Rajendra Prasad Dugdh UtpadakSahkariSangh

Ltd. (DRMU), Tirhut Dugdh Utpadak Sahkari Sangh Ltd. (TIMUL),

Mithila Dugdh Utpadak Sahkari Sangh Ltd. (MMU), Shahabad

Dugdh Utpadak Sahkari Sangh Ltd. (SMU), Vikramshila Dugdh

Utpadak Sahkari Sangh Ltd. (VIMUL)3



Milk marketing-

4

0

100

200

300

400

500

600

700

800

1987-88 1997-98 2002-03 2005-06 2008-09 2009-10

100.55

379.13

245.02

496.4

622.12

701.03

* '000 lts/day



5

Marketing of Different Milk Products

Milk Products Units 2002-03 2003-04 2005-06 2008-09 2009-10Ghee MTs 1026 991.2 1870 679.9 981.8

Table Butter MTs 81.9 44.79 106.4 61.67 74.45

Ice-cream MTs 255.3 257.5 263.5 332.5 472.3

Lassi MTs 1071 1615 2519 2627 3217

MistiDahi MTs 492.6 538.7 563.5 707.1 820.2

Peda MTs 409.9 413.1 614.2 568.2 735.7

Paneer MTs 570.5 679.8 970.3 1054 1701

SudhaSpl. MTs 240.7 224.2 278.5 533.1 870.4

Plain Curd MTs 647.8 790.6 1285 1684 2723

Kalakand MTs 81.7 66.99 161.7 127.3 152.8

Rasogulla MTs 78.7 95.23 186 354.3 497.1

Gulabjamun MTs 75.6 98.51 164.8 268.3 335.8



PRODUCT PROFILE

The products are sold under the brand name “Sudha”.

SUDHA products are the most hygienic milk products availablein the market manufactured through state of-the-art processingplants.

SUDHA products are processed with a technology called UHT(Ultra High Temperature) which ensures zero microbialactivation, and preserves maximum flavor, taste, and nutritionalvalue.

Various products sold under the brand name “SUDHA” include-

Sudha milk and flavored milk, Sudha ice cream, Sudha paneer,Sudha peda, Sudha balu shaahi, Sudha ghee, Sudhagulabjamun, misti dahi, plain dahi, mango dahi, probiotic dahi,Sudha butter, Sudha milk shake, Sudha mattha, Sudha lassi,mango lassi, Sudha rosogullah, Sudha khoa mithai, Sudha

kalakand, Sudha milk cake & sudha ramdana lai.6





DISTRIBUTION STRATIGIES

A company can opt one of the following distribution strategies- Exclusive distribution

Selective distribution

Intensive distribution

“SUDHA has adopted exclusive distribution”

It is an extreme form of selective distribution in which only onewholesaler, retailer or distributor is used in a specific geographicalarea.

SUDHA limits the number of retailers handling the dairy milk products. Retailers, distributors are fixed in the local market.

Distributors are distributed in different zones. By grantingexclusive distribution, Sudha hopes to obtain more aggressiveselling. It is also done with the motto of enhancing the productimage. For this, the dairy has constructed several milk parlors inand outside Patna.

8



LEVELS OF DISTRIBUTION

There are four levels of distribution, which are –

1) Zero level distribution – producers directly passes hisproducts into the hand of consumers.

2) One level distribution – producers provides his

products to the consumer through retailers or salesrepresentative agents or brokers.

3) Two level channels – (P.W.J.R.C.) - producer,wholesaler, retailer and consumer constitute thischannel.

4) Three level channel - (P.W.J.R.C.) - producer,wholesaler, jobber, retailer and consumer constitute thischannel. The jobber works between wholesaler andretailer.

9



Policy of Distribution of Patna

Dairy Project- The PDP generally follows the zero level, one level and two

level of channel of distribution. The reason behind this is that

PDP deals with perishable products which have short life and

which can be wasted by the negligence in the delivery of

product to the customer. So PDP provides the milk to thecustomer either directly or through the retailer. But the total

distribution function is performed under the involvement of

authorized distributors of PDP. They collect the liquid milk

from the dock of PDP and then they directly send the milk vans to the retailers in two sessions, i.e. Morning session and

Evening session.

10



OBJECTIVES OF THE STUDY-

To find out consumer’s preference for milk and milk products of

SUDHA.

To find out share of SUDHA in the market.

To find out availability of SUDHA products in the market.

To see the problems faced by retailers and distributors of SUDHA.

11



RESEARCH METHODOLOGY

Research type: Descriptive Research

Data collected: Primary data & Secondary data

Research instrument used: structured questionnaire

Geographical extent: Patna Sample size-

1. consumers- 100

2. retailers- 20

3. distributors- 10 Sample selection- convenience and judgmental sampling.

12



DATA ANALYSIS AND

INTERPRETATION

13



CONSUMER SURVEY

1. Your preferred milk and milk productsbrand

0

10

20

30

40

50

60

Sudha Amul Raj Others

no. of respondents

59

13

21 7

14

no. of

respondents

Sudha 59

Amul 13

Raj 21

Others 7



2. Which media makes you aware about SUDHA?

0

10

20

30

40

50

60

70

80

Newspaper Television Hoardings

no. of respondents

27

2

71

15

no. of

respondents

Newspaper 27

Television 2

Hoardings 71



3. What do you think about price of Sudha

products?

0

10

20

30

40

50

60

70

80

90

Low Reasonable High

no. of respondents

3

90

7

16

no. of

respondents

Low 3

Reasonable 90

High 7



4. From where do you purchase Sudha milk and

milk products?

0

10

20

30

40

50

60

70

Retailer Sudha parlor Home delivery

no. of respondents

28

4

68

17

no. Of respondents

Retailers 68

Sudha parlor 28

Home delivery 4



5. How far you go to buy Sudha products?

0

10

20

30

40

50

60

70

80

0-0.5 km 0.5-1 km more than 1 km

no. of respondents

72

20 8

18

no. of respondents

0-0.5 km 72

0.5-1 km 20

more

than 1 km 8



6.Which Sudha product do you use regularly?

(You can tick more than one product)

02040

60

80

100

M i l k

I c e c r e a m P e d

a

L a s s i

G u l a b j a m u n

P a n e e r

C u r d

G h e e

no. of respondents

19

no. of

respondents

Milk 95

Ice cream 84

Peda 61

Lassi 63

Gulabjamun 58

Paneer 70

Curd 79

Ghee 71



7. Your opinion about Sudha products in terms

of quality

0

10

20

30

40

50

60

70

80

Below average Average Above average Excellent

no. of respondents

1412

71

20

3

no. of

respondents

Below average 3

Average 12

Above average 71

Excellent 14



8. Are Sudha product always available when

demanded by you?

Yes

No

34

66

21

no. of respondents

Yes 34

No 66



9. In case of non-availability of Sudha products

would you opt for a substitute?

Yes

No

29

71

22

no. of

respondents

Yes 71

No 29



10. Does packaging affects your purchase

decision?

Yes

No

20

80

23

no. of

respondents

Yes 80

No 20



RETAILER SURVEY 1. Do you stock Sudha milk and milk products?

Yes100%

No0%

24

no. Of

respondents

Yes 20

No 0



2.Other brands available in your shop

0

2

4

6

8

10

12

Amul Raj

no. of respondents

8

12

25

no. of

respondents

Amul 8

Raj 12



3. How would you rate your present level of

sales?

Satisfactory

Unsatisfactory

713

26

no. Of

respondents

Satisfactory 13

Unsatisfactory 7



4. Which Sudha product sells most?

0

2

4

6

8

10

12

14

16

18

20

no. of respondents

27

no. of

respondents

Milk 20

Ice cream 0Peda 0

Lassi 0

Gulabjamun 0

Paneer 0

Curd 0

Ghee 0



5. Are you happy with profit margins you get?

Yes

No

2

18

28

no. Of

respondents

Yes 2

No 18



6.Are you satisfied with services provided by

Sudha distributors?

Yes

No

60%

40%

29

no. Of respondents

yes 8

no 12



7. Are you interested in distributorship of Sudha

milk and milk products?

Yes

No

75% 15%

30

no. Of

respondents

Yes 5

No 15



8. Are you aware of Sudha parlors and its benefit?

Yes

No

9

11

31

no. Of

respondents

Yes 11

No 9



9. Are you interested in opening of Sudha parlor?

Yes

No

12

8

32

no. Of

respondents

Yes 12

No 8



10. Sale of Sudha as compared to-

a. Amul b. Raj

0

5

10

15

20

SudhaAmul

Raj

no. of respondents

33

no. Of respondents

Sudha 20

Amul 0

Raj 0



DISTRIBUTOR SURVEY 1. Which Sudha product has the highest demand?

0

24

6

8

10

12

14

16

18

20

no. of respondents

34

no. of

respondents

Milk 20

Ice cream 0

Peda 0

Lassi 0

Gulabjamun 0

Paneer 0

Curd 0

Ghee 0



2. Do you think number of retailers should be

increased?

Yes

No

2

8

35

no. Of

respondents

Yes 8

No 2



3. Rate Sudha on a scale of 1-5 (1 being the worst

and 5 being the best)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5

4

32

1

36

1 2 3 4 5

margin 0 4 6 0 0timelines

s 0 3 7 0 0

incentive

s 0 0 10 0 0

demand

of

retailers 0 6 4 0 0

quality 0 0 3 7 0

packagin

g 0 0 3 4 3

hygiene 0 0 0 0 10

competiti

veness 0 0 3 7 0



Sales figures of different Sudha products

during 2009-10 & 2010-11 (in `)

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

2009-10 2010-11

251,391,686.80

336,779,861.81

37



Findings-

The brand name Sudha has awareness to the fullest extent and allthe respondents knew very well about it. As it was the oldestbrand of milk and ghee available in Bihar, all these respondentsknow about it through advertisement and through the retailer.

Sudha is seen to be a very eminent brand since all the 100% of

respondents have given it a positive response regarding itsawareness.

Most of the respondents said that quality of SUDHA products isthe thing that they admit the most and few others said that theyadmired competitive price of Sudha. While some of others alsoadmired its availability and its agent’s service. This means thatSUDHA has maintained its quality since its inception.

The respondents were using more of Sudha Milk and Milk products when compared to any others products.

On question it was found that retailers were not happy withmargin, availability and replacement of leak pouches.

38



Contd…

Retailers were selling different brands. Because they wereable to receive more margin from non-popularized which theycould not get from well-known brands.

All retailers get Sudha milk from company selected

distributors.Measurable amount of retailers were not happy with thedistributors.

All retailers were familiar with sales promotion activitiesundertaken by Sudha. But more of the activities were notcommunicated by distributors. So it shows that distributorsare taking the advantage of such activities.

Some questions were asked with view to convert retailers intodistributors, but due to lack of interest they denied that.

39



Suggestions- The Milk products market has reached Maturity stage. Large no. of Co-operatives having a variety of product range has entered the market, thusthere is one way for Sudha to sustain their milk business in the market bydelivering outstanding satisfaction to their retailers, so that they can takeinterest in selling of Sudha milk products.

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

routes.Provide reasonable Margin to retailers and distributors as compared tocompetitors, this will motivate them to promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the retailers whoclaimed that Sudha milk and milk products are not available to them on

time.Incentives & schemes should be given to the retailers and some scrutinyshould be followed to check the scheme being communicated properly bydistributors or sales person.

40



Contd …

Provide consistent service to retailers as this will help gaincompany goodwill in the market.

Do not change distributor frequently, because he is the onlyperson who act as a connecting link between company andretailers.

Do not place more than one distributor in same market area.Sudha should invest more money in brand promotion andmarketing, as it will be beneficial for the company in the longrun as well as in the short run.

COMFED should schedule surveys on a more regular basis asSudha is really capturing the market and the COMFED shouldtake viable steps to meet the expectations of its customers.

COMFED should come up with a scheme for consumers likediscount on product on supplying empty pouch packets of Sudha products.

41



Limitations-

Some of the respondents could not give their proper response due to lack of time. They at times tend to get biased and project a rosy picture whichmay affect the reliability and relevance of the study.

It might also be so that some respondents were not motivated enough torespond properly although full attempt was made to keep it as unbiased aspossible.

The duration of the project was short, so the scope of more in-depthevaluation was not possible.

All of the retailers were not so co-operative. As they were very busy withdirect selling process, so they hardly get any free time for such discussion.

Lack of proper information and experience also became hurdles for me.Some particular sectors of Patna were so crowded and disarranged that it

became quite impossible for us to visit those retail outlets present there.Off course, money also played a vital factor during the whole project.

42



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