Mother Dairy(2) (1)

MOTHER DAIRY INDIA LTD

GROUP NO. 8

RURAL MARKETINGMOTHER DAIRY INDIA LTD

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SUBJECT: RURAL MARKETING.

CLASS: SYBMS.

DIV: A.

GROUP NO: 8.

YEAR: 2010-2011.

COLLEGE: BHAVAN’S COLLEGE.

SUBMITTED TO: PROF. FARIDA.

GROUP MEMBERS:

BHAGYASHREE LAD --- 43

MILAN LATHIYA --- 44

VIJAY MANE --- 45

RUCHIKA MASTER --- 46

PREETI MATHARU --- 47

SUMIT MAURYA --- 48


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INDEX:SR.NO CONTENTS PAGE NO.

1. INTRODUCTION 4

2. PRODUCTS 5

3. MANUFACTURING / PROCESSING 8

4. QUALITY CONTROL 10

5. SUPPLY CHAIN MANAGEMENT 11

6. DISTRIBUTION 12

7. HR PRACTICE 12

8. PRODUCT PROMOTION STRATEGY 13

9.MARKETING STRATEGY FOR MOTHER DAIRY

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10.ADVERTISEMENT AND PROMOTION BY MOTHER DAIRY 15

11.INTERNATIONAL BUSINESS 16

12. COMPETITION IN DIFFERENT PRODUCTS

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13. AWARDS 18


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INTRODUCTION :Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB).

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. It is Mother Dairy’s constant endeavour to,

(a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and;

(b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable.

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 is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004 (EMS) certified organization. Mother Dairy has Certificate of Approval from Export Inspection Council of India also. 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.

Mother Dairy markets approximately 2.8 million litres of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy.

The company’s derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi &


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Flavoured Milk and most of these products are available across the country.

PRODUCTS:Mother Dairy offers a varied range of products for its consumers. Within a particular product category also it provides various choices to the consumers. Mother dairy being in the dairy industry offers various dairy products as follows:

1. Milk:The basic dairy product i.e. milk is offered by Mother dairy in different varieties. It has come up with various varieties depending on the needs of the customer. The varieties of milk offered by Mother Dairy are as follows:

a. Full Cream Milk: Mother Dairy Full Cream Milk is wholesome and healthy. It is packed with energy and nutrition that’s essential for growing kids. It makes them stronger from within and keeps them active and healthy. It contains milk fat – 6% and SNF – 9.0%. It is the second most demanded type of milk only after toned milk.

b. Toned Milk:Mother Dairy Toned Milk is a perfect blend of good health and wholesome taste. It’s an ideal choice for people in search of a nutritive balanced diet that does not compromise on taste. It is the right way to stay fit and fine, jolly and cheerful. It contains milk fat – 3% and SNF – 8.5%. It has high demand in Mumbai i.e. about 70%.

c. Double Toned Milk: Mother Dairy Double Toned Milk is tasty and nutritious, with low fat content. A dream come true, especially for all calorie conscious people who love the taste of milk but are wary of its cream content. Mother Dairy Double Toned Milk complements your daily workout perfectly. It contains milk fat – 1.5% and SNF – 9.0%. However, among all the variants it is comparatively less demanded.

d. Cow Milk: Mother Dairy’s Cow Milk has a yellowish tinge due to presence of an element called carotene and is a good source of Vitamin A, B-12 and Vitamin D. Cow Milk is considered to be easily digestible. It contains milk fat – 3.5% and SNF – 8.5%. It ranks third in demand in Mumbai.


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2. Ice Cream:Mother Dairy offers Ice Cream under 2 categories – CHILLZ and Mother Dairy Ice Cream. Under CHILLZ category it offers bars and cones in flavours like chocolate, mango, butterscotch, etc. Under Mother Dairy Ice Cream it offers a number of product varieties like Lic Lolleez, Kulfi, Cassatta, Sundae Magic, Dietz, etc. A variety of flavor choices are available within these product varieties.

3. Ghee:Mother Dairy Ghee is pure ghee made from buffalo milk. The formulation developed delivers superior flavour and aroma to the food. Mother Dairy Ghee is available in one litre and half litre cartons.

4. UHT Milk: 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. Also, the milk needs no boiling and can be drunk straight from the pack. Currently, UHT Milk is available as Toned Milk (with just 3% milk fat) and Double Toned Milk (with just 1.5% milk fat).

5. Butter: Mother Dairy Butter is produced under totally hygienic conditions using Mother Dairy’s wholesome milk. It is available in 100 and 500 gram packs. The mascot for Mother Dairy Butter is a cow named Makkhan Singh.

6. Cheese:Mother Dairy presents yummy Cheese made from freshly collected cow's milk. It's made with calcium rich milk and each slice of Mother Dairy Cheese offers approximately 20% of a growing child's everyday Calcium requirement* [* (Percentage Daily Requirement based on a 2,190Kcal diet) ]. It is currently available in three formats which are Individually Wrapped Slices (IWS): 200gms (10 slices), Cubes: 200gms (10 cubes) and Spreads: 200gms.


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7. Dahi (Curd):Mother Dairy offers Dahi which is uniformly thick, consistent and natural, without the use of any preservatives. Mother Dairy Dahi is made from pasteurised standardized milk which contains 4.5 % milk fat and 10 % milk SNF. It also aids digestion by maintaining balanced micro flora in the intestine and suppressing the growth of undesirable pathogenic bacteria. It is available in 100 grams, 200 grams, and 400 grams.

8. Lassi: Mother Dairy Lassi is a tasty and refreshing drink made form pure, nutritious milk. Two variants of Lassi are available, Sweet Lassi (300 ml) and Salted Lassi (200 ml). There are two variants to reach wider customers.

9. Flavoured Milk:Mother Dairy Flavoured Milk captures all the goodness of Mother Dairy’s pure and fresh milk combined with the magic of special flavours. It is made from Double Toned Milk. It is available in Kesar Elaichi, Chocolate and Vanilla flavours. These drinks are available in 300 ml and 500 ml.

10. Probiotics:Mother Dairy has a Probiotic Product range as follows:

a. b-Activ Probiotic Dahi:It is a regular curd with added advantage of unique probiotic culture Bifidobacterium BB-12®. The unique fermentation process and the availability of Bifidobacterium BB-12® makes b-Activ a healthy complement to the regular diet, mainly enhancing the body’s natural digestive system and nutrient absorption capability. The probiotic culture in b-Activ can withstand the effects of acidity, alkalinity and bile salts and colonize in the intestine. Colonization of BB-12® improves the gut environment and results in better health. It is available in 400g Tub, 200g Tub and 90g Tub.

b. b-Activ Probiotic Lassi:A tasty, refreshing way to quench your thirst Mother Dairy b-Activ Lassi also gives all the advantages of Probiotic properties. It is


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available in an easy to use cup format adding to the convenience. It is available in 200 ml cups.

c. b-Activ Plus Fibre Rich Curd:Mother Dairy’s b-Activ Plus probiotic dahi contains billions of friendly BB-12® bacteria and essential fibre that together help regulate digestion. Regular Dahi contains a population of friendly bacteria but its survival rate in stomach is low. A b-Activ Plus Probiotic Dahi contains BB-12 FRIENDLY BACTERIA which have higher survival rate in the stomach resulting in better digestion and absorption of nutrients. It also contains prebiotic fibre which stimulates activity of probiotic bacteria resulting in improved digestive health. It is available in 400g Tub and 200g Tub.

d. Nutrifit:It is a Probiotic Drink offered by Mother Dairy that helps in building Immunity. Mother Dairy’s Nutrifit contains billions of LA5 friendly bacteria, which strengthen the body’s defenses against infections & diseases over time. It is available in Strawberry and Mango flavours in 100 ml bottles.

MANUFACTURING / PROCESSING:

As a part of its effort to add value to the business of dairy cooperatives, the Dairy Board identifies, develops, tests and transfers product and process technologies.

Regional preferences are an important basis, for developing products and their manufacturing processes. In addition equipment has been designed and commercialised for manufacturing indigenous milk products like shrikhand, paneer, khoa, lassi, gulab jamun, mishti doi and curd as well as popular western products like ice-creams and cheeses.

In developing process, product and equipment technology, emphasis is placed on maintaining high quality standards. To check milk quality, test kits have been developed. NDDB also provides services for analysis of dairy product samples.


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PROCESSING OF MILK :

The Dairy Procures wholesome fresh milk from different village co-operative, Milk Unions, State Federations all over India and is transported to our plant through Insulated Rail Milk Tanker & Road Milk Tankers.

The incoming milk at the Dairy is rigorously tested for flavour, acidity, Fat and SNF (solid not fat) etc. Milk not conforming to the standards laid down is rejected straightaway.

The marvel of modern milk processing technology now takes over. The milk is standardized with the right proportion of fats and solids not fat. To make it a wholesome supplement for human needs.

The milk which is accepted is chilled to 4o Celsius and stored in silos. Reconstituted milk, when necessary, is added to augment the volume.

Quality Checks & Test Done Are Cleanliness Presence of foreign particles Organleptic test Temperature COB Activity test Test of Preservatives

Presence of neutraliser Alcohol test Phosphatase tests MBRT FAT and SNF (Solid not Fat) percentage estimation Bacteriological Analysis

Like any other agricultural commodity, there are regional and seasonal imbalances in the production of milk also. In flush season and in milk surplus areas, when excess milk is available, it is converted to Skim Milk Powder (SMP) and Butter Fat and then stored. During the lean seasons and in milk deficit areas, when the availability of fresh milk is low, to augment supply, SMP


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and Butter Fat are recombined without jeopardizing the goodness and nutritive value of milk.

After chilling, the milk from the silos undergoes clarification, homogenization and pasteurization. Milk is passed through the clarifier at 40o Celsius so that all extraneous matters are separated and removed from the milk.

Homogenization is carried out at a temperature of 70o Celsius. It is a process by which fat globules in the milk, which have a natural size of 8-12 microns are broken down into much smaller sizes of less than 2 microns and evenly distributed throughout the milk. This reduces the tendency of fat to separate at and float the surface as a cream layer. This process also makes the milk more easily digestible.

The milk is pasteurized at 80o Celsius to destroy pathogenic bacteria.

Finally, the milk is chilled to 4o Celsius and stored. The milk is now ready for travel to thousands of waiting consumers.

Just prior to dispatch, the milk is glycol chilled to about 2o Celsius and either automatically packed in polyethylene pouches or loaded in Mother Dairy’s fleet of Insulated road milk tankers to be delivered at the various distribution points.

QUALITY CONTROL :

Stringent quality control methodologies are employed in Mother Dairy. a) The milk is tested for adulterations and quality at the time of collection from the farmers. b) The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 7°C and is subjected to 15 product and quality checks. c) The Milk quality is checked repeatedly after each processing phase and the temperature is Judiciously maintained less than 5°C always. d) Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again. e) The temperature of milk in the delivery trucks is always maintained less than 7°C.


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f) All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution.

g) Since all the employed processing procedures are automated, no contamination by human hands takes place. h) To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.

SUPPLY CHAIN MANAGEMENT :1) Milk Procurement :

Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated road/rail tankers at very low temperature in order to retain its freshness.

2) Milk distribution :

79 tankers in the morning and 75 tankers in the evening bring in milk from the regional collection centres. After collection the same tankers are utilized for the delivery of the processed milk to the vendors and outlets.

Mother Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of these outlets place their demand by raising an invoice one day in advance. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. Mother Dairy’s unique distribution network of bulk Vending booths, retail outlets and mobile units give it a significant competitive advantage.


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DISTRIBUTION CHANNELS:

a) Token Distribution: Also, termed as “Lohe ki bhains” (metal buffalo), is an automated milk vending machine.

b) Cow: Container on Wheels or COW is a manual milk distribution program in which cycle-rickshaws are employed for milk distribution.

c) Retailers: The packaged milk is distributed via the retailer network throughout the city.

HR PRACTICES :Mother Dairy is a unique set up which has the best of both the worlds. Like any other private sector entity, it enjoys the freedom to appoint the requisite professional talent in key positions and to take decisions with the flexibility and speed that is required in an increasingly competitive market. It also gives employees the satisfaction that their work touches the lives of millions of farmers and aims to enhance the economic status of our rural population.

Mother Dairy has a diverse and welcoming workplace where in values of trust, transparency, unquestionable commitment to quality, single-minded focus on excellence and respect for the individual are simply a way of life. It is forging ahead in the market to tap the limitless potential that lies there. To achieve the vision, they are always looking out for dynamic talented professionals who have:

The ability to take initiatives and drive things.

Are ambitious and self starters.

Love challenges and have a passion to excel.


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The capability to initiate, lead and manage change in a highly diverse and challenging environment.

1) The Company strictly follows the guidelines laid in by Quality Control Programmes like KAIZEN, TPM etc. As a result, all the employees are well aware of their rights and responsibilities. Also, it is amongst the only companies to follow TPM in not only production but also in case of Human Resources.

2) The Company is also environment conscious as it employs Solar Panels, Rainwater Harvesting, Effluent Treatment Plants, etc.

3) Strict health and sanitation measures are employed so as to maintain high quality of product quality and avoid any product contamination.

PRODUCT PROMOTION STRATEGY

Mother Dairy believes in direct contact with the customer. It organises various seminars for children from different schools, students from various colleges and even housewives to educate and increase awareness about milk and its products. All this is done by the Customer Information Department wherein consumers are made aware about goodness of milk, various stages of its processing, Q.A. practices and possible adulterants.Consumers can themselves see how impurities and adulterants can be easily detected in the laboratories. The company also has a Mobile Lab that tests milk in residential colonies.

As far as the sales are concerned, in order to increase their reach, Mother Dairy sells its milk both in bulk vended and sachet forms. Various advertisements both in print and electronic media are flowed time to time on a regular basis.


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MARKETING STRATEGY FOR MOTHER DAIRY :Meanwhile in an attempt to "increase retail visibility", the company has decided to increase its ad and marketing spend. "We should be hiking our ad budgets by 20-25 per cent," said Mr Thachil, adding that the earmarked amount would be "significant and adequate at this point of time". The company is working on rolling out more varieties of its milk-based products.

"We are evaluating options to introduce more varieties and flavors in cheese, ice-creams and yoghurt-based items," Mr Thachil said.

Currently milk-based products by Mother Dairy include ice-creams, dahi (curd), lassi, flavoured milk, butter, cheese and dairy whitener. Mr Thachil said that a couple of new products were on the anvil, but declined to divulge further details.

With regard to Mother Dairy's decision to go national last year, Mr Thachil said that the company had extended its operations to sell its brand of milk-based products such as curd, ice-creams, lassi, butter and ghee across the country. The company has already entered the Mumbai and Hyderabad markets, and is now planning to launch its butter and cheese in Bangalore and Kolkata.

On the marketing front, Mother Dairy says it's 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, grow faster".

"We are saying we want children to achieve their ambitions faster. That the product is pure or healthy is a given for us," says Thachil.

As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterly campaigns.

Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its


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butter. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador.

While 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.

It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheroes - through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.

Cheese was also something that helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer him anything worth Rs 20 from the shop - which worked better than offering something free with the product, which the consumer didn't even needs.

ADVERTISEMENT AND PROMOTION BY MOTHER DAIRY :

On the marketing front, Mother Dairy says it's 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, grow faster".As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterly campaigns.

Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador.


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While 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. Equity and empathy are being built for the brand, the values for which it stands, and the various other Mother Dairy products,which draw their core values from Mother Dairy milk.

It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity:"Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheros - through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.It claims that the exercise resulted in better ties with retailers. A positive response made Mother Dairy to repeat it in Kolkota as well. Clearly, Mother Dairy has aggressive plans. But, strong regional brands and other co-operatives will continue to give it tough competition. It will not be a cakewalk anymore.

INTERNATIONAL BUSINES :

It’s Internationally traded dairy products:-

1)Dairy Whitener2)Table butter3) Ghee4)Toned Homogenized milk- UHT5)Skimmed milk powder6) Full cream milk powder.


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COMPETITION IN DIFFERENT PRODUCTS :

The nature of competition varied among the different products. In the case of liquid milk, competition was from private dairies and contractors. There was also competition from newly emerging private dairies that had started supplying milk to the consumers as well as sweet makers. There was intense competition for the supply of milk, which was sought after, especially in the festival seasons, by the sweet makers who derived large profits from the sale of their sweets. Consumers were generally not very particular about the brand of liquid milk, so that the sales depended to a large extent on dealer push. However, there was scope to establish differentiation through appraising the customers of the quality not only of the initial milk itself, but also the quality of the supply chain, which ensured the stability of milk. For butter and cheese, new entrants were making their mark. Britannia, a firm engaged in manufacture and sale of biscuits, had entered into foods business, and more particularly in milk and milk related products such as butter. Britannia had introduced new forms of cheese such as cheddar cheese slices, and supported its products with extensive advertising campaigns. It was believed that advertisements played a powerful role in the demand for particular brands of butter and cheese.

Other food companies such as Hindustan Lever Ltd. (HLL), a subsidiary of Unilevers, and Nestlé had also entered into the business of ready made or near ready sweets (such as gulab jamun, which just needed to be deep fried to getit ready). Branded ready or near ready sweets were advertised and heavily promoted throughcampaigns such as through mail orders to housewives. The ice creams market was an emerging market in India, witnessing the entry of numerous players.

The national scene was dominated by Hindustan Lever with its Kwality and Walls brands, accounting for about 45 percent of the market. GCMMF was the other national player, with about


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30 percent of the market. There were, in addition, very powerful regional players such as Vadilal Ice Creams in the Western India who commanded substantial (in excess of 30 percent) of the regional market shares. Ice creams were largely promoted through local promotions, hoardings (billboards) and advertisements.It could be expected that these companies would also expand their operations in the coming years.

AWARDS :

Mother Dairy has its own list of achievements as it has been given awards for various reasons from time to time. It has got ‘Best Productivity Award’ two times for three consecutive years starting from 1987-88 to 1989-90 and again from 1995-96 to 1997-1998. It was also awarded ‘Energy Conservation Award’ in 2005-2006 and has also got ‘Innovation Award’.


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BIBLIOGRAPHY:

1. www.motherdairy.com 2. www. wikipedia .org

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http://www.motherdairy.com/

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Mother Dairy(2) (1)