Study of Potential & Promotions for sales of Saras Paneer

Presented By :Abhilash GehlotManish Yadav

Introduction

• Dairy development was initiated by the state government in the early seventies under Rajasthan state Development Corporation(RSDDC) regestered in 1975.

• Two year later (1977)RCDF assumed responsibility for the many of function of RSDDC.It become nodel agency for implementation of operation flood in the state.

• India is blessed with huge bovine population of 196million cattle and 80 million buffaloes accounting for 51% if Asia and 19% of world bovine population – the largest in the world.

RCDF

Rajasthan Coperative Dairy Federation.• The federation acts as a mediating body between the unions

and the markets for their milk and milk products through the brand name SARAS.

• Initially, at the time of inception it marketed only dairy products like liquid milk, butter and Ghee but time to time it updates its products and diversifies in various other products like ice-creams, coffee, shakes etc and also diversifies in other more novel milk products.

Figure 1:R.C.D.F at a glance

RCDF AT A GLANCE

RCDF

CONSULTANTS

BOARD OF DIRECTORS

UNION DAIRIES

DCS

DEPARTMENTS

DISTRIBUTORS

Core Objectives of RCDF-

• Increasing milk collection

• Breed up gradation

• Maximize returns to farmers for milk

• Enhancing infrastructure and expansion in the existing facilities

• More rapid and systematic style of working

Values• Cultural Values- Every employee is expected to work according to

some core values through which Saras can give its best to its customers. They are –

• Total quality and Cleanliness • Honesty, discipline and cooperation• Agreements rather than arguments• Transparency • Sincerity & dedication • Sovereignty and• Respecting each other’s opinions and ideas • Employee satisfaction• Feeling pride to be a part of organization• Fulfilling commitments towards members and customers

RECENT DEVELOPMENTS AND FUTURE PLANS

• 2 new milk unions of Chittor and Tonk have been proposed so as to tap the surplus raw milk from these two districts. R.C.D.F is also planning to set 7 new chilling plants in areas which are devoid of cooling facilities. But the front end issues have a broader picture.

•R.C.D.F. is now ready to diversify its product range and to test new export markets. In this regard, new products and new age packaging and labelling will be introduced soon which will cater to the premium and high level customer segment. But before this, provisions are being strengthened to make availability of all present products compulsory at all parlours and booths which is still a shortcoming. Defence canteens and other institutions like schools, engineering and management institutions are also been offered to keep Saras products. In regards to all these, a fresh new marketing plan is already under formation which includes improving the present advertisements, and media expansion in terms of regional magazines and radio networks.

Strategies can be divided as -

Strategies

Cooperative level Procurement level Quality assurance & Marketing

SWOT Analysis of Saras

Strength –• R.C.D.F has a robust distribution network consisting of 16,800 booths &

shop agencies, 407 milk parlours and 115 distributors.

• Ability to make acceptable margins to the retailers and distributors, with low overhead.

High-quality of products at an affordable cost to the consumers.

Reputation of being a non profit co operative organization which provides values to both supply and demand ends.

Weakness –• Saras’ product range falls too short when compared to Amul. It may make

it vulnerable if amul introduces full spectrum of its product in Jaipur market.

• Quality procurement is a concern as Saras has not been able to control the adulteration habits of many members. This causes loss in terms of increased processing cost, reduced shelf life and overall quality of products

Opportunity –• There is still large untapped market consisting of middle class segment to

be covered. In this respect, diversification of products poses bight chances.

• Saras has yet to collaborate with major retail chains so as to extend its retail availability and visibility.

Threats –• Intrusion of major players like Amul and Mother dairy in an aggressive

fashion may divert the mindset of present customers of Saras.

• a growing amount of advertising and business inroads by outside regional and national brands in the local area

• Increasing costs of raw material is also an issue as R.C.D.F has already set a minimum support price

Some facts about Saras Paneer

Composition: FAT %: 50 on dry mattersMoisture% (Max.): 60

Packing Size : 200 gram (Vaccum Packed) at Rs 34. 1 Kg (Vaccum Packed) at Rs. 170.

Margins : Retailer – Rs 13 per kgDistributor – Rs 6 per kg

Sales of last 12 months

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Apr May Jun Jul Aug Sep Oct Nov DEC Jan Feb Mar

1000 KG

1000 KG

Sales of past 5 years(KG PD)

Paneer- Market Situation

• According to Amul sources, Indian fresh paneer market is estimated to be about Rs 10,000 crores, both in the organised and unorganised segments.

• In terms of volume, it is estimated to be around 1 lakh metric tonnes per annum and 80% of which is sold as open or loose paneer by local milk vendors.

• Paneer is the largest dairy product sold in terms of volume after liquid milk because of its universal acceptance across the Indian sub-continent.

Paneer market is clearly divided in two major segments

• (i) Retail Consumers(around 20%)• This segment consumes paneer in small • packets and is ‘quality’ as well as ‘price’ • sensitive segment.

• (ii) Institutions(around 80%)• This segment consumes in large chunks and it • is a highly ‘price’ sensitive segment

Capturing Market Insight (Market Survey)

• Goals of the Survey:

• To identify the ground realities of Paneer market and to know the trend & forces which drives the product sale.

• To develop a customer insight so that a better value proposition could be offered.

• To develop a better and effective value communication

system.

Project Dimensions

• To find the reasons behind low sales of paneer.

• To identify the potential market for paneer in Jaipur city.

• This project further seeks to identify and promote policies that will be supportive to tap the potential market for paneer in Jaipur city.

• To assess the effectiveness of the promotional tools currently being deployed.

• And to suggest ideas for promotions of Saras paneer.

Methodology:

• Focus group discussions and Brainstorming sessions with team members and the mentor.

• Carrying out a survey for finding out consumers’ perception about SARAS Paneer & Paneer of other brands and also to find out what they want. Also carrying out a survey of the paneer udyogs that command almost 80% of the market share to understand their way of doing business.

• Study of the existing advertising and promotional strategies and the loopholes in them.

• Secondary sources of data such as in house sales figures of paneer for the last 5 years as well as for the last 12 months.

• Analysis and recommendations.

Scope of the Survey

• 200 households(both users & non-users of Saras Paneer)

• 40 Hotels & Restaurants

• 50 Saras Booths & Parlours

• 30 Halwaiis & Confectionaries

• Random survey with a sample size of 6 Paneer Udyogs

Survey Results of 200 Households

Paneer Users

Saras Non-Users

Awareness (Saras Paneer)

Sources of Awareness (Saras Paneer)

Price Proposition (Saras Paneer)

Quality (Saras Paneer)

Packaging (Saras Paneer)

Reasons for not using Saras Paneer

Effect of Ads on Buying Behaviour

Notice Saras Paneer in the ads of Saras

Findings • We found out that on an average they sell 4.75 kg paneer per day and their rates

range from 150 to 170 rupees. We also found out that 21 out of 30 i.e. 70% of them prepare paneer by themselves where as 30% buy from Paneer Udyogs.

• We also visited 6 Paneer Udyogs to know their sales pattern, their rates and their way of doing business.

• Paneer Udyog – 500-600 kg per day• Rahul Paneer Centre – 400 kg per day• Neeraj Dairy Products – 400 kg per day• Aadinath Paneer Udyog, Durgapura – 150 kg per day• Aadinath Paneer Udyog, Sodala – 100 kg per day• Tyagi Paneer Udyog – 125 kg per day

– We found out that their retail rates range from Rs 150-170.– We found out that they do majority of their business by having yearly or half-

yearly contracts with Hotels & Restaurants. The rate which they offer to hotels & restaurants ranges from Rs 140-160

Questionnaire • Questionnaire for non-users of SARAS paneer • Questionnaire for SARAS Paneer Users• Questionnaire for Hotels \ Restaurants

Recommendations• Advertisements should convey the message that Saras Paneer is of the

best quality and comply by the PFA standard.There should be exclusive Advertisement.

• Reputed Ads agencies should be hired for making ads more attractive and persuasive.

• Supply to Saras booths should not be delayed for more than 1 day after the packaging date. Appropriate measures should be taken for this.

• Packaging should be more attractive and catchy.• Saras should 100 gm pack also.• Saras should venture into ready to eat market by producing delicacies like

muttar paneer,shai paneer ,mali paneer (both for exports as well as national sales).

Conclusion• Almost 80% of the paneer market is dominated by

paneer udyogs and there is a potential to increase our market share with proper marketing policies.

• We also found out that institutions i.e hotels and restaurants are the ones which we should target more as they are major consumers of paneer. Currently we are just focusing on retail consumers. For this Saras has to bring a change in the way it is doing its business.

• We should also think of exclusive advertising for Saras paneer with the right kind of media.

• Exports and Ready-to-eat market are some other avenues for increase in sale.

Bibliography

• www.sarasmilkfed.coop• www.retailnu.wordpress.com• www.tsmg.com• www.merinews.com• RCDF presentations, manuals and Annual

Progress Report

THANK YOU