UNIVERSITY OF MUMBAI

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(A Study on Marketing of Gowardhan Milk and milk Products in pune)

PROJECT UNDERTAKEN AT

(PARAG MILK AND MILK PRODUCT PVT.LTD.)

(DEPARTMENT: MARKETING)

SUBMITTED BY

SHRIKANT CHANDRAKANT KOTHAWALE

ROLL NO: 16

(2009-2011)

NCRD’S

STERLING INSTITUE OF MANAGEMENT STUDIES

Sector: 19, Near Seawoods Dharave Petrol Pump, Nerul (E)

Navi Mumbai: 400706

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PROJECT REPORT ON

“A Study on Penetration of Govardhan Milk and Milk Products in Retail Outlets of

Pune City”

(This study was conducted from 1st May to 30th June 2010)

Submitted At

Govardhan Milk and Milk Products Pvt. Ltd

Manchar, Pune.

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ACKNOWLEDGEMENT
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We would like to express our sincere gratitude towards Mr. Rajesh Patil Deputy
Manager Sales, Pune of Govardhan Milk and Milk Products Private Ltd. for the guidance
provided. This project would not have reached its end without the supervision and direction
which they gave. We thank them for spending their valuable time and energy in guiding us
throughout this project and for certifying us of our successful completion of the project
report.

We take this opportunity to express our deep gratitude to Mr Vikas Bhor Sales field
representative who has always been there to guide us throughout this project report. We
thank to the Department of Marketing Management and Human Resource for offering us this
opportunity.

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Index
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Sr. No. Page No

1 INTRODUCTION 5

2 EXECUTIVE SUMMARY 7

3 INDUSTRY PROFILE 8

4 INTRODUCTION AND HISTORY OF 11

COMPANY

5 OBJECTIVE AND SCOPE 30

RESEARCH METHODOLOGY
6 26

7 DATA ANALYSIS AND INTERPRETATION 28

LIMITATIONS OF THE RESEARCH

8 38

FINDINGS OF THE RESEARCH

9 38

SUGGESTIONS AND RECOMMENDATIONS

10 39

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 QUESTIONNAIRE
11 40

BIBLIOGRAPHY
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INTRODUCTION TO THE PROJECT

1.1 CONTEXT OF THE TOPIC

The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role because
purchasing power is depend upon availability of that product, in case distributors and
retailers service matter a lot.

A retailer or retail store is any business enterprises whose sales volume comes
primarily from retailing.

Market penetration is one of the four growth strategies of the Product-Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company
enters/penetrates a market with current products. The best way to achieve this is by gaining
competitors' customers (part of their market share). Other ways include attracting non-users
of your product or convincing current clients to use more of your product/service (by
advertising etc).

It was found that due to low consumption of milk, there is no more awareness of milk
product here It was the major cause to the low selling of “Govardhan” milk product. Like
that penetration level in the outlet of milk product was low.

Finally the whole study of the research work, the company needs the effective
advertisement of the product in the local channel and print media for awareness of
“Govardhan” milk in the Pune city.

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Promotion Tool Used

The consumer promotion tools mean the promotion activities, which are beneficial for
consumers as well as company. Such as price discounts, samples, cash refund, premiums,
prizes, cross promotion and coupons etc. We distributed it among customers and validity
kept seven days from issued.

 The consumers are seduced to buy the product.

 It helped to increase sales volume.

 Consumer can get good quality of goods in cheaper price.

 It can attract the new consumers and customers buying other milk brands.

 Attract brand switchers, who are primarily looking for low price, good value or
premiums.

 Turn switcher to loyal users,

 It induced to make some subsequent purchases.

 Give little permanent gain in market share.

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EXECUTIVE SUMMARY

Govardhan Milk, brand of the Govardhan Milk and Milk Products Private Ltd. is the
significant player in Pune in milk segment.

The project basic objectives are to estimate demand of Govardhan Milk and
promoting Govardhan milk in Pune at the same time. In today’s competitive world while
entering in the market it is very necessary to have good knowledge of the potential of a
particular market. The information regarding the activities of competitor’s existing in the
market so that we can plan our each activity according to that. Also it is necessary to retain
the existing customers apart from attracting the new customers.

The Project is concern with to determine the penetration level of Govardhan dairy
milk in Pune city. The project included as part of MMS Programme and the project is done
during the month of May and June.

The project was aimed to find out various strategies that can be implemented to
increase the Retail penetration of Govardhan milk in Pune Region. These strategies were
suggested after a research on the milk industry in Pune. There was questionnaire prepared for
retailers. The sample size was decided on 165 retailers by dividing group members to study
the various areas in Pune.

We encountered a little problem in collecting data as the retailers were reluctant in

providing any kind of information on their relationship with the distributor/company. Also to
ensure that the information was accurate, the retailer had to be cross questioned on many
occasions.

Basic analysis was done through pie charts and bar diagram to reveal the real picture
in the market in terms of percentage so that strategies could be thought upon the concrete

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 data that had been collected. These strategies were to be sought to be of benefit to the
company, the distributors, the retailers and the consumers.
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INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology
refers to the application of scientific knowledge for practical purposes. Dairy technology has
been defined as that branch of dairy science, which deals with the processing of milk and the
manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade
and India has now become one of the largest producers of milk and value-added milk
products in the world.

The dairy sector has developed through co-operatives in many parts of the State.
During 1997-98, the State had 60 milk processing plants with an aggregate processing
capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government
and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest
cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents,
and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and
increasing production in the country multinational companies are planning to expand their
activities here. Some of these milk producers have already obtained quality standard
certificates from the authorities. This will help them in marketing their products in foreign
countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum to around Rs.43, 500 crores by year 2005. This growth is going to
come from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products. By 2005, the value of Indian dairy produce is
expected to be Rs 10, 00, 000 million. Presently the market is valued at around Rs.7, 00, 000
million.

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India contributes to world milk production rise from 12-15 % & it will increase up to 30-35%
(year 2020) World’s Major Milk Producers (Million MTs).

Country 2002-03 and 2003-04 (Approx.)

Sr. No Country 2002-03 2003-04

1 India 81 84.5

2 Brazil 75 77

3 Russia 34 33

4 Germany 27 27

5 France 24 24

Development of Food Processing Industry:

The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of accorded it is a
high priority, with a number of fiscal relieves and incentives, to encourage commercialization
and value addition to agriculture produce, for minimizing harvest wastage, generating
employment and export growth. Food processing industry is providing backbone support to
the milk industry.

The development food products by using milk can give good market opportunities to
produces milk

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Products and Industry Status:

Among the products manufactured by organized sector are Ghee, Butter, Cheese,
Milk powders, Melted milk food, dahi etc condensed milk etc. Some milk products like
Casein and Lactose are also being manufactured lately. Therefore, there is good scope for
manufacturing these products locally. Liberalization of the economy has led to a flood of
new entrants, including MNC’s due to good prospects and abundant supply.

Major Indian and Overseas Players in the Food industry are:

 Hindustan Uni Lever Limited

 MTR foods limited

 Cadbury India Ltd.

 Godrej industries Limited

 PepsiCo India Holdings

 Govardhan

 Nestle India Pvt. Ltd.

 Dabur India Ltd.

 Britannia Industries Ltd.

 ITC Limited · Parle Products Pvt. Ltd.

 Agro Tech Foods.

 Parle Products Pvt. Ltd.

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 The major brands in milk and dairy products are:
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• Amul
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• Nestlé
• Mother Dairy
• Britannia
• Govardhan
• Gokul

Chapter 1

INTRODUCTION AND HISTORY OF COMPANY

INTRODUCTION

Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of
India's largest private dairies, with an output capacity of 1,000,000 liters per day.

Located in a lush green village called Manchar in Maharashtra (60 km from Pune),
and also owns the largest cow farm in India as well as Asia's largest cheese plant.

We are an ISO 9000 and AGMARK certified company, committed to international

standards of product quality. Our product portfolio includes Skim Milk Powder, Whole Milk
Powder, Ghee, Processed Cheese, Butter, Dahi, proprietary foods like Dairy Whitener and
Gulab Jaab, Govardhan Mix powder under the brand names of "Gowardhan" and 'Go' and all
made from 100% fresh cow milk.

A dairy plant consist of all manufacturing section used for milk treatment and
processing begins with milk reception and ending with dispatch of the finished products.
They operate within the framework of the milk regulation and consist of a production
program and regulation, flow sheet, energy flow sheet and functional descriptive.

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 The Genesis: He had a "Vision" to set up institution to help the famous of near village
to grow economically. He believed in this vision of faluire as he conceptualized marketing of
successful milk which was unused by the farming community to the village with his
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"PARAG MILK”.

Thus the pure intension of the entrepreneurship of Shri.Devendra Shah, PARAG

MILK & MILK Products Pvt. Ltd. is one of the most popular dairy in the state of
Maharashtra. It is located on NH 50, Pune-Nashik highway, 65 km from industrial city Pune,
near Awasari phata at western of Mancher. The factory spread over an area of 8 acres. The
company hosts plant and machinery supplied and erected by the world leaders "Alfa-
Laval" .Initially the plant was started with a handling capacity of 30.000 Liters/day. At
present the dairy handle milk upto 8 Lakhs Liter/day in lean season. It has an annual growth
of 50%.

Parag milk is a multi-products dairy plant manufacturing different milk products like
Ghee, Butter, Dahi, Chass, Liquid-milk, Skim Milk Powder, Whole Milk Powder, Dairy
Whitener, Real Milk Powder, Cheese ,Gulam JGovardhann ,UHT Milk, Cheese(Cheddar
cheese, Process cheese, Mozzarella cheese).It is an ISO-9001 HACCP certified company.
The brand name of is "GOWRDHAN" Company also has the certificate of MMPORC
No.310/r-MPO/2003.

Vision:

Infrastructure & Technology

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 Our commitment to quality and innovation has resulted in huge investments in
infrastructure and technology. Our integrated dairy and cow farm at Manchar, is rapidly
scaling up to cater to the ever expanding circle of customers in India, who seek all-natural,
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Dairy Plant, Manchar, Pune

The extensive ranges of our products are processed at this ultra modern dairy. Our
dairy plant is fully automated, of international standards and equipped with the best European
technology. Right from reception of milk to the finished product, we maintain strict no-
human-contact through the entire manufacturing process. Our plant churns out 1,000,000
litres of milk per day, has an output capacity upto 10 MT of butter, 25 MT of ghee and 10
MT of dahi (yoghurt) and 65 MT of milk powder.

DAIRY FARM

Gowardhan manufactures dairy products that are not just 100% natural , but also
lighter and rich in calcium.

That's because the milk, procured from its own cow farm - the largest in Asia - is
100% natural cow's milk.

What's more is the use of latest European technology in our manufacturing units
ensures the superior quality and freshness of our products, giving them the unique
Gowardhan taste and flavors.

The plant have the dairy farm also it have nearly about 2500 cows. Each cow gives
milks about 20 to 25 Liter/day.

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Products of the company

BUTTER

Definition:

According to PFA rules, table butter is the product obtained from cow or buffalo milk
or a combination of there of, from cream or curd obtained from cow or buffalo milk or ;
combination there of , with or without the addition of common salt.

Composition:

According to PFA rule, table butter should contain Fat-not less than 80% , Moisture-not more
than 16% , Salt-not more than 3% , Curd - not more than 1.5%

Chemical composition of Butter

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 Constituents Percentage
Moisture% 16
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Curd 2.5

CHEESE

Definition: According to PFA rules, cheese Composition: means the products obtained by
draining after the coagulation of milk with the harmless milk coagulation agent, under the
influence of harmless bacterial culture. The capacity of govardhans new cheese plant is 40
tons/day. It is the first largest plant in India and second largest in Asia. It is fully automatic
plant. The plant manufactures 3 types of cheese products are:

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•Chedder cheese

•Processed cheese

•Mozzarella cheese

Cheeder cheese:

Cheeder cheese is a ripened and hard variety of cheese. Cheddar cheese has the longest shelf
life as it is ripened after being made for six months. Fresh cheese prepared is called green
cheese and after ripping, it is called a curd cheese. All the other type of cheese have short
self-life as they have high moisture content and thus mold growth can occur easily.

Processed Cheese

Processed cheese is defined as a modified form of cheese prepared with the aid of
heat, salt and emulsifier to form a homogeneous plastic mass which packed hot.

Ingredient used: Sodium Citrate(900 g) , Salt (130 g) , Citric Acid (25 g) , Sorbic Acid(30 g)

CHEESE

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 Flow chart of chedder cheese :

Receiving milk in cheese vat --> Addition of Cacl2 --> Addition of Culture
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-->Heating of milk -->Addition of Rennet --> Coagulation of milk --> Cutting of
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curd --> Cooking of curd -->Curd Transfer to Alfomatic -->Salting of Alfomatic

--> Transfer of Block-former --> Cheese block discharge -->cheese block

weight --> cheese block vacuum sealing --> Cheese block pass from metal

detector --> Store in cold storage.

Processed flow chart for MOZZARELLA Cheese

Receiving of milk --> Filtration --> Chilling --> Standardization in storage

tank<10 c --> Bactofugation --> Pasteurization -->Preheating --> Transfer to OST

vat --> Setting -->Cutting -->Cooking --> Transerfer of alfamatic -->Removal of

whey --> Milling Transfer of stretching machine --> Cooking and streching -->

Molding -->Brining --> Vaccum packing --> Weight ment --> Ripeningin cold

storage --> Shredding -->Packaging --> metal detector --> Cartooning -->Storage

at-18 c --> dispatch.

CREAM

Definition: According to PFA cream, excluding sterilized cream is the product of cows or
buffalos milk or a combination of which contains not less than 25% milk fat.

Chemical composition of Cream-Water:68.2% , Fat:25% , Protein :2.54%, Lactose: 3.71%,

Ash :0.56%, TS :31.8 % ,SNF 6.8% .

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 Various types of cream:

1.Table cream
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20-25% milk fat
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2.Light cream 20-25% milk fat
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3.Coffee cream 20-25% milk fat

4.Wipping cream 30-40% milk fat

5.Heavy cream 30-40% milk fat

6.Plastic cream 60-85% milk fat

DAHI

Definition: According to PFA Rules dahi or curd is the product obained from pasterized or
boiled milk by souring , natural or otherwise by a harmless lactic acid or other bacterial
culture.

Chemical composition of curd- Water: 85-88%, Fat: 5-8%, Protein: 3.2-3.4%, Lactose: 4.6-
5.2%, Ash: 0.7-0.72%, Lactic Acid: 0.5-0.11%.

Flow diagram of dahi:

Receiving milk --> Pre heating --> Filtration/clarification -->Standardization -->

Pre heating (60°c) --> Homogenization (176Kg /sq cm) --> Pasteurization (80-90°c/15-
30min) --> Cooling(22-25°c) --> Inoculation --> Packing --> Incubation(40-50°c/6-8hrs) -->
Dahi --> Cooling and storage(<5°c).

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GHEE

Definition: - "Ghee may be defined as clarified butter fat prepared from cow or buffalo
milk."

According to PFA rule, ghee is clarified fat arrived solely from milk or from desi butter or
from cream of which no coloring matter is added.

Ghee section receives the pasteurized cream from unit 1. This cream is either chilled or
packed as finished product or the cream is used to manufacture ghee.

Ghee is manufactured by "PRESTRATIFICATION METHODE"

CHEMICAL COMPOSITIONS

Milk fat -- 99-99.5%

Moisture -- not more than 0.5%

Free fatty acid ( % oleic) -- max 2.8 (AGMARK)

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Specification of Ghee:-

Description:-

General: - Shall be pure, clarified milk fat obtained by cooking of cream, buter etc. Free from
sediment or foreign colouring matter.

Color- Shall be yellowish to golden yellow in colour.

Flavor- Should has a natural, sweet, pleasant odor, agreeable taste and shall be free from
rancid or other objectionable flavor

Texture:- The solid phase shall be of well defined granular structures.

Chemical:-

Percent fat (min) :- 99.7

Percent moisture (max) :- 0.30

Percent free fatty acid (as oleic acid) (max):-0.60

Butyro refract meter reading at 40°c: - 40 to 43

R M Value (min):- 28.0

Polanske Value: - 1.0 to 2.0

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 Baudouin test: - negative

Filling temperature: 40-45°c

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The phenolphthalein test: - negative.
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MILK POWDER

Dried milk or milk powder is product obtained by the removal of water from milk by heat or
other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted
milk or skim milk may be used for drying the dried products obtained from whole milk
(WMP).whole milk powder and that from skim milk is known as (SMP)skim milk powder.
There are mainly three powder plants namely P1, P2, P3 (10 tones, 15 tones, 25 tones).

WMP: According to PFA rules 1976 whole milk powder is the product obtain from cow or
buffalo milk or combination there of or from standardize milk by the removal of water. Milk
powder should contain moisture not more than 5%, fat not less than 26%,acidity not more
than 1.2% standard plate count not more than 50,000/g,coli from count not more than 90/g.

SMP: According to PFA rules 1976 whole milk powder is the product obtain from cow or
buffalo milk or combination there of or from standardize milk by the removal of water. Milk
powder should contain moisture not more than 5%, fat not less than 1.5%,acidity not more
than 1.5% standard plate count not more than 50,000/g,coli from count not more than 90/g.

Dairy whitener: Dairy whitener is the product obtain from cow or buffalo milk (skim milk) or
combination there of, by the removal of water. Milk powder should contain moisture not
more than 5%, fat not less than 18%,acidity not more than 1.5% standard plate count not
more than 50,000/g,coli from count not more than 90/g.

Dairy Top:

Dairy top is the product obtain from cow or buffalo milk (skim milk) or combination there
of, by the removal of water. Milk powder should contain moisture not more than 5%, fat not
less than 1.5%,acidity not more than 1.5% standard plate count not more than 50,000/g,coli
from count not more than 90/g.

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 Gowardhan launches summer OOH campaign for GO Fruit and Dahi
Fusion
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While the sweltering summer heat saps the energy out of people, brands are rolling out OOH
campaigns inviting them to try their thirst quenching or re-energizing products. Besides the
colas and nimbu sherbets, Gowardhan's flavoured yogurt (dahi), GO Fruit and Dahi Fusion,
have also joined the fray.
The brand has launched an outdoor campaign that invitingly displays
the yogurt's six different flavours, including two new ones, Mixed
Berries and Litchi.

Gowardhan, founded by Parag Milk and Milk Products in 1992, produces dairy products
such as cheese, milk, chaas, ghee, butter, dahi and flavoured dahi, using 100 per cent cow's
milk. Its plant is located in a village called Manchar in Maharashtra (60 km from Pune). Its
flavoured dahi products are currently available in Mumbai and Pune markets, with plans to
expand to other metros in cities.

The product is priced at Rs 20 for 125 gm and comes in six flavours, including Mango,
Pineapple, Banana, Strawberry, Mixed Berries and Litchi.

The thought for the outdoor campaign was to have a clean and clutter free creative, with
emphasis on the new product range launched under GO Fruit and Dahi.

Rahul Akkara, vice-president, marketing, Parag Milk Foods, tells afaqs!, "The creatives have
already started showing impact on sales and overall brand recall, but since it's just been about
a week since the campaign broke, I can't share sales figures just yet."

Bengaluru based creative agency Scion Advertising has worked on the minimalistic
campaign, while three outdoor agencies, Posterscope, Percept and OAP, handled the outdoor
media.

As the product is available only in these two cities, the company felt that outdoor would be
the right way to go. It has used 100 bus shelters in Mumbai and 12 in Pune, and three

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 hoardings in Mumbai and 15 in Pune, in addition to five AC buses in Mumbai. Akkara
informs that the ad spend on this outdoor campaign in the two cities was about Rs 50 lakh.

The campaign was launched about a week ago and is scheduled to run for a month. Akkara
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informs that following the campaign, placement in terms of shelf space has shot up by 50 per
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cent.

Also, last year (when the brand was launched), it specifically targeted women who lead an
active lifestyle with a tight schedule as the flavoured dahi would fit into their diet easily.
However, now, the brand is going further and targeting the entire family.

Akkara explains, "Targeting women becomes very niche and we decided to position the
brand on a larger platform. We are promoting GO Fruit and Dahi Fusion as a healthy and
easy snack, filled with rich sources of calcium, protein and highly beneficial bacteria for the
entire family."

He adds, "So, while women are still an important TG (target group), they also take care of a
family that needs such nourishment - thus it should be consumed by other members as well
and we aim that it becomes a part of their daily diet, whether consumed for breakfast, with
lunch or dinner, or as a snack."

GO enjoys 10-12 per cent of the market share in Mumabi and Pune. The flavoured yogurt
(dahi) market in India is fairly small and pegged at about Rs 50 crore, informs Akkara,
adding that Gowardhan's GO is valued at Rs 5-7 crore. Other competitors in the market
include Nestle's Fruit n Dahi, Amul's Yogi Dahi and Danone India.

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 Govardhan produces many products which are as below:

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Exports

Gowardhan exports milk powder, butter and butter oil, anhydrous milk fats and ghee to 27
countries in the Middle East, South East Asia and Africa. We are soon going to include
cheese in the product mix. Some of our significant customers include Yakult for our
skimmed milk powder and BEL, Morocco (world famous manufacturers of cheese).

Institutional Sales:

Gowardhan is a one-stop, efficient and reliable supplier to reputed hotels, restaurants,

institutions and caterers. The wide ranges of products we supply include cheese, butter, ghee
and milk powder. Each of these products comes with the Gowardhan assurance of purity and

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 quality. We have a national tie-up with companies like Baskin Robins, Barista, Café Coffee
Day etc.
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We have also expanded our retail presence significantly: Gowardhan and Go brands of are
now available at large retailers and modern retail outlets, reaching out to more and more
customers with the promise of a healthy, active life.

QUALITY ASSURANCE SECTION

"Quality is never an accident. It is always the result of high intensions, sincere effort,
intelligent direction & skillful execution."

Definition:-

Quality is defined as desirable attributes of a product, which are liked by the consumer. It is a
combination of characteristics that have significance in determining the degree of
acceptability of the product to a consumer. In simple words, one can say that a product has
good quality when it complies with the requirements specified by the client. This is

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 expressed by ISO definition: "The totality of features and characteristics of a product or
service that bear on its ability to satisfy stated or implied needs."
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Quality Assurance:-

According to ISO: "The assembly of all planned and systematic actions necessary to provide
adequate confidence that a product, process or service will satisfy gave quality
requirements."

Quality Control:-

Quality control refers to the adjustment of attributes within the prescribed limit. The purpose
of the quality control is general into ensure the production and distribution of the products
within well defined and accepted standards at an agreed level there by protecting the health
and legal rights of consumer and financial interest of the manufacturer. It is a major part of
quality assurance. According to ISO, "The operational techniques and activities that are used
to satisfy quality requirements."

Quality Control Laboratory:- The first function of quality control laboratory is taken the
sample of the testing. Though each dairy has separate section of quality control and people
working in this section are made responsible for evaluating the quality of the finished goods.

There are two main quality control /assurance laboratories at Parag dairy. They are as
follows:

• RMRD Laboratory

• Main Laboratory

RMRD Laboratory: Here the quality of incoming milk is judged and grading under good,
sour and curdle. The tests performed at the lab provide record for the payment of milk
producers.

The tests performed are:

• Organoleptic Test

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 • Fat and SNF

Main Laboratory: Main laboratory is the heart of the Parag dairy, Manchar. The quality of
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milk and milk products are maintained by main laboratory .The main laboratory is divided
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into two sections:

• Chemical Quality Assurance

• Microbiological Quality Assurance

The various activities of main Laboratories are as follows:-

Tests for:-milk, butter, ghee, dahi, powder, cheese, water, raw material, packing material.

MARKETING

The company is holding domestic markets. Except it is the products of the company are
exported in the major countries as listed below:

•Algeria

•Bangladesh

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 •China

•Dubai
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•Gabon

•Iran

•Lebanon

•Morocoo

•Myanmar

•Nigeria

•Pakistan

•Phillipines

•Saudi Arebia

•Thialand

•Turkey

Competitors Profile

Gokul

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular
brand ‘Gokul‘ is an Operation Flood cooperative dairy project established on 16 th March
1963. Since then achieved many land marks in Milk Procurement, Extension, Animal Health,

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 Breeding, Milk Processing, Product making and Marketing. At present Gokul has modern 7
Lakh Liters/day capacity dairy plant with 4 owned and 1 hired chilling centers having 4.25
Lakh
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Mahanand Milk

Mahanand Milk, the World-Wide Taste of Happiness. Mahanand Dairy is the Largest
Cow Milk packing and distributing dairy in Asia. Mahanand Dairy is always related to any
breakthrough or advent in the Milk Production and Dairy Technology in India. Mahananda
has launched Mahanand Parijatak Scheme.
At present Mahanand Dairy is distributing 8.5 Lac Liters milk per day through 722
milk distributors (Ex Dairy Distributors -174 and shop Distributors, Commission Agents etc.
- 548).

Arey

During Second World War to prevent of malnutrition pregnant ladies and children
due to food shortage, Municipal Corporation of Mumbai started milk distribution system.
Each female used to get half liter of milk. This scheme was operational till 1946. After that
civil supply department was operating this scheme.

As there were no facilities for boiling the milk, raw milk was supplied to British
soldiers, officers, and employees. They were not used to drink raw milk which created health
problem for them. The cattle sheds of Mumbai were in unhygienic conditions and
rearing/nursing of cattle was done in unscientific ways. Due to this health problems surfaced
in the nearby locality. To rehabilitate cattle shed of Mumbai in a more scientific way and to
encourage clean milk production, in the year 1949, Arey Milk Colony was established.

Warana

The dairy plant has a capacity to handle more than 300,000 liters of milk of which
100,000 liters can be converted into milk products. A clean and efficient management of
dairy brought the proud products of Warana like Warana pasteurized Milk, Milk Powder,
Ghee, and Butter

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 The turnover for the year 1997-98 was Rs. 138 cores. By selling 2035 tones of
Shrikhand in the year 1998, Warana reached a new record of maximum selling of Shrikhand
in India. For its qualitative and quantitative excellent performance dairy has acquired an ISO
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Summer 9002 Certification in record time of three months.

Mother dairy

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.

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 chain of 400+ own Fruit and Vegetable shops
and more than 20,000 retail outlets in various parts of the country. Fresh produce from the
producers is handled at the Company’s modern distribution facility in Delhi with an annual
capacity of 200,000 MT.

Chapter 2
OBJECTIVE AND SCOPE
1. OBJECTIVES OF THE REPORT
The main objective of the Study can be listed as follows

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 A.PRIMARY OBJECTIVE
1. To find size of retail network of Govardhan Gold and Go dahi in specific areas of
p Project Pimpri-Chinchwad (Pune) city or penetration level of Govardhan Milk in Pimpri-
Internshi
Summer Chinchwad (Pune) city.
2. To find the problems faced by retailers in selling and storing.
3. To collect the information about the competitors

B.SECONDARY OBJECTIVE
1. To organize sale promotional activities to improve milk and dahi sales.
2. To generate and secure consumer awareness.

2. SCOPE OF PROJECT
The study carried out in Pimpri-Chinchwad (Pune) city so, its scope is mainly limited to
Pimpri-Chinchwad (Pune) city.
 It gives information about the size of the retail network.
 It gives information about the services given by distributor to their retailer.
 It gives information about the competitors’ products
 It will serve consumer in better manner.

Chapter 3
RESEARCH METHODOLOGY
RESEARCH DESIGN FOLLOWED

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 Descriptive Research is the research method used because descriptive studies
embrace a large proportion of market research. The purpose is to provide an accurate
snapshot of some aspect of the market environment. Descriptive research is more rigid than
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Summer exploratory research and seeks to describe users of a product, determine the proportion of the
population that uses a product, or predict future demand for a product. As opposed to
exploratory research, descriptive research should define questions, people surveyed, and the
method of analysis prior to beginning data collection. In other words, who, what, where,
when, why, and how aspects of the research should be defined.

SAMPLING:-
SAMPLING TECHNIQUE USED
In this project the technique of sampling used was Judgment sampling. Judgment
sampling involves the choice of subjects who are most advantageously placed or in the best
position to provide the information required.

SAMPLE UNIT
In this project case sample were the retailers in Pimpri-Chinchwad (Pune) region
& the aim was to know the penetration level of Govardhan milk and the competitors present
in the market.

SAMPLE SIZE: 165 Retailers.

DATA COLLECTION TECHNIQUES
 SOURCES OF DATA

PRIMARY DATA
To collect primary data from Retailer’s Questionnaires were used. Questionnaire was
prepared very carefully so that it may prove to be effective in collecting the right
information.

SECONDARY DATA

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 Secondary data collected from different website. This secondary data formed the
conceptual background for the project. This secondary data was compared with the primary
data collected in area.
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RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through interviews.

5) Total Retail Outlets of Govardhan & its Competitors

No of
Organization % Market Share Retailer
Warna 33% 47
Gokul 22% 22
Arey 14% 19
Loose 11% 16
Mahanand 7% 10
Mother dairy 3% 4
Gowardhan 6% 17

Reasons for Govardhan milk not stored by retailers.

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 Answer No. of respondents
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Not Regular Supply
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Summer

No One has Asked 8

Not Allowed 18

Replacement 3

Retailers Margin 24

Not Demanded by Customers 5

Response of Retailers When Asked for Order.

INTERPRETATION:
1) Most of them were not interested because of their relation with past
distributor and retailer’s margin.

2) Some of them has given order

3) Few of them tell that they will think in future regarding order.

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 Chapter 5
LIMITATIONS OF THE RESEARCH
p Project
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Summer

 Time period of the project was 8 weeks, which may not be enough to understand the
whole market.

 Respondent hesitate to give true response to question.

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 Chapter 6
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FINDINGS OF THE RESEARCH
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Pimpri-Chinchwad territory is mainly distributed into two main parts Pimpri and
Chinchwad.
Chinchwad is having relatively less no of retailers as compared to Pimpri, but from
the research it was found that in this market loose milk is more popular and this market is not
covered by milk distributing companies.
Retailers were selling different brands. Because they were able to receive more
margin from non popularized brand that they could not from well known brands.
Measurable amount of retailers were not happy with the distributors, because of
frequent change in distributors and late delivery of milk.
All retailers were familiar with sales promotion activities undertaken by Govardhan.
But some of the retailers were complaining about cheating during scheme as they didn’t get
discounted amount back.
Some retailers were interested in the Gowardhan’s exclusive stall.

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 Chapter 7
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SUGGESTIONS AND RECOMMENDATIONS
The Milk products market has reached Maturity stage in India large no. of
Cooperatives having a variety of product range has entered the market, thus there is one way
for Govardhan to sustain their milk business in the market by delivering outstanding
satisfaction to their retailers, so that they can take interest in selling of Govardhan milk
products.
This can be done as follow
• Govardhan has a relatively good distribution network, but still company is not able to
fulfill the demand of outlet in the peak season when demand is very high. Here
company should consider on the supply of product in the peak season.

• Company should make new product i.e. scented milk which has more demand in
market.

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

• 250 ml milk pouch should make available to more extent to retailers for selling,
because lower income family has intention to buy small pouch milk.

• Provide reasonable Margin to retailers as compared to competitors, this motivates

them to promote company’s milk and milk products.

• Improve delivery schedule to provide products on time for the retailers about who
claimed that Govardhan milk and other products are not available to them on time.

• Incentives & schemes should be given to the retailers and some scrutiny should be
follow to check the scheme get being communicated properly by distributors or sales
person.

• Company should provide advertising facility like outside wall painting; provide
company’s stand boards, Posters which help to sell Govardhan milk.

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 • Provide consistent service to retailers as this will help gain company goodwill in the
market.
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• Do not change distributor frequently, because he is the only person who act as a
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connecting link between company and retailers.

• Do not place more than one distributor in same market area.

RECOMMENDATIONS
• From above research it is clear that there is a need for Point Of Purchase display
programme for retailers of Govardhan. Also, I have seen few advertisements at the
retailers which can make consumer aware that product exists. Their shelf display was
also poor i.e. Products are placed at backside of shelf, which directly affect sales as
all products are impulse. And most products being seasonal we really need to make
product visible everywhere, at least at retailer’s place.

• When I put myself into consumer’s shoe, generally I don’t go into a shop to drink
Govardhan’s beverage. I go there because I am thirsty, now if our display is poor, I
am going to buy that beverage which has consisted most share of mind (SOM) which
is decided by communication mix and factors (reach, impact and frequency) of that
communication tool (TV, radio, print, other medium) used or by advertisement at
point of purchase (pop).

Example- If I am thirsty and going to shop to drink something and if I see some Govardhan’s
products POP (Poster etc.), I‘ll most likely to buy Govardhan’s product. So if we work more
on POP displays, which I think will help Govardhan to sale better in season.
• In today’s cut throat competition POP displays aren’t option but compulsion to get
maximum sales.

-If we see Govardhan beverage’s competitors are as:-

 Water

 Pepsi products

 Coca-Cola products

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  Juices

p Project  Local cold drink manufacturers

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 Street Hawkers selling Nimbupani etc.

Summer

-We can classify all these into 3 main categories as:-

 Competitors

 Substitutes

 Threat of new entrants

In this cut throat competition all are trying to eat same pie. POP can help us to fight back.
And I think today extensive use of POP is not an option for us, it is rather compulsion for us
because our competitors are doing it and that is helping them to attract some of our
customers.
• In warehouse while staking the products, on the boxes instructions are clearly
mentioned about maximum no. of boxes which can be staked one above other but
here these instructions are not followed which can increase waste. So distributor’s
should be made aware about this and asked to instruct concern person to follow the
instructions on boxes strictly.

• Recommendations for handling sales force:-

1) We know,
Total sales volume per day= Order per retailers X No. Retailers covered
Now based on this we can increase the sales in two ways as-
 Increasing volume of order from each retailer:

• By using personal salesman skills

• By using personal contacts

• By taking help of our products which are sold under Pull Factor i.e. Go
Dahi or no. Of boxes of buttermilk will be decided on the basis of order
volume of other products from same retailers. Because they cannot afford
not to keep that product.

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 • Make good use of schemes to push products.

p Project  Increase the no. Of retailers covered per day

Internshi

• By adding new 5 shops per day to your earlier list of retailers visited per day
Summer

(+ 5 FORMULA )

• By adding snacks centers, college canteens, small hotels etc.

2) As per my observation, salesman is finding it a bit difficult to push our products harder
when it comes to –
 very low margins for all our products as compared to our competitors

 our no replacement strategy

 no credit facility available

So salespeople should follow the below mentioned approach for getting orders from
retailers:-
 Likely arguments done by them and probable answers for them

 How to make use of schemes to push our products

 Average targets to be achieved for each beat

3) I think to deal with this we can train our salesman or at-least give a structured speech to
talk for all these problems. I believe these are such problems which cannot be removed but
only be managed. So such structured speeches can make our salesmen better equipped to
manage such situations and keep getting larger sales orders. Also it can help us by avoiding
any chance of brand erosion even in minds of the retailers
OPERATIONAL PROCEDURES FOR IMPLEMENTATION OF THE
RECOMMENDATION
Our markets can be segmented along 3 lines:-
• Kirana shop Volume
• Chemist’s product portfolio
• Hotel Cluster

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p Project
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Summer

1. On basis of Kirana shop volume-

• Economy
• Deluxe
• Super Deluxe

2. On basis of Hotel Cluster-

• Convenience
• Snack Centers

3. On basis of Chemists Product Portfolio-

Where
• Economy= retailers having sales volume above average per day for that distributor
• Deluxe= retailers having sales volume average per day for that distributor
• Super Deluxe= retailers having sales volume below average for that distributor

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 • Convenience= includes outlets which are small eating centers, generally accessible
locally. These are often located alongside busy roads. Here one can stand and does
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not have place to sit. It includes STD booths/Pan-Beedi shops/Bakery/Sweet
Summer
Shops/Juice centers/Soft Drinks Shops/Tea Shops etc.
• Snacks Centers= includes outlets selling items to eat and the outlet should have place
to sit. It includes sit down restaurants/Bars/Dhabas/Cafes etc.

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Questionnaire
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Some photos
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Summer
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p Project
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Bibliography

 www.govardhanindia.com

 www.google.com

 www.wikipedia.org

 Marketing Management by Philip Kotler

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