PROJECT REPORT ON

Market Analysis & Strategy proposition of Mother Dairy

At
MOTHER DAIRY PVT.LTD, DELHI

Submitted By:
Roman Kattel

Under Guidance Of:

Mrs.Sonal Goel (Asst. Prof.)

03221001911
BBA(CAM) 5th
2011-2014

IDEAL INSTITUE OF MANAGEMENT AND TECHNOLOGY

ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Mother Dairy Pvt.
Ltd. Delhi. It has been an enriching experience for me to undergo my summer training at
MOTHER DAIRY, which would not have possible without the goodwill and
support of the people around. I would like to express my sincere thanks to all those who
helped me during my training program.

I would liketo express my gratitude to all those who gave me the encouragement to complete
this project. I would like to thank my college authorities, for providing me the opportunity to
work with the one prestigious organization.

I would like to give my heartily gratitude to the Mr. Sandeep ghosh, General Manager
(SALES), Mother Dairy Pvt. Ltd., Delhi for having given me the opportunity to do my
project work in the organization and lighted my way of progress with his guidance.

My sincere and deepest thanks to Mrs. Sonal Goel and , Faculty Member of IIMT, for
having spared his valuable time with me and for all the guidance given in executing the
project as per requirements.

However, I accept the sole responsibility for any possible error of omission and would be
extremely grateful to the readers of this project report if they bring such mistakes to my
notice.

(Signature of student)
Roman kattel

DECLARATION

I hereby declare that the following project report titled Market Analysis & Strategy
proposition for Mother Dairy milk in Institutional Business in Delhi- NCR at Mother
Dairy Pvt. Ltd., Delhi is an authentic work done by me. It is to the best of my knowledge
and belief. This is to declare that all my work indulged in the completion of this Project
Report such as research, competitor analysis and sales promotion is a profound and honest
work of mine.

Roman kattel
03221001911
BBA(CAM)
2011-2014
Ideal Institute Of Management And Technology

TABLE OF CONTENTS:

Sr. No.

Subject

Page No.
8

Chapter 1

INTRODUCTION
9

1.1
Chapter 2

MILK INDUSTRY AND COMPANY PROFILE

RESEARCH METHODOLOGY

22

26
Chapter 3

DATA PROCESSING AND ANALYSIS

41

Chapter 4

FINDINGS AND CONCLUSION

42

Chapter 5

RECOMMENDATIONS
44
BIBLIOGRAPHY
45
ANNEXURE

EXECUTIVE SUMMARY
In todays 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 competitors existing in the market so that we can plan our each activity according to
that. It is also necessary to retain the existing customers apart from attracting the new
customers.
The Project is concern with the market analysis & sales development of Mother dairy milk in
Delhi and NCR region.

1.1 Title:
Market Analysis & Strategy proposition for Mother Dairy Milk in Institutional Business in
Delhi-NCR region.

1.2 Organization:
Mother Dairy India Pvt. Ltd, New Delhi.

1.3 Objective:
The Primary objective of study was to find size of mother dairy milk Institutional business of
Mother dairy milk in specific areas of Delhi-NCR region. In the study my intention was go
through the Institutional sales of milk network of Mother dairy milk to know distributors and
Institutions view about supply chain of Mother dairy milk, to know the complaints of Mother
dairy milk and to find the suggestions from Institutions for more penetration of Mother
dairy milk in Delhi-NCR region.

The secondary objective was to find customer (Institution) response towards Mother
dairy milk. My aim was to go through the customers to know the interest of purchasing
& using Mother milk. Basically the study was for the demand of Mother milk among the
customers. And also to know the complaints on Mother dairy milk.

1.4 Research Methodology:

Research type was descriptive. The research was done through Institutions. I have collected
the primary data through questionnaire which was filled by Institutional customers. Questions
were both open and close ended. The secondary data was collected from website
www.motherdairy.com.
Sampling done is non-probability sampling. The type of sampling method was Judgment
sampling.

1.5 Findings:
In Delhi-NCR region there are many major players of liquid milk exist. Those are like
Mother, Vita, DMS, Verka, Saras, Paras, Gopalji and many other local brands.
As per the findings Mother Dairy is the Market leader and having more market share.
Mother Dairy has estblished a great name in milk and milk products market segment in
Delhi-NCR region. The sale is totally depends on the distributors and retailers.

1.6 Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of Mother dairy
milk. It gives information regarding their market share.

1.7 Conclusion:
It was concluded that Mother dairy milk i.e. Single Toned milk has a high potential in
the market and it is the known to its customers and its acceptance is comparatively higher as
of other variants and competitors present in the market, most of the consumer continuously
using Mother Dairy milk brand and they do not want to switch over to other brand.

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

From chronic shortages of milk, India has emerged today as the largest producer of milk in
the world crossing 97 million tonnes. It is 'The Oyster' of the global dairy industry. It
offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the
world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls'
awaits the international

dairy processor in India. The Indian dairy industry is rapidly

growing, trying to keep pace with the galloping progress around the world.

The effective milk market is largely confined to urban areas, inhabited by over
25 per cent of the country's population. An estimated 50 per cent of the total milk
produced is consumed here. By the end of 2007, the urban population is expected to
increase by more than 100 million to touch 864 million in 2007 a growth of about 40 per
cent. The expected rise in urban population would be a boon to Indian dairying. Presently,
the organized sector both cooperative and
private and the traditional sector cater to this market.

INDIAN DAIRY INDUSTRY - A PROFILE

Indias dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come nto force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. 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 cent. 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.83,500 crores by year 2010. 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 2010, the value of Indian dairy produce is
expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000mn
.

Background of Dairy Industry

Beginning in organized milk handling was made in India with the establishment of Military
Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the
country on a small scale in the early stages. Long distance refrigerated rail-transport of
milk from Anand to Bombay since 1945.
Pasteurization and bottling of milk on a large scale for organized distribution was started at
Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over
India. These were taken up with the dual object of increasing the national level of milk
consumption and ensuing better returns to the primary milk producer. Their main aim was
to produce more, better and cheaper milk.

Milk Production
India's milk production increased from 21.2 million MT in 1968 to more than 100
million MT in 2008-09.
India is the largest producer of Milk in the World (replacing USA) Per capita
availability of milk presently is 250 grams per day, up from 112 grams per
day in 1968-69.
India's 3.8 percent annual growth of milk production surpasses the 2 per cent
growth in population; the net increase in availability is around 2 per cent per year.

Innovation
Bulk-vending - saving money and the environment. Milk
travels as far as 2,200 kilometers to deficit areas, carried
by innovative rail and road milk tankers.
Ninety-five percent of dairy equipment is produced in
India, saving valuable foreign exchange.

Macro Impact
The annual value of India's milk production amounts to about Rs. 900 billion.

Dairy cooperatives generate employment opportunities for some 12 million farm

families.
Dairy Farming is the single largest contributor to the economy(5% of GDP &13%
of employment)
Dairy industry represents a huge opportunity being the largest single FMCG
Market.

Key challenges before Indian Dairy Industry are as follows:

Ensuring Quality
Procurement and efficiencies in supply chain
Product differentiation and value addition.

OPERATION FLOOD
Programme implementation:
Operation Flood was implemented in three phases.

Phase Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter
I

oil gifted by

the

European Union then EEC through the World Food

Programme NDDB planned the programme and negotiated the details of EEC
assistance.
During its first phase, Operation Flood linked 18 of India's premier milksheds
with consumers in India's four major metropolitan cities: Delhi, Mumbai, Calcutta
and Chennai.

Phase Operation Flood's Phase II (1981-85) increased the milk sheds from 18
II

to 136; 290 urban markets expanded the outlets for milk. By the end of
1985, a self-sustaining system of 43,000 village cooperatives covering
4.25 million milk producers had become a reality. Domestic milk
powder production increased from 22,000 tons in the pre-project year to
140,000 tons by 1989, all of the increase coming from dairies set up
under Operation Flood. In this way EEC gifts and World Bank loan
helped to promote self-reliance. Direct marketing of milk by producers'
cooperatives increased by several million litres a day.

Phase Phase III (1985-1996) enabled dairy cooperatives to expand and

III

strengthen the infrastructure required to procure and market increasing

volumes of milk. Veterinary first-aid health care services, feed and
artificial insemination services for cooperative members were extended,
along with intensified member education.

Operation Flood's Phase III consolidated India's dairy cooperative movement,

adding 30,000 new dairy cooperatives to the 42,000 existing societies organized
during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of
women members and Womans Dairy Cooperative Societies increasing
significantly.
From the outset, Operation Flood was conceived and implemented as much
more than a dairy programme. Rather, dairying was seen as an instrument of
development, generating employment and regular incomes for millions of rural
people. "Operation Flood can be viewed as a twenty year experiment
confirming the Rural Development Vision" (World Bank Report 1997c.)

HISTORICAL BACKGROUND OF NDDB

The National Dairy and Development Board was founded in 1965, with the
mission of organizing poor milk producers, thereby transforming dairying into
an instrument for the economic development of Indias rural people. The
formation of the NDDB stemmed from the vision of the then Prime Minister of
India, the late Lal Bahadur Shastri, to extend the success of the Kaira
Cooperative Milk Producers Union (in the state of Mother) to other parts of
India.
NDDB began its operations with the mission of making dairying a vehicle to a
better future for millions of grassroots milk producers. The mission achieved
thrust and direction with the launching of "Operation Flood" in 1970, a
programme extending over 30 years and which used World Bank loan to
finance India's emergence as the world's largest milk producing nation. During
this period, dairy commodity surpluses were building up in Europe. Imports
from Europe had already adversely affected the dairy industry in India. Imports
by individual players in India would have resulted in a market glut and a fall in
the prices throughout the country. With the backing of government policy, and
with the assistance of the World Food Program, NDDB imported food aid in the
form of milk powder and butter oil, and marketed it under its own brand name.
The surplus from these sales was invested in the expansion of the cooperative
movement in the dairy industry.Operation Flood's third phase was completed in
1996 and has to its credit a number of significant achievements.
Since its inception, the Dairy Board has planned and spearheaded India's dairy
programmes by placing dairy development in the hands of milk producers and
the professionals they employ to manage their cooperatives. In addition, NDDB

also promotes other commodity-based co-operatives, allied industries and

veterinary biologicals on an intensive and nation-wide basis.
NDDB's subsidiaries include Mother Dairy, Delhi.

Major Players
There are virtually 15 major Dairy Cooperative Federations in India, namely:
1) Andhra Pradesh

Dairy Development Cooperative Federation Ltd

(APDDCF)
2) Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)
3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
4) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)
5) Himachal Pradesh State Cooperative Milk Producers' Federation

Ltd
(HPSCMPF)
6) Karnataka Cooperative Milk Producers' Federation Ltd (KMF)
7) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)
8) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
9) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)
10) Orissa State Cooperative Milk Producers' Federation Ltd (OMFED)
11) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
12) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED)
13) Rajasthan Cooperative Dairy Federation Ltd (RCDF)
14) Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF)
15) West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)

National Dairy Development Board (NDDB) is the central cooperative board of

the country and was created to promote, finance and support producer-owned
and controlled organizations mentioned above.

Two main players Mother of GCMMF and Mother Dairy of NDDB is the
leading brand in India. Our main focus is to analyze the strategic move of
NDDB for mother Dairy from top to bottom. Thus we are going to concentrate
on the progress of Mother Diary and NDDB for their future strategies.

OVERVIEW OF THE MOTHER DAIRY

Mother Dairy Delhi was set up in 1974 under the Operation Flood
Programme, a wholly owned subsidy of the National Dairy Development Board
(NDDB), whose current chairman is Dr. Amrita Patel. Currently, it is one of the
largest milk (liquid/unprocessed) plants in Asia selling more than 27 lakh litres of
milk per day, out of 50 lts of milk consumed daily in Delhi, thereby enjoying a
market share of 66% of the branded milk sales in Delhi. Other important
markets include Mumbai, Saurashtra and Hyderabad. Mother dairy ice-cream
was launched in the year 1995 and has shown continuous growth over the years,
and today it boasts approximately 62% market share in Delhi and NCR.

It is Mother Dairys 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. To ensure this Mother Dairy
operates such that the farmer gets 85% of the total cost of sales.
(b) Uphold institutional structures that empower milk producers and farmers
through processes that are equitable.

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

Objectives and Business Philosophy of Mother Dairy

The main stakeholder of Mother Dairy was the farmer member for whose
welfare it existed. Unlike other organizations, their objective is not to maximize
the profit. They are more interested in giving the best price for the farmers for
their milk than in making a large profit. Thus they look at the price given to
their suppliers as not a cost but as an objective.
Mother Dairy had, as its main objective, carrying out activities for the
economic development of agriculturists by efficiently organizing marketing of
milk and dairy produce, agricultural produce in raw and/or processed form and
other allied produce. This was to be done through:
Common branding
Centralized marketing
Centralized quality control
Centralized purchases and
Pooling of milk efficiently
Mother Dairy had declared, as its business philosophy, the following:
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;

uphold institutional structures that empower milk producers and farmers

through processes that are equitable.
The biggest strength of Mother Dairy was the trust it had created in the minds of
its consumers regarding the quality of its products. NDDB, and its brand Mother
Dairy, stood for guaranteed purity of whatever products it had produced.
Adulteration was simply not done in any of its products. In India, where such
trust was hard to come by, this could provide a central anchor for Mother
Dairys future business plans. For more than 40 years' Mother Dairy helping to
create a national network has been adapted and extended to other commodities
and areas. Their constant effort to learn and to enrich experience is central to
their approach and capacities. In times to come, Mother Dairy shall strive to
become a leading player in the food industry in India.

Product Profile
S.No.

Product Name

Brand Name

Items

1.

Milk and its Products

Mother Dairy

Packaged
Milk
(Full
Cream,
Standardised, Toned, Double Toned
Skimmed and Pro-biotic), Butter, Dahi,
Ghee, Cheese, Ice-Creams, UHT Milk,
Lassi & Flavoured Milk.

2.

Edible Oils

Dhara

Refined Vegetable Oil, Refined

Soybean Oil, Refined Sunflower Oil,
Refined Rice Bran Oil, Kachi Ghani
Mustard Oil and Filtered Groundnut
Oil.

3.

Fresh and frozen fruit and Safal

vegetable products

Fruits, Vegetables, Rice, Processed

items (jams, juices, ketchup, pulp, etc.)

Mother Dairys has a varied range of products. The different products categories
are explained below:
MILK:
Packaged Milk is available in 5 different variants:
1. Full Cream milk - milk fat 6%, SNF 9%
2. Standardised milk - milk fat 4.5%, SNF 8.5%
3. Toned milk - milk fat 3%, SNF 8.5%
4. Double toned milk - milk fat 1.5%, SNF 9%
5. Skimmed milk - milk fat 0.5%, SNF 8.7%
Other than packaged milk, Bulk Vended Token Milk is also available which is
distributed through vending machines installed in different regions of the city.
The high quality variant of milk is also available under the brand name of
MILK. It is thick & completely natural, containing no preservations. It is
referred with name of UHT (Ultra Heat Treatment) Milk.
Mother Dairy also manufactures flavoured milk under the brand name of
CHILLZ. It is available in three flavours namely Kesar Elaichi, Vanilla and
Chocolate flavour.
Milk Products:
Various milk products of Mother Dairy are:
1. Mother Dairy Ghee
2. Mother Dairy Butter
3. Mother Dairy Cheese
4. Mother Dairy Dahi (Curd)
5. Mother Dairy Lassi

Except all these milk products Mother dairy also manufactures Ice Cream
under two categories namely CHILLZ and Mother Dairy Ice Cream.
PROBIOTIC:
It is the latest product range launched by Mother Dairy. It mainly contains
BB-12 friendly Bacteria which results in better digestion and absorption of
nutrients. It also contains probiotic fibre which also results in better
digestion. The various products in this category are:
1. b-Activ Probiotic Dahi
2. b-Activ Probiotic Lassi
3. b-Activ Curd
4. Nutrifit (Strawberry & Mango)

SAFAL: Range of fresh foods & vegetables, frozen vegetables, fruit pulps and
fruit juices etc.

DHARA: It has a popular range of edible oils in different types as refined soya
bean oil, refined sunflower oil and filtered ground nut oil etc.

Distribution Channel of Milk in Delhi- NCR

Patparga
nj

BVM Tankers
MS

Meeru
t

C
S
MMS

Jind
Rohta
k

FS

RS

IC
Alwar

PPM Vehicles

M
E

Distributo
rs

Retailer

Noida
DMS

R
S

Cash
Route

Retailer

Moder
n
NDR
I

*MS- Milk Shop

S
U

B.
Garh

Kiosks

MMS-Mini Milk Shop

CS-Combined Shop

FS- Franchisee Shop

RS-Retail Shop

IC-Insulated Container

OBJECTIVE & SCOPE OF THE STUDY

Objectives of Project:
The main objective of the Study can be listed as follows:A. Primary Objective
1. To find market size of Mother dairy milk in Institutional business in DelhiNCR

region.

1. To find the problems faced by Institutions in milk purchase from mother

dairy and other competitors.
2. To collect the information about the competitors.
B. Secondary Objective
1. To propose strategies for sales promotional activities to improve Institutional
milk selling.
2. To generate and secure consumer awareness among Institutions .
Scope of Project:
The study carried out in Delhi-NCR so its scope is mainly limited to Delhi and
Gurgaon-NCR.
1. It gives information about the size of the retail network.
2. It gives information about the services given by distributor to their retailer.
3. It gives information about the competitors products.
4. It will serve consumer in better manner.
5. It provides suggestions to the company to improve their products sales.
6. It gives information about the sales promotion activities to improve the milk
Sale.

RESEARCH METHODOLOGY
5.1 Research Methodology:
The research was conducted from 15

th

th

May to 15

July 2010. The research

include meetings with the Institutions. It included preparation of the

questionnaire to be answered by above people for knowing the competitive
position of Mother dairy in the Institutional milk market. The views of the
above parties were recorded in the research as per the questionnaire set by us.
5.1.1 Research Approach:
The objective was to know the competitive position of Mother dairy

in the

Institutional milk business market thus in order to successfully conduct the

research the unbiased opinion of the above parties was desirable. Thus we
conducted the research as the representative of Mother dairy company and
sometimes the representatives of the other company like Amul or Paras in order
to have an unbiased opinion of the concerned persons and it worked to achieve
our goal.
5.1.2 Research Instrument:
The research instrument was the structured questionnaire formulated for the
respondents. There were also the area maps.
5.1.3 Types of Question:
The second important aspect in the designing a question is to decide which
types of question are to be used. Question can be classified in various ways.
Questionnaire contains following type information1. Open-ended question
2. Dichotomous question
3. Multiple-choice Question

Both the questionnaire consists of all three types of question. Mostly all
questions are multiple type questions. Dichotomous question are few in number.
There is only one open-ended type question.
5.1.4 Phrasing of Question:
In questionnaire, I try to phrase the question in logical way. For example I
arrange question in sequence as personal information, awareness data, usage
data, and finally related to reason and satisfaction.
5.1.5 Sampling Plan:
Sample Size:
The sample size was as of 210 Institutions which includes Hospitals, Hotels and
restaurants, Schools and colleges, NGOs, Offices and Companies etc.
Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type
of respondent within every stratum the respondents was selected as per
convenience basis.
5.1.6 Method of Survey:
Personal Interview:
It is direct form of investigation, involving face-to-face communication with
free feedback information. It offers a sense of participation. It is more flexible
form of data collection. Use of unstructured, open-end questions is possible.
Rate of refusal is low. Depth interview is possible. Complex questions can be
asked. The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard
information. Visual aids in the form of catalogues samples etc. can be used to
get views, opinions, and attitudes of responding Institution.

5.2.1 Product for Which Survey Was Conducted:Composition:

Variety

Fat (%)

SNF(%)*

Price(Rs.)

Full cream milk

6.0

9.0

39.00

Single Toned milk

3.0

8.5

24.00

Double toned milk

1.5

8.5

20.00

Lite milk

0.5

8.7

18.00

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34
parts of protein and 9 parts of minerals.
Special Features:
Mother dairy Milk is the most hygienic liquid milk available in the market. It is
pasteurized in state of-the-art processing plants and pouch-packed to make it
conveniently available to consumers.
Product Specification:
Mother milk meets the PFA standards for the respective type of milk.
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows:
West Delhi(3 subdivisons Patel nagar, Rajouri garden and Punjabi Bagh)
Gurgaon NCR(Haryana)

How the survey conducted

To approach the Institutions with the following requirements in mind
At Approach:
What type of Institution it is? (Hotels, restaurant, general stores, Schools and
Colleges, Company offices, Caterers etc).
Does it use Mother milk ?
If not, which other milk institution is using ?
From where it purchases milk(distributor/retail) ?
These sectors were chosen because the company believed that these segments
could be the best potential buyers for this product.

DATA PROCESSING AND ANALYSIS

Sales of different variant of Mother Dairy Milk(WEST DELHI):

Graph shows the sales of milk with respect to the study conducted:

1. Full Cream Milk:

FULL CREAM MILK SALES IN %ge

milk

%ge salesof
other brand

%ge sales of
mother dairy
milk,
44.869921
08

55.130078922

l
e
s

1
51

52

53

54

55

56

57

58

SALES(IN
%ge)

2. Toned Milk:
TONEDMI LKSALES

%ge of
milk sales
of other
brand, 41.72610
556

%ge of
sales
motherdairy,
58.
27389444

10

20

30

40

50

60

3. Double Toned milk:

DOUBLE TONED MILK

%ge sales
of other
brand,
100

%ge sales
of
motherdai
ry milk, 0

1
0

Series1

20
40

60

80

SALES(IN
%ge)

4. Lite milk:

LITE
MILK
2
SALES(IN
%ge)

SALE
S

%ge sales
of other
brand, 0

%ge sales
of
motherdai
ry milk,
100
20

40

60

80

100

Market size of Mother dairy:

Market Size
West Delhi Zone
VOLUME OF MILK OF
INSTITUTE & RESTAURANT
WHO ARE USING
MOTHERDAIRY(in ltrs)
TOTAL VOLUME OF MILKOF INSTITUTE &
RESTAURANT TAKEN(in ltrs)

3965

6986

USING BOTH MD & OTHERS BRAND(in ltrs)

50
MARKET SIZE OF MD (IN %age)

56.75636

USING BOTH MD & OTHERS BRAND(IN %age)

0.71571

REMAINING(IN
%age)

42.72727

FIG: MD
MARKET SIZE

REMAINING,
42.
7272727
3

BOTH MD &
OTHERS
BRAND
0.71571

MD M
ARKET
SIZE,
56.756369
88

Interpretation:
The above graph indicates that Mother Dairy is the market leader in the Delhi City,
according to the study conducted mother dairy has a market size of 56.75 percent.
We have excluded 2500 litres of MD milk sold in Janakpuri market as Institutional
sales.
This shows that Mother Dairy is most preferable brand in West Delhi.

Market size in different Institutions:

3000
2500
2000
150
0

MD
other brands

100
0
500
0
Hospitals Hotels& Ofices&e
restaurants du.
Institutes

Cofe
e
outlet
s

Others

Market Potential:
MARKET POTENTIAL
INTERESTED IN SWITCHING TO MOTHER DAIRY:
Institutions
(IN %ge)

INST. INTERESTED
IN SWITCHING TO
MD ARE:
INST. WHO ARE
ALREADY USING
MOTHERDAIRY:
INST. WHO DON'T
WANT TO SWITCH TO
MD ARE:
DATA NOT AVAILABLE:
TOTAL NUMBER OF INSTITUTE
TAKEN:

No. of

32

32

37

37

28

28

3
100

3
100

Finding:
The study shows that Mother Dairy is a leading marketer of Dairy products in the Delhi and
NCR regions. So in Delhi city most of institutes are currently using MD Milk, but still there
are few institutes who are interested in switching to MD brand, as per the survey conducted
32% of institute are interesting in switching to MD.

MARKET POTENTIAL
DATA NOT
AVAILABLLE
,3
NOT
INTRESTED,
28

INTRESTED
TO
SWITCH,
32

USING MD,
37

Interpretations:
There are large numbers of institutes that are currently using MD approx 37%, & out

of

total 32 % of institutes are interested in switching to MD.

Also 28 % institutes are not interested to change their brand because they think that quality
of milk is not good, and services provided by MD are not proficient.
In the sample taken there are some institute which are not using milk, and for some of the
institutes data are not available.

Sales of different variant of Mother Dairy Milk(GURGAON-NCR):

Graph shows the sales of milk with respect to the study conducted:

1. Full Cream Milk:

FULL CREAM MILK SALES IN %ge

s
a
l

%ge salesof
other brand
milk
,
55.13007892
2

2
%ge sales

of

mother

dairy
s 1
44.869921

milk,
08

10

20

30

40

50

60

70

80

SALES(IN
%ge)

2.

Sinle Toned mil

k :
TONEDMI LKSALES

%ge of
milk sales
of other
brand, 41.72610
556

%ge of sales
motherdairy,
58.
27389444

0
200

400

600

800

3.

Double Toned milk:

DOUBLE TONED MILK

%ge sales of
other
brand, 100

%ge sales
of
motherdai
ry milk, 0

1
0

20

40

60

Series1

80
100

SALES(IN %ge)

4.

Lite milk:

LITE
MILK
2
SALES(IN
%ge)

SALE
S

%ge sales
of
motherdai
ry milk,
100

%ge sales
of other
brand, 0

20

40

60

80

Market size of Mother dairy:

Market Size
Gurgaon-NCR Zone
VOLUME OF MILK OF INSTITUTE & RESTAURANT
WHO ARE USING MOTHERDAIRY(in ltrs)
TOTAL VOLUME OF MILKOF
INSTITUTE & RESTAURANT
TAKEN(in ltrs)

2285
8569

USING BOTH MD & OTHERS

BRAND(in ltrs)

50

MARKET SIZE OF MD (IN %age)

26.665
8

USING BOTH MD & OTHERS BRAND(IN %age)

0.5864

REMAINING(IN
%age)

73.7713

FIG: MD
MARKET SIZE

MD MARKET
SIZE,
26.66588867

BOTH MD &
OTHERS
BRAND
, 6.36

REMAINING,
42.727
2727
3

Interpretation:
The above graph indicates that Mother Dairy is not the market leader in the Gurgaon
City, according to the study conducted mother dairy has market size of 26.66 percent.
This shows that Mother Dairy is not

preferable brand in Institutional business in

Gurgaon-ncr region.

Market size in Different Institutions:

3000
2500
2000
1500
100
0

MD
Other brands

50
0
0

Market Potential:
MARKET POTENTIAL
INTERESTED IN SWITCHING TO MOTHER
DAIRY:
INST. INTERESTED IN
SWITCHING TO MD ARE:
INST. WHO ARE
ALREADY USING
MOTHERDAIRY:
INST. WHO DON'T
WANT TO SWITCH TO
MD ARE:
DATA NOT AVAILABLE:
TOTAL NUMBER OF INSTITUTE
TAKEN:

No. of Institutions

(IN %ge)

33

30

41

37

31

28

4.5

110

100

Finding:
The study shows that Mother Dairy is a leading marketer of Dairy products in the GurgaonNCR regions. So in Gurgaon city almost every institute are currently using MD Milk, but still
there is few institutes who are interested in switching to MD brand, as per the survey
conducted 30% of institute are interesting in switching to MD. While there is a large scope
for Mother Dairy in the Gurgaon (NCR) region as there are many hotels that are currently
using Milk of other brand, and also they dont have any problem in switching to MD.

MARKET
POTENTIAL

DATA
NOT
AVAILABLLE,
4.
545
4

NOT
INTRESTE
D,
28. 181

INTRESTED
TO
SWITCH,
30

USING
MD,
37.272

Interpretations:
There are large numbers of institutes that are currently using MD approx 37.27%, & out
of total 30% of institutes are interested in switching to MD.
Also 28.18% institutes are not interested to change their brand because they think that
quality of milk is not good, and services provided by MD are not proficient.
In the sample taken there are some institute which are not using milk, and for some of the
institutes data are not available.

Competition mapping in West Delhi and Gurgaon:

I.

Source from where Institutions get their milk-

Of the total 210 institutions Surveyed, 78 of them were using mother dairy milk. Of 78
institutions, 42 of them were getting their milk from distributors while remaining 36 were
getting from retail shops.

No. of
institutions

Distributors
Retailers

Interpretation:
It was found that the ins titutions which are purchasing milk in large quantity take mostly
from distributors while small institutions take mostly from retailers.

II.

Analysis on basis of Taste factor:

Graph showing Taste as an important parameter-

140
120
100

Taste not imp.

80
60

Taste as somewhat
imp parameter

40

Taste as most
imp. Parameter

20
0
Using MD Not
using
milk
MD
milk

Rarely
using
MD milk

Interpretation:
It shows that taste being the second most important parameter effects
the buying decision of consumers. Out of 210 institutes surveyed, 125
institute does not use MD milk since 67 of them do not find taste
appropriate. The reason for not liking the taste was that they had
become habitual of consuming either the other brands or the loose milk
available from local dairies.
III. Analysis On the basis of QUALITY factor:
Graph showing QUALITY as an important parameter-

100%

11

80%

25

33

1
2

60%
40%

50

81

20%

quality as a paramtr
not at all imp
quality as a paramtr
somewhat imp
quality as a paramtr
most imp

0%
yes

no

rarely

Interpretation:
It shows that Quality is the most important parameter that effects the buying decision of
consumers. Out of 210 institutions surveyed 125 were not consuming MD milk since they are
not satisfied with the quality of MD milk.

IV.Analysis on the basis of AVAILABILITY parameter:

Graph showing ease of AVAILABILITY as an important parameter-

140
120
100
not imp

80

ease of avail.

60

Somewhhat imp. ease

od availability imp

40
20
0
yes

no

rarely

Findings:
It shows that ease of availability is also an important parameter that plays a role in effecting
consumers buying decisio

Out of 210 sample size 132 do not consume MD milk that

prefers ease of availability as the most important parameter. Either they were getting the milk
they were consuming on their doorsteps or it was available near to their house.

n.

V. Price of milk:
140
120
100
80

Price not
important Price

60

somewhat imp

40

Price important

20
0
yes

No

Rarely

Interpretation:
About 50% of the Institutions who are not using Mother Dairy Milk rated price as the most
important parameter as compared to around 75% Institutions who are using Mother Dairy.
Because of the margins provided to Institutions by the Milk companies play an important role
in deciding the purchase of milk by institutions(except coffee outlets), Price is most important
factor.

OBSERVATIONS AND FINDINGS

In Institutional

Users: (sweet shops, restaurants, hotels, canteens, Offices,

Hospitals etc) The awareness level of Mother dairy milk in bulk users is around 90% but
only 30% are using Mother dairy milk.
The preference of purchasing milk by the bulk users is mainly quality and
timely availability.
The reasons for not using milk by the bulk users are :1. Higher price that is not meeting the competitors rate as bulk user are very
price sensitive. Other milk dairies are providing higher margin.
2. In sweet marts mawa generation is less and there is a complaint about
cuddling of milk.
3. In case of canteens contract some of them prefer credit purchasing which is
against companys norms and policies.

CONCLUSION:

5.1 Concluding observations

The final outcome of the project is that the parameters which hinder the
sale of Mother Dairy are Price, Quality, Service and Taste. Milk market is a
totally unpredictable market and the organisation should be over-cautious of
any complaints that come into milk as it includes the sentiments of a mother for
her kid and she would not prefer to give anything to her kid for which she is not
100% satisfied. So the company should take every step possible to contain these
problems which in some way or the other affects the sale of Mother Dairy and
its retailers.

5.2 Limitations of the study

Since the study is done in only one region of West Delhi and Gurgaon-NCR,
these results cannot be generalised on all Delhi basis. Shopkeepers also tend to
hide some facts and figures due to some reasons which can hinder the results
we get from this survey. Still a lot can be done to make the whole system
efficient.

5.3 Further scope of study

The findings we got from this project will be of great help for the company as
these findings will help the organisation for improving their system as well as
milk.

SUGGESTION AND RECOMMENDATIONS :

Mother Dairy can cut costs for some period of time followed immediately
by strong advertising. As we have seen during the research that most of
institutions give most preference to the margin provided to them on
milk(except coffee outlets). As the quality and taste and availability of
mother dairy milk are best in market and local milk companies good
margin to them, Price remains the main criteria of institutional milk sales.
Can start schemes like cash prizes or foreign trips on scratching the
barcode on the packet
Locate the institutions using competitors milk and provide them
attractive offers to increase the market share so that at least the big
competitors will not try to expand.
MD should introduce a mascot for the milk (as it

has been for Amul

Butter). This will help in easy Brand differentiation and Recognition.

Efficiency in distribution
Remove communication barriers and misconceptions between the
Institutions and distributors by effective communication with institutions
time to time.

BIBLIOGRAPHY & WEBLIOGRAPHY

www.motherdairy.com
www.nddb.org
www.indiandairy.com
www.wikipedia.com
www.indianmilkproducts.com

ANNEXURE:

For collecting the data a structured questionnaire for the Institutions is prepared
to get detailed and structured information regarding the project. Given below is
the questionnaire:
Questionnaire for Institutions
Ques-1: How much milk do you consume every day?
Ques-2: From which source (company/local source) you purchase milk? If MD
then leave.
Ques-3: What type of variant is used (FCM/TM/DTM/LITE)?
Ques-4: What type of mix?
Ques-5: At what price each variant is bought from whatever source?
Ques-6: What type of delivery method (transporter/distributer/self) is used?
Ques-7: What is the credit period provided?
Ques-8: Payment by cheque /cash?
Ques-9: Are you satisfied by your milk source (quality of milk/facilities)?
Ques-10: How do you perceive MD as a brand?
Ques-11: Reasons for not using Mother Dairy (Any previous bad
experience/credit/transport/price /quality (taste, water content, preservatives,
colour, etc))?
Ques-12: What changes do you expect from MD so that you can switch to MD
(In terms of credit facility/delivery time/price margin etc)?
Ques-13: Anything in general to be improved in MD?