Mother Dairy
Mother Dairy
Mother Dairy
ON
MARKETING STRATEGIES
A STUDY IN RELATION TO MOTHER DAIRY
ABSTRACT
The project is carried out to study the current marketing strategies adopted by the Indian
dairy sector in context of Mother dairy brand. The projects main aim was to study the
marketing strategies and see what have been the reasons behind selecting a particular
strategy. It thus was having an insight as to the factors which lead the company to adopt
such a policy. For this the marketing strategies adopted by Mother Dairy was analyzed.
The current brand positioning was studied. The study also aimed to know as to what is to
be kept in mind while deciding upon a marketing strategy.
The research work which was adopted includes both the primary and the secondary
research. The primary research includes
Questionnaire survey
A questionnaire survey is carried out in order to know about the consumer perception and
attitude towards the Mother Dairy brand. It is basically done to know about the consumer
satisfaction level.
The interview with the brand manager is done as these people have a better
insight and knowledge about the strategies and other operational workings of Mother
Dairy, and this could be of great help while doing the analysis. The interaction was done
on the following areas:
What is the meaning of the Mother Dairy brand which they want the
consumers to understand?
The various strategies adopted by the Mother Dairy and an insight of these
strategies.
In the end, some new strategies have been recommended which could result in better
performance of the dairy sector.
SIGNATORY PAGE
This is to certify that Mr. Chetan Gaur a student of New Delhi Institute of
Management Tughlakabad Institutional Area, New Delhi, batch has completed his
project titled Marketing strategies- A study in relation to Mother Dairy under my
guidance.
I have examined the final copy of this project and I am satisfied with the content of the
work. I would hereby recommend that this project be accepted as part of the course. This
project has original contents and is not submitted elsewhere unto my knowledge.
Guidance of:
Mr. Ankur Budhiraja
(Faculty Guide)
ACKNOWLEDGEMENT
The project report of such magnitude cannot be accomplished without the assistance and
co-operation of several people. I therefore, would take this opportunity to express my
utmost gratitude and indebtedness to one & all who have contributed in some way or the
other and have been linked with the project from the day first.
Firstly, I would like to thank my project guide, Ms Alpika Jain who devoted her precious
time in contributing valuable information for my work. She had been constantly guiding
me throughout my endeavour for this project.
I would also like to thank Mr. Ankur Budhiraja (Faculty Guide) who has been
constantly guiding me. I am also thankful to all those respondents who spend their time in
providing me with valuable information for my work.
Chetan Gaur
TABLE OF CONTENTS
Topic
Number
1
Topic
Page
number
INTRODUCTION
Background information
Aims and objectives
LITERATURE REVIEW
Current status of the concept of marketing strategies
Concept of marketing
Marketing strategies
Product bundling, an important marketing strategy
Brand franchise extension model used for marketing
decision making
Overview of Indian Dairy industry
Important features observed in Indian dairy industry
Marketing strategy of Indian dairy industry
Overview of Mother Dairy
Mother Dairy marketing strategy
RESEARCH METHODOLGY
MODE OF DATA COLLECTION
Primary research
1- 2
3
4
5
6- 8
9
10
11- 12
13- 17
18
19- 21
22- 26
27- 28
1. Interview
5
6
7
8
2. questionnaire
Secondary research
REPORT OF DATA COLLECTION
Interview
Questionnaire survey for analyzing consumer
perception
SWOT analysis for Mother Dairy
PEST analysis for Indian dairy sector
RECOMMENDATIONS
CONCLUSION
BIBLIOGRAPHY
APPENDIX
Questionnaire
Response Sheet
29- 33
34- 48
49
50- 52
53- 55
56
57
58- 59
60- 71
LIST OF FIGURES
FIGURE NUMBER
Store hours
10
11
12
13
Highest quality
14
15
Attractiveness
16
Overall satisfaction
17
18
19
LIST OF TABLES
8
Table number
SWOT analysis
INTRODUCTION
BACKGROUND INFORMATION
In todays fast moving environment, the need of the management is to pay their attention
to a new and unfamiliar attribute of the companys products, services and brands.
In the past, brand management focused on achieving preference on the basis of
differentiation, benefits, and customer satisfaction within a set of brands under
consideration for a given application. But in today's environment, only narrow
application preference wont be sufficient to achieve success. Rather it needs to be
accompanied by the maintenance the brands relevance as categories emerge, change and
fade out. Brand managers are often blindsided by changing product categories because
they focus too closely on the traditional attributes of brands within their old categories.
Their ultimate tragedy is to achieve brilliance in creating preference and differentiation,
only to have that effort wasted because of a relevance problem.
The topic of brand management and relevance has moved up on the strategic agenda of
senior management and boards of directors. It has become a key catalyst for expressing
and presenting an institution's value in a way that is relevant to end users. Trend
responders closely track the emergence of trends and the evolution of subcategories, and
take responsive action to keep their offerings current and relevant. This is done because
developing trend responsive capabilities is the best strategy in most situations then
following a trend which is already established or avoiding the trend. Four potential
response options from companies address the challenge more aggressively. One is to use
new products to alter the current brand image and make it acceptable to the new
subcategory's customers. A second trend-response option is to go beyond mere
acceptance, and, through the creation of strong sub-brands characterized by exceptional
products, become a 'destination brand' for the new consumer segment. A third option is to
partner or co-brand with firms that have credibility in the new category, sharing some of
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the upside in order to save the time, cost, and risks involved in creating a new brand. A
fourth option for trend responders is to create or buy an entirely new brand platform.
"Positioning refers to how you want your brand thought about in connections with
competitors in its product category. It needs to be specific to your brand aimed at a
specific target audience." This definition clearly states the importance of Positioning for
the success of any brand. It is like that indispensable vitamin to the body without which
the body will collapse. So Positioning can make or break a brand. A clear Positioning
will always be one of the success factor. This is the place where Punch line comes into
act. If the brand needs to be positioned perfectly in the mind space of the customer, the
Punch line must be so accurate and appealing that it neither erases from the mind nor can
be replaced by any other competing brands Punch line, only then can it be considered
successful.
It really needs lots of strategies to build up an accurate and catchy Punch line to set the
Positioning of the brand in the mind space of the customer. The Punch line represents the
values of the company, benefits, attributes, features, quality, cost, special technology and
last but not the least the USP. Basically the Punch line is the voice of the brand, which
primarily gives out the minimum momentum, thrust or impetus to push the brand in the
mind of the customer.
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What is the brand positioning of mother dairy. How do its customers perceive it?
To have a knowledge about the mother dairy brand and its strategies.
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LITERATURE REVIEW
Before going into much detail about understanding the marketing strategies in an overall
economy, or in context of the Indian dairy sector, I thought of first bringing in your
knowledge, the current importance behind the marketing concept and what has been the
factor that has contributed in giving so much of relevance to the marketing strategies.
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The current position of the company and its competitors in the minds of the
consumer
MARKETING STRATEGIES:
The formulation of marketing strategies starts from the building a sustainable brand for
the company. This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that marketing makes to the
consumer.the promise of delivering values beyond expectation. A framework is
suggested below for the formulation of a brand strategy:
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product features and uniqueness that they expect from the brand. They want to know
more about the details of the brand. They remove the shells and get into the core of
the processes to understand the real value of the brand. Hence such a strategy should
be framed that makes the consumers involvement higher.
2. Effective Marketing it is found that effective marketing involves working on four
important dimensions, namely:
The Social Dimension The Social Dimension concerns the ability to create
identification with the group.
The Mental Dimension The Mental Dimension is the ability to support the
individual mentally.
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Customers Own the Brand It should always be kept in mind that it is the
consumers who own the brand.
Product Service A sale should never be considered the ending of a transaction but
the beginning of a beautiful relationship. Customer service basically creates a
positive effect on the minds of the customer and this positive influence on the
mind of the consumer makes them more open to new ideas and reduces their
skeptism towards the brand.
Buzz Marketing: the development in the technology used in the country has lead
to the increased importance paid to the concept of buzz marketing. Marketing
increasingly nowadays is moving into Internet-based applications.
Religious Marketing since it is considered that religion has the power to bind
people and unify them under one common ideal an effective brand strategy must
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take into account this powerful force which plays on the minds of the Indian
consumers. This is so as in a country like India, A brand that reveals authenticity,
values and humanity's drive toward conscientiousness, offers a powerful strategic
advantage.
4. Feedback and Improvements
It is very crucial to have the consumer participation. In order to succeed in the
long run, it is crucial to allow the consumer participation at an intermediary stage
of developing the product. This will lead to creation of a better relationship
between the company and its consumer.
5. Challenges
18
19
1950
17
1996
70.8
1997
74.3
2020(projected)
240
Higher incomes of the consumers as the demand for milk and other dairy products
are demand elastic
6874
Kg/ year
Denmark
6223
Kg/year
Holland
5751
Kg/year
India
552
Kg/year
21
1972
172
1992
182
1998
203
2000
212
22
in the table
millions of landless agricultural laborers and marginal and small farmers, who
maintain one or two milch animals of low genetic potential for milk production,
primarily fed on crop residues and byproducts, and reared with the help of underemployed family members, mostly female workers. The reasons which support the
existence of a large informal dairy sector are-:
Firstly the consumers are not ready to pay the additional costs attached with the
formal sector like the pasteurization and packaging
Secondly, the consumers have the perception that milk and other dairy products
obtained from reliable vendors are of better quality then that obtained from the
formal dairy sector.
23
24
25
3. 3.
India is the lowest cost producer of per litre of milk in the world, at 27 cents,
compared with the U.S' 63 cents, and Japans $2.8 dollars. Besides this advantage, the
production of the milk is also increasing. These two advantages when combined give
a lot of attraction to the multinational companies to expand their activities in India.
Some of these milk producers have already obtained quality standard certificates from
the authorities which will help them in marketing their products in foreign countries
in processed form.
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4. Regional disparities in the production and consumption of milk and other dairy
products is also observed. This disparity is due to concentration of milk production in
some pockets and high cost of transportation. Besides this, the output of milk in
cereal growing areas is much higher than elsewhere which can be attributed to
abundant availability of fodder, crop residues, etc which have a high food value for
milch animals.
5. Liquid milk comprises the largest single share of the dairy product consumption
profile. The share of fat-based products like ghee showed a declining share, and that
of western products like cheese and ice cream witnessed an increasing trend and is
expected to increase further due to changes in food habits, marketing strategies,
income levels, changes in demographic factors, etc. In India about 46 per cent of the
total milk produced is consumed in liquid form and 47 per cent is converted into
traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7
per cent of the milk goes into the production of western products like milk powders,
processed butter and processed cheese. The remaining 54% is utilized for conversion
to milk products.
6. Several consumers in urban areas prefer to buy loose milk from vendors as they have
a strong perception that loose milk is fresh. Moreover, the current level of processing
and packaging capacity limits the availability of packaged milk. Presently only 12%
of the milk market is represented by packaged and branded pasteurized milk, valued
at about Rs. 8,000 crores. On the other hand, the Quality of milk sold by unorganized
sector is inconsistent and the price across the season in local areas is also inconsistent.
Sometimes these vendors add water and caustic soda, which makes the milk
unhygienic.
7. 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 the end of the year 2005. This
growth will result 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
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and there is no shortage of availability of milk. These factors ensures that the first two As
of marketing (availability, acceptability and affordability) is not a problem in India.
Hence the challenge lies behind making the milk affordable to a larger majority of the
population. One practical way is to pack milk in small quantities of 250 ml or less in
polythene sachets. Another viable alternative is to sell small quantities of milk powder in
mini-sachets which is adequate for two cups of tea or coffee. Besides this, a lot many
marketing strategies have been adopted and followed by the Indian Dairy sector.
Ghee is the only product among the traditional milk products which is currently marketed
in a branded form. Some of the ghee brands are Milkman(Britannia), Amul(GCMMF),
Sagar, Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation),
Everyday (Nestle) and Farm Fresh (Wockhardt).
Mafco Limited sells Lassi under the Aarey brand and flavored milk under the Energee
franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored
milk in various flavors in tetra packs.
However GCMMF has also made a beginning in marketing of other traditional milk
products with the launch of packaged Paneer under the Amul brand.
With increasing urbanization and changing consumer preferences, there is possibility of
large scale manufacture of indigenous milk products also. The equipments in milk
manufacturing have versatility and can be adapted for several products. For instance,
equipments used to manufacture yogurt also can be adapted for large scale production of
Indian curd products (dahi and lassi).
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The changing marketing trends will see the shift from generic products to the packaged
quasi, regular and premium brands.
Liquid milk
Ice creams
UHT milk
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cater to the global market demands, the following steps have been undertaken by Mother
Dairy:
Mother Dairy has set up a 100% export oriented unit with a capacity for processing
over 15000 metric tones of fresh produce annually.
A new state of the art plant with an installed capacity for processing 10 metric tones
of fruit per hour is being set up at Bangalore. The units are ISO 9001- 2000 and
HACCP certified.
It has established a marketing office in Rotterdam to ensure better satisfaction to its
international consumers.
Mother dairy has adapted process automation as far as processing of milk is
concerned so as to ensure high quality and reliability. It has been awarded the
following certifications:
ISO 9001:2000(Quality Management Systems)
HACCP 2002 RUA (Food Safety Management System)
ISO 14001:2004 (Environmental Management System)
Its Quality Assurance Laboratory is accredited as per ISO/IEC 17025:1999 by National
Accreditation Board for testing and calibration Laboratories, Department of Science and
Technology, Government of India.
Mother Dairy is able to command 40% market share in the organized sector in and
around Delhi because of the consistent quality and service which it is able to provide to
its consumers what ever be the situation like floods, transport strike, curfew etc. Mother
Dairy, Patparganj, Delhi, is presently manufacturing & selling around 8.5 lakh litres of
tonned milk through bulk vending shops.
After the success of Dairy industry, Fruit and Vegetable Project was established in Delhi
in 1988 with Safal as its umbrella brand. NDDB merged Mother Dairy and the Fruit
and Vegetable project into a wholly owned company named Mother Dairy Fruit and
Vegetable Ltd(MDFVL) in April 2000 as its objective was to separate the commercial
activities from the developmental activities. This company became the holding company
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of Mother Dairy India Ltd (MDIL) which was a marketing company and Mother Dairy
Foods Processing Ltd (MDFPL) which was a processing company.MDFPL is basically a
multi unit company with its units spread at various locations in India.
Mother Dairy has also adopted the concept of Total Productive Maintenance (TPM). The
results of the TPM efforts are
Quality improvement
Cost reduction
Reduction in accidents
Increase in MTBF
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Indian Dairy industry sees the co existence of organized and unorganized sector. To suit
the specific requirements of each of the two sectors, Mother Dairy adopts appropriate
strategies. Organized dairy sector is in a developing stage. It includes the opening up of
malls and other new forms of retailers. These new forms of retailers keep the products of
many brands and hence offer the consumers a lot of alternatives to choose from. In such a
scenario, every brand gets limited area of display. So the strategy adopted mainly focus
on aspects like colour, highlight, shelf level of the product, etc. Hence Mother dairy has
limited strategies for organized sector. For the unorganized dairy sector, Mother Dairy
strategies include outdoor activities, ATL activities, BTL activities and so on.
In a competitive environment, it is apparent that success would eventually depend on
networking and distribution channels, and the one with better marketing strategies will be
in a better position than its competitors. Earlier Mother Dairy offered only liquid milk.
But in light of the competitive environment, it is now having a well diversified product
portfolio which includes a range of milk based products, edible oils, frozen vegetables
and fruit juices. In the past few years, it has tried to spread its operations and market its
products outside Delhi. They aim to get into bigger markets and have bigger shares in
those markets. It has plans for an aggressive brand expansion and strengthening for the
next two years. The brand has been growing at 20 per cent for the last three or four years,
and should hit Rs. 2,800 crore in this financial year. Mother Dairy's revenues were Rs.
2200 crore last year.
They plan to expand and strengthen their existent brands through addition to their already
existing portfolio which would be supported by innovative marketing strategies. Its
strategies would basically focus the northern part, and some parts of the western and
eastern region in India.
Mother Dairy has plans for reaching out to newer markets, but the strategy is more
products specific. In liquid milk, it initially plans to concentrate only on four marketsDelhi, Junagarh and Ahmedabad in Gujarat, Mumbai and Hyderabad which it entered
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recently. The aim behind getting into newer locations is to ensure that there is a large
viable distribution network.
Mother Dairys strategy strives not only to enter new markets, but also perform well in
the different product categories in whichever market it is present. It can be achieved by
value creation through quality of the offerings supported by innovations in products. The
marketing strategies adopted by Mother Dairy are explained below in context of the
product category to which it belongs:
1. DAIRY PRODUCTS:
The dairy products like flavored milk, lassi, curd, butter and cheese sold by Mother Dairy
has a regional stronghold, with a shelf life of ten days. The company is now finding
alternatives which would increase the shelf life and hence allow its distribution in other
parts of the country.
The strategies will basically focus on fresh milk as it contributes 60- 65% in the revenue
of the company.NDDB plans to have value additions like flavoured yoghurt. This step has
been taken as there is a strong habit of eating dahi with sugar especially in the north.
2. ICE CREAMS:
The company has a share of 15% of the market in the ice cream segment, but it plans to
increase it to 20% by 2008. Apart from selling bulk ice cream under its flagship brand,
Mother Dairy is actively promoting its Chillz brand, targeting youth with cones and
fancier variants in which Mother Dairy hopes to soon overtake the frozen dessert brand
Walls, the brand is getting seriously large in ice creams, the growth was 40 per cent this
year.
Chillz, the ice cream brand of Mother dairy has recently come out with its television
commercial having new tagline goodness inside. It is also planning to launch a
premium offering in the takeaway ice cream category.
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Mother Dairy strategies have resulted in bringing in mass Indian flavours in ice creams.
As a result, it has increased the absolute percentage of contribution. The idea behind this
strategy is to make the taste experience in ice creams as familiar as possible so as to
increase the consumption.
3. DHARA:
The edible oil brand, Dhara is at present a Rs 300 crore brand with six variants like
refined vegetable, sunflower and soya bean oil, filtered groundnut and mustard oil. But
plans are formulated to add another variation to it. it will then be marketed in places like
Madhya Pradesh, Chhatisgarh and Maharashtra. The strategies adopted basically strive to
strengthen the brand presence.
4. SAFAL:
Mother Dairys Safal brand is on the path of re-marketing. A new logo and identity is
formed for the brand. It has expanded its portfolio from peas to mixed vegetable and
sweet corn, and has also launched a new sub-brand.
The company has also established a sub-brand Hot Snax in the snacks category which
includes product like French Fries. Safal is also planning to enter the frozen snacks
category which includes products like Aloo Burger Patty. It has plans to sell potato tikkis
in the future.
Safal has added on two variants in its Fruit drinks range. They are magic mango and fruit
tango. These two variants have been added by keeping in mind their target market, i.e.,
kids tastes and preferences. Small pack sizes contributions have been overwhelming.
Mother Dairy has devised new television commercials along with on-the-ground
marketing activities to promote its new logo. For this, they have spent roughly Rs 3-4
crores on advertising and marketing.
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They have target to export worth Rs 50- 55 crore by the end of this year. To achieve this
target it has been exporting its products to markets such as the U.S., Japan and Korea.
The strategies adopted strive to achieve the following:1. Opening up of more outlets for the Safal brand as it is entering the ready-to-eat
segment of the processed food industry. They target to add another 8,000-10,000
outlets for the Safal brand by this year.
2. To increase the availability of its Safal fruit juices in local outlets as well as emerging
retail formats such as foodmarts.
3. To enhance the retail visibility.
4. To garner 10-15% market share in the juices segment in the next two years.
5. LAUNCH OF UHT MILK (ULTRA HEAT TREATMENT);
Mother Dairy introduced UHT milk in Delhi and NCR. UHT milk is packed in a special;
six layer packaging that preserves the milk and helps it last upto 120 days without
refrigeration. It is said that UHT milk can be consumed straight from the pack without
boiling. Mother Dairy launched it as it was the requirement of the changing consumer
needs. The consumer today looks for more convenience in buying and storing milk. This
would then be available in other key markets in north and east.
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37
Safal has tied up with Cartoon Network to launch Power Puff Girls on pack promotion.
This would enable the consumers to receive a Power Puff Girls Crime Buster toy free
with the purchase of Safal juice. This strategy was adopted to attract the youngsters and
enhance the brands connection with its consumers. Moreover, it supported the brands
core positioning of being a refreshing energy drink.
The main Mother Dairy account was earlier with Interface Communications and a part of
it was with Mudra. Mother Dairy will be using both print and television advertising, but
the spends on television will be more than print.
The marketing strategies adopted have resulted in the following coverage of markets:
ICE CREAMS: Mother Dairy entered its first market outside Delhi i.e. UP and
Punjab only two years back. Today it covers other cities like Haryana, Jaipur,
Mumbai, Goa and Kolkatta. It plans to extend its operations to Hyderabad and
Bangalore.
BUTTER AND CHEESE: At present it covers places like Mumbai, Bangalore,
Kolkatta and across North India.
GHEE: Though the current focus is the northern region, Mother Dairy plans for a
nationwide presence.
UHT milk: It has entered Mumbai and north east parts of the country.
EDIBLE OIL BRAND, DHARA: It is already having a nationwide presence.
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RESEARCH METHODOLOGY
MODE OF DATA COLLECTION:
1. PRIMARY RESEARCH:
This thesis aims to throw some light on the marketing strategy of Dairy industry in
context with Mother Dairy. Its objective is to analyze the marketing strategy of Mother
Dairy and to know about the consumers perception about it. To achieve the above said
objective, study of some of the Mother Dairys outlets which are located in Delhi and
NCR are undergone.
The first part of carrying out the research is to conduct the primary research which
includes a questionnaire and interviews with the brand managers of Mother Dairy.
A. INTERVIEW:
Firstly, an interview with the marketing executives working in Mother Dairy is done. The
brand managers of Mother Dairy are interacted with. This is done as these people have a
better insight and knowledge about the strategies and other operational workings of
Mother Dairy, and this could be of great help while doing the analysis. The interaction
was done on the following areas:
An insight over the Mother Dairy brand.
How do they position their brand?
What is the meaning of the Mother Dairy brand which they want the consumers to
understand?
The various strategies adopted by the Mother Dairy and an insight of these strategies.
39
B. QUESTIONNAIRE:
Then to further continue with the primary research, a questionnaire is prepared. The
following aspects of questionnaire are decided upon:
Target population: the consumers of Mother Dairy products
Sampling frame: the consumers visiting the Mother Dairy outlet
Sampling frame: 50 consumers
The questionnaire will be filled up by the consumers who are visiting the Mother Dairy
outlet. The questions were framed to get an understanding of the consumers perception
of the Mother Dairy brand, their reactions to the various strategies adopted by it.
To achieve the objective of the thesis, the consumers perception about the promotional
campaigns, the quality of its products, whether its products are a good value for the
money. etc are analyzed. The consumers satisfaction on these factors will help in
analyzing as to how successful or otherwise the strategies adopted by mother Dairy have
been and whether some kind of gap exists or not.
2. SECONDARY RESEARCH:
The secondary data which would be collected would be used as a support to further
evidence the results of the analysis done by the primary research. The secondary data has
been collected from the following sources:
Internet
Newspaper and journals
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Q2. Which product has been the focus of the Mother Dairy marketing strategy and
what has been the contribution of the different products in the product portfolio?
The response explained that every product in the product portfolio of Mother Dairy has
some contribution to the brand. But milk is the main product and has got the highest
involvement. This is because in India, milk is considered a necessity, a healthy drink
which is a must to be included in the diet. Milk is also the cheapest source of all nutrients
as compared to other food items. Milk is the main product, while other dairy products act
as an umbrella brand. This ensures that the marketing strategies for milk include ATL and
BTL activities.
After milk, the second largest contributor for the brand is its ice cream range. The reason
behind this has been the success of the mass Indian flavours which Mother Dairy came
up with like Shahi Mewa Malai. This had lower resistance and more acceptances from the
consumers.
Q3. Who has been the target market for the ice- cream brand Chillz?
According to the manager, the target market for its ice cream range depended upon the
category of the ice cream to which it belongs. The ice cream product range was classified
into the following four categories:
Licklolly: It targeted children between the ages of 5 to 10 years.
Chillz: The Chillz brand targeted the youngsters falling in the age group of 14 to 25
years.
Take-home
Galloons: Both take-home and galloons were for bulk requirements.
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A lot of innovative strategies have been adopted for promoting ice creams. The recent one
is that it is introducing two variants--- ice cream in the shape of a football and strawberry
and vanilla flavoured ice cream under its two in one range.
Q4. Mother Dairy has been carrying out activities like school programme which
includes games involving Makkhan Singh (the brand ambassador) in Delhi. How
successful has this strategy been?
The brand manager was quick enough to reply back to this question. He said that the
response of this strategy has been overwhelming. This strategy was adopted to attract the
children who were the target market. After carrying out this strategy in Delhi, the reach of
Mother Dairy brand has increased. The effect on brand awareness among the consumers
has also been positive. The sales figures have also nearly DOUBLED after this activity
was performed. This lead to the decision that such activities would also be undertaken in
Mumbai and Kolkatta.
Q5. What has been the after effect of launching the sub brand Hot Snax?
The objective behind launching the sub brand Hot Snax was to expand its product
portfolio. It was targeting the youngsters and the females who were working. This was
also considered to be the need of the consumers who wanted quick snacks and didnt
have much time to spend on preparing it. The launch of this sub brand lead to the increase
in the product line.
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Q6. What has been the response of the consumers in respect of the launch of UHT
milk?
It was found that the launch of UHT milk was not considered to be a very successful
strategy.
When asked about the reason why this strategy was not as successful as it was expected,
the brand manager said that the Indian consumers are not ready to buy the UHT milk.
UHT milk can be kept longer and has a shelf life of around one year. Indian consumers
hence dont consider this milk as fresh.
Q7. What has been the aim which Mother Dairy wanted to achieve behind the
proposal of Cheese ke saath bees ki cheez which it came up with in November
2005?
This proposal said that if a consumer buys Mother Dairy cheese, the retailer could offer
him anything worth Rs 20 from the shop. This helped the consumer in getting free things
which the consumer could use, rather than giving him any useless free product.
The company came up with this proposal as an off season strategy. The basic aim was to
increase the brand awareness for both the products i.e. cheese and the free product which
was offered to the consumer. This also helped the company to bond better with its
retailers.
Q8. The company has plans to expand its distribution network, especially for the
Safal brand. Can you throw some light on this fact?
It was found that Mother Dairy is targeting to add another 8,000 to 10,000 outlets for the
Safal brand by this year. This would be done to increase the availability of its Safal Juices
in local outlets as well as emerging retail formats. Moreover, it is expected that the Rs
180 crore fruit juice segment will have a growth rate of 25%. To take the advantage of
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this opportunity, Mother Dairy wants to increase its market share in the fruit juice
segment.
Q9. Do you find that Mother Dairy is desirably successful as a key brand in Indian
Diary Industry?
The interviewed Senior Marketing Manager of Mother Dairy was quick to respond to this
question stating that Mother Dairy is not only successful, but is outstandingly successful.
He said that it is the excellent marketing strategy of Mother Dairy that it commands 40%
market share in the organized sector in and around Delhi.
New brands form a key part of the strategy. The company is now selling frozen foods like
French Fries and burger patties under its Hot Snacks brand, and has plans to sell potato
tikkis soon. The fries are currently imported by Mother Dairy which it plans to make on
its own in about a year. Apart from selling bulk ice cream under its flagship brand,
Mother Dairy is actively promoting its Chillz brand, targeting youth with cones.
Q10. Can you throw some light on the marketing and advertising strategies adopted
by the Mother dairy brand?
It was found that Mother Dairy as a key brand well recognizes the fact that after spending
resources on naming a product, it is imperative to support it through advertising and
communication. Mother dairy is trying to take its product campaigns and
communications to a higher platform. For instance, in case of milk, the campaign talks
about creative aspects like the country needs you, grow faster, and not about the
obvious benefits. For cheese, which targeted children, Makkhan Singh was made the
brand ambassador. Its ice cream brand Chillz has recently come out with its first
Television commercial with a new tagline of goodness inside.
45
Recently, it has spent roughly Rs 3 to 4 crore on advertising and marketing and has
devised new television commercials besides on the ground marketing activities to
promote the new logo of the Safal brand.
The company is also planning to increase their ad budgets by 20 to 25%. Currently it
spends 3 to 4% of the turnover on marketing activities. Mother Dairy will be using both
print and television advertising, but the spends on television will be more than print.
In this context the main Mother Dairy account was earlier with Interface
Communications and a part of it was with Mudra. Mother Dairy will be using both print
and television advertising, but the amount spend on television will be more than print.
Q11. Which advertisement was the most appreciated and had a great brand recall in
the minds of the consumers?
The response said that though all the advertisements have had a satisfactory brand recall
in the minds of the consumers, but still these three advertisements have been the highest
appreciated:
Q12. What are the marketing strategies to be adopted by Mother Dairy brand in the
near future?
The marketing strategy will be adopted to expand and strengthen the existent brands
through addition to the already existing portfolio, supported by innovative marketing
strategies. Strategies are formulated as the Rs 900 crore Mother Dairy brand plans to
touch Rs 5,000 crore. It plans to focus on the northern region and some parts of the west
and east of the country. It plans to embark upon an aggressive brand expansion plan for
the next two years.
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The Safal brand has already entered the frozen snacks category which includes product
such as Aloo Burger Patty. In the future, it will include other products in its range in the
coming few months. It has plans to add another 8,000 to 10,000 outlets for its Safal brand
by this year as it wants to increase the availability of its products.
Steps are being undertaken to introduce more varieties n flavours in cheese, ice-creams
and yoghurt based items. The company is also looking at alternatives that would increase
the shelf life and allow the dairy products to be distributed in larger parts of the country.
The company hopes to increase its market to 20% by 2008 in the ice-cream segment.
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QUESTIONNAIRE ANALYSIS
Q1. STORES ARE CONVENIENTLY LOCATED:-
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50
51
52
Q5. THE MOTHER DAIRY BOOTH HAS THE LOWEST PRICES IN THE AREA
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Q7. THE DAIRY PRODUCTS SOLD WERE OF GOOD VALUE FOR MONEY
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The response which was received when the respondents were asked about the
attractiveness of the Mother Dairy stores was disheartening. 21 people were bit satisfied
with the display of the products, but a majority of the people were not satisfied.
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The respondents were asked whether they considered that the dairy products offered by
the Mother Dairy comes in appropriate pack sizes or not. This was asked to know about
how successful the strategies adopted by the company have been. 12 people considered
that the products come in appropriate pack sizes and 27 were also pretty satisfied about
the pack sizes. On the other hand 11 people out of the total sample size were not happy
about the pack sizes and 5 people were highly dissatisfied with the pack sizes in which
the products were offered.
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marketing strategies need to be adopted by the company to remain successful in the long
run.
This questionnaire was constructed to know about the current satisfaction level of the
consumers with regard to the Mother Dairy brand. A few important findings were found
which needs special mention.
When the respondents were asked whether the Mother Dairy outlet has the lowest prices
in the area or not, the majority of them were of the opinion that it was not offering the
lowest price. On the other hand, when the respondents were asked about the quality of the
Mother Dairy products, the majority of the response was in favour that the Mother Dairy
provided products with highest quality. Similarly, a majority of the respondents also
agreed upon the fact that the Mother Dairy products sold were of good value for money.
These responses when analyzed together explained that although the consumers were not
considering the products to be of lowest price, this perception didnt act as a barrier in
their decision to purchase the Mother Dairy products. In reality, the purchase decision
was based after analyzing the price, quality and determining the consumer perception
about the value for money spent on the product simultaneously.
The analysis of the responses also brought into light the fact that the dairy products
display was not found attractive by the consumers. Hence it order to restrain its existing
consumer from going to its competitors, the company should take up appropriate
strategies to improve on its display of the products.
It was found that the overall satisfaction of the consumers from the Mother Dairy
products was quite satisfactory. The satisfaction level of the consumers in respect of the
range of dairy products which Mother Dairy offered and the pack sizes of the products
were quite acceptable. This brought into light the fact that the marketing strategies
adopted by the brand have been quite successful in contributing towards the share in the
market. For instance the small pack size strategy adopted for Safal fruit juices has
resulted into increase in its share to contribution of the brand.
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It has been found that the majority of the consumers from the sample size visit the outlet
at least 3 to 4 times in a week. This can be linked with the satisfaction of the consumers
as to the products offered by the Mother Dairy. This shows that the marketing strategy
adopted by it in order to the expansion of the product portfolio and brand extension has
resulted in fruitful results. For instance, the company entered the snacks segment by
launching its sub brand Hot Snax which included products like French fries and Aloo
Burger Patty.
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Strengths:
Weaknesses:
NDDBs
Product
differentiation
in
terms
disproportionate
attention
to
of particular region.
Indianised flavours.
State of art adopted and ultra modern
central distribution facility used.
Opportunities:
Threats:
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one lakh litres of milk per day or 5000 tonnes of milk solids per annum was granted by
the concerned State government and the requirement of renewal of license was abolished.
The operation of MMPO was by and large limited to registration of the processing units
and some of important provisions relating to food safety, quality, and hygiene were
ignored completely. Therefore, the MMPO had lost its relevance in the era of trade
liberalization and globalization, where India had opened up its dairy sector to world
markets but still there were controls/restrictions on free entry of new players in the
domestic markets.
Termination of licensing requirements for setting up milk processing and product
manufacturing under the India milk and milk products order in 2002 made Indias dairy
industry as one of the most deregulated dairy industries in the world.
However in March 2003, Government of India abolished the restrictions on setting up
milk processing and milk product manufacturing plants and removed the concept of Milk
shed while requirements relating to food safety and hygiene were retained in the MMPO.
This was expected to facilitate entry of large companies, which would definitely increase
competition in the domestic markets.
2. ECONOMIC FACTORS
The output of milk and milk products has increased faster than the crops since 1970s.
The rapid growth in the demand has been possible because of the following factors
Higher income elasticity of demand for milk and other dairy products (1.96 in rural and
1.32 in urban areas)
Growing urban population
Changing food habits
While on the other hand, there has been a marked improvement in the milk yields. There
has also been small regional differentiation due to the differences in domestic market
prices and transport costs.
3. SOCIO CULTURAL FACTORS
The organized sector in India co- exists with the unorganized sector for the marketing of
milk and dairy products. The organized sector consists of western style dairy processing
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dairy animals in terms of breeding, feeding and health care would become possible. The
increase in demand for dairy products will put increasing pressure on dairy production
systems; traditional breeds and feeding practices are likely to give way to higher-yielding
breeds, associated intensification of production systems, increased disease risks, pollution
and animal health issues, and a greater reliance on concentrates.
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RECOMMENDATIONS
After having a look at the findings of the primary and secondary research conducted, it
was found that there are some opportunities which are still lying untapped. If these could
be taken care of, then Mother dairy brand will be benefited. These points are explained
below. The suggestions given below consist of two parts: one is for the overall dairy
sector in India and another for the Mother Dairy brand specifically. This is done as it was
considered that if the barriers present in the dairy sector were removed, it will in turn be
fruitful for the Mother Dairy brand.
Before finalizing any new strategy and adopting it in the companys activities, it is
important to find out as to how the consumer will benefit. It has to be seen that it
suffices the needs of the consumers, and there remains no gap between what the
consumers expect and what the consumers are actually receiving. This would
ensure that the efforts of the company remain fruitful. For instance, we can
consider the failure of the strategy of coming out with the UHT milk. It was not
very successful as in reality; it was not in terms with the consumers perception.
2.
It has been analyzed that the company is taking adequate steps for its brand
expansion and is trying to come out with new value additions in its product
portfolio. For example, Mother Dairy entered the snacks category by establishing
its sub brand Hot Snax which had products like French fries and Aloo Burger
patty. This has been a good technique.
In order to further take advantage of this strategy, it needs to find out more such
untapped opportunities. One such area is Indian sweets category. It is generally
seen that people in all parts of India prefers to includes sweetdish in at least one of
their meals. Hence Mother Dairy should create a new umbrella brand which
includes a range of ethnic Indian sweets. Besides this, good scope also exists for
products like puddings, custards and sauces.
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3.
4.
Steps should also be taken to constantly review the appeal of the various sub
brands and the main brand of the company so that it remains relevant and fits the
requirements of the current environment.
5.
It was found that mother dairy is targeting to increase its exports baskets to worth
Rs 50 crore by this year. It has started exporting tropical fruits and frozen
vegetables to foreign countries. But, to increase its export baskets, Mother Dairy
needs to have better operational efficiencies. These would help in improving
yields, reducing wastes, thereby controlling the production costs. It should also
adopt better manufacturing practices so that the milk manufactured confirms to
the international standards and makes the export competitive.
6.
Another important opportunity which could benefit the company is the efforts to
increase the shelf life of the products. This could be done by adopting such latest
packaging technology that also leads to retaining the nutritive value of the
packaged product.
7.
The company should strive to increase its operation and try to cover a major par
of the country. It should arrange for better storage and transportation facilities.
Hence cold chain needs to be strengthened so that it becomes a competitive edge
for the brand.
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8.
Since the company has been formed as a co operative and not a corporate, it
should also keep in mind that a majority of the population should be benefited.
For example, it is believed that pollution to the environment because of food
chain is a major concern for the country. Hence steps should be taken to protect
the environment and ensure maximum energy efficiency in the activities. For
instance, Mother Dairy plant in Gandhinagar is Indias first environmental dairy
plant. It should further take up on such efforts.
9.
It has been discovered that till now no dairy product company has come out with
the concept of home delivery of their products. The company should evaluate
the success of this opportunity and hence include it in its strategy so as to increase
its market share. This would also be helpful in increasing the brand awareness and
visibility among the target audience.
10.
It is found that the Dhara brand is looking at the strengthening the brand
presence. The company should take steps to promote it.
11.
While analyzing the facts of the primary research, it was discovered that Mother
Dairy has limited strategies for the organized sector and for it, the company
basically focus on aspects like the colour used in display, highlight, and shelf
level of the product. Another strategy which could be adopted is an aggressive
promotional campaign to make the brand presence stronger.
The Indian dairy sector is facing trouble because of the distortions seen in the
dairy sector and the unsuitable government policies. For example, the developed
countries follow a policy of massive export subsidies and domestic production
incentives. On the other hand, Indian dairy sector enjoys no export subsidies or
domestic support. This results in making the developed nations to maximize
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returns to their dairy farmers while insulating them from the global markets.
Hence the Indian dairy sector is affected adversely.
Hence steps should be taken by the government to frame such policies which
benefit the Indian farmers and strengthen the backbone of the Indian dairy
development.
2.
Steps should be taken to raise the quality of the dairy products so that it meets the
international standards in order to have a huge export basket. Another option
could be to enter into some kind of alliances with the other major dairy nations. It
will also help in bringing in new technologies which could result in increasing the
total market share.
3.
4.
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CONCLUSION
The project was carried out with the objective of having a clear understanding about the
marketing strategies in the Indian Dairy sector, by keeping the focus of the study in
respect of the Mother Dairy marketing strategies. It included the process of carrying
out both the primary and the secondary research activities. It can be said that all these
research has lead in finding a lot of important points in respect of the marketing strategies
adopted by Mother Dairy. A few recommendations have also been suggested in the
project.
The importance of the market value and the strategies adopted to enhance the brand value
has been well understood. It is seen that the philosophy behind the marketing strategy of
Mother Dairy has been to develop the brand so as to attract and retain the consumers. The
marketing strategies adopted have resulted in building a sustainable and differential
advantage over its competitors for the brand. The marketing strategies act as a tool to
develop and sustain the appeal of brands in the eyes of the consumers.
Throughout the process of analysis of the thesis, it is observed that the marketing strategy
of dairy sector has been focusing mainly on two aspects:
Mother Dairy is supporting its aggressive brand expansion and strengthening plan with
various innovative marketing strategies.
This is done in the light of the fact that the marketing trends are showing a change. It is
shifting from generic products to packaged brands.
One important feature observed is that the dairy sector has adopted different marketing
strategies for each of the two i.e. organized and unorganized market of the Indian Dairy
sector. This has been done in order to suffice the requirements of all the potential
consumers of the dairy products. Such a strategy is very important as today the
consumers hold a stronger position.
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The research also brought into notice the fact that the marketing strategies were more
successful whose benefits equaled the needs of the consumers. The success of the mass
Indian flavors in ice cream is one such strategy.
However, the company should not blindly follow the strategy of value additions and
expanding the product portfolio. It should first ensure that those new products will have
high acceptance among the consumers. It should be involved in the product portfolio only
after it passes the evaluation process.
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BIBLIOGRAPHY
Leahy, Terry. Retail and the World Economy from images Retail, April 2007, Vol. 6,
No. 4, p. 44.
Faulkner, Kim. Marketing in South East Asia, from Brands and Marketing, The
Economist, London, 2006, pp 203- 204.
Bivani, Kishore. The promised Land for Retailers from images Retail, April 2007,
vol.6, No. 4, p.37.
Bivani, Kishore. It happened in India, Rupa and Co, New Delhi, 2007, p.110.
Madhavan, N.(2007), Mother Dairy fans out with national ambition, Hindustan Times,
Wednesday, May 30, 2007.
www.ibef.com
www.brandasia.com
Harish Bijoor(2005). Jaago New Marketing is here. Video guest lecture at Great Lakes.
C. K. Prahalad and Venkat Ramaswamy (2004). the Future of Competition. Video,
Lessons in excellence, CNBC- TV18
Thomas Grad (2001). 4D Marketing.Book Pearson Education.
Dian Brady and Robert D. Hof (2004). Cult Brands. Business Week. Vol:August 2,
pp.64- 67.
Berry, L.L., Lefkowith, E., Clark, T. (1988), In services, whats in a name, Harvard
Business review, 66, pp.28- 30.
Blackett, T. (1989), The role of brand valuation in marketing strategy, Marketing and
Research Today, 17
Kim, P. (1990), A perspective on brand, Journal of Consumer Marketing, November,
pp.62-7.
http://www.aavinmilk.com/dairyprofile.html, Indian dairy Industry - a profile.
http://www.indiantelevision.com/mam/headlines/y2k4/apr/aprmam80.htm, MPG bags Rs
250 million Mother Dairy account.
Berry, J. (1993a), Brand value isn't about stocks, it's sales and profits, Brandweek, 34,
14.
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Edward M. Tauber, 'Brand Franchise Extension: New Product Benefits from Existing
Brand Names,' Business Horizons, vol. 24 (March-April 1981), p37.
www.dairyfarms.com
www.vivisimo.com
www.economictimes.com
www.vivisimo.com
www.webcrawler.com
www.google.com
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APPENDIX
QUESTIONNAIRE:
The following questions evaluate your views of the Mother Dairy outlet you visited.
Please indicate your opinions about each of the following statements.
Strongly
Agree
1.
2.
3.
6.
Strongly
Disagree
always present.
5.
Disagree
4.
Agree
8.
9.
10.
7.
Pack sizes.
11. What
comes to your mind when you hear the word Mother Dairy?
Mother Dairy
DMS booth
76
Milkman
Elsewhere
13. How often do you visit your nearby Mother Dairy outlet? (put a tick mark)
a. Once in a week
b. 3-4 times in a week
c.
Monthly
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The Project is carried out with the objective to study the marketing strategies of dairy
industry in context to mother dairy. In this Project the consumers attitude towards the
various strategies have also been analyzed. A research methodology has been framed up
to carry on the research work and to achieve the objectives.
The research methodology which has been made is being attached as a word document in
this email.
78
construction of each of those. Now the questionnaire is being framed so as to achieve the
objectives behind carrying out the research. On the other hand, secondary research is also
being carried on to understand the dairy industry and the Mother Dairy brand. The
secondary research is providing a good insight about the Mother Dairy brand.
A rough draft of the questionnaire is being constructed. It is being attached in
this email as a separate document. Besides this, a word document is also attached
which serves as an introduction.
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Date:
Details of the student ( Name ,Batch ,Alumni Id ,Phone No and Email Id )
Name- Chetan Gaur
Batch number
Phone No.
Email ID- [email protected]
Project synopsis ( Attach Project synopsis [ if response sheets are emailed] with
every response sheet )
Date when the guide was consulted:
Progress of the work :
(Students are required to give a gist of the literature review, data collection, analysis
and recommendations etc...) however; the questionnaire (if it is part of the
methodology) has to be complete (use a separate sheet if required).
Earlier the secondary research was carried out to have an insight about the dairy
industry and the Mother Dairy brand. After getting a basic insight about it, now the
work is carried out further. Some of the data which has been collected is now being
analysed and categorized. Few models are being applied like the PEST analysis which
is done. Besides this, few brand executives have been met and have been asked
questions which throw some light on the strategies adopted by them. The responses
from them are being compiled up. A word document is being attached which contains
the PEST analysis which is done.
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82
Project synopsis (Attach Project synopsis [if response sheets are emailed] with
every response sheet): the Project synopsis is being attached in the email as a
separate word document.
Date when the guide was consulted:
Progress of the work :
(Students are required to give a gist of the literature review, data collection, analysis
and recommendations etc...) however; the questionnaire (if it is part of the
methodology) has to be complete (use a separate sheet if required).
The progress of the work is explained in detail in the word document attached in this
mail. The second part of the primary research consists of the formulation and analysis of
the questionnaire. This is carried out as it will throw some light on the consumers
perception and attitude towards the Mother Dairy brand.
This survey will also give information about the reactions of the consumers to the
different strategies adopted by the Mother Dairy brand. The satisfaction of the consumers
thus analyzed would lead to a know how about the success or failure of the marketing
strategies adopted by it. This would help in bridging the gap between the desired and the
expected satisfaction of the consumers to the strategies and grant immense help for the
company in taking decisions about the strategies to be adopted in the near future.
The questionnaire will be filled up by the consumers who are visiting the Mother
Dairy outlets.
While doing the analysis of the questionnaire survey, charts were made for the
responses which were received from the respondents. These charts were of immense help
while the actual findings were observed. After making the charts, various aspects were
linked together to finally arrive at the conclusion.
Comments from internal/external guide:
83
Project synopsis (Attach thesis synopsis [if response sheets are emailed] with
every response sheet ): the Project synopsis is being attached in the email as a
separate word document.
Date when the guide was consulted:
Progress of the work :
(Students are required to give a gist of the literature review, data collection, analysis
and recommendations etc...) however; the questionnaire (if it is part of the
methodology) has to be complete (use a separate sheet if required).
84
The Project is carried out with the objective to study the marketing strategies of dairy
industry in context to mother dairy. The research work had been carried out. It includes
both the primary and the secondary research. The findings from the research work has
been of great help in carrying out the further thesis work. One of the objective of the
thesis has also been to suggest some relevant strategies which could result in improving
the present status of the company. Hence some strategies have been suggested in the end.
The recommendation part is now being carries out . the recommendations given has two
parts- one for the Mother Dairy brand and the another for the Indian dairy sector. A word
document is being attached in this mail which will give an idea about the
recommendations suggested.
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consumers. The marketing strategies adopted have resulted in building a sustainable and
differential advantage over its competitors for the brand.
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