a report on mother india

7/29/2019 A Report on Mother india

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A REPORT ON SALES AND DISTRIBUTION

Submitted to

Placement Department

Submitted by Group members--

Group No.6 Nitin Kumar (group leader)

PGDM 1st Neha agrawal

Section B Neha SinghNidhi Saxena

Nidhi Jain

Nishant Kr.Pathak


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Introduction-- Mother Dairy - Delhi was set up in

1974 under the Operation Flood Programme. It is nowa subsidiary company of National Dairy DevelopmentBoard (NDDB).

Mother Dairy markets dairy products likeLiquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi,

Mishti Doi, Ghee, Butter, Cheese, Dairy Whitener, UHT

Milk, Dhara range of edible oils and the Safal range offresh fruits & vegetables, frozen vegetables and fruit

juices at a national level, through it's sales anddistribution networks, for marketing food items.

Wider spread

However, as far as other dairy products are concerned, Mother Dairyplans to expand across the board. "Other than milk, for most state

federations, dairy products are still a small part of their operations. Sowe are taking our products to regions across India, where we see

enough market potential," says Thachil.

In ice creams, it was only two years ago that Mother Dairy entered its

first market outside Delhi - UP and Punjab. Today, it's extended itsoperation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year,it plans to go south to Hyderabad and Bangalore.

In the case of butter and cheese, it's present across north India,

Mumbai and Kolkata, and has plans to enter Bangalore by year-end. InUTH milk, it has entered Mumbai and the milk-short areas of West

Bengal and north-east. For ghee, although the current focus is the

northern region, it has plans for a nationwide presence.

As far as Mother Dairy's non-dairy products are concerned, edible-oil

brand Dhara has already has nationwide presence.


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Smart marketing

On the marketing front, Mother Dairy says it's trying to take itsproduct campaigns and communications to a higher platform. For

instance, in the case of milk, the campaigns do not talk about theobvious benefits - milk is good for health, it has calcium and so on -

but rather it targets children and are created around ideas such as

"The country needs you, grow faster".

"We are saying we want children to achieve their ambitions faster.

That the product is pure or healthy is a given for us," says Thachil.

As far as products such as butter, cheese and ice creams go, thecampaigns have been created around "taste". For butter again, the

focus is on children. "Amul butter may be selling the most, but the

advertising and promotions are almost always targeted at adults,"points out an analyst citing Amul's popular Utterly-Butterly campaigns.

Here, Mother Dairy has dared to go different. Since 60 per cent butter

is consumed by kids, the company wants them to sit up and takenotice of its butter. Makkhan Singh, a sturdy jovial cow (a cartoon

character) has been made its brand ambassador.

While Mother Dairy has been carrying out school programmes - games

and activities - involving Makkhan Singh in Delhi, it has plans to take

such activities to Mumbai and Kolkata as well. It also runs a gamingwebsite on the character to attract children.

It's cheese for children again. A couple of months ago, Mother Dairy

carried out a retail activity: "Cheese khao superhero ban jao", wherekids buying cheese at a retail outlet were invited for a photo op -

dressed as superheros - through Polaroid cameras; and the framedphotograph was presented to them. The activity was carried out in

about 150 outlets in Delhi and Mumbai, with about 20,000-25,000

snaps being taken.

Cheese was also something that helped the company bond better with

its retailers. In November 2005, retailers in Delhi displayed bannersproclaiming, "Cheese ke saath bees ki cheez," a proposal that said if a

consumer buys Mother Dairy cheese, the retailer can offer him


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anything worth Rs 20 from the shop - which worked better thanoffering something free with the product, which the consumer didn't

even needs.

Thachil claims that the exercise resulted in better ties with retailers. A

positive response made Mother Dairy to repeat it in Kolkota as well.Clearly, Mother Dairy has aggressive plans. But, strong regionalbrands and other co-operatives will continue to give it tough

competition. It will not be a cakewalk anymore.

Distribution & Sales

IN MILK PRODUCTS--

DMS has a network of over 1298 outlet including All Day Milk Stalls(ADMS) for sale of milk and milk products.

a) Concessionaires on DMS outlets 1298

b) Loose Milk Outlets 167

c) All Day Milk Stalls(ADMS) 270d) All Day Milk Stalls in Govt. building 15

Milk booths are allotted to ex-servicemen, retired Govt./semi-Govt.

servants, physically handicapped and un-employed persons.

Sales performance of DMS during the last 5 years

(FIGURES IN LAKH LITRES/AVE. PER DAY)

YEAR DMS MOTHER DAIRY TOTAL2000-01 2.15 - 2.15

2001-02 2.06 - 2.06

2002-03 1.95 - 1.95

2003-04 2.26 0.26* 2.52

2004-05 2.70 0.62* 3.32


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* In order to utilize the excess milk plant capacity and to make theorganization financially viable, custom packing of milk for Mother Dairy

(Delhi) was commenced w.e.f.3.12.2003.

Current Selling Price

S.No. Item Price

1 Toned Milk TM Rs 17 Per Litre

2 Double Toned Milk DTM Rs 15 Per Litre

3 Full Cream Milk FCM Rs 21 Per Litre

4 Loose Milk Rs 16 Per Litre

5 Ghee 1 Ltr Rs 155.00 Per Litre

6 Butter Salt 500 Gm Rs 72.00 Per 500 Gm

7 Butter Plain 500 Gm Rs 75.00 Per 500 Gm

8 Paneer 200 Gm Rs 19.00 Per 200 Gm

9 Paneer 1 Kg Rs 90.00 Per 1000 Gm10 Dahi 200 Gm Rs 8.00 Per 200 Gm

11 Yoghurt 100 Gm Rs 6.00 Per 100 Gm

12 Flavoured Milk 200 Ml Rs 8.00 Per 200 Ml

13 Chhach 20 Ml Rs 6.00 Per 20 Ml

Distribution system (Facts from visit)

DCSM (Driver Cum Sales Man) - Drivers are trained to sell theproducts at the booths. This saves the time and expense on the

workforce.

Control room - Mother dairy ensures milk availability across all the

retail outlets through a control room set up at the dairy premises.The control room is very vital for efficient distribution of milk to all

the retail outlets. It organizes distribution routes so that shops do

not run out of milk.

Wireless with every truck Each milk tanker is fitted with a wireless

set. As soon as the person in the control room learns that a shop isrunning out of milk, he contacts the tanker nearest to the shop on

wireless which, than delivers the milk to the shop.

Indenting system Through this system the booth in charge predictthe demand so as to ensure the availability of products on time and to

meet the occasional demands efficiently.


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IN ICE CREAM SEGMENT

Mother dairy entered into this segment in 1994.

Ice creams are not only for the summer. Indians crave for themthroughout the year, and biggies like Amul and Mother Dairy have

realised it. Therefore, the companies have decided that the marketing

season will be a round-the-year affair.

Ice cream consumption in India is much lower than in

other countries. The domestic per capita consumption is 500 ml per

year against 4 litres in Singapore and 25 litres in the US. There is ascope for the market to grow almost seven-fold to reach the global

average, ice cream marketers feel.

Paul Thachil, CEO of Mother Dairy India, said, Ice cream is more of an

impulse buy, so we focus on the impulse market. We are

strengthening this segment by introducing new tastes.

Visibility is also important to push sales. Mother Dairy is

planning to open 10,000 selling points, including both carts and

parlours.

Mother Dairy is also taking advantage of the retail boom. It in talks

with Food Bazaar, Reliance Retail and other chains to set up parlours

within their stores. Amul is planning to make itself available in 50,000more retail outlets.

While Kwality Walls is present in 20 cities, Mother Dairy is present in50 cities and is targeting 50 more, Amul is already present in 10,000

cities.


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Sales figures62% of the market has been captured in Delhi.

Mother Dairy claims that its sales drop by only 10 to 20 per cent

during the winters. Its products sell well during September to

November, which is the festive season.

Sales also vary according to the climactic conditions in the different

parts of the country. People in the hilly areas may not be too keen onice creams during the winter, but the residents of Mumbai and Calcutta

do not mind having them in the cold weather. However, the take-home

variety sells more than the impulse variety.

Mother Dairy is expecting a 40 per cent rise in sales. As part of their

growth strategies, company is planning to focus on eastern India,

which they feel has a tremendous potential.

Mother Dairy has recently opened a factory in Dhulagarh, near

Howrah.

a report on mother india

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