reliance dairy foods ltd

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EXECUTIVE SUMMARY The present study assesses the factors affecting brand switching of packaged milk (RDFL) & to provide suggestive measures to RDFL to increase the market share. The study was conducted in South Extension and Kotla regions of New Delhi the capital of INDIA. The conclusion of the findings of the research shows that consumers were not satisfied with quality and taste of RDFL milk. There was lack of awareness among consumers regarding the brand and the product. Company was also lagging in terms of reach to customers. MAJOR FINDINGS: The Delhi and NCR packaged milk market comprises around 4.5 million liters per day (MLPD) of milk currently and is dominated by Mother Dairy 2.8 million liters per day. The three important parameters which effect the buying decision of Household consumers are quality, taste and ease of availability while in case of Institutional consumers these are quality, ease of availability and price. 1

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Page 1: Reliance Dairy Foods Ltd

EXECUTIVE SUMMARY

The present study assesses the factors affecting brand switching of

packaged milk (RDFL) & to provide suggestive measures to RDFL to increase

the market share. The study was conducted in South Extension and Kotla

regions of New Delhi the capital of INDIA. The conclusion of the findings of

the research shows that consumers were not satisfied with quality and taste of

RDFL milk. There was lack of awareness among consumers regarding the brand

and the product. Company was also lagging in terms of reach to customers.

MAJOR FINDINGS:

The Delhi and NCR packaged milk market comprises around 4.5 million

liters per day (MLPD) of milk currently and is dominated by Mother

Dairy 2.8 million liters per day.

The three important parameters which effect the buying decision of

Household consumers are quality, taste and ease of availability while in

case of Institutional consumers these are quality, ease of availability and

price.

The major reasons for not trying RDFL milk were lack of awareness of

product and non-availability of the product for both household and

institutional consumers.

The major reasons for discontinuation of RDFL milk by Household and

Institutional consumers were non-availability and quality related issues.

The consumers were frequently facing problem of early spoilage of milk.

The major problems faced by retailers were leakage in milk pouches,

early spoilage of milk, late and irregular supply by distributor and lack of

promotional activities by the company.

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Sales closing reasons mainly include quality related issues, issues related

to distributors, replacement policy regarding spoiled milk and leaked

pouches, lack of promotional activities and lack of interaction with

retailers and lack of quality reporting by RDFL officials.

Company is facing huge competition from other players in terms of supply chain, reach to consumers and number of retailers and distributors.

SUGGESTIONS:

As consumers were not satisfied with quality and taste of RDFL milk, the company should try to conduct camps and awareness programme to overcome this thinking of people.

To raise the consumer awareness regarding adulteration of milk, RDFL can open its testing facilities.

The vehicles used for transportation should be properly insulated to reduce the chances of spoilage of milk due increase in temperature.

To increase awareness regarding the brand and product, promotional activities need to be increased and small banners should be provided to retailers.

RDFL can open its own outlets to get maximum advantage of demand of dairy products which will also help in strengthening the brand.

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Company Profile

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"Between my past, the present and the future, there is one common factor:

Relationship and Trust. This is the foundation of our growth."

Shri Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

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Page 5: Reliance Dairy Foods Ltd

Mukesh D. Ambani

Chairman & Managing Director

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is

India's largest private sector enterprise, with businesses in the energy and

materials value chain. Group's annual revenues are in excess of US$ 28 billion.

The flagship company, Reliance Industries Ltd, is a Fortune Global 500

company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution

and growth of Reliance. Starting with textiles in the late seventies, Reliance

pursued a strategy of backward vertical integration - in polyester, fibre

intermediates, plastics, petrochemicals, petroleum refining and oil and gas

exploration and production - to be fully integrated along the materials and

energy value chain.

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The Group's activities span exploration and production of oil and gas,

petroleum refining and marketing, petrochemicals (polyester, fibre

intermediates, plastics and chemicals), textiles, retail and special economic

zones (SEZ).

Reliance enjoys global leadership in its businesses, being the largest

polyester yarn and fibre producer in the world and among the top five to ten

producers in the world in major petrochemical products.

Major Group Companies are Reliance Industries Ltd (including main

subsidiary Reliance Retail Ltd) and Reliance Industrial Infrastructure Ltd.

INDIAN RETAIL INDUSTRY

Indian Retail Industry is ranked among the ten largest retail markets in

the world. The attitudinal shift of the Indian consumer in terms of “Choice

Preference”, “Value for Money” and the emergence of organized retail formats

has transformed the face of Retailing in India.

The Indian retail industry though predominantly fragmented through the

owner -run " Mom and Pop outlets" has been witnessing the emergence of a few

medium sized Indian Retail chains, namely Pantaloon Retail, RPG Retail,

Shoppers Stop, Westside (Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers like

Wal-Mart, Carrefour SA, Europe's largest retailer and Tesco Plc, the UK's

largest retailer, were keen to enter this growing market, despite the Indian retail

sector being closed to foreign direct investment (FDI). In February 2006, the

Indian Government had announced its decision to allow FDI of up to 51% in

single brand retailing.

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RELIANCE RETAIL LTD

With a vision to generate inclusive growth and prosperity for farmers,

vendor partners, small shopkeepers and consumers, Reliance Retail Ltd (RRL),

a subsidiary of RIL, was set up in 2006 to lead Reliance Group’s foray into

organized retail. Reliance is gearing up to revolutionize the retailing industry in

India. Towards this end, Reliance is aggressively working on introducing a pan-

India network of retail outlets in multiple formats.

A world class shopping environment, state of

art technology, a seamless supply chain infrastructure,

a host of unique value-added services and above all,

unmatched customer experience, is what this initiative

is all about.

The retail initiative of Reliance will be without a parallel in size and

spread and make India proud. Ensuring better returns to Indian farmers and

manufacturers and greater value for the Indian consumer, both in quality and

quantity, will be an integral feature of this project.

The project will boast of a seamless supply chain infrastructure,

unprecedented even by world standards. Through multiple formats and a wide

range of categories, Reliance is aiming to touch almost every Indian customer

and supplier.

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RIL's Retail Project will be through the following companies:

Reliance Retail Ltd Subsidiary of RIL

Reliance Fresh Ltd Subsidiary of Reliance Retail Ltd

Retail Concepts and Services (India) Ltd Subsidiary of Reliance Retail Ltd

Reliance Retail Insurance Broking Ltd Subsidiary of Reliance Retail Ltd

Reliance Dairy Foods Ltd Subsidiary of Reliance Retail Ltd

Reliance Retail Finance Ltd Subsidiary of Reliance Retail Ltd

RESQ Ltd Subsidiary of Reliance Retail Ltd

Reliance Digital Retail Ltd Subsidiary of Reliance Retail Ltd

Reliance Financial Distribution and

Advisory Services LtdSubsidiary of Reliance Retail Ltd

Reliance Hyper mart Ltd Subsidiary of Reliance Retail Ltd

Reliance Retail Travel & Forex Services Subsidiary of Reliance Retail Ltd

Reliance Brands Ltd Subsidiary of Reliance Retail Ltd

Reliance Wellness Ltd Subsidiary of Reliance Retail Ltd

Reliance Footprint Ltd Subsidiary of Reliance Retail Ltd

Reliance Integrated Agri Solutions Ltd Subsidiary of Reliance Retail Ltd

Reliance Trends Ltd Subsidiary of Reliance Retail Ltd

Reliance Lifestyle Holdings Ltd Subsidiary of Reliance Retail Ltd

Reliance Universal Ventures Ltd Subsidiary of Reliance Retail Ltd

Reliance Autozone Ltd Subsidiary of Reliance Retail Ltd

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Reliance Retail Ltd Subsidiary of RIL

Strategic Manpower Solutions Ltd Subsidiary of Reliance Retail Ltd

Reliance Gems and Jewels Ltd Subsidiary of Reliance Retail Ltd

Delight Proteins Ltd Subsidiary of Reliance Retail Ltd

Reliance F&B Services Ltd Subsidiary of Reliance Retail Ltd

Reliance Agri Products Distribution Ltd Subsidiary of Reliance Retail Ltd

Reliance Leisures Ltd Subsidiary of Reliance Retail Ltd

Reliance Retail Securities and

Broking Company LtdSubsidiary of Reliance Retail Ltd

Reliance Home Store Ltd Subsidiary of Reliance Retail Ltd

Reliance Trade Services Centre Ltd Subsidiary of Reliance Retail Ltd

Reliance Food Processing Solutions Ltd Subsidiary of Reliance Retail Ltd

Reliance Supply Chain Solutions Ltd Subsidiary of Reliance Retail Ltd

Reliance Loyalty & Analytics Ltd Subsidiary of Reliance Retail Ltd

Reliance Digital Media Ltd Subsidiary of Reliance Retail Ltd

Reliance-Grand Optical Private Ltd Subsidiary of Reliance Retail Ltd

Reliance Vantage Retail Ltd Subsidiary of Reliance Retail Ltd

Reliance People Serve Ltd Subsidiary of Reliance Retail Ltd

Reliance Infrastructure Management

Services LtdSubsidiary of Reliance Retail Ltd

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Reliance Retail Ltd Subsidiary of RIL

Reliance One Enterprises Ltd Subsidiary of Reliance Retail Ltd

Reliance Personal Electronics Ltd Subsidiary of Reliance Retail Ltd

Reliance Review Cinema Ltd Subsidiary of Reliance Retail Ltd

Reliance Replay Gaming Ltd Subsidiary of Reliance Retail Ltd

Reliance Nutritional Food Processors Ltd Subsidiary of Reliance Retail Ltd

Reliance Petro Marketing Ltd Subsidiary of Reliance Retail Ltd

LPG Infrastructure (India) Private Ltd Subsidiary of Reliance Retail Ltd

Growth through Value Creation

Since its inception in 2006, Reliance Retail Ltd (RRL) has grown into an

organisation that caters to millions of customers, thousands of farmers and

vendors. Based on its core growth strategy of backward integration, RRL has

made rapid progress towards building an entire value chain starting from the

farmers to the end consumers.

In the last year, Reliance Retail Ltd (RRL) continued to fulfil its

commitment of enriching Indian consumer’s shopping experience and providing

quality merchandise at an attractive value proposition. More than 3 years into

operation, RRL has now expanded its presence in more than 85 cities across 14

states in India. RRL forged ahead with its expansion plans and rolled out stores

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across the country. RRL’s footprint now spans a network of more than 1,000

stores.

RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats

that RRL operates are: ‘Reliance Fresh’, a neighbourhood concept, ‘Reliance

Mart’, an all under one roof supermarket concept & ‘Reliance Super’, a mini-

mart concept. The ‘value’ formats offer a wide range and assortment of

products required for daily household needs. The ‘specialty’ formats are:

‘Reliance Digital’, a consumer durables & information technology concept,

‘Reliance Trends’, an apparel & accessories concept, ‘Reliance Wellness’, a

health, wellness & beauty concept, ‘iStore by Reliance Digital’, an exclusive

Apple products concept, ‘Reliance Footprint’, a footwear concept, ‘Reliance

Jewels’, a jewellery concept, ‘Reliance TimeOut’, a books, music &

entertainment concept, ‘Reliance AutoZone’, an automotive products & services

concept and ‘Reliance Living’, a homeware, furniture, modular kitchens,

furnishings concept.

RRL rapidly expanded the stores network it operates through strategic

partnerships with world-class companies such as Marks & Spencer and Pearl

Europe. RRL also entered into an exclusive distribution arrangement with Asics

Corporation Japan to market Asics brands of shoes and accessories in India.

RRL has recently opened its flagship store under its franchise agreement with

Hamleys and plans to expand the store network in the coming year. RRL has

also expanded its presence in business-to-business office supplies through its

joint venture with Office Depot.

Through ‘Reliance One’, RRL’s loyalty membership program, RRL

enjoys the patronage of over 5.5 million customers. In the coming year, RRL

will continue on its mission to delight the customers every visit. RRL will 11

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continue to provide unprecedented value to customers across all its formats and

stores.

Retail and Franchising Awards

Franchise Award 2005.

Innovative Retail Concept of the year - Special Award

Best Franchiser of the year Award - 2005 Star Award, Hall of Fame

across all categories

Innovation and Technology in Franchising - (The Reid & Taylor

Awards for Retail excellence) at The India Retail Summit 2005 for its

various innovations in Petroleum Retailing.

Retail Concept of the year for Reliance Truck Stops- Images Retail

Awards at India Retail Forum 2005.

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Reliance Retail Enters Dairy Sector with Liquid Milk

RIL at Hotel Inter Continental The Grand, Mumbai, on 12th October 2006, organized

a seminar on “Dairy Industry - Current and Future Packaging Trends”

Entry in dairy sector through RIL’s retail dairy venture Reliance Dairy

Foods Ltd was probably one of the best-guarded secrets about Reliance

Industries Ltd’s (RIL) Rs 3,375 crore retail forays. RIL is planning to make

dairy products an important growth driver of the retailing venture.

With a veteran of the dairy industry, Harsev Singh, a senior executive of

the National Dairy Development Board who was on deputation with Verka,

the Punjab cooperative milk marketing federation for some time, being roped in

to head RIL’s retail dairy venture.

RIL is making mega plans to take on dairy biggies like Amul. RIL also

expressed a willingness to even provide micro finance to farmers to buy cattle

and establish their own milk auction markets or mandis. Not only that, RIL is

also eyeing the Netherlands, which apart from having a world-class dairy

industry, is also an acknowledged leader in dairy technologies. RIL retail

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venture may collaborate with the Dutch both for technological know-how as

well as a potential export market.

Milk is big business in retailing as it ensures footfall and dairy products

constitute 15% of the retail business. Most large multinational retail majors also

have their own branded dairy produce.

Reliance Retail has stepped into the dairy products sector in 2007 with a

national ‘pilot’ launch of its liquid milk (family milk segment) in Hyderabad,

Andhra Pradesh. Reliance Retail currently has its processing and packaging

facilities in Andhra Pradesh, Haryana and Rajasthan.

The milk brand “Dairy Life” is being sold through Reliance stores and

general trade (including milk retailers) in Haryana, Punjab, Andhra Pradesh,

Tamil Nadu, Rajasthan, NCR (National Capital Region) and Himachal Pradesh.

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ORGANISATIONAL HEIRARCHY

Central Organization:

State Organization:

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Cheif Executive OfficerProject Planning Head

Milk Procurement Head

Plant Head

Quality Head

Sales & Distribution Head

HR Head

Commercial Head

Logistics Head

State Head

Commercial Head

Procurement Head

Plant HeadSales &

Distribution Head

Page 16: Reliance Dairy Foods Ltd

Financial highlights of Reliance Dairy Foods Limited

Financial Results:

The performance of the Company for the financial year ended March 31,

2010 is summarized below:

2009-2010 2008-2009

Profit/ (Loss) Before

Depreciation, Interest and Tax

(386.31) (434.47)

Less: Interest 3.36 0.62

Depreciation 228.66 181.71

Profit/ (Loss) before Tax (618.33) (616.80)

Less: Provision for

Taxation

Fringe

benefit Tax

- 10.14

Deferred Tax (203.04) (176.89)

Profit/ (Loss) after Tax 415.29 450.05

Add: Balance brought

forward from previous year

(763.39) (313.34)

Balance carried to Balance

Sheet

(1178.68) (763.39)

(Rupees in Millions)

Operational Review:16

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The Company strengthened its presence in the milk retailing business by

launching ‘Dairy Pure’ brand that are sold through general milk retailers along

with Reliance Fresh stores. The Company presently operates in Andhra Pradesh,

Haryana, Tamil Nadu, Maharashtra, Delhi, Punjab, and Rajasthan and is

confident to further grow with the extension of product portfolio. The Company

has incurred a loss of Rs. 415.29 Million for the financial year ended March 31,

2010. With the optimization of resources and further scaling up of operations,

the Company is confident of posting better results in the future.

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Profit and Loss Account for the year ended 31st March, 2010

2009-10 2008-09

INCOME

Turnover 29,349.25 17,804.99

Other Income 2.84 0.16

Variation in Stocks 996.86 2,393.03

30,348.95 20,198.18

EXPENDITURE

Purchases 942.11 527.86

Manufacturing and other Expenses 29,793.15 20,104.79

Interest and Finance charges 3.36 0.62

Depreciation 228.66 181.71

30,967.28 20,814.98

Profit/ (Loss) before Tax (618.33) (616.80)

Provision for Fringe Benefit Tax - 10.14

Provision for Deferred Tax (203.04) (176.89)

Profit/ (Loss) after Tax (415.29) (450.05)

Add: Balance brought forward from

Previous Year

(763.39) (313.34)

Balance carried to Balance Sheet (1,178.68) (763.39)

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Dairy Industry

Table: World dairy market at a glance

  2007 2008estimate 2009 forecast Change:

2009 over

2008

  million tonnes milk equivalent %

WORLD BALANCE

Total milk production 76.1 687.7 699.

0

1.6

Skim Milk Powder (SMP) 4.1 24.6 25.0 1.6

Whole Milk Powder (WMP) 0.8 31.6 32.1 1.6

Butter 0.3 62.3 64.0 2.7

Cheese 5.9 87.9 89.8 2.2

Other products 75.1 481.3 488.

0

1.4

Total trade 9.4 39.7 39.4 -0.8

SUPPLY AND DEMAND

INDICATORS

Per capita food consumption:

World    (kg/year) 02.4 103.1 103.

6

0.5

Developed countries  (kg/year) 45.4 246.9 249.

6

1.1

Developing

countries

(kg/year) 4.0 65.5 66.9 2.1

Trade – share of (%) 0.8 5.8 5.6

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Production

    2007 2008 2009 Change:

Jan-May

2009 over

Jan-May

2008(%)

FAO Dairy Price

Index

 

( 2002-2004=100)   12 220 119* -52

* Jan-May 2009

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Introduction to

Indian Dairy Industry

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INDIAN DAIRY INDUSTRY: An Overview

India‟s calendar year (CY) 2010 milk production is estimated at 117

million tons and is forecast to increase approximately 4 percent to a record

121.5 million tons in 2011, reflecting a near normal monsoon, improving

management practices, increasing efforts of the private and public sector to

improve cattle genetics, and good feed/fodder availability. In March 2010, India

permitted duty-free imports of 30,000 tons of non fat dry milk (NFDM) and

15,000 tons of butter oil, due to concerns of a repeat of the 2009 weak monsoon.

However, a sufficient 2010 monsoon, accompanied by the duty-free imports,

has led to carry over stocks for next year

Indian dairy has come of age! India has not only emerged as a largest

producer of milk, having crossed 100 million tons mark, it has also entered the

international trade market with a bang. The export of milk products, during the

financial year 2005-06 were 59,746 MT, including 40,436 MT of SMP

(Skimmed Milk Powder), which declined due to ban imposed on export of SMP

by GOI. This ban has resulted not only in the loss of business, but also loss of

face in international markets. The ban was imposed to control the rising food

prices. One may ask, ‘Why are millions of our farmers being deprived of

making money, just to keep consumers in metro happy?’

As the world‟s largest producer of dairy products (by volume) and home

to the world‟s largest dairy herd, India nonetheless faces a milk supply gap due

to increasing demand from a growing middle class population. Industry sources

currently estimate that Indian dairy production is growing at a rate of about 4

percent per year, while consumer demand is growing at approximately double

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that rate, thus contributing to forecasted record growth of domestic production

of liquid milk and butter. In response to strong demand for milk products, the

Indian dairy industry is raising production in several ways. For example,

farmers have responded to increasing dairy prices by increasing herd sizes, as is

reflected in the 2007 Indian livestock census (updated as of 2010). Additionally,

those farmers working directly with organized-sector buyers (industry estimates

that between 40 and 50 percent of dairy producers work with the organized

sector) generally have access to modern extension services, thus improving

management, feeding, fertility and veterinary care. Many of these extension

service providers offer artificial insemination services, further improving milk

yields with new dairy cattle genetics. Artificial insemination services are

expected to grow in the future, as the government of India continues to develop

protocols for imported genetics products as well as encourage the growth of

genetics services throughout the country. Finally, commercial dairies continue

to build their presence in India.

Based on the general trends outlined above, Post forecasts CY2011 liquid

milk production at 121.50 million tons, approximately 4 percent more than the

estimated record 117 million tons in 2010. CY 2010 liquid milk production is

revised to reflect greater than 4 percent growth over 2009 production due to a

strong monsoon and related good fodder availability. Despite a weak monsoon

in CY 2009, Indian dairy production was still strong, with liquid milk

production coming in at 112 million tons. This was likely due to improved

management practices. Note that the Post production, supply and demand (PSD)

estimates for liquid milk, NFDM and butter have been generally revised to

reflect the calendar year in lieu of the April/March marketing year, necessitating

a general shift in production and trade values over the past 10 years. Some

production revisions were also made to reflect updated livestock numbers

following the recent publication of the Indian Livestock Census through the

year 2007 (See Gain Report IN1082). 23

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CY 2011 production of NFDM is forecast to increase to 410,000 metric

tons. The growth in production is being driven by increasing demand for dairy

products from India‟s growing middle income population. Post has revised

NFDM production estimates for CY 2010 downwards by 25,000 metric tons to

375,000 metric tons. The downward revision is due to India‟s import of 30,000

metric tons of milk powder at „nil‟ duty in 2010, which was tendered on

concerns of a supply crunch in 2009. However, a good monsoon in 2010

resulted in good milk production, and with significant imports of NFDM and

strong demand for liquid milk, it is estimated that domestic production of

NFDM will fall slightly in 2010. NFDM production in 2009 is also revised

downwards by 10,000 metric tons at 360,000 metric tons. Although milk

production grew in 2009, liquid milk consumption continued to grow at a

greater pace, leading to lower NFDM production in 2009. Increased demand for

reconstituted milk during the lean season and consistent exports of NFDM are

also drivers supporting increased production of milk powder.

Post forecasts 2011 production of combined butter and ghee (clarified

butter) to increase by 25,000 metric tons to 4.18 million metric tons, following

India‟s increasing production trend. 2010 butter production is pegged at 4.16

million metric tons due to the expected record milk production. Post has not

changed the production estimates of butter for 2009, previously forecasted at

3.91 million metric tons

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The Indian dairy sector is unique in its emphasis on both cattle and

buffalo milk. Out of the total bovine population in milk in India, 40 percent

are indigenous cows, 46 percent are buffaloes and 14 percent are imported

European or North American cattle crossbreeds. Out of the total milk

produced in India, 55 percent or slightly more comes from buffaloes, and the

remainder from dairy cows. Traditionally, buffalo milk has been preferred for

its high milk fat content. However, as the organized sector procures more

milk, dairy cattle are increasing in popularity due to their increased yields and

shorter dry periods.

. In India, the market milk technology may be considered to have

commenced in 1950, with the functioning of the Central Dairy of Aarey Milk

Colony, and milk product technology in 1956 with the establishment of

AMUL Dairy, Anand.

Organized milk handling was started 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.

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.

Milk Plants were established under the Five-Year Plans for Dairy

Development all over India. These were taken up with the dual objective 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.

Indian Dairying is unique in more than one ways. It ranks first with its

185.2 million cattle & 97.9 million buffaloes accounting for about 51 percent

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of Asia’s and about 19 per cent of world’s bovine population. India is also the

world’s largest milk producer, accounting for around 13.1% of world’s total

milk production. It is the world’s largest consumer of dairy products.

According to the National Dairy Development Board (NDDB) milk

production is increasing at one percent per annum in the world, while it is

increasing at around 4 percent in India. Dairy products are a major source of

cheap and nutritious food to millions of people in India and the only

acceptable source of animal protein for large vegetarian segment of Indian

population, particularly among the landless, small and marginal farmers and

women. This impressive growth effort speaks volume about the co-

coordinated efforts of large number of milk producing farmers, scientists,

planners, NGO’s and industry in achieving self-sufficiency in milk

production.

The dairy foods space offers high margins of 10-12% that keeps

growing. In terms of investment, companies need to make one-time

investment for setting up processing units and supply chain units with cold

storage facilities. The above features attract investment from private dairy

companies. Now in India there are good numbers of private players in this

sector like Nestle India Ltd, Parag Milk Foods, Reliance Dairy Foods Ltd,

DMS, Gopalji, Britannia, and Paras Foods etc. It is good for the market to

have more players and entry of large corporate houses would be beneficial

for farmers as well as customers. But sizeable market presence cannot be

built overnight in milk business and needs strong procurement and marketing

network.

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Production Policy

Dairy production in India is characterized by a low input-low output

system, whereby smallholder producers typically own no more than five

cattle or buffalo and use locally available feedstuffs. While yields are below

international averages, production costs are amongst the lowest in the world.

Although animals are generally stall-fed, low production costs and low yields

means that animal feeding typically relies on agricultural residues rather than

grain based feeds or special fodder. As dairy product prices continue to rise

and stable incomes from milk procurement become more available, there is a

small but slowly growing trend amongst farmers to increase herd sizes and

specialize in dairying. Additionally, private sector investors are building

larger dairies, often in partnership with a major dairy processor.

Indian dairy policy is currently focused on increasing milk output

through a number of incentive schemes. While breeding stock development

continues to take place through the Ministry of Agriculture‟s research

programs, the government of India has also taken steps to allow the

importation of high quality genetics. Currently, India allows imports of

bovine semen and embryos (subject to strict quality norms). Additionally, the

GOI launched the „National Project for Cattle and Buffalo Breeding

(NPCBB)‟ in October 2000. This program has targeted improving Indian

indigenous breeds on a priority basis over a ten year period with an allocation

of USD 255 million (Economic Survey 2009-10). The private sector is also

playing a role by providing extension activities oriented at ensuring a stable

supply of high-quality milk for procurement. Through the private sector,

Indian dairy farmers are receiving artificial insemination services, veterinary

care and other livestock management training. As genetic improvements

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become more available, it is expected that Indian producers will continue to

use higher yielding foreign cattle breed/local breed hybrid crosses, often

provided through their milk procurement company‟s own extension services.

In 2010, the government, along with the National Dairy Development

Board, has drawn up a National Dairy Plan (NDP) with a proposed outlay of

around USD 378 million to nearly double the country‟s milk production by

2020. This plan will focus on increasing milk productivity of the Indian dairy

herd through several means, including the use of imported genetics as well as

selective breeding of local cattle. Additionally, the NDP proposes to improve

access to quality feeds and improve farmer access to the organized market, by

increasing cooperative membership and growing the network of milk

collection facilities throughout India. (National Dairy Development Board).

Milk Production:

The total amount of milk produced has increased from 21.2 million

tonnes in 1968 to 108.5 million tonnes in 2008-09.

India is the largest producer of Milk in the World.

Per capita availability of milk presently is 258 grams/day in 2008-09,

increased from 112 grams/day in 1968-69.

Milk production in India is growing at 3.7 %/year and the net increase

in availability is around 2.3 %/year.

Contributing about 5.3 % to India’s agricultural GDP, milk is a leading

agricultural produce.

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Milk Processing:

About 35% of total milk produced in the country is processed.

The organized sector process about 1.3 crore tonnes annually while the

unorganized sector processes about 2.2 crore tonnes.

There are currently 676 dairy plants in the organized sector that

combines cooperative, private and government sector units.

ABOUT THE PRODUCT

Milk is the secretion derived after complete milking of healthy

milk animal, excluding that obtained within 15 days before or after 10

days of calving.

Key Facts about Milk:

Milk is a rich source of calcium,

vitamins and protein.

Contrary to common belief milk is

not high in fat.

For those concerned about their

overall fat intake, reduced fat milks

such as semi skimmed and

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skimmed milks, have lower energy content but without significant

nutrient loss.

Cows’ milk is not suitable as a drink for infants under twelve months.

From six months onwards, cows’ milk can be added in small amounts

to foods in order to soften them.

In children’s diets, semi-skimmed (sometimes called ‘low-fat’) milk

should not be introduced until two years. Provided that the child is a

good eater and has a healthy diet, skimmed milks may be introduced

gradually from five years onwards.

Milk and water are healthier options than soft drinks.

Flavoured milks offer a good option for children who do not like the

flavour of plain milk. Their higher sugar content, however, can affect

dental health, so they should be consumed with meals.

Pasteurised milk should be stored at a temperature of 5°C or less.

Constituents of Pasteurised packaged Milk

Milk Variants FAT (in %) SNF (in %)Available Pouch

Variants (volume)

Full Cream Milk 6 9 1, 1/2 litre

Toned Milk 3 8.5 1, 1/2 litre

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Double Toned Milk 1.5 9 1, 1/2 litre, 200ml.

SUPPLY CHAIN

Process of procurement, processing, packaging & distribution of Milk:

Procurement from farmers

The company is collecting milk on daily basis from villages through

the cooperative method. Besides, the main feature is that in every village

from where milk is being procured by RIL, it has installed a fat and solid net

fat machine to check the fat and other contents in the milk. These machines

have been imported from Bulgaria, as at present the machines being used by

the cooperatives can only check the fat content. Also, this machine gives an

instant result and a print comes out, after which the farmer is paid on the spot

depending on the quality of his milk.

To maintain freshness after procuring the milk, the company has

established Milk Chilling Centres (MCC), one centre for every 50 villages,

where the milk is chilled and then transported to milk plants for final

processing. The objective of the company is that the milk is chilled in two

hours, as other companies take about four hours, thus ensuring better

freshness. From MCC milk is transported to plant through tankers.

Checking the quality of milk

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At the Dairy stringent hygienic standards are maintained. The milk in

the tankers is first checked for quality and freshness and then unloaded into

huge insulated stainless steel storage tanks. The presence of adulterants

(impurities) like urea, neutralizers, preservatives and germs like bacteria are

checked. All these tests ensure that only good quality milk is accepted. The

storage tankers are thoroughly cleaned and sanitized using acid and alkali. The

tankers are then finally rinsed with water.

Processing of milk

Unprocessed milk may contain small dirt particles invisible to the

naked eye. In order to remove these particles the milk has to be processed.

To process milk, the milk is first clarified. This is done in a clarifier

which spins the milk at a very high speed, as a result of which the dirt

particles are thrown out and drained.

The milk is then pasteurized to make it safe for human consumption.

This process destroys any disease causing microbes and also increases the

shelf life of the milk. During pasteurization the milk is heated to 80o Celsius

and then rapidly cooled down. This process, unlike boiling, does not affect

the nutritional value of the milk. Pasteurized milk is safe to drink without

boiling as long as it is kept cool at all times.

Homogenization

At Reliance Dairy plants the milk is also homogenized. This ensures

that the customers get uniform amount of cream in their milk.

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In this process the milk is pumped at a very high pressure turning the

cream into tiny droplets thus distributing the fat throughout the milk. These

droplets do not float to the surface to form a creamy layer. That is why no

creamy layer appears when RDFL milk is boiled at home.Packaging of milk

Dairy products being a highly perishable product, utmost care is

needed in its preservation during storage, handling and transportation. At

RDFL, after processing, the milk is chilled and stored in silos and then

packaged in 6 litres, 1 litre, 500 ml, and 200 ml. flexible pouches. Flexible

pouches have proved to be safe, quick and cost effective with a wide

distribution network, providing ease of packaging and handling. In the form-

fill-seal system, the plastic film is formed into a tube, sealed along its length,

sealed at the bottom to form a pouch, filled with milk and then sealed at the

top. During packaging leaked packets are separated and are again sent to a

separate pasteurized milk silo.

Storage at Cold room

The packages are then transferred to cold room in plastic crates for

storage till distribution. The Cold room is kept clean and its temperature is

kept below 4o Celsius. This prevents spoilage of milk.

Distribution of milk

The milk is distributed through insulated vehicles. The milk is sold

through general milk retailers and Reliance Retail-owned stores. Distribution

is done through private distribution agencies which supplies milk to retailers.

Distributor sends their demand to office which is conveyed to plant on daily

basis.

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Keeping milk cool

RDFL takes care to keep milk cool and it is chilled before transporting

in insulated vehicles. Keeping milk cool slows down the rate at which

bacteria multiply. This also increases its shelf life.

RESEARCH OBJECTIVES

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RESEARCH OBJECTIVES:

1. Assessing the present status of milk market of different brands

(packaged milk) in South Delhi.

2. Exploring the factors responsible for switching of customers from

RDFL to other brands.

3. Suggesting suitable measures to increase market share of RDFL in

study area.

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SCOPE OF THE STUDY:The research will highlight the areas where RDFL is lacking in

providing milk products. RDFL will also know the new ways to provide

better products to its customers and also add value to the customers.

This study will help in ascertaining what efforts RDFL should

undertake to improve its customer relations. This study will also highlight the

various factors that lead to lower level of customer satisfaction.

The suggestions given by the researchers at the end of the report will

help RDFL to overcome the problems it faces to provide the best product to

its customers.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Research Type:

Conclusive

Data sources:

Primary data and secondary data

Research approach:

Survey method

Research instrument:

Questionnaire

Type of questions:

Open ended and close ended

Elements:

Household Consumers and Retailers

Method of collecting the data:

Data was collected by personal interactions

Sampling units:

South Delhi: Kotla & South Extension

Period of study conducted –

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5th May-5th July, 2011

Data analysis

The collected data was depicted in the form of bar charts and pie charts

Statistical tool- arithmetic mean, percentage etc. are used.

SAMPLING DESIGN

 Population size:

A total of 500 household customer’s list which was provided by the different retailer of study area.

Sampling technique:

Convenience sampling

Sample size:

80 household customers and 15 retailers.

LIMITATIONS

The response of the customers can be biased.

The response of the retailers can be biased.

The researchers were novice.

There were financial constraints.

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The sample size was small and the research is Ltd to South Delhi and

some part of Haryana state viz: Malviya Nagar, Kotla, Chirag Delhi,

DuxshinPuri, Marauli, Defence colony, Shahpurjat, Madangir,

Munirka, Tuglakabad Ext. Sarta Vihar, Bhogal, Jangpura, Badarpur,

areas only. So, it is difficult to get a holistic view of New Delhi.

The time period was also Lt

SWOT Analysis of RDFL

STRENGTHS

The major strength of the

RDFL is a recognized BRAND

name as it is a subsidiary of

Reliance Industries Ltd.

The increasing demand for milk

products presents a great

opportunity for the RDFL to

increase and scale up the

production.

RDFL is having a competitive

edge in terms of pricing.

WEAKNESS

Absence of RDFL Outlets.

New player in Dairy sector.

Supply Chain Management is

weak in comparison to

competitors.

OPPORTUNITIES THREATS

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There is a scope of business as

there is a demand for dairy

products.

RDFL should open its own

outlets to get the maximum

advantage of the demand.

Need to put more stress in the

face-to-face direct marketing to

reach to the customers.

Dairy products are highly

income elastic.

Presence of established players

like Mother Dairy, Amul and

DMS.

Margin is very low in dairy

industry.

Strong supply chain management

by the competitors.

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Findings of the Research

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Delhi NCR market:

Delhi National Capital Region (NCR), among the biggest milk markets

in the country, is dominated by Mother Dairy currently.

Delhi‘s estimated 4.5 million liters per day (MLPD) of organized

liquid milk is dominated by Mother Dairy (2.8 MLPD) and Gujarat

Cooperative Milk Marketing Federation (GCMMF or Amul, which

sells 1 MLPD). Besides these two, there is the public sector Delhi Milk

Scheme (0.3 MLPD) and private brands such as Paras and Gopaljee

(0.15-0.2 MLPD each). Amul and NDDB's non-compete agreement

has prevented the former from launching its liquid milk in the Delhi

market till 2003.With the non-compete agreement having run out,

Amul launched its fresh milk in Delhi in two variants — full cream and

toned — priced at par with that of Mother Dairy. Amul, to its delight,

has seen the demand for its milk going up by leaps and bounds in the

city and is now planning to enter into alliances with dairies located

around Delhi such as Indian Potash and Modern Dairy to cater to the

demand.

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HOUSEHOLD CONSUMERS

Analysis of five different parameters which effect buying decision

of consumer:

Price Taste Quality Ease of availability

Promotion0

5

10

15

20

25Most Important parameter

RDFL

Non-RDFL

No.

of h

ouse

hold

cons

umer

s

Graph showing Most Important parameter which effects buying

decision of Household Consumers.

Findings:

The graph shows that the most important parameter which effects the

buying decision of household consumers is quality. All of the RDFL

consumers ranked quality as a most important parameter. 87% of Non-RDFL

consumers ranked quality as a most important parameter that effects their

buying decision, while 6.5% consumers considered taste as most important

parameter. Nearly 6.5 % consumers considered ease of availability as most

important parameter. This shows that for Non-RDFL consumers taste and

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ease of availability are also most important parameter. Hence to attract these

consumers company needs to consider taste and availability factors.

Price Taste Quality Ease of availability

Promotion0

2

4

6

8

10

12

14

Parameter of high importance

RDFLNon-RDFL

No.

of h

ouse

hold

cons

umer

s

Graph showing Parameter of high importance which effects

buying decision of Household Consumers

Findings:

It shows that taste is considered as a parameter of high importance that

effects the buying decision of consumers. Around 62% of RDFL consumers

ranked taste as a parameter of high importance, while nearly 28% ranked ease

of availability as a parameter of high importance. 9% of RDFL consumers

ranked price as a parameter of high importance.

40% of the consumers surveyed who do not use RDFL milk considered

taste as a parameter of high importance. They may find taste of RDFL milk

inappropriate. 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.

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Like taste, 40% of the consumers surveyed who do not use RDFL milk

considered availability as a parameter of high importance. Either they were

getting the milk they were consuming on their doorsteps or it was available

near to their house.

Price Taste Quality Ease of availability

Promotion0

2

4

6

8

10

12Parameter of moderate importance

RDFLNon-RDFL

No.

of h

ouse

hold

cons

umer

s

Graph showing Parameter of moderate importance which effects

buying decision of Household Consumers

Findings:

52% of RDFL consumers considered ease of availability as a

parameter of moderate importance that plays a role in effecting their buying

decision, while nearly 28% of RDFL consumers ranked taste as a parameter

of moderate importance. Nearly 19% of RDFL consumers also considered

price as a parameter of moderate importance.

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In case of Non-RDFL consumers 46% of them considered ease of

availability as a parameter of moderate importance, while equal number of

them considered price as a parameter of moderate importance. This shows

that price should be competitive to attract consumers.

Price Taste Quality Ease of availability

Promotion0

2

4

6

8

10

12Parameter of least importance

RDFLNon-RDFL

No.

of h

ouse

hold

cons

umer

s

Graph showing Parameter of least importance which effects

buying decision of Household Consumers

Findings:

Majority of consumers either RDFL or Non-RDFL considered

promotion as a parameter of least importance out of the five parameters.

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But it does not mean that there should be no promotion of the product.

Until and unless people are not aware of the product, they would not buy it.

33% of RDFL consumers also considered price as a parameter of least

importance, while nearly 27% of Non-RDFL consumers considered price as a

parameter of least importance.

22%

36%

42%

Have ever tried RDFL's MilkStill consuming Tried but discontinued Never tried

Around 42% of the household consumers have never tried RDFL milk.

So this group can be target for action. Nearly 36% of consumers have tried

but discontinued RDFL milk.

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Customer loyalty with present

brand33%

Availability issues27%

Not aware33%

Others7%

Reasons for not trying RDFL

Pie-chart showing Reasons for not trying RDFL milk by Household consumers.

Findings:

The chart shows that major reason for not trying RDFL milk is lack of

awareness. This shows that there is need of good promotion so that people

got aware of RDFL milk. Customer loyalty with present brand is also a major

reason for not trying RDFL milk. Another major reason for not trying RDFL

milk was its non-availability.

Analysis: Reasons for Discontinuation

The following Pie chart shows the major reasons for discontinuation of

RDFL milk by a sample of household consumers.

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Taste13%

Quality33%

Availability53%

Reasons for Discontinuation

Pie-chart showing Reasons for Discontinuation of RDFL milk.

Findings:

The major reason for discontinuation of RDFL milk was availability.

Majority of household consumers discontinued RDFL milk due to its non-

availability followed by quality problems and taste. Price was not considered

as a reason for discontinuation.

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Never38%

<2 times/month19%

2 times/month24%

3-4 times/month19%

How often experienced Bad/ Spoiled milk?

Pie-chart showing Frequency of experiencing Bad/Spoiled milk.

Findings:

The graph shows that every fifth RDFL consumer had experienced

bad/spoiled milk 3-4 times in a month, while 24% RDFL consumers had

experienced spoiled milk 2 times in a month. This shows early spoilage was a

major problem in RDFL milk. This is an area of concern for quality control.

Correlation between Family Size and Consumption:

When number of family members and average daily consumption were

correlated then a Correlation coefficient of +0.5273 was found which shows

that there is moderate positive correlation (0.5-0.75) between the two. When

family size increases, the consumption of milk will increase moderately.

Correlation between Monthly Household Income and

Consumption of Full Cream Milk:

The correlation between monthly household income and consumption

of full cream milk was found +0.017, which shows that consumption of full

cream milk is very less effected with increase in monthly household income.

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RETAILERS

56%

22%

22%

Problems regarding distributionLate and Irregular supply

Unclean crates

No Compensation/ Replacement on return of spoiled milk/ leakaged pouches

Pie-chart showing Problems faced by retailers regarding distribution.

Findings:

Majority of retailers have complained that the milk supply was late and

irregular. The distributor’s supply was late which have negative effect on

milk sale of retailers. This problem was frequent as reported by retailers. 22%

retailers reported that the crates containing milk pouches crates containing

milk pouches were unclean, while 22% retailers reported that distributor had

not provided any compensation and replacement on return of spoiled milk or

leakaged pouches.

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29%

21%

50%

Means of PromotionSmall Banner Wall Painting Not Applicable

Pie-chart showing Means of promotion.

Findings:

Only 50% retailers reported that promotional activities were there.

29% of retailers reported that they had been given small banners for

promotion of RDFL milk, while 21% reported that wall painting was means

of promotion.

50% retailers reported that there was no means of promotionexcept

word of mouth. These retailers have demanded small banners for promotion

but were not provided.

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25%

75%

Quality of RDFL milk according to retailerGood Average

Pie-chart showing Retailer’s response to quality of RDFL milk.

Findings:

On asking about quality of RDFL milk, 75% of retailers reported it as

average, while only 25% retailers reported it as of good quality.

13%

88%

Promotional activityEffective Not Effective

Doughnut chart showing Effectiveness of promotional activities according to retailers.

Findings:

Only 12% of retailers reported that promotional activities were

effective, while majority of retailers said that promotional activities were not

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effective. Lack of promotion of the product gives rise to lack of awareness

among consumers.

Correlation between Promotion and Sales of RDFL milk:

When promotional activities and sales of RDFL milk were correlated,

the correlation coefficient was found +0.672, which shows that there is

moderate positive correlation between promotion and sales.

38%

4%

58%

Packaging according to retailersGood Bad Average

Pie-chart showing Retailer’s opinion regarding Packaging of milk pouches.

Findings:

It shows that packaging of milk was not good. Retailers were not

satisfied with packaging of milk pouches as 58% rated it as average while 4%

rated it bad. This was mainly due to less durability of pouches as leakage was

major problem.

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4%

58%

38%

Last month SalesSatisfactory Average Unsatisfactory

Pie-chart showing Satisfaction level of retailers about last month sales before sales closing.

3%

77%

10%10%

Reason(s) of sales being not satisfactoryCompetition from local dairyies Competition from other brands Lack of PromotionTaste not liked by customers

Pie-chart showing Reason(s) for sales being not satisfactory.

Findings:

The chart shows that the major reason for sales being not satisfactory

was competition from other brands. The reason may be that the consumers

were not satisfied with the quality of RDFL milk. 10% of retailers considered

lack of promotion as a reason behind low sales. This shows that there is lack

of awareness of the product among consumers. Nearly 10% of retailers

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reported that taste of RDFL milk was not liked by consumers and was a

reason for low sales.

42%

21%

21%

17%

Pouch Leakage[Packets leaked(%)/week]

0% leaked Upto 2% leaked 3-5% leaked >5% leaked

Pie-chart showing Percentage of milk pouches leaked per week.

Findings:

Leakage in milk pouches was a major problem for retailers. 59% of

retailers have faced the problem of leakage. 17% of retailers reported that

they got more than 5% of the pouches leaked in a week, while 21% of

retailers got 3-5% of the pouches leaked in a week. Nearly 21% of retailers

got upto 2% pouches leaked per week.

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4%

50%

46%

Customer's response to RDFL MilkLiked Mixed Not Liked

Pie-chart showing Customer’s response to RDFL’s Milk according to retailers.

Findings:

Majority of retailers reported that there was not good response from

customers to RDFL milk. 46% of retailers reported that RDFL milk was not

liked by customers, while 50% of retailers reported that there was mixed

response from customers. Only 4% of retailers reported that customers like

RDFL milk.

This shows that the customers either may not be satisfied with the

quality of RDFL milk or they find its taste inappropriate.

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Analysis of sales closing reasons:

Low Quality compared to other brands

Taste & odour not liked

Milk not last to expiry & spoilage

Issues related to Distributor

Replacement policy regarding spoiled milk & leakaged pouches

Promotion

0 1 2 3 4 5 6 7

Reasons of low sale according to retailers

Series1

Graph showing Sales closing reasons.

Findings:

Nearly 41% of retailers considered issues related to distributor were

the main reason behind closing of sales. These issues include late supply,

irregular supply, distributor’s shifting to other brand, supply less compared to

demanded etc. 58% of retailers reported that quality of RDFL milk was low

as compared to other brands.

On asking about reasons of sales closing, nearly 29% of retailers

reported that taste and odour was not appropriate according to customers.

Nearly 17% of retailers considered lack of promotion as a reason

behind sales closing, while equal number of retailers reported that

replacement policy regarding spoiled milk and leaked pouches was a major

reason behind sales closing. They reported that there was no replacement or

compensation for leaked and spoiled milk pouches and it was resulting in loss

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of their margins. Spoilage and milk not lasting to expiry was also considered

as a reason behind sales closing by 12% of retailers.

Recommendations &

Suggestions

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Consumers:

As consumers were not satisfied with quality and taste of RDFL milk,

hence the company needs to consider about this. The quality of milk should

be consistently maintained.

Company should try to conduct camps and awareness programmes in

these areas to overcome this thinking of people.

As availability and awareness issues are major reasons for not trying

RDFL milk, the distributional channel need to be strengthened and there is

need of good promotion of the product. Until and unless people are not aware

of product they would not go for it. The promotion in dairy sector does not

need to be in regular manner but there is need of different approach here.

Before startup in a new area there should be good promotion through

banners, pamphlets etc. Once people came to know about the product, then

promotion is very less needed.

The consumers were frequently facing problem of early spoilage,

hence company should ensure that consumers get fresh milk. It may be due to

increase in temperature during transportation. The vehicles should be

properly insulated.

Retailers:

In case of old retailers, the major problem to them was leakage in milk

pouches and frequent spoilage. The leakage problem was not found in case of

new retailers, hence this issue is eliminated but still there are issues which

need to be eliminated.

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As many retailers complained that they were not provided banners for

promotion, so banners of small size should be provided as they create

awareness about brand and its product.

Retailers were satisfied with profit margins in majority of cases.

Schemes can be launched on basis of differential sales by retailers. When

retailer sells a fixed amount of milk then extra profit margin can be given to

them which motivate them to sell more milk.

Distributor:

Company needs to take attention in this section as distributors have

hold over market and they are deciding factors in path of product’s success or

failure.

Firstly distributor should supply the product to retailers on time and

should be regular in his work.

Distributor should take care of product while handling which prevent

damage of packages of milk as leakage was a major problem found in area of

one distributor out of three.

Other suggestions:

The company should increase its product range in terms of variety as

competitors are having different kind of products like curd, butter milk, lassi,

butter, flavored milk etc. which gives extra edge in market.

To raise the consumer awareness regarding Adulteration of milk,

RDFL can open its testing facilities. RDFL can work on "mobile labs" that

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can test milk in the residential colonies. This will create a commitment to

provide the consumers with the purest milk.

BIBLIOGRAPHY

Books supporting

Kotler Philip; Keller Kevin Lane; Koshy Abraham;

JhaMithileshwar,Marketing Management, Pearson, 13th Edition,New

Delhi

Viswanathan P.K., Business Statistics: An Applied Orientation,

Pearson, 1st edition

Kothari, C. R., Research Methodology, New Age International Publication,

2nd edition.

The Economic Times, 8th Feb 2010

India Retail Biz, November 16th, 2009

Indian Dairy Man, October, 2008

Web-Access

www.indiadairy.com

www.ril.com

www.nddb.o

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Annexure-I

Questionnaire for Household Consumers

1. Which type of milk you prefer?(a) Pouch milk (b) Loose milk

2. Which Brand of pouch milk you use mostly? (a) Reliance : (d) Paras : (b) Mother Dairy : (e) Vita : (c) Amul : (f) Others :

3. Which variant you buy?

(a) Full cream milk (b) Toned milk (c) Double toned milk

4. How will you rank the following attributes in packed milk?

(a) Taste (b) Quality (c) Attractive packaging

(d) Easy availability (e) Price

5. What purpose you buy pouch milk?

(a) Tea (b) Drinking (c) Curd (d) Other

6. How do you come to know about the product?

(a) Advertisement (b) Word of mouth (c) Promotion/POP

(d) Other source

7. Have you tried Reliance Dairy Milk?

(a) Yes (b) No

8. If No, Would you like to try it?

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(a) Yes (b) No

9. Would you like to change current brand?

(a) Yes (b) No

10. If yes what attribute you expect from Reliance milk?

……………………………………………………………………………………

11. If not why?………………………………………………

12. Any Suggestion for improvement.

…………………………………………………………………………………………………………………………………………………………………

13. Personal Information :

(a) Name :

(b) Age :

(c) Gender (M/F):

(d) Location :

(e) Phone :

Annexure-II

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Questionnaire for Retailers

Market Survey Report

Trainee name: Date:

Area: brand

Distributor name:

s. no Retailers Name: Address: Contact no.: Reliance Amul M.D Paras G.J Others Remarks

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

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