Summer Internship Project Report A study on Distribution Channel Analysis and retailers perception of Reliance Dairy Foods Ltd.

Submitted by: MuditChandra(2012MB76)

Under the Guidance Of Prof. Peeush Ranjan Agrawal, Mr. Manu Sajnani, Mr. Yogesh Saini

School of Management Studies Motilal Nehru National Institute of Technology Allahabad July, 2013
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DECLARATION
I the undersigned solemnly declare that the report of the project work entitled A study on: Distribution Channel Analysis and Retailers perception of Reliance Dairy Foods India Ltd. products is based on my own work carried out during the course of my study under the supervision of Prof. Peeush Ranjan Agrawal, Mr. Manu Sajnani, Mr. Yogesh Saini, I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this institution or any other University.

Date:

Name of Student Mudit Chandra SMS, MNNIT

CERTIFICATE

This is to certify that Mr. Mudit Chandra (2012-14 Batch) a student of School of Management Studies ,MNNIT Allahabad has undertaken the project on A study on: Distribution Channel Analysis of Reliance Dairy Foods India Ltd.. The survey, data collection, & analysis work for preparing the project has been carried out by the student in partial fulfillment of the requirements for the award of MBA, under my guidance and supervision.

I am satisfied with the work of Mr. Mudit Chandra

Date:

Faculty Mentors Name: Prof. Peeush Ranjan Agrawal, School of Management Studies, MNNIT Allahabad.

(Signature)

ACKNOWLEDGEMENT
At the very outset, I would like to express my heartfelt gratitude to Reliance Dairy Foods Ltd for allowing me to do a project on Distribution Channel. And I felt this projectbto be an interesting and challenging one. Our thanks are due to Mr. Manu Sajnani who was very kind in explaining how to use the challenges that lay ahead us. I feel indebted to Mr. Yogesh Saini for explaining to us the intricacies and peculiarities of milk business which came handy on various occasions and allowed us to retain our focus and finish our research with the satisfaction of a job well done. I would also like to commit our hearty thanks to Mr. Abhishek for their help and valuable support throughout the project term. it was a great learning experience to work under their guidelines. I are extremely thankful to my faculty guide Prof. Peeush Ranjan Agrawal at School of Management Studies, MNNIT Allahabad for his invaluable guidance and suggestion. In the end I would like to say that it was a great experience working on this project.

EXECUTIVE SUMMERY
All big name of India like Mother dairy, AMUL, SUDHA, PARAG, PARAS are already in the business to explore their opportunity in the dairy sector. With emergence of a player like Reliance dairy life has bring aspect in this field. This study is conducted to Understand Distribution Channel of pouch milk and other products of Reliance Dairy. This study is conducted with a view to understand the public perception, the market dynamics that is prevailing the dairy sector and the potential of pouched milk in this sector. This research design is exploratory in nature. The basic objective of study is to understand the Distribution Channel and its effectiveness at one hand and how it can be improved at second. The research methodology was developed and following the same research was extended to in-depth interview with the Retailers buying parameters. The research comprises the focus group interview of Retailers who or the potential and previous Retailers of the pouched milk of Reliance Dairy. A structured questionnaire was used to conduct descriptive research. First a pre test is carried out with the questionnaires. A full scale descriptive research is conducted in North DELHI with a sample of 100 respondents from various locations which are Rohini Sector 1, 2, 3,4, 5, 7, 8, 9, 15, 16, 17, Ritala Gaon, Vijay Vihar Phase I and II, Ranibagh.

Table of Contents
Chapters Chapter- 1 1.1 1.2 1.3 1.4 Topics Introduction Introduction to Indian Dairy Industry Key Statistics regarding dairy industry Milk Processing Industry New Challenges of Globalization and Trade Liberalization - Perspective 2010 Introduction to Reliance Group Retailing The growth drivers Need of The Study Literature Review Organizational Background Dairy Business- Overview What is milk- Composition? WHOLESOME FOOD FOR ALL Organization Chart Definitions and Quality standards of milk 2.7 2.8 Supply Chain Management Major competitors analysis 33 35
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Page no.

12 13 15 16

1.5 1.6 1.7 1.8 Chapter-2 2.1 2.2 2.3 2.4 2.5 2.6

17 20 23 24

26 28 29 29 30 31

Chapter-3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Chapter -4 (List of Figures) 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12

Research Methodology Objective of the study Research Approach Purpose Research Problem Determining sample design Questionnaire design Data collection Data Analysis And Its interpretation Reliance dairy retailers Cross Tab of Sellers and margin Cross Tab of Sellers and Promotional schemes Cross Tab of Sellers and demand Cross Tab of Sellers and dealer relationship Cross Tab of Sellers and credit policy Cross Tab of Sellers and milk Cross Tab of Sellers and butter milk Cross Tab of Sellers and curd Cross Tab of Sellers and ghee Cross Tab of Sellers and lassi Other brand milk demand of retailers 45 46 46 46 47 47 48 48 48 49 49 50 41 41 42 42 42 43 43

4.13 4.14 4.15 4.16 4.17

Pie chart of reliance milk demand Cross Tab of Quantity Demand of Reliance Dairy and Other Brands Cross Tab of Reliance retailers and Mother dairy stock by them Cross Tab of Reliance retailers and Amul stock by them Cross Tab of Reliance retailers and Parag stock by them

50 51 51 52 52

4.18

Cross Tab of Reliance retailers and Paras stock by them

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4.19

Cross Tab of Reliance retailers and other brands stock by them

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4.20

Pie Chart of Type of milk sell most

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4.21

Pie Chart of timely delivery of milk

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4.22

Pie Chart of timely delivery of dahi

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4.23

Pie Chart of timely delivery of Masala Chaach

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4.24

Pie Chart of timely delivery of Buttermilk

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4.25

Cross Tab of Reliance retailers and storage equipment provided by mother dairy

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4.26

Cross Tab of Reliance retailers and storage equipment provided by Amul

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4.27

Cross Tab of Reliance retailers and storage equipment provided by Paras Cross Tab of Reliance retailers and storage equipment provided by Reliance Cross Tab of Reliance retailers and storage equipment provided by Other companies Pie Chart of mother dairy providing storage equipment Pie Chart of Paras providing storage equipment

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4.28

58

4.29

58

4.30 4.31

59 60

4.32 4.33 4.34 4.35 4.36 4.37 Chapter -5

Pie Chart of rating of reliance damage policy Pie Chart of rating of reliance employee behavior Pie Chart of rating of reliance milk products quality Pie Chart of rating of reliance margin Pie Chart of rating of reliance dairy schemes Pie Chart of rating of reliance timely information Recommendation And Suggestions Conclusion References Questionnaire

61 62 63 64 65 65 67 69 70 71

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Chapter 1

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1.1

Introduction to Indian Dairy Industry

During the last three decades, our nations milk producers have transformed Indian dairying from stagnation to world leadership. During this period and before, science and technology(S&T) have played a critical role in supporting our farmers efforts. During the next decade, that role will be further enhanced as we face a number of new challenges. The dairy cooperative movement has been central to the development of dairying in India. The inspiration for this movement was the success of the Khaira District Cooperative Milk Producers Union better known as Amul. Founded in 1946 in response to the exploitation of districts dairy farmers, In the year 2006-07the total milk production in the country was over 94.6 million tonnes with a per capita availability of 229 gms per day. The industry had been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. Milk processing in India is around 35%, of which the organized dairy industry account for 13% of the milk produced, while the rest of the milk is either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized channels. Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously high in these milk surplus States. Exports of dairy products have been growing at the rate of 25% per annum in the terms of quantity terms and 28% in terms of value since 2001. Significant investment opportunities exist for the manufacturing of value-added milk products like milk powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products. India has emerged as the largest milk producing country in the world with present level of annual milk production estimated as 94.5 million tonnes. We expect a production level of 135 million tonnes by the year 2015. India has a large livestock population base constituting 278 million livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million goats. The livestock population is projected to increase to 322 million by the year 2015.

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1.2

Key statistics regarding Indian dairy Industry 108.5 Million Tonnes 70,790 Tonnes 15%

Annual Milk Production (20089) Annual Export Volume (20089) Share of world dairy production (2010)

Share of world trade in dairy products (2003) Milking herd size Number of milk producers cooperative unions Number of local dairy cooperatives

0.3% 115.5 million 170

96,000

Number of state cooperatives

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Per capita consumption (Drinking milk) Estimated percentage of dairy farmers in organised sector % of dairy produce unorganised sector Dairy industry workforce consumed by

250g/day 4050%

65%

75 million women/ 15 million men

(Source: http://cms.iuf.org/sites/cms.iuf.org/files/Indian% 20Dairy%20Industry.pdf)

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1.3- Milk Processing Industry

The milk processing industry is small compared to the huge amount of milk produced every year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers and sell the milk in both, urban and non-urban areas, which handles around 65-70% of the national milk production. In the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on valueadded products.

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1.4 New Challenges of Globalization and Trade Liberalization - Perspective 2010

The NDDB has recently put in place .Perspective 2010.to enable the cooperatives to meet the new challenges of globalization and trade liberalization. Like other major dairying countries of the world, the Indian cooperatives are expected to play a predominant role in the dairy industry in future as well. However, India is in the mean time, attaining its past glory and is once again becoming .DOODH KA SAGAR.. But, what percentage of this SAGAR is handled by the cooperatives just a little over 7%. Since liberalization of the dairy sector in 1991, a very large number of private sector companies / firms have, despite MMPO, established dairy factories in the country. The share of the total milk processing capacity by private sector is 44% of total installed capacity of 73 MLPD (Million Litres Per Day) in the country. Therefore, the total share of the organized sector, both cooperatives as well as the private sector is barely 12%. What is, therefore, disquieting is that as much as 88% share of the total milk production is commanded by the unorganized sector - who specializes in selling sub-standard, unpasteurized milk more often than not adulterated with harmful chemicals.

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1.5 Introduction to Reliance Group

Late Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The US$ 20 billion Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

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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."

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002

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Board of Directors of Reliance Industries Limited

Mukesh D. Ambani Chairman & Managing Director Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of Bombay and pursued MBA from Stanford University, USA. He is the son of Mr. Dhirubhai H. Ambani, Founder Chairman of the Company. Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibers and further into petrochemicals. In this process, he directed the creation of several new and large world-class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tones to over thirteen million tonnes per year. He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India, with a present capacity of 660,000 barrels per day (33 million tonnes per year) integrated with petrochemicals, power generation and port and related infrastructure. He had set up
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the Reliance's communications technology initiative which is the largest and most complex information and communications technology initiative in the world. Mr. Ambani is steering Reliance's initiatives in a world scale, offshore and onshore oil and gas exploration and production program, creation of a pan-India petroleum retail network and setting up of a new export oriented refinery through RIL's subsidiary Reliance Petroleum Limited (RPL) with a capacity of approximately 580,000 barrels per stream day integrated with a 0.9 MMTPA polypropylene plant.

1.6 RETAILING Reliance Industries Ltd will make an equity investment of up to Rs 10,000 crore, "over time," in a new company, Reliance Retail Ltd that will manage the group's new retail initiative. The size of the equity investment is in view of "the overarching nature of this initiative," said Mr. Mukesh Ambani, Chairman, RIL, at the company's AGM here on Tuesday. The new company will spend more than Rs 25,000 crore in the years to come, he said, outlining Reliance's giant ambitions in organized retailing. Reliance Retail Ltd (RRL) will be a wholly owned subsidiary of Reliance Industries, except for a holding in it through employee stock options. Its retail outlets will sell food, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods and farm implements and inputs. They will also offer products and services in energy, travel, health and entertainment. In addition to this, partnerships would be developed to bring the best of global luxury brands to India as well.

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RRL's footprint will cover 1,500 Indian cities and towns and its outlets will be of a varied format, a mix of neighborhood convenience stores, supermarkets, specialty stores and hypermarkets. "Conceptually, Reliance is creating a virtuous circle of prosperity by bringing farmers, small shopkeepers and consumers in a win-win partnership," said MrAmbani, who called this new business of Reliance's a "defining point in its history." The retail business would partner with farmers, logistics operators, small shopkeepers and traders and enhance their purchasing power, he said. A supply chain, logistics and information technology infrastructure would string the whole plan together. RRL will also develop linkages and opportunities in agriculture and food processing that would support the organized retailing business. The new business would generate one million new jobs, said Mr. Ambani. Already the initiative has 2,000 professionals on the job, their numbers would swell to 10,000 as it progresses. Over the next few years they will be joined by another five lakh, he added. Organized retailing, along with the next generation distribution system, is at the core of the transformational initiative at Reliance, he said. Noting that several sectors are on the threshold of expansive growth, Mr. Ambani said Reliance would open up three broad fronts for itself: urban infrastructure and Special Economic Zones, and life science and healthcare. Reliance is also developing options for cross border acquisitions in existing and new businesses, he said.

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The mega investment plan announced by RIL comes at a time when global retail majors are waiting in the wings to gain an Indian entry. It would also bring a new level of competition to the existing players who do not have the financial strength of Reliance. India is witnessing an unprecedented consumption boom. The economy is growing at a higher phase and the resulting improvements in income dynamics along with factors like favorable demographics and spending patterns are driving the consumption demand. 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 have transformed the face of Retailing in India. The Indian retail industry is currently estimated to be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized retailing is projected to reach US$ 23 Billion by 2010. 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
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retailing. Wal-Mart had said that India was high on its priority and that it was closely monitoring the Government's policy on FDI in the retail sector.

1.7 The Growth Drivers The Indian Retail growth can be attributed to the several factors including Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age. Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. Plastic Revolution: Increasing use of credit cards for categories relating to Apparel, Consumer Durable Goods, Food and Grocery etc. Urbanization: increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. Covering distances has become easier: with increased automobile penetration and an overall improvement in the transportation infrastructure, covering distances has become easier than before. Now a customer can travel miles to reach a particular shop, if he or she sees value in shopping from a particular location.

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INTRODUCTION ON THE BASIS OF PROJECT

1.8 Need of the study : The project was an attempt to know the reasons behind poor sale of milk of Reliance dairy in Delhi. Despite of being the first in the industry and having the first mover advantage and the brand name, the sale has fallen down incredibly due to competitors like Amul, Mother dairy , Paras and others. There is a need to revamp the companys image and reposition it all over again in the mind of the consumers. In doing so firstly the grievances of the distributors and the retailers was required to be solved in order to encourage them for push sales. Secondly a study of consumers decision making factors was required in order to understand their priorities which can be worked upon. For this purpose a research is conducted to find out the current market scenario. With the help of the responses given by the distributors and data analysis, the company will be able to understand its strengths, weakness, opportunities and threats. The findings of the research will assist the company to take right decisions to increase the turnover and market share.

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Chapter-2

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2.1 ORGANISATIONAL BACKGROUND

Reliance Dairy Foods Ltd. was setup in the year 2007 with the vision of becoming a market leader in the dairy industry. Reliance dairy is the subsidiary and part of Reliance Retail business of Reliance group. The Reliance Dairy Foods Limited (RDFL) business was initially launched to ensure regular supply of superior quality milk & milk products to its consumers through its retail outlets by establishing direct link with the milk producers in the villages. But now company is fully launching and selling its products in the market like amul and mother dairy. The Company presently operates in Andhra Pradesh, Haryana, Tamil Nadu, Maharashtra, Delhi, Punjab, and Rajasthan The range of products in the RDFL portfolio include Dairy Life Milk, Dairy Life Paneer (cottage cheese), Dairy Life Dahi(yogurt), Ghee (clarified butter) - Dairy Life Ghee( premium Buffalo Ghee) , Dairy Pure Ghee (Buffalo Ghee) , Dairy Pure Cow Ghee and Chaach (Butter Milk). Key points covered under the working of Reliance dairy would include: Milk Procurement o Remunerative prices to farmers. o Latest technology at village level for transparency in testing and weighing. o Sure and secured timely milk payments. o Assured lifting & direct buying of milk from the farmers throughout the year. o Employment opportunity for rural youths. o Providing technical inputs at most competitive prices e.g. cattle feed, productivity enhancement feed supplements, cattle insurance, cattle loans etc. o Sale of other milk products through VSPs to supplement farmers income.

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Milk Marketing o Quality aspect of milk reaching the consumers - procured directly from local farmers, processed under hygienic conditions and undergone strict quality assurance checks. . o Milk made available to consumers by quick chilling in shortest possible time after milking. o Assured Safe milk for children and entire family. o Available in all variants and packaging sizes. o Easily available at nearest Reliance Store as well as with the nearest milk dealer o Timely supplies of stocks in trade. o Good range of Products such as Dahi, Chhach, Lassi, Paneer and Ghee in addition to liquid milk.

Reliance Dairy Foods Limited Mission Statement

"Bring prosperity to millions of Indian producers, especially our farmers, by providing the most attractive returns for their effort".

Vision
Become Number One Dairy Brand in the Country by year 2011. Ensure cost & quality competitiveness through adoption of best technology & business practices

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Maximizing returns to stake holders, farmers and value for money to the consumer. 2.2 Dairy Business- Overview

For marketing of surplus milk & milk products. The Dairy Business Chain is being set up to provide back-end support to the Reliance Retail Business & also to establish appropriate network

The Objectives of the Dairy Business are as follow Sourcing of milk directly from the Farmers Establishing necessary sourcing infrastructure by adopting modern technology with focus on quality through integration with Agri-Business and also otherwise where integration is not feasible Arranging necessary Input Services to the Milk Producers with the support of the Agri-Business Developing a value chain from milk sourcing to retail market to meet the customer's needs of milk & milk products, involving establishing stateof-the-art processing / production infrastructure and supply chain Business focus on high margin Liquid Milk and Fresh Products, with thrust on sale of other Milk Products in consumer packs Trading of surplus commodities in the local market and also tap in to export market Build Reliance as a National & International Brand in Dairy

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2.3 What is milk- Composition? Fat -True fat, Vitamins, Carotene, Cholesterol and Lecithin. Solids Not Fat (SNF) - Lactose - Proteins and Nitrogenous substances. - Minerals - Minor constituents Pigments, Vitamins, Enzymes, Dissolved Gases Water 2.4 WHOLESOME FOOD FOR ALL Product Mix Liquid Milk Toned Milk Std Milk Full Cream Milk Double Toned Milk Skim Milk Fresh Milk Products Dahi / Curd Butter Milk Lassi Fat 3.0%, SNF 8.5% Fat 4.5%, SNF 8.5% Fat 6.0%, SNF 9.0% Fat 1.5%, SNF 9.0% Fat 0.05%, SNF 8.5%

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2.5 Organization Chart

Chief Executive - Dairy Business

State Head - Dairy Business

Head Procurement

Head Milk Marketing

Head Plant/ Processing

Zonal Mangers

City Heads

Processing

District Mangers

Pilot Salesmen

Quality

Area Mangers MCC Incharges

Facilitators

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2.6 DEFINITIONS AND QUALITY STANDARDS OF MILK A .Milk Milk is the normal mammary secretions derived from complete milking of healthy milk animal. It should be free from colostrum. B. Pasteurized milk Milk or a milk product which is heated to at least 63 for 30 minutes, or to at least 71.5 c, not less than 15 Seconds, or to an approved temperature time combination that will serve to give a negative phosphates test Immediately a after processing. All pasteurized milk to a temperature of 10 c, or less, and it should be maintained until delivery. Milk products means standardized milk, recombined milk, toned milk, double toned milk, skimmed milk and flavored milk in this instance. C. Sterilized milk Milk heated to a temperature of 115 c for 15 Minutes, or 145c for 3 Seconds, or equivalent approved temperature time combination, to ensure preservation at room temperature, for a period of not less than 15 days from the date of manufacture. Sterilized milk shall be sold either in sealed container in which the milk was sterilized and in such case the turbidity test shall be negative, or in sterile containers packed under aseptic conditions. D.Flavored milk This may contain nuts, chocolate, coffee, or any other edible flavors, edible food colors, and cane sugar. Flavored milk should be pasteurized, sterilized or boiled.

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E.Standardized milk Standardized milk means cow milk or buffalo milk or goat milk or a combination of any of these milks that has been standardized to a minimum of 4.5% FAT and 8.5% SNF by the abstraction and/or addition of milk fat or by the adjustment of milk solids: standardized milk should be pasteurized and should be show negative phosphates test. F. Toned and double toned milk Toned milk means the products prepared by admixture milk or buffalo milk or both with fresh skimmed milk, or by admixture of cow or buffalo milk or both with non-fat-milk solids or milk powder and water, or by partial abstractions and addition of fat from to milk. It should be pasteurized and should show a negative phosphates test. When fat or dry non-fat-milk solids are used, it should be ensured that the products remains homogeneous and no deposition of solid stakes place on standing. Toned milk shall contain not less than 3% FAT and 8.5% SNF and double toned milk contain not less than 1.5% FAT and 9% SNF. G. Skimmed milk Skimmed milk means the products prepared from milk from which almost all the milk fat has been removed mechanically. It shall have not more than 0.5% FAT and not less than 8.7% solids-not-fat.

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2.7 Supply Chain Management:-

1) Milk Procurement: - Reliance Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated tankers at 2C temperature in order to retain its freshness.

2) Milk distribution: -Tankers in the morning and in the evening bring in milk from the regional collection centers. After collection the same tankers are utilized for the delivery of the processed milk to the distributors. Reliance Dairy has about 51 Distributors in the New Delhi. Each of these LADs (Local area distributor) places their demand by raising an invoice one day in advance. The demand is also calculated using the Calendar Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres
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each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios.

3) Processing:At reliance dairy, the processing of milk is done by process automation whereby state of the art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/reliability and safety. There are four ways of milk processing Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles that are invisible to the naked eye. Secondly, Standardization which help to maintain uniformity by raising or

lowering its fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per prescribed PFA norms. Thirdly, it is Homogenization which improves palatability of milk and Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus making it safe for consumption.

4) Quality Control:Stringent quality control methodologies are employed in Reliance Dairy. a) The milk is tested for adulterations and quality at the time of collection from the farmers. b) The Milk that comes from the collection points to the Reliance Dairy plant is ensured to have a temperature of not more than 4C and is subjected to 15 product and quality checks.

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c) The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 4C always. d) Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again. e) The temperature of milk in the delivery trucks is always maintained less than 4C. f) All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution. g) Since all the employed processing procedures are automated, no contamination by human hands takes place. h) To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.

2.8 MAJORCOMPETITOR ANALYSIS

Amul is the acronym for Anand Milk Union Limited, a dairy cooperative company in Gujarat, India that markets a wide range of products including milk powders, milk, butter, ghee, cheese, chocolate, Shrikhand, Gulab Jamun, ice cream, cream, and others making it the largest food brand in India. Amul has spurred the White
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Revolution of India, which has made India the largest producer of milk and milk products in the world. It is one of the best examples of co-operative achievement in the developing economy. Presently Amul has a 40 % market share in the branded milk segment. Product:The varieties of Amul milk are : Amul Toned Milk 3% fat Amul Full Cream Milk 6% fat Amul Double Toned Milk 1.5% fat At Amul skim milk powder is procured from the cooperatives of Gujarat which is much superior in quality when compared to the cooperatives of Delhi leading to better quality of products Price When compared to Mother dairy, the distributors margin of Amul is .50p/ltr whereas reliance gives .60Rs/ltr .In case of retailers Mother dairy has fixed margin of 0.80 paise/lt in every part of Delhi whereas Reliance gives its Retailers a margin of 1.20 Rs/lt. However Amul gives different margins depending upon the location and sale of the retailer which becomes a great incentive to sale. The price of the milk to the end consumer is however similar to reliance Dairy. Place The availability of milk is a major concern among the consumers. Amul with its vast distribution network has enhanced growth. Amul has made pouched milk the market and is responsible for its available in almost all suburbs of

Delhi where we cannot find Reliance dairy even today. Reliance dairy is not
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able to cater to those markets because their size is comparatively small and with the current retailers and distributors margin there is hardly any profit left to them because the expenditure is much more. Promotion Amul has a great brand image in the mind of the customer .Their expert marketing and advertising strategies add all the more to the sales.

Mother Dairy was set up in 1974 under the Operation Flood Program me. A wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy manufactures, markets & sells milk and milk products under the Mother Dairy brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit & Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit juices at a national level through its sales and distribution networks for marketing food items. Product:The varieties of Mother milk available in Delhi are: Mother Toned Milk Mother Full Cream Milk Mother Double Toned Milk
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 Price The distributors margin of Mother is 1Rs/ltr . Mother dairy has fixed margin in every part of Delhi. However Mother gives different margins depending upon the location and sale of the retailer which becomes a great incentive to sale. The price of the milk to the end consumer is however similar to Amul Dairy.

Place The availability of milk is a major concern concern among the consumers. Mother with its vast distribution network has enhanced enhanced the market and is responsible for its growth. Mother has made pouched milk available in almost all suburbs of Delhi. Promotion Mother Dairy has a great brand image in the mind of the customer .Their expert marketing and advertising strategies add all the more to the sales.

PARASs history reflects back to 1960, when the procurement of milk started with 60 Liters of milk. The only fundamental that worked right from day one is the quality, which got reinforced everyday of progress. Ch. Ved Ram, the founder and promoter of the company is one of the connoisseurs in the dairy farm industry. Ved Ram & Sons started as the partnership rship company in April 1986. The first unit was established in 1987 under company's name VRS Foods Limited. Limited
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At the heart of the entire network of Paras are hundreds of Village level collection centers covering 5000 villages across Western U.P., Haryana, Rajasthan, Maharashtra and Gujarat from where the milk is collected every day. The farmers are not only helped in Finance but also in buying cattle, feed, providing veterinary services and other infrastructure supports. The trust of the farmers has grown stronger and so has the network.

Product The varieties of Paras milk available in Delhi.

Full Cream Milk Toned Milk Double Toned Skimmed milk (Nandan) Tea Special Milk Paras Health (Homogenized Standardized Milk)

Place and presence Paras have a great presence in the Delhi and NCR regions and they have created their own Brand Image in the mind of their consumers. They command a set base of consumers demand and they are considered as the trusted name of quality. Promotions Paras have a great way of operating in the market and they have unique promotional measures unlike others. They provide coupons with each crate of milk to distributors of set amount through which they get discount on selling the crates. They are also providing cold storage facility to the retailers and distributors which does not found in reliance dairy. Price: The pricing and margin of Paras products and milk is similar to Amul.
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Chapter-3

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RESEARCH METHODOLOGY

3.1 Objective of the study:The Primary objectives of the study: 1. The main objective of this project is to identify the reasons for decreasing market share of Reliance Dairy and to find out the ways to increase the sales again. 2. To study the distribution channel of Reliance Dairy 3. To identify the issues related to Reliance Dairy retailers and distributors 4. To get the retailers feedback from specific regions for poor sale 5. To add up new retailers in the area.

Secondary Objective of the study: 1.To find out the total demand of reliance milk at dairy in particular area 2.To find out the market leader of dairy product in Delhi NCR area 3.To find out the most profitable brand in dairy product 4.To focus the procurement behavior dairy product of brand

3.2 Research Approach: One had to depend mainly on primary data as first had knowledge was required about market position of various brands in the milk and milk products market. So our actual study was conducted in 3 stages: First we discussed with our guiding officers on the various parameters of the project. We also talked informally with some consumers and retailers to have some preliminary idea. Next questionnaire was prepared based on prior discussion.

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Lastly the final questionnaire was prepared with various modification to the previous questionnaire. Various factors were identified to carry out the survey through an analysis. This was further cleared into a list of questions in a questionnaire (refer annexure). Once framed and properly fragmented, these were individually filled for a process of Descriptive Research. A cross-board survey was undertaken involving Retailers of milk in North Delhi. This gave a congregated set of 100 responses which were then segregated and keyed into SPSS. SPSS was extensively used to narrow down the factors into components.

3.3 Purpose The basic purpose of this research is to find out the effectiveness of the distribution channel of reliance milk and find out its level of consumption in the area of the study. Apart from it was also decided to find out the consumption of the other brands milk, so that market share of reliance dairy can be determined and its distribution can be increased. 3.4 Research Problem The major problem that has been faced is the lower availability of the number of dairy shops in the research area assigned to us. In the market area the dairy shops were widely spread and it became a hectic process to cover such long distances to conduct survey. 3.5 Determining sample design As it was the study on the analysis of the distribution channel, primary data i.e. the responses for conducting the research was collected out of various regions in the North Delhi. This data was collected from existing retailers, previous retailers, and the distributors of reliance dairy.

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The approach is to collect maximum responses keeping in mind that the quality and effectiveness of data should be maintained. At the end I was able to collect 100 responses and from various location and base my findings on these responses. 3.6 Questionnaire design: A structured Questionnaire was designed in consultation with the experts of Sales manager of Reliance Dairy in such a manner that it facilitate the respondents to reveal maximum information. 3.7 Data collection: The data collection tool is a well- designed questionnaire. It is designed carefully to collect data and information. In addition to know trends and opinions of the sample of the study, it answers the questions of the study, and achieves the objectives of the study. The primary data was collected by using questionnaire. The questionnaire has 18 Questions regarding companys policies, schemes, products and distribution.

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Chapter-4

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Data Analysis:
Analysis for the project topic is to be conducted with the help of the software SPSS that will bring towards us the insight into various hidden facts that may contribute towards the growth of Organisation. This analysis consists of both qualitative and quantitative methods of research which is to be interpreted with the combination of practical facts that are found during the field work.

Fig. 4.1- Reliance dairy retailers The figure above reveals that the existing retailers of reliance dairy is 67% of the number respondents.

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Reason for Selling Reliance Dairy Products? margin yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 64 31 95 no 3 2 5 Total 67 33 100

Fig. 4.2 Cross Tab of Sellers and margin Above figure reveals that reliance retailers give utmost importance to the margin that is provided to them by company.
Reason for Selling Reliance Dairy Products? promotional scheme yes Are you currently Selling any Reliance dairy products ? previous seller Total 31 84 2 16 33 100 yes 53 no 14 Total 67

Fig. 4.3 Cross Tab of Sellers and Promotional schemes Above figure reveals that reliance retailers give utmost importance to the schemes that are provided to them by company.

Reason for Selling Reliance Dairy Products? demand yes no Total

Are you currently Selling any Reliance dairy products? Total

yes previous seller

21 13 34

46 20 66

67 33 100

Fig. 4.4 Cross Tab of Sellers and demand

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Above tabulation shows that retailers are not keeping the products because of the demand of the products. This is the place where company have to improve its position and work hard to have brand awareness among the customers so that they automatically demand product from retailers.

Reason for Selling Reliance Dairy Products? dealer relationship yes Are you currently Selling any Reliance dairy products? Total yes previous seller 36 6 42 no 31 27 58 Total 67 33 100

Fig. 4.5 Cross Tab of Sellers and dealer relationship Above figure reveals that dealer or distributor relationship also plays a pivotal role for retailers to keep the product.

Reason for Selling Reliance Dairy Products? credit policy no Are you currently Selling any Reliance Dairy products? Total yes previous seller 67 33 100 Total 67 33 100

Fig. 4.6 Cross Tab of Sellers and credit policy Above figure reveals that credit does not have any important impact on the demand of product. This method of extending credit facility to retailers can be noval and have a positive impact over the demand of products.
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What are the varieties of milk products that you store of reliance? milk yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 67 33 100 Total 67 33 100

Fig. 4.7 Cross Tab of Sellers and milk The tabulation above shows that all the retailers are selling milk of reliance dairy.

What are the varieties of milk products that you store of reliance? butter milk yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 39 19 58 no 28 14 42 Total 67 33 100

Fig. 4.8 Cross Tab of Sellers and butter milk The tabulation above shows that above 50% retailers are selling butter milk of reliance this shows the better quality and demand of reliance.

What are the varieties of milk products that you store of reliance? curd yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 22 10 32 no 45 23 68 Total 67 33 100

Fig. 4.9 Cross Tab of Sellers and curd

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The tabulation above shows that above 50% retailers are not selling curd of reliance because they mostly prefer the curd of other major brands like amul and mother dairy.

What are the varieties of milk products that you store of reliance? ghee yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 4 5 9 no 63 28 91 Total 67 33 100

Fig. 4.10 Cross Tab of Sellers and ghee The tabulation above shows out 67 existing retailers only 4 retailers are selling ghee of reliance which figure needs to be improved.

What are the varieties of milk products that you store of reliance? lassi no Are you currently Selling any Reliance dairy yes products ? Total previous seller 67 33 100 Total 67 33 100

Fig. 4.11 Cross Tab of Sellers and lassi The tabulation above shows out 67 existing retailers no retailers are selling lassi of reliance dairy. This can be because they are not informed of the lassi or the product have not penetrated the market yet.

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Fig. 4.12 Other brand milk demand of retailers Other brand milk product have large demand of above 108 ltr out of 100 retailers 54 are selling more than 108 ltr of milk in a day.

Fig. 4.13 Pie chart of reliance milk demand The above Pie chart shows that 42% of retailers sells only 12.5 to 36 ltr of milk of reliance.
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milk you order on an average of other brands? 12.5-36 Ltrs milk you order on an average of Reliance Dairy? 36.5-60 Ltrs More than 108 Ltrs Total 0 0 4 2 0 11 3 0 31 13 3 54 18 3 100 0-12 Ltrs 12.5-36 Ltrs 4 0 36.5-60 Ltrs 3 6 60.5-108 Ltrs 15 13 More than 108 Ltrs 15 23 Total 37 42

Fig. 4.14 Cross Tab of Quantity Demand of Reliance Dairy and Other Brands This Figure is the most impotant of all. This table bring the insight of market share that reliance dairy holds when compared to other brands. Where in case of reliance dairy upto 12 ltrs of milk sold by 37 retailersonly 4 retailers sell the milk of other brands that is upto 12 ltrs. Whereas 54% retailers sell more than 108 Ltr of milk of other brands and only 3% retailers sell milk upto 108 Ltrs. That tois by the distributors of reliance.

other companies milk products do you stock? mother dairy yes Are you currently Selling any Reliance dairy products ? previous seller Total 31 87 2 13 33 100 yes 56 no 11 Total 67

Fig. 4.15 Cross Tab of Reliance retailers and Mother dairy stock by them

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Which other companies milk products do you stock? amul yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 66 33 99 no 1 0 1 Total 67 33 100

Fig. 4.16 Cross Tab of Reliance retailers and Amul stock by them

Which other companies milk products do you stock? parag no Are you currently Selling any Reliance dairy products ? yes previous seller 67 33 100 Total 67 33 100

Total

Fig. 4.17 Cross Tab of Reliance retailers and parag stock by them

Which other companies milk products do you stock? paras yes Are you currently Selling any Reliance dairy products ? previous seller Total 13 49 20 51 33 100 yes 36 no 31 Total 67

Fig. 4.18 Cross Tab of Reliance retailers and Paras stock by them

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Which other companies milk products do you stock? others yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 42 23 65 no 25 10 35 Total 67 33 100

Fig. 4.19 Cross Tab of Reliance retailers and other brands stock by them Above fig. from 4.15 to 4.19 reveals that how many retailers are keeping other brands with reliance dairy milk. Out of 100 retailers previous and existing of reliance 87 were keeping mother dairy, 99 were keeping amul, 47 were keeping paras and 65 were keeping other than amul, mother dairy and paras. This shows that amul is the most favoured brand in Delhi region after that is mother dairy. Both the above three brands i.e. mother dairy, paras, and amul have better brand recognition than reliance dairy products. Since Parag has not entered this market so no retailers have parag with them.

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Fig. 4.20 Pie Chart of Type of milk sell most The above fig. reveals that 66% retailers sell toned milk most and after that Full cream milk is sold most. Double toned milk does not enjoy that much of demand. So the distribution of toned milk should be increased in the region to satisfy large demand of toned milk and with this they can also gain recognition.

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Fig. 4.21 Pie Chart of timely delivery of milk

Fig. 4.22 Pie Chart of timely delivery of dahi

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Fig. 4.23 Pie Chart of timely delivery of Masala Chaach

Fig. 4.24 Pie Chart of timely delivery of Buttermilk

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Above Fig. From 4.20 to 4.23 reveals the on time delivery of different products and if they are not ordering that product then it is labeled as not applicable. Retailers who did had ordered and retailers ordering the product of were getting the timely delivery of products they ordered. No respondent have said that they are not getting timely delivery.

providing storage equipment? mother dairy yes Are you currently Selling any Reliance dairy products ? yes previous seller 3 0 3 no 64 33 97 Total 67 33 100

Total

Fig. 4.25 Cross Tab of Reliance retailers and storage equipment provided by mother dairy

providing storage equipment? amul no Are you currently Selling any Reliance dairy yes products ? Total previous seller 67 33 100 Total 67 33 100

Fig. 4.26 Cross Tab of Reliance retailers and storage equipment provided by Amul

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providing storage equipment? paras yes Are you currently Selling any Reliance dairy products ? Total yes previous seller 12 3 15 no 55 30 85 Total 67 33 100

Fig. 4.27 Cross Tab of Reliance retailers and storage equipment provided by paras

providing storage equipment? reliance no Are you currently Selling any Reliance dairy yes products ? Total previous seller 67 33 100 Total 67 33 100

Fig. 4.28 Cross Tab of Reliance retailers and storage equipment provided by Reliance

providing storage equipment? others no Are you currently Selling any Reliance dairy yes products ? Total previous seller 67 33 100 Total 67 33 100

Fig. 4.29 Cross Tab of Reliance retailers and storage equipment provided by Other companies
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Above analysis of figures of 4.24 to 4.28 reveals that only mother dairy and paras is providing storage equipment to the retailers that are easing up the burden of distribution cost on retailers.

Fig. 4.30 Pie Chart of mother dairy providing storage equipment The above figure reveals that out of 100 retailers surveyed 3 are getting storage equipment by mother dairy. This is one of the promotional measure that can be adopted by reliance to gain retailers confidence.

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Fig. 4.31 Pie Chart of paras providing storage equipment The above pie graph reveals that 15 retailers are getting storage equipment by paras. This is the new strategy followed by Paras to gain heavy market share that it had lost in the last few years. Strategy like this should also be adopted by reliance dairy to gain market share. This strategy comes with a higher cost but it can also give good returns to the company.

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Fig. 4.32 Pie Chart of rating of reliance damage policy Above figure reveals that 45 % of retailers are not satisfied and even dissatisfied with reliance dairy damage policy. But still more than 51% are satisfied which is a sign of relief but company should do something in this area.

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Fig. 4.33 Pie Chart of rating of reliance employee behavior The result of this chart shows that distributors are enjoying good relationship with the employees of reliance dairy. This can also act as a strength for the further expansion of product line of reliance dairy.

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Fig. 4.34 Pie Chart of rating of reliance milk products quality Quality of product is a major pillar on which any dairy company stands. This figure have revealed that 44 % retailers have rated reliance milk quality as good and 50% have rated it as an average quality product.

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Fig. 4.35 Pie Chart of rating of reliance margin 75% retailers have rated the margin as good of reliance dairy.

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Fig. 4.36 Pie Chart of rating of reliance dairy schemes

Fig. 4.37 Pie Chart of rating of reliance timely information

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Chapter 5

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Recommendation During the research I interacted with near about 100 retailers in north Delhi to know and identify the retailer perception that helped me to find out various amazing factor about milk market. On this basis my interaction and research I found out some of the findings. They are as follows 1..The packaging of RELIANCE DAIRY LIFE MILK should be in transparent in nature. The present packing color definitely gives the different look to the product but it doesnt give positive impact in the mind of consumer. The blue, orange, green and yellow packing are more heat absorbing in comparison of semi transparent packaging that can be harmful for the quality of milk. 2..The quality of product should be improved. Smell and taste of milk are the basic parameters to judge the quality of milk. Most of the consumer complains for the smell in milk that can be harmful for the brand image. 3..Now the consumer more aware about the companies in dairy sector. Most of the consumer who is illiterate identifies the brand by it packaging color and logo. If dairy life uses the logo of RELIANCE on its front side of pack that can definitely attract the loyal consumer of its mother company and help to identify the product by the illiterate consumers. 4..The name of the company and product should in local language also. The consumer who are literate but they unable to read English can easily identify the product in their local language. 5.. Employee working in Reliance dairy are found not properly motivated in the market to undertake some new initiative and all the fear of losing demand. Proper motivation among the employee and clear information regarding the product quality and features would help them better.
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6.. Positioning of the reliance dairy product Are not clear in the minds of consumers and retailers. I have encountered this problem during market survey when people ask me Is there is also reliance milk this problem is due to lower advertisement in the local and mass media channels. 7..The supply chain management of product is another aspect of brand image. Providing the product at the right time and right place is definition of proper SCM. The milk market is on its peek early in the morning (between 5 to 8 AM), so company should ensure that the product should be on retail shop as early as possible. 8..Advertisement of product is an important process to get consumer attention but if we see the milk by advertising point of view it doesnt need as much as other product. It needs only somewhat promotion strategy that can be through banner and posters. 9.. Rather than providing the benefit to the retailers only reliance dairy should also focus on providing some benefit to customers also in terms of discounts, low prices and some sales promotion scheme. 10.. Pricing of the milk and buttermilk of Reliance dairy is equal to Market leaders like amul, mother dairy, paras etc. Even at this nascent stage of company pricing at this high level is not prudent. So pricing of product should be kept a little low. 11.. One more important suggestion is that like other big brands like amul, paras, mother dairy etc . reliance dairy should also have its own website so that it can have a global reach to its consumers and retailers.

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Conclusion This is the vision of the future which the company sees for itself: Reliance dairy will be an outstanding marketing organization, with specialization in marketing of food and dairy products, both fresh and long life with customer focus and information technology integration.

Of the three A's of marketing availability, acceptability and affordability, Indian dairying is already endowed with the first two. People in India love to drink milk. Hence no efforts are needed to make it acceptable. Its availability is not a limitation either, because of the ample scope for increasing milk production. It leaves the third vital marketing factor affordability. How to make milk and its product affordable for the large majority with limited purchasing power? This can be done with proper planning and right decision that is to be taken at the right time.

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References
1. About Milk types and Processing of milk Retrieved on 29th June 2013 from www.agroexports.com 2. Indian dairy Industry prospects Retrieved on 29th June 2013 from cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf 3. Report on Indian Dairy Industry Retrieved on 29th June 2013 from www.ficcifood360.in/pdfs/day2-2012/dairy/Pre.../2.Mr.Sunjay,PWC.pdf 4. About Reliance Group Retrieved on 29th June 2013 http://www.ril.com/html/aboutus/aboutus.html 5. Reliance retail business Retrieved on 29th June 2013 http://www.ril.com/html/business/business_retail.html 6. Report on animal abuse and contaminated milk Retrieved on 29th June 2013 www.happycow.net/pdf/PTA_DairyReport_0212081.pdf 7. Dairy Development in India Retrieved on 30th June 2013 www.iisc.ernet.in/insa/ch22.pdf 8. Statistics of Indian dairy industry Retrieved on 30th June 2013 www.iideindia.com/IIDE2013_bro.pdf 9. Annual Report Reliance Dairy Foods 2008-2009 Retrieved on 29th June 2013 from http://www.ril.com/rportal1/DownloadLibUploads/12%20Reliance%20Dairy%20Foods %20Limited.pdf 10. Potential of Indian dairy industry 2017 Retrieved on 30th June 2013 http://www.gyananalytics.com/Synopsis%20&%20TOC%20%20Potential%20of%20Indian%20Dairy%20Industry%20-%202017.pdf 11. State wise data on livestock and dairy product production Retrieved on 30th June 2013 mofpi.nic.in/dairyindustry.aspx 12. About paras dairy and its products Retrieved on 30th June 2013 http://www.parasdairy.com 13. About Amul dairy and its products Retrieved on 30th June 2013 http://www.amul.com/ 14. About Mother Dairy and its products Retrieved on 30th June 2013 www.motherdairy.com 15. About Kwality Ltd Dairy best and its products Retrieved on 30th June 2013 http://www.kdil.in/ 16. Reliance Dairy Foods celebrates World Milk Day Retrieved on 30th June 2013 http://www.onlineprnews.com/news/234359-1338614909-reliance-dairy-foodscelebrates-world-milk-day.html

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Annexure
Questionnaire for Analysis of Distribution Channel of milk products of Reliance Dairy Foods India Ltd. Undertaking
This questionnaire is designed solely for the purpose of study and analysis of distribution channel of Reliance Dairy Foods India Ltd. The information provided under this questionnaire is going to be used legitimately and judiciously.

Market area : .................................................................................................................... Shop/Distributors Name: ..................................................................................................... Address: ..................................................................................................................................... Respondent Name: ............................................................................................................ Contact Number: .............................................................................................................

1.Are you selling Reliance Dairy Milk Product? a). Yes b). No c) Previous Seller

2. Reason for Selling Reliance Dairy Products ? a) Margin b) Promotional Schemes c) Demand d) Dealer relationship e) Credit Policy f) Other Reasons

3. Which other companies milk products do you stock? a) Mother Dairy b) Parag c) Amul d) Others e) Paras f) No other

4. What are the varieties of milks products that you store of Reliance dairy? a) Milk b) Lassi c ) Chaanch d ) Ghee e )Curd f)Other
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5. What is the quantity of a milk you order on an average of Reliance Dairy? a) 0-12 Lt. b) 12.5 36 Lt. c) 36.5 60 Lt. d) 60.5- 108 Lt. e) More than 108 Lt.

6. What is the quantity of a milk you order on an average of other brands? a) 0-12 Lt. b) 12.5 36 Lt. c) 36.5 60 Lt. d) 60.5- 108 Lt. e) More than 108 Lt.

7. Which type of milk you sell the most? a) FCM b) Double toned c ) Toned d ) Toned Milk e ) Other

8. Do you change your order quantity between summer and winters? a) Yes b ) No

9. Do you get the timely delivery of Reliance Dairy Products? (i) Milk a) Yes a) Yes a) Yes b ) No b ) No b ) No b) No b ) No b ) No c) Not applicable c) Not applicable c) Not applicable c) Not applicable c) Not applicable c) Not applicable

(ii) Dahi (iii) Chaach

(iv) Masala Chaach a) Yes (v) Ghee (vi) Lassi a) Yes a) Yes

10. By which vehicle you provide milk products to retailers ( Distributors only )? (a) Insulated Vans/Trucks (b) Trolleys (c) Small Pick up Trucks (d) Two wheelers (e) Others

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11 What is the daily cost of distributing milk and milk products to retailers (Distributors only) or Daily cost of Holding (for Retailers)? (a) 0 - 100 Rs. (b) 101 300 Rs. (c) 301-600 Rs (d) 601 1000 Rs (e) More than 1000 Rs

12. Does organizations stated below helps you by providing storage equipment? a) Mother Dairy b) Parag c ) Amul d ) Reliance e ) Paras f ) Other

13. How do you rate the schemes of the Reliance Dairy? a) Good b) Average c) Poor

14. How do you rate the Margin of the Reliance Dairy? a) Good b) Average c) Poor

15. How do you rate the Quality of Reliance Dairy Products? a) Good b) Average c) Poor

16. How do you rate the Employees behaviour with you? a) Highly Satisfied b) Satisfied c) Dissatisfied d) Highly Dissatisfied

17. How do you rate the Damage Policy of Reliance Dairy Products ? a) Highly Satisfied b) Satisfied c) Dissatisfied d) Highly Dissatisfied

18. Are you getting information about scheme of Reliance Dairy Products at proper time? a) Yes b) No

19. Would you like to give some suggestions regarding the improvement of distribution of reliance products? ................................................................................................................ ................................................................................................................ ................................................................................................................ .
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