DAIRY INDUSTRY

A dairy is a business enterprise established for the harvesting or processing (or both) of
animal milk – mostly from cows or goats, but also from buffaloes, sheep, horses, or camels –
for human consumption. A dairy is typically located on a dedicated dairy farm or in a section
of a multi-purpose farm (mixed farm) that is concerned with the harvesting of milk. India is
the highest milk produc3er in the entire globe. India has been the leading producer and
consumer of dairy products worldwide since 1998 with a sustained growth in the availability
of milk and milk products. Dairy activities form an essential part of the rural Indian economy,
serving as an important source of employment and income. India also has the largest bovine
population in the world. However, the milk production per animal is significantly low as
compared to the other major dairy producers. Moreover, nearly all of the dairy produce in
India is consumed domestically, with the majority of it being sold as fluid milk. On account
of this, the Indian dairy industry holds tremendous potential for value-addition and overall
development.

Along with offering profitable business opportunities, the dairy industry in India serves as a
tool of socio-economic development. Keeping this in view, the Government of India has
introduced various schemes and initiatives aimed at the development of the dairy sector in the
country. For instance, the “National Dairy Programme (Phase-I)” aims to improve cattle
productivity and increase the production of milk expanding and strengthening and expanding
the rural milk procurement infrastructure and provide greater market access to the farmers.
On the other hand, the private participation in the Indian dairy sector has also increased over
the past few years. Both national and international players are entering the dairy industry,
attracted by the size and potential of the Indian market. The focus is being given to value-
added products such as cheese, yogurt, probiotic drinks, etc. They are also introducing
innovative products keeping in mind the specific requirements of the Indian consumers.
These players are also improving their milk procurement network which is further facilitating
the development of the dairy industry in India. Looking forward, the market is expected to
reach a value of INR 18,599 Billion by 2023, exhibiting a CAGR of around 15% during
2018-2023.

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AMUL

Anand milk union limited or amul is an Indiandairy cooperative, based at anand in the state
of Gujarat. Formed in 1948, it is a brand managed by a cooperative body, the Gujarat
cooperative milk marketing federation limited, which today is jointly owned by 3.6 million
milk producers in Gujarat. Amul spurred India’s white revolution, which made the country
the world’s largest producer of milk and milk products. The white revolution was
spearheaded by tribhuvandas Patel under the guidance of sardar Patel and Varghese Kurian.
As a result, kaira district milk union limited was born in 1946. Tribhuvandas became the
founding chairman of the organisation and led it until his death. He hired dr.kurien three
years after the white revolution. He convinced dr.kurien to stay and help with the mission.
Kurian, founder-chairman of the GCMMF for more than 30 years, is credited with the
success of amul. Amul has become the largest food brand in India and has ventured into
markets overseas. Amul products are now available in more than 20 years.

HISTORY

Amul cooperative registered on 14 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in
the small city distances to deliver milk, which often went sour in summer, to Polson. The
prices of milk were arbitrarily determined. The government had given monopoly rights to
Polson to collect milk from kaira and supply it to Bombay city.
Angered by the unfair trade practises, the farmers of kaira approached sardar vallabhbhai
Patel under the leadership of local farmer leader tribhuvandas k. Patel. He advised them to
form a cooperative and supply milk directly to the Bombay milk scheme instead of Polson.
He sent morarji desai to organise the farmers. In 1946, the milk farmers of the area went on a
strike which led to the setting up of the cooperative to collect and process milk. Milk
collection was decentralized, as most producers were marginal farmers who could deliver, at
most, 1-2 liters of milk per day. Cooperatives were formed for each village, too. By June
1948, the KDCMPUL had started pasteurizing milk for the ‘Bombay milk scheme’.
The cooperative was further developed and managed by dr.verghese Kurian with H.M.dalaya.
Kurian’s brother in law k.m.philip sensitized Kurian to the needs of to attending to the finer
points of marketing, including the creation and popularization of a brand.

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UHT products and impact

Over the years amul has been witnessing growth in this portfolio, with the segment growing
at 53%, long life UHT products for urban populations, like amul taaza, which are packed in
tetra pack cartons, which undergoes UHT treatment to remove all harmful micro-organisms
while retaining the nutrition in the milk.
Brands:
Amul milk
Bread spreads
Cheese
UHT milk
Beverage range
Amul PRO
Ice cream
Paneer
Dahi
Ghee
Milk powders
Mithai range
Mithai mate
Chocolates
Lactose free milk
Fresh cream
Amul sour cream
Pounch butter milk
Amul cattle feed
Recipes
Happy treats

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MARKETING MIX
1. Product
Amul has a very strong product portfolio. Amul product portfolio is comprised mainly of
dairy products. The only disappointing performance is seen in amul chocolates which are a
burden for amul and lot of push is required for the sales of the same. This is because the
chocolate market has established players like parle, dairy milk and others. Amul has various
competitors based on different products. In butter and milk there is mother dairy, Britannia
and others. This is the major reason that amul has a sustainable competitive advantage over
its competitors. Different products for different kinds of people are:
 Kids
Amul kool
Chocolate milk
Nutramul energy
Milk shake
 Women’s
Amulcalci
 Youth
Utterly delicious pizza
Amul emmental cheese
Amul cheese spreads
 Health conscious
Nutramul
Amul Shakti health food drink
 Calorie conscious
Amul lite
Sagar skimmed milk powder
2. Price
Amul has a strategy of low cost pricing. But penetrative pricing strategy is used when the
market has a high level of competition and a player wants to establish itself in the market by
giving low prices. During the introduction stage itself, amul had a vision to provide their
products to end customers at the best affordable rates.

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 3. Place
Amul has a massive distribution network because its ice cream, milk, butter and cheese is
found practically everywhere. Later on this bulk becomes smaller and smaller and finally one
individual slab of butter or scoop of ice cream is sold at the retail price. One is the
procurement channel which is responsible for collection of milk through dairy co-operatives.
The other is the distribution channel which is responsible for distributing the finalized
product to the end customers. In the distribution channel, there are carrying and forwarding
agents, distributors, dealers and retailers involved.

4. Promotion
Amul is responsible for one of the most unique and longest running outdoor campaign as well
as one of the most known outdoor advertising characters-the amul girl. Mr Eustace
Fernandez, the creative brain behind the sweet girl. The promotions of amul are mainly for
butter but for all the other products there is hardly any promotions. During the launch of
products, amul is known to go ATL and advertise milk, butter etc.

SWOT ANALYSIS

Strengths
Largest food brand in India
High quality, low price
World’s largest pouched milk brand
Annual turnover of US $1504 million
Highly diverse product mix
Robust distribution network

Weakness
risks of highly complex supply chain system
strong dependency on weak infrastructure
alliance with third parties who do not belong to the organized sector

Opportunities
penetrate international markets
diversify product portfolio to enter new product categories
Expand existing categories like processed foods, chocolates etc.

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Threats
competitors-Hindustan lever, nestle and Britannia
still competition from MNCs in butter
growing price of milk and milk products
ban on export of milk powder

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KWALITY LIMITED

Kwality Ltd. is a processor and handler of dairy products in India in the private sector. The
company produces various types of dairy products, which include Milk, Ghee, Butter, Milk
powder, Curd, Yogurt, Cheese etc. The company has established procurement network which
comprise 3,50,000 farmer families across 4,700 villages in North India. Kwality Ltd. has six
plants in Haryana, Uttar Pradesh and Rajasthan with processing capacity of 3.4 million liters
milk per day.
Kwality Ltd. was incorporated in 1992 as Kwality Dairy (India) Ltd and registered with the
registrar of companies (West Bengal) at Calcutta. In 1995 the company started
producing ghee, skimmed milk powder etc. The total cost of the above project was 36 billion
rupees; it was financed by way of public issue.
In 2013, Kwality Dairy India Ltd was changed from Kwality Dairy (India) Limited to
Kwality Limited.

BRANDS AND SUBSIDIARIES

The company sells milk under the brand Kwality Milk, which is available in three variants
Full Cream, Toned & Double Toned. It also sells ready to drink Flavoured Milk, Dahi,
Chaach etc. It is the first company in India to launch fortified flavoured milk with vitamin
A+D in multiple flavours like Kesar, Badam, Elaichi, Butterscotch and Cold Coffee.

PRODUCTS

The product range of the company includes skimmed Milk powder, Whole milk powder,
Dairy Whitener, dairy mix, Ice cream mix, Ready to drink milk, and Ghee among other
products.
1. Pure Ghee

Available in:
RT Pack 200ml, 500ml & 1 litre
Poly Pouch 500ml & 1 litre
Tin Containers 500ml, 1 litre, 2 litre, 5 litre & 15 kg
Poly Jars 200ml, 500ml, 1 litre, 2 litre & 5 litre
Poly Bucket 15 litre

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2. Cow Ghee

Available in:
RT Pack 200ml, 500ml & 1 litre
Poly Pouch 500ml & 1 litre
Tin Containers 500ml, 1 litre, 2 litre, 5 litre & 15 kg
Poly Jars 200ml, 500ml, 1 litre, 2 litre & 5 litre
Poly Bucket 15 litre

3. Low Cholesterol Ghee

Available in:
RT Pack 1 litre
Tin Containers 1 litre

4. Milk - With Extra Vitamin A & D

Available in:
Dairy Best Full Cream Milk
Dairy Best Toned Milk
Dairy Best Double Toned Milk
Dairy Best Standard Milk
500ml, 1 Litre and 6 Litre
500ml, 1 Litre and 6 Litre
500ml
500ml and 1 Litre

5. UHT Milk

It is available in 4 Variants:
Standard Milk
Toned Milk (Rs.38)
Double Toned Milk (Rs.34)
Skimmed Milk

6. Curd

Dahi
Cup 100gms, 200gms & 400gms
Pouch 200gms, 400gms & 1 kg
Matka 1 kg, 2 kg, 5 kg & 15 kg

7. Sterilised Flavoured Milk

Available in:
200ml PP bottles

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ADVERTISING

The company had signed up the actor Akshay Kumar as a brand ambassador in October 2015
for two years, according to a BSE filing.
In September 2017, the company confirmed the reappointment of Akshay Kumar as its brand
ambassador for another two years. Kwality Limited came out with a campaign for its brand of
milk, ‘Kwality’. The TVC campaign was conceptualized by McCann Health, India and it
featured Akshay Kumar. The ad that features Akshay Kumar conveys the message that now
nothing will hold you back as ‘protein Ki Shakti’ from Kwality milk will help you live
‘zindagi’ non-stop.
“The brand promise, zindagi non-stop, captures the truth of the fast-paced life we live today
and at the same time presents the brand as a solution to keep moving forward. It is a different
take on how milk can help you lead a life,” said Rajesh Rai, Executive Creative Director,
McCann Health.
Commenting on the campaign, Nawal Sharma, President and Head,
Business Transformation, Kwality Limited, said, “We are going through an exciting journey
of strategic transformation -- from being a B2B player to B2C. Creating a strong brand is
of utmost importance to us. The ad film delivers the brand promise very well. More
importantly, we are getting good reviews from our consumers and trade partners since the
time we have started airing it.”

MARKETING STRATEGY

Delhi-based Kwality Ltd has made good use of these opportunities. The company, though it
accounts for just one per cent market share, has managed to grow its revenue eight-fold since
March 2009, clocking a compounded annual growth rate of 51 per cent.
The company's stellar performance is the result of a well-thought-out strategy implemented
over the last four-five years. It was already supplying products to fast-moving consumer
goods (FMCG) and dairy companies such as Amul and Mother Dairy. In 2010, it entered
retail with the launch of its own brand, Dairy Best. It started with ghee and by 2012 expanded
the product range under the umbrella to curd, pouched milk and skimmed milk.
Retail has been growing at 25-30 per cent a year. In 2014/15, the revenue from the retail
business was Rs 1,600 crore, up from Rs 1,200 crore in the previous year. The retail business
today accounts for 25-30 per cent revenue.
In 2011, the company set up a wholly-owned subsidiary, Kwality Dairy Products-FZE, in a
free trade zone of the United Arab Emirates after it got a licence for dealing in milk-based
products. Exports got a boost with the removal of ban on export of skimmed milk powder,
whole milk powder and dairy whitener in 2012. Today, the company exports dairy products
to around 30 countries across Asia and Africa. In 2014/15, it earned Rs 530 crore from
exports, 190 per cent more than in the previous year.
The toughest part of the business is procurement of milk from farmers. Since 2012, when it
launched its milk brand, it has built a strong procurement network of 2.85 lakh farmers in

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4,000 villages and three states. It has also opened 20 chilling centres. The company had one
milk-processing unit in Palwal, Haryana, till 2010. Since then, it has added five more. It
handles 33 lakh litres milk every day.
Kwality sees retail segment as a key driver of growth. It currently accounts for 25 per cent
revenue.
The market for value-added products such as flavoured milk and packaged cheese is
expanding. They are significantly adding to the revenue in the near term but command higher
margins.
Kwality, which mostly operates in north India, plans to spread its reach across the country.
"We plan to launch products that have a shelf life of between three and six months so that we
can go pan India," he says.

SWOT ANALYSIS
Strengths

 The wide range of products:

Kwality Walls has an ice cream to cater to each and every requirement of the customer.
While Cornetto & Feast cater to the teens and young adults through a host of rich flavours
like chocolate and butterscotch, Paddle Pop is a frozen dessert that caters to kids through
the usage of bright colors and association to cartoons. The brand has a variant Creamy
Delight that caters to family audience, & Carte D’or and Fruttare for customers who prefer
refreshing fruit flavors.

 Pricing:

Kwality Walls has been successful in covering various price points with Paddle Pop at Rs
5 and Rs 10. The Cornetto ice creams are priced in the mid-range between Rs 20 and Rs
30. The take-home category is also affordable between Rs 160 and Rs 210. This means that
the brand has a broad coverage across various price points.

 Presence in the health category:

Kwality Walls launched its first variant in the health segment through the Selection range
which has around 99 calories in 80 ml. HUL the parent company has a lot of expertise in
the health food range and they spend almost 40 % of their research budget towards this
category which clearly indicates their focus in this segment. The current focus of Kwality
Walls is on low fat, sugar-free, lactose-free, as well as low-carb ice creams that are rich in
nutritional goodies like calcium and fruit.

Weaknesses

 Focus on metros only:

HUL believes that 70 percent of its sales come from cities and metros and thus focus there
with respect to Kwality Walls. However, the competitors like Mother Dairy or Vadilal as

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 well as Amul have the presence across India. This will affect sales volumes of the
company.

Opportunities

 Demand for healthy ice creams:

There has been an increase in the demand for healthy ice creams which has been fuelled
by the concern for health. The current trend is low fat, sugar-free, lactose-free, as well as
low-carb ice creams that are rich in nutritional goodies like calcium and fruit. Kwality
Walls has a lot of focus on these sectors.

 Change of consumer preferences:

Aspects like influence of western culture, growing interest in snacking, increased

propensity to spend and more eating out have all resulted in growing demand for frozen
desserts,

Threats

 Competition:

Some of the major competitors of Kwality Walls are Vadilal Ice Creams, Amul and
Mother Dairy.

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 KERALA CO-OPERATIVE MILK MARKETING FEDERATION (KCMMF)

Introduction

The KCMMF was among the first federation in India to have an elected board it was
popularly known as Milma and was set up in 1980. It operates on the truly democratic lines
of “of the farmers by the farmers, for the farmers’ with the chairman and board of directors of
the organizations. It deals with milk and a whole variety of milk products which enjoy the
confidence of each and every Keralite, for their quality and standard with it units of
procurement, processing and sale spread over all the villages and towns of the state, giving
employment and prosperity to a large number of small and marginal farmers including
women and the landless, processing employees and sellers. KCMMF was formed as a state
adjunct of the National Dairy Programme ‘Operation Flood’ under NDDB. It is a three-tiered
organization. At the grassroots level MILMA has 3206 Anand model primary milk co-
operative societies as on 31.03.2015 with 9.24 lakh local milk producing farmers as
members. Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called
‘MILMA’ was established in April, 1980 with its head office at Trivandrum for the
successful implementation of ‘Operation Flood’ Programme in Kerala
These primary societies are grouped under three Regional Co-operative Milk
Producers’ Unions viz.

 TRCMPU - Thiruvananthapuram Regional Co-operative Milk Producers' Union Ltd

ERCMPU - Ernakulam Regional Co-operative Milk Producers' Union Ltd
 MRCMPU - Malabar Regional Co-operative Milk Producers' Union Ltd

Objectives

 To channelise marketable surplus milk from the rural areas to urban deficit areas to maximize
the returns to the producer and provide quality milk and milk products to the consumers .
 To carryout activities for promoting Production, Procurement, Processing and Marketing of
milk and milk products for economic development of the farming community.
 To build up a viable dairy industry in the State.
 To provide constant market and stable price to the dairy farmers for their produce

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MARKETING MIX OF MILMA
Product mix
Pasteurized standardized milk
Pasteurized homogenized toned milk
Pasteurized toned milk
Pasteurized Double toned milk (smart)
Pasteurized toned milk ( special)
Paneer
Set curd
Sambharam
Skimmed milk curd
Milma butter
Milma ghee
Ice cream varieties
Gulabjamun
Palada mix
Peda
Milk powder
Milma pro

Place mix
TRCMPU

 Thiruvananthapuram
 Kollam
 Alappuzha
 Pathanamthitta

ERCMPU
 Ernakulam
 Thrissur
 Kottayam
 Idukki
MRCMPU
 Kasaragod
 Kannur
 Wayanad
 Kozhikode
 Malappuram
 Palakkad

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Promotion Strategy
 Advertisement
 Sampling
 Coupon
 Contest
 Demonstration

MARKETING STRATEGY
Kerala Milk Marketing Federation (Milma), which has formed a new marketing venture,
Milma Foods with NDDB subsidiary, Mother Dairy is to evolve new marketing strategies. As
part of this move, NDDB would provide Rs 38 crore for the venture, according to Milma
chairman PT Gopalakurup.The thrust would be to recapture Milma's market share that has
been taken away by private milk producers. For this Milma would raise its capacity to 13.5
lakh litres from its present 9 lakh. For maintenance of uniform quality, the venture would go
in for chilling plants and bulk coolers. The venture would take up diversification after
steadying its milk market. Milma would enhance production of its milk powder, ice cream
and butter. It was also considering door delivery. Among the diversification plans would
include distribution of other products like coffee and Dhara cooking oil of NDDB. Mr Kurup
felt that though nearly four lakh litres of milk flowed into the state from outside daily, there
was a market for the product in the state, provided Milma ensured quality. The company
would utilise its present marketing system with a staff strength of 250. However, it could
consider a VRS scheme after talks with the unions. Milma Foods was a joint venture with
Mother Diary where the latter had a 51 per cent stake, which according to a section of
workers would affect the interests of Milma. During last year, Milma's turnover crossed Rs
550 crore. Details of its financial performance would be available only after the annual
general meeting soon. The federation had suffered aRs 3.5 crore loss in its cattlefeed sector
which was mainly owing to the high price of raw materials. The state government owed the
federation Rs 6 crore through its much publicised government programme of a `cup of milk
and handshake' for school children.

The Marketing activities in these dairies can be broadly classified into Distribution
Management and Market Development Activities. The former involves daily distribution of
fresh milk and curd in the morning and afternoon through insulated vehicles to the dealers
and collection of money and indent from dealers and other related planning and follow-up
activities. The latter involves field activities designed to expand the reach of the Union's
distribution channel for milk and milk products and to increase market penetration. This is
done through a team of field sales representatives for each dairy who are given the
responsibility in a specified geographic zone, which in turn comprises of a number of defined
markets. The framework for the Yearly activities as well as the financial support is provided
through the yearly Marketing Plans of Operation, which is finalised along with the year-wise
budgets.

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SWOT ANALYSIS
Strength
 District wise it is the largest agricultural area of Kerala; therefore here the milk
production is also very high quality
 Availability of resources is high.
 Purchasing power of consumer is increasing with growing economy of middle class
people.
 Increasing demand for milk production since milk consumption is a regular part of
our diet.
 Sales in diversity in different places.
 Large number of commercial and hi –tech farms are coming up
 More financial stability of common people
 24 hours milk service

Weaknesses
 Management of flesh and lean is not possible during the milk production is high
&low
 Large number of competitors
 Diseases to cattle
 High cost of production
 Supply to interior places is not possible
 Unable to meet the demand in rural areas

Oppourtunity
 There are lot of wastelands, which can be used properly for fodder cultivation
 Increased export potential for indigenous milk products
 There is a demand for dairy products in townships, villas, colonies and apartments)

Threat
 Large Competitions
 FMD diseases are increasing
 Fragmentation of land switch on to other jobs
 Liberalization

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TAMIL NADU CO-OPERATIVE MILK PRODUCER’S FEDERATION
LIMITED

INTRODUCTION

Aavin is the trademark of Tamil Nadu Co-operative Milk Producers' Federation Limited, a
Tamil Nadu-based milk producer's union. Aavin procures milk, processes it and sells milk
and milk products to consumers. The dairy development was established in 1958 in
Tamilnadu. The administrative and statuary controls over all the milk cooperatives in the
state were transferred to the dairy development department on 1.8.1965. The commissioner
for milk production and dairy development was made as the functional register under the
tamilnadu cooperative societies act. With the adoption of “Anand pattern” in the state of
tamilnadu. Tamilnadu Co- Operative Milk Producers’ Federation limited was registered in
the state of 1st February 1981. The commercial activities of the department such as milk
procurement, chilling, processing, packing and sale of milk to the consumer etc., hitherto
dealt with by the tamilnadu dairy development cooperation limited, were transferred to the
newly registered Tamilnadu Co-operative Milk Producers’ Federation Limited, popularly
known as “Aavin”. Tamilnadu Co-operative Milk Producers’ Federation Limited was
constituted on 1st February 1981. Federation is procuring, processing and marketing of milk
and milk products federation has implemented the dairy development activities under
operation flood programmed with a financial and technical assistance of national dairy
development board. Chennai metro is having four dairies. Milk procurement, processing and
distribution are being attended by the district unions in the respective areas. In the wake of
liberalization policy, private dairies have also entered into the field of the honourable Chief
Minister of Tamilnadu high priority has been given for improving the performance of milk
co-operatives by adopting a symmetric approaching and proper strategy in milk co-

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operatives. Significant achievement has been made by milk producers’ cooperative societies,
unions and federation in the state of Tamilnadu. The cattle population in India is
approximately 15% of total cattle population in the world. India stood no.1 position in milk
production. Tamilnadu is one of the leading state in milk production. The milk production in
tamilnadu per day is 145.88 lakh litres

PRODUCT MIX

Aavin produces 4 varieties of milk

 Toned milk
 Double toned milk
 Standardized milk

Others products includes the following:

 Yogurt
 Khoa
 Curd (3varities)
 Buttermilk
 Gulabjamun
 Mysorepa
 Dates khoa
 Paneer
 Lassi varieties
 Milk peta
 Chocolate

It is also engaged in the manufacture of milk products such as

milk khoa, mysorepak, gulabjamun, curd, butter milk, lassi, yoghurt and ice-creams. In
September 2017, Aavin announced that it would be launching seven varieties of milk-based
sweets for Deepavali.

Objectives
1. Assure a remunerative price for the milk produced by the member of the milk producers’
co-operative societies through a stable, steady and well organized market support.

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2. Distribution of quality milk products to the consumers at reasonable price.

Keeping these objectives in mind, a number of activities are undertaken by the dairy
development department. Provision of free veterinary health cover to all animals owned by
the members of milk cooperatives, implementation of artificial insemination program, supply
of balanced cattle feed and inculcation of farmers with modern animal husbandry methods
and practices. All activities, which are essential for the up gradation of the mitch animals and
improving their productivity in the long run, have been undertaken. Provision of necessary
infrastructure facilities for marketing milk products and supply of quality milk to the
consumer has been made by way of establishing new chilling centers, pasteurization plants
and adoption of modern of modern processing system.

PLACE MIX

Center of Aavin in Tamilnadu Tirunelveli is the main branch of milk production and
preparing dairy products. Four small branches: Under Tirunelveli, there are four small
branches located as follows

1. Sankarankoil

2. Vallioo

r 3. Shathankulam

4. Kovilpatti.

In TCMPF, the activities of purchase and maintenance of milk tankers, Light Vehicles and
Heavy Vehicles are dealt by the Transport Unit. Milk received from the various Dist. Unions
to Metro Dairies and supplied to the market for sales through milk tankers are controlled by
this unit.

MARKETING STRATEGIES

At present this union is marketing 60,000 LPG approximately in the Tirunelveli and
Thoothukudi district through its agents, booths and parlours. No of agents are:

 86 Association
 17 Private institutions
 15 Government Institutions
 8 Societies

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  8 Milk booths
 12 Milk parlous
 14 No of milk distribution routes

The following three marketing divisions are functioning under the corporate office, marketing
unit headed by the General Manager.

Madhavaram Marketing Division (North Division)

Ambattur Marketing Division (Central Division) and

Sholinganallur Marketing Division (South Division)

11,50,000 Lakh Litres average per day, milk has been procured and supplied to the Chennai
City and around the Chennai. City in the form of Sachet Milk through 119 milk route vehicle
from Ambattur, Madhavaram and Sholinganallur Metro Dairies. Milk has been sold through
Federation Depots, Co-operative Society Depots, AVM Unit and Whole Sale Dealers. Milk
products are sent to the market through 17 product route vehicles for sales and 3 ice cream
freezer vehicles. The Butter, Ghee, Skimmed Milk Powder, Tetra Milk, Flavored Milk
received from the various Dist. Co-op. Milk Producers’ Unions are also sent to market for
sales through the above said product route vehicles. The milk and milk products sales are
controlled by the various Zonal Offices in Chennai City.

SWOT ANALYSIS

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QUALITY

 One Quality Control Lab is functioning in each Dairy under the direct control of
the Joint Managing Director.
 Checking the quality of milk and milk products right from its production till it
reaches to the consumers.
 Checking the quality of milk received from the Dist. Unions.
 Checking of quality of milk products dispatched from Products Dairy and District
Unions.

PRICE MIX

Name Of The Product Pack Size Price(Rs per unit)

Dates Khoa 500gm 220.00

Dates Khoa 250gm 115.00

Dates Khoa 100gm 48.00

Unsugar Khoa 1 Kg 500.00

Unsugar Khoa 500gm 250.00

Milk Peda 100gm 42.00

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Milk Peda 250gm 100.00

Paneer 200gm 65.00

Mysorepa 500gm 220.00

Mysorepa 250gm 115.00

N'Rich (Bottle) FM 200ml 20.00

Probiotic Curd 100ml 14.00

Probiotic Curd 200ml 25.00

Probiotic Lassi 200ml 25.00

Lassi (Sachet) 200ml 18.00

Yoghurt 100ml 20.00

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KARNATAKA COOPERATIVE MILK PRODUCERS FEDERATION
LIMITED (KMF)

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body for the
dairy co-operative movement in Karnataka. It is the second largest dairy co-operative
amongst the dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is marketing of
Milk and Milk Products. The Brand "Nandini" is the household name for Pure and Fresh milk
and milk products. KMF has 14 Milk Unions covering all the districts of the State which
procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the
consumers in various Towns/Cities/Rural markets in Karnataka.
Coordination of activities among the Unions and developing market for Milk and Milk
products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is
organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member
Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is
organized by KMF, both within and outside the State, all the Milk and Milk products are sold
under a common brand name NANDINI.
The results of effective dairy development by KMF have made far-reaching and extensive
impact on rural landscape in Karnataka. The best remunerative milk purchase price to
farmers, efficient and timely input services, delivered at the door-steps to farmers, such as,
unfailing veterinary health services to any remote village, quality artificial insemination for
breed improvements, supply of balance cattle feed at less than the market price, etc., have
made the farmers to increasingly patronize their cooperative. The extent of patronization by
farmers is so complete, that dominant share of marketable surplus milk of farmers in
Karnataka is procured by KMF dairies and hardly there is any organized private dairy milk
procurement, which is widely prevalent in other parts of the country

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 MARKETING MIX

Product
 Nandini Cheese. Nandini Cheese.
 Nandini Paneer. Nandini Paneer.
 NandiniFlavored Milk
 Nandini Diced Paneer.
 Mysore pak
 Peda
 Khova
 Premium BadamBurfi, Premium Cashew Burfi, Dry Fruits Burfi, Coconut Burfi Chocolate
Burfi,
 varieties of Peda like KesarPeda, ElaichiPeda
 Ready to Eat KhovaJamoon and Rosogolla, Nandini Bite, Jamoon mix and Badam powder.

Price

Cream 1000 ML 145.00

Khova Bulk / KG 260.00

200 ML 10.00
Good Life
500 ML 23.00

Good Life Slim 500 ML 24.00

500 ML 18

1000 ML 35
Toned milk
250 ML 10

6000 ML 207

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 15 KG TIN 7425.00

200 ML 96.00
Ghee
500 ML 225.00

1000 ML 450.00

500 ML 21
Nandini Special
1000 ML 41

200 GMS 65.00

Paneer 500 GMS 150.00

1000 GMS 290.00

25 GMS 10.00

Peda 100 GMS 42.00

250 GMS 95.00

10 GMS 4.70

100 GMS 45.00

Butter 200 GMS 90.00

500 GMS(USB) 220.00

500 GMS(SB) 220.00

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PLACE

KMF has the following units function directly under its control:

•Mother Dairy, Yelahanka, Bangalore

• Nandini Milk Products, KMF, Bangalore

•Cattle Feed Plants at Rajakunte / Dharwad/ Hassan

• Nandini Sperm Station at Hessaraghatta

•Pouch film plant at Munnekolalu, Marathahalli

•Central Training Institution at KMF Complex, Bangalore.

•Quality control lab at KMF Complex, Bangalore.

SWOT ANALYSIS
Strengths
 ‘NANDINI’ is a trusted household brand name.
 Maintaining standard quality milk and milk products.
 ISO certified dairy.
 Large network of organization suppliers of the procurement of milk.

Weakness
 Delay in decision making.
 Need more counseling interaction between employees.
 Inter-union competition.

Opportunities
 To market the products at national level.
 Innovation for the introduction of new products.
 The company can go for technological advancements
 Expansion of products line in current market.

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Threats
 Private dairy competition, procurement and sales.
 Competition from local milk vendors.
 Presence of duplicate milk and milk products in the market.
 A group of unorganized local vendors can dominate the market

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Piyo Pure....

INTRODUCTION
Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian company that manufactures markets
and sells milk, milk products and other edible products. Its milk products include cultured
products, ice cream, paneer and ghee under the Mother Dairy brand. The company also
sells edible oils, fresh fruits and vegetables, frozen vegetables, and processed food like fruit
juices, jams, pickles etc. Mother Dairy was founded in 1974, as a wholly owned subsidiary of
the National Dairy Development Board (NDDB).
The Company over the last many years has created a market leadership position for itself in
branded milk segment in Delhi & NCR through a robust network of its booth and retail
channels. It has also expanded its reach to other regions in North, South, East and West with
its offering of Milk and Milk products pegging it among the few companies to own such a
vast channel of distribution in India.

Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed to
uphold institutional structures that empower milk producers and farmers through processes
that are equitable. A significant portion of its income is ploughed back into the value chain to
support and maintain the system.

Vision and Mission

Vision
“Provide food quality and beverages to consumers at affordable prices while ensuring fair
returns to the producers.”
Mission
“Mother Diary’s heritage intrinsically linked to the co-operative movement in India. With
determination and pride we will continue to serve our farmers, rural India and our consumers.
Our values reflect who we are and what we firmly believe in”.

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4 P’s of Mother Dairy
Product:
Mother Dairy is a leading brand offering milk, milk based products & other food items in
India. Mother Dairy product portfolio is majorly divided based on the three brands Mother
Dairy, Dhara and Safal. These brands cover the product strategy in the marketing mix of
Mother Dairy.
Mother Dairy, the parent brand is mainly concerned with the whole dairy product range. The
product depth and length is quite extensive creating a huge over all product range. The
Mother Dairy product range is categorised into milk, milk products and ice creams segments.
The milk segment consists of bulk vended milk, poly packed milk, ultra heat treatment milk.
The Mother Dairy milk products segment comprises of different types of curds, pro biotic
drinks, paneer, butter, cheese, ghee, cream, sweets, lassi, butter milk etc. The ice creams
segments consists of various classic flavours, Indian versions such as kulfi and sugar free
variants.
Safal which majorly deals in fruits and vegetables has wide variety of products comprising
frozen vegetables and snacks, juices and drinks, jams and marmalades, pickles, tomato
ketchup and puree, honey and unpolished pulses. It also caters to daily needs of fresh fruits
and vegetables.
Dhara which deals in edible oils has various cooking oils like groundnut oil, olive oil, soya
bean oil, sunflower oil, vegetable oil and different variants of mustard oils. All these cover
the offerings of Mother Dairy.

PRODUCT STRATEGIES
Focused Approach
Mother Dairy focused on milk for 22 years, but now ,it is concentrating more on diverse
product range from ice-cream, vegetable, oil, water etc
Wider Spread
Mother Dairy started operations in Delhi-NCR region and remained for longer period at
same region, but it is now exploring new horizons such as Maharashtra, Kolkata, Saurashtra,
Andhra Pradesh, and Bangalore. Mother Dairy is presently going global, by selling its
products indirectly to more than 40 countries abroad such as USA, Europe, Middle East,
Russia and Far East Asia.
Other strategies
Advertisement and promotion strategies followed by mother dairy are really commendable.
Attractive packaging of the products is also noteworthy.
Product differentiation- Mother Dairy is focusing on different products from oil, frozen
veggies, dairy products, fruits and mineral water.
Smart Marketing - Mother Dairy is now focusing on communication with consumers, to
improve its marketshare.
Product enhancement - It is continuously trying to upgrade its product according to taste and
preferences of consumers.

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Quality - Have stringent quality control system, to avoidany adulteration in its product.
Expansion Strategies - Mother Dairy is diversifying itself with regards to product and
regional expansion in South India for example, offering coconut flavoured milk and ice-
creams, Safal’s frozen peas, Ready to eat AlooTikki corn and mix veg in South India.

Price:
Mother dairy a very penetrative pricing strategy. Since its suppliers are farmers and
cooperatives and needs to support them, milk prices change with inflations and certain
amount of fluctuations are visible in Mother Dairy milk prices. Prices also vary with
packages and variants of milk. Other milk products also have similar situations and we can
see pricing done according to rising prices of other input factors. In the Mother Dairy ice
creams segment, it keeps for regular ice creams competitive prices and premium prices for
other special flavours. The Safal brand also dealing with fresh fruits and vegetables keeps
market based prices. But many products under its brand faces huge competition and hence it
maintains competitive prices. The edible oil sections under brand Dhara faces a lot of
competition from many brands and hence as loyalty of customers is based on price and
quality.

Place:
Mother Dairy has a wide presence across India. In the milk industry, distribution is quite a
critical part of the business and hence to tap into various regions all over the country it has
1400 retail outlets and 1000 exclusive stores in place. Since Mother Dairy deals with a
perishable which needs refrigeration and has very less shelf life, it produces as per demand of
the regions. After being brought in from the farmers in tankers or being collected at the
collection centers, it goes on for processing in the plants and then on it is delivered to it Local
Area Distributors. These Local Area Distributors then send it to its exclusive Mother Dairy
booth, convenience stores, supermarkets and other smaller retailers Safal and Dhara also go
through the same supply chain before it could reach the retailer to the consumers.
Promotion:
Mother Dairy has adopted a subtle yet effective marketing strategy. As it is facing stiff
competition from national player Amul, Mother Dairy has moved onto smart marketing
strategy wherein it is working on better communication strategies. It is now coming up with
various advertising strategies to gain customer’s mind share. Recently Mother Dairy has
come up with ‘Tweet to Farmer’ campaign where we thank them for giving us milk. It has
roped in a mascot Makhan Singh which is targeted on the kids for various products like
cheese, butter and milk. The Mother Dairy ice creams have also been quite popular because
of TV commercials. Safal also takes help of green and environment friendly themes for
selling many of its products. Dhara brand has been on TV commercials from quite a long
time. It also has tied up with Paytm and UPI for cashless payment at its booths and hence
showing it is technologically updated.

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SWOT Analysis

1. A well-recognized brand name

2. Popular subsidiary brands like Dhara, Safal, b-Activ, etc.
3.A wide variety of products like milk, dairy products, fruits, vegetables,
groceries, edible oil, beverages, frozen food, etc.
4. It is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified
company
5. An employee strength of 3000 people
6.Strong and efficient supply chain network
7.Procurement of milk from co-operative dairies and vegetables from farmers,
providing them with fair prices
8.Technological advancement
Strengths 9.Popular for its quality and affordable price

1.Limited number of Mother Dairy and Safal outlets

2.Difficult to maintain competitive pricing
Weaknesses 3.Vegetables and milk products are perishable

1.Continuous demand of dairy products and other products by Mother Dairy

2.Open more number of Mother Dairy outlets
3.Market and advertise the products
Opportunities 4.Increase its market share by expansion in untapped markets

1.Strong marketing muscle by competitors

2.Unstable economic condition in India
Threats 3.Other competitor brands

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