Delhi Milk Scheme

A STUDY ON ISSUES BEHIND LOW SALES OF DMS DAIRY PRODUCT IN WEST & SOUTH DELHI

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

ANAND AGRICULTURAL UNIVERSITY

ANAND-388110

Advisor: Industrial Guide:

Dr. M.R.Prajapati Dr. B.S. Beniwal

(GEN. MANAGER)

Presented By: Ashish Jaint

Reg. No.- 04-2283-2014 1

LIST OF CONTENTS

1. DAIRY INDUSTRY IN INDIA

- INTRODUCTION

2 COMPANY PROFILE

3 OBJECTIVES

4 RESEARCH METHODOLOGY

5 RESULT & DISCUSSION

6 CONCLUSION

7 SUGGESTIONS

8 REFRENCES

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DAIRY INDUSTRY IN INDIA

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INTRODUCTION

India is the worlds largest Milk Producer accounting for about 20% of

the global Milk production and is also the world’s largest consumer base

of dairy products.

Milk production in India has come a long way over years from a low

volume of 17 million tonnes in 1951 to around 133 million tonnes in

2012-2013 and is the largest producer of milk in the world.

The annual milk production is 132.4 million metric tones.

The domestic Dairy Industry is expected to touch milk output of 190

million tones and a turnover of $100 billion by 2015.

The per Capita Milk availability is 290 grams per day.

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INTRODUCTION

More than 13 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their product to one of 177 milk producers' cooperative unions who in turn are supported by 22 state cooperative.

India has grown by around 3 million MT per annum till 2007 and requires growing at 5 million MT per day so as to meet the ambitious target of around 170 million MT by 2020.

• Growing at about 10 per cent annually, the Indian dairy industry is predominantly controlled by the unorganized sector which accounts for nearly 85 per cent.

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PRODUCTION OF MILK AND AVAILABILITY IN INDIA

Year Production(Million Tonnes) Per capita Availability (gms/day)

2001-02 84.4 225

2002-03 86.2 230

2003-04 88.1 231

2004-05 92.5 223

2005-06 97.1 241

2006-07 102.6 251

2007-08 107.9 260

2008-09 112.2 266

2009-10 116.4 273

2010-11 121.8 281

2011-12 127.9 289

2012-13 133 290

Source: NDDB 6

COMPANY PROFILE

• Delhi Milk Scheme is a subordinate office of Ministry of Agriculture, Department of

Animal Husbandry, Dairying and Fisheries.

• Its Headquarter and plant are located at shadipur, west Patel nagar, Delhi.

• It was commissioned on Nov 01, 1959 by the then Hon’ble President of India,

Dr.Rajendra Prasad with the primary objective of supplying wholesome milk to citizens of

Delhi at reasonable prices, as well as for providing remunerative prices to milk producers.

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COMPANY PROFILE

Delhi Milk Scheme has been mainly procuring raw/fresh milk from the State Dairy Federations of the neighboring States and some quantity of milk from the Co-operative Societies to augment the supplies.

DMS has a network of over 1101 outlets (including All Day Milk Stalls). The milk booths are allotted to and manned by Ex-servicemen/ retired Govt.

servants, physically handicapped, widows, unemployed persons. The DMS also supplies milk to about 174 institutions such as Hospitals,

Government Canteens, Hostels and Defence Units etc.   With a number of varieties of dairy products as well as good quality, DMS is

continuously facing loss. Though the deficit came down from Rs.24.15 Crore in 2009-10 to Rs.8.99 Crore in 2010-11, it increased to Rs.28.26 Crore in 2011-12 due to lesser procurement of raw milk and higher purchase price paid for Skimmed Milk Powder &  raw milk etc. Further, during the financial year 2012-13 the deficit has come down to Rs.4.66 Crore. It shows a clear picture of effective efforts done by the former GM, Dr. Beniwal. But still, DMS is not achieving what it stands for.

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PERFORMANCE OF “DELHI MILK SCHEME”

Source: Ministry of agriculture, Govt. of India

year Milk sale (lakh litre)

2008-2009 1371.72

2000-2010 1332.77

2011-2012 1123.62

2012-2013 ( Upto Dec. 2012)

843.8

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OBJECTIVES

• To know the preferences of consumers with respect to dairy products and dairy Brands.

• To know the factors behind low sales of DMS.

• To know the satisfaction factors of DMS consumers.

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RESEARCH METHODOLOGY

Source of Data Primary data: Primary data were collected from consumers through using

questionnaires. Secondary data: were collected from internet, different magazines, newspapers,

journals and annual reports. Survey approach: Sample survey Sampling Method: Non probability sampling Sampling technique: Convenient Sampling Sampling unit: consumers were selected purposively who drink milk. Sample size: 100 consumers Area of survey: West Delhi (50) and South Delhi (50). Research instrument: Structured questionnaire Analytical Tools: tabular analysis and graphical presentations were used. Limitation of the study

• 1. Analysis was purely based on the responses of respondents.

• 2. There was limited time for the collection of data for study.11

RESULT AND DISCUSSION

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BASIC INFORMATION OF CONSUMERS

13

AGE OF CONSUMERS

14

FREQUENCY OF DRINKING MILK

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OBJECTIVE -1

- Preferences of consumers with respect to dairy products and dairy brands.

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PREFRENCE OF MILK PRODUCTS

17

PREFRENCE OF MILK BRAND

18

 PLACE OF PURCHASING MILK PRODUCTS

19

SOURCES OF INFORMATION REGARDING MILK BRANDS

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 FACTORS AFFECTING CHOICE OF MILK BRAND

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OBJECTIVE - 2

- Factors behind low sales of DMS dairy products

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BRAND AWARENESS (DMS)

23

SOURCES FROM WHICH COME TO KNOW ABOUT DMS

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 RATINGS TO DMS PRODUCT ( QUALITY)

25

RATINGS TO DMS PRODUCT ( TASTE)

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RATINGS TO DMS PRODUCT( PRICE )

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RATINGS TO DMS PRODUCT ( AVAILABILITY ON TIME )

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RATINGS TO DMS PRODUCT( BEHAVIOR OF BOOTH HOLDERS)

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RATINGS TO DMS PRODUCT (PACKAGING ATTRACTION)

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THINK ABOUT DMS PRODUCT ( ACCESSIBILITY )

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WHEN DMS INCREASES PRICE

32

SATISFIED WITH DMS PRODUCTS

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FACTORS FOR SHIFTING TO ANOTHER DAIRY BRAND

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REASONS FOR NOT USING DMS PRODUCTS

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OBJECTIVE - 3

- Satisfaction factors of DMS consumers

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REASONS OF SATISFACTION

37

WHEN GO FOR PURCHASING DMS PRODUCTS

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CONCLUSION

• AMUL and mother dairy are leading brands in this region following that is DMS. Only few consumers go for purchasing loose milk or any other brand. It is also observed that half of the consumers purchase milk products from retailer shop, following that is from booths.

• It is observed, that most of the consumers know about DMS and they get to know about DMS from their friends or relatives and word of mouth. Most of the consumers get information regarding other milk product through advertisement.

• It is observed that DMS stands good in term of its product’s quality and taste.

• Availability of DMS products is a major issue, because products are not easily available to consumers.

• During the study, it is observed that most of the consumers don’t respond to price increase of DMS, they go on purchasing it’s products, whereas some of them change the type of milk they purchase. It shows their loyalty towards DMS.

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CONCLUSION

It is observed, that those who are not using DMS’s products are unaware about DMS. DMS’s products are not accessible to them and are not easily available. These consumers will go for DMS if products are easily available and at a reliable price.

From the personal interview of booth holders, it is observed that booth holders are satisfied with DMS and they are very much interested in distribution of DMS products. Though, the margin they are getting is low as compared to other dairy brands.

Ghee is demanded by most of the consumers, following that is toned milk and sweet dahi. It is observed, that all products are not available on DMS’s booths.

It is also observed that those who are loyal to DMS, they wait for the availability of product rather than shifting towards another milk brand.

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SUGGESTIONS

• DMS is advised to think upon its marketing strategies because DMS is not known to many consumers in this region. A strong marketing strategy is required to aware the consumers about DMS and its products.

• Ghee is the most demanded product of DMS among the consumers but it is not available to the consumers, because of short supply. DMS should make it available to the booths twice in a day to avoid non-availability to the consumers and increase sales.

• As it is observed, that most of the consumers are purchasing milk products from retailer’s shop, DMS should supply its products to retailers also. The results can be positive and can increase DMS’s market share.

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SUGGESTIONS

• It is suggested to renovate the booths because their condition is pathetic. It is advised to make the booths hygienic.

• There should be a list of DMS’s products and the name of DMS is written properly on the booths.

• Moreover, the quality and taste of DMS are leading above all milk brands in west and south Delhi. The required thing is to make it available to the citizens of Delhi and grab the market share from other competitive brands.

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REFERENCES

• Department of Animal Husbandry Annual Report 2013-2014, Dairying & Fisheries; Ministry of Agriculture, Government of India, New Delhi. pp-41-54

• Dhanabalan. M. (2009), “Productive Efficiency of Milk Production In Tamil Nadu”, Indian Journal of Marketing, Volume XXXIX, Number 12, P-21.

• K.G. and Banerjee G.D. (2006), “Opportunities and Challenges in The Indian Dairy Industry”, Technological Change, Issue 9, Pp.24-26

• Kumar Rajeev and Prabhakar Raj, opportunities and challenges in indian dairy industry supply chain: a literature review, Volume 2, Number 4, October – December’ 2013

• Mandeep Singh and Joshi.A.S.(2008), “Economic Analysis of Crop Production and Dairy Farming on Marginal and Small Farms in Punjab” Agricultural Economics Research Review, Vol. 21, Issue: 2, P-30.

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REFERENCES

• Radha Krishnan, Nigam.S. and Shantanu Kumar (2008), “Contribution of livestock in Indian Scenario”, Agricultural Situation in India, Issue 1, April, Pp. 25-28.

• Waghmare P.R. and Hedgire D.N. (2007), “Econometric analysis of integrated dairy development Programme in Parbhani District”, Agricultural Situation in India, Issue 3, Pp. 97-101.

• http://www.dairyuniverseindia.com/Marketdate.html (Accessed on 17/8/2014)

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THANK YOU!!

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