Summer internship PROJECT As partial fulfilment of requirements for the award of Post Graduate Diploma in Business Management Report on Identifying factors behind decreasing market share and study of consumer behaviour Submitted to :- Prof. R.J.Masilamani Submitted by :- Arpita Gupta PGDM 09DM024
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Summer internship
PROJECT As partial fulfilment of requirements for the award of
Post Graduate Diploma in Business Management
Report on Identifying factors behind decreasing
market share and study of consumer behaviour
Submitted to :-
Prof. R.J.Masilamani
Submitted by :-
Arpita Gupta
PGDM
09DM024
Summer Internship Report, PGDM 09-11 | 1
CERTIFICATE
This is to certify that Miss. Arpita Gupta, has completed her summer internship
at Mother Dairy, and has submitted this project report entitled Identifying
factors behind decreasing market share and a study of consumer behaviour
towards partial fulfilment of the requirements for the award of the Post
Graduate Diploma in Business Management .
This Report is the result of her own work and to the best of my knowledge no
part of it has earlier comprised any other report, monograph, dissertation or
book. This project was carried out under my overall supervision.
Date:
Place:
----------------------------------
Internal Faculty Guide
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ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the
project would be incomplete without the mention of the people who made it
possible.
I would like to take the opportunity to thank and express my deep sense of
gratitude to my corporate mentor Mr. Dhiman Sen and my faculty mentor Prof.
R.J. Masilamani. I am greatly indebted to both of them for providing their
valuable guidance at all stages of the study, their advice, constructive
suggestions, positive and supportive attitude and continuous encouragement,
without which it would have not been possible to complete the project.
I would also like to thank Mr. Amar Majumdar (Senior Marketing asst.) who in
spite of busy schedule has co-operated with me continuously and indeed, his
valuable contribution and guidance have been certainly indispensable for my
project work..
I am thankful to Mr.K.P.Boral for giving me the opportunity to work with
Mother dairy and learn.
I owe my wholehearted thanks and appreciation to the entire staff of the
company for their cooperation and assistance during the course of my project.
I hope that I can build upon the experience and knowledge that I have gained
and make a valuable contribution towards this industry in coming future.
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TABLE OF CONTENT
Sl No. Topic Pg No.
1 Executive summary 4
2 Introduction :
Need of the study
Objective of the study
5
3 Organisational Background 7
4
Literature Review :
Current scenario
Supply chain management
Distribution channels
Processing
Quality control
14
5 Competitor Analysis 19
6 Study of distributors and retailers 23
7 Research methodology 35
8 Conclusion 43
9 Limitations 44
10 Recommendations 45
11 References 47
12 Annexure 48
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EXECUTIVE SUMMARY
The project was started on 8th of April after knowing all the relevant
information about the different milk varieties available, under the guidance of
Mr.Dhiman Sen (E.O.Officer).The first part of my project involves the study of
distributors allocated to me Identification of their problem areas and helping
them in order to increase sale. For this I used the method of personal interviews
and questionnaires. At the same time , they were being made aware of the
incremental scheme of Mother dairy for the distributors. Along with the
distributors a study of retailers was conducted to better understand the
grievances and identify the gaps. For this I visited around 50 outlets in the area
,ie, North and East Kolkata and spoke to them. I was also supposed to find out
new retail outlets and convince them to sell Mother dairy milk by showing them
the opportunity of getting attached with a big FMCG brand like Mother dairy
and increase the customer base. Despite of summer and low demand I was
successful in persuading people and a number of new retail sale points were
developed and the sale was increased. The second part of my internship was the
study of consumer attitude towards Mother dairy milk or more specifically the
factors affecting the decision of purchase of milk. For this a sample of 200
consumers was taken and a factor analysis was carried on to find the decision
making factors.
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INTRODUCTION
Need of the study
The project was an attempt to know the reasons behind low sale of milk of
Mother dairy in Kolkata. 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 ,Metro dairy , Red Cow and others.
There is a need to revamp the company and position it all over again in the mind
of the consumers. In doing so firstly the grievances of the distributors and the
retailers were required to be solved in order to encourage them for push sales.
Secondly a study of consumers decision making factors is required in order to
understand their priorities which can be worked upon. For this purpose a
research is to undertaken to find out the market scenario.
With the help of the responses given by the consumers and data analysis, the
company will be able to understand its strengths, weakness , opportunities and
threats. The survey report submitted by me will assist the company to take right
decisions to increase the turnover and market share.
Objective of the study
The objectives of the study are the following :-
1. The main objective of this project is to probe the reasons for decreasing
market share of Mother Dairy and to find out the measures that can be
adopted to increase the sales
2. To study the distribution channel in the retail chain of Mother Dairy
3. To identify the issues related to Mother Dairy retailers and distributors
4. To get the retailers feedback from specific regions
5. To add up new retailers in the area
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6. To study Mother Dairy positioning in the mind of the consumers vis-à-
vis competitors
7. To find out the factors that affect consumers decision to purchase milk
8. To find out short term problem in every sub-region that can be sorted out
9. Suggesting viable recommendations to be implemented in the area
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ORGANISATIONAL BACKGROUND
Mother Dairy was set up in 1974. Mother dairy Kolkata is a government of
West Bengal project, was started under Operation Flood II of National Dairy
Development Board . It was set up initially to cater to the demand of the
Kolkata urban agglomeration spread over the Kolkata Metropolitan area, later it
reached out to the consumers of other districts also. The commissioning of the
Dairy started in July 1978. Initially, the management of Mother Dairy was
looked after by the National Dairy Development Board . On 24th March 1982 ,
the then Honourable Chief Minister Shri Jyoti Basu dedicated Mother Dairy
Calcutta to the rural milk producers and urban milk consumers of West Bengal.
Mother Dairy is an IS/ISO 9002, IS 15000 HACCP and IS 14001 EMS certified
organization. Moreover, its Quality Assurance Laboratory is certified by
National Accreditation Board for Testing and Calibration Laboratory (NABL)-
Department of Science and Technology, Government of India.
At Mother dairy milk is produced by mixing raw milk, white butter and skim
milk powder. Skim milk powder is made by mixing cow and buffalo milk
obtained during breeding seasons through various co-operatives in West Bengal
and converting them into powder in order to store for a longer period. Raw milk
is obtained on a daily basis from the co-operatives. It is then stored in chilling
plants and transferred to the Mother dairy factory through insulated tanks.
While raw milk is stored in the cold chain at 2°C skim milk powder and white
butter is stored under normal temperature. This milk is then pasteurised at 78° C
in order to make it free from germs and then it is homogenised.
Mother dairy is presently selling Milk & Milk Products like Khatta Doi ,
Flavoured Yoghurt, Plain yoghurt, Paneer, Ice cream and Packaged Drinking
Water. The entire product mix is shown below :
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Each of the product is further discussed in details :-
MILK
Varieties in Milk :
Sl.No Product Fat
content
Solid not Fat
(SNF)
Water
1 Doble Toned Milk 1.5% 9.0% 89.5%
2 Toned Milk 3.0% 8.5% 88.5%
3 Full Cream Milk 6% 9% 75%
4 Cow Milk 3.5% 8.5% 88%
5 Skimmed Milk 0.5% 9.5% 90%
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Double toned Milk
It‟s fresh it‟s pure it‟s co-operative milk with assurance of Mother dairy. Mother
dairy double toned milk - tasty and nutritious with low fat content. A dream
come true , especially for all the calorie conscious people who love the taste of
milk but are worried of its cream content. Mother dairy double toned milk
complements your daily workout perfectly. So , to maintain complete harmony
between your body and soul you‟ve got to “fresh and pure”.
Toned Milk
Mother dairy bulk vended token milk – healthy and tasty to the last drop.
Homogenised to evenly distribute the cream content , it‟s thicker and a lot easier
to digest. It‟s the magic of homogenisation that makes your kheer thicker and
shake frothier. Fortified with Vitamin A , which not only is good for your
complexion but also helps prevent night blindness. What‟s more , it gives your
children the energy to stay active through work and play
Full Cream Milk
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Mother dairy full cream milk - wholesome and healthy. Packed with energy and
nutrition thats essential for growing kids. It makes them stronger from within
and keeps them active and healthy. So before they go to bed , and after they rise
give them Mother dairy full cream milk to keep them healthy and wise and to
see them „grow faster‟.
Cow Milk
Mother dairy‟s cow milk has a yellowish tinge due to presence of an element
called carotene and is a good source of Vitamin –A,B-12 and Vitamin D. Cow
milk is considered to be easily digestible. Whether poured on breakfast cereal or
enjoyed alone as a cold glass of milk, this can be enjoyed year around.
Skimmed Milk
In skimmed milk , as much of the fat as is possible is removed , yet it continues
to supply all the nutrients that full cream milk does. The young at heart would
particularly find it a tempting option. So its the best option to remain energetic
and young.
Margin (per ltrs) :
Sl.No Product Distributor’s
Price
Retailer’s
Price
MRP
1 Doble Toned Milk 19.65 20.00 21.00
2 Toned Milk 20.75 21.10 22.00
3 Full Cream Milk 25.45 25.80 27.00
4 Cow Milk 22.65 23.00 24.00
5 Skimmed Milk 17.65 18.00 19.00
Shelf Life : 2 days under 4°C
Average Daily Sales (in ltrs) : 335000 lakh
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Pattern of sale :
Distribution Network :
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OTHER PRODUCTS
Sl.No Product
1 Mishti Doi
2 Plain Yoghurt
3 Favoured Yoghurt
a) Vanilla
b) Green Mango
c) Chocolate
d) Pineapple
4 Paneer
5 Ice-cream
6 Packaged Drinking
Water
Mishti Doi Plain Yoghurt Flavoured Yoghurt
Paneer Drinking Water
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Margin (per 100 gms) :
Sl.No Product Distributor’s
Price
Retailer’s
Price
MRP
1 Mishti Doi 6.50 7.20 8.00
2 Plain Yoghurt 6.50 7.20 8.00
3 Favoured Yoghurt
a) Vanilla
b) Green Mango
c) Chocolate
d) Pineapple
6.50
7.20
8.00
4 Paneer 17.50 18.50 20.00
Shelf Life :
Yoghurt : 8 days under 4°C
Ice-cream : 1 year under -18°C
Drinking Water : 9 months under normal conditions
Average Daily Sales :
Yoghurt : 3600 Kgs
Paneer : 800 Kgs
Ice-cream : 1200 kgs
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Distribution Network :
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LITERATURE REVIEW
CURRENT SCENARIO
Mother dairy has a market share of around 33 % in the branded sector in West
Bengal where it sells 3.4 lakh litres of milk daily on an average and undertakes
its marketing operations through around 51 distributors and around 600 retailers
in Kolkata itself. It has a huge advantage over its competitors as it is the only
player when it comes to sale of loose milk through token. Before the entrance of
competitors like Amul ,sale of loose milk through Mother Dairy booths was
around 35 % of the entire sale in branded segment , when Mother dairy was the
only player in the market. However since last five years the sale is continuously
declining and presently it is just 8-9 %.
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Supply Chain Management
1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk
from dairy co-operatives and producer institutions. Milk is received from farmer
cooperatives through insulated tankers at 2°C 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 centres. After collection the same tankers are
utilized for the delivery of the processed milk to the distributors. Mother Dairy
has about 51 Distributors in the city of Kolkata. Each of these LAD‟s(Local
area distributor ) place 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 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.
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Distribution Channels:
a) Token Distribution: Also, termed as “Lohe ki bhains” (metal buffalo), is an
automated milk vending machine.
b) Distributors: The packaged milk is distributed via the distributor network
throughout the city.
Processing
At mother 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, Standardisation 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
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Finally, Pasteurization, which kills all pathogenic bacteria present in the milk
and thus making it safe for consumption.
Quality Control
Stringent quality control methodologies are employed in Mother 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 Mother Dairy plant is
ensured to have a temperature of not more than 4°C and is subjected to 15
product and quality checks.
c) The Milk quality is checked repeatedly after each processing phase and the
temperature is judiciously maintained less than 4°C 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
4°C.
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.
Out of the total production about 9% goes directly to the institutions ,23% is the
loose token milk and the rest is distributed through LAD‟s.
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COMPETITOR ANALYSIS
AMUL
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