sip amul ranchi by abhishek & vipul (cimp)

A REPORT ON

POTENTIAL OF AMUL POUCH MILK IN RANCHI, JAMSHEDPUR & DHANBAD

A REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF PGDBA DEGREE PROGRAMME

SUBMITTED TO:

MR. MANOJ PRABHAKAR

ASST. SALES MANAGER

RANCHI DEPOT, JHARKHAND

SUBMITTED BY:

ABHISHEK KUMAR (PGDBA/01/02)

VIPUL KUMAR (PGDBA/01/49)

CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA

June 12, 2008

CERTIFICATE OF APPROVAL

Recommended that the project entitled “Market potential & launching strategy of AMUL Pouch

milk in Ranchi, Jamshedpur & Dhanbad” is prepared by Mr. Abhishek Kumar, Enrollment no

PGDBA/01/02 and Mr. Vipul Kumar, Enrollment no PGDBA/01/49, under my supervision and

guidance is accepted as fulfilling, this part of the requirement for the summer internship

program at GCMMF Ltd, Ranchi.

To best of my knowledge, the content of this report did not form a basis of any previous report

by anyone else. This is a completely bonafide work.

The persons are fit and proper for the award of successful completion of the summer internship

program.

Mr. Manoj Prabhakar

Asst. Sales Manager, GCMMF Ltd.

Ranchi Depot, Jharkhand

COVER LETTER

To

Mr. Manoj Prabhakar

Asst. Manager (Sales)

Ranchi depot, Jharkhand

Sub: - Submission of marketing research report on Potential of AMUL Pouch Milk.

Dear Sir,

With great zeal and satisfaction we would like to present you the much awaited report on

Potential of AMUL pouch milk in Ranchi, Jamshedpur & Dhanbad and launching strategy for

AMUL pouch milk in all the above mentioned cities of Jharkhand.

We thank you for giving us an opportunity to conduct a research on such a challenging and

relevant topic as it is related with the changing pulse of Indian milk consumer behavior

provided us valuable marketing insights. In fact, while conducting the survey we came across

some very interesting facts about consumer inclination towards different brands of milk in

different cities.

We hope this report will enable you to formulate a winning strategy in these competitive

markets and will provide you a sustainable competitive edge.

Thanking You

Best Regards

Abhishek Kumar

Vipul Kumar

ACKNOWLEDGEMENT

First and foremost we are greatly indebted to our guide Mr. Manoj Prabhakar, Asst. sales

manager, GCMMF Ltd, Ranchi Depot for taking time to guide us and supervise the project.

Mr. Manoj Prabhakar always acted as a source of inspiration, motivation and encouragement.

His invaluable guidance, supervision, and continuous support have steered our project to the

present stage of completion.

We are highly indebted to Mr. Santosh Kumar and Mr. Pushti for providing many valuable

prospective of the project thereby opening many new vistas which made the project to be

complete reflection of the work done by us. We are also indebted to Mr. Abhishek Kumar and

Mr. Sumojit Das who have found time from their busy schedule and shared the load of work

and helped us out to perform well in activities.

We would like to thank many of the anonymous officials of GCMMF limited, friends, batch

mates and research respondents who have always provided critical comments, and insightful

observations.

We would also like to extend our gratitude towards Mr. Shivendra Singh, Marketing manager,

Jamshedpur Dairy for sharing his market insights and strategies which helped us to understand

the efficacies of Milk marketing.

We would also like to extend our Special thanks to Dr. V Mukunda Das, Director CIMP and the

entire faculty member of Chandragupt institute of management Patna for their guidance and

invaluable suggestions which we have gratefully incorporated in our project.

Abhishek Kumar (PGDBA/01/02)

Vipul Kumar (PGDBA/01/49)

EXECUTIVE SUMMARY

Prevalent traditional dairy farming system in Jharkhand has made milk supply in the state to

mainly depend up on the neighboring states and traditional milkmen. The demand for pouch

milk is growing with increase in awareness among the consumers in the state. There are many

players who supply pouch milk in the state. It includes Sudha (market leader with presence in

all three markets) and other local players like Nand, Shyam, and Medha etc. All of them fulfill

the demand either through procuring milk from neighboring states or through SMP.

Sudha has got a very strong brand name and distribution system in the state. It has got a very

high proportion of packaged milk market share; one of the major reasons for it is the absence

of any strong competitor in the market. Sudha is a state co – operative and had the support of

state government in unified Bihar which has helped them establish a strong chain of whole day

milk parlors across the state.

Consumer demand for pouch milk exceeds the supply in all three cities. Packaged milk of all the

brands get sold on same retail price despite being hugely different in quality. There is

continuous irregularity in milk supply and quality of milk keeps varying across the year. There

are instances in the past years when only one variant (TM) was available in the market and

customers were compelled to consume whatever was available in the market. It shows a

market void exists for a player which can consistent supply good quality milk and there would

be wide consumer acceptability if a trusted brand like Amul enters into the competition.

Amul should focus on generating market awareness through pre launching as well as post

launching promotional campaigns. Providing better visibility to its retail outlets will provide

Amul a definite edge over other competitors. Amul should also provide free testing facility at

retail outlets to gain the consumer trust; strong brand image will also help Amul in gaining

consumer trust.

Continuous supply of good quality milk at reasonable prices is the customer need and Amul will

achieve significant market share in short span of time if it can fulfill the needs of the milk

consumers.

Table of Contents

SN CONTENTS PAGE NO 1 Certificate of Approval 3

2 Acknowledgements 4

3 Cover Letter 5

4 Introduction 11

5 Background 12

5.1 Scope of the Study 13

5.2 Research Objectives 13

5.3 Methodology of the Research 14

6 Overview of Jharkhand 16

6.1 Jamshedpur 16

6.2 Ranchi 18 6.3 Dhanbad 20 7 Market Overview 21

8 Competitor Analysis 23

9 Profile of Major Players 26

9.1 Sudha Jamshedpur Plant 26

9.2 Nand 29

9.3 Shyam 31

9.4 Amrit 32 9.5 Dairy fresh 33 9.6 Sudha Bokaro plant 34 9.7 Medha 36 9.8 Radha 37 9.9 Amul 37 9.10 Sudha Ranchi plant 38 9.11 Loose Milk market 39 9.12 SWOT Analysis of Sudha 42 9.13 SWOT Analysis of AMUL 43 9.14 Target segment of major players 44 10 Market Potential In cities 45

11 Results of market survey 49

11.1 Factor analysis 58

11.2 Insights of Market Survey 60

12 Launch Strategy of Amul Pouch Milk 61

12.1 Product Variants 63

12.2 The Process Chart 63

12.3 Launch Targets 64

12.4 Distribution diagram 66

12.5 Zone division 67

12.6 Price mechanism 67

12.7 Logistics 67

12.8 Sales and Trade Promotion 69

13 Limitations of the Study 71

14 Annexure-1 72

14.1 Final Questionnaire for Consumer Survey 72

14.2 Final Questionnaire for Retailer Survey 75

15 Annexure-2 78

15.1 Sales figure of Sudha 78

15.2 Milk market in major cities 78

15.3 Details of distributors 78

15.4 Brief summary of three markets 79

16 References 80

List of Tables

SN CONTENTS PAGE NO

1 Major players and their available variants 23

2 Major players and their market presence 24

3 Margin Structure of Sudha 28

4 Margin Structure of Nand 30

5 Margin Structure of Amrit 32

6 Margin Structure of Dairy Fresh 33

7 Margin Structure of Medha 36

8 Margin Structure of Radha 37

9 Margin Structure of Amul 37

10 Target segment of each player 44

11 Market potential of Ranchi 46

12 Market potential of Jamshedpur 47

13 Market potential of Dhanbad 46

14 Size of opportunity 48

15 Product variants, pack sizes and launching time 62

16 Proposed Price Structure of Amul 66

17 Budget for launching 69

18 Sales and trade promotion budget 70

List of Charts

SN CONTENTS PAGE NO

1 Occupational break up of Ranchi 19

2 Occupational break up of Jamshedpur 17

3 Occupational break up of Dhanbad 21

4 Market share of players in Jamshedpur 34

5 Market share of players in Dhanbad 38

6 Market share of players in Ranchi 39

7 Average family sizes in cities 49

8 Age group distribution in Ranchi 50

9 Age group distribution in Jamshedpur 51

10 Age group distribution in Dhanbad 51

11 Purchasing preference of consumers 52

12 Timing of milk purchase 53

13 Variant preference in three cities 54

14 Factors affecting milk purchasing decision 55

15 Factors of pouch milk purchase 57

16 Proposed distribution diagram 65

List of Maps

SN CONTENTS PAGE NO

1 Map of Jamshedpur 16

2 Map of Ranchi 18

3 Map of Dhanbad 20

4 Map of Jharkhand 67

LIST OF ABBREVIATION

I. WM- Whole MILK

II. SM – Standard Milk

III. TM- Tonned Milk

IV. DTM- Double tonned Milk

V. APO- Authorized parlour outlet

VI. ADA- Authorized Distributing agent

4. INTRODUCTION

Milk is a unique marketing product due to its very perishable nature, unique sales timing, need

of a very strong distribution network and its sensitive usability. It is a complete food and due to

its high nutritional value is consumed by people of all ages and especially children. Milk is highly

attached with Indian’s emotional and religious values and cow is given equivalent status to

mother just because it provides milk to human beings. Milk is provided to children in place of

mother’s milk .So, it’s clear that people’s perception about the quality of a specific brand of

milk becomes a very influential factor in the sales ability of the brand. This uniqueness of an

unquantifiable influence of people’s perception of brand and quality on the sales makes milk

marketing a real challenging marketing job.

Milk is a hand to mouth product and a significant proportion of it is consumed directly in the

households. Other consumption forms like tea, coffee, curd etc. are also almost direct

consumption forms. So, people remain very sensitive about the purity of the milk they are

consuming.

Consumers, in general, quantify the quality of a product by looking, touching, tasting and

smelling it. Milk being a liquid and whitish in colour has high chances of getting adulterated.

There are high chances of milk getting germ infected. Moreover, there are differences in taste

and smell in the milk available in the market. All these factors combined make milk a product

for which quality and purity of the milk consumed is mostly dependent on the trust on the

supplier.

Other than people’s perception of quality of a brand, availability is the second most important

factor in marketing of a particular milk brand. As milk is more a commodity than a product,

there are not many differentiating factors between different brands and switching cost is really

low for consumers and therefore, brand loyalty is really very less. So, the logistic setup

supporting the milk marketing operations has to be in place and any delay in the system would

lead the consumers to shift to an alternate brand which guarantees regular supply.

Milk market at every place has its own dynamics and traits, which are closely related to

demographic profile, cultural outlook and habits of the people staying there. So, the success of

a particular milk brand in a specific region will depend upon the fact that how specifically it

understands the demands of the specific markets and cater to it.

5. BACKGROUND

Milk being a commodity of daily necessaries has its own peculiarities and dynamics. It’s a

commodity which is needed to be supplied daily at correct time and place. Sudha has been the

major supplier of milk in Jharkhand for the last 30 years and created consumer awareness

about pouch milk in different milk markets of Jharkhand. Even today, Sudha is the sole flag

bearer of quality pouch milk in Jharkhand with rest of open space filled by local players

Formation of Jharkhand as a separate state and increase in consumer awareness has made it

the next big marketing destination of an organisation like AMUL for its pouch milk. Amul has

already touched this market segment as the tetra packs of AMUL milk is already available in the

market but it recognises the fact that the target segment of tetra packs are different from

target segment of pouch milk at least for the near future. Now, Amul wants to find out that is

there sufficient marketing opportunities in the milk markets of Jharkhand and if available, what

could be the proper launching and marketing strategy which can touch the consumer base and

can cater to the maximum consumer base.

5.1 SCOPE OF THE STUDY

The study is aimed at determining the market potential of major milk markets of Jharkhand. An

analysis of major competitor’s marketing strategies will be done to properly design an efficient

launching strategy for AMUL pouch milk. The study is confined to the geographical limits of

Ranchi, Jamshedpur, Dhanbad and Bokaro. The study will focus on analyzing competitor’s

strengths and weaknesses alongside identifying unfulfilled needs and wants of consumers.

5.2 RESEARCH OBJECTIVES

The major research objectives of the study can be underlined as below:

1) To estimate the total demand of liquid milk in Ranchi, Jamshedpur and Dhanbad

markets.

2) To find out market shares of major players of these markets and their marketing

strategy.

3) To understand the distribution networks of the major competitors and find out

bottlenecks in their process.

4) To understand the consumer’s preference for the various categories of the liquid milk

(Whole milk, standardized milk, toned milk, double toned milk).

5) To understand the consumers perception about pouch milk in respect of loose milk.

6) To weigh the brand image of AMUL in the cities under study.

7) To design a proper launching strategy for AMUL pouch milk in these markets.

5.3 METODOLOGY OF THE RESEARCH

EXPLORATORY RESEARCH:

In order to get an overview of fresh milk market and its dynamics, preliminary research has

been carried out in the markets of Ranchi. In broad terms, our methodology focused on

understanding the market both on macro and micro level. The preliminary exercise included

interviews with distributors and retailers of loose milk as well as those of present competitors.

A number of consumer interviews were also conducted. This helped us in understanding the

existing market scenario and further it also helped in estimating the demand of the surveyed

area. Keeping this knowledge as perspective, we designed questionnaire for the micro level

research. This questionnaire was pre tested on 20 consumers on whose feedback and

suggestions final questionnaire was designed.

SOURCES OF DATA:

As part of the study, both primary and secondary data were collected of qualitative and

quantitative in nature.

Primary sources:

For primary data collection we depended upon the questionnaire survey of household

consumers, retailers, distributors, the tea vendors and restaurants.

Secondary Sources of data:

Secondary data was collected from various sources to understand the demographic and

geographic context of the places under study. It also helped in collecting information regarding

competitor’s sales figures, plant capacity, mode of operation etc. Information was also

collected from census, other national surveys and newspapers.

SAMPLING TECHNIQUE

Cluster sampling was used for conducting survey of the target population. The target

population consists of the households, distributors, retailers, the tea vendors and restaurant

owners.

A sample of 100 people in case of house hold consumers, 60 retailers, 40 tea vendors and 20

restaurant owners in each milk market of Ranchi, Jamshedpur, Dhanbad and Bokaro was taken

for the purpose of survey.

After selecting an area as model region for the survey, non probabilistic random sampling was

used as the method of sampling for the survey.

6. OVERVIEW OF JHARKHAND

Jharkhand is a state which is rich in mineral resources. It provided certain industries an

incentive to set up their plants in the state resulting in some areas of Jharkhand evolved as

highly industrialized. Industrialization of some parts of the state has resulted in higher per

capita income, higher literacy rate and higher consumer expectation in those parts. Other areas

are mostly consisting of people from lower or lower middle income group. Like any other state

of India, majority of population are dependent on agriculture. Total population is a cultural mix

of native tribal people which consist of approximately 30 % of the total population and rest is

people largely from Bihar, Orissa and west Bengal.

6.1 JAMSHEDPUR

The Steel City, Jamshedpur is one of the industrially and economically prosperous cities of

Jharkhand. The geographical area of the city and its surroundings is about 100 Sq. Km. The city

is well connected with other major cities of neighboring states through road and railways. It is

around 130 Km away from the State capital Ranchi and 130 Km away from Dhanbad. It is 250

Km away from Kolkata by road and have regular connectivity through rail with the city. It takes

around 5 hours through rail route and around 7 hours by road (NH-33). There is a regular

movement of Products of TATA STEEL and TATA MOTORS on these road and rail routes.

Earlier Jamshedpur was a part of Singhbhum district. But after the rescheduling of district area

was done by the Jharkhand Government, Singhbhum has been divided into 3 districts. These

are East Singhbhum (District HQ - Jamshedpur), West Singhbhum (District HQ - Chaibasa) and

Saraikela – Rajkharsuan (District HQ - Saraikela). There are 4 major urban areas in Jamshedpur

which are Jamshedpur City (NAC), Jugsalai (Municipality), Mango (NAC) and Adityapur

(Municipality). Jamshedpur is 65 Km away from Chaibasa and 50 Km away from Saraikela.

The majority of the families (Almost 65%) residing in Jamshedpur are employees of TATA and its

7-8 subsidiary companies. There are around 1.5 Lac employees working in these companies. It

gives major boost to the economy of Jamshedpur as the people here have sufficient purchasing

power. Majority of people involved in service sector is one of the reasons of city being more

urbanized than other cities of Jharkhand.

The major residential and market areas of Jamshedpur are Mango, Burmamines, Bistupur,

Baridih, TELCO, Sidhgoda, Sonari, Kalka Nagar and Kadma

Out of the total population a major portion of the population are Bengalis. The major Bengali

residential areas are Kadma, Sonari, Parsudih, Sidhgoda, Baridih and TELCO. Similarly, major

Sikh residential areas are Burmamines, Refugee Colony, Sakchi, Bistupur and Cable Town.

65%

15%10%10%

OCCUPATIONAL BREAK UP OF JAMSHEDPUR

TATA

OTHER PRIVATE COMPANIES

GOVERNMENT

BUSINESS

6.2 RANCHI

Ranchi is a city of falls and lakes and is the administrative and educational hub of the state and

students from neighboring states also come here to study due to excellent educational

environment and climatic conditions. The city area is spread in a radius of 15 km, Ranchi Lake as

the centre. The total urban population is around 10.5 lacs which mainly consist of service class

people, businessmen, organized and unorganized labourers.

Muslims, Bengalis and Sikhs are majority of the population. Major Muslim areas are Hindpidi,

Azad basti, Dhurwa and Doranda. Major Bengali colonies are burdwan compound and Netaji

Nagar. Similiarly, Sikh families are majorly in P.P. compound and Ratu road.

As the occupational break up shows that the city is home for all kind of workers and service

class people which provide city the required purchasing power. The city is the centre point of all

kind of economical and political activities in the state. Due to this reason there is a large

number of people who come to the city for occupational reasons.

The city is well connected to Orissa, Bihar and West Bengal through road and rail network.

NH -33 passes through the heart of the city and joins it to West Bengal. Ranchi – Jamshedpur

road is a very high traffic zone due to all kind of economical activities as both cities are highly

industrialized.

12%

18%

15%

30% 25%

OCCUPATIONAL BREAK UP OF RANCHI

GOVERNMENT SERVICE

PUBLIC SECOTR

PRIVATE SECTOR (ORGANIZED)

PRIVATE SECTOR (UNORGANIZED)

BUSINESS

6.3 DHANBAD

Dhanbad city is strategically located with reference to Kolkata, Patna and Ranchi. The location

of the city has helped in establishment of industrial units manufacturing consumer goods,

engineering and plastic products. Haldia, the nearest port, is well connected with Dhanbad

through road and rail. Dhanbad and the surrounding towns are source of employment and

serve the entire region in terms of social and economic facilities. The city has abundant

mineral resources and is one of highest coal producing place in India. At present there are 112

coal mines operating in the district which totally produce 26.7MT of coal annually (total value

of Rs.7000 million). The coal production is expected to increase to 50MT in the next 10 years.

Given its resource base, the potential for growth in mining and mineral based industries is

immense and with the support of the State Government industrial activity is expected to

expand. It is estimated that the about 1.5 lac jobs are likely to be generated during the next ten

years. Mining and mineral activities continue to be major areas of focus. Chemical based

industries, Engineering and auto components, Power generation, Iron and steel, and steel

based industries are other sectors gaining importance.

Majority of population is dependent on the coal resources of Dhanbad and most of the people

are related with coal mining in one way or the other. Other significant proportion is engaged in

different businesses while usual service class people engaged in govt. service also reside in the

town. Major residential areas are Baghmara, Govindpur, Jharia, Nirsa, Tundi, Topchachi and

Hirapur. Majority of population are Muslims and Hindus.

7.1 MARKET OVERVIEW

Jharkhand is a milk deficit state. Traditionally, direct milk consumption is not in the

consumption culture of its native residents and the major demand of milk was generated by

people who have come from other neighboring states and settled here. So, milk production in

the state is negligible and the demand of milk in the state is traditionally served by procuring

milk from Bihar.

Ranchi, the capital city of the state is a growing market. Ranchi city is having total population

around 10.5 lacs and total household around 2.15 lacs. It is the second biggest milk market in

10%

55%

20%

15%

OCCUPATIONAL BREAK UP OF DHANBAD

GOVERNMENT SERVICE

BCCL/ COAL MINES

PRIVATE SECTOR

BUSINESS

state and due to rapid urbanization with 33% decadal population growth it is expanding and

developing more in its periphery. This provides a great opportunity to cater to this market.

Though the surrounding of city has thick green vegetation, favorable climatic condition and

sufficient manpower for animal husbandry but due to poor animal breed and improper training

of farmers, entire adjoining area is milk deficient.

Ranchi being capital of Jharkhand, is a hub of offices, both government and private. This has

resulted in a greater population being in the service class, which has considerably increased the

literacy rate of the city. Keeping this fact in mind, it is comparatively easier to generate

awareness about the hygiene and adulteration issue associated with the loose milk and it is

vindicated by the increasing number of household which are shifting to the pouch milk. This

fact is strengthened by the sales growth figures of market leader Sudha (Annexure-II).

Jamshedpur is a mature market in terms of the awareness of pouch milk. This can be seen that

here the pouch milk market is more than the loose milk market by a considerable high margin.

A major reason again is that Jamshedpur is a city of service class people who are employees of

TATA. By these statistics, it is understandable that the people in the city are well aware about

the loose milk and the related hygiene issues and have shifted to the pouch milk.

Dhanbad is more backward in comparison of other two cities in respect of awareness about

pouch milk and quality related issues. That is why; loose milk has a significant high market share

of existing market share. Local players have a more prominent presence in the market which

leads to the perception that people here are indifferent about the quality served by the pouch

milk suppliers.

Overall, Sudha is the market leader in all the three markets and it decides the rules of the game

in these markets. It has toughest of regulations among the players and provides the lowest

margins. Even after distribution inefficiencies the distributors and retailers are compelled to

stick with it. A major reason for it is the absence of a big player like AMUL which can challenge

Sudha in quality and distribution.

8. COMPETITOR ANALYSIS

The competitor analysis will be done under 4P framework. A comparison of plant capacities

with existing sales of major market players will be done. Their distribution strategy along with

their respective strengths and weaknesses will be done.

PRODUCTS:

Products variants are same throughout different pouch milk suppliers. All major players like

Sudha, Nand, and Shyam etc. are supplying same variants of milk. There is no major difference

in variants across the different players in the market, though some players are providing only a

specific variant of milk.

Major sales are of standardized and toned milk. Whole milk and double toned milk are not

made available by any of the major players. Reason according to the players is non – demand of

these variants. Interestingly, none of the players have done a focused promotion in the past to

induce demand for these variants nor they have any promotional strategy for promoting these

variants in the near future.

WM (fat -6%) SM (fat-4.5%) TM (fat-3%) DTM (fat-1.5%)

SUDHA - -

NAND - -

DAIRY FRESH - -

SHYAM - -

MEDHA - -

AMRIT - - -

RADHA - - -

Table: Major players and their available variants.

PLACE:

Sudha certainly has the competitive advantage of being a local player. It has its brand presence

in all the major markets and it is the most dominant player in all the markets which gives it the

advantage of a much stronger brand image. So, it captures the major chunk of new customers

who shift their preference from loose milk to pouch milk.

Sudha is the only player which has got its exclusive retail outlets among all the players which

provides it a better visibility among all the players. Being a state co-operative it had the support

of the former state govt. of Bihar but now the scenario has changed as Jharkhand has become a

separate state and Jharkhand is trying to establish a new co-operative with the brand name

“MEDHA”. With the backing of state govt., Medha has started its own procurement channel

and it has started to register its strong presence in Dhanbad.

All other players are private players and they did not have any established procurement

channel. Some players like Shyam have their own Khatal in the outskirt of the city from where

they get a fraction of total supply. They also procure milk from farmers who can come to their

processing plant and sell their milk. But these all players are largely dependent on SMP to fulfill

their quota of supply.

PLAYERS RANCHI JAMSHEDPUR DHANBAD

SUDHA

NAND -

DAIRY FRESH -

SHYAM -

MEDHA -

AMRIT -

RADHA - -

AMUL - -

Table: Major players and their market presence.

PRICE:

Price of all the players is almost the same for the available variants. The major difference is

pertinent in the distributor’s margins and retailer’s margin. Local players need to push their

products in the markets as there is no natural demand for their product due to lack of brand

awareness and brand image.

So, price mechanism and margins available is very important in the context of marketing

strategy adopted by the local players. It is noticeable that the margins provided by Sudha is

significantly lesser in comparison of other player as it has got the volume advantage over other

players. So, while Sudha is banking on the volumes it is supplying to the markets other players

are depending on higher margins they providing to the retailers and distributors.

PROMOTION:

None of the players have a properly designed promotion strategy. Even the market leader does

not have a uniformly designed promotional strategy in place. Sudha focuses mainly on

hoardings for its promotion. As there is no stiff competitor present in the market and there are

enough buyers available (actually they are facing problems in fulfilling the excessive demand),

they don’t see any need for a promotional strategy. Presence for a longer time period has

helped them in creating brand awareness and they have a real strong image in certain region. In

fact, Sudha is synonymous of pouch milk for a significant proportion of milk buyers.

Other players have opted for a second fiddle role for themselves and in place of giving

competition to Sudha they generally try to fill the supply gap created due to excessive demand.

Putting up promotional stalls at fare and festivals and distributing pamphlets is the most

prominent strategy followed by them.

9. PROFILE OF MAJOR PLAYERS:

PLAYERS FUNCTIONAL IN JAMSHEDPUR

9.1 SUDHA JAMSHEDPUR:

SN DETAILS DETAILS

1 Plant Gamharia, Jamshedpur

2 Products SM and TM

3 Installed Capacity 1 LLPD

4 Average Sale (per day) 0.95 LLLP

5 No of distributors 17

6 No. of exclusive outlets 49

7 Total no. of retail outlets 447

8 Total no. of zones in the city 11

Sudha is the market leader in terms of both penetration and volume. It has divided the city in

eleven zones which are Sonari, Kadma, Bistupur, Adityapur, Jugsalai, Burmamines, TELCO,

Sakchi, Agrico, Mango – I and Mango – II. Besides these there are certain satellite routes where

milk is supplied from Jamshedpur plant. These areas are Jamshedpur Outer, Ghatsila, Chaibasa,

,Saraikela, Kiriburu, Rairangpur (Orissa) and Balrampur.

The total milk supply to the City and its surrounding markets is around 85000 Litres and the

supply to the satellite markets is around 10000 Litres.

DISTRIBUTION CHANNEL – SUDHA JAMSHEDPUR

Semi-processed milk is transported from 4 places of North Bihar to the Jamshedpur plant.

These are:

Milk is daily transported from Barauni plant. But it takes 3 days for the milk to reach

Jamshedpur from other 3 plants due to bad shape of road connectivity in the region. The deficit

amount of milk is fulfilled through the SMP either of Amul or of others.

The milk is supplied directly from the plant to the market through the vehicles (Mainly 407)

arranged by the dealers. Some of the dealers have their own small vehicles to distribute in the

interior markets of the city. Distribution to retail outlets as well as the dedicated outlets is

handled by the same distributor.

Sl. No. Sourcing Mode of Transportation Milk Vol. in Ltr.

1 Barauni Rail 10000

2 Ara Road Irregular supply

3 Samastipur Road

4 Bhagalpur Road

Sudha Plant, Jamshedpur

17 Dealers

49 Sudha

Parlours

447

Retailers

The dealership is given through tender call which is for atleast 3 years of time. Security deposit

varies from Rs 1-2 Lacs based on the location of the route. Order booking is done over

telephone or personal visit to the plant by the dealers. They deposit cash in advance in Sudha’s

bank account against which the invoice is raised. On holidays and Sundays, the dealers deposit

the cash at the plant office or by the Demand Draft.

Similarly, retailers pay cash in advance at the dealer’s office against which the booking is done

for the next day. So the dealers are dictated by Sudha office in the same time retailers are

dictated by the dealers which shows a monopoly of kind of Sudha in the market.

Sudha directly supplies milk to some of the MFS stores and institutions from its plant through

its hired vehicles.

Margin Structure:

(Prices are in Rs. /

litre)

Dist. Price Dist. Margin Retailer

price

Retailer

Margin

MRP

TONNED 20.90 0.30 21.20 0.80 22

STANDARDISED 22.90 0.30 23.20 0.80 24

Distributor margin includes leakage and transportation cost.

Strengths

Inherent advantage of being a local Dairy Co-operative.

A very strong presence of Booths and parlors across the city having a network of total

distribution points adding up to 500.

The parlors are just like any retail outlet, which can retail other non- competing

products.

So, parlor owners have a lot of stake involved and they can’t stock products of other

competing brands. Moreover their quote is almost fixed by the distributors, which gives

Sudha an assured sale.

The packing station is located in the heart of the city, which minimizes the

transportation cost. Average transportation cost cum distributor margin in Sudha is Rs.

0.35 / litre which would be approximately. Rs. 0.90/liter in our case.

A strong home delivery network of Sudha Booths and parlors across the city.

Stronger brand image among the consumers due to presence in the market for a very

long time period and absence of any major competitor.

Weaknesses

A very large proportion of Sudha booths and parlors are dissatisfied with Sudha because

of large leakage problem and insensitive behavior of the distributors.

There are very less activities and presence of Sudha marketing team in the area. So,

there is no one in the market to address the complaint of the trade channel partners.

Variation in the quality in the lean season is another weakness.

9.2 NAND:

SN DETAILS DETAILS

1 Plant Chandil , Jamshedpur


3 Installed Capacity 0.25 LLPD

4 Average Sale (per day) 0.10 LLPD (Jamshedpur ), 0.05 (Ranchi)

5 No of distributors 11(Jamshedpur), 3 (Ranchi)


7 Total no. of retail outlets 50-55 (Jamshedpur), 40 -45 (Ranchi)

It supplies milk to Ranchi and Jamshedpur from the single plant which is situated at Chandil,

Jamshedpur. It is 35 km away from Jamshedpur and 75 km away from Ranchi by road.

It has 11 distributors in the Jamshedpur city. Distributorship is given on security deposit of

Rs.15000. It supplies milk from the plant to one common place at Sakchi from where the

dealers carry the milk in their own vehicles for which it pays the compensation. It has around 50

retailers around the city.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 19.8 1 20.8 1.2 22

STANDARDISED 21.8 1 22.8 1.2 24

Strengths

It has a better distribution channel in comparison of other local market players

It is second largest brand in terms of volume.

It has better quality of milk in comparison of other local players and it can compete with

Sudha in respect of quality of milk supplied. So, consumers also prefer to buy Nand if

Sudha is unavailable in the market.

Weaknesses

There are only 50 parlours in the city, which can’t cater to the whole area.

It is satisfied with playing the second fiddle role and making no serious attempts to

compete with Sudha.

Non- presence of its marketing team in the market to push its products.

9.3 SHYAM:

SN DETAILS DETAILS

1 Plant Namkum, Ranchi



4 Average Sale (per day) 0.02 LLPD ( Jamshedpur), 0.08 LLPD (Ranchi)

5 No of distributors 3(Jamshedpur), 2 (Ranchi)


7 Total no. of retail outlets 25-30 (Jamshedpur), 35-40 (Ranchi)

As Nand, Shyam has a single plant in Namkum, Ranchi and supplies to both cities from the same

plant. Major sales comes from Ranchi as the plant is located very near to it and all the

management as well as marketing staff operate from there only. So, they have better market

penetration in Ranchi in comparison of Jamshedpur. They don’t have operations in Dhanbad.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 18 2 20 2 22

STANDARDISED 20 2 22 2 24

9.4 AMRIT:

SN DETAILS DETAILS

1 Plant Jamshedpur



4 Average Sale (per day) 0.08 LLPD((Jamshedpur ),0.02 (Dhanbad)

5 No of distributors 7(Jamshedpur)


7 Total no. of retail outlets 70-80 (Jamshedpur ),25-30 (Dhanbad)

It is a local player of Jamshedpur market. Its supply service at the retail level is relatively good

and satisfactory for the retailers. Though there are some quality related issues with this brand,

this brand has been able to stand in the market due to higher margins it provides to the

retailers. The buyers of this brand are majorly tea stall vendors.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 19.3 1.2 20.5 1.5 22

STANDARDISED 21.3 1.2 22.5 1.5 24

9.5 DAIRY FRESH:

SN DETAILS DETAILS

1 Plant Ormanjhi, Ranchi



4 Average Sale (per day) 0.05 LLPD (Jamshedpur), .05 (Ranchi)

5 No of distributors 3 (Jamshedpur ), 4 (Ranchi)


7 Total no. of retail outlets 70-80 (Jamshedpur ), 45-50 (Ranchi)

It has recently launched its products in Jamshedpur and it directly supplies from Ranchi

plant to its 3 dealers in the city in the morning.

Even though it has no fixed margin for retailers and dealers ( Market feedback: Rs.0.90-

Retailer’s margin and Rs. 0.70 Dealer’s margin which includes transportation

compensation also), it can be ascertained as the following:

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 20 0.70 20.7 1.30 22

STANDARDISED 22 0.70 22.7 1.30 24

PLAYERS FUNCTIONAL IN DHANBAD:

9.6 SUDHA (BOKARO PLANT):

SN DETAILS DETAILS

1 Plant Bokaro.



4 Average Sale (per day), In Dhanbad 0.25 LLPD




DISTRIBUTION CHANNEL:

Sudha pouch milk comes to Dhanbad from the Bokaro Dairy plant which is approximately 45-50

km. away from Dhanbad city. This plant has processing capacity of 60000 LPD of which 25000

LPD is supplied to Dhanbad while the remaining is consumed in Fhushro, Asansol and Purulia.

Area wise quotations are invited for the distributorship of Sudha. There are three distributors in

80%

8%4%

1%

7%

MARKET SHARE OF DIFFERENT PLAYERS IN JAMSHEDPUR

SUDHA NAND DAIRY FRESH SHYAM AMRIT

Dhanbad. Distributors margin may vary in different Area/Route based upon the quotations. This

tender is valid for one year that may be extended further. Transportation cost for bringing milk

from plant (located at Bokaro) and then supplying milk to parlours and authorized retail

outlets/ counter is borne by the distributors.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 20.45-20.90 0.30-0.75 21.20 0.80 22

STANDARDISED 22.45-22.90 0.30-0.75 23.20 0.80 24

BOKARO

DAIRY PLANT

DISTRIBUTORS

(3 IN Dhanbad)

AUTHORIZED

PARLOUR /

OUTLET

GENERAL

OUTLETS CONSUMERS

9.7 MEDHA:

SN DETAILS DETAILS

1 Plant Dhanbad, Ormanjhi (Ranchi plant)


3 Installed Capacity 0.35 LLPD ( both together)

4 Average Sale (per day), In Dhanbad 0.02 LLPD (Dhanbad), 0.03( Ranchi)

5 No of distributors 2 (Dhanbad), 3(Ranchi)


7 Total no. of retail outlets 25 -30 (Dhanbad),25-30 (Ranchi)

Medha is an initiative under “Jharkhand dairy project” and it has 18 different functional plants

at various places of Jharkhand. Its plant at Dhanbad is just 3 km. away from city which provides

it a huge advantage in maintaining timeliness of supply .Its has stated to make its presence felt

in Dhanbad market. A loss of credibility of Sudha due to uneven supply last year, Medha and

other players in Dhanbad has been hugely benefitted.

Its price is Rs. 1 lesser than Sudha for 1 ltr pack which provides it a price advantage in the

market. It is the only player in Jharkhand other than Sudha which is trying to develop a proper

procurement channel in the region which is a sound strategy from the future perspective.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 18.70 1 19.70 1.3 21

STANDARDISED 20.70 1 21.70 1.3 23

9.8 RADHA:

SN DETAILS DETAILS

1 Plant Dhanbad

2 Products SM





7 Total no. of retail outlets 30-35

Margin structure:


litre)


price

Retailer

Margin

MRP

STANDARDISED 20.80 1 21.80 1.2 23

TONNED - - - - -

9.9 AMUL:

‘Amul’ milk comes to one specific area “Hirapur” of Dhanbad in unauthorized way from

Asansol. Consumers are charged rupee 1 to 1.5 per ltr more than MRP for Amul milk. There is

only one distributor and amul milk is confined to the nearby areas of Hirapur. Interestingly,

even when confined in one single area Amul has been able to achieve a larger consumer base

than all other players except Sudha. Most of the customer base has shifted from Sudha to

Amul.

Margin structure:


litre)


price

Retailer

Margin

MRP

TONNED 20.50 .50 21 1 22

STANDARDISED 22.50 .50 23 1 24

PLAYERS FUNCTIONAL IN RANCHI:

Major players of Ranchi market are Sudha, Nand, Shyam, dairy Fresh and Medha. We have

discussed all of them. Only Sudha needs a separate description as it supplies the milk to Ranchi

city and adjacent areas from a separate plant at Dhurwa, Ranchi.

9.8 SUDHA (RANCHI):

SN DETAILS DETAILS

1 Plant Dhurwa, Ranchi

2 Products TM and SM






Distribution channel and margin structure of Sudha in Ranchi market is same as Jamshedpur.

76%

8%

6%

4%

6%

MARKET SHARE OF DIFFERENT PLAYERS

SUDHA MEDHA RADHA AMUL AMRIT

9.11 LOOSE MILK MARKET IN THREE CITIES:

Loose milk has got a significantly large customer base in all the three cites under study. There

are various reasons due to which a customer will remain reluctant to shift from loose milk to

pouch milk. Some of the customer may remain reluctant due to lack of awareness about the

risks of using open milk and a hypothetical perception of open milk being more healthy and

fresh.

It is interesting that while the customers remain very sensitive about the quality of milk which

they buy, they remain insensitive about the surrounding in which cows or buffaloes are being

milked.

Other reason may be the lower prices offered by the local milkmen but in general, prices are

lowered by mixing water in the milk and consumers are aware about it. Generally, people who

buy open milk from milkmen at home always remain doubtful about the quality they are

getting from the milkmen.

74%

5%

11%5%

5%

MARKET SHARE OF DIFFERENT PLAYERS IN RANCHI

SUDHA NAND DAIRYFRESH MEDHA SHYAM

For some families, the credit facility provided by the local milkmen could be the reason for

them to stick with the loose milk. They can buy smaller quantity like .25 ltr or .75 ltr from the

local milkmen on the same ratio of prices as in buying 1 ltr milk.

We tried to understand the dynamics of the three respective markets with having these

hypotheses in mind and tried to identify factors functional in each market behind people

sticking with loose milk.

There are around 40 -50 Khatal areas in Jamshedpur city and its suburbs producing total

quantities of around 40000 LPD. Of these, there are 10 Khatals who contribute significantly in

total loose milk supply. These major Khatal areas are Jugsalai, Mango, Bistupur Gurudwar,

Sidhgola-Agrico, Gobindpur, Shastri Nagar, Kadma Ulian, Sonari, Sakchi Govt. Hospital and

Bhulabasa.ss

Out of these areas, Mango Khatal contributes 10000-12000 LPD, Bistupur Gurudwar Khatal

produces 4000-5000 LPD and Gobindpur provides 3000-4000 LPD.

Dhanbad market is predominantly a loose milk market. Reason behind it, to some extent, is its

less urbanized population. There are more than 80-85 Khatals in the outskirts of the town

which supply milk to the urban population. People prefer loose milk because there have been

uneven supplies of pouch milk in the past. All the Khatals in total, supply around 75000-80000

LPD in Dhanbad which constitutes around 70 – 75 % of the existing market size.

Though it shows the conservative nature of the population as a whole, Dhanbad market

provides huge opportunities for a new entrant. Sudha, though a market leader, have not been

able to create a strong consumer base for itself in Dhanbad. So, there are real opportunities for

a new but trusted brand like to come and rule the market easily.

In Ranchi, Loose milk Market is about 40000 Litres and prices charged by local milkmen vary

between Rs 17 per liters to Rs 22 per liters, (loose milk of fat content of 5.0 %- 6.5 %). There are

approx 250 cattle sheds (Khatal) in city and adjoining areas.

150 small size Khatals of average supply 80 LPD.

60 mid-size Khatals of average supply 250 LPD.

40 big size Khatals of average supply 400 LPD.

RANCHI JAMSHEDPUR DHANBAD

LOOSE MILK MARKET 40000 LLPD 40000 LLPD 80000 LLPD

Table: Loose milk market in three cities.

COMPARATIVE STUDY OF SUDHA AND AMUL THROUGH SWOT ANALYSIS:

9.12 SWOT ANALYSIS OF SUDHA:

STRENGTH WEAKNESS

Strong brand name

strong distribution network

Strong Presence

Government support

Customer’s Trust

Government aid for full time parlors.

Presence of other SUDHA products in

the market

No fresh milk Procurement

Governmental board takes long time to

pass any decision on concerns raised.

Lesser margins offered to retailers.

Most plant machinery is old and traditional

and can’t stand high demand situations.

Facing problems in maintaining the quality

throughout the year.

OPPORTUNITIES THREAT

huge market potential

No branded player in the market with

strong presence.

Acquisition of local dairy for supply

Launching of AMUL in these markets

can destroy its market share.

Logistics from far flung areas to major

places.

Not able to cater demand.

Switching cost is really low in the pouch

milk market.

9.13 SWOT ANALYSIS OF AMUL:

STRENGTH WEAKNESS

Strong brand name

Best Quality at Affordable price

strong distribution network

Highly skilled manpower

Customer’s Trust

Presence of other AMUL products in

the market

Most of the market is captured by

SUDHA.

Non availability of any set up for milk

procurement in Jharkhand.

No government support.

OPPORTUNITIES THREAT

To tap the untapped market, huge

market potential.

Except Sudha, no branded player in the

market with strong presence

Short supply and irregular supply

To explore new marketing

opportunities including satellite areas.

Logistics from far flung areas to major

places.

Emotional attachment with SUDHA

Not able to cater demand.

9.14 COMPARATIVE ANALYSIS OF TARGET SEGMENTS OF MAJOR PLAYERS:

A comparative analysis of the Major players’ target segments will help us in understanding their focus

areas as well as their marketing strategies. It will also help us in analyzing individual player’s respective

strengths and weaknesses.

Players Focused Segment with higher presence

Sudha Consumers> Institutions > Restaurants> Tea stalls

Amrit Tea vendors> consumers > Restaurants

Nand Consumers > Restaurants >tea stalls

Radha Sweet Shops > tea stalls > Consumers

Medha Consumers > Sweet shops >Restaurants > Tea vendors

Shyam Restaurants >Tea stalls > Consumers

Dairy fresh Consumers > Restaurants

Table: Target segments for each brand in descending order, (> represents “greater than” sign)

Sudha is the brand having its presence in all the consumer segments and is catering to all the

consumer bases while the smaller players are focusing on sweet shops or tea stalls that does

not much care about the quality but are more considerate about the prices.

Though the printed retail prices are the same across the brands, smaller players provide

discounts on prices which make their brand of milk a little cheaper than Sudha and it is the only

incentive through which they are having a specific consumer base.

10. MARKET POTENTIAL OF THREE CITIES:

Per capita of milk availability in Jharkhand is 126 gms But this can’t be the appropriate figure to

calculate the total market potential. Total market potential of a city should be the amount

which will be consumed when milk is abundantly available while the figure of 126 gms is the

current per capita availability of milk in the state.

To find out the total per capita income we have taken national per capita milk consumption of

246 Gms and then discounted it by a factor X, which is the ratio of state per capita income and

national per capita income, to find out the state per capita milk consumption figures.

To normalize the state per capita consumption figures for every city, we have divided every city

into major marketing zones and then provided an urbanization rating to every major marketing

zone with which we have discounted the state per capita consumption figures to find put the

per capita consumption figures for every marketing zone. The urbanization rating has been

provided to every zone on the basis of various criteria like no. of schools, no. of petrol pumps

and no. of marketing complexes in the respective zone.

Now, by multiplying the per capita consumption of every marketing zone with the total

population of the marketing zone, the total marketing potential of the specific marketing zone

can be figured out.

The total market potential of the city would be the sum of market potentials of all the

marketing zones in the city.

Calculation of State Per Capita Consumption Figure:

State per capita consumption = national per capita milk consumption * Factor X

Where X = (state per capita income / national per capita income) Current2008-09 figures

= (26620/38083) = 0.699

So, State per capita consumption = 246 * 0.699 = 174 gms

10.1 RANCHI

SN

AREA POPULATION

IN ‘000

STATE PCC IN

LTR

URBANIZATION

RATING

PCC IN GRAMS DEMAND

(IN KL)

1 Bariatu 125 174 1.1 191.5 23.94

2 Morabadi 105 174 1 174 18.27

3 Lalpur 115 174 1.2 209 24.035

4 Doranda 95 174 1 174 16.53

5 Ashok Nagar 55 174 1.2 209 11.495

6 HEC 65 174 1 174 11.31

7 Harmu 135 174 1 174 23.49

8 Hindpiri 120 174 1 174 20.88

9 Sukhdeonagar 145 174 1 174 25.23

10 Kanke 90 174 1.1 191.5 17.235

Total 1050 190.225 Table: - Calculation of market potential of Ranchi.

Ranchi has been divided in 10 zones and population of the zone has been taken from available

secondary data (govt. of Jharkhand website). Urbanization ratings have been provided on the

basis of above mentioned criteria.

Total market potential of Ranchi city comes out to be 190 KLPD where the total supply by

pouch milk suppliers adds up to 124000 L and around 40 KL is supplied by loose milk sellers. So,

there is a latent demand of at least 66000 in the Ranchi market.

10.2 DHANBAD

SN AREA POPULATION

IN ‘000

STATE PCC IN

GRAMS

URBANIZATION

RATING

URBAN AREA PCC

IN GRAMS

DEMAND

1 Dhanbad Town 476.45 174 1 174 82.903

2 Jharia Town 472.68 174 1 174 82.25

3 Topchachi 33.97 174 0.9 156.7 5.323

4 Katrash 126.65 174 0.9 156.7 19.846

Total 190.318

Table : calculation of total market potential of Dhanbad.

Dhanbad has been divided in 4 zones and population of the zone has been taken from available

secondary data (govt. of Jharkhand website). Urbanization ratings have been provided on the

basis of above mentioned criteria.

Total market potential of Dhanbad comes out to be 190 KLPD where the total supply by pouch

milk suppliers adds up to 114000 L and around 40 KL is supplied by loose milk sellers. So, there

is a latent demand of at least 76000 in the Dhanbad market.

10.3 JAMSHEDPUR

SN AREA POPULATION

IN ‘000

STATE PCC IN

GRAMS

URBANIZATION

RATING

URBAN AREA PCC

IN GRAMS

DEMAND

IN KL

1 Bistupur 135 174 1.2 209 28.215

2 Telco 140 174 1.2 209 29.260

3 Kadma 110 174 1.2 209 22.990

4 Sakchi 125 174 1.2 209 26.125

5 Golmuri 98 174 1.2 209 20.482

6 Jugsalai 65 174 1 174 11.310

7 Bagbera 58 174 1 174 10.092

8 Sundernagar 50 174 1 174 08.700

9 Gobindpur 53 174 1 174 09.222

10 Mango 85 174 1 174 14.790

11 Dimna Road 63 174 1 174 10.962

12 Adityapur 70 174 1.1 191.5 13.405

12 Gamaharia 49 174 1.1 191.5 09.384

TOTAL 214.937

10.4 SIZE OF OPPORTUNITY IN THREE CITIES:

Size of pouch milk market

Size of loose milk market

Market potential Potential- supply gap

Ranchi 84000 40000 190000 66000

Jamshedpur 120000 40000 215000 55000

Dhanbad 34000 80000 190000 76000

TOTAL 238000 160000 595000 197000

Table: figures rounded off to nearest thousands.

Though we agree that the customer base for a new entrant like AMUL will be mainly created

from the existing milk market customer base and so, the unmet demand figures are of not so

much significance.

But in our hypothesis, there are customers who are not satisfied with the quality of milk

supplied by Sudha and as they don’t have an alternative of even same quality (other players

being local or loose milk players), they are remaining away from milk consumption. Entry of a

trusted player like AMUL can just induce them again to start consuming milk and could be the

customers of AMUL from new customer segment.

There are customers who are just not aware of the importance of having milk on regular basis

but are potential consumers if a proper awareness campaign is launched. It is notable that the

market leader Sudha does not have any proper promotional strategy in place and they don’t

even feel need of it as they are having difficulty in supplying milk on regular basis to their

existing consumer base. So, a proper awareness campaign by Amul with a focus on brand

promoting can just do the trick n capturing a major share of this new customer segment.

But majority of customers of Amul will come from the existing customer base for which Amul

needs to design a proper launching and marketing strategy.

We will discuss these issues in further sections.

11. RESULTS OF MARKET SURVEY IN THREE CITIES:

Descriptive research to collect primary data regarding consumer perception and preference

was conducted with the help of a marketing survey which was conducted in all three cities.

A sample size of 100 consumers, 60 retailers, 40 tea vendors and 20 restaurants was chosen

from each city to collect the data. Collected data has been consolidated and presented in the

subsequent section through which we will be able to understand demands and requirements of

the market.

AVERAGE FAMILY SIZES IN THREE CITIES:

As is evident from the bar chart, maximum families are of size 3 – 6 in all the three cities. In

comparison of Ranchi and Dhanbad has average family sizes in the higher side (52 % have

family size of 5-6 in Dhanbad). It shows that the awareness level of general mass in Dhanbad is

less than Ranchi and Jamshedpur. (Lack of family planning implies to lack of awareness).

So, Company will have to focus more on promotional activities in Dhanbad in comparison of

other two cities. The campaign should not only focus on creating brand awareness but it should

also highlight benefits of pouch milk over open milk and the risks of using open milk.

20

38

20

11

6 5

22

35

16 16

7

4

11

22

32

20

8 7

0

5

10

15

20

25

30

35

40

3 4 5 6 7 8


AGE DISTRIBUTION IN THREE CITIES:

Knowledge about the age distribution of a city can provide significant information to AMUL

about the variant of pouch milk which would have more demand in a city. So, information

about age distribution can help in achieving supply side efficiency.

A significant size of Ranchi’s population is in the younger side (around 28 % between 1-12)

which is an indication that standardized milk (4.5 % fat) will have significant market in this city.

Ranchi has around 15 % of its population in the bracket of 45 or more which could be the ideal

target segment for DTM and with proper promotion a demand pull can easily be created for

DTM. Unavailability of DTM from any other competitor may provide AMUL an easier chance to

capture bigger market share in this category.

Results for the other two cities (charts in the next page) are also in alignment which suggests

that there is significant demand for all variants of milk in these markets. It is just that non

availability of other variants is compelling the customers to existing variants.

13%15%

21%

36%

15%

% OF PERSONS OF DIFFERENT AGE GROUPS IN RANCHI

1-6

7-12

13-20

21-45

46 or More

So, on the basis of the findings it is suggested to promote different variants of pouch milk as

more suitable to different age groups. While it may not increase the overall number of

consumer base, it may attract consumers from competing brands to shift to AMUL as it may

emerge as a brand which cares for the customer needs and provides product in accordance

with it.

15%

16%

18%

38%

13%

% OF PERSONS OF DIFFERENT AGE GROUPS IN JAMSHEDPUR

1-6

7-12

13-20

21-45

46 or More

15%13%

20%

34%

18%

% OF PERSONS OF DIFFERENT AGE GROUPS IN DHANBAD

1-6

7-12

13-20

21-45

46 or More

EFFECTIVENESS OF POINTS OF PURCHASE (PoP):

Effectiveness of different formats of Pop can provide useful insights when developing

distribution channel for AMUL. In all the three cities generally milk parlors are synonymous with

‘Sudha dedicated outlets’ as none other brand has been able to develop its own dedicated

outlets.

As is evident from the chart that dedicated outlets provide Sudha a distinct advantage as

almost 25% milk consumers are buying their product from these milk parlours. More than

penetration, it has provided Sudha a much better visibility than its competitors. So, while the

no. of dedicated outlets increase the sales and are helpful in increasing the nearness of their

product to consumers, it has help in capturing much larger share of mind for Sudha.

MIKH PARLOUR RETAIL STORE KHATALAT HOME

FROM GWALASANY OTHER

RANCHI 26 30 22 18 4

JAMSHEDPUR 28 32 16 19 5

DHANBAD 18 19 32 28 3

26

30

22

18

4

28

32

1619

5

18 19

32

28

3

0

5

10

15

20

25

30

35

NO

. OF

CO

NSU

MER

S

MILK PURCHASING PREFERENCE OF CONSUMERS

TIMING OF MILK PURCHASE:

Knowledge about the preferred time by consumers can be immensely helpful in providing right

quantities at right time. It will make the task of logistics a lot more easier and would enable the

organisation to handle its operations in a lot more cost effective manner.

As the pie chart concludes, morning time is more preferred time for consumers to buy milk. In

these cities milk purchase is an activity which is associated with timing of morning walk of men

and for ladies, it is done along with dropping children at their bus stop. So, Amul will need to

arrange for supplying a larger quantity at the morning time

56% 27%

17%

TIMING OF MILK PURCHASE

MORNING EVENING BOTH

CONSUMER PREFERENCE ABOUT DIFFERENT VARIANTS:

We tried to determine the consumer preference about different variants of milk available in the

market. We can easily see that there is a clear inclination towards TM in all the three cities. But

other than price, it is availability throughout the year of toned milk which plays a significant

role.

Our hypothesis is supported by the fact that 55% of respondents were willing to try DTM or

WM if consistently available in the market at reasonable prices. So, there is latent demand for

DTM and WM in the market which is unaddressed by any of the player.


TONNED MILK 55 60 75

STANDARD MILK 45 40 25

5560

75

4540

25

0

10

20

30

40

50

60

70

80

NO

. OF

CO

NSU

MER

S

VARIANT PREFERENCE IN THREE CITIES

will try55%

will not try45%

New Variants of milk

CONSUMER PERCEPTION ABOUT POUCH MILK:

In all the three markets there is a significant market share captured by loose milk players. We

tried to identify factors which can explain the phenomenon of consumers sticking with loose

milk.

Most of the respondents (around 40 %) using loose milk identified lower prices of loose milk

and credit facility provided by the local milkmen as the major factor for their preference to

pouch milk.

It shows while quality is a sensitive issue there are specific sections who are compromising with

quality due to lower prices of loose milk. There are few families who need 250 or 750 or 1250

Gms of milk per day but they can’t buy pouch milk as such option is not available for them.

They didn’t buy larger volumes as milk is a very perishable commodity which can’t be easily

preserved. Launching smaller pack sizes of 200-250 Gms can help in attracting these customers

towards pouch milk.

HYGIENE HEALTHY TASTE PRICEAVAILABI

LITYIMAGE

CREDIT FACILITY

ANY OTHER

RANCHI 5 16 18 18 10 3 22 8

JAMSHEDPUR 4 20 17 20 8 5 20 6

DHANBAD 7 19 16 22 6 2 18 10

5

1618 18

10

3

22

8

4

2017

20

85

20

67

1916

22

6

2

18

10

0

5

10

15

20

25

NO

. OF

RES

PO

ND

ENTS

FACTORS AFFECTING MILK PURCHASING DECISION

Milk is consumed as a nutritional food in the homes and generally provided to children for

direct consumption. So, a lot of families will be willing to sacrifice volumes for quality.

Our hypothesis is supported by the fact that there were a significant proportion of respondents,

especially among loose milk consumers who saw smaller pack sizes at reasonable prices a value

added preposition.

It shows that there are consumers with low purchasing power who are willing to buy good

quality milk but are unable to do so because smaller pack sizes are not available in the market.

It is a pretty large consumer base, so, while selling smaller volume per consumer, company can

achieve higher sales in total.

Figure 1 Availability of smaller pack sizes

Target segment for it would be working single professionals and students alongside lower

income consumer class. A proper promotional campaign to create market awareness about the

launching of these pack sizes will help in creating a consumer base in a shorter period of time. It

is notable that the maximum number of consumers of these packs would be a new customer

segment which will shift its preference from loose milk to these pouch milk packs. So, it will not

affect the market size for other pack sizes.

YES65%

NO35%

SMALLER PACK SIZES

CONSUMER PREFERENCE TOWARDS POUCH MILK:

We tried to identify the major factors for consumer preferring a specific variant of pouch milk.

We chose major factors which we had found out during our exploratory research which could

be the reasons for a specific section of consumers favoring a specific variant. As we have found

out that in all the three markets there is major preference for TM, we tried to find out reasons

for this preference of consumers.

According to respondents, availability is the most significant factor in Dhanbad market and

healthiness is a more significant factor for the people of Ranchi and Jamshedpur. These data

were supported by the fact that there was a shortage of SM in Dhanbad market last year and

all the brands including Sudha was providing TM only. So, availability of TM throughout the year

is the reason for the people of Dhanbad to prefer TM.

As the market of Ranchi and Jamshedpur is more mature and consumers are more aware than

Dhanbad. Low fat content in TM in comparison of SM is the reason for the consumer for

preferring TM. It shows major opportunity for DTM in these markets because there is consumer

base available in these cities for DTM which is ultra health conscious and promoting DTM a

product for as the product for this segment can help in creating a consumer base for it.

PRICE HEALTH AVAILABILITYSUITABILITY FOR

USE

RANCHI 15 40 35 10

JAMSHEDPUR 25 35 25 15

DHANBAD 20 25 40 15

15

40

35

10

25

35

25

15

20

25

40

15

0

5

10

15

20

25

30

35

40

45

Axi

s Ti

tle

FACTORS INFLUENCING POUCH MILK PURCHASE

FACTORS OF CONSUMER SATISFACTION:

Through exploratory research we identified factors which are related with consumer

satisfaction. We tried to identify the level of correlation these factors have with the consumer

satisfaction.

We have defined these factors as quality of the milk, freshness of the milk, price of the milk,

timeliness of supply, brand value of the brand used, advertisements done by the brand.

Communalities

Initial Extraction

QUALITY 1.000 .987

TIMELINESS 1.000 .778

PRICE 1.000 .697

FRESHNESS 1.000 .821

BRAND 1.000 .592

ADVERTISEMENTS 1.000 .734

Extraction Method: Principal Component Analysis.

Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.355 39.251 39.251 2.355 39.251 39.251

2 1.148 19.141 58.392 1.148 19.141 58.392

3 1.105 18.416 76.808 1.105 18.416 76.808

4 .706 11.772 88.580

5 .668 11.137 99.717

6 .017 .283 100.000

Extraction Method: Principal Component Analysis.

As the results show, the three most important factors for consumers are quality of the milk,

timeliness of supply and price of the milk used.

So, a brand can achieve significant consumer satisfaction level if it constantly maintains good

quality of milk, timeliness of supply and keep reasonable prices.

FACTORS RELATED WITH RETAILER SATISFACTION:

We identified factors which can be related with retailer satisfaction and these factors are

timeliness of supply, margins available to retailer, credit facility available to retailers, response

to complain, damage settlements and consumer demand for the brand.

Communalities

Extraction Method: Principal Component Analysis. Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.082 34.696 34.696 2.082 34.696 34.696

2 1.417 23.612 58.307 1.417 23.612 58.307

3 1.085 18.082 76.390 1.085 18.082 76.390

4 .820 13.673 90.063

5 .577 9.625 99.687

6 .019 .313 100.000

The three most important factors for retailer were identified as timeliness of supply, margins

available and consumer demand.

So, a brand can keep its retailers satisfied if it maintains timeliness of supply, provides sufficient

margins and there is sufficient demand from consumers for the brand.

Initial Extraction

TIMELINESS OF SUPPLY 1.000 .780

MARGINS AVAILABLE 1.000 .689

CONSUMER DEMAND 1.000 .778

DAMAGE SETTLEMENT 1.000 .738

RESPONSE TO COMPLAIN 1.000 .825

CREDIY FACILITY 1.000 .774

INSIGHTS FROM MARKET SURVEY:

1) Continuous supply of good quality milk is the major challenge of these market due to

almost non - presence of dairy farming in the state and Amul will face a major challenge

in providing constant good quality milk.

2) Small packet sizes are the need of the market and Amul can siege the first mover

advantage by introducing small pack sizes.

3) Any brand can achieve great popularity among consumers if it can vertically integrate to

provide home delivery system. There are a significant number of consumers who will

opt for value added services and any company can gain greater consumer satisfaction by

providing home delivery and it can be provided through outsourcing the work and

charging a premium for the service.

4) Amul should provide free Testing facility at its outlets which will increase the consumer

trust in the quality of milk provided by Amul.

12. LAUNCH STRATEGY

AMUL has got a very strong brand name and products of AMUL has been a synonyms for

quality and AMUL products, traditionally, have got a very high consumer satisfaction rating. A

long customer relationship and a reliable image make it easier for AMUL to launch a new

product and capture a fair market share for it in comparison of its other competitors. But it

does not mean that AMUL didn’t need any marketing or launch strategy before launching its

product. It becomes all the more important for an organisation like AMUL to have a proper

launch and marketing strategy in place before launching products.

On the basis of our gathered understanding of the market of three cities, it can easily be

concluded that there is a reasonable market opportunity for AMUL to launch its pouch milk. A

first AMUL will have to decide the product variants which AMUL should launch in these cities.

12.1 AMUL POUCH MILK:

AMUL needs to come up with all of its product variants in pouch milk category. AMUL should

launch Amul Taaza and Amul Shakti at first and then after one month Amul Gold and Tea

Special should come in the market.

As during our data analysis we have found out that there are significant opportunities for DTM

in these markets. It should also be launched in these markets; it will not only provide AMUL

better visibility in terms of more number of available variants but will also help AMUL hit an

untouched customer base.

Amul should have first mover advantage by launching smaller pack sizes as there are specific

consumer segments that could start using pouch milk if available in small pack sizes at

competitive prices.

VARIANTS 1 LTR 500 ML 250Ml LAUNCHING TIME

GOLD - 1 month post launch of Shakti and Taaza.

SHAKTI Initial product which will be launched, smaller

pack sizes to follow in two months.

TAAZA

Initial product which will be launched, smaller

pack sizes to follow in two months.

SLIM &

TRIM - 1 month post launch of Shakti and Taaza.

T- SPECIAL - 1 month post launch of Shakti and Taaza

Table: Product variants, pack sizes and launching time.

12.2 THE PROCESS CHART 20th Sep could be an ideal date for amul launching as in the two week interval around it are

three major festivals. Festival season would be ideal to generate awareness about amul pouch

milk launch.

Final launch preparation ADA appointment Retail registration Area wise survey & route design MMO manpower recruitment ADA Appointment advertisement Distribution channel finalization MMO Division Zone division

Submission of report & approval Pre Launch survey 28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug 9-Aug 16-Aug 23-Aug 30-Aug 6-Sep 13-Sep 20-Sep

Due Week of completion

TABLE: - Activity Chart for launching of AMUL pouch milk in Ranchi, Jamshedpur & Dhanbad

12.3 LAUNCH TARGETS:

Initially we will be targeting figure of 1.2 LLPD to achieve in the first three months of pouch milk

launch. The target has been set by looking at the market size and the demand - supply gap in

the three markets.

Size of pouch milk market = 238000 LPD

Size of loose milk market = 160000 LPD

Size of Untapped market = 197000 LPD

Assuming AMUL will capture 30 % of total pouch milk market which is not unrealistic as market

of smaller players will largely come to Amul and Amul will be able to make a lot of Sudha

consumer due to a better brand name and greater reliability.

Assuming Amul will be able to make 20 % of customers of pouch milk switch to Amul through

small pack sizes. (a significant proportion of those will the people who want to switch but can’t

due to higher prices of pouch milk.)

Assuming Amul will be Able to create a customer base of 10 % of total potential consumers but

didn’t use it due to various reasons.

Total initial market size of Amul = (30 % * total pouch milk market) + (20 % * total loose milk

Market) + (10 % * total untapped market)

= (30% * 238000) + (20% * 160000) + (10 % * 197000)

= (71400 +32000 + 19700) LPD

= 123100 LPD

12.4 DISTRIBUTION DIAGRAM

26 ADAs will be appointed roughly based on our existing WD areas as well as major residential

areas where we propose to launch. (Jamshedpur - 12, Dhanbad - 8 and Ranchi - 6).

We plan to enlist about 1040 retailers @ 40 retailers per ADA prior to the launch so that we can

achieve the necessary penetration to challenge the market leader.

DAIRY PLANT

APOs ADAs

Indirect vendors/

Home delivery

agents

Retailers

CONSUMERS

Area wise break – up of our distribution zones is as follows:

12.5 ZONE DIVISION

JAMSHEDPUR DHANBAD RANCHI

AREA ZONE AREA ZONE AREA ZONE Sonari

12

Jharia Town

8

Ratu Road

6

Kadma Topchanchi Main Road

Bistupur Kusunda Harmu

Sakchi Nirsa Hatia

Sitarandera Katras Namkum

Sidhgora-Agrico Hirapur Booty More

Golmuri Cable Bank More Burma Mines Sindri

Baridih Birsanagar

TELCO

Adityapur

12.6 PRICE MECHANISM Competitive price and margin structure is one of the necessary criteria to compete in the

market and Amul will have to have a real competitive price structure in relative of its main competitor (Sudha). The price mechanism that can be proposed is as follows:

Variants Volume ( ml) MRP Retailer Margin (Rs./Ltr) ADA Margin (Rs/Ltr)

GOLD 1000 26 1 0.5

500 13 1 0.5

SHAKTI 1000 23 0.9 0.45

500 12 0.9 0.45

250 6 0.9 0.45

TAAZA 1000 22 0.8 0.4

500 11 0.8 0.4

250 5.5 0.8 0.4

SLIM & TRIM 1000 21 0.8 0.4

500 10.5 0.8 0.4

T- SPECIAL 1000 21 0.8 0.4

500 10.5 0.8 0.4 Table: proposed price structure

12.7 LOGISTICS:

To cater to a large market like Jharkhand any organisation will need a huge logistical setup. For

an organisation like Amul which is planning to launch its pouch milk in this market, it becomes

very critical as milk is a very perishable product and customer remain very sensitive about the

freshness of the milk.

Amul will have to choose a plant location which is strategically located in the centre of these

cities, we propose Ormanjhi, Ranchi as the location for the Amul plant. Ormanjhi is strategically

located near the capital city of Jharkhand and is well connected with all the major cities of

Jharkhand.

PLACE DISTANCE FROM CHANDIL

Dhanbad 90 Km

Ranchi 20 Km

Jamshedpur 135 Km

This plant will serve as the long term supply solution but Amul needs to solve its short term

supply needs too.

It can be solved through transporting packaged milk from Kolkata plant. Ranchi could be the

distribution centre from where milk could be supplied to other two cities. It will be around 300

Kms and will take around 8 Hrs to transport from Kolkata to Ranchi. From Ranchi the sub-

distribution system will work to reach the pouch milk at the ADAs of all the three cities.

Other viable options can be to supply milk to all the three cities individually from Kolkata or

private plants either at Jamshedpur or at Ranchi can be hired because there are some private

dairy plants which are running under capacity and they may be willing to rent out their excess

capacity at reasonable rent. Logistically it would be ideal to start the processing operation from

one of these places.

12.8 SALES AND TRADE PROMOTIONAL ACTIVITIES:

Sales and trade promotion activities are essential for an organisation like Amul and sales and

trade promotional planning is an important part of design of launch strategy. We have tried to

estimate a rough budget for launching as well as annual sales and trade promotion budget.

EXPENDITURE BUDGET FOR LAUNCHING PER CITY

SN BUDGET HEAD / ACTIVITIES

OBJECTIVE ACTION POINT UNIT NO / CITY

COST/UNIT (Rs.)

T. COST Rs / CITY

1 PAMPLETS To covey our message to customers

One month before launching

10000 0.20 2000

2 WALL / RETAIL OUTLET PAINTING

For Brand popularization & Popularity

Two week prior of launching

10000 Sq. feet

Rs 3.5 / Sq. ft

35000

3 HOARDING IN CITY

For Brand awareness and Sales promotion

Jamshedpur major place

10 20000 200000

4 PRODUCT DISPLAY IN FAIR & EXHIBITIONS


As & when required

50000

5 PRODUCT RATE CHART

For customer awareness Two week prior of launching

100 40 4000

6 GLOW SIGN AT RAILWAY STATION


Railway Station 2 15000 30000

7 GLOW SIGN BOARD

For Brand awareness and Publicity

One month before launching

50 1000 50000

8 AMUL PRINTED CARRY BAG (KG.)

Value added service to customer for sales promotion

Till One week , post launch

150 100 15000

9 ADVERTISEMENT IN NEWSPAPER

Publicity Two week prior of launching

100000

10 RETAILERS SIGN BOARD

Visibility Alongside launching

100 150 15000

Total 501000

ANNUAL SALES & TRADE PROMOTION BUDGET PER CITY

SN BUDGET HEAD / ACTIVITIES

OBJECTIVE ACTION POINT UNIT NO / CITY

COST/UNIT (Rs.)

T. COST Rs / CITY

1 GLOW SING AT JUBLI PARK / FIRAYALAL CHOWK / BANK MORE


Throughout the year

1 70000 70000

2 CUSTOMERS CUM RETAILERS MEET

Customers / Retailers education

Quarterly 1 10000 40000

3 DAIRY / CALENDER / GREETING CARD

Relationship Marketing On New Year 5000 25000

4 CHILDREN COMPETITION (SPORTS, PAINTING)

For brand image building and sales promotion

As & when required

20000

5 SPONSORING IMPORTTANT CULTURAL AND SPORTS EVENT

For brand awareness and publicity

As & when required

50000

6 BANNERS On the eve of important festivals for sales promotions

Deepawali, New Year, maker sankranti, Holi

300 50 15000

TOTAL 220000

13. LIMITATIONS OF THE STUDY:

Though the study comprehensively covers up all the important marketing phenomenon of the

three cities under study, the study intentionally excludes the market areas of suburbs of the

three cities which present equally attractive markets and part of the demand is created in these

markets. These areas are left uncovered because the focus of the study was to find out the

market opportunity in the three markets for launching of pouch milk of Amul.

Though suburbs present huge market opportunity, they are not significant markets for a

product which is newly launched because it is difficult for a new brand to launch and achieve

highest level of market penetration.

So, the study focuses on the market opportunity present in the town areas of the cities while

adequate attention has been paid that a brief idea about the markets of the suburbs can be

gained from the report.

Report has more primarily focused on the strategy of the market leader Sudha and has willing

ignored going in depth of the strategies of other players as they are supplying insignificant

volumes in the market and primarily adopting “guerrilla strategy”.

Leaving aside these, report comprehensively explains the major market scenario and provides

insights about the strengths and weaknesses of competitors. We hope the report will be helpful

for the management to take the strategic decision of whether to explore these markets or not.

ANNEXURE - 1

FINAL QUESTIONNAIRE FOR RETAILER AFTER PRE TEST:-

Dear Sir/ Madam,

We are students of Chandragupt Institute of Management Patna. We are conducting a survey related to

Market potential of pouch milk. For this purpose, we would like you to spare a few minutes and share

your views with us.

Thank you.

1. Which pouch milk brands are available at your outlet?

2. Who supplies pouch milk to you?

I. Supplier

II. Distributor

III. Wholesaler

IV. Others (Please specify)

3. Please rank the brands according to their sales or demand.

I. Sudha

II. Shyam

III. Nand

IV. Dairy Fresh

V. Medha

4. Please rank the type of milk according to the consumer preference.

I. Whole Milk (Milk fat- 6 % & SNF-9 %)

II. Standardised Milk (Milk fat- 4.5 % & SNF-8.5 %)

III. Tonned Milk (Milk fat- 3 % & SNF-8.5 %)

IV. Double Tonned Milk (Milk fat- 1.5 % & SNF-8.5 %)

Always Mostly Occasionally

Sudha

Shyam

Nand

Dairy Fresh

Medha

Others

5. At what time there is more demand for pouch milk? (Please rank them accordingly)

Morning Afternoon Evening

6. Please rank the features of the brand of milk which most influence the demand.

I. Quality

II. Price

III. Freshness

IV. Availability/ timeliness of supply

V. Brand Image

VI. Advertisements

7. Please rate the brands on the following parameters? ( 1 is lowest, 7 is highest )

PARAMETERS / BRAND NAME SUDHA SHYAM NAND DAIRY FRESH OTHERS

PRODUCT QUALITY

CUSTOMER LOYALITY

BRAND AWARENESS

PRODUCT AVAILABILITY

TIMELINESS OF SUPPLY

MARGIN OFFERED TO RETAILERS

CREDIT FACILITY

REFUND / DAMAGE SETTLEMENT

RESPONSE TO COMPLAIN

8. Please rank the features according to the value you attach to them when selling the products of a company?

I. Timeliness of supply

II. Margins available

III. Credit facility

IV. Damage settlement

V. Response to complain

9. How the companies are promoting their brand among consumers?

Advertisements Free trials Gifts

Discount coupons Any other (Please specify)

10. Do the companies have any incentive system in place for retailers?

Price – off on list price Gifts price-off on other goods

Any other (please specify)

11. How do you rate brand “AMUL” (in reference of available products) on the following

parameters? ( 1 is lowest, 7 is highest)

Product Quality 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Consumer preference 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Brand awareness 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Timeliness of supply 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Response to complain 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Credit Facility 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Damage settlement 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

12. Would you like to sell AMUL pouch milk?

I. Only if it provides greater margin than the market leader

II. Even if it provides equal margin than the market leader

III. Even if it provides lesser margin than the market leader

13. What facility would you like to have from AMUL to become a loyal retailer of “AMUL”?

_____________________________________________________________________________

_____________________________________________________________________________

Respondent Name __________________________________________________ Gender ___________

Name of the shop: …………………………………………………………………

Address: _____________________________________________________________________________

REMARKS

: -

FINAL QUESTIONNAIRE FOR CONSUMER AFTER PRE TEST:-

Dear Sir/ Madam,

We are students of Chandragupt Institute of Management Patna. We are conducting a survey related to

Market potential of pouch milk. For this purpose, we would like you to spare a few minutes and share

your views with us.

Thank you

1. How many members are there in your family?

1-6 yrs 6-12 yrs 12-20 yrs 20 yrs or More

2. What is the daily consumption of milk in your family?

0-1 L 1-2 L 2-3 L 3 or More L

3. For what purposes you majorly use milk in your family? (You can tick one or more)

Direct consumption Tea Curd Any other

4. What kind of milk do you use?

Pouch Milk Non – Branded or Open Milk

5. From where do you buy your milk?

Milk Parlors Retail stores

Khatals (open milk Centers) At home from Gwalas

Any other, please specify

If open milk user, move ahead; else go to Question number 8.

6. Why do you use open Milk ?(You can tick one or more)

Hygiene Healthy Taste Price

Availability Image Any other

7. Would you ever like to use pouch milk? Yes No

Please give reasons for your answer_________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Please go to Question number 14

8. Which brand of milk do you use?

Sudha Nand Shyam Dairy fresh

Medha Any other (Please specify)

9. Why do you use this brand (As you mentioned in previous question)?

Quality is better than other available brands

Easily available

Cheaper than other available brands

Non – Availability of option

Any other, Please specify

10. What kind of milk do you use?

Whole Milk (Milk fat- 6 % & SNF-9 %)

Standardised Milk (Milk fat- 4.5 % & SNF-8.5 %)

Tonned Milk (Milk fat- 3 % & SNF-8.5 %)

Double Tonned Milk (Milk fat- 1.5 % & SNF-8.5 %)

11. Give reason for your above mentioned choice? (You can tick one or more)

Price Healthiness taste Availability

Suitability to your particular use

12. How will you react to the price increment by your preferred pouch milk brand?

(Switch to lower volume, Switch to cheaper brand, Move to open milk market)

Increment of Rs 0 - 1 __________________________________________________

Increment of Rs 1- 1.50 __________________________________________________

13. If available, would you like to buy 200 – 250 ml pouches rather than half litre or 1 litre pouch?

Yes No Depends on usage

14. How do you rate your milk in terms of ( 1 is Lowest and 7 is Highest)

Hygiene 1…….…….….2……………...3……….……...4…….…..……5..........…...6…….….….7

Healthiness 1…….…….….2……………...3……….……...4…….….…….5...............6…….………7

Taste 1…….…….….2……………...3……….……...4…….….…….5..........…...6….…….….7

Freshness 1…….…….….2……………...3……….……...4……….….….5..........…...6….…….….7

Price 1…….…….….2……………...3……….……...4…….…..……5..........…...6…….….….7

Availability 1…….…….….2……………...3……….……...4……………...5................6…….……..7

Timeliness 1…….…….….2……………...3……….……...4……………...5................6…….….….7

15. Rank the following factors according to their influence in your milk purchase decision?

Taste Hygiene

Healthiness Price

Timely Supply Advertisement

16. What do you do if your brand of milk is not available?

You will wait for your brand of milk to come

You look for your brand of milk at some other place

You buy other available brand

17. What are the areas where Pouch milk should improve to make it more preferred choice for

consumers?

______________________________________________________________________________

_______________________________________________________________________________

Respondent Name __________________________________________________Gender _____________

Occupation: a) Business b) Service c) Housewife d) Student e) Others

Address: _____________________________________________________________________________

REMARKS : -

AMUL : -

LIST OF ANNEXURE

Year wise sales figures of Sudha Jamshedpur:

Milk Market in major cities of Jharkhand:-

Milk Market in major cities of Jharkhand

AVG. SALES

/DAY

SUDHA NAND AMRIT SHYAM MEDHA AMUL RADHA DAIRYFRESH

RANCHI 55000 5000 NIL 8000 5000 NIL NIL 11000

JAMSHEDPUR 95000 10000 8000 2000 NIL NIL NIL 5000

DHANBAD 25000 NIL 2000 NIL 2500 1500 2000 NIL

No. of distributors of different brands :

No. of distributors of different brands

Jamshedpur Dhanbad Ranchi

No. of Dealers Sudha 17 3 6

Nand 11 - 3

Amrit 7 N/A -

Dairy Fresh 3 - 4

Shyam 3 - 2

Radha - 2 -

Medha - 2 3

65.5 67.9 69.4 7581.5 87.5

95.4

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Milk sales ( in KL/Day)

milk sales ( in KL/Day)

Brief summary of three markets and the players:

RANCHI SUDHA NAND DAIRY FRESH MEDHA SHYAM

MARGINS TO DISTRIBUTOS (Rs) 0.3 1 0.70 1 2

MARGINS TO RETAILERS (Rs) 0.8 1.2 1.30 1.5 2

NO. OF OUTLETS 600 40-45 45-50 25-30 35-40

VOLUME OF SALES 55000 5000 5000 3000 8000

PLANT LOCATION HATIA CHANDIL CHUTUPALU ORMANJHI NAMKUM

APPROX DISTANCE OF PLANT 10 70 25 20 15

DHANBAD SUDHA RADHA AMRIT MEDHA AMUL

MARGINS TO DISTRIBUTOS (Rs) 30-70 1 1.2 1 0.50

MARGINS TO RETAILERS (Rs) 0.8 1.2 1.5 1.3 1

NO. OF OUTLETS 450 30-35 25-30 25-30 25-30

VOLUME OF SALES 25000 2000 2000 2000 1500

PLANT LOCATION BOKARO DHANBAD HOOGLEY

APPROX DISTANCE OF PLANT 50 5

JAMSHEDPUR SUDHA NAND DAIRY FRESH SHYAM AMRIT

MARGINS TO DISTRIBUTOS (Rs) 0.35 1 1 2 1.2

MARGINS TO RETAILERS (Rs) 0.8 1.2 1.30 2 1.5

NO. OF OUTLETS 450 50-55 70-80 25-30 70-80

VOLUME OF SALES 100000 10000 5000 2000 8000

PLANT LOCATION JAMHARIA CHANDIL NAMKUM

APPROX DISTANCE OF PLANT 12 30 100

16. REFERENCES

1) http://www.amul.com/organisation.html

2) http://www.indiadairy.com/tech_list_dairyplants_federations.html#Bihar

3) http://www.nddb.org/partners/compfed.html

4) http://www.indiastat.com/demographics/7/growth/116/stats.aspxhttp://www.indiastat.com/demographics/7/growth/116/stats.aspx

5) http://www.indairyasso.org/magazine/sep08/health_brief.htm#1

6) http://www.indiadairy.com/ind_dairyindustry.html

7) http://www.chillibreeze.com/articles_various/Dairy-in-India.asp

8) http://jharkhand.nic.in/districts.htm

9) http://ranchi.nic.in/blocks.htm

10) http://www.bihartimes.com/Newsbihar/2008/Nov/Newsbihar21Nov3.html

11) http://www.mapsofindia.com/maps/cities/

http://www.amul.com/organisation.html

http://www.indiadairy.com/tech_list_dairyplants_federations.html#Bihar

http://www.nddb.org/partners/compfed.html

http://www.indiastat.com/demographics/7/growth/116/stats.aspxhttp:/www.indiastat.com/demographics/7/growth/116/stats.aspx

http://www.indiastat.com/demographics/7/growth/116/stats.aspxhttp:/www.indiastat.com/demographics/7/growth/116/stats.aspx

http://www.indairyasso.org/magazine/sep08/health_brief.htm#1

http://www.indiadairy.com/ind_dairyindustry.html

http://www.chillibreeze.com/articles_various/Dairy-in-India.asp

http://jharkhand.nic.in/districts.htm

http://ranchi.nic.in/blocks.htm

http://www.bihartimes.com/Newsbihar/2008/Nov/Newsbihar21Nov3.html

http://www.mapsofindia.com/maps/cities/

sip amul ranchi by abhishek & vipul (cimp)

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