PROPOSED MARKETING STRATEGY

Overview of the Indian Dairy Market

India is the largest producer of milk with around 155 Million MT of milk production in 2015-16. This milk is produced at around 75 million dairy farms with captive holding of two cows per farm with an average yield of around 1000 liters per day. Out of this almost half of the milk is consumed at the production level and balance comes to the market for direct sales and processing. The ratio of unorganized to organized sector in milk procurement and trading is 60:40.

   If we compute it on daily basis then around 18 crore liters of milk comes to the market daily out of which around 11 crore is handled by unorganized and 7 crore liters to the organized sector. Cooperatives and government dairies process close to 45 % of it and 55 % is being handled by the private sector as per latest media reports.

 The milk coming to organized sector is processed in close to 1400 dairy processing plants with an installed capacity of close to almost 13.5 crore liters per day. The average capacity utilization is around 60 % in the organized sector’s plant. The processing capacity in India is growing at a high rate of 20-25 % in last 3-4 years. There have been both inorganic and organic growths being considered by the investors from India and abroad.

  The liberalization of the Dairy Industry is likely to be exploited by multinationals. Increasing demand for fluid milk as well as value added products. While the milk production is growing at

slightly above 4.5 %, the demand is showing slightly edge over it at around 6 %.

Now the market is becoming conscious about the quality of milk and ready to pay more for better quality and varieties of packed milk and milk products. The competition is becoming fierce and gone are the days when the processors were minting high value on basic products like pasteurized milk in poly-packs. With Food safety laws becoming more stringent and covering cover cold chain also, the overheads of all the dairies on supply chain from farm to consumer reach; it is need to enhance the system advance.

 The consumption pattern of dairy products in India is quite unique as compared to some of the western countries. Consumption is primarily skewed towards traditional products; however, westernized products are gradually gaining momentum in the urban areas. Interestingly, buffalo milk accounts for the largest share of the total milk produced in the country. Since the pricing of milk is based on the fat content, buffalo milk offers higher profit margins as compared to cow milk as it contains higher fat.

  Indian famer

 The Indian dairy sector is characterized by high fragmentation. It is dominated by the unorganized sector comprising of 70 million rural households. The per capita availability of milk in India stands at 289.4 grams per day. Backed by strong domestic demand, the per capita availability of milk is anticipated to reach 336 grams per day in FY2017.

Indian consumer

India’s growing middle class will drive change in food consumption. Dairy products are highly income elastic

The Indian consumer is moving from subsistence to basic food categories

Gradual shift from only cereal consumption to include Dairy & other protein products

About 50% of the households spend in the range of Rs. 600 – 2500 in a month for milk consumption.

Out of the households 90% of the consumers prefer unpacked milk, lack of availability.

The share of HH food expenditure on dairy increasing

_Currently 18% in Urban India (Increased from 13% in 1989-99)

_ Currently 15% in Rural India (Increased from 10% in 1989-99)

_Milk usage sector wise in organized sector 13 Mn MT pasteurized milk sector

Indian Market

Milk usage by sector wise

Traditional Sector                         40 %

Rural Sector                                   45%

Organised Sector                          15%

Only 15% of milk processed in the organised sector out of

Plain milk (Fresh pasteurised)   75 %

Other Value Added Products     25 %

VISION: AMP has a Vision to provide more and more satisfaction to the farmers, consumers ,employees and distributors.

Market Performance is divided in two different main categories

1. Primary Dairy Market

Liquid Milk

Curd/Yoghurt

Cheese

Butter

Ghee

Paneer (Cottage Cheese)

2. Secondary Dairy Markets

Tea

Coffee

Dairy Whiteners

Infant Nutrition

Malted Foods

Ice Cream

1. Milk is Recategorized in to 3 types based on production

2. Cultured  :  Dahi lassie, shrikand , yoghurt , cheese3. Condensed and /heat desiccated: Khova, kheer ,

payasam,Rabri, ethinic sweets, condensed milk4. Acid precipitated    : Channa ,Paneer , sweets,Milk fat in to

cream, Butter & Ghee      

3. Segment based marketing

1. Kids  Energy drink / infant food2. Woman  Calcium3. Youth Ice creams and pizza4. Calorie conscious  Skim milk / fat free foods5. Health conscious   Nutrient drinks and foods6. Industry based on marketing7. Ice cream manufacturers8. Bakery and confectionery9. Restaurants and food chains10. Coffee and tea chains11. Temples / charities12. Snacks and Pizza retailers13. Consumer preference based products14. Urban based products

Traditional                      Value Added

Panneer                                  Processed cheese

Butter                                   Infant food

Pure Ghee                           UHT /Flv milk

Khova                                   Desert mixies

Cream                                  ice cream

Butter Milk /lassie            Tetra pack /Lassie

Fresh milk                           Dairy whitener /condensed milk

1. Alternative non dairy brewages: Iced teas / iced coffees / Fruit juices / Lemonades / Almond Milk / Soy Milk

2. Consumers are driving innovation in dairy products and dairy packaging and seek: Convenience / Healthier foods / reduced portions / Natural ingredients / Energy boosting drinks

3. Retailers continue to drive packaging changes in all food categories asking for: Different size packages / Multi-packs / Variety packs / Retail ready displays / Sustainable packaging

4. Decline of fluid milk - rise of alternative beverages demand Consumer demand for healthier food choices with new products that are;

5. Low fat / Fat-free6. Reduced sodium and sugar7. Lactose-free8. Organic9. Probiotic cultures,     Fortified with nutrients,     Calcium and

protein ,    Cheese10. New flavors of ice cream and milk11. By-products - whey, protein concentrates12. Powdered milk - particularly in Asia13. Almond milk14. Coconut water15. Some of the new packages being developed will use:

Sustainable materials to extend shelf-life, UHT /Flv milk Stronger barrier-protection to increase stability through the

supply chain

1. Ice cream market: The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, rest all is with the unorganized sector. Among the major players in this industry Hindustan Lever has a market share of around 50%, represented mainly by Kwality Walls brand. Amul with an estimated market share of 35% is rapidly gaining market share and lastly Vadilal is the player in the national market with 8-9% of the market share.

Opportunities

The increasing demand for convenient and hygienic foods at both, domestic and global level and availability of  technology for processing of by-products, offer immense investment opportunities in the Indian dairy sector. The realization of the potential opportunities would be instrumental in enhancing livelihood security of the millions of dairy farmers in the country.

 Resources Planning

Resources are the source of the firm’s capabilities. Resources are bundled to create organisational capabilities. Some of a firm’s resources are tangible and intangible. Tangible resources are assets that can be seen and quantified. Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Intangible resources are relatively difficult

for competitors to analyse and imitate. The four types of tangible resources are financial, organisational, physical and technological. And the three types of intangible resources are human, innovation and reputational.

Resources utilisation

Tangible Resources

Organisational Resources Physical Resources Technological Resources Human Resources Innovation Resources Reputational Resources

Intangible Resources

 

Capabilities of the company

Actually, capabilities are the firm’s capacity to deploy resources that have been purposely integrated to achieve a desired end state. Capabilities are often based on developing, carrying and exchanging information and knowledge through the firm’s human capital and also often developed in specific functional areas, such as R&D, marketing, manufacturing, management and so on.

Distribution

Anant’s milk processing distribution network ensures that every day products are transported to customers from their factories and distribution centers.

Optimises their distribution network such as transport and warehousing in order to minimise greenhouse gas emissions, to ensure the most efficient use of their transport to reduce the distances travelled.

Human Resources AMP Provid training and developing progrmmes on

technology and improving efficiency of work. Increasing efficiency and effectiveness, and improving quality

in all operations. Management Information System By using their research for Information Technology, control

all aspects more efficient. Marketing Brand name and efficient strategy to meet the taste of each

type of consumers. To increase sales and build an image in the mind of consumer,

Company advertises their product in different ways, by using television, radio, newspaper, bill board.

Management Company has a Board , to review the performance and further

actions to success of the future. The day to day management of company business is taken

care of by Executive Board members composed of company executives and department heads.

Manufacturing Company produced a probiotic especially for all infant

formulas and created and patented a pasteurized milk,

skimmed milk ,tonned milk, used in manufacturing milk powders and first used to make powdered paint dispersions.

R&D Company acquired the milk sterilizing site to develop milk

products and processes. The extension will help to enhance company’s innovative

technologies for new product development and apply these to the company’s operations.

Every Company wants to be a leader in innovation and renovation, whether of products, systems or processes. They need to have the most efficient supply chain, from farm to fork to ensure that they have the best raw materials, the bet processes and the freshest products on their customer’s shelves. Company’s Continuous Excellence is the main approach to operational efficiency, with its objectives of eliminating waste, increasing efficiency and effectiveness, and improving quality in all operations. To make the most innovative products in the most efficient way, we also need to ensure that our products are available sustainably wherever, whenever and however consumers want to buy them. Of course, we need to communicate with our consumers in a dynamic way, both to keep them abreast of all that is new and exciting, but also to learn from them, and their experiences to bear on their upcoming innovation and renovation.

Value Chain Analysis of Company The value chain analysis is a template that firms use to

understand their cost position and to identify the multiple means that might be used to facilitate implementation of a chosen business-level strategy. A firm’s values chain is segmented into primary and support activities. Primary activities are involved with a products physical creation, its sale and distribution to buyers and its service after sale.

Support activities provide the assistance necessary for the primary activities to take place.

Anant Milk Processing Human Resource Management

AMP Human research is dedicated to their employees and ensures that they have all the right people with the right skills. Understanding their people are the bedrock of all their business strategies, it is our mandate to enhance their skills with cutting edge training and provide them with world standard facilities. AMP Management Trainee Programmed aims to develop talented young men and women and help them achieve their potential in a dynamic and enabling environment.

Anant Milk Processing     Procurement

 The participation of private sector in improving the procurement and processing function in dairy can be  envisioned through some of these possible interventions.we work on following points.

Identification of potential milk pockets, Planning and development of strategic locations for milk

collection. Design, build and operate a milk collection network Design, build, own and operate milk processing facility

o focuses on improving customer satisfaction through continuous and incremental improvements to processes

o Organizational Capacity o Human resources

Staff Volunteers Board committees

ANANT MILK PROCESSING WILL WORK ON 3M (Manufacturing, Managing, Marketing)

Area To Be Covered INDORE (Region) MHOW KHARGONE (Region) BARWANI (Region) SENDWAH (Region)

DEPOT

DISTRIBUTOR

OUTLET

Strategy for above mention Regions:- Indore is a big city with lots of consumers for the product. Marketing in this cities will be profitable. There are lot of unemployed B.sc/M.sc agri people who can

join in the sales outlet business. Quality products once sold will create more demand for the

products. There are no issues regarding transportation and other

facilities. We Will hire for uninterrupted cold chain supply. 1. In the initial phase there will be a central depot which will be

headed by a REGIONAL HEAD.2. The region will be divided into four areas i.e. east, west, north

and south areas.3. Four representatives will be appointed for each of these four

areas. They work for generating/Promoting our products at above mention areas.

4. These people will then expand the outlet points within their areas associated with distributors.

5. From the outlet points the final product then reaches the consumers.

REGION DEPOT

EAST WEST NORTH SOUTH

FIELD FORCE (Each Region)

Appointments- 1 Regional Head 4 Representatives

The work will be done in a Target Oriented Manner. It will be a Time Bound process. The Quality and Quantity will also be taken care of. There will be sufficient Margin for the distributors. Proper Incentives will be provided to the distributors and to

the representatives. NEGOTIATION & AGREEMENT. OFFERING INCENTIVES FOR COOPERATION. FACILITATION & SUPPORT. PROVIDING TRAINING, HELP & ENCOURAGEMENT

WHEN NEEDED.

PLANNING

Planning, Design and Development of Bulk Milk Coolers units (BMC) and chilling facilities for milk at strategic locations shown in the map so that it can cater to a large milk zone. The cooling or chilling cost of milk can be transferred to the consumer through the processing cost and the farmers would not get taxed for the chilling facilities.

Build Own and Operate and transfer laboratories and milk testing facilities to grade and ensure remunerative prices to the farmers.

Design, Build and operate Animal feed processing plants, Milk processing plants.

Build, own and operate a cold chain having a fleet of refrigerated vehicles and insulated stainless steel tankers.

Using Of Technological segment

AMP will create their own website for products promotion. Internet and Mobile Technology is currently growing so

rapidly in the market where almost all of the people nowadays will get contact with it. By using this advantage to benefit them by using technology to promote our products over those advanced technology. Customer could get any information from our site, and they did research and development by using the technology to find more information to satisfy the local tastes and cultural flavours in each market segment. By understanding what each segment asks for, different market product according to the customer demand in difference segment. Product can be altering the life cycle of the product increasing the speed of distribution, Creating new products and services, Erasing limitations of traditional geographic markets, changing the historical trade-off between production

standardization and flexibility. It is already proven that the technology factors are important.

To increase sales and build an image in the mind of consumer, Company advertises their product in different ways, by using television, radio, newspaper, bill board, pamplets, counter/outlets near by temples, organizing/sponsoring events.

PROPOSED CLIENTS FOR PROMOTION OF OUR PRODUCTS

1. Mr. Rajesh Sharma(Samta Enterprises)

Mhow 98260-74555

2. Mr. Sanjay Chourasiya Mhow 99266-37201

3. Mr. Amit Derda(Arihant Catarars)

Indore 94259-01777

4. Mr. Patidar ji(Arpit Dairy)

Indore

5. Mr. Ganesh joshi(Ganesh doodh)

Indore

6. Mr. Anand Bajaj(Riddhi-Siddhi Catarars)

Indore

7. Mr.Raju Rathore Thikri 82250-08227

8. Mr. Darshan(Vibhu Sales)

Maheshwer 99260-48066

Discussion is continue on following points.

1. About area distribution.2. Market strategy & Supply will be made only once in a

day.3. About Payment .4. Margin on different bi products.5. Maintaning cold chain.6. Clearity about aggrement for proper sales target &

payment .