Final Report

Summer Training Report on Identifying factors behind low sale of milk A study of
Mother Dairy
As partial fulfilment of requirements for the award of the Post Graduate Diploma
in Business Management (FMG-XVII) 2008-10
Submitted to: Prof. Sanghamitra Buddhapriya
Submitted By: Sumeet Sharma FMG XVII Roll No.081117
FORE SCHOOL OF MANAGEMENT
B-18, QUTAB INSTITUTIONAL AREA NEW DELHI
Certificate
This is to certify that Mr. Sumeet Sharma, Roll No. 081117 has completed his sum
mer internship at Milk Division at Mother Dairy Fruits and Vegetables Pvt. Ltd.,
Noida and has submitted this project report entitled Identifying factors behind
low sale of milk;A study of Mother Dairy towards partial fulfilment of the requ
irements for the award of the Post Graduate in Management (FMG-XVII) 2008-2010.
This Report is the result of his own work and to the best of my knowledge no par
t of it has earlier comprised any other report, monograph, dissertation or book.
This project was carried out under my overall supervision.
Date: Place: ----------------------------------Internal Faculty Guide
Summer Internship Project/ Sumeet Sharma/FSM
Page ii
TABLE OF CONTENTS
S.no I II 1. Particulars Acknowledgment Exécutive Summary Introduction
1.1) Relevance 1.2) Description of Problem 1.3) Objective of the Project
Page No. iv v
1 3 3 5
2.
Literature Review
2.1) Indian Dairy Industry: An Overview 2.2) Operation Flood 2.3) National Dairy
Development Board (NDDB) 2.4) About the Company: Mother Dairy 2.5) Delhi NCR Ma
rket
6
7
9
10 11 13
3.
Methodology
3.1) Locale of the Study 3.2) Sample Collection 3.2.1) Size of Sample 3.2.2) Met
hod of Sampling 3.3) Data Collection 3.4) Data Analysis
14
17 17 17 17 17 17
Page ii
4. Analysis of Results
4.1) Quality 4.2) Smell 4.3) Taste 4.4) Commission 4.5) Timing 4.6) Accessories
(Paint/Board) 4.7) Distributor 4.8) Schemes
18
23 25 27 29 31 33 35 37
5. Conclusions
5.1) Concluding observations 5.2) Limitations of Study 5.3) Further Scope of Stu
dy
41
42 42 43
6.
Recommendations References Appendix- Questionaire
44
47
48
Page ii
ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the proje
ct would be incomplete without the mention of the people who made it possible. I
take this opportunity to express my sincere gratitude to Sh. Sandeep Ghosh (Hea
d Sales) for his valuable guidance, support and encouraging words during the ent
ire project duration. I feel privileged in expressing profound sense of gratitud
e and indebtness to my company guide Mr. Achint Malhotra (ASI,NT-4) for his inva
luable support, guidance and suggestions which helped me to do the project. I wo
uld like to thank Mr. Subhash Sharma and Mr. F.C.Gupta who in spite of busy sche
dule has co- operated with me continuously and indeed, his valuable contribution
and guidance have been certainly indispensable for my project work. I would lik
e to express my profound sense of gratitude to Dr. Sanghamitra Buddhapriya, my f
aculty guide, who has always given me motivational boost to go and perform. I wo
uld further like to thank him for his persistence to listen to my problems and t
o give apt solutions.
(Sumeet Sharma)
Page ii
EXECUTIVE SUMMARY
This project report mainly focuses on identifying various factors which affects
the sale of Mother Dairy milk in the market. I was assigned a region NT-4 in whi
ch I have to scan the whole market doing a market research finding various facto
rs due to which the sale of Mother Dairy is continuously descending. The region
NT-4 includes the area of Pitampura, Rani Bagh, Ashok Vihar, Shastri Nagar, Kish
an Ganj, Lawrence road etc. For this I have formulated a questionaire with the h
elp of which I can clearly evaluate those factors qualitatively and can come to
a conclusion. In this questionaire the retailers were asked to rate the importan
t factors on the scale of 1-5. The major finding of this research is that the ma
in reason due to which the sales are continuously decreasing is due to the low Q
uality and bad taste and smell present in the milk as suggested to retailers by
customers. Also some recommendations are suggested to the organisation which I t
hink would be beneficial to the organisation to get back its lost customers. It
can be achieved by coming out with some schemes for the customers which could be
nefit the customers in monetary form. The organisation can also focus on maintai
ning the quality of the milk till it reaches the end customers. For this purpose
they can have a organised structure for the distributors as they holds the milk
for the most important phase of the milk.
Page ii
CHAPTER 1 INTRODUCTION
Page 1
Milk, one of the most nutritious beverages that you and your family can enjoy, m
akes a major nutrient contribution to children's diets. In addition to calcium,
it provides eight other essential nutrients. Over 70 percent of the calcium in o
ur food supply comes from milk and dairy foods. Without milk on the menu, it's u
nlikely that kids will meet their daily calcium needs.
Further minerals like phosphorous, sodium, potassium and magnesium are present i
n appreciable quantities. Milk provides considerable quantity of thiamine, ribof
lavin, niacin, pyridoxine, pantothenic acid, biotin, folic acid, vitamin B12 etc
. apart from Vitamin C.
Milk is the most widely used commodity in most of the households. Although peopl
e use it daily for drinking or making tea or coffee. Earlier milk used to be ava
ilable in loose form delivered by the milkman. The quality of milk was not guara
nteed also adulteration was an issue. Due to the fast expansion of cities and la
ck of time with the people, Poly pack milk is fast gaining precedence also the q
uality of mik is assured by the company which is selling milk. The quality is in
accordance with the norms of FAO – Food and Agricultural Organisation which tak
es care of the quality of food products sold all over the world.
Page 2
1.1
RELEVANCE
Indian dairy sector is still mainly an unorganised sector as barely 10% of our t
otal milk production undergoes organised handling. Nowadays consumers have becom
e more cautious about the quality of the milk they are consuming as they are hig
hly aware of the standards they get in the milk taken from local milk distributi
on centres and the standard they get in the poly packed milk. The retail chain h
as emerged as a huge potential market which if captured can help a company to em
erge as a leader in the market. So it‘s quiet important that a company should fo
cus on this market and know each and every detail of this market. A company shou
ld keep a close watch at the satisfaction level of its retailers and also they s
hould be able to meet any complaints as soon as possible. What this research wou
ld help them to know the insights of the market through the side of retail chain
with the help of which they can focus on solving the problems faced by their re
tailers.
1.2
DESCRIPTION OF PROBLEM
Traditionally, in India dairying has been a rural cottage industry. Semi-commerc
ial dairying started with the establishment of military dairy farms and co-opera
tive milk unions throughout the country towards the end of the nineteenth centur
y. In earlier years, many households owned their own ‗family cow‘ or secured mil
k from a neighbour who had one. With the increase in urban population fewer hous
eholds could afford to keep a cow for private use & moreover there were other pr
oblems also like the high cost of milk production, problems of sanitation etc. r
estricted the practice; and gradually the family cow in the city was eliminated
and city cattle were all sent back to the rural areas.
Page 3
Gradually farmers living near the cities took advantage of their proximity to th
e cities & began supplying milk to the urban population; this gave rise to the f
luid milk-sheds we see today in every city of our country. Prior to the 1850s mo
st milk was necessarily produced within a short distance of the place of consump
tion because of lack of suitable means of transportation and refrigeration. The
Indian Dairy Industry has made rapid progress since Independence. A large number
of modern milk plants and product factories have since been established. These
organised dairies have been successfully engaged in the routine commercial produ
ction of pasteurized bottled milk and various Western and Indian dairy products.
With modern knowledge of the protection of milk during transportation, it becam
e possible to locate dairies where land was less expensive and crops could be gr
own more economically. In India, the market milk technology may be considered to
have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk
Colony, and milk product technology in 1956 with the establishment of AMUL Dair
y, Anand. Mother Dairy is the first company to set up booths in the country thro
ugh which they sell bulk vended milk (loose milk) and milk in poly packs. Earlie
r only these booths are the means through which mother dairy is used to sell the
milk in the urban areas, but with the inception of the competitors and there us
e of the retail shops as a means to distribute milk, it forces Mother Dairy to a
lso make these local retail shops as a medium of their selling. The problem that
will be tackled in this research is to find the appropriate reasons for the low
sale in the retail chain of Mother dairy as compared to other competitors like
Amul. For this purpose what we have to do is to find issues related to Mother Da
iry retailers so that we can clearly understand the mindset of the market and th
e retailers so that we can improve upon those points to increase the sale of Mot
her Dairy in market.
Page 4
1.3
PROJECT OBJECTIVES:
1.1.1 Primary Objective:
The main objective of this project is to probe the reasons for low sale in the r
etail chain of Mother Dairy in the milk sector in the area NT-4 and thereby sugg
esting remedial recommendations thereof.
1.1.2 Secondary Objective:
To identify the issues related to Mother Dairy retailers. To study Mother Da
iry strategy vis-à-vis competitors. To study the distribution channel in the r
etail chain of Mother Dairy To cover up the region NT-4 and get the retailers
feedback. To add up new retailers in this area. To find out short term probl
em in every sub-region that can be sorted out. Suggesting viable recommendatio
ns to be implemented in the area. To keep track of the daily sales of the dist
ributors in the region NT-4.
Page 5
Chapter 2 LITERATURE /CONCEPTUAL SUPPORT
Page 6
In the earlier chapter, introduction to the project was given in which objective
s were defined, company’s overview was given, the problem that the company is fa
cing and the relevance of this project was given. This chapter is about the lite
rature and the conceptual support that will be needed at the advance stage of th
is project. In this various important terms and important concepts as per the re
quirement of the project have been defined, that will be helpful in properly und
erstanding this project. For this various books, websites and blogs were used.
2.1 Indian Dairy Industry: An Overview
A dairy is a facility for the extraction and processing of animal milk—mostly fr
om goats or cows, but also from buffalo, sheep, horses or camels —for human cons
umption. Typically it is a farm (dairy farm) or section of a farm that is concer
ned with the production of milk, butter and cheese. As an attributive, the word
dairy refers to milk-based products, derivatives and processes, and the animals
and workers involved in their production: for example dairy cattle, dairy goat.
A dairy farm produces milk and a dairy factory processes it into a variety dairy
products. These establishments constitute the dairy industry, a component of th
e food industry. The dairy industry is a part of the livestock sector of the cou
ntry.
Page 7
Some highlights of the livestock sector are:
The livestock sector contributes over 4 % to the total GDP and about a quarter o
f the GDP from agriculture and allied activities. This sector is a main source o
f family income in the arid and semi-arid regions.
The Eleventh Five Year Plan envisages an overall growth of 6-7 % per annum for t
he sector. In 2006-2007, this sector contributed 101 million tonnes of milk, 51
billion eggs, 45 million kg of wool and 2.3 million tonnes of meat.
Key challenges before Indian Dairy Industry are as follows:
Ensuring Quality Procurement and efficiencies in supply chain Product diff
erentiation and value addition
Milk Production India s milk production increased from 88.1 million tonnes in
2003-04 to 100 million tonnes in 2007-2008.
India is the largest producer of Milk in the World (replacing USA)
Per capita availability of milk presently is 231 grams per day, up from 112 gram
s per day in 1968-69.
India s 3.8 percent annual growth of milk production surpasses the 2 per cent gr
owth in population; the net increase in availability is around 2 per cent per ye
ar.
Page 8
2.2 Operation Flood
Launched in 1970, Operation Flood has helped dairy farmers direct their own deve
lopment, placing control of the resources they create in their own hands. A Nati
onal Milk Grid links milk producers throughout India with consumers in over 700
towns and cities, reducing seasonal and regional price variations while ensuring
that the producer gets a major share of the consumers rupee. The bedrock of Op
eration Flood has been village milk producers‘ cooperatives, which procure milk
and provide inputs and services, making modern management and technology availab
le to members. Operation Flood s objectives included: Increase milk produc
tion ("a flood of milk") Augment rural incomes Fair prices for consumers
Page 9
2.3 National Dairy Development Board( NDDB)
The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB s programmes and activities s
eek to strengthen farmer cooperatives and support national policies that are fav
ourable to the growth of such institutions. Fundamental to NDDB s efforts are co
operative principles and the Anand Pattern of Cooperation. A commitment to help
rural producers help themselves has guided the Dairy Board s work for more than
30 years. This commitment has been rewarded with achievements made by cooperativ
e dairies in milk production, employment generation, per capita availability of
milk, foreign exchange savings and increased farmer incomes. The National Dairy
Development Board (NDDB) has replaced exploitation with empowerment, convention
with modernity, stagnation with growth and transformed dairying into an instrume
nt for the development of Indian farmers. The National Dairy Development Board w
as created in 1964 in response to the Prime Minister Lal Bahadur Shastri s call
to "transplant the spirit of Anand in many other places". He wanted the Anand mo
del of dairy development - with institutions owned by rural producers, which wer
e sensitive to their needs and responsive to their demands - replicated in other
parts of the country. The Board s creation was routed in the conviction that ou
r nation s socio-economic progress lies largely on the development of rural Indi
a. Thus NDDB s mandate is to promote, finance and support producer-owned and con
trolled organizations. NDDB s programmes and activities seek to strengthen farme
r cooperatives and support national policies that are favourable to the growth o
f such institutions.
Page 10
2.4 About the company –Mother Dairy
‘Mother Dairy’ is the largest liquid milk brand in Asia. It started its operatio
ns in 1974 under the Operation Flood programme of the National Dairy Development
Board. Operation Flood is one of the largest dairy development projects in the
world. Mother Diary, Delhi is IS/ISO9002 & IS-15000 (HACCP) certified organisati
on. ‘Mother Dairy’ is the single largest brand of milk in Delhi, India as well a
s in Asia, marketing about 1.9 million liters of milk per day. Mother Dairy comm
ands 40% market share in the organized sector in and around Delhi, primarily bec
ause of consistent quality and service reliability. ‘Mother Dairy’, which market
s over 22 lakh LPD of milk procured from various State federations in Delhi, has
now entered the Mumbai market. In addition to toned milk through Bulk vending,
Mother Dairy also markets Full cream milk, standardised milk, toned milk, double
toned milk and Skimmed milk (lite) in polypacks.
Mother Dairy, Delhi is an IS/ISO-9001:2000 and Hazard Analysis Critical Control
Points (HACCP) and IS-14001:1996 Environment Management System (EMS) Certified o
rganisation.
Page 11
Mother Dairy was the first industry in country to implement ISO-14031(Environmen
t Performance Evaluation) project.
This provides assurance to the consumer in respect of Quality and Safety of prod
ucts manufactured and marketed by Mother Dairy. The National Dairy Development B
oard (NDDB) commissioned Mother Dairy in the first phase of Operation Flood in 1
974. Considering the success of Dairy industry NDDB established Fruit & Vegetabl
e Project in Delhi in 1988 with "SAFAL" as its umbrella brand. With a view to se
parating the commercial activities from developmental activities, the NDDB merge
d Mother Dairy and the Fruit & Vegetable project into a wholly owned company nam
ed Mother Dairy Fruit &Vegetable Ltd (MDFVL) in April 2000. This becomes the hol
ding company of Mother Dairy India Ltd (MDIL)- a marketing company and Mother Da
iry Foods Processing Ltd (MDFPL)- a processing company. The company is a highly
trusted household name for its wide range of milk products like Milk, Flavoured
Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitner, Ghee etc.
Mother Dairy sources its entire requirement of liquid milk from dairy cooperativ
es. The objective of Mother Dairy is to: (a) ensure that milk producers and farm
ers regularly and continually receive market prices by offering quality milk, mi
lk products and other food products to consumers at competitive prices and; (b)
Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.
Page 12
At Mother Dairy, processing of milk is controlled by process automation whereby
state-ofthe-art microprocessor technology is adopted to integrate and completely
automate all functions of the milk processing areas to ensure high product qual
ity/ reliability and safety. In addition to its market leadership in India, Moth
er Dairy is also active in the global arena, exporting its range of dairy produc
ts to various international markets.
2.5 Delhi NCR market:
Delhi National Capital Region (NCR), among the biggest milk markets in the count
ry, is dominated by Mother Dairy currently. Delhi‘s estimated 40 lakh litres per
day (LLPD) organised liquid milk is dominated by Mother Dairy (23 LLPD) and Guj
arat Cooperative Milk Marketing Federation (GCMMF or ‗Amul‘, which sells 10 LLPD
). Besides these two, there is the public sector Delhi Milk Scheme (three LLPD)
and private brands such as ‗Paras‘ and ‗Gopaljee‘ (1.5-2 LLPD each). Amul and ND
DB's non-compete agreement has prevented the former from launching its liquid mi
lk in the Delhi market till 2003.With the non-compete agreement having run out,
Amul launched its fresh milk in Delhi in two variants — full cream and toned — p
riced at par with that of Mother Dairy .Amul, to its delight, has seen the deman
d for its milk going up by leaps and bounds in the city and is now planning to e
nter into alliances with dairies located around Delhi such as Indian Potash and
Modern Dairy to cater to the demand.
Page 13
Chapter 3 METHODOLOGY
Page 14
The earlier chapter dealt with the literature and the conceptual facts that are
needed to be understood to have clarity on this project’s topic. In that chapter
various terms and concepts were explained, this chapter deals with the methodol
ogy that was used while carrying out the project. This chapter would give the de
tailed process how appropriate methods were chosen and designed, what were the t
arget sample and the method that was used for it, various parameters and also th
e data that was collected.
At the beginning of the training process, a brief session was conducted with Mr.
Sandeep Ghosh (Head Sales) at Noida Office, where he provided us with valuable i
nsights of how the company works and what are various distribution channels foll
owed by the company. He also gives us knowledge about the various plants where m
ilk is processed.
In order to get the first hand experience, a brief session was again conducted w
ith Mr. Subhash Sharma (Head Sales- Delhi) and Mr. F.C.Gupta (Head Sales-North D
elhi). From here the main methodology starts as after that various hints, and cl
ues were provided to prepare the questionnaire for the Independent retail stores
, and a format was provided to scan the market.
Page 15
Thus during the entire project following steps were undertaken:
After getting feel of the whole working of the organisation, a questionaire is
drafted depending on the type of research we were asked to do. The market is
surveyed with the help of the distributor as well as independently. I am asked
to scan the whole area i.e. NT-4 and cover all retail shops irrespective of tha
t they are selling Mother Dairy or not and then to convince the non-selling shop
s to start selling the Mother Dairy Milk. So for having a clear idea, I first
visited the retail shops that are covered by the five distributors present in th
e area and then after that I visited the non-selling shops. A total of around
600 retailers are surveyed during the whole research with the help of a question
aire. The various locations surveyed under different distributors are:
Mukesh Sharma: Shakurpur Basti, Kohat Enclave, Lok Vihar, Pitampura, Rani Bagh,
Saraswati Vihar, Sainik Vihar, Mahindra Park, Multani Mohalla, Srinagar, Raja Pa
rk.
Smt.Sunita Sharma: Tri Nagar, Lawrence Road. Choudhary & Sons Co.: Ashok Vihar,
Sindhori Kalan, Sawan Park. Satyveer Singh: Shastri Nagar, Subhadra Colony, Indr
a Lok Radha Krishna ENT: Kishan Ganj, Andha Mugal, Padam Nagar. Geeta Enterprise
s: J.J.Colony
Page 16
3.1 Locale of the study
The study was done in the region NT-4 under the supervision of Noida Office. The
region NT-4 covers areas like Pitampura, Rani Bagh, Lawrence Road, Tri Nagar, K
ishan Ganj, J.J.Colony, Shastri Nagar, and Ashok Vihar.
3.2 Sample collection
All the retailers under region NT-4 were interviewed. 3.2.1 Size of the sample A
round 600 retailers were interviewed. 3.2.2 Method of sampling Convenient sampli
ng is used to do sampling as all the retailers in the region NT-4 are interviewe
d.
3.3 Data collection
Data was collected through two sources: Primary Source: Primary data was collect
ed directly from the retailers through a questionaire. Secondary Source: The sec
ondary source was the daily sales record of all the distributors.
3.4 Data Analysis
Data analysis was done mainly from the data collected through the retailers. The
data collected from secondary sources is also used to analyse on one particular
parameter. Qualitative analysis was done on the data collected from the primary
as well as secondary sources. The next chapter deals with the data analysis and
interpretations that was done for the project after collecting all the data.
Page 17
Chapter 4 Analysis of results
Page 18
The analysis is done on the data collected through a questionaire filled by arou
nd 600 retailers. The data collected focussed on various parameters on which the
whole milk industry depends and furthers the analysis is done on those paramete
rs.
First let us look about the type of retailers surveyed
78
retailers selling MD retailers not selling MD
522
What we can see is that most of the retailers surveyed are currently selling mil
k of Mother Dairy and only 78 retailers not selling mother Dairy milk are survey
ed out of which one retailer is convinced to sell the Mother Dairy milk.
Page 19
Next thing which was reviewed was that how many retailers out of 600 are satisfi
ed with the milk of Mother Dairy. The following result came out:
235
satisfied
365
not satisfied
The results were really shocking as not even 50% of the retailers are satisfied
with the milk of Mother Dairy. The gap between number of retailers satisfied and
number of retailers notsatisfied is too high. So further research was sidelined
to find why so many retailers under one region are not satisfied with the milk
of Mother Dairy. So with the help of distributor and Mother Dairy officials some
parameters emerges which we all feel is important in the milk industry.
Page 20
On the whole 10 parameters were finalised on which the research was done. These
parameters are: Quality Taste Scheme Smell Commission Leakages Dir
ty crates Paint/Board Distributor Timing
Initially MD, Amul and other Brands are rated on the scale of 1-5 to get an over
all view of the market situation and then different parameters are evaluated on
the same scale of 1-5.
Page 21
The result of overall view is:
5 4.5 4
3.5
3 2.5 2 1.5 1 0.5 0 overall MD AMUL Others
What we can see is that Amul leads the pack which is in accordance with the earl
ier result of satisfaction level of retailers as not many of them were satisfied
. It is because Amul has tried to made inroads into the Delhi/NCR market with a
high quality milk which no other brand in the market at this point of time is pr
oviding to its customers.
Now comes the main work, finding parameters which are important and affects the
behaviour and perception of retailers about Mother Dairy. Out of those 10 parame
ters finalised 8 of them were really found important once the survey was over. T
hese parameters are analysed graphically and statistically.
Page 22
4.1 QUALITY
6 5 4 3 2 1 0 Quality MD Amul Others
What we can clearly see is that Amul clearly leads the pack in the terms of qual
ity. To confirm this data we have applied the statistical tool. For applying sta
tistical tool we just took into consideration Amul and MD as they both are the l
eader and successor. This is mainly because MD is 7 state milk whereas Amul is a
one state milk. MINITAB OUTPUT: Objective: To know whether there is any differe
nce in the opinion of retailers on the view of quality of MD and Amul. Hypothesi
s: Ho: There is no significant difference between the response of retailers w.r.
t. Quality Ha: There is a significant difference between the response of retaile
rs w.r.t. Quality
Page 23
Result:
Paired T for MD - AMUL
N MD AMUL
Mean
StDev SE Mean
100 2.78000 1.15976 0.11598 100 4.94000 0.23868 0.02387
Difference 100 -2.16000 1.19528 0.11953
95% CI for mean difference: (-2.39717, -1.92283) T-Test of mean difference = 0 (
vs. not = 0): T-Value = -18.07 P-Value = 0.000
Interpretation:
The P-Value < 0.05 means we have to reject the null hypothesis at 95% confidence
level i.e. there is a significant difference between the response of retailers
w.r.t. Quality.
Page 24
4.2 SMELL
5 4.5 4 3.5 3 2.5 MD Amul Others
2
1.5 1 0.5 0 Smell
What we can clearly see is that smell is most prominent in MD as compared to oth
er competitors. To confirm this data we have applied the statistical tool. For a
pplying statistical tool we just took into consideration Amul and MD as they bot
h are the leader and successor. MINITAB OUTPUT: Objective: To know whether there
is any difference in the opinion of retailers on the view of Smell in MD and Am
ul. Hypothesis: Ho: There is no significant difference between the response of r
etailers w.r.t. Smell Ha: There is a significant difference between the response
of retailers w.r.t. Smell
Page 25
Result: Paired T for MD - AMUL
N MD AMUL
Mean
StDev SE Mean
600 4.49000 0.67131 0.02741 600 1.17000 0.42591 0.01739
Difference 600 3.32000 0.89383 0.03649
95% CI for mean difference: (3.24834, 3.39166) T-Test of mean difference = 0 (vs
not = 0): T-Value = 90.98 P-Value = 0.000
Interpretation:
w.r.t. Smell.
Page 26
4.3 TASTE
6 5 4 3 2 1 0 Taste MD Amul Others
What we can clearly see is that in case of Taste, Amul leads the pack followed b
y MD and the competitors. To confirm this data we have applied the statistical t
ool. For applying statistical tool we just took into consideration Amul and MD a
s they both are the leader and successor. MINITAB OUTPUT: Objective: To know whe
ther there is any difference in the opinion of retailers on the view of Smell in
MD and Amul. Hypothesis: Ho: There is no significant difference between the res
ponse of retailers w.r.t. Smell Ha: There is a significant difference between th
e response of retailers w.r.t. Smell
Page 27
Result: Paired T for MD - AMUL N Mean StDev SE Mean MD 600 2.28000 0.60183 0.024
57 AMUL 600 5.00000 0.00000 0.00000 Difference 600 -2.72000 0.60183 0.02457
95% CI for mean difference: (-2.76825, -2.67175) T-Test of mean difference = 0 (
vs not = 0): T-Value = -110.71 P-Value = 0.000
Interpretation:
w.r.t. Taste.
Page 28
4.4 COMMISSION
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 COMMISSION MD Amul Others
What we can clearly see is that in case of Commission, other brands lead the pac
k followed by Amul and MD. To confirm this data we have applied the statistical
tool. For applying statistical tool we just took into consideration Amul and MD
as they both are the leader and successor. These high values are because MD and
Amul both have the same commission of 80 paise/litre, whereas other brands have
a higher commission as compared to the market leaders. MINITAB OUTPUT: Objective
: To know whether there is any difference in the opinion of retailers on the vie
w of Commission in MD and Amul. Hypothesis: Ho: There is no significant differen
ce between the response of retailers w.r.t. Commission Ha: There is a significan
t difference between the response of retailers w.r.t. Commission
Summer Internship Project/ Sumeet Sharma/FSM Page 29
N MD AMUL 600
Mean
StDev SE Mean
4.01000 1.04485 0.04266 4.08000 0.65903 0.02690
600
Difference 600 -0.070000 1.322125 0.053976
95% CI for mean difference: (-0.176004, 0.036004) T-Test of mean difference = 0
(vs not = 0): T-Value = -1.30 P-Value = 0.195
Interpretation:
The P-Value > 0.05 means we have to accept the null hypothesis at 95% confidence
level i.e. there is no significant difference between the responses of retailer
s‘ w.r.t. Commission.
Page 30
4.5 TIMING
4.5 4
3.5
3 2.5 MD Amul Others
2
1.5 1 0.5 0 Timing
What we can clearly see is that in case of Timing, MD leads the pack with a litt
le difference above other players but Amul really lacks in this field. To confir
m this data we have applied the statistical tool. For applying statistical tool
we just took into consideration Amul and MD as they both are the leader and succ
essor. So this is the parameter in which MD should improve more and try to squee
ze out even single complaint coming in this parameter. MINITAB OUTPUT: Objective
: To know whether there is any difference in the opinion of retailers on the vie
w of Timing in MD and Amul. Hypothesis: Ho: There is no significant difference b
etween the response of retailers w.r.t. Timing Ha: There is a significant differ
ence between the response of retailers w.r.t. Timing
Page 31
Result:
N MD AMUL
Mean
StDev SE Mean
600 4.27000 0.71970 0.02938 600 3.35000 0.96387 0.03935
Difference 600 0.920000 1.310138 0.053486
95% CI for mean difference: (0.814957, 1.025043) T-Test of mean difference = 0 (
vs not = 0): T-Value = 17.20 P-Value = 0.000
Interpretation:
w.r.t. Timing.
Page 32
4.6 ACCESSORIES(PAINT/BOARD)
4 3.5 3 2.5 2 1.5 1 0.5 0 Accessories(Paint/Board) MD Amul Others
What we can clearly see is that in case of Timing, MD leads the pack with a litt
le difference above Amul but other players really lacks in this field. To confir
m this data we have applied the statistical tool. For applying statistical tool
we just took into consideration Amul and MD as they both are the leader and succ
essor. MINITAB OUTPUT: Objective: To know whether there is any difference in the
opinion of retailers on the view of Accessories (Paint/Board) in MD and Amul. H
ypothesis: Ho: There is no significant difference between the response of retail
ers w.r.t. Accessories Ha: There is a significant difference between the respons
e of retailers w.r.t. Accessories
Page 33
Result:
N MD AMUL
Mean
StDev SE Mean
600 3.57000 0.60474 0.02469 600 3.35000 0.96387 0.03935
Difference 600 0.220000 0.955574 0.039011
95% CI for mean difference: (0.143385, 0.296615) T-Test of mean difference = 0 (
vs not = 0): T-Value = 5.64 P-Value = 0.135
Interpretation:
s w.r.t. Accessories (Paint/Board).
Page 34
4.7 DISTRIBUTOR
4.8 4.6 4.4 4.2 4 3.8 3.6 PROBLEM WITH DISTRIBUTOR MD Amul Others
What we can clearly see is that in case of Distributors, Amul leads the pack wit
h a little difference above MD but other players are good in this field. To conf
irm this data we have applied the statistical tool. For applying statistical too
l we just took into consideration Amul and MD as they both are the leader and su
ccessor. MINITAB OUTPUT: Objective: To know whether there is any difference in t
he opinion of retailers on the view of Distributors of MD and Amul. Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t.
Distributors Ha: There is a significant difference between the response of retai
lers w.r.t. Distributors
Page 35
Result:
N MD AMUL 600
Mean
StDev SE Mean
4.52000 0.83111 0.03393 4.65000 0.60672 0.02477
600
Difference 600 -0.130000 0.987281 0.040306
95% CI for mean difference: (-0.209157, -0.050843) T-Test of mean difference = 0
(vs not = 0): T-Value = -3.23 P-Value = 0.086
Interpretation:
s‘ w.r.t. Distributors.
This parameter provides an opportunity to MD to focus more on this as there are
many complaints of Amul distributors in the area and if tried many customers and
retailers can be broken from Amul.
Page 36
4.8 SCHEME
6 5 4 3 2 1 0 Scheme MD Amul Others
What we can clearly see is that in case of Scheme, MD clearly leads the pack, as
its MD only which comes up with the schemes as compared to its competitors. To
confirm this data we have applied the statistical tool. For applying statistical
tool we just took into consideration Amul and MD as they both are the leader an
d successor. MINITAB OUTPUT: Objective: To know whether there is any difference
in the opinion of retailers on the view of Distributors of MD and Amul. Hypothes
is: Ho: There is no significant difference between the response of retailers w.r
.t. Schemes Ha: There is a significant difference between the response of retail
ers w.r.t. Schemes
Page 37
N MD AMUL
Mean
StDev SE Mean
600 4.94000 0.23768 0.00970 600 1.46000 0.49881 0.02036
Difference 600 3.48000 0.51966 0.02122
Interpretation:
w.r.t. Schemes. What we have seen is that its Mother Dairy which is more focusse
d on bringing out new schemes as compared to its competitors, so what I had done
is further researched on this front and the analysis I came up with is as follo
ws:
Page 38
3500
3400
SCHEME
3300
3200 Series1 3100
3000
NO-SCHEME
2900
2800 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45
This graph is formed with the help of average sales of all the distributors in t
he region NT-4 on the daily basis. From the graph what we can clearly see is tha
t during the scheme period as highlighted the Demand is high as compared o the n
on-scheme period as highlighted. During the period of May 01- May 10, 2009 a sch
eme was undergoing named Mother Dairy Full Cream Kharedo- Aur Ban Jao Malamaal
”. During this scheme the sales are high as compared to the non-scheme days.
To further verify our finding we have again applied statistical tool to confirm
our finding:
Page 39
MINITAB OUTPUT: Objective: To know whether there is any difference in the sales
of the distributors during the scheme and no-scheme days. Hypothesis: Ho: There
is no significant difference between the sales of distributor during the scheme
and no-scheme period. Ha: There is a significant difference between the sales of
distributor during the scheme and no-scheme period. Result: Paired T for Scheme
- no-scheme
N Scheme
Mean StDev SE Mean 10 3256.70 86.69 27.41 11.60
no-scheme 10 3101.90 36.68
Difference 10 154.800 90.180 28.517
Interpretation: The P-Value < 0.05 means we have to reject the null hypothesis a
t 95% confidence level i.e. there is a significant difference between the sales
of distributor during the scheme and noscheme period.
Page 40
CHAPTER 5 CONCLUSIONS
Page 41
In the last chapter all the analysis for the project was done with the help of v
arious graphs, charts and different statistical software. This chapter holds the
conclusion of the whole project.
5.1 Concluding observations
This project was about the milk segment of Mother Dairy Pvt. Ltd. that due to in
tense competition from its competitors is continuously losing its market in Delh
i/NCR. So in this project different parameters on which the sale of Mother Dairy
depends are studied and analysed. The final outcome of the project is that the
parameters which hinder the sale of Mother Dairy are low Quality, Smell and Tast
e. Milk market is a totally unpredictable market and the organisation should be
over-cautious of any complaints that come into milk as it includes the sentiment
s of a mother for her kid and she would not prefer to give anything to her kid f
or which she is not 100% satisfied. So the company should take every step possib
le to contain these problems which in some way or the other affects the sale of
Mother Dairy and its retailers.
5.2 Limitations of the study
Since the study is done in only one region of Delhi, these results cannot be gen
eralised on all Delhi basis. Shopkeepers also tend to hide some facts and figure
s due to some reasons which can hinder the results we get from this survey. Stil
l a lot can be done to make the whole system efficient.
Page 42
5.3 Further scope of study
The findings we got from this project will be of great help for the company as t
hese findings will help the organisation for improving their system as well as m
ilk. This kind of research should be done on all Delhi basis so that the organis
ation could get a clear picture of overall Delhi and then they can effectively i
mplement some measures to rectify all the problems that comes up on all Delhi ba
sis.
The next chapter is pretty important for this project as it includes the recomme
ndations that if implemented can solve the company’s problem.
Page 43
CHAPTER 6 RECOMMENDATIONS
Page 44
In the last chapter conclusion was drawn and the business decision about the pro
ject was explained. In this chapter recommendations are given which can be helpf
ul for the company if implemented.
Following are the recommendations to be considered: The organisation should ha
ve a specific distribution model which should be followed necessarily by each di
stributor as at this level not everything is organised and each distributor foll
ows a different model to distribute milk due to which in some areas potential sa
le doesn‘t happens. To keep track of the supply timings and to sustain the qua
lity of milk till it reaches the retailers, company should have a policy for eac
h distributor to keep vehicles which can maintain the temperature of the milk as
maximum distributors are currently doing the distribution with the help of auto
-rickshaws which exposes milk to the hot air and sunlight. As there are many r
egions in the area which consists of low income group, so the organisation shoul
d have a policy to provide them ―Dry ice Boxes which can act as a refrigerator.
These should be used in these areas as they are cheap and convenient to use.
There should be an arrangement made available for the distributors so that they
can cater to sudden demand for the milk so that not even a single chance of sell
ing is missed. The organisation is way ahead in coming out with schemes for th
e distributors and retailers but the organisation should also start coming with
schemes for the customers as it would be a real boost to the sales of Mother Dai
ry milk and also it will help MD get back its lost customers.
Page 45
The organisation should have a consistent replacement policy for all kind of c
ustomers. The organisation should understand that the sale of MD milk is more in
less developed areas so they should take extra care of these kinds of areas and
should act as soon as possible to cater to their problems. The organisation s
hould schedule these kinds of surveys on a more regular basis as at this point o
f time Amul is really capturing the market and the organisation should take viab
le steps to meet the expectations of its customers. The organisation should ch
ange their design of the packets of milk as the organisation should clearly stat
e the bifurcations of various ingredients of milk as Amul presents a strong poin
t to its customers writing there ―No Powder Milk whereas MD milk packets has no
such statements written on its packets.
Page 46
References
www.motherdairy.com www.nddb.org www.indiandairy.com www.wikipedia.com
www.indianmilkproducts.com
Page 47
Annexure
For collecting the data a structured questionnaire for the retailers is prepared
to get detailed and structured information regarding the project. The questiona
ire includes both the closeended as well as open ended questions. Given below is
the questionnaire:
Questionaire for Retail Outlets
1. Booth No:- _____
Distributor Name:- ___________________________
2. Location/Address:- __________________________________________________
3. Avg. Daily Sales in litres for: MD_____ AMUL_____ OTHERS_____
4. How would you rate your present sales? a) Satisfactory: ______ b) Unsatisfact
ory: ______
Page 48
5. If not satisfactory then please choose the reasons from below:
a) Competition from other brands b) Competition from local dairy owners c) Other
s ____________________________________________________________
6. Whom do you consider your major competitor? _________________________________
__________________________________
7. Specify one strength and one weakness of MD milk..... Strength_______________
_______________________________________________ Weakness________________________
______________________________________
8. Specify the commission and other incentives company is providing..... Commiss
ion________ Other Incentives______________________________
9. Specify one strength and one weakness of your competitor..... Strength_______
_________________________________________________ Weakness______________________
________________________________
Page 49
10.Is there any replacement policy being followed in the company..... For leakag
e_________ For Curdling________
11.Which company‘s product u feel has maximum sales, and u feel happy to have th
eir product on your counter? Rate on scale of 1 to 5: MD_________ AMUL________ O
THERS________ 12.Rate the milk on the scale of 1-5 on the following factors: Q
uality MD_____ Taste MD_____ Scheme MD_____ Leakages MD_____ AMUL____ OTHE
RS______ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS______
Commission MD_____ AMUL____ OTHERS______
Page 50
Distributor MD_____ Timing MD_____ Dirty Crates MD_____ Paint/Board MD__
___ Smell MD_____ AMUL____ OTHERS______ AMUL____ OTHERS______ AMUL____ OTHERS_
_____ AMUL____ OTHERS______ AMUL____ OTHERS______
13.Any suggestions you want to give to the company..... ________________________
___________________________________
Page 51
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