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Transcript of discovering new point of differentiation
WH
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09
DIS
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Most profitable strategies are built on differentiation: offering customer something they value that competitors do not have. A company have opportunity to differentiate itself at every point where it come in comes in contact with its customers.
MOTHER DAIRY
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 2
GROUP ASSIGNMENT SUBMISSION
Section A: Group Details
Assignment No.: A5
Batch: SCMLD
session Day & Time: Mon – II
Group Colour: WHITE
Section B: Assignment Details:
Assignment Topic: DISCOVERING NEW POINT OF DIFFERENTIATION.
Training Topic & Session:
FINDIND THE POINT OF DIFFERENTIATION IN A COMPANY & SUGGESTING FURTHER DIFFERENTIATION.
Submission Date & Time: 27-12-2009 ,Sunday - 01:00 p.m.
Section C: Group Members:
No. Name
Div. & Roll No. PC
PN
AB Grade
1 Nisha Sharma
D-49
√
C
2 Nagesh Verma
D-64
√
A
3 Abhishek Sharma
D-62
√
A
4 Megha Verma
D-68
√
A
5 Maganpreet
D-02
√
A
6 Kuldeep Singh
C-37
√
A
7 Puneet khanduja
C-63
√
A
8 Rohit
C-38
√
A
9 Soumitra
C-71
√
A
10 Sumit
C-78
√
A
11 Swati
C-17
√
A
12
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 3
Remarks
- We as a group got a chance to think on the possible ways of differentiating highly commoditized
products. The brainstorming among the group gave deep insights about possible ways of
differentiating.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 4
Chapter 1
Company profile
Mother Dairy – Delhi was set up in 1974 under the Operation Flood
Programme. It is now a wholly owned company of the National Dairy
Development Board (NDDB).
Mother Dairy markets & sells dairy products under the Mother Dairy brand
(like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of
edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables
and fruit juices at a national level through its sales and distribution
networks for marketing food items.
Mother Dairy sources significant part of its requirement of liquid milk from
dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables
from farmers / growers associations. Mother Dairy also contributes to the
cause of oilseeds grower cooperatives that manufacture/ pack the Dhara
range of edible oils by undertaking to nationally market all Dhara products.
It is Mother Dairy’s constant endeavor to
(a) Ensure that milk producers and farmers regularly and continually
receive market prices by offering quality milk, milk 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.
At Mother Dairy, processing of milk is controlled by process automation
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 5
whereby state-of-the-art microprocessor technology is adopted to integrate
and completely automate all functions of the milk processing areas to
ensure high product quality/ reliability and safety. Mother Dairy is an IS/
ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization.
Moreover, its Quality Assurance Laboratory is certified by National
Accreditation Board for Testing and Calibration Laboratory (NABL)-
Department of Science and Technology, Government of India.
Mother Dairy markets approximately 2.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk
has a market share of 66% in the branded sector in Delhi where it sells 2.3
million liters of milk daily and undertakes its marketing operations through
around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy.
The company’s derives significant competitive advantage from its unique
distribution network of bulk vending booths, retail outlets and mobile units.
Mother Dairy ice creams launched in the year 1995 have shown continuous
growth over the years and today boasts of approximately 62% market share
in Delhi and NCR. Mother Dairy also manufactures and markets a wide
range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk,
Lassi & Flavored Milk and most of these products are available across the
country.
The company markets an array of fresh and frozen fruit and vegetable
products under the brand name SAFAL through a chain of 400+ own Fruit
and Vegetable shops and more than 20,000 retail outlets in various parts of
the country. Fresh produce from the producers is handled at the Company’s
modern distribution facility in Delhi with an annual capacity of 200,000 MT.
An IQF facility with capacity of around 75 MT per day is also operational in
Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of
120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies
quality products in the international market. With increasing demand
another state-of-the-art fruit processing plant has been set up at Bangalore
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 6
with fruit handling capacity of around 250 MT per day.
Mother Dairy has also been marketing the Dhara range of edible oils for the
last few years. Today it is a leading brand of edible oils and is available
across the country in over 2,00,000 outlets. The brand is currently available
in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined
Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered
Groundnut Oil.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 7
Chapter II
Product differentiation
Token Milk
Standardized
Milk
Toned Milk
Cow Milk
Full Cream
Milk
Skimmed
Milk
Double
Toned Milk
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 8
1. Products.
Token Milk(With the Magic of
Homogenization):
I) This milk is prepared by
homogenization and is claimed to
be thicker and easier to digest.
II) It consists of Milk Fat-3% and SNF
-8.5%.
III) Fortified with Vitamin A thus helpful for good complexion and
avoiding night blindness.
IV) Targeted upon children and recommended to be give twice a
day.
V) Claimed as the best for preparation of deserts.
VI) Available through Bulk Vending Machines in Delhi and NCR.
Full Cream Milk(For Complete Nutrition):
I) It contains Milk Fat-6% and SNF-9.0%.
II) It is packed with Energy and nutrition
essential for growing kids to keep them
strong from within and grow faster.
III) Targeted upon children and
recommended twice daily.
Standardized Milk(For Balanced Fat):
I) It contains Milk Fat-4.5% and SNF-8.5%.
II) Endorsed as Balanced Milk with balanced amount of cream at
affordable price.
III) Targeted upon families.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 9
Toned Milk(for Balanced Nutrition):
I) It contains Milk Fat-3% and SNF-8.5%.
II) It is claimed as a perfect blend of good
health and wholesome taste.
III) Targeted upon people in search of a
nutritive balanced diet with no compromise
on taste, specially pregnant women.
Double Toned Milk(with Low Fat Contents):
I) It contains Milk Fat-1.5% and SNF-9.0%.
II) Targeted upon all calorie conscious people
who prefer the taste of milk but are wary
of the cream contents.
III) Endorsed as best complement for daily
workout.
Skimmed Milk(Fat Free Option):
I) It contains Milk Fat-0.5% and SNF-8.7%.
II) Targeted upon the senior members of the family who need
nutrients but can’t afford fat to maintain healthy heart and
body.
Cow Milk(Easy to Digest):
I) It contains Milk Fat-3.5% and SNF-8.5%.
II) Also contains Carotene which is a source of Vitamin A,B12 and
Vitamin D.
III) Targeted upon kids for their growth and is claimed as easily
digestible.
UHT Milk(Long Life Milk):
I) Available in two options-Toned Milk(3%),Double Toned(1.5%).
II) Prepared through Ultra Heat Treatment that makes milk germ
free.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 10
III) Targeted basically upon people who are very busy or travelling
and cant treat milk before use , as it can be directly consumed
from the pack without boiling .It saves time.
IV) Available in two types and caters to the choices of people
according to their preference of fat contents.
Chillz (Flavoured Milk):
I) Made from double toned milk.
II) Available in three flavours-Kesar Elaichi, Chocolate,Vanilla.
III) Targeted on people who prefer chilled flavored milk as compared
to the normal milk.
IV) Preferred choice for a light and refreshing break.
2) Company is creating need among the people by creating
awareness about the product consumption. The procedure of
preparation and the effect on nutrition value of milk.
3) They are facilitating people by providing recipies of the deserts
on the website thus helping them with best usage of the product
innovatively.
Eg.Chocolate cookies,ice cream,Iced coffee.
Promotion
1. “Piyo Pure” Campaign & “milk
Campaign”
These are the ongoing campaigns
initiated by Mother Dairy.
“Piyo Pure” campaign promotes its
different types of milk to different sets of
consumers as given in the pictures.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 11
“Milk Campaign” looks forward to position the general product milk
& then appeals the residents to drink Mother Dairy milk.
Previously the campaign the country needs you grow faster campaign,
specially focused at promoting the milk products to parents for the
faster growth of their children.
International Business-
The company caters to the profitable international market. According
to their needs it provides the following products
Tonned Homogenized milk
This milk comes in tetra pack of one liter it last longer than the
ordinary milk. This is meant majorly for Export.
Skimmed milk
This is sold in bigger packs as it is to be transported
internationally. It comes in 25 K.G pack.
Full cream milk powder
This is for those people who want full fat milk. This also comes in
25 K.G pack. This is meant for Export Purposes.
Token milk This milk is promoted as milk that provides real tasty Tea &
Coffee. Apart from this it is also advertised as best for preparing deserts. It
is available only in Delhi and N.C.R
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 12
Part II
Chapter 2
MAPPING THE CONSUMPTION CHAIN
The consumer feels the need majorly in the morning or evening, or in some
cases while travelling.
Thing of buying
the product.
Buys the product
from retailer or
booth
Retailer or booth
Store the
product
Use the
product
Dispose the
product.
Accompanied by
children or family
Storage may
be made
convenient.
Different
type of
usages.
Can be made
ecofriendly and
recyclable
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 13
Is there is a way to differentiate selling milk.
Question 1. What else is your customer doing when they buy milk?
Coming back from jogging.
Coming back from office or work.
Hanging out with friends.
Question 2.whom are they with when they buy milk?
Along with family or friends.
Question 3. Where does your customer buy milk?
Buys from retail shop.
Parlor/booth.
Sports complex.
Milk vending machines at accessible places.
Online subscription/membership.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 14
Question 4. Does your customer have any concern?
Buys in the morning or in the evening.
At the time of parties or functions.
Restaurants, Canteens buy every day.
Long lasting milk for travellers.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 15
Application of article
I.How do people become aware of their need for your product?
1. Mother Dairy milk is very good for growing children and others as if it
contains Omega 3 (Enhances mental intelligence & Physical strength).This kind of
positioning impel the parents to buy tries product.
2. Soya milk is good for health conscious at the same time it is very nutritious.
Such product and positioning will definitely add many customers. Such product
and positioning will definitely add many customers.
3. By providing milk powder (Readymade Sugar and other flavoured added) to
those customers who frequently travel, company can create & address such unfelt
needs.
4. By putting maps, in each shop selling Mother Dairy’s milk and pointing
the locations where other it’s booth parlours or vending machines are available,
We can make the consumer aware of the wide distribution. Consumers can
adjust their consumption according to that. (Just as maps provided in Delhi
metro stations indicating the availability of Refreshment corners).
II.How do consumers find your offering?
1. Mother Dairy can install its vending machines in the places like
Railway stations, Colleges, Sports complexes & Public parks.
2. In this system by putting a coin of Rs.5 (or whatever the case may be)
the person gets flavoured & cold milk glass. This milk will be available in
many verities in many versions, will become very popular.
3. In order to handle the customer queries & record the feedback a toll
free number should be provided.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 16
4. For better information to customers each & every think about the
products should be put on the website.
III.How do consumers make final selection?
1. By helping the customers know the needs of their body, we can make
the selection easier. By putting a weighting machine in every shop/booth,
the customers can check their weight. Then there will be a scale which tells
them whether their body weight is right or not. This information will tell the
customers which milk product they should buy (like Soya milk, High fat
milk, and Toned milk).
2. There should be pamphlets which informs and educates the readers
about the proper diet. When these pamphlets are read by customers they
adopt the proper protocols. These pamphlets will be very creative for
example calendar on one side & Mother Dairy advertisement on the other
side.
IV.How do customers order and purchase your product or
service?
1. There should be online facility by customers can pay for milk for one
month (or as convenient). After this they will get milk delivered at their home.
Along with this they will get a monthly or fortnightly magazine about on
health & diet from Mother Dairy. Because of this customers will be satisfied
and company get chance to advertise.
2. In order to facilitate the industrial customers, they can make the
ordering process easier. In this process the inventory level of the user is
constantly informed to Mother Dairy, whenever it goes below a certain limit it
gets to know the need to replenish the stock.
V.What happens when your product or service is delivers?
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 17
A convenient pack i.e. easier to tear. The existing packs are not convenient to
tear; we have to use a scissor where there are chances of spilling the milk.
VI.How is your product installed?
1. As there will be vending machines so the customers should be
informed about how to use a machine, with the help of flow chart & apart
from this it will show the contents of each kind of milk.
2. The package of milk there will be clear instruction on how tear the
pack & pour the content into a vessel.
VII.How is your product or service paid for?
1. Few days back there was news from Telecom industry that is Telecom
industry is in talks with RBI to facilitate small credit transfer. So if it
happens then Mother Dairy can use this facility in business where by
customers can pay through their mobile phones.
2. In the peak hours it becomes very difficult to manually give the
product to the customers, so in order to give better service there will be a
vending machine so customers can get the milk pack.
3. To facilitate the monthly subscription of milk online payment through
credit card facility should be provided.
4. Providing monthly (or whatever period) subscription cards so as to do
away with the of daily payment, for e.g. Sometimes they do not have change.
VIII.How is your product stored?
There are other industries (edibles & confectionery) which use milk as their
Raw material; Mother Dairy can provide them milk. This way the former can
concentrate on processing & value addition & Mother Dairy can address their
flexible needs as it provides the Dairy solution.
IX.How is your product moved around?
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 18
1. Apart from the house hold uses many youngsters would like to
consume milk. If it is cool & convenient so by introducing pack such as tetra
packs, cans they can cater their needs.
2. Apart from plane milk packets there should be sugar added milk.
3. The company can introduce a milk powder on the lines of Ready tea. A
travelling person can carry it along & use it by adding water in it.
X.What is the customer really using your product for?
1. Milk is used for many purposes in households by informing &
educating them about different Recipes’ we can help them making better use
of product. These recipes’ will be available throw websites & pamphlets.
2. We can provide pictorial representation of recipes’ so that people can
make out it very easily.
XI. What happens when your product is disposed of or no
longer used?
1. There would be dust bins outside the shops or booths bearing the
advertisement of Mother Dairy as many customers buy the milk products &
disposed at the same time, they can throw their tetra pack & plastic bags in
the bins which can be recycle very easily.
2. The packet should be mailed in the way that, it is not disposed by
people; rather they use it in some way or other. For e.g. making a zigzag
puzzle on the back.
DISCOVERING NEW POINT OF DIFFERENTIATION 2009
MOTHER DAIRY | WHITE GROUP 19