Mudit Reliance Dairy Report

73
1 Summer Internship Project Report A study on Distribution Channel Analysis and retailers perception of Reliance Dairy Foods Ltd. Submitted by: Under the Guidance Of MuditChandra(2012MB76) Prof. Peeush Ranjan Agrawal, Mr. Manu Sajnani, Mr. Yogesh Saini School of Management Studies Motilal Nehru National Institute of Technology Allahabad July, 2013

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Internship report

Transcript of Mudit Reliance Dairy Report

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Summer Internship Project Report

A study on

Distribution Channel Analysis and retailers perception of Reliance Dairy Foods Ltd.

Submitted by: Under the Guidance Of

MuditChandra(2012MB76) Prof. Peeush Ranjan Agrawal,

Mr. Manu Sajnani,

Mr. Yogesh Saini

School of Management Studies

Motilal Nehru National Institute of Technology

Allahabad

July, 2013

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DECLARATION

I the undersigned solemnly declare that the report of the project work entitled “A

study on: Distribution Channel Analysis and Retailer’s perception of Reliance Dairy Foods India Ltd. products” is based on my own work carried out during the course of my study under the supervision of Prof. Peeush Ranjan Agrawal, Mr. Manu Sajnani, Mr. Yogesh Saini, I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this institution or any other University.

Date:

Name of Student

Mudit Chandra

SMS, MNNIT

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CERTIFICATE

This is to certify that Mr. Mudit Chandra (2012-14 Batch) a student of School of

Management Studies ,MNNIT Allahabad has undertaken the project on “A study on:

Distribution Channel Analysis of Reliance Dairy Foods India Ltd.”. The survey,

data collection, & analysis work for preparing the project has been carried out by the

student in partial fulfillment of the requirements for the award of MBA, under my

guidance and supervision.

I am satisfied with the work of Mr. Mudit Chandra

Date:

Faculty Mentor’s Name:

Prof. Peeush Ranjan Agrawal,

School of Management Studies, MNNIT Allahabad.

(Signature)

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ACKNOWLEDGEMENT

At the very outset, I would like to express my heartfelt gratitude to “Reliance Dairy

Foods Ltd” for allowing me to do a project on Distribution Channel. And I felt this

projectbto be an interesting and challenging one.

Our thanks are due to Mr. Manu Sajnani who was very kind in explaining how

to use the challenges that lay ahead us.

I feel indebted to Mr. Yogesh Saini for explaining to us the intricacies and

peculiarities of milk business which came handy on various occasions and allowed us

to retain our focus and finish our research with the satisfaction of a job well done.

I would also like to commit our hearty thanks to Mr. Abhishek for their help

and valuable support throughout the project term. it was a great learning experience

to work under their guidelines.

I are extremely thankful to my faculty guide Prof. Peeush Ranjan Agrawal at

School of Management Studies, MNNIT Allahabad for his invaluable guidance and

suggestion.

In the end I would like to say that it was a great experience working on this project.

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EXECUTIVE SUMMERY

All big name of India like Mother dairy, AMUL, SUDHA, PARAG, PARAS are

already in the business to explore their opportunity in the dairy sector. With

emergence of a player like Reliance dairy life has bring aspect in this field. This

study is conducted to Understand Distribution Channel of pouch milk and other

products of Reliance Dairy. This study is conducted with a view to understand the

public perception, the market dynamics that is prevailing the dairy sector and the

potential of pouched milk in this sector.

This research design is exploratory in nature. The basic objective of study is to

understand the Distribution Channel and its effectiveness at one hand and how it can

be improved at second. The research methodology was developed and following the

same research was extended to in-depth interview with the Retailers buying

parameters. The research comprises the focus group interview of Retailers who or the

potential and previous Retailers of the pouched milk of Reliance Dairy.

A structured questionnaire was used to conduct descriptive research. First a pre

test is carried out with the questionnaires. A full scale descriptive research is

conducted in North DELHI with a sample of 100 respondents from various locations

which are Rohini Sector 1, 2, 3,4, 5, 7, 8, 9, 15, 16, 17, Ritala Gaon, Vijay Vihar

Phase I and II, Ranibagh.

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Table of Contents

Chapters Topics Page no.

Chapter- 1 Introduction

1.1 Introduction to Indian Dairy Industry 12

1.2 Key Statistics regarding dairy industry 13

1.3 Milk Processing Industry 15

1.4 New Challenges of Globalization and Trade Liberalization - Perspective 2010

16

1.5 Introduction to Reliance Group 17

1.6 Retailing 20

1.7 The growth drivers 23

1.8 Need of The Study 24

Chapter-2 Literature Review

2.1 Organizational Background 26

2.2 Dairy Business- Overview 28

2.3 What is milk- Composition? 29

2.4 WHOLESOME FOOD FOR ALL 29

2.5 Organization Chart 30

2.6 Definitions and Quality

standards of milk

31

2.7 Supply Chain Management 33

2.8 Major competitor’s analysis 35

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Chapter-3 Research Methodology

3.1 Objective of the study 41

3.2 Research Approach 41

3.3 Purpose 42

3.4 Research Problem 42

3.5 Determining sample design 42

3.6 Questionnaire design 43

3.7 Data collection 43

Chapter -4

(List of Figures)

Data Analysis

And Its interpretation

4.1 Reliance dairy retailers 45

4.2 Cross Tab of Sellers and margin 46

4.3 Cross Tab of Sellers and Promotional schemes 46

4.4 Cross Tab of Sellers and demand 46

4.5 Cross Tab of Sellers and dealer relationship 47

4.6 Cross Tab of Sellers and credit policy 47

4.7 Cross Tab of Sellers and milk 48

4.8 Cross Tab of Sellers and butter milk 48

4.9 Cross Tab of Sellers and curd 48

4.10 Cross Tab of Sellers and ghee 49

4.11 Cross Tab of Sellers and lassi 49

4.12 Other brand milk demand of retailers 50

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4.13 Pie chart of reliance milk demand 50

4.14 Cross Tab of Quantity Demand of Reliance Dairy and Other Brands

51

4.15 Cross Tab of Reliance retailers and Mother dairy stock by them

51

4.16 Cross Tab of Reliance retailers and Amul stock by them

52

4.17 Cross Tab of Reliance retailers and Parag stock by

them

52

4.18 Cross Tab of Reliance retailers and Paras stock by

them

52

4.19 Cross Tab of Reliance retailers and other brands stock by them

53

4.20 Pie Chart of Type of milk sell most

54

4.21 Pie Chart of timely delivery of milk

55

4.22 Pie Chart of timely delivery of dahi

55

4.23 Pie Chart of timely delivery of Masala Chaach

56

4.24 Pie Chart of timely delivery of Buttermilk

56

4.25 Cross Tab of Reliance retailers and storage

equipment provided by mother dairy

57

4.26 Cross Tab of Reliance retailers and storage

equipment provided by Amul

57

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4.27 Cross Tab of Reliance retailers and storage

equipment provided by Paras

58

4.28 Cross Tab of Reliance retailers and storage equipment provided by Reliance

58

4.29 Cross Tab of Reliance retailers and storage equipment provided by Other companies

58

4.30 Pie Chart of mother dairy providing storage equipment

59

4.31 Pie Chart of Paras providing storage equipment

60

4.32 Pie Chart of rating of reliance damage policy 61

4.33 Pie Chart of rating of reliance employee behavior 62

4.34 Pie Chart of rating of reliance milk products quality 63

4.35 Pie Chart of rating of reliance margin 64

4.36 Pie Chart of rating of reliance dairy schemes 65

4.37 Pie Chart of rating of reliance timely information 65

Chapter -5 Recommendation And Suggestions 67

Conclusion 69

References 70

Questionnaire 71

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Chapter 1

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1.1 Introduction to Indian Dairy Industry

During the last three decades, our nation’s milk producers have transformed Indian

dairying from stagnation to world leadership. During this period and before, science

and technology(S&T) have played a critical role in supporting our farmer’s efforts.

During the next decade, that role will be further enhanced as we face a number of

new challenges. The dairy cooperative movement has been central to the

development of dairying in India. The inspiration for this movement was the success

of the Khaira District Cooperative Milk Producers Union better known as Amul.

Founded in 1946 in response to the exploitation of districts dairy farmers,

In the year 2006-07the total milk production in the country was over 94.6 million

tonnes with a per capita availability of 229 gms per day. The industry had been

recording an annual growth of 4% during the period 1993-2005, which is almost 3

times the average growth rate of the dairy industry in the world. Milk processing in

India is around 35%, of which the organized dairy industry account for 13% of the

milk produced, while the rest of the milk is either consumed at farm level, or sold as

fresh, non-pasteurized milk through unorganized channels.

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh,

Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of

milk products is obviously high in these milk surplus States. Exports of dairy

products have been growing at the rate of 25% per annum in the terms of quantity

terms and 28% in terms of value since 2001. Significant investment opportunities

exist for the manufacturing of value-added milk products like milk powder, packaged

milk, butter, ghee, cheese and ready-to-drink milk products. India has emerged as the

largest milk producing country in the world with present level of annual milk

production estimated as 94.5 million tonnes. We expect a production level of 135

million tonnes by the year 2015. India has a large livestock population base

constituting 278 million livestock including 180.5 million cattle, 82.8 million

buffaloes, 4 million sheep and 9.2 million goats. The livestock population is

projected to increase to 322 million by the year 2015.

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1.2 Key statistics regarding Indian dairy Industry

Annual Milk Production (2008‐9) 108.5 Million Tonnes

Annual Export Volume (2008‐9) 70,790 Tonnes

Share of world dairy production (2010) 15%

Share of world trade in dairy products (2003)

0.3%

Milking herd size 115.5 million

Number of milk producers’ cooperative unions

170

Number of local dairy cooperatives 96,000

Number of state cooperatives 15

Per capita consumption (Drinking milk) 250g/day

Estimated percentage of dairy farmers in organised sector

40‐50%

% of dairy produce consumed by unorganised sector

65%

Dairy industry workforce 75 million women/ 15 million men (Source:

http://cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf)

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1.3- Milk Processing Industry

The milk processing industry is small compared to the huge amount of milk

produced every year. Only 10% of all the milk is delivered to some 400 dairy

plants. A specific Indian phenomenon is the unorganized sector of milkmen,

vendors who collect the milk from local producers and sell the milk in both, urban

and non-urban areas, which handles around 65-70% of the national milk

production. In the organized dairy industry, the cooperative milk processors have a

60% market share. The cooperative dairies process 90% of the collected milk as

liquid milk whereas the private dairies process and sell only 20% of the milk

collected as liquid milk and 80% for other dairy products with a focus on value-

added products.

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1.4 New Challenges of Globalization and Trade Liberalization - Perspective 2010

The NDDB has recently put in place .Perspective 2010.to enable the cooperatives

to meet the new challenges of globalization and trade liberalization. Like other

major dairying countries of the world, the Indian cooperatives are expected to play

a predominant role in the dairy industry in future as well. However, India is in the

mean time, attaining its past glory and is once again becoming .DOODH KA

SAGAR.. But, what percentage of this SAGAR is handled by the cooperatives -

just a little over 7%. Since liberalization of the dairy sector in 1991, a very large

number of private sector companies / firms have, despite MMPO, established dairy

factories in the country. The share of the total milk processing capacity by private

sector is 44% of total installed capacity of 73 MLPD (Million Litres Per Day) in

the country. Therefore, the total share of the organized sector, both cooperatives as

well as the private sector is barely 12%. What is, therefore, disquieting is that as

much as 88% share of the total milk production is commanded by the unorganized

sector - who specializes in selling sub-standard, unpasteurized milk more often

than not adulterated with harmful chemicals.

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1.5 Introduction to Reliance Group

Late Dhirubhai Ambani founded Reliance as a textile company and led its

evolution as a global leader in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies

and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to

dream and learn to excel'.

The US$ 20 billion Reliance Group is a living testimony to his indomitable will,

single-minded dedication and an unrelenting commitment to his goals.

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"Between my past, the present and the future, there is one common factor:

Relationship and Trust. This is the foundation of our growth."

Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

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Board of Directors of Reliance Industries Limited

Mukesh D. Ambani

Chairman & Managing Director

Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of

Bombay and pursued MBA from Stanford University, USA. He is the son of Mr.

Dhirubhai H. Ambani, Founder Chairman of the Company.

Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated Reliance's backward

integration from textiles into polyester fibers and further into petrochemicals. In

this process, he directed the creation of several new and large world-class

manufacturing facilities involving diverse technologies that have raised Reliance's

petrochemicals manufacturing capacities from less than a million tones to over

thirteen million tonnes per year. He directed and led the creation of the world's

largest grassroots petroleum refinery at Jamnagar, India, with a present capacity of

660,000 barrels per day (33 million tonnes per year) integrated with

petrochemicals, power generation and port and related infrastructure. He had set up

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the Reliance's communications technology initiative which is the largest and most

complex information and communications technology initiative in the world.

Mr. Ambani is steering Reliance's initiatives in a world scale, offshore and onshore

oil and gas exploration and production program, creation of a pan-India petroleum

retail network and setting up of a new export oriented refinery through RIL's

subsidiary Reliance Petroleum Limited (RPL) with a capacity of approximately

580,000 barrels per stream day integrated with a 0.9 MMTPA polypropylene plant.

1.6 RETAILING

Reliance Industries Ltd will make an equity investment of up to Rs 10,000 crore,

"over time," in a new company, Reliance Retail Ltd that will manage the group's

new retail initiative.

The size of the equity investment is in view of "the overarching nature of this

initiative," said Mr. Mukesh Ambani, Chairman, RIL, at the company's AGM here

on Tuesday.

The new company will spend more than Rs 25,000 crore in the years to come, he

said, outlining Reliance's giant ambitions in organized retailing.

Reliance Retail Ltd (RRL) will be a wholly owned subsidiary of Reliance

Industries, except for a holding in it through employee stock options.

Its retail outlets will sell food, groceries, apparel and footwear, lifestyle and home

improvement products, electronic goods and farm implements and inputs. They

will also offer products and services in energy, travel, health and entertainment. In

addition to this, partnerships would be developed to bring the best of global luxury

brands to India as well.

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RRL's footprint will cover 1,500 Indian cities and towns and its outlets will be of a

varied format, a mix of neighborhood convenience stores, supermarkets, specialty

stores and hypermarkets.

"Conceptually, Reliance is creating a virtuous circle of prosperity by bringing

farmers, small shopkeepers and consumers in a win-win partnership," said

MrAmbani, who called this new business of Reliance's a "defining point in its

history."

The retail business would partner with farmers, logistics operators, small

shopkeepers and traders and enhance their purchasing power, he said.

A supply chain, logistics and information technology infrastructure would string

the whole plan together. RRL will also develop linkages and opportunities in

agriculture and food processing that would support the organized retailing

business.

The new business would generate one million new jobs, said Mr. Ambani. Already

the initiative has 2,000 professionals on the job, their numbers would swell to

10,000 as it progresses. Over the next few years they will be joined by another five

lakh, he added.

Organized retailing, along with the next generation distribution system, is at the

core of the transformational initiative at Reliance, he said.

Noting that several sectors are on the threshold of expansive growth, Mr. Ambani

said Reliance would open up three broad fronts for itself: urban infrastructure and

Special Economic Zones, and life science and healthcare. Reliance is also

developing options for cross border acquisitions in existing and new businesses, he

said.

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The mega investment plan announced by RIL comes at a time when global retail

majors are waiting in the wings to gain an Indian entry.

It would also bring a new level of competition to the existing players who do not

have the financial strength of Reliance.

India is witnessing an unprecedented consumption boom. The economy is growing

at a higher phase and the resulting improvements in income dynamics along with

factors like favorable demographics and spending patterns are driving the

consumption demand.

Indian Retail Industry is ranked among the ten largest retail markets in the world.

The attitudinal shift of the Indian consumer in terms of "Choice Preference",

"Value for Money" and the emergence of organized retail formats have

transformed the face of Retailing in India. The Indian retail industry is currently

estimated to be a US$ 200 billion industry and organized Retailing comprises of 3

per cent (or) US$6.4 Billion of the retail industry. With a growth over 20 percent

per annum over the last 5 years, organized retailing is projected to reach US$ 23

Billion by 2010.

The Indian retail industry though predominantly fragmented through the owner -

run " Mom and Pop outlets" has been witnessing the emergence of a few medium

sized Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop,

Westside (Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart,

Carrefour SA, Europe's largest retailer and Tesco Plc, the UK's largest retailer,

were keen to enter this growing market, despite the Indian retail sector being

closed to foreign direct investment (FDI). In February 2006, the Indian

Government had announced its decision to allow FDI of up to 51% in single brand

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retailing. Wal-Mart had said that India was high on its priority and that it was

closely monitoring the Government's policy on FDI in the retail sector.

1.7 The Growth Drivers

The Indian Retail growth can be attributed to the several factors including

Demography Dynamics: Approximately 60 per cent of Indian population below

30 years of age.

Double Incomes: Increasing instances of Double Incomes in most families

coupled with the rise in spending power.

Plastic Revolution: Increasing use of credit cards for categories relating to

Apparel, Consumer Durable Goods, Food and Grocery etc.

Urbanization: increased urbanization has led to higher customer density areas thus

enabling retailers to use lesser number of stores to target the same number of

customers. Aggregation of demand that occurs due to urbanization helps a retailer

in reaping the economies of scale.

Covering distances has become easier: with increased automobile penetration and

an overall improvement in the transportation infrastructure, covering distances has

become easier than before. Now a customer can travel miles to reach a particular

shop, if he or she sees value in shopping from a particular location.

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INTRODUCTION ON THE BASIS OF PROJECT

1.8 Need of the study :

The project was an attempt to know the reasons behind poor sale of milk of

Reliance dairy in Delhi. Despite of being the first in the industry and having the

first mover advantage and the brand name, the sale has fallen down incredibly due

to competitors like Amul, Mother dairy , Paras and others. There is a need to

revamp the company’s image and reposition it all over again in the mind of the

consumers. In doing so firstly the grievances of the distributors and the retailers

was required to be solved in order to encourage them for push sales. Secondly a

study of consumer’s decision making factors was required in order to understand

their priorities which can be worked upon. For this purpose a research is conducted

to find out the current market scenario.

With the help of the responses given by the distributors and data analysis, the

company will be able to understand its strengths, weakness, opportunities and

threats. The findings of the research will assist the company to take right decisions

to increase the turnover and market share.

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Chapter-2

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2.1 ORGANISATIONAL BACKGROUND

Reliance Dairy Foods Ltd. was setup in the year 2007 with the vision of becoming

a market leader in the dairy industry. Reliance dairy is the subsidiary and part of

Reliance Retail business of Reliance group. The Reliance Dairy Foods Limited

(RDFL) business was initially launched to ensure regular supply of superior quality

milk & milk products to its consumers through its retail outlets by establishing

direct link with the milk producers in the villages. But now company is fully

launching and selling its products in the market like amul and mother dairy. The

Company presently operates in Andhra Pradesh, Haryana, Tamil Nadu,

Maharashtra, Delhi, Punjab, and Rajasthan

The range of products in the RDFL portfolio include Dairy Life Milk, Dairy Life

Paneer (cottage cheese), Dairy Life Dahi(yogurt), Ghee (clarified butter) - Dairy

Life Ghee( premium Buffalo Ghee) , Dairy Pure Ghee (Buffalo Ghee) , Dairy Pure

Cow Ghee and Chaach (Butter Milk).

Key points covered under the working of Reliance dairy would include:

Milk Procurement

o Remunerative prices to farmers.

o Latest technology at village level for transparency in testing and weighing.

o Sure and secured timely milk payments.

o Assured lifting & direct buying of milk from the farmers throughout the year.

o Employment opportunity for rural youths.

o Providing technical inputs at most competitive prices e.g. cattle feed,

productivity enhancement feed supplements, cattle insurance, cattle loans etc.

o Sale of other milk products through VSP’s to supplement farmer’s income.

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Milk Marketing

o Quality aspect of milk reaching the consumers - procured directly from local

farmers, processed under hygienic conditions and undergone strict quality

assurance checks. .

o Milk made available to consumers by quick chilling in shortest possible time

after milking.

o Assured Safe milk for children and entire family.

o Available in all variants and packaging sizes.

o Easily available at nearest Reliance Store as well as with the nearest milk dealer

o Timely supplies of stocks in trade.

o Good range of Products such as Dahi, Chhach, Lassi, Paneer and Ghee in

addition to liquid milk.

Reliance Dairy Foods Limited

Mission Statement

"Bring prosperity to millions of Indian producers, especially our farmers, by

providing the most attractive returns for their effort".

Vision

Become Number One Dairy Brand in the Country by year 2011.

Ensure cost & quality competitiveness through adoption of best technology &

business practices

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Maximizing returns to stake holders, farmers and value for money to the consumer.

2.2 Dairy Business- Overview

For marketing of surplus milk & milk products. The Dairy Business Chain is

being set up to provide back-end support to the Reliance Retail Business & also

to establish appropriate network

The Objectives of the Dairy Business are as follow

Sourcing of milk directly from the Farmers

Establishing necessary sourcing infrastructure by adopting modern

technology with focus on quality through integration with Agri-Business

and also otherwise where integration is not feasible

Arranging necessary Input Services to the Milk Producers with the

support of the Agri-Business

Developing a value chain from milk sourcing to retail market to meet the

customer's needs of milk & milk products, involving establishing state-

of-the-art processing / production infrastructure and supply chain

Business focus on high margin Liquid Milk and Fresh Products, with

thrust on sale of other Milk Products in consumer packs

Trading of surplus commodities in the local market and also tap in to

export market

Build Reliance as a National & International Brand in Dairy

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2.3 What is milk- Composition?

Fat

-True fat, Vitamins, Carotene, Cholesterol and Lecithin.

Solids Not Fat (SNF)

- Lactose

- Proteins and Nitrogenous substances.

- Minerals

- Minor constituents

Pigments, Vitamins, Enzymes, Dissolved Gases

Water

2.4 WHOLESOME FOOD FOR ALL

Product Mix

Liquid Milk Toned Milk Fat 3.0%, SNF 8.5%

Std Milk Fat 4.5%, SNF 8.5%

Full Cream Milk Fat 6.0%, SNF 9.0%

Double Toned Milk Fat 1.5%, SNF 9.0%

Skim Milk Fat 0.05%, SNF 8.5%

Fresh Milk Products Dahi / Curd

Butter Milk

Lassi

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2.5 Organization Chart

Chief Executive - Dairy Business

State Head - Dairy Business

Head Procurement Head Milk Marketing Head Plant/ Processing

Zonal Mangers City Heads Processing

District Mangers Pilot Salesmen Quality

Area Mangers

MCC Incharges

Facilitator’s

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2.6 DEFINITIONS AND QUALITY STANDARDS OF MILK

A .Milk

Milk is the normal mammary secretions derived from complete milking of healthy

milk animal. It should be free from colostrum.

B. Pasteurized milk

Milk or a milk product which is heated to at least 63 for 30 minutes, or to at least

71.5 c, not less than 15 Seconds, or to an approved temperature time combination

that will serve to give a negative phosphates test Immediately a after processing.

All pasteurized milk to a temperature of 10 c, or less, and it should be maintained

until delivery.

Milk products means standardized milk, recombined milk, toned milk, double

toned milk, skimmed milk and flavored milk in this instance.

C. Sterilized milk

Milk heated to a temperature of 115 c for 15 Minutes, or 145c for 3 Seconds, or

equivalent approved temperature time combination, to ensure preservation at room

temperature, for a period of not less than 15 days from the date of manufacture.

Sterilized milk shall be sold either in sealed container in which the milk was

sterilized and in such case the turbidity test shall be negative, or in sterile

containers packed under aseptic conditions.

D.Flavored milk

This may contain nuts, chocolate, coffee, or any other edible flavors, edible food

colors, and cane sugar. Flavored milk should be pasteurized, sterilized or boiled.

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E.Standardized milk

Standardized milk means cow milk or buffalo milk or goat milk or a combination

of any of these milks that has been standardized to a minimum of 4.5% FAT and

8.5% SNF by the abstraction and/or addition of milk fat or by the adjustment of

milk solids: standardized milk should be pasteurized and should be show negative

phosphates test.

F. Toned and double toned milk

Toned milk means the products prepared by admixture milk or buffalo milk or both

with fresh skimmed milk, or by admixture of cow or buffalo milk or both with

non-fat-milk solids or milk powder and water, or by partial abstractions and

addition of fat from to milk. It should be pasteurized and should show a negative

phosphates test. When fat or dry non-fat-milk solids are used, it should be ensured

that the products remains homogeneous and no deposition of solid stakes place on

standing. Toned milk shall contain not less than 3% FAT and 8.5% SNF and

double toned milk contain not less than 1.5% FAT and 9% SNF.

G. Skimmed milk

Skimmed milk means the products prepared from milk from which almost all the

milk fat has been removed mechanically. It shall have not more than 0.5% FAT

and not less than 8.7% solids-not-fat.

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2.7 Supply Chain Management:-

1) Milk Procurement: - Reliance Dairy sources its requirement of liquid milk

from dairy co-operatives and producer institutions. Milk is received from farmer

cooperatives through insulated tankers at 2°C temperature in order to retain its

freshness.

2) Milk distribution: -Tankers in the morning and in the evening bring in milk

from the regional collection centers. After collection the same tankers are utilized

for the delivery of the processed milk to the distributors. Reliance Dairy has about

51 Distributors in the New Delhi. Each of these LAD‟s (Local area distributor)

places their demand by raising an invoice one day in advance. The demand is also

calculated using the „Calendar‟ Scheme, in this depending on the pre-calculated

seasonal demands the outlets place their orders accordingly. In order to satisfy

immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres

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each day so that they can be mobilized to cater the demand in an area. To

coordinate its operations all the tankers are provided with a buffer stock of 500

litres each day so that they can be mobilized to cater the demand in an area. To

coordinate its operations all the tankers are equipped with HAM radios.

3) Processing:-

At reliance dairy, the processing of milk is done by process automation whereby

state of the art microprocessor technology is adopted to integrate and completely

automate all functions of the milk processing areas to ensure high product

quality/reliability and safety. There are four ways of milk processing –Firstly,

Clarification, in which milk is spun at very high speed, removing all dust particles

that are invisible to the naked eye.

Secondly, Standardization which help to maintain uniformity by raising or

lowering its fat and SNF (solid not fat) percentage to a desired levels, so as to

deliver milk to consumers as per prescribed PFA norms.

Thirdly, it is Homogenization which improves palatability of milk and Finally,

Pasteurization, which kills all pathogenic bacteria present in the milk and thus

making it safe for consumption.

4) Quality Control:-

Stringent quality control methodologies are employed in Reliance Dairy.

a) The milk is tested for adulterations and quality at the time of collection from the

farmers.

b) The Milk that comes from the collection points to the Reliance Dairy plant is

ensured to have a temperature of not more than 4°C and is subjected to 15 product

and quality checks.

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35

c) The Milk quality is checked repeatedly after each processing phase and the

temperature is judiciously maintained less than 4°C always.

d) Before the milk leaves the plant for the delivery/distribution outlets the milk is

tested again.

e) The temperature of milk in the delivery trucks is always maintained less than

4°C.

f) All the trucks that deliver milk have specified guidelines to bring back 100 litres

of milk after distribution. This is done in order to test the delivered milk and to

ensure that the tankers are not adulterated during distribution.

g) Since all the employed processing procedures are automated, no contamination

by human hands takes place.

h) To ensure milk freshness the collection and distribution points are always

chosen such that the travel time between them is always less than 36 hours.

2.8 MAJORCOMPETITOR ANALYSIS

Amul is the acronym for Anand Milk Union Limited, a dairy cooperative company

in Gujarat, India that markets a wide range of products including milk powders,

milk, butter, ghee, cheese, chocolate, Shrikhand, Gulab Jamun, ice cream, cream,

and others making it the largest food brand in India. Amul has spurred the White

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Revolution of India, which has made India the largest producer of milk and milk

products in the world. It is one of the best examples of co-operative achievement in

the developing economy. Presently Amul has a 40 % market share in the branded

milk segment.

Product:-

The varieties of Amul milk are :

Amul Toned Milk 3% fat

Amul Full Cream Milk 6% fat

Amul Double Toned Milk 1.5% fat

At Amul skim milk powder is procured from the cooperatives of Gujarat which is

much superior in quality when compared to the cooperatives of Delhi leading to

better quality of products

Price

When compared to Mother dairy, the distributors margin of Amul is .50p/ltr

whereas reliance gives .60Rs/ltr .In case of retailers Mother dairy has fixed margin

of 0.80 paise/lt in every part of Delhi whereas Reliance gives its Retailers a margin

of 1.20 Rs/lt. However Amul gives different margins depending upon the location

and sale of the retailer which becomes a great incentive to sale. The price of the

milk to the end consumer is however similar to reliance Dairy.

Place

The availability of milk is a major concern among the consumers. Amul with its

vast distribution network has enhanced the market and is responsible for its

growth. Amul has made pouched milk available in almost all suburbs of

Delhi where we cannot find Reliance dairy even today. Reliance dairy is not

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37

able to cater to those markets because their size is comparatively small and

with the current retailers and distributors margin there is hardly any profit left to

them because the expenditure is much more.

Promotion

Amul has a great brand image in the mind of the customer .Their expert marketing

and advertising strategies add all the more to the sales.

Mother Dairy was set up in 1974 under the Operation Flood Program me. A wholly

owned company of the National Dairy Development Board (NDDB). Mother Dairy

manufactures, markets & sells milk and milk products under the Mother Dairy

brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of

edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed

Fruit & Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging

and fruit juices at a national level through its sales and distribution networks for

marketing food items.

Product:-

The varieties of Mother milk available in Delhi are:

Mother Toned Milk

Mother Full Cream Milk

Mother Double Toned Milk

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Price

The distributors margin of Mother is 1Rs/ltr . Mother dairy has fixed margin in

every part of Delhi. However Mother gives different margins depending upon the

location and sale of the retailer which becomes a great incentive to sale. The price

of the milk to the end consumer is however similar to Amul Dairy.

Place

The availability of milk is a major conce

vast distribution network has enhanc

growth. Mother has made pouched milk available in

Promotion

Mother Dairy has a great brand image in the mind of the customer .Their

marketing and advertising strategies add all the more to the sales.

PARAS’s history reflects back to 1960, when the procurement of milk started with

60 Liters of milk. The only fundamental that worked right from day one is the

quality, which got reinforced everyday of progress. Ch. Ved

promoter of the company is one of the connoisseurs in the dairy farm industry. Ved

Ram & Sons started as the

established in 1987 under company's name VRS Foods Limited

The distributors margin of Mother is 1Rs/ltr . Mother dairy has fixed margin in

every part of Delhi. However Mother gives different margins depending upon the

the retailer which becomes a great incentive to sale. The price

of the milk to the end consumer is however similar to Amul Dairy.

The availability of milk is a major concern among the consumers. Mother

vast distribution network has enhanced the market and is responsible for its

growth. Mother has made pouched milk available in almost all suburbs of

Mother Dairy has a great brand image in the mind of the customer .Their

marketing and advertising strategies add all the more to the sales.

PARAS’s history reflects back to 1960, when the procurement of milk started with

60 Liters of milk. The only fundamental that worked right from day one is the

quality, which got reinforced everyday of progress. Ch. Ved Ram, the founder and

company is one of the connoisseurs in the dairy farm industry. Ved

partnership company in April 1986. The

established in 1987 under company's name VRS Foods Limited.

38

The distributors margin of Mother is 1Rs/ltr . Mother dairy has fixed margin in

every part of Delhi. However Mother gives different margins depending upon the

the retailer which becomes a great incentive to sale. The price

rn among the consumers. Mother with its

ed the market and is responsible for its

almost all suburbs of Delhi.

Mother Dairy has a great brand image in the mind of the customer .Their expert

PARAS’s history reflects back to 1960, when the procurement of milk started with

60 Liters of milk. The only fundamental that worked right from day one is the

the founder and

company is one of the connoisseurs in the dairy farm industry. Ved

rship company in April 1986. The first unit was

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39

At the heart of the entire network of Paras are hundreds of Village level collection

centers covering 5000 villages across Western U.P., Haryana, Rajasthan,

Maharashtra and Gujarat from where the milk is collected every day. The farmers

are not only helped in Finance but also in buying cattle, feed, providing veterinary

services and other infrastructure supports. The trust of the farmers has grown

stronger and so has the network.

Product

The varieties of Paras milk available in Delhi.

Full Cream Milk Toned Milk Double Toned Skimmed milk (Nandan) Tea Special Milk Paras Health (Homogenized Standardized Milk)

Place and presence

Paras have a great presence in the Delhi and NCR regions and they have created

their own Brand Image in the mind of their consumers. They command a set base

of consumers demand and they are considered as the trusted name of quality.

Promotions

Paras have a great way of operating in the market and they have unique

promotional measures unlike others. They provide coupons with each crate of

milk to distributors of set amount through which they get discount on selling the

crates. They are also providing cold storage facility to the retailers and distributors

which does not found in reliance dairy.

Price: The pricing and margin of Paras products and milk is similar to Amul.

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Chapter-3

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RESEARCH METHODOLOGY

3.1 Objective of the study:-

The Primary objectives of the study:

1. The main objective of this project is to identify the reasons for decreasing

market share of Reliance Dairy and to find out the ways to increase the sales again.

2. To study the distribution channel of Reliance Dairy

3. To identify the issues related to Reliance Dairy retailers and distributors

4. To get the retailers feedback from specific regions for poor sale

5. To add up new retailers in the area.

Secondary Objective of the study:

1.To find out the total demand of reliance milk at dairy in particular area

2.To find out the market leader of dairy product in Delhi NCR area

3.To find out the most profitable brand in dairy product

4.To focus the procurement behavior dairy product of brand

3.2 Research Approach:

One had to depend mainly on primary data as first had knowledge was required

about market position of various brands in the milk and milk products market. So

our actual study was conducted in 3 stages:

First we discussed with our guiding officers on the various parameters of the

project. We also talked informally with some consumers and retailers to have some

preliminary idea.

Next questionnaire was prepared based on prior discussion.

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42

Lastly the final questionnaire was prepared with various modification to the

previous questionnaire.

Various factors were identified to carry out the survey through an analysis. This

was further cleared into a list of questions in a questionnaire (refer annexure).

Once framed and properly fragmented, these were individually filled for a process

of Descriptive Research. A cross-board survey was undertaken involving Retailers

of milk in North Delhi. This gave a congregated set of 100 responses which were

then segregated and keyed into SPSS. SPSS was extensively used to narrow down

the factors into components.

3.3 Purpose

The basic purpose of this research is to find out the effectiveness of the distribution

channel of reliance milk and find out its level of consumption in the area of the

study. Apart from it was also decided to find out the consumption of the other

brands milk, so that market share of reliance dairy can be determined and its

distribution can be increased.

3.4 Research Problem

The major problem that has been faced is the lower availability of the number of

dairy shops in the research area assigned to us. In the market area the dairy shops

were widely spread and it became a hectic process to cover such long distances to

conduct survey.

3.5 Determining sample design

As it was the study on the analysis of the distribution channel, primary data i.e. the

responses for conducting the research was collected out of various regions in the

North Delhi. This data was collected from existing retailers, previous retailers, and

the distributors of reliance dairy.

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43

The approach is to collect maximum responses keeping in mind that the quality

and effectiveness of data should be maintained.

At the end I was able to collect 100 responses and from various location and base

my findings on these responses.

3.6 Questionnaire design:

A structured Questionnaire was designed in consultation with the experts of Sales

manager of Reliance Dairy in such a manner that it facilitate the respondents to

reveal maximum information.

3.7 Data collection:

The data collection tool is a well- designed questionnaire. It is designed carefully

to collect data and information. In addition to know trends and opinions of the

sample of the study, it answers the questions of the study, and achieves the

objectives of the study.

The primary data was collected by using questionnaire. The questionnaire has 18

Questions regarding company’s policies, schemes, products and distribution.

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Chapter-4

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Data Analysis:

Analysis for the project topic is to be conducted with the help of the software

“SPSS” that will bring towards us the insight into various hidden facts that may

contribute towards the growth of Organisation.

This analysis consists of both qualitative and quantitative methods of research

which is to be interpreted with the combination of practical facts that are found

during the field work.

Fig. 4.1- Reliance dairy retailers

The figure above reveals that the existing retailers of reliance dairy is 67% of the

number respondents.

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46

Fig. 4.2 Cross Tab of Sellers and margin Above figure reveals that reliance retailers give utmost importance to the margin that is provided to them by company.

Reason for Selling Reliance Dairy

Products? promotional scheme

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 53 14 67

previous seller 31 2 33

Total 84 16 100

Fig. 4.3 Cross Tab of Sellers and Promotional schemes

Above figure reveals that reliance retailers give utmost importance to the schemes

that are provided to them by company.

Reason for Selling Reliance Dairy

Products? demand

Total yes no

Are you currently Selling any

Reliance dairy products?

yes 21 46 67

previous seller 13 20 33

Total 34 66 100

Fig. 4.4 Cross Tab of Sellers and demand

Reason for Selling Reliance Dairy

Products? margin

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 64 3 67

previous seller 31 2 33

Total 95 5 100

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Above tabulation shows that retailers are not keeping the products because of the

demand of the products. This is the place where company have to improve its

position and work hard to have brand awareness among the customers so that they

automatically demand product from retailers.

Reason for Selling Reliance Dairy

Products? dealer relationship

Total yes no

Are you currently Selling any

Reliance dairy products?

yes 36 31 67

previous seller 6 27 33

Total 42 58 100

Fig. 4.5 Cross Tab of Sellers and dealer relationship

Above figure reveals that dealer or distributor relationship also plays a pivotal role

for retailers to keep the product.

Reason for Selling

Reliance Dairy Products?

credit policy

Total no

Are you currently Selling any Reliance

Dairy products?

yes 67 67

previous seller 33 33

Total 100 100

Fig. 4.6 Cross Tab of Sellers and credit policy

Above figure reveals that credit does not have any important impact on the demand

of product. This method of extending credit facility to retailers can be noval and

have a positive impact over the demand of products.

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Fig. 4.7 Cross Tab of Sellers and milk

The tabulation above shows that all the retailers are selling milk of reliance dairy.

What are the varieties of milk products that

you store of reliance? butter milk

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 39 28 67

previous seller 19 14 33

Total 58 42 100

Fig. 4.8 Cross Tab of Sellers and butter milk

The tabulation above shows that above 50% retailers are selling butter milk of

reliance this shows the better quality and demand of reliance.

What are the varieties of milk products that

you store of reliance? curd

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 22 45 67

previous seller 10 23 33

Total 32 68 100

Fig. 4.9 Cross Tab of Sellers and curd

What are the varieties of

milk products that you

store of reliance? milk

Total yes

Are you currently Selling any Reliance

dairy products ?

yes 67 67

previous seller 33 33

Total 100 100

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The tabulation above shows that above 50% retailers are not selling curd of

reliance because they mostly prefer the curd of other major brands like amul and

mother dairy.

Fig. 4.10 Cross Tab of Sellers and ghee

The tabulation above shows out 67 existing retailers only 4 retailers are selling

ghee of reliance which figure needs to be improved.

Fig. 4.11 Cross Tab of Sellers and lassi

The tabulation above shows out 67 existing retailers no retailers are selling lassi

of reliance dairy. This can be because they are not informed of the lassi or the

product have not penetrated the market yet.

What are the varieties of milk products that

you store of reliance? ghee

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 4 63 67

previous seller 5 28 33

Total 9 91 100

What are the varieties of

milk products that you

store of reliance? lassi

Total no

Are you currently Selling any Reliance dairy

products ?

yes 67 67

previous seller 33 33

Total 100 100

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Fig. 4.12 Other brand milk demand of retailers

Other brand milk product have large demand of above 108 ltr out of 100 retailers

54 are selling more than 108 ltr of milk in a day.

Fig. 4.13 Pie chart of reliance milk demand

The above Pie chart shows that 42% of retailers sells only 12.5 to 36 ltr of milk of

reliance.

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Fig. 4.14 Cross Tab of Quantity Demand of Reliance Dairy and Other Brands

This Figure is the most impotant of all. This table bring the insight of market share

that reliance dairy holds when compared to other brands.

Where in case of reliance dairy upto 12 ltrs of milk sold by 37 retailersonly 4

retailers sell the milk of other brands that is upto 12 ltrs.

Whereas 54% retailers sell more than 108 Ltr of milk of other brands and only 3%

retailers sell milk upto 108 Ltrs. That tois by the distributors of reliance.

other companies’ milk products do you

stock? mother dairy

Total

yes no

Are you currently Selling any

Reliance dairy products ?

yes 56 11 67

previous seller 31 2 33

Total 87 13 100

Fig. 4.15 Cross Tab of Reliance retailers and Mother dairy stock by them

milk you order on an average of other brands?

Total

12.5-36

Ltrs 36.5-60 Ltrs 60.5-108 Ltrs

More than

108 Ltrs

milk you order on

an average of Reliance

Dairy?

0-12 Ltrs 4 3 15 15 37

12.5-36 Ltrs 0 6 13 23 42

36.5-60 Ltrs 0 2 3 13 18

More than 108

Ltrs 0 0 0 3 3

Total 4 11 31 54 100

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Which other companies’ milk products

do you stock? amul

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 66 1 67

previous seller 33 0 33

Total 99 1 100

Fig. 4.16 Cross Tab of Reliance retailers and Amul stock by them

Which other companies’ milk

products do you stock? parag

Total

no

Are you currently Selling any Reliance

dairy products ?

yes 67 67

previous seller 33 33

Total 100 100

Fig. 4.17 Cross Tab of Reliance retailers and parag stock by them

Which other companies’ milk products do

you stock? paras

Total

yes no

Are you currently Selling any

Reliance dairy products ?

yes 36 31 67

previous seller 13 20 33

Total 49 51 100

Fig. 4.18 Cross Tab of Reliance retailers and Paras stock by them

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Fig. 4.19 Cross Tab of Reliance retailers and other brands stock by them

Above fig. from 4.15 to 4.19 reveals that how many retailers are keeping other

brands with reliance dairy milk.

Out of 100 retailers previous and existing of reliance 87 were keeping mother

dairy, 99 were keeping amul, 47 were keeping paras and 65 were keeping other

than amul, mother dairy and paras.

This shows that amul is the most favoured brand in Delhi region after that is

mother dairy. Both the above three brands i.e. mother dairy, paras, and amul have

better brand recognition than reliance dairy products.

Since Parag has not entered this market so no retailers have parag with them.

Which other companies’ milk products do

you stock? others

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 42 25 67

previous seller 23 10 33

Total 65 35 100

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Fig. 4.20 Pie Chart of Type of milk sell most

The above fig. reveals that 66% retailers sell toned milk most and after that Full

cream milk is sold most. Double toned milk does not enjoy that much of demand.

So the distribution of toned milk should be increased in the region to satisfy large

demand of toned milk and with this they can also gain recognition.

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Fig. 4.21 Pie Chart of timely delivery of milk

Fig. 4.22 Pie Chart of timely delivery of dahi

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Fig. 4.23 Pie Chart of timely delivery of Masala Chaach

Fig. 4.24 Pie Chart of timely delivery of Buttermilk

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Above Fig. From 4.20 to 4.23 reveals the on time delivery of different products

and if they are not ordering that product then it is labeled as not applicable.

Retailers who did had ordered and retailers ordering the product of were getting the

timely delivery of products they ordered.

No respondent have said that they are not getting timely delivery.

providing storage equipment? mother

dairy

Total

yes no

Are you currently Selling any

Reliance dairy products ?

yes 3 64 67

previous seller 0 33 33

Total 3 97 100

Fig. 4.25 Cross Tab of Reliance retailers and storage equipment provided by

mother dairy

providing storage

equipment? amul

Total no

Are you currently Selling any Reliance dairy

products ?

yes 67 67

previous seller 33 33

Total 100 100

Fig. 4.26 Cross Tab of Reliance retailers and storage equipment provided by

Amul

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providing storage equipment? paras

Total yes no

Are you currently Selling any

Reliance dairy products ?

yes 12 55 67

previous seller 3 30 33

Total 15 85 100

Fig. 4.27 Cross Tab of Reliance retailers and storage equipment provided by

paras

providing storage

equipment? reliance

Total no

Are you currently Selling any Reliance dairy

products ?

yes 67 67

previous seller 33 33

Total 100 100

Fig. 4.28 Cross Tab of Reliance retailers and storage equipment provided by

Reliance

providing storage

equipment? others

Total no

Are you currently Selling any Reliance dairy

products ?

yes 67 67

previous seller 33 33

Total 100 100

Fig. 4.29 Cross Tab of Reliance retailers and storage equipment provided by

Other companies

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Above analysis of figures of 4.24 to 4.28 reveals that only mother dairy and paras

is providing storage equipment to the retailers that are easing up the burden of

distribution cost on retailers.

Fig. 4.30 Pie Chart of mother dairy providing storage equipment

The above figure reveals that out of 100 retailers surveyed 3 are getting storage

equipment by mother dairy. This is one of the promotional measure that can be

adopted by reliance to gain retailers confidence.

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Fig. 4.31 Pie Chart of paras providing storage equipment

The above pie graph reveals that 15 retailers are getting storage equipment by

paras. This is the new strategy followed by Paras to gain heavy market share that it

had lost in the last few years.

Strategy like this should also be adopted by reliance dairy to gain market share.

This strategy comes with a higher cost but it can also give good returns to the

company.

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Fig. 4.32 Pie Chart of rating of reliance damage policy

Above figure reveals that 45 % of retailers are not satisfied and even dissatisfied

with reliance dairy damage policy.

But still more than 51% are satisfied which is a sign of relief but company should

do something in this area.

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Fig. 4.33 Pie Chart of rating of reliance employee behavior

The result of this chart shows that distributors are enjoying good relationship with

the employees of reliance dairy. This can also act as a strength for the further

expansion of product line of reliance dairy.

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Fig. 4.34 Pie Chart of rating of reliance milk products quality

Quality of product is a major pillar on which any dairy company stands. This

figure have revealed that 44 % retailers have rated reliance milk quality as good

and 50% have rated it as an average quality product.

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Fig. 4.35 Pie Chart of rating of reliance margin

75% retailers have rated the margin as good of reliance dairy.

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Fig. 4.36 Pie Chart of rating of reliance dairy schemes

Fig. 4.37 Pie Chart of rating of reliance timely information

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Chapter – 5

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Recommendation

During the research I interacted with near about 100 retailers in north Delhi to

know and identify the retailer perception that helped me to find out various

amazing factor about milk market. On this basis my interaction and research I

found out some of the findings. They are as follows

1..The packaging of RELIANCE DAIRY LIFE MILK should be in transparent in

nature. The present packing color definitely gives the different look to the product

but it doesn’t give positive impact in the mind of consumer. The blue, orange,

green and yellow packing are more heat absorbing in comparison of semi

transparent packaging that can be harmful for the quality of milk.

2..The quality of product should be improved. Smell and taste of milk are the basic

parameters to judge the quality of milk. Most of the consumer complains for the

smell in milk that can be harmful for the brand image.

3..Now the consumer more aware about the companies in dairy sector. Most of the

consumer who is illiterate identifies the brand by it packaging color and logo. If

dairy life uses the logo of RELIANCE on its front side of pack that can definitely

attract the loyal consumer of its mother company and help to identify the product

by the illiterate consumers.

4..The name of the company and product should in local language also. The

consumer who are literate but they unable to read English can easily identify the

product in their local language.

5.. Employee working in Reliance dairy are found not properly motivated in the

market to undertake some new initiative and all the fear of losing demand. Proper

motivation among the employee and clear information regarding the product

quality and features would help them better.

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6.. Positioning of the reliance dairy product Are not clear in the minds of

consumers and retailers. I have encountered this problem during market survey

when people ask me “Is there is also reliance milk” this problem is due to lower

advertisement in the local and mass media channels.

7..The supply chain management of product is another aspect of brand image.

Providing the product at the right time and right place is definition of proper SCM.

The milk market is on its peek early in the morning (between 5 to 8 AM), so

company should ensure that the product should be on retail shop as early as

possible.

8..Advertisement of product is an important process to get consumer attention but

if we see the milk by advertising point of view it doesn’t need as much as other

product. It needs only somewhat promotion strategy that can be through banner

and posters.

9.. Rather than providing the benefit to the retailers only reliance dairy should also

focus on providing some benefit to customers also in terms of discounts, low prices

and some sales promotion scheme.

10.. Pricing of the milk and buttermilk of Reliance dairy is equal to Market leaders

like amul, mother dairy, paras etc. Even at this nascent stage of company pricing at

this high level is not prudent. So pricing of product should be kept a little low.

11.. One more important suggestion is that like other big brands like amul, paras,

mother dairy etc . reliance dairy should also have its own website so that it can

have a global reach to its consumers and retailers.

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Conclusion

This is the vision of the future which the company sees for itself:

‘‘Reliance dairy will be an outstanding marketing organization, with specialization

in marketing of food and dairy products, both fresh and long life with customer

focus and information technology integration.

Of the three A's of marketing – availability, acceptability and affordability,

Indian dairying is already endowed with the first two. People in India love to drink

milk. Hence no efforts are needed to make it acceptable. Its availability is not a

limitation either, because of the ample scope for increasing milk production. It

leaves the third vital marketing factor affordability. How to make milk and its

product affordable for the large majority with limited purchasing power?

This can be done with proper planning and right decision that is to be taken at the

right time.

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References

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4. About Reliance Group Retrieved on 29th June 2013 http://www.ril.com/html/aboutus/aboutus.html

5. Reliance retail business Retrieved on 29th June 2013 http://www.ril.com/html/business/business_retail.html

6. Report on animal abuse and contaminated milk Retrieved on 29th June 2013 www.happycow.net/pdf/PTA_DairyReport_0212081.pdf

7. Dairy Development in India Retrieved on 30th June 2013 www.iisc.ernet.in/insa/ch22.pdf

8. Statistics of Indian dairy industry Retrieved on 30th June 2013 www.iideindia.com/IIDE-2013_bro.pdf

9. Annual Report Reliance Dairy Foods 2008-2009 Retrieved on 29th June 2013 from http://www.ril.com/rportal1/DownloadLibUploads/12%20Reliance%20Dairy%20Foods%20Limited.pdf

10. Potential of Indian dairy industry 2017 Retrieved on 30th June 2013 http://www.gyananalytics.com/Synopsis%20&%20TOC%20-%20Potential%20of%20Indian%20Dairy%20Industry%20-%202017.pdf

11. State wise data on livestock and dairy product production Retrieved on 30th June 2013 mofpi.nic.in/dairyindustry.aspx

12. About paras dairy and its products Retrieved on 30th June 2013 http://www.parasdairy.com

13. About Amul dairy and its products Retrieved on 30th June 2013 http://www.amul.com/ 14. About Mother Dairy and its products Retrieved on 30th June 2013 www.motherdairy.com 15. About Kwality Ltd Dairy best and its products Retrieved on 30th June 2013

http://www.kdil.in/ 16. Reliance Dairy Foods celebrates World Milk Day Retrieved on 30th June 2013

http://www.onlineprnews.com/news/234359-1338614909-reliance-dairy-foods-celebrates-world-milk-day.html

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Annexure

Questionnaire for Analysis of Distribution Channel of milk products of

Reliance Dairy Foods India Ltd.

Undertaking

This questionnaire is designed solely for the purpose of study and analysis of distribution

channel of Reliance Dairy Foods India Ltd. The information provided under this questionnaire is

going to be used legitimately and judiciously.

Market area : ....................................................................................................................

Shop/Distributors Name: .....................................................................................................

Address: .....................................................................................................................................

Respondent Name: ............................................................................................................

Contact Number: .............................................................................................................

1.Are you selling Reliance Dairy Milk Product?

a). Yes b). No c) Previous Seller

2. Reason for Selling Reliance Dairy Products ?

a) Margin c) Demand e) Credit Policy

b) Promotional Schemes d) Dealer relationship f) Other Reasons

3. Which other companies milk products do you stock?

a) Mother Dairy c) Amul e) Paras

b) Parag d) Others f) No other

4. What are the varieties of milk’s products that you store of Reliance dairy?

a) Milk c ) Chaanch e )Curd

b) Lassi d ) Ghee f)Other

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5. What is the quantity of a milk you order on an average of Reliance Dairy?

a) 0-12 Lt. c) 36.5 – 60 Lt. e) More than 108 Lt.

b) 12.5 – 36 Lt. d) 60.5- 108 Lt.

6. What is the quantity of a milk you order on an average of other brands?

a) 0-12 Lt. c) 36.5 – 60 Lt. e) More than 108 Lt.

b) 12.5 – 36 Lt. d) 60.5- 108 Lt.

7. Which type of milk you sell the most?

a) FCM c ) Toned e ) Other

b) Double toned d ) Toned Milk

8. Do you change your order quantity between summer and winters?

a) Yes b ) No

9. Do you get the timely delivery of Reliance Dairy Products?

(i) Milk a) Yes b ) No c) Not applicable

(ii) Dahi a) Yes b ) No c) Not applicable

(iii) Chaach a) Yes b ) No c) Not applicable

(iv) Masala Chaach a) Yes b) No c) Not applicable

(v) Ghee a) Yes b ) No c) Not applicable

(vi) Lassi a) Yes b ) No c) Not applicable

10. By which vehicle you provide milk products to retailers ( Distributors only )?

(a) Insulated Vans/Trucks (c) Small Pick up Trucks (e) Others

(b) Trolleys (d) Two wheelers

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11 What is the daily cost of distributing milk and milk products to retailers

(Distributors only) or Daily cost of Holding (for Retailers)?

(a) 0 - 100 Rs. (c) 301-600 Rs (e) More than 1000 Rs

(b) 101 – 300 Rs. (d) 601 – 1000 Rs

12. Does organizations stated below helps you by providing storage equipment?

a) Mother Dairy c ) Amul e ) Paras

b) Parag d ) Reliance f ) Other

13. How do you rate the schemes of the Reliance Dairy?

a) Good b) Average c) Poor

14. How do you rate the Margin of the Reliance Dairy?

a) Good b) Average c) Poor

15. How do you rate the Quality of Reliance Dairy Products?

a) Good b) Average c) Poor

16. How do you rate the Employees behaviour with you?

a) Highly Satisfied c) Dissatisfied

b) Satisfied d) Highly Dissatisfied

17. How do you rate the Damage Policy of Reliance Dairy Products ?

a) Highly Satisfied c) Dissatisfied

b) Satisfied d) Highly Dissatisfied

18. Are you getting information about scheme of Reliance Dairy Products at proper time?

a) Yes b) No

19. Would you like to give some suggestions regarding the improvement of distribution of

reliance products?

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