Mudit Reliance Dairy Report
-
Upload
mudit-chandra -
Category
Documents
-
view
69 -
download
0
description
Transcript of Mudit Reliance Dairy Report
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
2
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
3
4
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)
5
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.
6
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.
7
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
8
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
9
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
10
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
11
Chapter 1
12
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.
13
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)
14
15
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.
16
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.
17
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.
18
"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
19
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
20
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.
21
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.
22
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
23
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.
24
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.
25
Chapter-2
26
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.
27
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
28
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
29
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
30
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
31
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.
32
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.
33
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
34
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.
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
36
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
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
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
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.
40
Chapter-3
41
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.
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.
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.
44
Chapter-4
45
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.
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
47
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.
48
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
49
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
50
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.
51
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
52
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
53
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
54
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.
55
Fig. 4.21 Pie Chart of timely delivery of milk
Fig. 4.22 Pie Chart of timely delivery of dahi
56
Fig. 4.23 Pie Chart of timely delivery of Masala Chaach
Fig. 4.24 Pie Chart of timely delivery of Buttermilk
57
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
58
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
59
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.
60
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.
61
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.
62
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.
63
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.
64
Fig. 4.35 Pie Chart of rating of reliance margin
75% retailers have rated the margin as good of reliance dairy.
65
Fig. 4.36 Pie Chart of rating of reliance dairy schemes
Fig. 4.37 Pie Chart of rating of reliance timely information
66
Chapter – 5
67
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.
68
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.
69
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.
70
References
1. About Milk types and Processing of milk Retrieved on 29th June 2013 from www.agroexports.com
2. Indian dairy Industry prospects Retrieved on 29th June 2013 from cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf
3. Report on Indian Dairy Industry Retrieved on 29th June 2013 from www.ficcifood360.in/pdfs/day2-2012/dairy/Pre.../2.Mr.Sunjay,PWC.pdf
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
71
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
72
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
73
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?
................................................................................................................
................................................................................................................
................................................................................................................
.