EMERGING STRATERGIES OF DAIRY PRODUCTS

ST. ANDREWS COLLEGE OF ARTS, SCIENCE AND COMMERCE BANDRA (W), MUMBAI 400050.
EMERGING STRATERGIES OF DAIRY PRODUCTS Submitted for the Course HUMAN RESOURCES AND MANGEMENT IN SEMESTER I MASTER OF COMMERCE PROGRAMME OF THE UNIVERSITY OF MUMBAI BY STUDENTS NAME:STEFFI LEITAO

ROLL NO: 9011

UNDER THE GUIDANCE OF DR.SWATI CHAPLOT 2013 -2014

DECLARATION

St. Andrews College of Arts, Science and Commerce St. Dominic Road, Bandra (West), Mumbai 400 050. I Steffi Leitao of St. Andrews College, M.Com Part I hereby declare that I have completed the project on EMERGING STRATERGIES OF DAIRY PRODUCTS in the academic year 2013-14.The information submitted is true and original to the best of my know

Place: Mumbai

Signature of Student Steffi Leitao

CERTIFICATE

It is certified that this project Emerging Strategies of Dairy Products has been prepared and submitted by Steffi Leitao under my guidance during the academic year 2013-2014.

Date:

Signature (Dr. ________________) (Associate

Place: Professor)

Signature of the Internal Examiner

Signature of the External Examiner

Signature of the Principal

ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my guide DR. Swati Chaplot for monitoring and encouraging me throughout of this thesis. I am thankful to the University of Mumbai for offering the project in the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends who supported me to go ahead with the project.

Index Sr.No.
Chapter I 1.1 1.2 Chapter II 2.1 2.2 2.3 2.4 Chapter 3 Chapter 4 4.1 4.2 4.3 4.5 Chapter 5 Chapter 6 Chapter 7 Chapter 8

Topic
Introduction to the Study Strategic Management Introduction Types Indian Dairy Industry Overview Past , Present & Future of the Indian Dairy Industry Facts SWOT Analysis Research Methodology Strategies of Emerging Dairy Markets Overview Potential growth factors Major products Major Players Case Study Limitations Suggestion and Recommendation Conclusion Bibliography

Page No.

CHAPTER 1 1.1 INTRODUCTION

Definition 1. A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. 2. The art and science of planning and marshalling resources for their most efficient and effective use. The term is derived from the Greek word for general ship or leading an army.

Origin
The strategic management discipline originated in the 1950s and 1960s. Among the numerous early contributors, the most influential were Alfred Chandler, Philip Selznick, Igor Ansoff, and Peter Drunker. The discipline draws from earlier thinking and texts on 'strategy' dating back thousands of years. Alfred Chandler recognized the importance of coordinating management activity under an all-encompassing strategy. Interactions between functions were typically handled by managers who relayed information back and forth between departments. Chandler stressed the importance of taking a long term perspective when looking to the future. In his 1962 ground breaking work Strategy and Structure, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction and focus. He says it concisely, structure follows strategy. In 1957, Philip Selznick formalized the idea of matching the organization's internal factors with external environmental circumstances.[7] This core idea was developed into what we now call SWOT analysis by Learned, Kenneth R. Andrews, and others at the Harvard Business School General Management Group. Strengths and weaknesses of the firm are assessed in light of the opportunities and threats in the business environment.

Overview
Strategic management is a level of managerial activity below setting goals and above tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic consistency" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes the management team and possibly the Board of Directors and other stakeholders. "Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment. Strategic Management can also be defined as "the identification of the purpose of the organisation and the plans and actions to achieve the purpose. It is that set of managerial decisions and actions that determine the long term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organisational goals."

1.2 Types of Strategies

Growth Strategy
A growth strategy entails introducing new products or adding new features to existing products. Sometimes, a small company may be forced to modify or increase its product line to keep up with competitors. Otherwise, customers may start using the new technology of a competitive company. For example, cell phone companies are constantly adding new features or discovering new technology. Cell phone companies that do not keep up with consumer

demand will not stay in business very long. A small company may also adopt a growth strategy by finding a new market for its products. Sometimes, companies find new markets for their products by accident. For example, a small consumer soap manufacturer may discover through marketing research that industrial workers like its products. Hence, in addition to selling soap in retail stores, the company could package the soap in larger containers for factory and plant workers.

Product Differentiation Strategy

Small companies will often use a product differentiation strategy when they have a competitive advantage, such as superior quality or service. For example, a small manufacturer or air purifiers may set themselves apart from competitors with their superior engineering design. Obviously, companies use a product differentiation strategy to set themselves apart from key competitors. However, a product differentiation strategy can also help a company build brand loyalty, according to the article "Porter's Generic Strategies" at QuickMBA.com.

Price-Skimming Strategy
A price-skimming strategy involves charging high prices for a product, particularly during the introductory phase. A small company will use a price-skimming strategy to quickly recover its production and advertising costs. However, there must be something special about the product for consumers to pay the exorbitant price. An example would be the introduction of a new technology. A small company may be the first to introduce a new type of solar panel. Because the company is the only one selling the product, customers that really want the solar panels may pay the higher price. One disadvantage of a price-skimming is that it tends to attract competition relatively quickly, according to the Small Business Administration. Enterprising individuals may see the profits the company is reaping and produce their own products, provided they have the technological know-how.

Acquisition StrategyA small company with extra capital may use an acquisition
strategy to gain a competitive advantage. An acquisition strategy entails purchasing another

company, or one or more product lines of that company. For example, a small grocery retailer on the east coast may purchase a comparable grocery chain in the Midwest to expand its operations

Chapter 2 2.1 Overview of the Indian Dairy Industry

In India, the dairy sector plays an important role in the countrys socio-economic development, and constitutes an important segment of the rural economy. Dairy industry provides livelihood to millions of homes in villages, ensuring supply of quality milk and milk products to people in both urban and rural areas. With a view to keeping pace with the countrys increasing demand for milk and milk products, the industry has been growing rapidly. According to our research report Indian Dairy Industry Analysis, India is the worlds largest milk producer, accounting for around 17% of the global milk production. Besides, it is one of the largest producers as well as consumers of dairy products. Due to their rich nutritional qualities, the consumption of dairy products has been growing exponentially in the country, and considering such facts and figures, our study anticipates that the milk production in India will grow at a CAGR of around 4% during 2011-2015. With the rising use of dairy products, the secondary market for dairy products has also been flourishing, our report observed. For this, we have included the analysis of secondary market for dairy products, including tea, coffee, infant nutrition, malted foods, and bakery products. Covering the necessary aspects of the Indian dairy industry, the study facilitates knowledge about its current market scenario and future growth. Analysing the past and current state of the industry, the report tries to find out how trends like the entry of international companies and safe packaging are attracting more consumers and leading to further growth in the market. This way, it presents a clear picture of the direction, in which the industry is likely to proceed in the coming years.

2.2 Current Scenario of the Indian dairy industry - Past, Present And The

Boom Ahead

Traditionally India had some of the best cattle breeders in the world and most high yielding genetic stock. But that is until the British arrived in India. With the advent of British era urbanization around India, major sea ports such as Mumbai. Chennai, Cochin, Kolkotta and the national capital Delhi started growing rapidly. This ever increasing population meant a rising demand for milk resulting into formation of what is now known as "tabelas" or "khattals", enclosures where cows and buffalos were reared for milk. If one takes a local train from north of Mumbai to South, you can still spot a large number of these enclosures along side the railway tracks. These tabela owners are keen to maximize their profits and they would bring best of the high yielding buffalos from hinter-land some along with their young calves and within a week they would wean away the calf and send it to slaughter house. The buffalo will be reared for a few lactation cycles and then disposed off to a slaughter house. The empty slots in the tabela are soon replaced with next best stock purchased from the hinterland. In 1946 when Amul came into existence, a new beginning of farmer-owned organized dairy cooperative movement took hold. Till then all of the government milk schemes, were more milk distribution & urban consumer focused rather than on milk production. As the AMUL model grew - providing a fair market access and remunerative prices to the farmers along with services such veterinary care, balanced cattle feed supply, artificial insemination, progeny tested frozen semen - the supplies of milk production and its productivity started going up. For the first time in about 200 years then, someone was trying to stop and reverse almost 1000 year of animal genetic stock deterioration. Between mid seventies to nineties, the dairy cooperative movement spread to more than 200 milk producing districts of India with milk production growing at 4 to 5% per annum. Even with limited gains on productivity, scarce fodder, frequent draughts the farmers largely dependent on agric-residual feeding and even then India emerged as one of the largest producers of milk in the world. Another startling thing happened - the per capita milk consumption rose and was almost equal to the global average. Secondly we need to realize that as a nation while our per capita milk consumption is almost at par with the rest of the world; our nation is still suffering malnutrion on a large scale. Health of our women and children is poor especially among the rural and urban poor. We are

short on high quality protein intake, but in the name of liberalization we export millions of tonnes of soya, cotton-seed, rap-seed, mustard-seed, all of which contain 30% to 40% of crude protein. Imagine if this was fed to our cows, buffalos or used in poultry this crude protein would have been converted in to highly digestible protein which children of this country needs most. Converting and feeding such meal to our cattle would generate employment in villages, especially of women. We should first make enough fodder available locally at an affordable rate. Earlier until the 90's governments had imposed a levy of 20% on export of protein-meal. This kept the exports in check and ensured meals are available for domestic consumption for dairy and poultry industry at least 20% cheaper then world market! This not only enabled the country to enhance milk and egg production, but also created employment and keeps these local businesses more competitive. But since the 90's our governments have failed to take right steps to boost availability of fodder, protein meal and now when milk prices go up, the governments resorts to banning exports of milk powders, casein and even go to the extent of importing milk powder.. For more than a hundred years the Indian dairy industry suffered cattle genocide and only with advent of amul in 1946 did the wheel start to turn back and in the right direction. If well managed, the next two decades will be golden eras of milk production and productivity gains. Countrys economy is going to boom for the next few decades powered by a young population and hence the market for milk and value added a milk product is going to grow hand-in-hand predictably at an unprecedented pace. Indian food habits vary from region to region in the country. Rice is predominant in east and south while wheat is staple in north and west. But having said that, milk is the most common food all across. Milk has 99% penetration and is considered a wholesome food by every Indian. The challenge therefore is to make it affordable and available. Affordability is clearly a result of equaling the supply to the demand. But make no mistake, supply needs to sustainable and local - as an outstripping demand will place huge pressure on milk supplies especially if the supply increments are managed by importing from outside. That would be an unsustainable solution.

2.3 TRUE FACTS

Milk and dairy products are providers of calcium, phosphorous and protein which are all essential for healthy bone growth and development. Consumption of milk and dairy from early childhood and throughout life can help make bones strong. The amounts of calcium in milk and dairy products are beneficial for healthy teeth. Milk has been shown not to cause tooth decay and therefore it is also one of the best drinks to have between meals June is dairy month In 1856, French scientist Louis Pasteur discovered that heating liquids to high temperatures kills bacteria. This process is called pasteurization, and it protects the purity and flavours of milk. The best sources of calcium are milk, yogurt, and cheese. About 72% of the calcium in the U.S. food supply comes from dairy foods. These foods also provide protein and several other important nutrients. According to the Federal Government's Food Guide Pyramid, children ages 9-18 need 3 servings of dairy products daily. Only 30 per cent of teenage boys and 12 per cent of teenage girls meet this recommendation. Calcium in soy milk is not as readily available for the body to use as it is in cow's milk. 25 gallons of milk can make 9 gallons of ice cream, 25 pounds of cheese, or 11 pounds of butter. It takes about 30 cups of milk to make 1 pound of butter. Refrigerator Milk remains fresh for 7-10 days after the expiration date if refrigerated at 35-40F. Each 5 (F) rise in temperature shortens milk's shelf life by 50% because of bacteria growth.

2.4 SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY Strengths:

Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years. Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche. Top

Opportunities: "Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the

following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: o Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. o Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. o A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. o Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular. Top

Threats: Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and costeffective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money!

CHAPTER 3 RESEARCH METHDOLOGY

CHAPTER 4 Strategies of Emerging Dairy Markets

4.1 Overview
India has one of the largest livestock populations in the world. Fifty per cent of the buffaloes and twenty per cent of the cattle in the world are found in India, most of which are Milk cows and buffaloes. Dairy development in India has been acknowledged the world over as one of modern Indias most successful developmental programme. Today, India is the largest milk producing country in the world. Milk and milk products is rated as one of the most promising sectors which deserves appreciation in a big way. When the world milk production registered a negative growth of 2 per cent, India performed much better with 4 per cent growth. The total milk production is over 72 million tonnes and the demand for milk is estimated at around 80 million tonnes. By 2005, the value of Indian dairy produce is expected to be Rs. 1,000,000 million. In the last six years foreign investment in this sector stood at Rs. 3600 million which is about one fourth of the total investments made in this sector. Manufacture of casein and lactose, largely being imported presently, has good scope. Exports of milk products have been decimalised. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. According to one estimate, the packed milk segment would double in the next five years, giving both strength and volume to the modern sector. The narrow tip at the top is a small but affluent market for western type milk products.

4.2 Potential for further growth

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, given the prevailing low yields from dairy cattle. It leaves the third vital marketing factor affordability. How to make milk affordable for the large majority with limited purchasing power? That is essence of the challenge. One practical

way is to pack milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk has given way to single-use sachets which are more economical. Another viable alternative is to sell small quantities of milk powder in minisachets, adequate for two cups of tea or coffee. Marketing Strategy for 2000 AD Two key elements of marketing strategy for 2000 AD are: Focus on strong brands and, product mix expansion to include UHT milk, cheese, ice creams and spreads. The changing marketing trends will see the shift from generic products to the packaged quasi, regular and premium brands. The national brands will gradually edge out the regional brands or reduce their presence. The brand image can do wonders to a product's marketing as is evident from the words of Perfume Princess Coco Channel: In the factory, we pack perfume; in the market, we sell hope! 4.3 Emerging Dairy Markets Food service institutional market: It is growing at double the rate of consumer market Defence market: An important growing market for quality products at reasonable prices Ingredients market: A boom is forecast in the market of dairy products used as raw material in pharmaceutical and allied industries Parlor market: The increasing away-from-home consumption trend opens new vistas for ready-to-serve dairy products which would ride piggyback on the fast food revolution sweeping the urban India . Penetration of milk products Western table spreads such as butter, margarine and jams are not very popular in India. All India penetration of butter/ margarine is only 4%. This is also largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in 2.1% of households only. The use of these products in the large metros is higher, with penetration at 15%. Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita consumption even among the cheese-consuming households is a poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to peculiar food habits,

relatively expensive products and also non-availability in many parts of the country. Butter, margarine and cheese products are mainly manufactured by organized sector. Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/ cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%. Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in a large metros. Packaging Technology Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate packs made of aluminium, paper, board and plastic. Milk stored in tetra packs and treated under Ultra High Temperature (UHT) technique can be stored for four months without refrigeration. Most of the dairy cooperatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches. In 1999-00 Nestle launched its UHT milk. Amul too re-launched its Amul Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming years.

Product development:

Dairy foods can be manufactured and packaged for export to countries where Indian

food enjoys basic acceptance. The manufacturing may be carried out in contract plants in India. An option to market the products in collaboration with local establishments or

entrepreneurs can also be explored. Products exhibiting potential include typical indigenous dairy foods either not available in foreign countries or products whose authenticity may be questionable. Gulabjamuns, Burfi, Peda, Rasagollas, and a host of other Indian sweets have good business prospects.

4.4

Major Products

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation. Indian (traditional) Milk Products There are a large variety of traditional Indian milk products such as Makkhan - unsalted butter.Ghee - butter oil prepared by heat clarification, for longer shelf life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa evaporated milk, used as a base to produce sweet meats. The market for indigenous based milk food products is difficult to estimate as most of these products are manufactured at home or in small cottage industries catering to local areas. Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are perishable products with a shelf life of less than a day. These products are therefore manufactured and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products Among the traditional milk products, ghee is the only product, which is currently marketed, in branded form. main ghee brands are Sagar, MilkMan (Britannia), Amul (GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt). With increasing urbanization and changing consumer preferences, there is possibility of large scale manufacture of indigenous milk products also. The equipments in milk manufacturing have versatility and can be adapted for several products. For instance, equipments used to manufacture yogurt also can be adapted for large scale production of Indian curd products (dahi and lassi). Significant research work has been done on dairy equipments under the aegis of NDDB. Mafco Limited sells Lassi under the Aarey brand and flavoured milk under the Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in various flavors in tetra packs. GCMMF has also made a beginning in branding of other traditional milk products with the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to be launched The first new product Amul Mithaee Gulabjamun has already been launched in major Indian markets. Western Milk Products Western milk products such as butter, cheese, yogurt have gained popularity in the Indian market only during the last few years. However consumption has been expanding with increasing urbanization. Butter Most Indians prefer to use homemade white butter (makkhan) for reasons of taste and affordability. Most of the branded butter is sold in the towns and cities. The major brands are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other players have greater shares in their local markets. The latest entrant in the butter market has been Britannia. Britannia has the advantages of a wide distribution reach and a

strong brand recall. Priced at par with the Amul brand, it is expected to give stiff competition to the existing players. In 1999-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white form used for table purposes rest all is in the yellow form. Cheese The present market for cheese in India is estimated at about 9,000 tonnes and is growing at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four metro cities alone account for more than 50% of consumption . Mumbai is the largest market (accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where the bulk institutional segment (mainly hotels) is larger.

Milk Powder Milk powder is mainly of 2 types

Whole milk powder Skimmed milk powder

Whole milk powder contains fat, as distinguished from skimmed milk powder, which is produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc. The penetration of these products in milk abundant regions is driven by convenience and non perishable nature (longer shelf life) of the product. Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tonne with a level of subsidy more than 60 % of the price of milk powder produced in India, this has led to large scale imports of milk powder both in whole and skimmed form. To protect the domestic sector from these subsidized imports the central government has recently increased the basic import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic customs duty has been left unchanged at 15%. In 1999-00 India is estimated to have imported about 18,000 tonnes of milk powder against a total estimated production of 2.40 Lakh MTs. In 2000-01 India is expected to

export 10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT from last year's levels of $1400 per MT. These expectations are based on the strong demand from Russia, East Asia and Latin America, and also on tightening of supply in EU, which accounts for 75% of the annual global Skimmed Milk Powder exports.

4.5 Major Players Amul as well the leading brands in the dairy whitener segment are Nestls every day, GCMMF's Amulya, Dalmia Industry's Sapan, Quality Dairy India's KreamKountry, Wockhardt's Farm Fresh and Britannia's Milkman Dairy Whitener. Today, India is the largest milk producing country in the world.
World's major milk producers
(Million MTs) 1998-99 Approx.) 74.5 71 33 27 24 22 27 14 14 12 12 11 10 (

Country

1997-98

India USA Russia Germany France Pakistan Brazil UK Ukraine Poland New Zealand Netherlands Italy

71 71 34 27 24 21 21 14 15 12 11 11 10

Australia

10

FAMOUS INDIAN INDUSTRIES AMUL NESTLE MOTHER DAIRY BRITANNIA

AMUL THE TASTE OF INDIA

Derived from Sanskrit word mulya, Amul has been an iconic brand in India with superior product quality, supply chain infrastructure and distribution.

Amul Brand Basket

Brand Amul owned and managed by Gujarat Cooperative Milk Marketing Federation (GCCMF) has 123 brands listed under its name. Liquid milk however contributes to 40% of the Amuls revenues.

AMUL MARKETING STRATERGY

In order to maintain costs at lower levels, Amul India has never spent more than 1% of its budget on advertising. However it has still been successful in creating the same impact, it created 60 years ago through its simple yet appealing ad campaigns. Talk about universally recognizable Brands grown in India, and one prominent contender is the Amul mascot, a cute and chubby girl usually dressed in a polka dot. Over 45 years of existence, the brand has always given a fresh flavour to Amul Mascot. The Amul Girls and its new Witty avatar was the brain child of Sylvester da Cunha, the managing director of the advertising agency AS. The ads were designed as a series of hoardings with designs relating to day-to-day issues. Amul Dairy Cooperatives, on the occasion of completing its 50 years of advertising, launched a book called Amul India. The Manthan music video has a unique emotional appeal. To recreate the magic, in 2012 brand came up with a fresh commercial with the lines like khushrahetera beta beti in the new music video. It shows how the efforts of a rural milk producer take care of nutritional requirements of a child of a urban mother. Products Packaging Amuls marketing strategy has always been consumer centric. Thus it is kept in mind that the packaging of all Amul products appeals to the emotional side of the consumer.

Use of Expression
For example the human facial expression of delight on the cheese variant packing reveal the pleasure people derive from consuming cheese and cheese products.

Information
Also the need to highlight the nutrient value and best possible use of the product is an important feature of all Amul products packaging.

Protection
Recently Amul has focused largely upon capturing the branded tetra pack market with, variants that would last for over 2 weeks to three months even without refrigeration. Place In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. Promotion If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared to take step toward the sender. Effective advertising is rarely hectoring or

loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same Other strategies: Amul star voice of India Amul master chief Amul ustad and there are cafes as well as ice cream parlour of AMUL

Nestle
Nestl is the world's leading Nutrition, Health and Wellness Company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. The Company was founded in 1866 by Henri Nestl in Vevey, Switzerland, where our headquarters are still located today. They employ around 2, 80,000 people and have factories or operations in almost every country in the world. Nestl sales for 2009 were CHF 10.Nestl India has a wide portfolio for Milk Products and Nutrition. Nestl India follows this Charter and also complies with The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 that guides the sale of infant nutrition products in India. Nestl India does not advertise its Infant Nutrition products.

Marketing strategies of Nestle

To target the market in such a way as to maximise profits. National Geographic promotes itself on Social Media now like Facebook, Twitter and other site. National Geographic has numerous widgets that it offers for its fans (I counted 9 on its site). These include a news widget, puzzle widget, and multiple photo widgets that are all easy to share within multiple networks and personal blogs. Most of these can be found within the main site, but some are also found within the

MySpace page as well. They effectively provide users with a way to interact and have fun with the brand. With such a substantial fan base, these should be promoted on areas of the site with more visibility or in place of advertising in order to increase the chances of these being installed. It never compromises on quality Nestle products are available in every town and city. Their target children and women bearing children as well as elderly women Big idea sportsman and sportswomen using milk pack as a drink during their sports interval. Increasing health awareness especially amongst women and children. Promotion. Nestle uses advertising such as TV, magazines, billboards, film media, and print ads to promote their products. Remember that commercial that had the rabbit drinking chocolate milk? That was a Nestle promotional advertisement. Public Relations: As far as the public relations are concerned, the organization releases an annual report which includes the companys financial statements along with the sales of all product categories. The annual report is mainly aimed at the stockholders. However, another very important form of public relations are the newsletters and bi-monthly magazines issued by the organization. A huge amount of information is found in these regarding the products and their promotion. IN the same way, Nestle Pure Life was given quite a bit of importance in the newsletters issued after its launch, which obviously helped in creation of the awareness of this brand.
PRODUCT LIFE CYCLE:

If we look nestle pure life water in product life cycle than it easy to judge that it is at introduction stage because Nestle is the market pioneer and at this stage its profit is negative or low due to low sale and high distribution and promotion .Other major reason to be at introduction stage is unawareness in rural areas. The people are not aware to the pure life water that is why their sale is low. They can bring change in product life cycle by effective promotion, by formulating new price strategies etc. PRICE FIXATION STRATIGIES:

Profit Earning: Profit earning is the main objective of every company but in case of nestle their profit margin is low. Only a few amountof profit is collected from pure life water. Customer satisfaction: In nestles pure life price is not fixed by keeping in mind profit motive, only customer satisfaction is kept in mind while fixing the price. STRATIGIES FOR FIXING THE PRICE: In nestle prices are set on cost basis as given below: Price = Cost + Profit and Break even or Target price.

Mother dairy
Mother Dairy was set up in 1974 under the Operation Flood Programme. 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. STRAREGIES OF MOTHER DAIRY Procurement: Fresh milk is sourced directly from state level co-operatives and Mother Dairy 2own New Generation Co-operatives (NGC). Milk received from individual producer is checked for all basic quality parameters meeting company specifications & requirements at respective collection & chilling centres.Milk is then supplied to the Dairy units through insulated Milk Tankers under refrigerated conditions to maintain the freshness. GMP & Hygiene: Good manufacturing Practices (GMP) for our manufacturing units are a given, they are part of our heritage of producing best quality and safe products. We maintain

highest level of GMP and hygiene requirements for production and handling of safe products for our valued customers and consumers Packing: The Filling and packing is considered to be most sensitive operation having appropriate access control. Zoning principles are applied in these areas to avoid any cross contaminations in our Finished Product. Online quality control checks (e.g. net weight, leakages, seal integrity, batch coding, packing material quality, filling temperature etc.) are carried out and recorded by our Packing In-charges. Only QC approved and released Packaging materials are used for packing operations Packaging material used for our products is with the objective of retaining taste, freshness and unique natural appeal. Product Testing & Release: Finished product is tested for the specified quality parameters of each product category as per our internal standardized sampling plan and test procedure. Test results are recorded, reviewed by Quality functions. It is ensured that only good quality product is released for dispatch and reaches our valued customer & consumer. Distribution: Our strength lies in adherence to systematic Process approach in the complete distribution chain to deliver product with highest quality standards to our customers and consumers. This includes, 1. Availability of standard guidelines & norms for warehousing, handling, storage and transportation requirements. 2. Benchmarking of Transportation vehicles for infrastructure and hygiene requirements 3. Benchmarking of CFAs and Distributors for infrastructure and hygiene requirements 4. Benchmarking of Milk Shops for infrastructure and hygiene requirement. ADVERTSING:

As far as products such as butter, cheese and ice creams go, the campaigns have been created Around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterflycampaigns.

Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador. While Mother Dairy

has been carrying out school programmes - games and activities involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata as well. It also runs a gaming website on the character to attract children. Equity and empathy are being built for the brand, the values for which it stands, and the various other Mother Dairy products, which draw their core values from Mother Dairy milk. Its cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo - dressed as superheroes through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken.

Britannia:
The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to cores of rupees in wealth for Britannia's shareholders. The company's offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded

in garnering the trust of almost one-third of India's one billion populations and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savour the results, happily ever after.

STRARTERGY OF BRITANIANNA

Promotion
Eat Britannia, Go for World Cup" Was the theme adopted in 1999 .People bought the biscuit packs and searched for the lucky scratch for flying to England to see world Cup Cricket match.

Another strategy followed by Britannia is increasing the weight of various product packsfrom 60 gram packs to 90 gram packs at the same price tags.

Sites like Facebook twitter as well as Britannia as a separate website of their own where you have to login and there give you different types of recipes that you can prepare of your own with cheese as well invite and let you know about their events.

Programmes:
Programmes are statements of specific actions or activities used to achieve an objective. Is final touch. You need to identify specific individuals who have the responsibility for implementing the action plans. Creating the statements described above may seem like a lot of busy work. But, if done properly, they can save money and time and increase the odds that company venture will succeed. Creating these statements will help you focus on the importantaspect of your business.

Products: (Bite into milk...!)

The Britannia Company does not only deal with biscuit but also dairy products in a wide range in the market .There are different types of dairy products by the Britannia available in the market. The products of cheese are in their different shapes and taste as well variety of products in whole so you can use accordingly for you.

Pricing:
The pricing strategy of Britannia is simple and the price as reasonable so that the consumer is loyal to the product or even tries it.

CHAPTER 5 CASE STUDY

Social Approach in Print Media Advertising: A Case Study of Amul Butter
BANG!!! And suddenly entire India is on its feet screaming about social evils, societal malpractices and melodramatic incoherent situation that our country has been going through since the day it earned independence. Naturally Indian media is ready to cash on these circumstances by publishing only news material related to the social movement but also by creating advertisements that reaches a broad section of consumerist society. In fact, an advert with a social approach is one of the most engaging ways To intricately involve a viewer to the product or service. Todays print and audio Visual media is bombarded with advertisements that contain a social approach angle. These advertise usually deals with a social message for individual development or to lend a voice to a common cause. Social approach in advertising represents formats that engage the social context of the user viewing the advertisement. These ads are exhibited to give the society of consumers a food for thought. The notion that drives these different brands is to let the residents of India be conscious of some Inevitable accountability list and to act upon it. For example: TATA Tea ad, Ideas Use Mobile Save Tree ad, Aircel s Save Our Tigers ad and Amul Butter ads etc.. Amul butter ads portray a little girl in a polka dotted dress that had turned 50plus this year. Like a true spokesperson of the masses, she rose to every occasion, be it a cricketing double centur,scandals surrounding politicians, to controversial diplomatic policies, with an infallible gut and a tongue-in-cheek attitude.The moppet was created in 1966 by cartoonist Eustace Fernandes, who recently passed away. Amulhad approached his 'creative buddy' Sylvester daCunha to design a new ad campaign for their butter brand. DaCunha, founder-Chairman of DaCunha Communications and Fernandes created the very first hoarding that said: 'Give us this day our daily bread with Amul Butter'. Since then, the Utterly, Butterly Girl has had her say on current affairs topics and even today, continues to win hearts with her tongue-in-cheek humour .People who are associated with it: Sylvester daCunha, Rahul daCunha, Manish Jhaveri.

AMUL BUTTER AD CAMPS

YEAR

NATIONAL SCRENIO

1)Bhrashtaachar

1990

Alleged ties and shady financial transaction between then prime minster narismaharao and a pickle baron

The launch of the megahit movie 2) Amul Lagaana upon every slice of bread June,2001 Lagaan

3)black mail chhodo yellow maalkhano

August ,2012

Sonia Gandhi, the president of the ruling Congress party, that 'blackmail is the political bread and butter' of the opposition BharatiyaJanata Party. It was a reference to the BJP's demand that Prime Minister Manmohan Singh resign over a coal-mining scandal

4) Chak de..!!

April ,2012

The controversial detention of actor shah rukh khan at Newark airport.one of his well knows movies (Chake de India )

5) Clint Feast foods with

Obamul

September,2012

Clint Eastwood's performance speaking to achair at the Republican National Convention in tamba.

6) Coalmaal September ,2012

Allegations of graft in Indias coal-mining sector as a national scandal erupt. 'Coalmaal is a play on the Bollywood movie 'Golmaal, about a band of young con-artist. The landmark research findings about a newsubatomic particle, the Higgs boson, or 'God particle in July.

7)Every Particles God July 2012 Sent ! Amul making mass-ka out of matter

8)Khan a, Hazare!Amul lokpriyamakhan

December 2011

Hunger-fasting of anticorruption activist Anna Hazare.

9)Kolkartoon?

2012 april

West Bengal Chief Minister Magmata Banerjee's anger over a political cartoon that mocked her.

10)Hum kisiseKom Nain

2012 August

India's MC Mary Kom won an Olympic bronze medal for boxing at the London Games

1The prime minister is shown in a pickle jarand the headline is a play on the wordscorruption' and 'pickle'

2 The headline's a pun: 'Lagaana" is a Hindi word that means 'Put' So it reads, 'Put Amulupon every slice of bread.

3. In August, Mr. Da Cunha wanted to capitalize on a pun-worthy remark by Sonia Gandhi, the president of the ruling Congress party, that 'blackmail is the political bread and butter' of the opposition Bharatiya Janata Party. It was a reference to the BJP's demand that Prime Minister Manmohan Singh resign over a coal-mining scandal. But he decided not to put Mrs Gandhi in this ad, fearful of a backlash from her supporters.

4. Amuls take on the controversial detention of actor Shah Rukh Khan at Newark airport. One of his well-known movies (about women's field hockey) is called 'Chak De! India. 5. Amuls parody of Clint Eastwood's performance speaking to a chair at the Republican National Convention in Tampa earlier this month.

6. Amul tackles allegations of graft in India's coal-mining sector as a national scandal erupts. Coalmaal' is a play on the Bollywood movie 'Golmaal,' about a band of young con-artists.

7.This Amul ad celebrated the landmark research findings about a new subatomic particle, the Higgs boson, or 'God particle,' in July.

8. In this Amul ad from December 2011, the little girl offers a slice of buttery bread to hunger-fasting anticorruption activist Anna Hazare. 'Khana' (a pun on his name) means 'Eat this. 9. Amuls send up of West Bengal Chief Minister Mamata Banerjee's anger over a political cartoon that mocked her. The Amul ad didn't appear in Kolkata, Ms Banerjees home state, because adman Rahul daCunha was fearful of a backlash against the Amul brand there.

10. Indias MC Mary Kom won an Olympic bronze medal for boxing at the London Games. The celebratory headline is a pun on her name and a Hindi phrase meaning 'We're not less than anybody .'Consumer product brands starts projecting current events in their advertises then it paves way for further awakening. Such advertise is always a reflection of and a response to the change taking place in socio-cultural milieu. This is where Amul Butter ads enter the scene. For more than half a century, advertisements for the brand Amul Have stuck the knife into politicians, sports stars and other celebrities for all manners of blunders and scams and celebrated national heroes and achievement.

CHAPTER 6
LIMITATIONS
Environmental regulations

Oversupply of raw milk

Lack of increased processing capacity and innovation

High environmental mitigation costs

Low investment in successful promotion, marketing, and product innovation except for Amul

Legal and regulatory reforms need to be introduced in many remote areas

CHAPTER 7 SUGGESTIONS:
India is the world's highest milk producer and all set to become the world's largest food factory. In celebration, Indian Dairy sector is now ready to invite NRIs and Foreign investors to find this country a place for the mammoth investment projects. Be it investors, researchers, entrepreneurs, or the merely curious Indian Dairy sector has something for everyone. Milk production is relatively efficient way of converting vegetable material into animal food. Dairy cows buffaloes goats and sheep can eat fodder and crop by products which are not eaten by humans. Yet the loss of nutrients energy and equipment required in milk handling inevitably make milk comparatively expensive food. Also if dairying is to play its part in rural development policies , the price to milk producers has to be remunerative. In a situation of increased international prices, low availabilities of food aid and foreign exchange constraints, large scale subsidization of milk conception will be difficult in the majority of developing countries. Hence in the foreseeable future, in most of developing countries milk and milk products will not play the same roll in nutrition as in the affluent societies of developed countries.

Effective demand will come mainly from middle and high income consumers in urban areas.There are ways to mitigate the effects of unequal distribution of incomes. In Cuba where the Government attaches high priority to milk in its food and nutrition policy, all pre-school children receive a daily ration of almost a litre of milk fat the reduced price. Cheap milk and milk products are made available to certain other vulnerable groups, by milk products outside the rationing system are sold price which is well above the cost level. Until recently, most fresh milk in the big cities of China was a reserved for infants and hospitals, but with the increase in supply, rationing has been relaxed. In other countries dairy industries have attempted to reach lower income consumers by variation of compositional quality or packaging and distribution methods or blending milk in vegetable ingredients in formula foods for vulnerable groups. For instance, pricing of products rich in butter fat or in more luxury packaging above cost level so as to enable sales of high protein milk products at a some what a reduced price has been widely practiced in developing countries. This policies need to be brought in Indian Dairy scenario.

CHAPTER 8 CONCULSION
1. Production Cost Reduction: In order to increase the competitiveness of Indian dairy industry, efforts should be made to reduce cost of production. This can be achieved through increasing productivity of animals, improve animal health care and breeding facilities and management of dairy animals. The Government and dairy industry will need to play a vital role in this direction. 2. Strategy and Infrastructure Development: Indian dairy industry should further develop proper dairy production, processing and marketing infrastructure, which is capable of meeting international quality requirements. A comprehensive strategy for producing quality and safe dairy products should also be formulated with suitable legal backup. 3. Focus on Specialty Products: Dairy industry in India is unique with regard to the availability of buffalo milk. In this case, India can focus on buffalo milk based speciality products, such as Mozzarella cheese, in order to meet the needs of the target consumers.

BIBLOGRAPHY
http://www.livestrong.com/article/539259-the-disadvantages-of-dairy/#ixzz2fyxA4XJi

http://www.businessdictionary.com/definition/strategy.html#ixzz2fWNILmQP http://www.livestrong.com/article/539259-the-disadvantages-of-dairy/#ixzz2fywadCdc

http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDYQFjA B&url=http%3A%2F%2Fwww.iitk.ac.in%2Finfocell%2Fannounce%2Fconvention%2Fpaper s%2FChanging%2520Playfield-02Rajeev%2520Ranjan%2C%2520Rahul%2520Bangabash.pdf&ei=qGBBUpGNIIaGiQeCt4H AAw&usg=AFQjCNHcfLhyoyBYU0jWRTdptpx8h6DthA&sig2=0pih2wSHV1ipxRJ4cIMeQ&bvm=bv.52434380,d