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Submitted by:
Sayam Roy
Regd. No 1301247023
Internal guide
Prof. Dr. Ajitabh Das
Faculty of marketing Management
RCMA, Bhubaneswar
BHUBANESWAR, ODISHA
Chakadola Vihar, Chandrasekharpur, Bhubaneswar 751023, Odisha
Tel: +91 674 2301595/ 2300455 / 466, Fax : +91 674 2300421, Email: director@rcm.ac.in
DECLARATION
I, Sayam Roy, pursuing PGDM (Post Graduate Diploma in Management) from Regional College of
Management Autonomous, Bhubaneswar, do hereby declare that this project on Performance of product
portfolio offered by Milk Mantra with respect to its competitors undertaken by me is a true work of
myself and is not submitted to any other university or published at any other time before for the purpose of
any degree or diploma.
Place:
Date:
Sayam Roy
Regd. No. 1301247023
2
ACKNOWLEDGEMENT
As a student of Regional College of Management Autonomous, Bhubaneswar I would like to extend my
sincere gratitude and thanks to Prof. Dr. Ajitabh Dash (RCMA) whose persistent supervision and
cooperation has been the source of inspiration for me during the internship.
It was because of his immense help and support that this project has been duly completed.
However, I accept the sole responsibility for any possible error and would be extremely grateful to the
readers of this dissertation if they bring such mistakes to my notice.
CONTENTS
1) Chapter 1 : INTRODUCTION..5 to 8
i) Introduction
ii) Background of the study
iii) Statement of the research problem
iv) Relevance of the study
v) Objective of the study
vi) Research hypothesis
vii) Limitation of the study
2) Chapter 2 : LITERATURE REVIEW9 to 15
i) Review of past literature
ii) Literature gap
iii) Contribution of the present study
3) CHAPTER 3 : CONCEPTUAL FRAMEWORK16 to 21
i) Introduction
ii) Role of Marketing mix in Milk Products
iii) Product Polio As A Component Of Marketing Mix
iv) Profile of Milk Mantra
v) Profile of its Competitors
4) Chapter 4 : RESEARCH METHODOLOGY...22
i) Introduction
ii) Method of investigation
iii) Sample for the study
iv) Sample selection
v) Period of the study
vi) Statistical tools and techniques used
5) Chapter 7: DATA ANALYSIS AND INTERPRETATION...23 to 26
6) Chapter 8 : FINDINGS AND CONCLUSION.27 to 32
i)
ii)
iii)
iv)
7) BIBLIOGRAPHY....32
Chapter 1: INTRODUCTION
i) Introduction
Indian Dairy Industry
The Indian dairy industry has been through an evolution right from the British era till today. It has come
a long way over the years from a milk production volume of 55.7 million tons in 1991-92 to 127.3
million tons in 2012. Steadily and firmly, it has cruised to become numerouno in the list of milk
producing countries and the smallholder milk producers have scripted this success story. Today, the
Indian Dairy industry stands at a mammoth size of US$ 70 billion. Given the highest mulch bovine
population of 115.487 million in the world, India exhibits tremendous potential to further strengthen its
position in the world dairy market. The operation flood program promoted and implemented by the
National Dairy Development Board (NDDB) has been instrumental in bringing about a white revolution
in India. Changing lifestyle, feeding habits and urban culture has somewhat effected the transition of the
Indian dairy Industry into a more of a demand driven, highly diversified and exciting business
proposition.
The country accounts for more than 15 per cent of worlds total milk production and is also the worlds
largest consumer base of dairy products, consuming almost all of its own milk production. Dairying has
been regarded as one of the activities that could contribute to alleviating the poverty and unemployment
especially in the droughtprone and rainfed areas. In India, about threefourth of the population live in
rural areas and about 38 per cent of them are poor. Therefore among these people, as well as the large
vegetarian segment of the countrys population, dairy products provide a critical source of nutrition and
animal protein to millions of people in India.
Prior to year 2000, India was not noticed by most international dairy companies, as the country was
neither an active importer nor an exporter of dairy products.
Currently, the Indian dairy market is growing at an annual rate of 7 per cent. Despite the increase in
production, a demand supply gap has become imminent in the dairy industry due to the changing
consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India. This
means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing
Indian economy.
Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is
processed and marketed by 170 milk producers' cooperative unions, which federate into 22state
cooperative milk marketing federations. The organized sector still remains a minor stakeholder and
handles about 20 per cent of the milk whereas the unorganized sector of the dudhiyas and mithaiwallas
still controls about 80 per cent of the industry. The structure of Indian dairy industry, as mentioned in
figure, further reveals that organized sector of Indian dairy industry comprise of private dairies, various
Milk Cooperatives Societies and Government dairies.
Private Dairies
(532)
Indian Dairy
Industry
Organised
20%
Cooperative
Societies (258)
Unorganised
80%
Government
(46)
India has the credit of being the largest producer as well as the biggest consumer of milk in the world. It
also has the worlds largest dairy herd (comprised of cows and buffalos). In 2010-11, livestock generated
output worth INR 2,075 billion (at 2004-05 prices) which comprised 4% of the GDP and 26% of the
agricultural GDP. Indias milk production accounts for 16% of total global output. The dairy industry is
expected to grow 4-5% per annum. In the past 20 years, milk production in India has doubled and has
reached the 116.2 million tons a year thus becoming Indias No.1 farm commodity. The current market
size of the dairy industry is INR 2.6 trillion and is estimated to grow up to INR 3.7 trillion by 2015.
As per the latest statistics of National Dairy Development Board (NDDB), the dairy cooperative network
in the country includes 177 milk unions covering 346 districts and over 1, 33,000 village-level societies
with a total membership of nearly 14 million farmers. All the statistics given above are indicators of a
flourishing dairy sector in India providing suitable opportunities to the industries engaged in the dairy
business.
The Orissa State Cooperative Milk Producers Federation Limited (OMFED) is a Dairy Cooperative
Society at the apex level. The main activities of OMFED are production, promotion, procurement,
marketing and processing of milk and its various products for the economic development of the
community of village farming in the state of Orissa. It is the leading organized milk producer of Odisha
and has come into existence to integrate the milk producers in rural areas with consumers in the urban
areas with an enterprising aptitude. OMFED is clearly the market leader till date in Odisha.
On the other hand the name Milk Mantra conveys a message that it is possible to establish a strong link
between the consumer and the producer, without compromising on quality, fair price for producers and
returns for investors. The company has successfully provided alternative products and, in the process,
demonstrated consumers will not hesitate to pay more for quality products. The company has made
inroads into the well-established supply chain through ethical milk sourcing.
6
Gaps in information: In this era of information technology, the dairy sector is unorganized with
respect to the support information. There is no record of the milk, which is being collected from
different milk producers at the collection centres. If anything goes wrong in terms of the discovery of
9
zoonotic disease organisms at a later stage there is no scope of backtracking to the farmer. Though
there has been a success in this regard with the e-governance project being implemented in AMUL
with the help of IIM Ahmadabad, it has not been replicated by all the cooperative societies in the
sector.
Absence of a screening system: Milk before being pooled up at the collection centre from various
farms and animals are not subjected to any screening for the zoonotic diseases and adulterants and
contaminants in many of the cooperative societies. This often results in spoilage of the entire batch
of the pooled milk if one of the milk cans goes undetected. Linking back to source as such is not
possible in the absence of a database.
Lack of Infrastructure: When there is a thrust on increasing the milk production, then there should
be ample amount of facilities to handle it. There is a dearth of required infrastructure of chilling
plants and bulk coolers due to which so much of milk goes waste due to spoilage.
Manipulation of the quality of milk by the farmers: The farmers not being able to get fair and
remunerative prices for the milk often tend to give adulterated milk at the collection centres. They
often add additives to forge the fat content of the milk and get better price for the lot. Addition of
vegetable fat, animal fat, starch, etc. has been quite frequent among the farmers to alter the fat and
solid content of the milk.
Low prices of milk: The co-operatives declare low prices for procuring milk from the farmers,
which benchmarks the prices and forces other players to sell milk at the same prices.
Inefficient services: The cooperatives have also failed in many parts of the country in providing the
basic inputs in terms of quality feed, exotic germplasm and veterinary services.
Insufficient Infrastructure: Some of the co-operatives are lacking the cooling and milk testing
facility at the village level collection centres.
Literature Review 2:
The Economics of Milk Production in Orissa, India,with Particular Emphasis on Smallscale Producers
by Amit Saha, Otto Garcia and Torsten Hemme
Results
Milk Production in India and Orissa
India is a world leader in milk production, contributing about 15 percent to total world output. In 2002, India
produced an estimated 84 million MT, second only to the EU. Milk yields in India, at 694 kg per cow per
year, however, are extremely low compared to other large milk producing countries such as the USA,
Germany or New Zealand. Average milk yields per animal in the US were 11 times higher than those of
India, while for New Zealand the figure is 5 times higher. Farm gate prices received in the US were twice as
high, while those received in Germany were 50 percent higher than those received by Indian farmers. Only
in New Zealand were farm gate prices found to be slightly lower.
Orissa does not contribute significantly to milk production in India. With only 1.7 percent of the dairy cow
population and 0.4 percent of the buffalo population in 2002, milk production in Orissa contributed only 1.1
percent to the milk produced in India. Most of the milk in Orissa is produced on farms with marginal to
small landholdings, less than 2 hectares, and with 3 or 4 animals. Even by Indian standards, milk yields in
Orissa are extremely low (1/4 of the Indian average). Farm gate prices of milk are only slightly lower than
the Indian average, but still a little higher than those received in New Zealand. The per capita milk
production in Orissa is very low at 26 kg per capita per year while the annual per capita production in India
is 82 kg.
Analysis of Typical Farms in Ganjam and Gajapati Districts of Orissa
Based on the IFCN methodology, six farm types were identified as typical and were subjected to detailed
analyses. Two small dairy farms, IN-2CO (2 local cows and less than a hectare land) and IN-2BO (2
buffaloes and 1-2 ha land), represent over 95 percent of the dairy farms in Orissa. The farms IN-6CO (6
crossbred cows in a peri-urban area) and IN-6BO (6 grade buffaloes, also in a peri-urban area) represent the
fast growing medium sized commercial farm types in Orissa. These farm types provide a picture of the
economies of scale and the effect of location peri-urban and urban areas. Farms IN-15CO (15 local cows)
and IN-9BO (9 local buffaloes) represent only 5 percent of the farms in rural areas but have distinctly
different production and management characteristics due to their large herd size and access to areas for
common grazing.
Dairy production systems
Local, non-descript cows are the main type of dairy animals followed by buffaloes and crossbred cows. The
family is in charge of the management of the farm but they use the opportunity to hire very cheap labour.
Fallow and forest land can be used for grazing. Feed rations are based on agricultural by-products such as
rice bran, rice polish, broken rice, paddy straw and pulses meal. Commercial cattle feed is only used by the
medium sized commercial farms such as IN-6CO. Milking is done by hand. In terms of non fat corrected
milk (ECM), production per dairy animal ranges from 210 to 1,305 kg/year.
12
Household comparison
Household incomes range from 420 US-$ to 1,570 US-$ per year. Income structure is quite diverse with
non-cash benefits being prominent in the small systems. For example, draught power, manure and fuel from
cow dung, and milk used in the household account for 16 percent of the household income in IN-2CO. Off
farm income is quite important for all the stall fed systems in Orissa and constitutes 5 to 45 percent of the
household income.
Whole farm comparison
The returns from farming range from 460 US-$ to 2,910 US-$ per year. The dairy contributes 25 to 85
percent to the whole farm returns. The returns from cash crops are also important, ranging from 15 to 70
percent, depending on farm type. Net cash farm income closely follows the level of farm returns with the
exception of the large commercial cow system (IN-15CO), where net farm income is relatively low, mainly
due to comparatively high cash costs and hired labour costs in dairy per 100 litres ECM. The highest net
cash farm income was obtained in the commercial buffalo based dairy farming system (IN-6BO), mainly
due to lower unit costs of milk production.
The net cash farm income ranges from 190 US-$ to 1,100 US-$ per year. The low net cash income of 190
US-$ per year (IN-2CO) is due to low milk yields, small size of land holding, and slightly lower milk prices
paid by the cooperative due to lower fat content and remote location.
Comparison of the dairy enterprise - Costs of milk production
The buffalo-based pastoral dairy farming system (IN-9BO) and the commercial stall-fed crossbred cow
based dairy farming system (IN-6CO) have the lowest cost of milk production per 100 litres of ECM at
around 12.3 to 12.9 US-$. The commercial buffalo-based dairy farming system with grade buffaloes, IN6BO, has slightly higher costs at 14.6 US-$ per 100 kg ECM, mainly because of slightly higher purchased
feed costs. These farm types have the potential to compete in the long run with imports of dairy products and
also to produce milk for export, provided international quality standards can be achieved and the dairy chain
being internationally competitive.
In the small farm systems, the buffalo-based rural farm (IN-2BO) produces milk at a significantly lower unit
cost (at 19.9 US-$ per 100 kg ECM) than the IN-2CO cattle based farm which could only produce at 31.4
US-$. This can be explained by higher milk yields and higher labour productivity in IN-2BO. It has to be
noted, however, that the main purpose of IN-2CO is to produce milk for home consumption (30 percent of
the production) by converting locally available feedstuff into milk, livestock, fuel and draught power for its
crop activities. Given that IN-15CO can produce milk at comparatively lower costs (15.3 US-$ per 100 kg
ECM), there is a potential to lower milk production costs, but this requires the realization of economies of
scale in similar cattle-based farms through expansion to larger herd sizes. Another alternative could be a
herd of a cow and a buffalo for uniform milk production in the year (see Annex A-6).
As in small dairy farms in most other countries, farm IN2-CO will tend to persist as long as alternative
employment opportunities (at 0.14 US-$/hour in this case) are not available. With the existing wage rate for
dairy labour at 0.11 US-$/hour, the chances of obtaining available alternative employment seems remote.
Comparison of dairy farms in Orissa and Haryana
A comparison of typical and leading-edge farms in Orissa with corresponding farms in Haryana reveals that
milk production in Orissa is relatively cost competitive. Although milk yields in Orissa are much lower than
13
in Haryana, farmers in Orissa produce milk at competitive costs due to lower land costs and lower wage
rates. The availability of grazing land in Orissa and cheaper feed also contributes to lowering the costs of
milk production. Buffalo milk production was found to be more cost competitive in Orissa than in similar
farms in Haryana. However, farm gate milk prices are lower by around 5 percent in Orissa and farm incomes
are much lower in Orissa than in Haryana due to low milk yields and lower off-farm income.
Dairy chain in Orissa
Most of the milk marketing is done through the informal sector with milk being sold to the milkman or
locally. Farmers are encouraged to sell buffalo milk with higher fat content to co-operatives by milk pricing
based on fat content and assurance of seasonal fixed prices throughout the year.
Producer milk prices are 14 percent higher in the informal sector than in formal sector (milk union
cooperative). Consumer prices for fluid milk are also lower in the informal sector through the milkmen and
farmers selling directly in the rural market. Both the consumer and the producer markets are mostly captured
by the informal sector although the quality of milk handled through this channel is poor. Consumers have a
high price elasticity of demand for milk products. Without information on milk quality or means to check for
adulteration, consumers will continue to prefer the cheaper products and the informal sector will maintain its
hold of the major share of milk markets in Orissa.
It is estimated that only about 5 percent of total marketable supply of milk is handled by the formal sector,
the cooperatives. Estimates show that the cooperative milk union selling toned milk with 3 percent fat
receives value-added and retail margins of 0.22 US-$ per kg of raw milk used and of 0.06 US-$ for other
raw materials used (Skimmed milk powder). In the informal sector, the local milkman selling raw milk in
the nearby town or city receives a processing and retailing margin of 0.13 US-$ per kg of milk handled
followed by the peri-urban farmer selling milk directly in the town, who
The Economics of Milk Production in Orissa, India, with Particular Emphasis on Small-scale Producers 4
receives a margin of 0.12 US-$ per kg milk sold. The costs of value-added in the formal sector, however, are
significantly higher than in the informal sector.
Conclusions
The present study analyzed six typical dairy farming systems in Orissa. All the systems cover their cash
costs and contribute positively to farm income.
The most common dairy farming system, IN-2CO (2 local cows) produces very low cash farm income and
generates negative entrepreneurial profits. The persistence of this system is largely due to the low cash costs
of milk production. Moreover, given the scarcity of alternative employment opportunities for family labour,
the dairy activity produces a relatively good cash margin of around 10 US-$ per 100 kg ECM. There is
potential for improving farm income by improving milk yields and increasing herd size. The other small
dairy farming system, IN-2BO (2 buffaloes), has even lower costs of milk production than IN-2CO, mainly
due to its higher milk yields. Although the lowest net costs of milk production are incurred by the pastoral,
buffalo-based dairy farming systems (IN-6BO), this production system is not very prevalent in the region
given the scarcity of common grazing areas.
The share of off-farm income was the highest in the most prevalent small dairy farming system (IN- 2CO).
Family labour is a relatively important component of cost in small subsistence farm types like IN-2CO and
IN-2BO. In the commercial farm types such as IN-6CO and IN-6BO, purchased feed costs are
proportionately higher. Other returns from dairy such as cow dung for fuel and draught power are
14
proportionately higher in the small farms. An important component of the dairy farming system that results
in significant differences in farm profits are the returns to labour. The returns to labour are very low for the
small farms but much above the existing wage level in case of the commercial farms (IN-6CO and IN-6BO).
In case of pastoral systems, IN-9BO had comparatively higher returns to labour than IN-15CO mainly due to
the higher milk yields of the buffalo-based system.
A comparative analysis of typical dairy farms in Orissa and Haryana revealed differences in cost and
productivity of dairy farming in the two states. A large potential to reduce milk production costs of
smallholder dairy farming and increase family farm income through milk production exists in Orissa by
better breed, feed and herd management. Smallholders using buffalo for milk production in Orissa were
found to be more cost competitive than similar farms in Haryana. Hence suitable strategies to promote such
buffalo-based systems should have potential for improving the production and competitive position of
dairying in Orissa.
(ii) Literature gap
Does OMFED still enjoys the benefits of market leader that it used to 2-3 years back or is
it losing some grounds to its competitors like Milk Mantra, Amul, Kamdhenu.
If OMFED is still the market leader and its acceptability among the customers is highest
then how come Milk Mantra and or others are evolving and expanding at such a rapid
pace in Odisha and hence meticulously leveraging the power of branding and
merchandising and is using digital media extensively to promote their products.
15
Product marketing mix Comprised of Product, price, place and promotions. This marketing mix
is mainly used in case of Tangible goods.
Service marketing mix The service marketing mix has three further variables included which are
people, physical evidence and process.
The term marketing mix was first coined by Neil H Borden back in 1964 in his article The concept of
marketing mix. Several strategic analysts over the years believe that the marketing mix can make or break
the firm. Having the right marketing mix at the start of the marketing plan is absolutely essential. Over time
the concept of marketing mix has provided a steady platform for the launch of a new product or business.
As mentioned before, the marketing mix is characterized by four different but equally important variables.
These variables are never constant and may be changed over time. However, a change in one of the variables
may cause a change in all the other variables as well. The variables are as follows
Product The first thing you need, if you want to start a business, is a product. Therefore Product is
also the first variable in the marketing mix. Product decisions are the first decisions you need to take
before making any marketing plan. A product can be divided into three parts. The core product, the
augmented product and the tertiary product. Before deciding on the product component there are
some questions which you need to ask yourself.
o What product are you selling?
16
What are the secondary products which can be sold along with primary (Warranty, services)
Based on these questions, several product decisions have to be made. These product decisions
will in turn affect the other variables of the marketing mix. For example You launch a car with
is to have the highest quality. Thus the pricing, promotions and placing would have to be altered
accordingly. Thus as long as you dont know your product, you cannot decide any other variable
of the marketing mix. However, if the product features are not fitting in the marketing mix, you
can alter the product such that it finds a place for itself in the marketing mix.
Pricing Pricing of a product depends on a lot of different variables and hence it is constantly
updated. Major consideration in pricing is the costing of the product, the advertising and
marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these
factors can change separately. Thus the pricing has to be such that it can bear the brunt of
changes for a certain period of time. However, if all these variables change, then the pricing of a
product has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy. Competition can be the best example.
Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for
sales promotions in the form of trade discounts. Thus based on these factors there are several
pricing strategies, one of which is implemented for the marketing mix.
Place Place refers to the distribution channel of a product. If a product is a consumer product,
it needs to be available as far and wide as possible. On the other hand, if the product is
a Premium consumer product, it will be available only in select stores. Similarly, if the product
is a business product, you need a team who interacts with businesses and makes the product
available to them. Thus the place where the product is distributed, depends on the product and
pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge effect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by Rs.10 will in fact
bring about drastic changes in the profitability of the company. Thus supply chain and logistics
decisions are considered as very important costing decisions of the firm. The firm needs to have
a full proof logistics and supply chain plan for its distribution.
Promotions Promotions in the marketing mix includes the complete integrated
marketing communications which in turn includes ATL and BTL advertising as well as sales
promotions. Promotions are dependent a lot on the product and pricing decision. What is the
budget for marketing and advertising? What stage is the product in? If the product is completely
new in the market, it needs brand / product awareness promotions, whereas if the product is
already existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right
kind of promotions affect all the other three variables the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability might
support you in launching even more products. However, the budget required for extensive
promotions is also high. Promotions is considered as marketing expenses and the same needs to
be taken in consideration while deciding the costing of the product.
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All the four variables of marketing mix are inter related and affect each other. By increasing the
pricing of the product, demand of the product might lessen, and lesser distribution points might be
needed. On the other hand, the product USP can be such that maximum concentration is on creating
brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall
marketing mix can result in your customer base asking for some improvement in the product, and the
same can be launched as the upgraded product.
The role of marketing mix in Strategy Marketing mix plays a crucial role while deciding
the strategy of an organization. It is the first step even when a marketing plan or a business plan is
being made. This is because marketing mix decision will also affect segmentation, targeting and
positioning decisions. Based on products, segmentation and targeting will be done. Based on the
price, positioning can be decided. And these decisions will likely affect the place and promotion
decisions. Thus, the marketing mix strategy goes hand in hand with segmentation targeting and
positioning.
To market the products every company needs to create a successful mix of right product at
right price at the right place through right promotion.
4Ps
Requirement of Customer
Thus providing
Fresh liquid milk
Product
Solution to Customer
Affordable by common people
Price
Value to customer
Extensive availability as and when required
Place
Access to Customer
Promotion Proper info regarding the fat content, nutritional value
Information to Customer
(iii)Product Portfolio As A Component Of Marketing Mix
Product is anything that can be offered to a market to satisfy a want or need.
Product Levels
CORE BENEFIT
BASIC
PRODUCT
EXPECTED
PRODUCT
AUGMENTED
PRODUCT
POTENTIAL
PRODUCT
Augmented Product: -This refers to all additional factors which sets the product apart from
that of the competition. And this particularly involves brand identity and image. Is that warm
coat in style, its color trendy and made by a well-known fashion brand? But also factors like
service, warranty and good value for money play a major role in this.
Potential Product: -This is about augmentations and transformations that the product may
undergo in the future. For example, a warm coat that is made of a fabric that is as thin as paper
and therefore light as a feather that allows rain to automatically slide down.
PLC
Product Life Cycle is used to map the lifespan of the product, i.e. the stages through which a
product goes during its lifespan.
The four stages are: o INTRODUCTION:
Low and slow stage: The product sales are the lowest and move up very slowly at
snail's pace. Low levels of competition.
Highest Promotional Stage: During this period of introduction or the development,
promotional expenses bear the highest proportion of sales.
Highest Product prices: Lower input and sales absorbing fixed costs.
o GROWTH: Once the market has accepted the product, sales begin to rise. This is most crucial
stage and help the brand to establish in the market.
o MATURITY: Market becomes saturated because, the house hold demand is satisfied and
distribution channels are full.
o DECLINE: Sooner or later actual sales begin to fall under the impact of new product
competition and changing consumer tastes and preferences.
Features and strategies adopted at various stages of PLC.
FEATURES
INTRODUCTION
SALES
Low Sales
COST
High Cost/ Customer
PROFIT
Negative
CUSTOMERS Innovators
COMPETITION Few
MARKETING Create Product
OBJECTIVE
Awareness & Trial
GROWTH
Rapidly Rising Sales
Avg Cost/ Customer
Risisng Profits
Early Adopters
Growing Number
MATURITY
Peak Sales
Low Cost/ Customer
High Profits
Early & Middle Majority
Stable Number
Maximise Profit while
defending Market Share
DECLINE
Declining Sales
Low Cost/ Customer
Declining Profits
Laggards
Declining Number
Reduce Expenditure &
Maximise Market Share
Milk the Brand
Offer Product Extension &
Phase Out Weak
Diversify Brands and Items
Service Warranty
Product
Price to Match
Price to Penetrate Market
Cut Price
Competition
Build More Intensive
Build Intensive Distribution
Go Selective
Distribution
PRODUCT
PRICE
DISTRIBUTION
Build Selective
Distribution
ADVERTISING
STRATEGIES
SALES
Use Heavy Sales
Reduce to take advantage Increase to encourage
PROMOTION Promotion to entire trial. of heavy customer demand. Brand Switching
19
Milky Moo
Milk
Curd
Paneer
Lassi
Buttermilk
Omfed
Kandhamal
Organic
Products
Horticulture
Products
Turmeric
Powder
Orange sip
Ghee
Cattle feed
products
Premium
gold
Milk
Pineapple
sip
Table butter
Ice Creams
Paneer
Curd
Mustard
seed
Deer
mash
Honey
Mineral
mixture
Lemon
Ginger
Squash
Chennapod
Jam
Peda
Sauce
Rabdi
Pickle
Lassi
Cold Cofee
20
Amul
Milk
Milk
powder
Nutramul
Mithai
Range
Bread
Spreads
Chocolates
Ice Cream
Fresh Cream
AMUL
Paneer
Pouch
Butter Milk
Dahi
Ghee
Beverage
Range
Amul
PRO
Amul Cattle
Feed
21
22
OMFED
MILK MANTRA
Frequency
Percent
Frequency
Percent
Frequency
Percent
Strongly Disagree
20.0
16.0
Disagree
20.0
36.0
0
0
0
0
Neutral
36.0
28.0
20.0
Agree
20.0
20.0
15
60.0
Strongly Agree
4.0
0.0
0.0
20.0
25
100.0
25
100.0
25
100.0
Total
PERCENTAGE OF RESPONDENTS
Disagree
Neutral
Agree
Strongly Agree
AMUL Percent
Strongly
Disagree
20.0
20.0
36.0
20.0
4.0
OMFED Percent
16.0
36.0
28.0
20.0
0.0
20.0
60.0
20.0
OMFED
MILK MANTRA
Frequency
3
Percent
12.0
Frequency
5
Percent
20.0
12.0
Neutral
10
40.0
Agree
Strongly Agree
Strongly Disagree
Disagree
Total
Frequency
Percent
36.0
0
0
0
0
12.0
20.0
28.0
16.0
10
40.0
8.0
4.0
16.0
10
40.0
25
100.0
25
100.0
25
100.0
PERCENTAGE OF RESPONDENTS
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
12.0
12.0
40.0
28.0
8.0
OMFED Percent
20.0
36.0
12.0
16.0
16.0
20.0
40.0
40.0
Strongly Agree
23
OMFED
MILK MANTRA
Frequency
3
Percent
12.0
Frequency
4
Percent
16.0
Disagree
32.0
Neutral
12.0
Agree
Strongly Agree
5
25
Strongly Disagree
Total
Frequency
Percent
24.0
0
0
0
0
36.0
10
40.0
24.0
16.0
15
60.0
20.0
2.0
8.0
0.0
100.0
25
100.0
25
100.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
12.0
32.0
12.0
24.0
Strongly
Agree
20.0
OMFED Percent
16.0
24.0
36.0
16.0
8.0
40.0
60.0
0.0
OMFED
MILK MANTRA
Frequency
3
Percent
12.0
Frequency
3
Percent
12.0
Disagree
12.0
Neutral
20.0
Agree
12
2
25
Strongly Disagree
Strongly Agree
Total
Frequency
Percent
12.0
0
0
0
0
32.0
20.0
48.0
10
40.0
15
60.0
8.0
1.0
4.0
20.0
100.0
25
100.0
25
100.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
12.0
12.0
20.0
48.0
Strongly
Agree
8.0
OMFED Percent
12.0
12.0
32.0
40.0
4.0
20.0
60.0
20.0
24
OMFED
MILK MANTRA
Frequency
Percent
Frequency
Percent
Frequency
Percent
Strongly Disagree
8.0
28.0
Disagree
24.0
28.0
0
0
0
0
Neutral
10
40.0
28.0
20
80.0
Agree
16.0
8.0
20.0
Strongly Agree
12.0
2.0
8.0
0.0
25
100.0
25
100.0
25
100.0
Total
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
8.0
24.0
40.0
16.0
Strongly
Agree
12.0
OMFED Percent
28.0
28.0
28.0
8.0
8.0
80.0
20.0
0.0
OMFED
MILK MANTRA
Frequency
4
Percent
16.0
Frequency
5
Percent
20.0
Frequency
Percent
28
16
10
40.0
16.0
7
4
Neutral
32.0
20.0
28.0
Agree
12.0
28.0
28.0
Strongly Agree
0.0
4.0
16.0
0.0
25
100.0
25
100.0
25
100.0
Disagree
Total
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
16.0
40.0
32.0
12.0
Strongly
Agree
0.0
OMFED Percent
20.0
16.0
20.0
28.0
16.0
28
16
28.0
28.0
0.0
25
OMFED
MILK MANTRA
Frequency
0
Percent
0.0
Frequency
4
Percent
16.0
Disagree
10
40.0
Neutral
15
60.0
Agree
0.0
Strongly Agree
0.0
25
100.0
25
Strongly Disagree
Total
Frequency
Percent
24.0
13
7
52
28
32.0
8.0
8.0
12.0
5.0
20.0
0.0
100.0
25
100.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Disagree
Neutral
Agree
AMUL Percent
Strongly
Disagree
0.0
40.0
60.0
0.0
Strongly
Agree
0.0
OMFED Percent
16.0
24.0
32.0
8.0
20.0
52
28
8.0
12.0
0.0
OMFED
MILK MANTRA
Frequency
8
Percent
32.0
Frequency
2
Percent
8.0
Disagree
8.0
Neutral
4.0
Agree
Strongly Agree
6
25
Strongly Disagree
Total
Frequency
Percent
32.0
3
4
12
16
12.0
20.0
32.0
36.0
32.0
24.0
3.0
12.0
20.0
100.0
25
100.0
25
100.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Disagree
AMUL Percent
Strongly
Disagree
32.0
Neutral
Agree
8.0
4.0
32.0
Strongly
Agree
24.0
OMFED Percent
8.0
32.0
12.0
36.0
12.0
12
16
20.0
32.0
20.0
26
27
28
29
30
Milk Mantra
As we can see that Milk Mantra is in a position where it has to invest to build.
(ii) Suggestions
Milk Mantra should properly inform customers regarding the fat content through various
advertisements and promotions.
The pricing of the products must be reviewed by Milk mantra taking into consideration the price
set by its major rival Omfed. Proper pricing will make the products more acceptable to
customers.
There is a huge gap in the proper distribution of milk mantra products. Hence the logistics system
must be analyzed. Also Milk mantra must review and consider the distribution through district
milk union concept which may help them to revamp the distribution system.
In case of odor it has better acceptance compared to omfed and hence must utilize this fact for
business growth.
The major strengths of milk mantra lies in taste, high nutritional value, freshness and hygiene so
milk mantra must maintain the same and moreover look for opportunities to improve these as and
when required.
31
(iii)Conclusion
Milk Mantra is in a position where the market attractiveness is high (being dairy industry) whereas
the business strength of Milk Mantra is medium.
It must challenge the market leader OMFED for leadership. It must build selectively on its strengths
and thus reinforce in vulnerable areas so that it can evolve to become a much stronger business unit
and hence become the market leader in dairy industry in Odisha.
32
CHAPTER 7: BIBLIOGRAPHY
Marketing Management (14th Edition) by Philip Kotler and Kevin Lane Keller.
Reference
1.
2.
3.
4.
en.wikipedia.org
www.google.co.in
http://www.segmentationstudyguide.com/
http://www.strategicmanagementinsight.com/
33