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Marketing strategy is a process that allows organization concentrate on a

limited resource on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. Marketing strategies serve as the fundamental underpinning of marketing
plans designed to fill marketing needs and reach marketing objectives plans and objectives are
generally tested for measurable result. Commonly, marketing strategies are developed as multi-
year plan, with a tactical plans detailing specific action to be accomplished in the current year.
Marketing strategies are dynamic and interactive. They are partially planned and partially

Marketing strategy involves careful scanning of the internal and external

environments, which are summarized in a SWOT analysis. Internal environment factors included
the marketing mix ,plus performance analysis and strategic constraints and external
environmental factors include customer analysis, competitor’s analysis, target analysis as well as
evaluation of any elements of the technological , economic culture or political /legal environment
likely to impact success .A component of market strategy is often to keep marketing in line with
a company’s overarching machine statement .Besides SWOT analysis , portfolio analysis , such
as the GE/McKinsey matrix or COPE analysis can be performed to determine the strategy focus.

Once a through environment scan is complete , strategic plan can be

constructed to identify business alternative, establish challenging goal, and detail implementation
.A final step in developing a marketing strategy is to create a plan to monitor progress and set of
contingencies if problems arise in the implementation of the plan.
The present study is entitled as “a study on marketing strategic of MILMA” .Marketing
strategy I highly essential in every in organization in order to achieve marketing goal. Eric
assessment of marketing strategic can help to understand marketing of branded milk product in
today’s competitive world. New company is emerging in milk industry and those companies are
keeping good quality and introduced verity flavor of milk product with the organization. So if
affirm wants to successful it needs to create a marketing strategy that aims them to distinguish it
offering from that of competitors.


The study conducted for knowing marketing strategy adopted by MILMA DAIRY
TRCMPU Ltd, through this project the researcher attempt to find out the distribution channels
and marketing efforts of MILMA DAIRY. Need of the study is to check the effectives of the
marketing strategies of the company for MILMA products and to suggest step to improve the
marketing strategies. Making and using a marketing strategy has a strong positive impact on
profitability. The study under taken to know about the customer’s level of satisfaction regarding
the products and services of MILMA under KOLLAM DAIRY.

Research methodology is a way to solve the research problem systematically. Consumer
research can be made either directly or indirectly .The direct method is to enquire among
prominent customers, retailers and opinion of leader. It involves the collection of primary and
secondary data, sampling and survey methods. The data collected are analyzed and interpreted
with the help of diagrams and percentage analysis. The sources of primary data are client
interviews and questionnaires. The source of secondary data are book collected from
publications of, MILMA Dairy and internet.

Data constitute the foundation of the research. Hence the first step was to gather the required
data. The study was conducted by MILMA Dairy and data collected from various sources were
divided into two parts.

1. Primary data
2. Secondary data

Primary Data
Primary data refers to the data that is collected a fresh and recorded for the first time .

1. Questionnaire Method
2. Observation Method

Secondary Data
Secondary data refres to the collection of data which have been already passing through
statistical process . The secondary data are collected from .

1. Text books
2. Journals and magazines
3. Website
4. Periodicals


 Time is the most critical limiting factor in this study .

 Most of the data required are not accessible because of the unwillingness of certain
departments to disclose the information .
 The unwillingness to disclose all the information from certain department .
 Busy work schedule of the employees is one of the other main factor .
 The area of study is restricted to places .

The project titled ,”A study on marketing strategy of MILMA “ is organized to five chapters .

The first chapter consists of introduction about the topic . The introduction of the topic is
consists of detailed explanation about the topic , Statement of problem , Objectives of study ,
Need and significance of the study , Research methodology and Limitation of the study . Each
heading describes importance for the topic such as the objectives framed and also it gives the
outline for how this project is done and what procedures are followed .

The second chapter consist of the profiles namely in the Industry profile ,Company profile
and product profile . Industry profile consists of detailed explanation about which type of
industry is chosen by the researcher . The company profile consists of detailed explanations
about the company and product profile which explains about the which was placed for this
project .

The third chapter consists of the review of literature .

The fourth chapter consists of Theoretical Background .


The ‘Indian dairy industry has made rapid progress since independence .A large number
of modern milk and milk products factories have been established. These organized dairies
have been successfully engaged in the routine commeSrcial production of pasteurized milk
and milk products.India is the world’s largest milk producer that is certified by the international
dairy industry’ .

Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purpose. Dairy technology has been defined as
that branch of dairy science, which deals with the processing of milk and manufacture of
milk products on an industrial scale.

In India, dairying has been practiced as a rural cottage industry since the remote past. Semi-
commercial dairying started with the establishment of military dairy farms and co-operative
milk unions throughout the country towards the end of the nineteenth century
.During the earlier years,each household in those countries maintained its ‘family cow’ or
secured milk from its neighbour who supplied those living closed by. As the urban population
increased, fewer households could keep cow for private use. The high cost of milk
production, problems of sanitation etc, restricted the practice and gradually the family cow in the
city waseliminated and city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk over regular routes in the
cities. This was the beginning of fluid milk-sheds which surround the large cities of today.
Prior to the 1850s most milk was necessarily produced within a short distance of the place
of consumption because of lack of suitable means of transportation and refrigeration. The Indian
dairy industry has made rapid progress since Independence. A large number of modern
milk plants and products factories have since been established. These organizes dairies have bee
nsuccessfully engaged in the routine commercial production of pasteurized bottle milk and
various Western and Indian dairy products. With modern knowledge of the protection of milk
during transportation, it became possible to locate dairies where land was less expensive and
crops could be grown more economically.

In India, the market milk technology may be considered to have commenced in 1950, with the
functioning of the Central Dairy of Aarey Milk Colony and milk product technology in 1956with
the establishment of AMUL Dairy, Anand. The industry is still in its infancy and barely10% of
our total milk production The most valuable resources that a dairy business can have are
reliable and productive workers. Today’s tight labour market means that workers have many
employment choices. Dairy producers need to do all they can to keep their best employees and
attract other excellent workers to their team.

Maximizing farmer profit and productivity through cooperative effort is the hallmark of
the Anand Pattern.

The Anand Pattern is an integrated cooperative structure that procures, processes and markets
produce. Supported by professional management, producers decide their own business policies,
adopt modern production and marketing techniques and receive services that they can
individually neither afford nor manage.
The Anand Pattern succeeds because it involves people in their own development through
cooperatives where professionals are accountable to leaders elected by producers. The
institutional infrastructure -- village cooperative, dairy and cattle feed plants, state and national
marketing -- is owned and controlled by farmers. Anand Pattern cooperatives have progressively,
linked producers directly with consumers.

Three tier structure

Village Society

An Anand Pattern village dairy cooperative society (DCS) is formed by milk producers.
Any producer can become a DCS member by buying a share and committing to sell milk only to
the society. Each DCS has a milk collection centre where members take milk every day. Each
member's milk is tested for quality with payments based on the percentage of fat and SNF. At the
end of each year, a portion of the DCS profits is used to pay each member a patronage bonus
based on the quantity of milk poured.

The District Union

A District Cooperative Milk Producers' Union is owned by dairy cooperative societies.

The Union buys all the societies' milk, then processes and markets fluid milk and products. Most
Unions also provide a range of inputs and services to DCSs and their members: feed, veterinary
care, artificial insemination to sustain the growth of milk production and the cooperatives'
business. Union staff train and provide consulting services to support DCS leaders and staff.

The State Federation

The cooperative milk producers' unions in a state form, a State Federation, which is
responsible for marketing the fluid milk and products of member unions. Some federations also
manufacture feed and support other union activities.
NDDB Dairy Services (NDS), a not for profit Company under section 25 of the
Companies Act, is a wholly owned subsidiary of the NDDB. It functions as a delivery arm of the
NDDB for field operations relating to promoting Producer Companies and Productivity Services
and is providing technical and management services for some activities under the National Dairy
Plan. It has professionals drawn from the cooperative, private and developmental sectors.

NDS is assisting producers in establishing Producer Companies which are producer owned
enterprises incorporated under provisions of Part IX A of the Companies Act but run on
principles of mutual assistance and cooperation and managed by competent professionals. NDS
has already established five large Producer Companies in Rajasthan, Gujarat, Uttar Pradesh,
Punjab and Andhra Pradesh. Preliminary work for setting up a Producer Company in the
backward regions of Maharashtra- Vidarbha and Marathwada has also been initiated.

NDS is currently managing the two largest semen stations in the country- Sabarmati Ashram
Gaushala located in Gujarat and Animal Breeding Centre located in Uttar Pradesh. Two more
large semen stations are being setup in Tamil Nadu and Maharashtra.

Operation Flood

The strategy for the organised dairy development in India has actually been conceived in
the early 60’s which was strengthened with the establishment of the National Dairy Devt. Board
(NDDB) in 1965. The operation flood (OF) is an unique approach conceived by Dr. V. Kurein,
the founder Chairman of NDDB whose vision saw an opportunity to utilise the surplus milk
products namely the milk powder and the butter oil that have been accumulated in the European
Markets and have posed a major threat and a death knell for the developing dairy industry in
India. The operation flood designed basically as a marketing project revolutionized the Indian
Dairy Industry recognizing the potential of the European surpluses as an investment in the
modernisation of the Indian Dairy Industry with the assistance of the World Food Programme
(WFP), Food Aid in the form of milk powder and butter oil obtained from the countries of
European Economic Commission (EEC). The funds to the tune of 116.54 crores have been
generated by the sale of 1,26,000 tons of skim milk powder (SMP) and 42,000 tons of butter oil
for the implementation of the operation flood (OF). During this frist phase of Operation Flood
(OF) which was launched in 1970, and was popularly known as “White Revolution”. The funds
generated through the sale of WFP gifted commodities were utilised to develop 27 rural milk
sheds covering 10 states and setup dairies called as “Mother Dairies” in the four metropolitan
cities. Thus it laid the foundation to the modern dairy industry ultimately to meet the needs of the
milk and milk products of the country. The commercial imports of milk powder which were
around 60,000 mt prior to the launching of OF have shown a declining trend and were almost
ceased completely by the year 1975-76 except for a couple of years, where the milk powder was
imported commercially during the period of extreme drought conditions to meet the liquid milk


Milma is the popular name given to Kerala Co-operative Milk Marketing Federation
(KCMM ) . Milma started its operation in 1980 with its head office at Thiruvananthapuram. It
was started under the Indo-Swiss project. The project was launched in 1963 on the basis of
a bilateral agreement executed between the Swiss Confederation and the Government of India.
The project has made great strides in the improvement of livestock farming in the state. One
of them is the development of Swiss Brown, a cross breed suited for the states conditions. The
project is now managed by the Kerala Livestock Development and Milk Marketing Board. It
main motive was to implement the Operation Flood programme started by the National Diary
Development Board (NDDB) in Kerala. The project impact was so widespread that close to
about 83%of the adult cattle to the state got converted to the new breed- Sunandini, the milk
production increased by over ten times and the availability of milk increased by over 7 times
with over a million families dependant on milk production.
The project has succeeded in integrating better technology and management to thetraditi
onal small holder production system. It also demonstrated how the high productive, semistall
fed cows led to a spontaneous decline in the total bovine population of the state from 34.6lakh in
1977 to 21.86 lakh in 2003 when the total bovine population of India went through anupsurge.
This contributed immensely to environmental sustainability. By demonstrating a growthmodel
for productivity enhancement, the productivity enhancement, the project not onlyimpacted the
million small livestock in Kerala, but also millions outside the state.The project demonstrated
revolutionary institutional changes beginning with the Indo
Swiss project of Kerala, an autonomous institution under the government of Kerala Livestock


Now well-known by the popular sobriquet ‘MILMA’, Kerala Co-operative Milk

Marketing Federation (KCMMF) was formed in 1980 as a state adjunct of the National Dairy
Programme ‘Operation Flood’. It is a three-tiered organization. At the grassroots level MILMA
has 3206 Anand model primary milk co-operative societies as on 31.03.2015 with 9.24 lakh local
milk producing farmers as members. These primary societies are grouped under three Regional
Co-operative Milk Producers’ Unions viz TRCMPU for Thiruvananthapuram region, ERCMPU
for Ernakulam region and MRCMPU for Malabar region. At the apex level KCMMF functions
from the headquarters at Thiruvananthapuram. From the different units managed directly by
KCMMF and the various units under regional unions MILMA produces and distributes
pasteurized Vitamin – A enriched milk and various milk-based products as well as mango drink
throughout the state. MILMA has been instrumental in achieving the national goal of self-
sufficiency in milk production in the state. Still the goal is receding as Kerala enjoys one of the
highest ranges of per capita milk consumption. KCMMF is totally content in the realization of
this vision which was set before it. KCMMF has achieved the distinction in its performance by
close association and bond with National Dairy Development Board, Animal Husbandry
Department and Dairy Development Department of the State and Kerala Livestock Development

Kerala Co-opertive Milk Marketing Federation (KCMMF), popularly called ‘MILMA’ was
established in April, 1980 with is head office at Trivandrum for the successful implementation of
‘Operation Flood’ Programme in Kerala.

Brand household name, ‘MILMA’ stands for milk and a whole variety of milk products which
enjoy the confidence of each and every Keralite, for their unmatched quality and standard. The
name also signifies the vast organization Kerala Co-operative Milk Marketing Federation
(KCMMF) with it units of procurement, processing and sale spread over all the villages and
towns of the state, giving employment and prosperity to a large number of small and marginal
farmers including women and the landless, processing employees and sellers. KCMMF was
established in 1980 with its Head Office at Thiruvananthapuram for the successful
implementation of the dairy programme ‘Operation Flood’ under NDDB. Over the years,
MILMA has developed a long-term health perspective about the people of the state, who suffer
from life style diseases including diabetes and obesity, albeit economic prosperity. So, MILMA
has attuned its products to ensure balanced nutrition as well as reduced cost of healthcare and
also launched new beverages other than milk products. Founded on the basis of the great
democratic principle ‘of the People, by the People and for the People’, the dominant concern of
MILMA is to render true service to society while ensuring that it does not incur losses.


 To channelise marketable surplus milk from the rural areas to urban deficit areas to maximize the
returns to the producer and provide quality milk and milk products to the consumers .
 To carryout activities for promoting Production, Procurement, Processing and Marketing of milk
and milk products for economic development of the farming community.
 To build up a viable dairy industry in the State.
 To provide constant market and stable price to the dairy farmers for their produce.

 Estimated milk production in Kerala is about 65 lakhs liters per day.
 Milma procures an average of 6.80 lakhs liters of milk per day.
 There are more than 32 brands of sachet milk in the state
 Approximately 4.50 lakhs liters of milk per day reaches Kerala from neighboring states.
 Milma is a market leader in the dairy sector and the average sales per day is 8.55 lakhs


The National Dairy Development Board is an institution of national importance set up by an Act
of Parliament of India.[1] The main office is in Anand, Gujarat with regional offices throughout the country.
NDDB's subsidiaries include IDMC Limited-Anand, Mother Dairy, Delhi, NDDB Dairy Services, Delhi and
Indian Immunologicals Ltd, Hyderabad.[2] The Board was created to finance, support and support producer-
owned and controlled organisations. It's programmes and activities seek to strengthen farmer cooperatives and
support national policies that are favourable to the growth of such institutions. Cooperative principles and
cooperative strategies are fundamental to the board's efforts.

Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in the state of
Gujarat. Formed in 1948, it is a cooperative brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd., which today is jointly owned by 3.6 million milk producers in

The phenomenal success of the Dairy Co-operative in Kerala could not have been
achieved , without the foundation of animal husbandry activities , led by the Animal Husbandry
Department, Dairy Development Department and Kerala Livestock Development Board , of the
Government of Kerala .


Toned milk considered as common milk , which contain 3.5% fat and 8.5% SNF(Solid Not Fat) .
Since the milk homogenized ,whitening capacity is or more and less amount of milk will be
sufficient for whitening tea/coffee . This milk mainly focuses on domestic and available in 500
ml in blue coloured packet .


Double toned milk contains high fat content of about 1.5%fat and9.0%SNF.Double toned
milk is also homogenized. Hence fat will notSettle at the top. Both the above milk can be stored
for two days under cool condition below 7 degree Celsius.


Contains 4.5% fat and 8.5% non-fat solids ideal for the preparations of payasam and
sweets . Fat will settle at the top of milk is kept still for some time since the milk is not
homogenized . Available in 500ml sachets .


Sambharam (butter milk) which is having 45% total solids is a favorite beverage in
Kerala . Milma Sambharam is the only product of its kind the market and it is very popular
throughout the state . It comes 200ml sachets . It is a seasonal product , mainly for summer
season . In future milma is planning to launch 500ml of sachets of sambharam .


Milma ghee contains 99.7 percent milk fat. Manufactured by melting fresh cream under
hygienic conditions. Milma ghee has the ideal golden yellow colour due to presence of natural
carotene in cow milk. (In contrast, ghee manufactured from buffalo milk is white in color). No
artificial colours or flavours are added in Milma ghee. Natural aroma and flavour of ghee is
retained since ghee is produced directly from fresh cream instead of going in for melting stored


Contains 10 percent non-fat solids. Ideal for making curries. Prepared under hygienic
conditions by fully mechanized processes. Cannot be used as starter-curd for converting milk
into curd. Available in 500 ml sachets.


A natural milk toffee manufactured by the heating and removal of a major portion of the
water content of fresh milk and by the addition of sugar. No colour or preservatives are added.
Natural carotene in the milk gives the product its characteristic colour. Ideal for children and as
an after-food sweet. Available in packs of 15 gm, 150 gm and 750 gm.

Paneer also called chhena as a milk powder made by coagulating boiled hot whole milk with
citric or lactic acid and subsequent drainage of whey .


This is a coagulated product obtained from the pasteurized toned milk by lactic acid
fermentation through the action of lactic cultures. The product contains 3.2% fat and 9.0% SNF .

Made from pure milk cream (unlike many private brands who vend “Frozen desserts “
made from cheap vegetable fats in the guise of Ice – cream), this is a real ice cream made
available in various flavours and packs. Produced hygienically in ISO 9001-2008 and HACCP
certified production facility .


It is an ice- lolly made available in two varieties – Milk Sip-up and Water Sip-up. Both
are packed in elongated and tubular pouches, which can be broken by biting into it. The contents
are then consumed by sipping at the broken end. Made by using pure milk, pasteurized water,
and sugar and permitted flavours. A favourite of school children especially during hot weather


In addition to milk drinks , MILMA also has a mango drink in the market . Refresh MILMA
mango drink is a favorite in the drink sector , 200ml terra pack and 500ml pet bottles are
available .
A review of literature is designed to identify related research, to set the current research work
with in a conceptual and theoretical context. Review of literature is the important step in a
research work , which has to be done adequately n order to reveal the significance of the study.
In this chapter a detailed review of literature has been done by reviewing the previous studies
relating to the core area of the research. These studies have been taken from published journals,
articles and PH.D. thesis.