STUDY ON MARKETING PACKED MILK

IN 200 ML. POUCH

The host organization

The Greater Ganjam Gajapati Co-operative
Milk Producers’ Union Ltd

Presented By
Ajaya Kumar Malla
 Indian market-A Pyramid

Few High income

Middle Income

Vast

Low Income
200 ml pouch
 Objectives
To determine the demand for 200 ml pouch
in the existing market of the union

To identify the potential segments for milk in

200 ml pouch

To examine any likely impacts of 200 ml

pouch on the sales of 500 ml pouch
 Scope of the study
• Product:
Packed liquid milk with special
reference to 200 ml pouch
• Area
Ganjam district
 Methodology
• Discussions with sales office staffs

• In-depth interviews of Retailers, Institutions

• Questionnaire for Household consumers

 Sources of Information
Primary Sources
• Household consumers
• Retailers of GGGMUL,Vishaka,Vijaya
• Institutional Consumers
• Staffs of GGGMUL
 Sources of Information
Secondary Sources
• Sales Report of GGGMUL,Vishaka,Vijaya
• Sales Office records
• Other records and reports Conducted by
ISPO
 Sampling plan
Places OMFED Non-OMFED Total

Berhampur 16 64 80
Bhanjanagar 6 24 30
Aska 6 24 30
Kabisurya nagar 6 24 30
Hinjilicut 6 24 30
Pattapur 4 16 20
Patrapur 4 16 20
Bhismagiri 4 16 20
Bhatakumarada 4 16 20
Gudiali 4 16 20
Total 60 240 300
 Criteria for sampling
• Accessibility, sales per day
• One Municipalty,Four NAC’s,Five small
towns.
Judgemental on the basis of potential Sale
 Method of Sampling
Purposive Sampling

OMFED Users:non-OMFED Users=1:4

Due care has taken to include only milk

consumers
 Limitations
• Only confined to Ganjam district
• Non response errors due to lack of interest
of respondents
• Non availability of selected agents
• Paucity of time
 Findings
• Consumers Survey

• Institutional Survey

• Retailers Survey
 MILK MARKET DYNAMICS IN GANJAM DISTRICT
Year Market Market sales in litres per day Market share in (%)
deman
d LDP

Total 1 2 3 4 5
(1) (2) (3) (4) (5)

2001- 71069 4 800 450 300 64698 71069 6. 1. 0. 0. 90.9

02 821 7 2 7 5

2002- 73,237 4 1 750 560 65872 73,23 6. 1. 1. 0. 90

03 855 200 7 6 6 0 8

2003- 75,475 8 1 1 700 63428 75,47 11 2. 1. 0. 84.4

04 457 800 000 5 4 3 9

2004- 77786 9 1 1 500 64912 77786 13 1. 1. 0. 83

05 674 500 200 9 5 6

1-OMFED 2-VIJAYA 3-VISHAKA 4-NAVJEEVAN 5-LOOSE MILK

Consumers Survey
Kind of milk purchased
Percentage of respondents consuming different kind
of milk

10%
28%

62%

Packed milk Unpacked milk Milk powder

 Choice of Source

Percentage of respondents purchasing m ilk from

different sources

13% 5%
22%

60%

Milk booth Retail shop Doodhiya Own source

 Usage of Milk
Percentage of respondents use m ilk for different
purposes

80
70
60
50
40
30
20
10
0
Tea only Drinking Curd sw eets Paneer
only

OMFED Loose
 Time of purchase

Time of Purchase

5%
15%
3%

77%

Morning Afternoon Evening When need arise

 Frequency of Purchase
Frequency of purchase

100

80

60

40

20

0
OMFED Non-OMFED

Once Twice
 Amount of milk consumed(litre)

Percentage of respondents consuming different am ount

of milk(Lt)

9% 2%

17%
45%

5%

22%

0.5 1 2 Less than 0.5 0.5-1.0 More than 2.0

Willingness to purchase packed Milk

Willingness to purchase packed milk after

lactom eter test
14%

86%

Yes No
Preferred Pack Size

Willingness to purchase different pack

size

44%

56%

500 ml 200 ml
 Preferred Shape

Prefered shape of the pouch

9%

24%

67%

Rectangular Square Any shape

Preferred Type of Milk

Type of milk prefered for 200 ml pouch

23%

77%

Cow milk Toned milk

Response to buy 200 ml at Rs 3.50

Percentage of respondents show ing various

respose to buy 200 m l pouch at Rs 3.50

15%
26%

32%
21%
6%

Definitely Buy Probably Buy Can't Say

Probably Not Buy Definitely Not buy
Purchase intentions at different
price level
Purchase intentions at different price Level

11%
26%
21%

6%
36%

Rs 3.50 Rs 3 Rs 3-2.50 Rs 2.50 Rs 2

 Cumulative response of consumers at
different price level
Response of consumers to price variation
Percentage of respondents

120% 100%
100% 89%
willing to buy

80% 62% 68%

60%
40% 26%
20%
0%
Rs 3.50 Rs 3 Rs 3- Rs 2.50 Rs 2
2.50
Price level of 200 ml pack Series1
 Demand of 200 ml pouch
• Total demand is 1400 litre
• Demand from the loose milk users is 1000
litre
• Demand from the Present OMFED milk
users is 400 lit
• Net demand is 1000 litre
Cost of producing one litre of packed milk

S Particulars Cost(Rs)
l.
N
1 Procurement price 9.0
o
2 Procurement cost 0.5

3 Transportation cost 1.0

4 Chilling cost 0.25

5 Administrative and 1.14

overhead cost
Total 11.89
Financial benefit to the union after launching 200 ml
pouch

S Parameters 500 ml 200 ml Net

l.N effect
o
1 Price/pack (Rs) 7 3.25

2 Price/litre (Rs) 14 16.25 +2.25

3 Sales (litre) -400 1400 1000

4 Revenue (Rs)/day -5600 22750 +17150

5 Cost to the union 4800 16800 +14000

(Rs)
6 Profit /day (Rs) -800 5750 4950

7 Profit /month (Rs) 24000 172500 148500

 Indices

10
20
30
40
50
60
70
80
90

0
100
Quality

Non-OMFED
Fat/cream
Price
Odour
Cleanliness

OMFED
purity
Pack size
Shelf life
Freshness
Packaging
Thickness

Milk attributes
Fitness curd
Fitness for tea
credit facility
Door delivery
Available at all
Consumer preferences

Promotions
Rapport w ith
Problems faced by OMFED users
38.3 66.7
25.0
21.7

85.0 51.7
33.3 21.7
51.7 16.7

Non-availability at times
Leakage in packets
No door delivery
Lack of credit facility
Behaviour of the retailer
Location
Non availability of proper pack size
Charging higher price than marked price
Lacking freshness
Lacking quality
 Sources of Awareness
• News paper and TV advertisement----9%
• Word of mouth----12%
• Pamphlets----5%
• POP----57%
• Painting on wall----17%
 Institutional Survey
• Hospitals

• Hostels

• Tea shops
 Retailers Survey
Nature of business

Door Delivery
Level of Satisfaction

Replacement policy

Credit
Commission and Incentives

Advertisements/Promotions

Appointment of retailers
 Segmentation
Income Category

Percentage of different incom e categories

consum ing different kind of m ilk

100
80
60
40
20
0
<3000 3000- 5000- 10000- >15000
5000 10000 15000

OMFED Non-OMFED
 Social category

Percentage of different categories consume

different kinds of milk

Student
Agriculture
Daiily Wge earner
Business man
Salaried Employee

0 20 40 60 80 100

OMFED Non-OMFED
Sl.No
Segment Characteristics Descriptions

1 Having no income so
College Generally drink
they look for low
students smaller quantity once
priced quality product
in a day
2 Their usage rate is less
Nuclear Usually purchase milk
and often looks for
families for tea.
savings. So always
searching low priced
product.
3 Their income is very low
Daily wage They purchase small
even <3000,so they look
earners/labour quantity of milk for for good quality milk at
class their kids. affordable price

4 Their need is very less, so

Farmers They purchase either
the milkman is reluctant to
for tea or for their kids supply such a small
quantity.
 Suggestions
1) Launching 200 ml Pouch
2) Supply of Lactometer

3) Product Differentiation
4) Packaging
6) Sensitizing the Consumers
7) Pricing Strategy
8) Strengthening the Market Intelligence
9) Brand Equity
10) Credit Facility
 Suggestions
11) Retailers in residential area
12) Door Delivery
13) Bulk Schemes
14) Promotions
 Road Shows
 Media mix
 Use of procurement and marketing vans for promotion
 Consumer Orientation Programme
 Debate
15) Entry into New Markets