Ots 24 > 24050 > Ackn

ACKNOWLEDGEMENTS

I take this opportunity to thank all the concerned staff of GGG Milk Union, Berhampur, for the help and cooperation they extended me during the course of my study conducted in the month of June and July 2004. First of all I would like to thank Mr S.N.Swain, General Manager and Mr P.G.Dora, ex-General Manager, GGG Milk Union for providing full-fledged support to conduct this study. I owe special words of thanks to the Reporting Officer Mr. B.K.Jena, Asst. Manager (P&I) for his continuous help during the progress of the work and providing valuable insights. I would also like to thank other staff of GGG Milk Union for taking interest in the topic and providing their help as and when required. Last but not the least I am especially thankful to my faculty guide Prof. Arvind Gupta for providing his invaluable constructive suggestions without whose support and keen interest this study could have not been materialized.

Kanhei Lal Dandasena (24050)

EXECUTIVE SUMMARY i

1. Students Name: 2. Organization: 3. Reporting Officer: 4. Faculty Guide: 5. Project Title: Market”

Kanhei Lal Dandasena Greater Ganjam Gajapati Milk Producers Cooperative Union Limited, Berhampur Mr. B. K. Jena (Assistant Manager, P&I) Prof. Arvind Gupta “Strategy for Marketing Milk and Milk Products in Rural

Objectives: The objective of the study was to understand the liquid milk and milk product market, assess the consumer preference and suggest strategies for growth in sale of milk and milk products in the existing rural market and develop strategy to enter new rural market. Scope: The study was carried out in rural areas of Ganjam district. Methodology: Consumer in-depth interviews, Household consumer survey, Institutional consumer in-depth interview, Retailer and Distributor study, Sales and Marketing department study. Sources of data: Primary sources were consumers of milk, retailers and distributors of GGGMU, doodhiya, tea stall and sweet shops. Secondary sources of information were sales records of GGGMU, Census report, 2001, Reports of the study done by ISNRMPO/ISPO for GGGMU. Major Findings: 1) Doodhiya are major competitor in rural market. 2) Low awareness about milk products among respondents. 3) Consumers prefer cow milk than buffalo. 4) Quality, taste and price are important attributes while purchasing milk. 5) Door delivery and credit facility are the major criteria for choosing source of milk 6) 38% of the respondents perceive that OMFED milk is a mixture of both cow and buffalo. 7) 69% of respondent perceives that OMFED milk is not fresh. Recommendations: As regards new rural market it is recommended that 1) Enter new rural market where distribution cost is less. 2) Appointment of small distributor in new rural market. 3) Regularity in supply of milk to the retailer point. 4) New product development- like double toned milk. 5) Promote home delivery through retailers. 6) Emphasis on awareness campaign for milk and milk product. 7) Use media like radio, local newspaper and also in local fair and festival to advertise OMFED milk and milk products. As regards existing rural markets the following recommendation have been made1) Promote CRCM as best milk for drinking. 2) Improve the quality of the milk 3) Launch of a lower pack size for rural consumer.4) Improvement in replacement policy. 5) Introduce schemes for retailers and present New Year gifts, calendar, carry bag etc. 6) promote retailer for door delivery.7) Maintain minimum agency distance. 8) Increase network of sales and distribution to improve availability and accessibility of milk and milk products. 9) Positioning of different milk products as pure, hygiene, fresh and fun drinking. 10) More emphasis on consumer orientation programme is required.

CONTENTS

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Sl.No 1 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.8.1 3.8.2 3.8.3 3.8.4 3.9 4 5 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 5.2.11 5.2.12 5.3 5.3.1 5.3.2 5.4

Particulars Introduction The Organisation Liquid milk and milk product market Product offering of GGGMU Organisation structure of marketing department Research Design Decision problem Research problem Objectives Scope Working definition Sources of data Data requirements Methodology Consumer survey Retailer survey Marketing and sales department Institutional survey Sampling plan Limitation Findings Consumer preference Quantity of milk used Purpose of usage Time of purchase Source of purchase Frequency of purchase Price Duration of usage Preference of consumer for milk Criteria of choice of source Importance of attributes while purchasing milk Awareness about OMFED milk Perception of OMFED milk Milk products Awareness of milk products Frequency of purchase Perception of OMFED products

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Page No. 1 1 5 7 8 9 9 9 10 10 10 12 12 13 13 14 14 14 14 15 15 19 19 19 20 21 21 22 22 23 24 24 25 26 28 28 29 29

5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 6 7 8 9 10 10.1 10.1.1 10.1.2 10.1.3 10.1.4 10.1.5 10.1.6 10.1.7 10.1.8 10.2. 10.2.1 10.2.2 10.2.3 10.2.4 10.2.5 10.2.6 10.2.7 10.2.8 10.0.9 10.2.10 10.2.11 10.2.12

Sweet curd Buttermilk Flavoured milk Paneer Ghee Retailer survey Institutional consumer survey Readership - survey Non-user of milk Recommendation Recommendation for new rural market Entered the rural market where distribution cost Appointment of small distributor Regularity in supply Awareness campaign Advertisement New product development Marketing of milk product Home delivery Recommendation for rural areas where GGGMU has entered Promote CRCM as best for drinking Launch of lower pack size Improvement in quality Agency distance Visit of marketing staff to retailer point Distribution system Replacement policy Packaging Concentrate on COP Segmentation Positioning of milk Positioning of milk of milk product Annexure 1 Annexure 2 Annexure 3

LIST OF TABLES Table 1

District Profiles

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29 30 30 31 32 33 33 34 35 36 36 36 36 36 37 37 38 38 38 39 39 39 39 39 40 40 40 40 40 41 42 42

Table Table Table Table Table Table

2 3 4 5 6 7

Distribution of societies district wise MCC and capacity Milk demand projection Sample size for consumer survey Perception of OMFED milk Consumer segmentation by usage of milk

3 3 6 15 27 41

LIST OF GRAPHS/FIGURES Graph 1 Graph 2 Graph 3

Milk procurement over last decade Average per day sale of milk over last decade Sale of Sweet curd for last five years v

4 6 16

Graph 4 Graph 5 Graph 6 Graph 7 Graph 8 Graph 9 Graph 10 Graph 11 Graph 12 Graph 13 Graph 14 Graph 15 Graph 16 Graph 17 Graph 18 Graph 19 Graph 20 Graph 21 Graph 22 Graph 23 Graph 24 Graph 25 Graph 26 Graph 27 Graph 28 Graph 29 Figure 1

Sale of Buttermilk for last five years Sale of Paneer for last five years Sale of Flavoured milk for last five years Sale of Ghee for last five years Quantity of milk used in household Purpose of usage Break up of member drinking milk Time of purchase Source of purchase Frequency of purchase Price per litre of milk Duration of usage Preference of milk Criteria for choice of source Importance of attributes while purchasing milk Awareness of OMFED milk Perception about type of OMFED milk Awareness of Milk product Consumer perception of Sweet curd Consumer perception of Buttermilk Consumer perception of Flavoured milk Consumer perception of paneer Consumer perception of Ghee Readership of Newspaper Recalling ability Reason for not using milk Reporting structure of marketing department

LIST OF ABBREVIATION CRCM COP DTM

Cream Rich Cow Milk Consumer Orientation Programme Double Toned Milk

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17 17 18 18 19 20 20 21 21 22 22 23 23 24 25 25 26 28 29 30 31 31 32 34 35 35 9

GMU GGGMUL IDDP ISNRMPO ISPO LPD MCC MPCS NCAER OMFED OWDP PFA P&I RMT SMP SNF

Ganjam Milk Union Greater Ganjam Gajapti Milk Producers Cooperative Union Limited Integrated Dairy Development Project Indo-Swiss Natural Resource Management Programme of Orissa Indo-Swiss Project of Orissa Litres Per Day Milk Chilling Centre Milk Producers Co-operative Society National Council of Applied Economic Ressearch Orissa State Cooperative Milk Producer Federation Limited Orissa Womens Dairy Project Prevention of Food adulteration Act Procurement and Inputs Road Milk Tanker Skimmed Milk Powder Solid Not Fat

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