Final Report

Summer Training Report on
Identifying factors behind low sale of milk

A study of Mother Dairy
As partial fulfilment of requirements for the award of

the Post Graduate Diploma in Business Management
(FMG-XVII) 2008-10
Submitted to:
Prof. Sanghamitra Buddhapriya
Submitted By:
Sumeet Sharma
FMG XVII
Roll No.081117
FORE SCHOOL OF MANAGEMENT

B-18, QUTAB INSTITUTIONAL AREA
NEW DELHI
Certificate
This is to certify that Mr. Sumeet Sharma, Roll No. 081117 has completed his summer
internship at Milk Division at Mother Dairy Fruits and Vegetables Pvt. Ltd., Noida and has
submitted this project report entitled Identifying factors behind low sale of milk;A study of
Mother Dairy towards partial fulfilment of the requirements for the award of the Post
Graduate in Management (FMG-XVII) 2008-2010.
This Report is the result of his own work and to the best of my knowledge no part of it has
earlier comprised any other report, monograph, dissertation or book. This project was carried
out under my overall supervision.
Date:
Place:
-----------------------------------
Internal Faculty Guide
Summer Internship Project/ Sumeet Sharma/FSM Page ii

TABLE OF CONTENTS
S.no Particulars Page No.
I Acknowledgment iv
II Exécutive Summary v
1. Introduction 1
1.1) Relevance 3
1.2) Description of Problem 3
1.3) Objective of the Project 5
2. Literature Review 6
2.1) Indian Dairy Industry: An Overview 7
2.2) Operation Flood 9
2.3) National Dairy Development Board (NDDB) 10
2.4) About the Company: Mother Dairy 11
2.5) Delhi NCR Market 13
3. Methodology 14
3.1) Locale of the Study 17
3.2) Sample Collection 17
3.2.1) Size of Sample 17
3.2.2) Method of Sampling 17
3.3) Data Collection 17
3.4) Data Analysis 17

4. Analysis of Results 18
4.1) Quality 23
4.2) Smell 25
4.3) Taste 27
4.4) Commission 29
4.5) Timing 31
4.6) Accessories (Paint/Board) 33
4.7) Distributor 35
4.8) Schemes 37
5. Conclusions 41
5.1) Concluding observations 42
5.2) Limitations of Study 42
5.3) Further Scope of Study 43
6. Recommendations 44
References 47
Appendix- Questionaire 48

ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the project would be
incomplete without the mention of the people who made it possible.
I take this opportunity to express my sincere gratitude to Sh. Sandeep Ghosh (Head Sales)
for his valuable guidance, support and encouraging words during the entire project duration.
I feel privileged in expressing profound sense of gratitude and indebtness to my company

guide Mr. Achint Malhotra (ASI,NT-4) for his invaluable support, guidance and
suggestions which helped me to do the project.
I would like to thank Mr. Subhash Sharma and Mr. F.C.Gupta who in spite of busy
schedule has co- operated with me continuously and indeed, his valuable contribution and
guidance have been certainly indispensable for my project work.
I would like to express my profound sense of gratitude to Dr. Sanghamitra Buddhapriya,

my faculty guide, who has always given me motivational boost to go and perform. I would
further like to thank him for his persistence to listen to my problems and to give apt solutions.
(Sumeet Sharma)

EXECUTIVE SUMMARY
This project report mainly focuses on identifying various factors which affects the sale of
Mother Dairy milk in the market. I was assigned a region NT-4 in which I have to scan the
whole market doing a market research finding various factors due to which the sale of Mother
Dairy is continuously descending. The region NT-4 includes the area of Pitampura, Rani
Bagh, Ashok Vihar, Shastri Nagar, Kishan Ganj, Lawrence road etc.
For this I have formulated a questionaire with the help of which I can clearly evaluate those
factors qualitatively and can come to a conclusion. In this questionaire the retailers were
asked to rate the important factors on the scale of 1-5.
The major finding of this research is that the main reason due to which the sales are
continuously decreasing is due to the low Quality and bad taste and smell present in the
milk as suggested to retailers by customers.
Also some recommendations are suggested to the organisation which I think would be
beneficial to the organisation to get back its lost customers. It can be achieved by coming out
with some schemes for the customers which could benefit the customers in monetary form.
The organisation can also focus on maintaining the quality of the milk till it reaches the end
customers. For this purpose they can have a organised structure for the distributors as they
holds the milk for the most important phase of the milk.

CHAPTER 1
INTRODUCTION
Summer Internship Project/ Sumeet Sharma/FSM Page 1

Milk, one of the most nutritious beverages that you and your family can enjoy, makes a major
nutrient contribution to children's diets. In addition to calcium, it provides eight other
essential nutrients. Over 70 percent of the calcium in our food supply comes from milk and
dairy foods. Without milk on the menu, it's unlikely that kids will meet their daily calcium
needs.
Further minerals like phosphorous, sodium, potassium and magnesium are present in
appreciable quantities. Milk provides considerable quantity of thiamine, riboflavin, niacin,
pyridoxine, pantothenic acid, biotin, folic acid, vitamin B12 etc. apart from Vitamin C.
Milk is the most widely used commodity in most of the households. Although people use it
daily for drinking or making tea or coffee. Earlier milk used to be available in loose form
delivered by the milkman. The quality of milk was not guaranteed also adulteration was an
issue. Due to the fast expansion of cities and lack of time with the people, Poly pack milk is
fast gaining precedence also the quality of mik is assured by the company which is selling
milk. The quality is in accordance with the norms of FAO – Food and Agricultural
Organisation which takes care of the quality of food products sold all over the world.

1.1 RELEVANCE
Indian dairy sector is still mainly an unorganised sector as barely 10% of our total milk
production undergoes organised handling. Nowadays consumers have become more cautious
about the quality of the milk they are consuming as they are highly aware of the standards
they get in the milk taken from local milk distribution centres and the standard they get in the
poly packed milk.
The retail chain has emerged as a huge potential market which if captured can help a
company to emerge as a leader in the market. So it‘s quiet important that a company should
focus on this market and know each and every detail of this market. A company should keep
a close watch at the satisfaction level of its retailers and also they should be able to meet any
complaints as soon as possible.
What this research would help them to know the insights of the market through the side of
retail chain with the help of which they can focus on solving the problems faced by their
retailers.
1.2 DESCRIPTION OF PROBLEM
Traditionally, in India dairying has been a rural cottage industry. 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.
In earlier years, many households owned their own ‗family cow‘ or secured milk from a
neighbour who had one. With the increase in urban population fewer households could afford
to keep a cow for private use & moreover there were other problems also like the high cost of
milk production, problems of sanitation etc. restricted the practice; and gradually the family
cow in the city was eliminated and city cattle were all sent back to the rural areas.

Gradually farmers living near the cities took advantage of their proximity to the cities &
began supplying milk to the urban population; this gave rise to the fluid milk-sheds we see
today in every city of our country.
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 product factories have since been established. These organised
dairies have been successfully engaged in the routine commercial production of pasteurized
bottled 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
1956 with the establishment of AMUL Dairy, Anand.
Mother Dairy is the first company to set up booths in the country through which they sell
bulk vended milk (loose milk) and milk in poly packs. Earlier only these booths are the
means through which mother dairy is used to sell the milk in the urban areas, but with the
inception of the competitors and there use of the retail shops as a means to distribute milk, it
forces Mother Dairy to also make these local retail shops as a medium of their selling.
The problem that will be tackled in this research is to find the appropriate reasons for the low
sale in the retail chain of Mother dairy as compared to other competitors like Amul.
For this purpose what we have to do is to find issues related to Mother Dairy retailers so that
we can clearly understand the mindset of the market and the retailers so that we can improve
upon those points to increase the sale of Mother Dairy in market.

1.3 PROJECT OBJECTIVES:
1.1.1 Primary Objective:
The main objective of this project is to probe the reasons for low sale in the retail
chain of Mother Dairy in the milk sector in the area NT-4 and thereby suggesting
remedial recommendations thereof.
1.1.2 Secondary Objective:
 To identify the issues related to Mother Dairy retailers.
 To study Mother Dairy strategy vis-à-vis competitors.
 To study the distribution channel in the retail chain of Mother Dairy
 To cover up the region NT-4 and get the retailers feedback.
 To add up new retailers in this area.
 To find out short term problem in every sub-region that can be sorted out.
 Suggesting viable recommendations to be implemented in the area.
 To keep track of the daily sales of the distributors in the region NT-4.

Chapter 2
LITERATURE /CONCEPTUAL SUPPORT

In the earlier chapter, introduction to the project was given in which objectives were defined,
company’s overview was given, the problem that the company is facing and the relevance of
this project was given.
This chapter is about the literature and the conceptual support that will be needed at the
advance stage of this project. In this various important terms and important concepts as per
the requirement of the project have been defined, that will be helpful in properly
understanding this project. For this various books, websites and blogs were used.
2.1 Indian Dairy Industry: An Overview
A dairy is a facility for the extraction and processing of animal milk—mostly from goats or
cows, but also from buffalo, sheep, horses or camels —for human consumption. Typically it
is a farm (dairy farm) or section of a farm that is concerned with the production of milk,
butter and cheese.
As an attributive, the word dairy refers to milk-based products, derivatives and processes, and
the animals and workers involved in their production: for example dairy cattle, dairy goat. A
dairy farm produces milk and a dairy factory processes it into a variety dairy products. These
establishments constitute the dairy industry, a component of the food industry.
The dairy industry is a part of the livestock sector of the country.

Some highlights of the livestock sector are:
 The livestock sector contributes over 4 % to the total GDP and about a quarter of the
GDP from agriculture and allied activities. This sector is a main source of family
income in the arid and semi-arid regions.
 The Eleventh Five Year Plan envisages an overall growth of 6-7 % per annum for the
sector. In 2006-2007, this sector contributed 101 million tonnes of milk, 51 billion
eggs, 45 million kg of wool and 2.3 million tonnes of meat.
Key challenges before Indian Dairy Industry are as follows:
 Ensuring Quality
 Procurement and efficiencies in supply chain
 Product differentiation and value addition
Milk Production
 India's milk production increased from 88.1 million tonnes in 2003-04 to 100 million
tonnes in 2007-2008.
 India is the largest producer of Milk in the World (replacing USA)
 Per capita availability of milk presently is 231 grams per day, up from 112 grams per
day in 1968-69.
 India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth
in population; the net increase in availability is around 2 per cent per year.

2.2 Operation Flood
Launched in 1970, Operation Flood has helped dairy farmers direct their own development,
placing control of the resources they create in their own hands. A National Milk Grid links
milk producers throughout India with consumers in over 700 towns and cities, reducing
seasonal and regional price variations while ensuring that the producer gets a major share of
the consumers' rupee.
The bedrock of Operation Flood has been village milk producers‘ cooperatives, which
procure milk and provide inputs and services, making modern management and technology
available to members. Operation Flood's objectives included:
 Increase milk production ("a flood of milk")

 Augment rural incomes
 Fair prices for consumers

2.3 National Dairy Development Board( NDDB)
The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmes and activities seek to
strengthen farmer cooperatives and support national policies that are favourable to the growth
of such institutions. Fundamental to NDDB's efforts are cooperative principles and the
Anand Pattern of Cooperation.
A commitment to help rural producers help themselves has guided the Dairy Board's work for
more than 30 years. This commitment has been rewarded with achievements made by
cooperative dairies in milk production, employment generation, per capita availability of
milk, foreign exchange savings and increased farmer incomes.
The National Dairy Development Board (NDDB) has replaced exploitation with
empowerment, convention with modernity, stagnation with growth and transformed dairying
into an instrument for the development of Indian farmers.
The National Dairy Development Board was created in 1964 in response to the Prime
Minister Lal Bahadur Shastri's call to "transplant the spirit of Anand in many other places".
He wanted the Anand model of dairy development - with institutions owned by rural
producers, which were sensitive to their needs and responsive to their demands - replicated in
other parts of the country.
The Board's creation was routed in the conviction that our nation's socio-economic progress
lies largely on the development of rural India.
Thus NDDB's mandate is to promote, finance and support producer-owned and controlled
organizations. NDDB's programmes and activities seek to strengthen farmer cooperatives and
support national policies that are favourable to the growth of such institutions.

2.4 About the company –Mother Dairy
‘Mother Dairy’ is the largest liquid milk brand in Asia. It started its operations in 1974 under
the Operation Flood programme of the National Dairy Development Board. Operation Flood
is one of the largest dairy development projects in the world. Mother Diary, Delhi is IS/ISO-
9002 & IS-15000 (HACCP) certified organisation.
‘Mother Dairy’ is the single largest brand of milk in Delhi, India as well as in Asia,
marketing about 1.9 million liters of milk per day. Mother Dairy commands 40% market
share in the organized sector in and around Delhi, primarily because of consistent quality and
service reliability.
‘Mother Dairy’, which markets over 22 lakh LPD of milk procured from various State
federations in Delhi, has now entered the Mumbai market.
In addition to toned milk through Bulk vending, Mother Dairy also markets Full cream milk,
standardised milk, toned milk, double toned milk and Skimmed milk (lite) in polypacks.
Mother Dairy, Delhi is an IS/ISO-9001:2000 and Hazard Analysis Critical Control Points
(HACCP) and IS-14001:1996 Environment Management System (EMS) Certified
organisation.

Mother Dairy was the first industry in country to implement ISO-14031(Environment
Performance Evaluation) project.
This provides assurance to the consumer in respect of Quality and Safety of products
manufactured and marketed by Mother Dairy.
The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first
phase of Operation Flood in 1974. Considering the success of Dairy industry NDDB
established Fruit & Vegetable Project in Delhi in 1988 with "SAFAL" as its umbrella brand.
With a view to separating the commercial activities from developmental activities, the NDDB
merged Mother Dairy and the Fruit & Vegetable project into a wholly owned company
named Mother Dairy Fruit &Vegetable Ltd (MDFVL) in April 2000. This becomes the
holding company of Mother Dairy India Ltd (MDIL)- a marketing company and Mother
Dairy Foods Processing Ltd (MDFPL)- a processing company.
The company is a highly trusted household name for its wide range of milk products like
Milk, Flavoured Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitner, Ghee etc.
Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives.
The objective of Mother Dairy is to:
(a) ensure that milk producers and farmers regularly and continually receive market prices by
offering quality milk, milk products and other food products to consumers at competitive
prices and;
(b) Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.

At Mother Dairy, processing of milk is controlled by process automation whereby state-of-
the-art microprocessor technology is adopted to integrate and completely automate all
functions of the milk processing areas to ensure high product quality/ reliability and safety.
In addition to its market leadership in India, Mother Dairy is also active in the global arena,
exporting its range of dairy products to various international markets.
2.5 Delhi NCR market:
Delhi National Capital Region (NCR), among the biggest milk markets in the country, is
dominated by Mother Dairy currently.
Delhi‘s estimated 40 lakh litres per day (LLPD) organised liquid milk is dominated by
Mother Dairy (23 LLPD) and Gujarat Cooperative Milk Marketing Federation (GCMMF or
‗Amul‘, which sells 10 LLPD). Besides these two, there is the public sector Delhi Milk
Scheme (three LLPD) and private brands such as ‗Paras‘ and ‗Gopaljee‘ (1.5-2 LLPD each).
Amul and NDDB's non-compete agreement has prevented the former from launching its
liquid milk in the Delhi market till 2003.With the non-compete agreement having run out,
Amul launched its fresh milk in Delhi in two variants — full cream and toned — priced at
par with that of Mother Dairy .Amul, to its delight, has seen the demand for its milk going up
by leaps and bounds in the city and is now planning to enter into alliances with dairies
located around Delhi such as Indian Potash and Modern Dairy to cater to the demand.

Chapter 3
METHODOLOGY

The earlier chapter dealt with the literature and the conceptual facts that are needed to be
understood to have clarity on this project’s topic. In that chapter various terms and concepts
were explained, this chapter deals with the methodology that was used while carrying out the
project. This chapter would give the detailed process how appropriate methods were chosen
and designed, what were the target sample and the method that was used for it, various
parameters and also the data that was collected.
At the beginning of the training process, a brief session was conducted with Mr.Sandeep
Ghosh (Head Sales) at Noida Office, where he provided us with valuable insights of how the
company works and what are various distribution channels followed by the company. He also
gives us knowledge about the various plants where milk is processed.
In order to get the first hand experience, a brief session was again conducted with Mr.
Subhash Sharma (Head Sales- Delhi) and Mr. F.C.Gupta (Head Sales-North Delhi). From
here the main methodology starts as after that various hints, and clues were provided to
prepare the questionnaire for the Independent retail stores, and a format was provided to scan
the market.

Thus during the entire project following steps were undertaken:
 After getting feel of the whole working of the organisation, a questionaire is drafted
depending on the type of research we were asked to do.
 The market is surveyed with the help of the distributor as well as independently.
 I am asked to scan the whole area i.e. NT-4 and cover all retail shops irrespective of
that they are selling Mother Dairy or not and then to convince the non-selling shops to
start selling the Mother Dairy Milk.
 So for having a clear idea, I first visited the retail shops that are covered by the five
distributors present in the area and then after that I visited the non-selling shops.
 A total of around 600 retailers are surveyed during the whole research with the help of
a questionaire.
 The various locations surveyed under different distributors are:
 Mukesh Sharma: Shakurpur Basti, Kohat Enclave, Lok Vihar, Pitampura,

Rani Bagh, Saraswati Vihar, Sainik Vihar, Mahindra Park, Multani Mohalla,
Srinagar, Raja Park.
 Smt.Sunita Sharma: Tri Nagar, Lawrence Road.
 Choudhary & Sons Co.: Ashok Vihar, Sindhori Kalan, Sawan Park.
 Satyveer Singh: Shastri Nagar, Subhadra Colony, Indra Lok
 Radha Krishna ENT: Kishan Ganj, Andha Mugal, Padam Nagar.
 Geeta Enterprises: J.J.Colony

3.1 Locale of the study
The study was done in the region NT-4 under the supervision of Noida Office. The region
NT-4 covers areas like Pitampura, Rani Bagh, Lawrence Road, Tri Nagar, Kishan Ganj,
J.J.Colony, Shastri Nagar, and Ashok Vihar.
3.2 Sample collection
All the retailers under region NT-4 were interviewed.
3.2.1 Size of the sample
Around 600 retailers were interviewed.
3.2.2 Method of sampling
Convenient sampling is used to do sampling as all the retailers in the region NT-4 are
interviewed.
3.3 Data collection
Data was collected through two sources:
Primary Source: Primary data was collected directly from the retailers through a questionaire.
Secondary Source: The secondary source was the daily sales record of all the distributors.
3.4 Data Analysis
Data analysis was done mainly from the data collected through the retailers. The data
collected from secondary sources is also used to analyse on one particular parameter.
Qualitative analysis was done on the data collected from the primary as well as secondary
sources.
The next chapter deals with the data analysis and interpretations that was done for the
project after collecting all the data.

Chapter 4
Analysis of results

The analysis is done on the data collected through a questionaire filled by around 600
retailers.
The data collected focussed on various parameters on which the whole milk industry depends
and furthers the analysis is done on those parameters.
First let us look about the type of retailers surveyed
78
retailers selling MD
retailers not selling MD
522
What we can see is that most of the retailers surveyed are currently selling milk of Mother
Dairy and only 78 retailers not selling mother Dairy milk are surveyed out of which one
retailer is convinced to sell the Mother Dairy milk.

Next thing which was reviewed was that how many retailers out of 600 are satisfied with the
milk of Mother Dairy. The following result came out:
235
satisfied
365 not satisfied
The results were really shocking as not even 50% of the retailers are satisfied with the milk of
Mother Dairy. The gap between number of retailers satisfied and number of retailers not-
satisfied is too high.
So further research was sidelined to find why so many retailers under one region are not
satisfied with the milk of Mother Dairy.
So with the help of distributor and Mother Dairy officials some parameters emerges which
we all feel is important in the milk industry.

On the whole 10 parameters were finalised on which the research was done. These
parameters are:
 Quality
 Taste
 Scheme
 Smell
 Commission
 Leakages
 Dirty crates
 Paint/Board
 Distributor
 Timing
Initially MD, Amul and other Brands are rated on the scale of 1-5 to get an overall view of
the market situation and then different parameters are evaluated on the same scale of 1-5.

The result of overall view is:
4.5
3.5
3
MD
2.5
AMUL
2
Others
1.5
0.5
0
overall
What we can see is that Amul leads the pack which is in accordance with the earlier result of
satisfaction level of retailers as not many of them were satisfied. It is because Amul has tried
to made inroads into the Delhi/NCR market with a high quality milk which no other brand in
the market at this point of time is providing to its customers.
Now comes the main work, finding parameters which are important and affects the behaviour
and perception of retailers about Mother Dairy.
Out of those 10 parameters finalised 8 of them were really found important once the survey
was over. These parameters are analysed graphically and statistically.

4.1 QUALITY
MD
3
Amul
2 Others
0
Quality
What we can clearly see is that Amul clearly leads the pack in the terms of quality. To
confirm this data we have applied the statistical tool. For applying statistical tool we just took
into consideration Amul and MD as they both are the leader and successor. This is mainly
because MD is 7 state milk whereas Amul is a one state milk.
MINITAB OUTPUT:
Objective: To know whether there is any difference in the opinion of retailers on the view of
quality of MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Quality
Ha: There is a significant difference between the response of retailers w.r.t. Quality

Result:
Paired T for MD - AMUL
N Mean StDev SE Mean

MD 100 2.78000 1.15976 0.11598
AMUL 100 4.94000 0.23868 0.02387
Difference 100 -2.16000 1.19528 0.11953
95% CI for mean difference: (-2.39717, -1.92283)

T-Test of mean difference = 0 (vs. not = 0): T-Value = -18.07 P-Value = 0.000
Interpretation:
The P-Value < 0.05 means we have to reject the null hypothesis at 95% confidence level i.e.
there is a significant difference between the response of retailers w.r.t. Quality.

4.2 SMELL
4.5
3.5
3
MD
2.5
Amul
2
Others
1.5
0.5
0
Smell
What we can clearly see is that smell is most prominent in MD as compared to other
competitors. To confirm this data we have applied the statistical tool. For applying statistical
tool we just took into consideration Amul and MD as they both are the leader and successor.
MINITAB OUTPUT:
Smell in MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Smell
Ha: There is a significant difference between the response of retailers w.r.t. Smell

Result:

MD 600 4.49000 0.67131 0.02741
AMUL 600 1.17000 0.42591 0.01739
Difference 600 3.32000 0.89383 0.03649
95% CI for mean difference: (3.24834, 3.39166)

T-Test of mean difference = 0 (vs not = 0): T-Value = 90.98 P-Value = 0.000
Interpretation:
there is a significant difference between the response of retailers w.r.t. Smell.

4.3 TASTE
MD
3
Amul
2 Others
0
Taste
What we can clearly see is that in case of Taste, Amul leads the pack followed by MD and
the competitors. To confirm this data we have applied the statistical tool. For applying
statistical tool we just took into consideration Amul and MD as they both are the leader and
successor.
MINITAB OUTPUT:
Smell in MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Smell
Ha: There is a significant difference between the response of retailers w.r.t. Smell

Result:

MD 600 2.28000 0.60183 0.02457
AMUL 600 5.00000 0.00000 0.00000
Difference 600 -2.72000 0.60183 0.02457

T-Test of mean difference = 0 (vs not = 0): T-Value = -110.71 P-Value = 0.000
Interpretation:
there is a significant difference between the response of retailers w.r.t. Taste.

4.4 COMMISSION
4.5
3.5
2.5 MD
2 Amul
1.5 Others
0.5
0
COMMISSION
What we can clearly see is that in case of Commission, other brands lead the pack followed
by Amul and MD. To confirm this data we have applied the statistical tool. For applying
statistical tool we just took into consideration Amul and MD as they both are the leader and
successor. These high values are because MD and Amul both have the same commission of
80 paise/litre, whereas other brands have a higher commission as compared to the market
leaders.
MINITAB OUTPUT:
Commission in MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Commission
Ha: There is a significant difference between the response of retailers w.r.t. Commission

Result:

MD 600 4.01000 1.04485 0.04266
AMUL 600 4.08000 0.65903 0.02690
Difference 600 -0.070000 1.322125 0.053976
95% CI for mean difference: (-0.176004, 0.036004)

Interpretation:
The P-Value > 0.05 means we have to accept the null hypothesis at 95% confidence level i.e.
there is no significant difference between the responses of retailers‘ w.r.t. Commission.

4.5 TIMING
4.5
3.5
2.5 MD
2 Amul
Others
1.5
0.5
0
Timing
What we can clearly see is that in case of Timing, MD leads the pack with a little difference
above other players but Amul really lacks in this field. To confirm this data we have applied
the statistical tool. For applying statistical tool we just took into consideration Amul and MD
as they both are the leader and successor. So this is the parameter in which MD should
improve more and try to squeeze out even single complaint coming in this parameter.
MINITAB OUTPUT:
Timing in MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Timing
Ha: There is a significant difference between the response of retailers w.r.t. Timing

Result:

MD 600 4.27000 0.71970 0.02938
AMUL 600 3.35000 0.96387 0.03935
Difference 600 0.920000 1.310138 0.053486

Interpretation:
there is a significant difference between the response of retailers w.r.t. Timing.

4.6 ACCESSORIES(PAINT/BOARD)
3.5
2.5
MD
2
Amul
1.5 Others
0.5
0
Accessories(Paint/Board)
What we can clearly see is that in case of Timing, MD leads the pack with a little difference
above Amul but other players really lacks in this field. To confirm this data we have applied
the statistical tool. For applying statistical tool we just took into consideration Amul and MD
as they both are the leader and successor.
MINITAB OUTPUT:
Accessories (Paint/Board) in MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Accessories
Ha: There is a significant difference between the response of retailers w.r.t. Accessories

Result:

MD 600 3.57000 0.60474 0.02469
AMUL 600 3.35000 0.96387 0.03935
Difference 600 0.220000 0.955574 0.039011

Interpretation:
there is no significant difference between the responses of retailers w.r.t. Accessories
(Paint/Board).

4.7 DISTRIBUTOR
4.8
4.6
4.4
MD
4.2
Amul
4 Others
3.8
3.6
PROBLEM WITH DISTRIBUTOR
What we can clearly see is that in case of Distributors, Amul leads the pack with a little
difference above MD but other players are good in this field. To confirm this data we have
applied the statistical tool. For applying statistical tool we just took into consideration Amul
and MD as they both are the leader and successor.
MINITAB OUTPUT:
Distributors of MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Distributors
Ha: There is a significant difference between the response of retailers w.r.t. Distributors

Result:

MD 600 4.52000 0.83111 0.03393
AMUL 600 4.65000 0.60672 0.02477
Difference 600 -0.130000 0.987281 0.040306

Interpretation:
there is no significant difference between the responses of retailers‘ w.r.t. Distributors.
This parameter provides an opportunity to MD to focus more on this as there are many
complaints of Amul distributors in the area and if tried many customers and retailers can be
broken from Amul.

4.8 SCHEME
MD
3
Amul
2 Others
0
Scheme
What we can clearly see is that in case of Scheme, MD clearly leads the pack, as its MD only
which comes up with the schemes as compared to its competitors. To confirm this data we
have applied the statistical tool. For applying statistical tool we just took into consideration
Amul and MD as they both are the leader and successor.
MINITAB OUTPUT:
Distributors of MD and Amul.
Hypothesis:
Ho: There is no significant difference between the response of retailers w.r.t. Schemes
Ha: There is a significant difference between the response of retailers w.r.t. Schemes

Result:

MD 600 4.94000 0.23768 0.00970
AMUL 600 1.46000 0.49881 0.02036
Difference 600 3.48000 0.51966 0.02122

Interpretation:
there is a significant difference between the response of retailers w.r.t. Schemes.
What we have seen is that its Mother Dairy which is more focussed on bringing out new
schemes as compared to its competitors, so what I had done is further researched on this front
and the analysis I came up with is as follows:

3500
3400
SCHEME
3300
3200
Series1
3100
3000 NO-SCHEME
2900
2800
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45
This graph is formed with the help of average sales of all the distributors in the region NT-4
on the daily basis. From the graph what we can clearly see is that during the scheme period as
highlighted the Demand is high as compared o the non-scheme period as highlighted.
During the period of May 01- May 10, 2009 a scheme was undergoing named ‖ Mother
Dairy Full Cream Kharedo- Aur Ban Jao Malamaal”. During this scheme the sales are
high as compared to the non-scheme days.
To further verify our finding we have again applied statistical tool to confirm our finding:

MINITAB OUTPUT:
Objective: To know whether there is any difference in the sales of the distributors during the
scheme and no-scheme days.
Hypothesis:
Ho: There is no significant difference between the sales of distributor during the scheme and
no-scheme period.
Ha: There is a significant difference between the sales of distributor during the scheme and
no-scheme period.
Result:
Paired T for Scheme - no-scheme

Scheme 10 3256.70 86.69 27.41
no-scheme 10 3101.90 36.68 11.60
Difference 10 154.800 90.180 28.517

Interpretation:
there is a significant difference between the sales of distributor during the scheme and no-
scheme period.

CHAPTER 5
CONCLUSIONS

In the last chapter all the analysis for the project was done with the help of various graphs, charts
and different statistical software. This chapter holds the conclusion of the whole project.
5.1 Concluding observations
This project was about the milk segment of Mother Dairy Pvt. Ltd. that due to intense
competition from its competitors is continuously losing its market in Delhi/NCR. So in this
project different parameters on which the sale of Mother Dairy depends are studied and
analysed. The final outcome of the project is that the parameters which hinder the sale of
Mother Dairy are low Quality, Smell and Taste. Milk market is a totally unpredictable
market and the organisation should be over-cautious of any complaints that come into milk as
it includes the sentiments of a mother for her kid and she would not prefer to give anything to
her kid for which she is not 100% satisfied. So the company should take every step possible
to contain these problems which in some way or the other affects the sale of Mother Dairy
and its retailers.
5.2 Limitations of the study
Since the study is done in only one region of Delhi, these results cannot be generalised on all
Delhi basis. Shopkeepers also tend to hide some facts and figures due to some reasons which
can hinder the results we get from this survey. Still a lot can be done to make the whole
system efficient.

5.3 Further scope of study
The findings we got from this project will be of great help for the company as these findings
will help the organisation for improving their system as well as milk. This kind of research
should be done on all Delhi basis so that the organisation could get a clear picture of overall
Delhi and then they can effectively implement some measures to rectify all the problems that
comes up on all Delhi basis.
The next chapter is pretty important for this project as it includes the recommendations that if
implemented can solve the company’s problem.

CHAPTER 6
RECOMMENDATIONS

In the last chapter conclusion was drawn and the business decision about the project was explained.
In this chapter recommendations are given which can be helpful for the company if implemented.
Following are the recommendations to be considered:
 The organisation should have a specific distribution model which should be followed
necessarily by each distributor as at this level not everything is organised and each
distributor follows a different model to distribute milk due to which in some areas
potential sale doesn‘t happens.
 To keep track of the supply timings and to sustain the quality of milk till it reaches the
retailers, company should have a policy for each distributor to keep vehicles which
can maintain the temperature of the milk as maximum distributors are currently doing
the distribution with the help of auto-rickshaws which exposes milk to the hot air and
sunlight.
 As there are many regions in the area which consists of low income group, so the
organisation should have a policy to provide them ―Dry ice Boxes‖ which can act as a
refrigerator. These should be used in these areas as they are cheap and convenient to
use.
 There should be an arrangement made available for the distributors so that they can
cater to sudden demand for the milk so that not even a single chance of selling is
missed.
 The organisation is way ahead in coming out with schemes for the distributors and
retailers but the organisation should also start coming with schemes for the customers
as it would be a real boost to the sales of Mother Dairy milk and also it will help MD
get back its lost customers.

 The organisation should have a consistent replacement policy for all kind of
customers. The organisation should understand that the sale of MD milk is more in
less developed areas so they should take extra care of these kinds of areas and should
act as soon as possible to cater to their problems.
 The organisation should schedule these kinds of surveys on a more regular basis as at
this point of time Amul is really capturing the market and the organisation should take
viable steps to meet the expectations of its customers.
 The organisation should change their design of the packets of milk as the
organisation should clearly state the bifurcations of various ingredients of milk as
Amul presents a strong point to its customers writing there ―No Powder Milk‖
whereas MD milk packets has no such statements written on its packets.

References
 www.motherdairy.com
 www.nddb.org
 www.indiandairy.com
 www.wikipedia.com
 www.indianmilkproducts.com

Annexure
For collecting the data a structured questionnaire for the retailers is prepared to get detailed
and structured information regarding the project. The questionaire includes both the close-
ended as well as open ended questions. Given below is the questionnaire:
Questionaire for Retail Outlets
1. Booth No:- _____ Distributor Name:- ___________________________
2. Location/Address:- __________________________________________________
3. Avg. Daily Sales in litres for:
MD_____ AMUL_____ OTHERS_____
4. How would you rate your present sales?
a) Satisfactory: ______ b) Unsatisfactory: ______

5. If not satisfactory then please choose the reasons from below:
a) Competition from other brands
b) Competition from local dairy owners
c) Others ____________________________________________________________
6. Whom do you consider your major competitor?
___________________________________________________________________
7. Specify one strength and one weakness of MD milk.....
Strength______________________________________________________________
Weakness______________________________________________________________
8. Specify the commission and other incentives company is providing.....
Commission________
Other Incentives______________________________
9. Specify one strength and one weakness of your competitor.....
Strength________________________________________________________
Weakness______________________________________________________

10.Is there any replacement policy being followed in the company.....
For leakage_________
For Curdling________
11.Which company‘s product u feel has maximum sales, and u feel happy to have their
product on your counter?
Rate on scale of 1 to 5:
MD_________
AMUL________
OTHERS________
12.Rate the milk on the scale of 1-5 on the following factors:
 Quality
MD_____ AMUL____ OTHERS______
 Taste
 Scheme
 Leakages
 Commission

 Distributor
 Timing
 Dirty Crates
 Paint/Board
 Smell
13.Any suggestions you want to give to the company.....
___________________________________________________________


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Summer Training Report on

Identifying factors behind low sale of milk

As partial fulfilment of requirements for the award of

FORE SCHOOL OF MANAGEMENT

Internal Faculty Guide

Summer Internship Project/ Sumeet Sharma/FSM Page ii

1.2) Description of Problem 3

1.3) Objective of the Project 5

2.1) Indian Dairy Industry: An Overview 7

2.2) Operation Flood 9

2.3) National Dairy Development Board (NDDB) 10

2.4) About the Company: Mother Dairy 11

2.5) Delhi NCR Market 13

3.1) Locale of the Study 17

3.2) Sample Collection 17

3.2.1) Size of Sample 17

3.2.2) Method of Sampling 17

3.3) Data Collection 17

3.4) Data Analysis 17

Summer Internship Project/ Sumeet Sharma/FSM Page ii

4.6) Accessories (Paint/Board) 33

5.1) Concluding observations 42

5.2) Limitations of Study 42

5.3) Further Scope of Study 43

Summer Internship Project/ Sumeet Sharma/FSM Page ii

I feel privileged in expressing profound sense of gratitude and indebtness to my company

I would like to express my profound sense of gratitude to Dr. Sanghamitra Buddhapriya,

Summer Internship Project/ Sumeet Sharma/FSM Page ii

Summer Internship Project/ Sumeet Sharma/FSM Page ii

Summer Internship Project/ Sumeet Sharma/FSM Page 1

Summer Internship Project/ Sumeet Sharma/FSM Page 2

1.2 DESCRIPTION OF PROBLEM

Summer Internship Project/ Sumeet Sharma/FSM Page 3

Summer Internship Project/ Sumeet Sharma/FSM Page 4

1.1.1 Primary Objective:

1.1.2 Secondary Objective:

 To identify the issues related to Mother Dairy retailers.

 To study Mother Dairy strategy vis-à-vis competitors.

 To study the distribution channel in the retail chain of Mother Dairy

 To cover up the region NT-4 and get the retailers feedback.

 To add up new retailers in this area.

 Suggesting viable recommendations to be implemented in the area.

Summer Internship Project/ Sumeet Sharma/FSM Page 5

LITERATURE /CONCEPTUAL SUPPORT

Summer Internship Project/ Sumeet Sharma/FSM Page 6

2.1 Indian Dairy Industry: An Overview

The dairy industry is a part of the livestock sector of the country.

Summer Internship Project/ Sumeet Sharma/FSM Page 7

Key challenges before Indian Dairy Industry are as follows:

 India is the largest producer of Milk in the World (replacing USA)

Summer Internship Project/ Sumeet Sharma/FSM Page 8

 Increase milk production ("a flood of milk")

Summer Internship Project/ Sumeet Sharma/FSM Page 9

Summer Internship Project/ Sumeet Sharma/FSM Page 10

Summer Internship Project/ Sumeet Sharma/FSM Page 11

The objective of Mother Dairy is to:

Summer Internship Project/ Sumeet Sharma/FSM Page 12

2.5 Delhi NCR market:

Summer Internship Project/ Sumeet Sharma/FSM Page 13

Summer Internship Project/ Sumeet Sharma/FSM Page 14

Summer Internship Project/ Sumeet Sharma/FSM Page 15

 Mukesh Sharma: Shakurpur Basti, Kohat Enclave, Lok Vihar, Pitampura,

Summer Internship Project/ Sumeet Sharma/FSM Page 16

3.2 Sample collection