2014

A Report on Nandini Milk

Marketing decision- Product &
Promotion

Paras Madan, Piyush Lakhmani, Sangita

Ghosh,
Souvik Ghosh, Vishak Sharma

NMIMS Bangalore
03 Dec-14

Table of Contents
1. EXECUTIVE SUMMARY..................................................................................................1
2. INTRODUCTION................................................................................................................2
3. OBJECTIVES (RATIONALE FOR THE PROJECT).........................................................2
4. PROJECT IMPLEMENTATION AND MANAGEMENT PLAN (Methodology)..............3
5. SCOPE AND LIMITATIONS..............................................................................................3
6. TIMELINE AND DELIVERABLES...................................................................................4
7. MARKET ANALYSIS.........................................................................................................4
7.1. SWOT analysis..................................................................................................................4
7.2. Porters Five Forces Analysis............................................................................................5
7.3. 5C Analysis.......................................................................................................................6
8. PROMOTION.......................................................................................................................7
9. REVIEW OF LITERATURE................................................................................................9
9.1. Factors influencing Consumer Perception........................................................................9
10. RESEARCH METHODOLOGY......................................................................................9
10.1.
Type of Research...........................................................................................................9
10.2.
Source of data................................................................................................................9
10.3.
Sample design..............................................................................................................10
10.4.
Sampling technique.....................................................................................................10
10.5.
Data Collection Instrument.........................................................................................10
11. SECONDARY DATA.....................................................................................................11
11.1.
Product Portfolio.........................................................................................................11
11.2.
Promotional activities by Nandini...............................................................................12
12. BCG MATRIX................................................................................................................12
13. PRIMARY SURVEY......................................................................................................14
14. DATA ANALYSIS AND INTERPRETATION...............................................................16
14.1.
Graph and Data Interpretation:....................................................................................16
15. SUGGESTIONS.............................................................................................................27
16. FINAL RECOMMENDATION......................................................................................28

1. EXECUTIVE SUMMARY
The project on Nandini Milk, a product of Karnataka Milk Federation is a study aimed at
understanding the marketing decisions and activities of the company pertaining to the
product and promotion. This study gives an understanding of the product varieties and their
respective market positions, as well as the advertisement and sales promotion strategy of
the company.
In a fiercely competitive market, it is essential to review the marketing decisions of a company
periodically and determine where the company stands. This study will give insights on that
note and help us learn the market dynamics and ways to respond effectively in case the
position of the company in the market is at stake.
In order to get a better understanding of the above mentioned objectives, the study was spread
over a period of two months and covered primary and secondary data extensively. The
methodology used was collection of secondary data, collection of primary data and
analysis of both the sources of data. A detailed study of these facts was followed by a set of
suggestions for improvement and the final recommendation.
The report also has a detailed market analysis in order to get a clear picture of the current
position of the company in the dairy industry. The market analysis is also helpful in
understanding the strengths, weakness, opportunities and threats faced by the company and
its products. On the other hand, the primary data collected, gives an idea about the
customer perception and preference and clears ground for improvement (if any) in the
product portfolio and promotion strategy of the company.
The suggestions presented in the report are limited to the scope of the study and pertains only t o
the product and promotion decisions. Both short term and long term suggestions have been
given. However, The final recommendation is only short term.

2. INTRODUCTION
From 2000 onwards, Indian dairy products, particularly milk powder, casein, whey products and
ghee started making their presence felt in global markets. Today, India is the world's largest
milk producer, accounting for more than 13% of the world's total milk production. Dairy industry
is one of the fastest growing industries in India (Source: National Dairy development Board).
Karnataka Milk Federation (KMF) is the largest Cooperative Dairy Federation in South India,
owned and managed by milk producers of Karnataka State. KMF has over 2.27 million milk
producers in over 12474 Dairy Cooperative Societies at village level, functioning under 13
District Cooperative Milk Unions in Karnataka State. Quality Excellence from Cow to
Consumer is the motto of the Federation to obtain better-quality milk and milk products from
our value chain (Procurement to Processing to Marketing). Thus milk and milk products,
under NANDINI brand name, are unmatched in quality made available to consumers at most
competitive prices.
In this project we will attempt to understand, analyse and learn the marketing strategies and
decisions taken by KMF to promote and sustain the brand Nandini. The main focus of the
project is to get a comprehensive insight of the marketing decisions in terms of the Product and
promotion of Nandini Milk. We will understand and analyse the product variety and
specifications and the promotional strategies followed by the company in order to be market
leaders.

3. OBJECTIVES (RATIONALE FOR THE PROJECT)

The objective of this project is to study and analyse as to how KMF is managing its marketing
efforts with respect to its products and promotion.
This project will also delve into the marketing decision issues (pertaining to Product and
Promotion) of the company, finding out the pain points, if any, in its existing marketing approach
and addressing those issues. We aim to systematically identify the problems, if any, faced by the
company with respect to their product and promotion and recommend the most viable changes
possible. This study will contribute to increased income-generating capacity of the Company by
increasing its sales and greater public awareness at the state and also national level

4. PROJECT IMPLEMENTATION AND MANAGEMENT PLAN

(Methodology)
3.1 Expected project results
At the end of the project we will have a better understanding of the product and promotion
related marketing decisions of the company. We would have also identified the critical issues and
problems in these particular areas and recommended best possible solutions for the same.

3.2 Project activities and work plan

Our project objectives include Studying the variety of milk produced by the company
Analyzing the marketing strategy (Product and Promotion) being followed by the
company
Identifying key issues and recommending the best solution
Work Plan Use online sources to collect data on sales of milk products through Nandini brand name
by KMF.
Visiting the Corporate office of Nandini and getting a feedback about the aforementioned
objectives
Interact with retailers to get a true market feedback of the products
If possible then visit Factory premises to get a first-hand feel of the production and
distribution of the product

5. SCOPE AND LIMITATIONS

Scope of the project:

The study and analysis will be limited to 2 Ps of the marketing mix i.e. Product and
Promotion.
In terms of Product, we will only focus on Nandini Milk by KMF.
In terms of Promotion, we intend to gather data of how KMF markets Nandini Milk in
order to become a leader in its segment and also the variety it offers.
Limitations of the project:
The data gathering will be limited to accessible and permissible source.
The data gathering will be limited to non-invigilated and non-incentivized surveys.
We shall initially focus on the different types of Nandini milk.
Humans have a tendency to behave artificially when they know that they are being
observed. Hence surveys will not be accurate. Also the target population researched may
consist majorly of children, young adults and senior citizens.

6. TIMELINE AND DELIVERABLES

The project will roughly take 2-2.5 months, with the following tasks taking the below mentioned
time.
Collection of secondary data using online sources
1 week
Corporate office visits
2-3 weeks
Retail outlets visits
1-2 weeks
Factory visits
2-3 weeks
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Analysis of the collected data

Finding viable changes that could be made to improve KMFs position

1 week
1 week

7. MARKET ANALYSIS
7.1. SWOT analysis
Strengths
Huge Demand There is a huge demand for Nandini milk in the market. Due to its
vitamin and high nutritional value and also because of the increase in population, the
demand is rising for milk and other milk products.
Availability of milk KMF can get the required quantity of milk from the surrounding
rural areas with less cost.
Brand Nandini All the products of Nandini, such as ghee, curd, etc., are well branded
in the market because of their quality.
Man Power KMF has well experienced and professionally trained employees with
around 10 years of experience. It helps the company to maintain its product quality with
the skilled workforce.
Location KMF is located within the main city limits in the crowded area of
Koramangala, thereby reducing the cost of transportation and increasing the visibility of
the company
.
Other Strengths being,
o Good quality control
o On time delivery
o Standardized products
o Variety of products
o Easy access to loans from National Dairy Development Board
o Adaptability to changing technology

Weakness
Inefficient Transportation Bad condition of roads may make the process of milk
procurement from few suppliers tedious at times.
No Cattle Farm KMF has no cattle farm of its own. Even though this is not required, it
will be an added advantage if KMF owned a farm.
Limited Media Coverage KMF has not many advertisements and it is yet to make a
strong mark in all types of media (There is a faint presence in he print and TV media as
of now)
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 Opportunities

Export There is a lot of demand for Nandini products in other states like Kerala and
Goa. So it can export to these states and also enter the markets of Tamil Nadu, Andhra
Pradesh and newly formed Telangana state as well.

Innovation - It can think of new product innovation such as Khoa, Ice Cream, Panner
and other sweets.

Employment KMF is providing employment opportunities to a lot of people.

Threats

Market Uncertainty There is constant price fluctuation in the market which may lead
to fluctuations in demand and also affecting the revenues for the company.
Competition Competitors are coming up with similar products which can hamper the
market share of Nandini.
Entry of Private Firms in the Dairy Industry and also the rise of Organic Milk
products are also giving completion to Nandini.

7.2. Porters Five Forces Analysis

Threat of New Entrants - Moderate to high
The capital requirement to set up a dairy farm and processing plant is not high.
Due to sufficient standardization of the product (milk) the threat of new entrants rises.
Conducive Government policies allow new players to enter this market.
The access to distribution channels is probably the only barrier for a new entrant in
this market, as KMF already has control of a major chunk of it.
Bargaining Power of the Customers - High
There are many players in the market who offer similar quality product at competitive
prices (eg- Amul, Danone etc) which lowers the switching cost of buyers.
Product is sufficiently standardized.
Bargaining Power of the Suppliers - Low
India being the largest producer of milk in the World, has a huge volume of suppliers
ready to supply at reasonable prices. Hence, the supplier power decreases to a great
extent.
This also reduces the switching cost of KMF to move to a new supplier.
The supplier is heavily dependent on the industry for its revenues, as in most cases,
this is their only source of income.
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 Threat of Substitutes - Low

Changing lifestyle and increasing awareness of health and nutrition has shifted the
demand to varieties of milk like low fat, diet milk etc. However, the market for milk
consumption largely remains same.
Substitutes like fruit juices, green tea etc. is being consumed but that has not affected
the demand for milk. On the contrary, it has increased.
Threat of existing rivalry - High
The huge demand and potential of this market has led many players, mostly public, to
enter this market.
The products are not highly differentiated and prices are competitive.
The relative size of the competitors is also big as most of these are co-operative firms.
The lack of an exit barrier further increases the existing rivalry.

7.3. 5C Analysis

Company Karnataka Milk Federation (KMF) is the largest Cooperative Dairy

Federation in South India, owned and managed by milk producers of Karnataka State.
KMF has over 2.27 million milk producers in over 12474 Dairy Cooperative Societies at
village level, functioning under 13 District Cooperative Milk Unions in Karnataka State.
Quality Excellence from Cow to Consumer is the motto of the Federation to obtain
better-quality milk and milk products from our value chain (Procurement to Processing to
Marketing). Thus milk and milk products, under NANDINI brand name, are unmatched
in quality made available to consumers at most competitive prices.

Competitors As per business market major players in the business are Arokya, Vijaya,
TejaGold, Ksheera Krishna and other local loose milk seller
According to various survey conducted in Maddipet area of Raichur most of the
consumers are using non Nanadini brands such as Arokya, Teja or loose milk and the
results of the survey showed that the reason for the same was the excess amount of water
in Nandini milk. When discussed with the marketing manager of Nandini, it was
conveyed that most of the retailers are not loyal to the Nandini brand and often promote
other brands due to high profit margins.

Customers The major customer base of Nandini milk consists of urban population in
areas such as Bangalore, Mysore, Mangalore etc. The primary reason for the same is the
packaging of Nandini products and the distribution channel through which Nandini
distributes its products. Nandini with its large portfolio of products that includes various
varieties of milk caters to a wider array of customer base. And with its portfolio of diet,
skimmed and low fat milk products Nandini also attract the health conscious consumers.
And it also the budget conscious consumers as Nandini products compete with the like of
AMUL in terms of quality but is muh more affordable in terms of economy and hence
attract the budget conscious buyers too.
Collaborators The primary collaborators of Nandini includes the following;
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Over 2.27 million milk producers

Over 12474 Dairy Cooperative Societies at village level
District Cooperative Milk Unions in Karnataka State
And in numeral number of organised and unorganised retailer network to
distribute and sell their products.

Climate Since KMF is a government cooperation the business environment for Nandini
is very favourable when it comes to various compliances and legal processes.
And because of Nandinis partnership with various private entities it enjoys a diverse
business environment.

8. PROMOTION

Objectives- Keeping in mind the rationale of this project and its scope, weve arrived at
the following objectives:

Promotion is sub-divided into two parts:

Above the line promotion: Promotion in the media (ex. T.V, radio, newspapers, internet,
mobile phones) in which the advertiser pays an advertising agency to place the ad.

Below the line promotion: This type of promotion is an immediate or delayed incentive
to purchase, expressed in cash or in kind, and having short duration. It is efficient and
cost-effective for targeting a limited and specific group of people.

Opportunities:

Increase in sales by providing extra incentives to purchase.

Attract customer traffic and maintain brand/company loyalty.
Impulse purchases increased by displays.
Contests generate excitement especially with high payoffs.

Limitations:

To increase buying response by ultimate consumers.

To increase selling efforts and intensity by dealers as well as by sales personnel.
To capture major share of the market.
To meet the competition of other firms.
To inform the public about the new product and its specialties, attraction and advantages.
To create favorable attitude towards the product.
To establish and maintain communication with large market segments.

May diminish image of the firm, represent decline in the product quality.
May shift focus away from product itself to secondary factors, therefore it might affect
product differential advantage.

Major Promotional tools:

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 Consumers

Coupons: Supplied along with a product, coupons can be mailed, enclosed in the packets
or printed in the advertisement.
Samples: Free samples are given to consumers to increase the product.
Money refund offers: If the purchaser is not satisfied with the product, purchasers entire
money is refunded.
Premium Offer: It is a temporary price reduction, which increases the instincts of the
buyer.

Dealers:

Price off: It is a straight discount given on the list price on each case purchased during a
stated time period.
Allowance: Amount offered in return for the retailers agreeing to feature the
manufacturers product in some way.
Free Goods: Extra cases of merchandise to middlemen who buy a certain quality or who
feature a certain flavour or size.
Price Deals: Special discounts for special quantities purchased.
Co-operative Advertising: Dealers spend money in advertising manufacturers product
with the consent of manufacturers.

Sales force:

Bonus to sales force: If the sales force sells the product above the targeted sales, bonus is
offered.
Sales contests: Prizes go to the winner.
Salesmen meeting and conference: To educate, inspire and reward salesmen.

9. REVIEW OF LITERATURE
Consumer is a term used to describe any individual or household who use goods and
services produced in the economy.
Consumer Theory is a theory of microeconomics that relates preferences to consumer
demand curves. The link between personal preferences, consumption and the demand curve
is one of the most complex relations in economics.
Preferences are the desires of each individual for the consumption of goods and services and
ultimately translate into choices based on ability to pay and income of the consumer.
Perception is a process by which individual organize and interpret their sensory impressions
to give meaning to their environment

9.1.Factors influencing Consumer Perception

There are several factors that influence the consumer perception. These can be broadly
classified into:
Consumer specific: Attitude, Motives, Interest, Experience, Expectations
Situation specific: Climate, Social setting
Product specific: Novelty, Differentiation, Price, Look and Feel etc

10. RESEARCH METHODOLOGY

10.1. Type of Research
Descriptive research has been carried out in this project for the collection of data. As the
project is related to study of product and promotion and the consumer perception of these
attributes, study though direct question is more effective. Keeping in mind the scope of the
project, descriptive research is the most suitable method.

10.2. Source of data

The information necessary for this research study is collected by tapping primary and
secondary sources. The sources are as follows:
Secondary Sources:
a) Company Website
The company website ahs details about the products and varieties offered by the
company which is useful information as far as the scope of this study is concerned.
The website also has latest news about the company which can give insights about the
promotional activities and media presence of the company.
b) Related Information from Internet
The resources available on the internet are of great value in terms of historical
surveys and data collected by research groups. The internet also provides substantial
information for literature review.
Primary Sources:
a) Questionnaire
A questionnaire has been prepared as part of the customer survey that will be carried
out to study the consumer behavior and brand image of KMF. This survey will be
conducted across a sample group of 100 odd customers.

b) Personal interaction
10

Personal interview and interaction with the customers will be carried out in order to
know more about their preferences and also the reasons why they buy or do not buy
Nandini Milk.

10.3. Sample design

Sampling is a basically choosing a group of people from the population and conduct a
study or survey on the sample. The sample should be chosen in such a way that it is
representative of the population as a whole and shows behavior similar to the population.

10.4. Sampling technique

The sampling technique used in this project includes both random sampling as well as
stratified sampling.
Sample size: 100
Tool used for data collection: Structured questionnaire
Geographical location of the survey: Bangalore city

10.5. Data Collection Instrument

The primary data collection instrument for the survey is self administered and structured
questionnaire aimed at understanding the various aspects of consumer behavior and
product perception. This method of data collection is widely used. The questionnaire
consisted of 11 structured questions.

11

11.SECONDARY DATA
11.1. Product Portfolio
Nandini milk boasts a wide product portfolio in terms of varieties of milk. Following is the
product portfolio:
S.N
o

Product

Product description

Fat
Content

SNF

Quantity

Toned milk

Pasteurized, most
preferred

3%

8.5%

250ml, 500ml, 1litre

Shubham milk Nutritious creamy

milk

4.5%

8.5%

500ml, 1litre

Pasteurized
Double toned
milk

Milk with less fat,

ideal for health
conscious and senior
citizens

1.5%

9%

250ml, 500ml, 1litre

Samrudhi

Full cream milk

6%

9%

500ml

Homogenized
Cows milk

Nutrient rich cow

milk, uniform
thickness, extra
creamy

3.5%

8.5%

500ml, 1litre, 5litre

Goodlife Slim

Fat-free milk

99.5% fat
free

9%

500ml & 1litre tetra

pack

Sampoorna
Standardized
milk

Nutritious wholesome
milk

4.5%

8.5%

1litre tetra pack

Goodlife UHT Extra long shelf life

3.5%

8.5%

1litre tetra pack

Special Toned
milk

4%

9%

250ml, 500ml, 1litre

Nutritious
homogenized milk

Note: We have not considered any other milk product as it is outside the scope of this
study.

11.2. Promotional activities by Nandini

12

The company is adopting more and more sales promotion tools in their marketing
strategies in a market where consumers have the power. Target market of the company
includes the brand switchers who can be lured by premium product at lower prices.
The company has also adopted a few trade push methods for growth and used the limited
cash they had for sales promotion judiciously.
Trade push methods offer more guaranteed results as compared to advertising campaign.

The following sales promotion tools are adopted by Nandini:

Glow sign boards
Point of purchase material
Shape boards
Banners
Vehicle Paintings
Calendars
Incentives to traders
Greetings
Dairy plant visit by school children
Cold Chain
Door to door campaigns
Deep freeze
Mobile quality testing
Vise coolers
Awareness program-campaigns
Cycles to delivery boys
Contests/Quiz competition
Fixture for parlours
Other avenues
Media
Gifts to institution
Press Ads
Milk bags translation
Advertisement through cable
Gifts to agents
Trade shows

Advertisement by KMF:

KMF is banking on its goodwill of 30 years and the fact that it is handled under
government of Karanataka to advertise their product.
Consumers have faith in the product and the market value is good.
Low cost advertisement through hoardings, boards at the outlets and retail shops.
Advertisements in media and newspapers only on festive occasions wishing customers
and farmers.
Media marketing is used mainly to launch new products like Good Life and flavoured
milk, etc.
Milk comes with different fat content: 1.5%, 3.5%, 4.5% and 6% etc.
Efficient feedback system regarding any bad product.

12. BCG MATRIX

13

Market Share
High

Low

Market
Growth
High

Low

The growthshare matrix (aka the

product portfolio, BCG-matrix, Boston
matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that was created by
Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations analyse their
business units, that is, their product lines. This helps the company allocate resources and is used
as an analytical tool in brand marketing, product management, strategic management, and
portfolio analysis. Analysis of market performance by firms using its principles has recently
called its usefulness into question.
Cash cow is where a company has high market share in a slow-growing industry. These
units typically generate cash in excess of the amount of cash needed to maintain the
business. They are regarded as staid and boring, in a "mature" market, yet corporations
value owning them due to their cash generating qualities. They are to be "milked"
continuously with as little investment as possible, since such investment would be wasted
in an industry with low growth.

Dogs, more charitably called pets, are units with low market share in a mature, slowgrowing industry. These units typically "break even", generating barely enough cash to
maintain the business's market share. Though owning a break-even unit provides the
social benefit of providing jobs and possible synergies that assist other business units,
from an accounting point of view such a unit is worthless, not generating cash for the
company. They depress a profitable company's return on assets ratio, used by many
investors to judge how well a company is being managed. Dogs, it is thought, should be
sold off.
14

Question marks (also known as problem children) are business operating in a high
market growth, but having a low market share. They are a starting point for most
businesses. Question marks have a potential to gain market share and become stars, and
eventually cash cows when market growth slows. If question marks do not succeed in
becoming a market leader, then after perhaps years of cash consumption, they will
degenerate into dogs when market growth declines. Question marks must be analysed
carefully in order to determine whether they are worth the investment required to grow
market share.

Stars are units with a high market share in a fast-growing industry. They are graduated
question marks with a market or niche leading trajectory, for example: amongst market
share front-runners in a high-growth sector, and/or having a monopolistic or increasingly
dominant USP with burgeoning/fortuitous proposition driver(s). The hope is that stars
become next cash cows.Stars require high funding to fight competitions and maintain a
growth rate. When industry growth slows, if they remain a niche leader or are amongst
market leaders its have been able to maintain their category leadership stars become cash
cows, else they become dogs due to low relative market share.

As a particular industry matures and its growth slows, all business units become either cash cows
or dogs. The natural cycle for most business units is that they start as question marks, then turn
into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At
the end of the cycle the cash cow turns into a dog.
Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on
its growth opportunities. The balanced portfolio has:

stars whose high share and high growth assure the future;
cash cows that supply funds for that future growth; and
question marks to be converted into stars with the added funds.

13.PRIMARY SURVEY

CUSTOMER SURVEY: Nandini Milk Promotion and Product.

1. Have you heard of Nandini milk and milk products?
a) Yes
b) No
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2. What is the quantity of your milk consumption everyday?

a) Once in a day
b) Twice in a day
c) More than twice in a day
3. Which brand of milk do you drink?
a) Nandini
b) Amul
c) Aarokya
d) Akshaya Kalpa
4. If you want to switch to a new brand of milk, which brand of milk are most likely to
switch to?
a) Nandini
b) Amul
c) Aarokya
d) Akshaya Kalpa

5. Please rate the following factors which you consider while buying a packet of milk on
a scale of 1-5
FACTORS

Brand
Packaging
Price
Opinion of Family and
Friends
Brand
ambassador(Endorsement)
Ads and media
6. Does the association of celebrities with the product ads influence your opinion of the
product?
a) Yes
b) No
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7. Please mark the preference for the different varieties of product and packaging you
want the company to provide for your milk.
a) No variety
b) Minimum varieties (based on sugar content, health factors etc.)
c) Varieties based only on packaging size.
8. Which type of advertisements influence your opinion about laptops?
a) Email and messages
b) Social networking ads
c) Ads on televisions
d) Ads in newspapers and magazines.
e) Ads dont influence my opinion.
9. Do you think your daily consumption of milk will increase if there is an
offer/discount?
a) Yes
b) No
10. Please specify your gender
a) Male
b) Female
11. Please specify your profession
a) Working professional
b) Student
c) Self employed
d) Others

14. DATA ANALYSIS AND INTERPRETATION

In this study we have taken the sample of 100. The data has been collected by questionnaire. The
collected data is depicted graphically.

14.1. Graph and Data Interpretation:

The survey is conducted in Bengaluru city. The outcome of the survey is,
1) Nandini milk awareness
Have you heard of Nandini milk and its products?
Yes
No

95
5
17

Analysis: 95% of the respondents are aware of Nandini milk.

Interpretation: From the above data it can be said that most of them know about Nandini
milk.

2) Quantity of milk consumption

What is the quantity of milk consumption per day?

Litres

No.of Consumers
1
15
0.25
65
0.5
20

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Analysis: 57% of the respondents consume 1 litre, 29% consume 500 ml and 14%
consume 250 ml of Milk every day
Interpretation: From the above data it can be said that majority of people consume 1
litre of milk daily and Nandini can capitalise on this by producing more number of 1 litre
packets.
3) Brand of milk consumed by people
Which brand of milk do you drink?
Amul
Nandini
Arokya
Akshaya Kalpa

35
50
10
5

19

Analysis: In the survey conducted, 50% of the respondents use Nandini milk, with
Amul as the closest with 35%.
Interpretation: From the above data it can be said that brand awareness of Nandini is
relatively better.

4) Brand shift
If you want to switch to a new brand of milk, which brand of milk you are most likely to
switch to?
Amul
Nandini
Arokya
Akshaya Kalpa

64
20
10
6

20

Analysis: In the survey conducted, 64% of the respondents want to shift to Amul
whereas only 20% want to shift to Nandini.
Interpretation: From the above data it can be said that Nandini should try to come up
with more innovative ideas to retain its customer base. There is a threat from upcoming
brands such as Arokya and Akshaya Kalpa as well.

5) Influencing factors to buy Nandini Milk

Which of the following factors infuence you to buy Nandini Milk?

Analysis

and

Reference by Friends

25

Advertisement

10

Own Decision

45

Price and Brand

20

Interpretation:

the survey conducted, 45% of the people choose the brand by their own decision.
21

In

6) Influencing qualities for buying Nandini

Please rate the following factors which you consider while buying a packet of milk on a
scale of 1-5

Rating
Brand

3
25

4
30

5
55

10
10

35
25

55
65

10

55

20

35

45

10

35

20

35

Packaging
Price
Opinion of
friends and
family
Brand
Ambassador
(Endorsement)
Advertisement
and media

20

Analysis: In the survey conducted, maximum rating is for Price, Brand and Packaging,
followed by Opinion of friends and Advertisements.

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Interpretation: From the above data it can be inferred that any change in price, brand,
packaging and advertisements changes the perception of customers in a significant
manner, whereas, changes in Brand ambassador does not impact majorly.
7) Association of Celebrities
Does the association of celebrities with the product advertisement influence your opinion
of the product?
Yes
No

25
75

Analysis and Interpretation: In the survey conducted, 75% of the people do not think
that celebrity association helps in opinion building

8) Type of Advertisements
Which type of advertisements influence your opinion about Milk and Milk products?

Ads on televisions

Ads in newspapers and

magazines

55

15
23

Ads dont influence my

opinion

25

Other

Analysis and Interpretation: In the survey conducted, 55% of the people are influenced
by Television Ads, whereas 25% people are not influenced by Ads.

9) Consumption based on Offers

Will you buy/consume more milk if there is an offer/discount?
Yes
No

65
35

24

Analysis and Interpretation: In the survey conducted, 65% of the people are influenced by
Television Ads, whereas 25% people are not influenced by Ads.
10) Preference for variety
Please mark the preference for the different varieties of product and packaging you want
the company to provide for your milk

No variety

25

Minimum varieties (based on sugar content,

health factors etc.)

30

Varieties based only on packaging size

45

25

Analysis and Interpretation: In the survey conducted, 45% of the people want varieties based
only on packaging, 30% people are influenced by sugar content, health factors etc. whereas 25%
of the people are indifferent.

11) Gender
Male
Female

75
25

26

In the survey conducted there were 75 men and 25 women

12) Profession

Government service

25

Working professional

35

Self employed
Student

5
35

The survey consisted

majorly of Students
and Working
professional.

15.SUGGESTIONS
FOR
IMPROVEMENT:
1. Launch a range of
organic milk products to
2.
3.
4.

5.

counteract the same portfolio launched by the competitors.

Increase credit business to grow sales, which encourages more and more dealers to buy the
products, which they usually cannot due to liquidity problems.
Increase exports to other states with high demand for Nandini products, such as Kerala, Goa,
Tamil Nadu, Andhra Pradesh.
Increase availability of Nandini milk throughout the day.
a. Introduction of an adhoc milk distribution route from 6 AM to 4 PM at regular
intervals to cater to the retailer needs after normal vending hours.
b. Supply loose milk in 40 Lt. Cans to hotels, hostels and institutions at a concession.
c. Identify uncovered areas of distribution and appoint new retailers to such areas to
expand the local market.
Provide a specifically designed stand, made for Nandini milk and other products, which
solves the following purposes:
a. Customers get all the different products of Nandini side by side on a single stand.
b. It takes up market share of other dairy products for which customers usually prefer
other brands.
c. Increases brand awareness amongst new potential customers.
d. Leads to stacking of other brand products, put side by side in a corner.
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6. Change in packaging: Provide milk in cartons with a lid, which is more convenient for the
customers.
7. Even though sales promotion strategies are working to full capacity, advertisement is
necessary to survive in this market. So, we would suggest increasing the advertisement
budget.
8. Creation of the grievance redressal cell:
a. A designated toll free number, directly to the marketing department.
b. Complaint to be addressed immediately and to be rectified within 24 hours.
9. Constitute effective replacement/ leakage policies.
a. Film quality testing programmes.
b. Focus on discussions.
c. Segregating leaky products at dairy dock before dispatching.
d. Proper monitoring of packaging machines.
e. Storing in required temperature before dispatch.
f. Taking proper care during transport to avoid damage.
10. Eliciting consumer feedback for quality assurance:
Prepare a set of questionnaire and elicit the feedback from the customers to get us
information about customers perception on Nandini milk and milk products, quality,
packaging, and pricing, etc.

16.FINAL RECOMMENDATION
In this study we mainly focused on consumer perception about KMFs flagship brand Nandini
especially its range of Packet Milk. The primary research was conducted in and around the HSR
layout one of the posh localities in Bangalore city. In our primary research though an online
survey we found that KMF consumer are very loyal especially towards its milk products
And even though KMF does not have a very substantial presence in terms of advertisements as
compared to the other brands KMF is doing very well on the basis of just its strong brand name
and market presence and this is being leveraged by KMFs Nandini with great efficiency. And
even though one can argue with the wide channel of distributors and dealers they are just a part
of the supply chain and do not have the responsibility of promoting the product.
According to the survey conducted in and around HSR layout, the survey reflects that KMF is
the leading milk and milk ancillary products brand. This can be attributed to the exceptional
quality of the products that Nandini and KMF produce the hygiene they maintain and the fact
that they are sourcing all its raw milk from nearby villages keeping its products as fresh as
possible. As a result of this, Nandini has become a common household name and somewhat of a
domestic dairy star.
In order to further improve its brand presence and maintain the status of current leader of the
market KMF has to give more advertisements as there is tough competition with the local dairies
like Harsha Dairy Gokul Dairies and also other national brands such as Amul, Nestle etc.
Even though with the tough completion around KMF is doing well in the cities with the help of
its variety of products good quality hygiene and also highly competitive prices when compared
to other brands. With that said in conjunction with our primary research it can be concluded that
KMF and Nandini are doing very well in the urban region. Majority of the consumer prefer KMF
and the trend seems to hold on for a long while in the future and. These products have got a good
market penetration with the help of good quality, reasonable prices, great taste and hygiene.
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