Objective of the study: To understand the marketing strategy of mother dairy safal and to have an overview of the same

of its competitors in Delhi.

Introduction:About mother dairy

Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oils and the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a national level, through its sales and distribution networks, for marketing food items. This program was started with the Mother Dairy, Delhi, since February 1980and there after Mother Dairy is continuing this program on their own as a social responsibility without having any financial assistance from the Government as well as since it is felt that BVM is generally consumed by the middle / lower middle / poor strata of the society. It is also found that the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. The company markets as an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 375own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 150MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 300MT per day. Background of the study The mother dairy safal is more over based on the anand model where there is a mutual cooperation and benefit of both the farmers cooperative as well as the organization. The mother dairy safal came into existence with this very core value to reach the unreached. The organization really works for the benefit of both the consumers as well as the producers.

The procurement The 60% of the procurement of its fruit and vegetables the mother dairy does is from the farmers association and rest is from the local mandis . Model of procurement is based on both demand and supply basis i.e the procurement is done from the mandis to fulfill the demand of the local booth which cant be met by the farmers association.
Formation of farmers association:1. 2. 3. 4. An association of farmers is formed which has about 20-25 farmers. Every association chooses minimum of 5 members for their representation to mother dairy. Among the 5 members they choose 1 as secretary and 1 as the chairman of the association. For financial transactions the mother dairy helps the farmers to open an account in any commercial bank. The account is opened in the name of the association. The secretary and the chairman are responsible for the transactions.

Technical assistance:1. The fruit and vegetable keeping carats and packing materials are provided by mother dairy to the farmers. 2. The farmers were given the logistic support i.e. trucks, refrigerated trucks etc. to get their produce to mother dairy. 3. The farmers are also provided proper assistance and technical inputs in cultivating the crops. For the technical support they have their own agriculture support department whose agriculture scientists provide full assistance to the farmers. 4. Every month the mother dairy officials held a meeting with the farmer association. In which they not only share the grievances of the farmers (if any) regarding the trade but also share necessary information regarding the business and also discuss about their future plans.

About the product:The product is categorized in four different categories 1. Premium grade 2. A grade 3. Commercial grade 4. Economical grade The price differentiation is based on the grades. The product supply is also dependent on the consumer categorization i.e. the better product will reach the area where the maximum can be sold.

The variety of products:The products varieties that are available in a safal booth are:a) Fruit and vegetables:- Almost all the variety of fruits and vegetables are available in a safal booth that are in demand in that particular booth. b) processed fruits and vegetables:- the mother dairy booth are rich with almost ten varieties of jams and pickles like:- apple jam, mixed fruit jam, pine aple jam, orange marmalade, lime pickle, mango pickle, mixed pickle, stuffed chili pickle, tomato ketchup and tomato uree. c) The frozen products:- The safal outlet freezers contain the frozen products like frozen peas, frozen corns, frozen mixed veg (contains cauliflower carrot etc.). d) Fruit juices and beverages:- in a safal booth about 14 kinds of juices are available like apple,orange,mixed fruit juice, guava nectar, mango nectar, lichi drink,mangodrink,magic mango, fruit tango, orange drink, peach drink, pine apple drink and plum drink. e) Grocery:- a very limited variety of grocery are available in a safal booth like- gold basmati rice, silver basmati rice, classic rice and parmal rice. The dhara oil with its six different product is also available in a mother dairy booth as per its demand in that booth f) Dairy products:-safal booths are also equipped with variety of dairy roduct from its mother concern i.e mother dairy milk products about eight variant of milk, three variant of curd,four variant of chach and lassi and about 12 variety of milk drinks and ghee in three different variants. The fruit and vegetables that are sold in mother dairy are almost fresh and hygienic to consume. The booths are refilled with the stock twice a day and the rooten fruits and vegetables which doesn t got sold are collected by the respective vans which came for refilling and are sent back to the plant. The cost of the particular rotten fruit and vegetable is refunded in the account of the proprietor who is operating in that booth.

The competitors :There are also market players who are giving tough competition to mother dairy and are really working hard to increase their market share and customer foot falls. ORGANISED SECTOR Relaince fresh

Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. . The company already has in excess of 600 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products.

A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a catchment area of 23 km. Reliance Dairy Foods, a subsidiary of Reliance Retail, is muscling into the countrys branded milk product market with a new brand that will take on established players such as Amul, Mother Dairy, Nestle and Gowardhan by offering higher margins to retailers and 10% extra milk to customers. The Mukesh Ambani-controlled company sell its new milk brand, Life, through general milk distributors, while its existing Dairy Pure brand is sold only through Reliance Retail stores. The Life brand milk will be available in Haryana, Punjab, Andhra Pradesh, Tamil Nadu, Rajasthan, National Capital Region (NCR) and Himachal Pradesh, a Reliance Retail.

Spencers:The spencers .is also a major competitor of safal. Although they have their presence in delhi with a very limited no. of outlets . the major customers to the store are people from upper middle class which is quite very much different from safal which is accessed by almost all the income category of mass. Spencer's Retail is one of Indias fastest growing stores. Spencers is based on the 'Food First' Format (it mainly offers fresh and packaged food). Many outlets though sport multiple formats for retailing food, apparel, fashion, electronics, lifestyle products, music and books. It is owned by the RPG Group, a major business house. Established in 1996, Spencers is one of the popular destination for shoppers in India with supermarkets, hypermarkets and dailies spread all over India. Product categories
y y y y y y y y

Food and grocery including Fast Moving Consumer Goods (FMCG) processed foods Fresh fruits, vegetables & exotic range Specialty and international foods Personal Care, cosmetics and fragrances Home and office essentials Electrical and Electronics Garments and fashion accessories for men, women and children Food-court / caf

Spar:The abbreviation SPAR stand for DE SPAR, an acronym of the Dutch phrase Door Eendrachtig Samenwerken Profiteren Allen Regelmatig (literally: "through united co-operation everyone regularly profits"). Although I have visted only a single store situated in subhash nagar but I found it very attractive with all the possible categories and varieties of fruit and vegetable available there. Almost all possible national and a lso some of the foreign brands are possible

there. The customers who visit the tore are mainly from upper middle class and upper class as because of its location as well as the prices of the products.

BIG BAZZAR :Big bazaar is a chain of shopping malls in India. Currently, there are 148 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Family centers measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet. Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. Big Bazaar is part of Future Group and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited that is listed on Indian stock exchanges.

The beverages and juice products

An Dabur Real Food is heading off in untested directions by launching a new range called Coolers which includes traditional recipes like Aam Ka Panna (a green mango drink). It has also launched a pomegranate juice and a water melon drink. A jamun variant will soon follow. Or, look at Pepsi Foods that has recently launched Tropics, a new range of what are called nectars in the fruit juice business. Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves. Pepsi Foods is also aiming at customers with more exotic tastes with an orange-apple combination and a tropical fruit fusion drink (a mix of mango, guava, pineapple, orange and apple juices). Dabur and Pepsi Foods arent the only companies that are moving into overdrive in the juice business. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action. The result is that players like Dabur Foods, Pepsi Foods, Godrej Industries Foods Division, Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. The results are on show to anyone who steps into a neighbourhood supermarket. There are now racks filled with fruit juices, nectars and drinks (the difference lies in the pulp content juices are 100 per cent while drinks are below 20 per cent and nectars fall in between). The swift growth in the market is attracting newcomers like Mother Dairy which recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now also launched an apple-peach combination juice and a mixed fruit variant. Even Godrej Industries Foods Division has introduced fruit juices under the Xs brand (which earlier only consisted of nectars) and a soya milk fruit juice based drink called Sofit this year. Parle Agro of Frooti and N-joi fame too is rumoured to be on the verge of new launches.

The branded fruit juice market in India is estimated to be worth Rs 500 crore organised fruit beverage market (nectars, drinks and juices combined) and the segment is growing at about 30 per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the market and in view of the swift growth in the market, newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in the recent years. Amit Burman, Chief Executive Officer, Dabur Foods, told Food & Beverage News in an interview that the market share of Dabur's Real Fruit juice is now 60 per cent. No doubt Dabur's Real Fruit juice is the market leader followed by Pepsi's Tropicana. The two major fruit juice

makers in India, Tropicana and Dabur are going all out to tease Indian taste buds with ethnic flavours. However, Godrej's Jumpin is slowly achieving its space in the fruit juice market. Godrej Industries Foods Division has introduced fruit juices under the Xs brand, which earlier only consisted of nectars. Parle Agro's Frooti and N-Joi too are doing well in the market. Delhi NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. Mother Dairy has recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach combination juice and a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of soft drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently. There are now racks filled with fruit juices, nectars and drinks. Real juices from Dabur Foods Dabur Foods introduced for the first time in the Indian market Cranberry juice - Real Cranberry Nectar. An innovative product from Dabur Foods' portfolio, Real Cranberry Nectar is exotic fruit juice nectar, available in 1-litre packs. According to sources, Real Cranberry offers the exotic flavour and nutritive value of cranberries, rich in vitamins, minerals and antioxidants, which make it a healthy beverage. Dabur Foods' flagship brand, Real offers the largest range of fruit juices, which are an assortment of traditional Indian and international flavours - orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi and cranberry. Real Fruit Juice is a packaged, 100 per cent preservative-free fruit juice brand offering consumers the great taste and wholesome nutrition of freshly squeezed juice in a hygienic and attractive pack. Dabur Foods is the only juice company in India and among the top 5 companies in the world to use the latest spin cap tetra pack, cold fill technology and spill-proof double seal cap for packaging. Real Fruit Juice is India's first and only packaged Fruit Juice brand to get SGS (Societe Generale de Surveillance) certifications for high safety standards used in packaging that conform to the stringent HACCP and GMP standards. The brand has also won the award for 'Highest sales growth achieved by a brand' in the non-dairy category. Dabur Foods also launched preservative-free fruit juice a subbrand Real Junior in 2004, targeted at kids below six years - creating age-specific market segmentation. This is claimed to be a first of its kind segmentation in the Indian fruit juice market in keeping with Dabur's marketing strategy of segmenting the market with customised fruit juices. Real Junior has two flavours - mango and apple, enriched with calcium, in 125 ml packs for children below six years. The vibrant packs with animated fruit characters are intended to appeal to children by highlighting the taste and nutrition of Real Junior. Dabur Foods has a portfolio of nine variants under the Real brand, which offers the largest range of fruit juices - an assortment of traditional Indian and international flavours - orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi and cranberry. To expand the choice-set of juices for consumers, Dabur Foods has constantly been introducing innovative variants like Real Activ Orange Carrot India's first fruit-vegetable juice. The company has also launched multiple-size options to kids

like Real Fruit Juice School packs that suit varied consumption needs and occasions. Dabur Foods had launched "India's first" packaged, fruit-plus-vegetable juice, Real Activ Orange Carrot, a blend of juicy oranges and sweet carrots. A nutritious powerhouse to boost the health. Packed with high amount of antioxidants Vitamins A, C and E, Real Activ Orange Carrot juice provides instant rejuvenation to body and also strengthens the immunity levels. Real Activ Orange Carrot juice is a delicious and convenient way to include more vitamins and minerals in your diet. Carrot juice, also known as the 'miracle juice,' is beneficial for eyes, skin and the digestive system. Orange juice provides energy, relieves nausea and also helps in improving resistance of the body. Real Activ is targeted at health conscious young executives for whom fitness is a way of life and is available in orange and apple flavours. Pepsi's Tropicana Tropicana has launched a sub-brand Tropicana Tropics and is introducing new flavours mango nectar, guava pulp and litchi juice under this brand. It may be recalled that Pepsi had launched mango and litchi flavours earlier under its fruit drink brand 'Slice' in returnable glass bottles. Tropicana juices have 80 per cent fruit pulp content. At present Tropicana has about seven flavours in the market - apple, pineapple, orange, apple orange, grape and mixed fruit. The company is now working on building the same capacities for other fruits like guava, pineapple, papaya pulp, grapes and pomegranate. PepsiCo teamed up with Punjab Agri Export Corporation for a joint citrus cultivation project in 2003 in Punjab. The company was looking for a similar deal with pineapple farmers in Kerala. Dabur Foods is going local with a vengeance with its fruit juices. It is also aiming to expand its market by introducing juices with a lower price tag. The company has launched a new brand 'Coolers' in four variants - green mango, pomegranate, jamun, and water melon with one litre of Cooler priced at Rs 50. Coolers like Tropicana Tropics also contains only 20 per cent of fruit pulp against over 80 per cent in Real variants. According to sources, Tropicana Pure Premium orange juice is made from one thing - Orange. Original with no pulp, Homestyle with some pulp, and Grove stand with lots of pulp. Also look for the Calcium fortified products: Calcium plus Vitamin D with no pulp, and Grove stand (Lots of Pulp) with Calcium. Tropicana Pure Premium is the orange juice brand. Jumpin, Xs from Godrej The foods division of Godrej Industries has been one of the pioneers in the fruit drinks and fruit nectar categories in India. It offers two well-known brands - Jumpin and Xs. Jumpin - this range of fruit drinks is available in four flavours: mango, pineapple, apple and orange. It comes in an innovative baseline pack design that is trendy and easy to hold. Flavour retention is high and freshness of taste is never lost. Jumpin can be enjoyed straight or in a punch or cocktail. It is available in slim packs of 200 ml in trays of 27 (straws provided). Also available in 1000 ml

packs. Xs - this brand comes in three flavours: mango, litchi and orange. Xs contains highquality fruit pulp, which makes it tastier and more filling than ordinary fruit drinks. It can be served straight and also makes a great cocktail mix. Available in packs of 200 ml in trays of 27 (with straws). Also available in 1000 ml packs. The foods division of Godrej Industries has made a mark in the exports market. Jumpin and Xs beverages, manufactured at India's largest singly located plant, a state-of-the-art facility that has ISO 9002 and HACCP certification. This plant uses the latest machinery; it has a rigorous testing procedure, and is manned by a qualified and experienced team of microbiologists and food technologists. The world-class Mandideep plant, near Bhopal in the northern Indian state of Madhya Pradesh, was ISO-9002 certified in May 1995 and is the first facility in its category to get the 'quality management system certification'. Frooti, N-joi from Parle Agro Parle Agro Ltd is betting on 'N-Joi' - positioned as 'real fruit, real milk' - to further slice open the virgin fruit-milk beverage market. The Mumbai-based company launched N-Joi - initially an Alphonso mango with fresh dairy milk variant. The company has 11 Tetra Pak facilities in the country. Initially, the western and southern markets will meet supplies from the Mumbai plant. Parle Agro's Frooti is reported to be over Rs 250-crore turnover. Frooti's marketshare is claimed to be 85 per cent in the tetrapak segment and 29 per cent in the mango beverage category (including bottles and tetrapak). Mango fruit beverage is estimated to account for 91 per cent of the sales of all fruit juice variants while orange juice accounts for only 3.1 per cent. Further, under the N-joi brand umbrella, the company launched half-a-dozen milky-fruity variants, including peach-milk, strawberry-milk, pineapple-milk, banana-milk, and cheekoo-milk. Frooti remains a dominant mango fruit beverage brand. Freshgold from Surya Foods & Agro Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. It has set up a state-of-the-art manufacturing facility in Noida, Uttar Pradesh, with an investment of Rs 25 crore. The plant has a capacity of producing 1.5 lakh litres of juice per day. Branded `Freshgold', the one-litre juice in cartons is available in supermarkets and malls in and around Delhi for Rs 60. B P Agarwal, Chairman, Surya Foods and Agro Ltd, said that though the juices are currently available only in the northern markets, the company has a plan to launch it in the south in near future. Leh Berry from Ladakh Foods Ladakh Foods is building a portfolio of products from fruit juices to jams and sauces, based on

the little-known seabuckthorn berry, which grows in the Ladakh region. That may seem like a risky gamble. But Ladakh Foods doesn't think so. It launched Leh Berry a couple of months ago. Its first fruit juice in Delhi and it's selling it in the more affluent parts of town. Since January the drink has also been on shopshelves in cities like Hyderabad, Nagpur and Pune. According to company sources, the juice will be competing with established players as Tropicana and Real. Leh Berry believes it has the advantage of a fresh taste. But its competitive edge may well lie in its positioning. Ladakh Foods is marketing Leh Berry as a nutrition drink (it prefers not to use the word health, with its bitter, medicinal associations), based on the chronicled nutritional properties of the seabuckthorn fruit. Ladakh Foods' target of capturing at least 7 per cent of the market share within a year and 20 per cent by 2006-end is ambitious, company sources added.