Table of Contents

1. INTRODUCTION 1
1.1 The Indian Market - A Pyramid 1
1.2 Growing Volumes 1
1.3 Potential for further growth 1
2. THE ORGANISATION 2
3. THE GGGMUL’S MARKET 5
4. ACTIVITIES AND PRODUCTS OFFERED BY THE MILK UNION 6
4.1 Procurement 6
4.2 Processing 6
4.3 Marketing 6
4.3.1 Organizational structure of the marketing department 7
5. THE PROJECT 8
5.1 Problem definition: 8
5.2 Research problem 8
5.3 Research objectives 8
5.4 Scope of the study 9
5.5 Working Definitions 9
5.6 Data Sources 9
5.6.1 Primary Sources: 9
5.6.2 Secondary Sources: 10
5.7 Data Requirements 10
5.7.1 Consumer survey 10
5.7.2 Institutional consumers survey. 10
5.7.3 Retailer Survey 11
5.8 Methodology 12
5.8.1 Consumer Survey 12
5.8.2 Institutional consumer survey 12
5.8.3 Marketing and sales department study 12
5.9 Sampling Plan 12
5.10 Limitation of the Study: 14
6. FINDINGS OF THE PRESENT STUDY 14
6.1 Market size 14
6.2 Players in the market 15
6.3 Market share 15
6.4 Major market of the union 16
6.5 Consumer Survey 17
6.5.1 Kind of milk purchased: 17
6.5.2 Choice of source 18
6.5.3 Usage of milk 18
6.5.4 Time of purchase 19
6.5.5 Price paid per litre by loose milk users 20
6.5.6 Frequency of purchase 20
6.5.7 Amount of milk consumed 21
 6.5.8 Willingness to purchase packed milk 22
6.5.9 Preferred pack size 22
6.5.10 Preferred shape of the pack and type of the milk for 200 ml pouch 23
6.5.11 Purchase responses of 200 ml pouch at Rs 3.50 23
6.5.12 Demand of 200 ml pouch at Rs 3.50 25
6.6 Cost of Producing One Litre of Packed Milk 26
6.7 Financial Benefit of the Union from the 200 ml Pack 27
6.8 Benefit to the retailer 28
6.9 Consumer preferences: 28
6.10 Problems faced by the OMFED users 29
6.11 Source of awareness 30
6.12 Institutional consumers 31
6.12.1 Hospitals 31
6.12.2 Hostel 31
6.12.3 Tea shops 32
6.13 Retailer survey 32
6.13.1 Nature of business 33
6.13.2 Level of Satisfaction 34
6.13.3 Door Delivery 34
6.13.4 Replacement policy 34
6.13.5 Variation in the quality and quantity 35
6.13.6 Credit 35
6.13.7 Price 35
6.13.8 Untimely supply 36
6.13.9 Commission and Incentives 36
6.13.10 Advertisements/Promotions 36
6.13.11 Appointment of retailers 36
6.14 Segmentations 36
7. CONCLUSION AND SUGGESTIONS 39
7.1 Launching 200 ml Pouch 39
7.2 Supply of Lactometer 40
7.3 Product Differentiation 40
7.4 Packaging 40
7.5 Sensitising the Consumers 40
7.6 Pricing Strategy 41
7.7 Strengthening the Market Intelligence 41
7.8 Brand Equity 41
7.9 Credit Facility 41
7.10 Price 42
7.11 Retailers in residential area 42
7.12 Door Delivery 42
7.13 Bulk Schemes 43
7.14 Promotions 43
7.14.1 Road Shows 43
7.14.2 Media mix 43
7.14.3 Use of procurement and marketing vans for promotion 44
 7.14.4 Consumer Orientation Programme 44
7.14.5 Debate 44
7.15 Entry into New Markets 44
References 45
Annexures
 LIST OF TABLES

Table Sl Descriptions Page

No No. No
1 1 Population distribution of Ganjam and Gajapati district 2
2 2 Chilling and processing units and their location with 3
capacity
3 3 Showing the market demand projection 5
4 4 Sampling plan 13

5 5 Demand of the Ganjam district 15

6 6 Different players of the liquid milk market in the Ganjam 16
district and their market share.
7 7 Cost of producing one litre of packed milk 27
8 8 Benefit of the union due to the proposed launch of the 200 28
ml
9 9 Percentage of the OMFED users facing different problems 30
10 10 Showing the source of awareness for the respondents 30
11 11 Segments for the 200 ml pouch 38

LIST OF GRAPHS

Graph Description Page No

No
1 Milk procurement of the union for the last 5 years 3
2 Marketing of milk (lt) for the last five years 4
3 Average daily milk sale of the union in its major markets 17
4 Percentage of respondents consuming different kind of milk. 17
5 Percentage of respondents purchasing milk from different 18
sources
6 Percentages of respondents use milk for different purposes. 19
7 Percentage of the respondents purchasing milk at different time 20
8 Percentage of loose milk users paying different 20
9 Frequency of purchase. 21
10 Percentage of respondents consuming different amount of milk 21
(in lt)
11 Percentage of the Non-OMFED users willing to purchase milk 22
after the lactometer Test.
12 Preference of pack sizes by those loose milk users who are 23
willing to purchase packed milk after lactometer test.
13 Responses to buy 200 ml at Rs 3.50 24
14 Purchase intentions at different price level 24
15 Cumulative response of consumers to price variation 25
16 Consumer preferences for different attributes 29
17 Percentage of different categories consuming different kind of 37
milk

LIST OF ABBREVIATIONS

CRCM Cream Rich Cow Milk

COP Consumer Orientation Programme
DTM Double Toned Milk
GGGMUL Greater Ganjam Gajapti Milk Producers Union Limited
IDDP Integrated Dairy Development Project
ISNRMPO Indo-Swiss Natural Resource Management Programme of Orissa
ISPO Indo-Swiss Project of Orissa
LPD Litres Per Day
MCC Milk Chilling Centre
ml Milli litre
MPCS Milk Producers Co-operative Society
Lt Litre
OMFED Orissa State CO-operative Producer Federation Limited
OWDP Orissa Womens Dairy Project
P&I Procurement and Inputs
SMP Skimmed Milk Powder
SNF Solid Not Fat
TV Television