ACKNOWLEDGEMENTS

I take this opportunity to thank all the concerned staff of GGG Milk Union, Berhampur,
for the help and cooperation they extended me during the course of my study conducted
in the month of June and July 2004. First of all I would like to thank Mr S.N.Swain,
General Manager and Mr P.G.Dora, ex-General Manager, GGG Milk Union for providing
full-fledged support to conduct this study. I owe special words of thanks to the Reporting
Officer Mr. B.K.Jena, Asst. Manager (P&I) for his continuous help during the progress of
the work and providing valuable insights. I would also like to thank other staff of GGG
Milk Union for taking interest in the topic and providing their help as and when required.

Last but not the least I am especially thankful to my faculty guide Prof. Arvind Gupta for
providing his invaluable constructive suggestions without whose support and keen
interest this study could have not been materialized.

Kanhei Lal Dandasena (24050)

EXECUTIVE SUMMARY

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1. Students Name:
2. Organization:
3. Reporting Officer:
4. Faculty Guide:
5. Project Title:
Market”
Kanhei Lal Dandasena
Greater Ganjam Gajapati Milk Producers Cooperative
Union Limited, Berhampur
Mr. B. K. Jena (Assistant Manager, P&I)
Prof. Arvind Gupta
“Strategy for Marketing Milk and Milk Products in Rural

Objectives: The objective of the study was to understand the liquid milk and milk
product market, assess the consumer preference and suggest strategies for growth in sale
of milk and milk products in the existing rural market and develop strategy to enter new
rural market.
Scope: The study was carried out in rural areas of Ganjam district.

Methodology: Consumer in-depth interviews, Household consumer survey, Institutional

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

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 Sl.No Particulars Page No.

1 Introduction 1
2 The Organisation 1
2.1 Liquid milk and milk product market 5
2.2 Product offering of GGGMU 7
2.3 Organisation structure of marketing department 8
3 Research Design 9
3.1 Decision problem 9
3.2 Research problem 9
3.3 Objectives 10
3.4 Scope 10
3.5 Working definition 10
3.6 Sources of data 12
3.7 Data requirements 12
3.8 Methodology 13
3.8.1 Consumer survey 13
3.8.2 Retailer survey 14
3.8.3 Marketing and sales department 14
3.8.4 Institutional survey 14
3.9 Sampling plan 14
4 Limitation 15
5 Findings 15
5.2 Consumer preference 19
5.2.1 Quantity of milk used 19
5.2.2 Purpose of usage 19
5.2.3 Time of purchase 20
5.2.4 Source of purchase 21
5.2.5 Frequency of purchase 21
5.2.6 Price 22
5.2.7 Duration of usage 22
5.2.8 Preference of consumer for milk 23
5.2.9 Criteria of choice of source 24
5.2.10 Importance of attributes while purchasing milk 24
5.2.11 Awareness about OMFED milk 25
5.2.12 Perception of OMFED milk 26
5.3 Milk products 28
5.3.1 Awareness of milk products 28
5.3.2 Frequency of purchase 29
5.4 Perception of OMFED products 29

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5.4.1 Sweet curd 29
5.4.2 Buttermilk 30
5.4.3 Flavoured milk 30
5.4.4 Paneer 31
5.4.5 Ghee 32
6 Retailer survey 33
7 Institutional consumer survey 33
8 Readership - survey 34
9 Non-user of milk 35
10 Recommendation 36
10.1 Recommendation for new rural market 36
10.1.1 Entered the rural market where distribution cost 36
10.1.2 Appointment of small distributor 36
10.1.3 Regularity in supply 36
10.1.4 Awareness campaign 37
10.1.5 Advertisement 37
10.1.6 New product development 38
10.1.7 Marketing of milk product 38
10.1.8 Home delivery 38
10.2. Recommendation for rural areas where GGGMU has entered 39
10.2.1 Promote CRCM as best for drinking 39
10.2.2 Launch of lower pack size 39
10.2.3 Improvement in quality 39
10.2.4 Agency distance 39
10.2.5 Visit of marketing staff to retailer point 40
10.2.6 Distribution system 40
10.2.7 Replacement policy 40
10.2.8 Packaging 40
10.0.9 Concentrate on COP 40
10.2.10 Segmentation 41
10.2.11 Positioning of milk 42
10.2.12 Positioning of milk of milk product 42
Annexure 1
Annexure 2
Annexure 3

LIST OF TABLES

Table 1 District Profiles 2

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Table 2 Distribution of societies district wise 3
Table 3 MCC and capacity 3
Table 4 Milk demand projection 6
Table 5 Sample size for consumer survey 15
Table 6 Perception of OMFED milk 27
Table 7 Consumer segmentation by usage of milk 41

LIST OF GRAPHS/FIGURES

Graph 1 Milk procurement over last decade 4

Graph 2 Average per day sale of milk over last decade 6
Graph 3 Sale of Sweet curd for last five years 16

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 Graph 4 Sale of Buttermilk for last five years 17
Graph 5 Sale of Paneer for last five years 17
Graph 6 Sale of Flavoured milk for last five years 18
Graph 7 Sale of Ghee for last five years 18
Graph 8 Quantity of milk used in household 19
Graph 9 Purpose of usage 20
Graph 10 Break up of member drinking milk 20
Graph 11 Time of purchase 21
Graph 12 Source of purchase 21
Graph 13 Frequency of purchase 22
Graph 14 Price per litre of milk 22
Graph 15 Duration of usage 23
Graph 16 Preference of milk 23
Graph 17 Criteria for choice of source 24
Graph 18 Importance of attributes while purchasing milk 25
Graph 19 Awareness of OMFED milk 25
Graph 20 Perception about type of OMFED milk 26
Graph 21 Awareness of Milk product 28
Graph 22 Consumer perception of Sweet curd 29
Graph 23 Consumer perception of Buttermilk 30
Graph 24 Consumer perception of Flavoured milk 31
Graph 25 Consumer perception of paneer 31
Graph 26 Consumer perception of Ghee 32
Graph 27 Readership of Newspaper 34
Graph 28 Recalling ability 35
Graph 29 Reason for not using milk 35
Figure 1 Reporting structure of marketing department 9

LIST OF ABBREVIATION

CRCM Cream Rich Cow Milk

COP Consumer Orientation Programme
DTM Double Toned Milk

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GMU Ganjam Milk Union
GGGMUL Greater Ganjam Gajapti Milk Producers Cooperative 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
MPCS Milk Producers Co-operative Society
NCAER National Council of Applied Economic Ressearch
OMFED Orissa State Cooperative Milk Producer Federation Limited
OWDP Orissa Womens Dairy Project
PFA Prevention of Food adulteration Act
P&I Procurement and Inputs
RMT Road Milk Tanker
SMP Skimmed Milk Powder
SNF Solid Not Fat

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