MARKETING MANAGEMENT (Final Project Report) ON MOTHER DAIRY ICE CREAMS Presented to: Prof. Neha Gupta Presented by: Sumaira Patel (39) Vishal Narula (63) Akshay Dhuri (64) Swet Shah (65) Himanshu Shah (66) Abhinav Srivastava (68) K J Somaiya Institute of Management Studies and Research Page | 1 CONTENTS Sr. No. Particulars Page No. 1. Mother Dairy – Company Overview 4 2. Marketing Mix (4Ps) 10 3. Segmentation, Targeting, Positioning (STP) 13 4. Mother Dairy ice cream – Branding Strategy 21 5. Mother Dairy Ice Cream – Pricing Strategy 23 6. Mother Dairy Ice Cream – Distribution Strategy 24 7. Mother Dairy Ice Cream – Advertising Strategy
27 8. Ansoff’s Matrix 30 9. Michael Porter’s Five Forces Model 31 10. BCG Matrix 33 11. Mother Dairy Ice Cream – Product Life Cycle 35 12. SWOT Analysis 36 13. PESTEL Analysis 37 14. Future Strategy 38 15. Survey Questionnaire 41 Page | 2 ACKNOWLEDGEMENT We take great pleasure in submitting this project report for the year 2013-2014 as students of K. J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH. This report is a part of the requirements of the Master in Management Studies Course, University of Mumbai. We take this opportunity to express our gratitude to all those who helped us in completion of our project successfully.
We thank Prof. Neha Gupta for her guidance and suggestions for our project. We would like to give thanks to all the respondents who gave their valuable time in filling our questionnaires and providing us with the valuable information and helped us in completing our project. At last we would like to thank all those who have indirectly helped us for the same, our parents, friends and classmates. Sumaira Patel (39) Vishal Narula (63) Akshay Dhuri (64) Swet Shah (65) Himanshu Shah (66) Abhinav Srivastava (68) Page | 3 1. MOTHER DAIRY – COMPANY OVERVIEW MOTHER DAIRY– At Glance Parent Company National Dairy Development Board (NDDB)
1.0 Introduction Ben & Jerry’s Ice Cream, founded in 1978 by two upstarts; Ben Cohen and Jerry Greenfield, is now one of the best homemade well known as a premium ice cream brands. It was firstly started in Burlington, Vermont which has a longer winter season as compared to summer season. It seemed as the worst idea ever to start an ice cream business in such a cold place. However, Ben and ...
Category Milk and Food Processing Sector Food and Beverages Tagline/ Slogan Piyo Pure Mission Mother Dairy’s heritage is intrinsically linked to the cooperative movement in India. With determination & pride we will continue to serve our farmers, rural India & our consumers. Our values reflect who we are & what we firmly believe in. Vision Provide quality food and beverages to consumers at affordable prices while ensuring fair returns to the producers. USP India’s very own producer of milk, milk products, beverages, foods, etc. at affordable rates and of premium quality Product Portfolio Popular Brands 1.
Mother Dairy Plain Dahi 2. Dhara 3. Safal Competition Competitors 1. Amul 2. Nestle 3. Britannia 4. Kissan 5. Heinz 6. Reliance Fresh Page | 4 1. 1 FORMATION OF MOTHER DAIRY NATIONAL DAIRY DEVELOPMENT BOARD (NDDB) The National Dairy Development Board (NDDB) was designed in 1969 on Anand Dairy Cooperative outlines of creating district cooperative of milk producers at village level which aim at collection of whatever amount of milk they produce and payment to them according to the quality of milk they supply. Then this milk is processed and supplied to the people at metropolitans and other cities at nominal charges.
For about 5 years, NDDB was dormant till the time they received presents of Whole Milk Powder and Butter Oil from European Union and came into action with the help of Indian Dairy cooperation. Operation flood was started in 1970 under the guidance of Dr. Kurein, Chairperson NDDB, Anand and Mr. Jamnadas Patel in Khera, Gujarat. The objectives of Operation Flood are: ? ? ? ? ? ? ? ? To buy the milk from the farmers and villagers as much milk as they could supply at reasonable prices and keep the price of milk stable whole year. To operate, procure, process and market milk and milk products.
sd 424 corporate identity system (CIS) Brand chosen: Trappist Dairy Background of Trappist Trappist Dairy LTD was founded in 1950 s in HK. Priests of the Tai Tsui Hang began to raise cows and then produced Trappist Dairy in Lanta u Island in 1960 s. Later, the Tai Tsui Hang stopped the production of milk. And the new factory moves to Yuen Long in the New Territories and keep on providing fresh ...
Production of good milk after its qualitative and quantitative estimation. System to eliminate middleman. Providing technical inputs and services to yield of milk animals. Organizing an efficient transport system to collect milk from villagers. Set up of balancing dairies and storage system to convert excess milk to milk powder and butter oil. Train personnel to plan and manage the system as well as operate the services described. To meet out these objectives, NDDB started dairy plants all over India and Mother Dairy was one of them. It was set up in 4 major cities at Delhi, Mumbai, Chennai and Kolkata.
Operation flood was a major dairy development program. Funds were generated by the sale of dairy commodities donated by the World Food Program (FAO-UN) which assisted project to carry out its mission. This included establishing dairy cooperatives in rural milk sheds, setting of animal husbandry units, constructing modern dairies in cities, organizing storage and long distance transportation and project planning with manpower development. The first phase of operation flood was completed in 1979, followed by second phase (1979-1988), assisted by European Economic Community. Its third phase ended in 1996. Page | 5 1.
2 MOTHER DAIRY PROFILE Mother Dairy was set up under the operation flood project on 2nd December, 1974. It is equipped with latest technology. Products are prepared as per the PFA standards. The dairy was established on behalf of the Govt. of India, Ministry of Agriculture (Dept. of Animal Husbandry and Daring).
Mother Dairy is being managed by NDDB as a subsidiary unit retaining its independent character. Mother Dairy markets approximately 3. 2 million litres of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy milk has a market share of 65% in the branded sector in Delhi where it sells 2.
5 million litres of milk daily and undertakes its marketing operations through around 1400 retail outlets and over 1000 exclusive outlets of Mother Dairy. 1. 3 PRODUCT RANGE OF MOTHER DAIRY Mother Dairy has a huge product range and these products have been marketed through retail network. ? ? ? ? ICE-CREAMS Safal (Select frozen vegetables) Jams, Ketch-up & Pickle Mango drink & other fruit juices ? ? ? ? Paneer Sterilized cream Butter milk (chhachh) Dhara Oil, etc Some of the new products launched recently are Misthi doi, Dahi, Flavored Milk, Lassi, Butter, Pure Ghee, UHT Milk, Dairy Whitner, Cheese etc.
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Page | 6 Details of Product Safal Products Juice – Orange, Orange-Apple, Mixed Fruits, Grape Pickles – Mixed Pickle, Mango Pickle, Red Chili Pickle, Lemon Pickle Jam – Pineapple, Mixed Fruits, Apple, Orange Marmalade Squash – Orange, Lemon Rice – Safal Gold Basmati Rice, Safal Silver Basmati Rice, Safal Premium Paramal Rice Safal Drink – Guava, Mango Nectra Tomato Products – Tomato Puree, Tomato Ketchup Dairy Products Butter, Ghee, UHT, Curd, Lassi, Flavored Milk 1. 4 ABOUT MOTHER DAIRY ICE-CREAMS In 1996 mother dairy came up with its ice-creams.
Mother Dairy ice creams are now being enjoyed across the markets of Delhi/NCR, Mumbai, Kolkata, Punjab, Rajasthan, Uttar Pradesh & Uttaranchal. Next year, it plans to go south to Hyderabad and Bangalore. With India’s per capita consumption of ice-cream – at 200 ml – being among the lowest in the world, opportunity for ice-cream marketers is abundant. And mother dairy is all geared up to take advantages of the opportunities ahead. Mother dairy has a huge variety of ice-creams in its portfolio, from impulse to take away to gallons. The range will be available at Mother Dairy booths, retail outlets and push carts.
In the ice cream business their major competitors are Amul, Kwality Wall’s, Cream bell and Vadilal. Among these Amul, Kwality Wall’s are giving neck to neck competition to mother dairy. But to stay ahead of the competition require special effort. Mother dairy ice-creams strategy of product differentiation is value created through quality of the offerings as well as innovations in products. And this is backed by a relevant marketing and promotion campaigns. At present company claims 65 per cent market share in the ice creams market in Delhi and the National Capital Region.
A harsh summer, a keenly contested battle, and a pampered consumer, it can’t get hotter than that for the ice cream industry Page | 7 Sundae Magic Coffee Excess and Shahi Meva Malai, these sundaes give you the chance to relish what even the Add a little magic to your day with Mother Dairy’s sensational range of sundaes. A liberal sprinkling of nuts accompanied by a thick layer of rich sauce makes these sundaes absolutely irresistible. Available in three exotic flavours – Jamaican Almond Fudge, Nawab of Awadh was deprived off. Kulfi This traditional Indian delicacy just got betterricher & creamier and with more variety.
There is always room for dessert and when it comes to sweets the first thing that pops into mind would be none other than ice cream. Chocolate, strawberry, vanilla, pistachio, the flavor goes on and on. Children and grown ups alike all scream for ice cream. The origin of this American dessert can be traced back from the 4th century B. C. When the Emperor Nero of the Roman Empire wanted to have a ...
Surrender to that all time favourite: Kesar Kulfi or enjoy the richness and abundance of nuts with Pista Kulfi. A royal treat for those with a taste for traditional delights. Cups A wide range of flavours to enjoy both at home and while on the move. Take your pick from avariety of flavours like Vanilla, Strawberry, Chocolate, Butterscotch, Choco Chip etc. Guara nteed to make all those family gatherings and outings extra special. Fruit Classics A unique range of premium ice creams in which carefully handpicked fruits blend with rich, creamy ice cream so that every spoonful that melts in your mouth has a natural taste of real fruit.
Indulge your senses in the mouth watering flavour of delicious fruit with an added excitement of real fruit pieces. What’s more, it comes in three delectable flavours Strawberry Crush, Mango Marvel and Litchi Surprise Page | 8 Bricks Take your favourite ice creams home. They are a 500 ml or 1 litre Brick. Choose from a mind boggling range of great flavours. The All time Favorite Vanilla, Strawberry, Butterscotch, Chocolate and Two in One. The Simply Irresistible Choco Chip, Kesar Pista, KajuKishmish and Kulfi Pista. The New Unique Choco Fudge, Badam
Thandai, Shahi Nazrana andFruit N Nut and Simply Coffee. A delicious for the entire family. Lic Lolleez An all time hit with the kids!! A refreshing and colourful range of ice candies and milk lollies-they are the perfect solution to the summer heat and add that extra zing to the winter chill. Try the new Chulbuli & Shararat Lic Lolleez to re-discover the naughtiness in you. Page | 9 2. MARKETING MIX (4 P’S OF MARKETING) PRODUCT PRODUCT VARIETY – A wide range of dairy ice creams and frozen desserts QUALITY – Ice cream rich in calcium and fresh every time
DESIGN – Includes chocolate bar, cups, candy, tubs and family pack PACKAGING – High quality and eye catching packaging. Packaging colours ranges from orange, blue, green, red yellow and purple. Packaging is colourful in order to attract children and youth SIZES – The paper packs are available in 500, 750, 1000, 1250 and 1500 ml and tubs are available at 1 ltr. SERVICE – Satisfying the dessert needs of the population in the best possible manner and delivering quality every time and offering a wide range of variety to choose from.
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
RETURNS – Only in the case of damaged ice creams PRICE Price varies for different ice creams depending upon the size and the form of the product For example a 115 ml tub is priced at Rs 30 and chocolate cones are priced at Rs 40 Price of its competitors is more or less similar. They have price points for different consumers from low cost stick bars to family packs. Overall they follow a penetrative pricing strategy. Page | 10 PLACE Channels- The products goes from the Mother dairy plant to a local area distributor, then from there to a retailer and finally to the consumer.
Coverage- First launched in 1996, Mother dairy ice creams were available only in Delhi and NCR region for the first few years. Then it expanded its reach in the north region, and 4 years ago it entered Mumbai. Now they aim to get a national coverage and with that in mind they entered south India. Location – Mother dairy delivers ice cream to retailers in company owned trucks. They also have Mother Dairy carts which sell directly to the customers. These carts are normally placed outside schools and colleges, so that they can directly reach out to their target group. PROMOTION
Advertising – vehicle advertising, outdoor billboards, point of sale displays and advertisements on television Message- The whole promotion links Ice cream with special moments of life which makes life real good. The campaign aims to lure the target audience for everyday indulgence with the regal, special taste of Mother Dairy ice-cream Page | 11 On ground Activation- Malls and Market are a place where huge crowd of people can approach at once and so Mother dairy goes to various malls to generate a lot of buzz for the Brand. Mother dairy also goes to various schools where it can get in touch with its target consumer directly.
Where they organize games, distribute various goodies and freebies and holds contests and promotions. There they also get accurate feedback of how their products are received by the children. It also sponsors many events like in the year 2012 it sponsored an event in Mumbai called UTSAV 2012 – a children’s moment for civic awareness. They were also associated with Channel [V] India fest in Pune in Symbiosis College Page | 12 3. SEGMENTATION, TARGETING AND POSITIONING (STP) 3. 1 SEGMENTATION Mother Dairy Ice Creams has segmented its customers on the basis of Pricing.
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Their Ice Cream price ranges from Rs5 – Rs 500. They have divided the market into 3 categories depending on pricing – Value, Mixed Price and Premium. Value: These are low cost stick bars, Kulfis and value added packs Mixed Price: Here we have the mid range products like the chocolate, butterscotch, vanilla cone and cup ice creams Premium: These are the products like the diet sugar free ice cream packs and exclusive flavour tubs like the Caramel Croquant , Blueberry Bliss , Sheer – E – Khaas etc Premium Mixed Price Value Page | 13 Value Products: Mixed Price : Premium : Page | 14 3. 2 TARGETING
Mother dairy ice creams launched in the year 1995 has shown continuous growth over the years and today has approximately 62 percent market share in Delhi and NCR. It introduces new flavours like O’blast, an orange based ice cream dessert to target the kids. It also has a brand chillz which targets the youth (15-25 year olds).
It also has range of ice creams particularly targeting the children like the lic lolleez, cool buddies. It targets this segment aggressively – it arranges a media blitzkrieg in summers and plans to increase the number of carts outside schools holds contests and promotions, offering goodies to them.
In the ice cream business, where Mother Dairy trails market leader Amul and Kwality Walls, its advertising and promotions budget will double to Rs10 crore. Amul, which is the market leader with 37% market share, spends Rs2. 5 crore on advertising. Kwality has an 8% market share and Mother Dairy has about 7%. 3. 2. 1 Targeting the Heath Conscious Consumers today have become very health conscious and are constantly evaluating among products to pick the healthiest option while making the purchase decision. Eyeing the healthconscious consumers, Mother Dairy has launched new low fat ice-cream ‘Dietz’ in mango and strawberry flavours. Page | 15
The milk fat content of the products is only 25 per cent of the content in regular ice-creams. Ice creams are considered to be a junk unhealthy food, this range is expected to change the way Indian consumers look at Ice creams. Now consumers can indulge in ice creams without worrying about the health. With the media and doctors in an overdrive to educate Indians on the efficacy of healthy foods, the market is expected to grow multifold. With the launch of healthy ice creams, Mother dairy is all set to ride the healthy foods wave. 3. 2. 2 Targeting the Youth Chillz range particularly targets the younger generation of 15-25 years old.
Chillz range includes delightful cups, creamy tubs, drooling chocolate bars and delicious cones. They have vibrant, colourful and attractive packaging. This range gives a youthful perception to the brand and increases the cool quotient of the brand. This range of ice creams has helped Mother dairy to position itself quite well in the minds of its target consumer. Page | 16 3. 2. 3 Targeting the Children Lic lolleez, a popular mother dairy brand are a big hit with children. Lic lolleez are available in many different exciting flavours like mango, cola, orange and gol gappa.
To encourage parents to purchase them, Lic loleez are now available with a healthy dose of vitamin C. The company claims that a single Lic lolly bar meets 20% of body’s daily Vitamin C requirement. Page | 17 3. 3 POSITIONING In marketing terms there is no such thing as a product or service that exists by itself in space, independent of consumer. For a product to exist it must find a place in an individual consumer’s perception of the world of products around him or her. And this perception is subjective, governed by the individual consumer’s values, beliefs, needs, experiences and environment.
This is the core thought behind brand positioning – the idea that each brand(if at all noticed) occupies a particular point or space in the individual consumer’s mind, a point that is determined by that consumers perception of the brand in question and in its relation to other brands. 3. 3. 1 Positioning of mother dairy ice creams Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The cooperative is also expanding its product portfolio further to match rival offerings – particularly those of Amul. For the first 22 years of its existence, liquid milk was the only dairy product that
Mother Dairy offered. It was in 1996 that it came up with ice-creams. Mother Dairy has positioned itself in the market with the promise of the “Real Good’ factor. The brand assures the delivery of real goodness of milk, fruits, nuts and other ingredients. Mother dairy uses natural ingredients and delivers high product quality. New flavours are periodically introduced in the market. Page | 18 3. 3. 2 Determining a Competitive Frame Of Reference Choosing the most advantageous competitive frame of reference is a very important part of brand positioning.
It defines which other brands the brand competes with and therefore which brands should be the focus of competitive analysis. The ice creams market was an emerging market in India, witnessing the entry of numerous players. The national scene was dominated by Hindustan Lever with its Kwality and Walls brands, accounting for about 45 percent of the market. GCMMF was the other national player, with about 30 percent of the market. There were, in addition, very powerful regional players such as Vadilal Ice Creams in the Western India who commanded substantial (in excess of 30 percent) of the regional market shares.
Ice creams were largely promoted through local promotions, hoardings (billboards) and advertisements. 3. 3. 3 Channel Differentiation Mother dairy has partnered with DELIVERY ON CALL to provide home delivery of its products in Noida. Mother Dairy has booths all over Delhi-NCR, but the value proposition that Delivery on Call is pitching is that those at the booth don’t deliver products to consumers – consumers typically have to go and buy products from Mother Dairy. Delivery on Call aims to provide the direct to home channel for Mother Dairy’s products.
People can sit at home and order from home instead of visiting the booths. 3. 3. 4 Product Differentiation While Mother Dairy still may not have a product portfolio as large as Amul, which is also expanding across the country in a big way and is a much bigger player, it’s doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those markets which mean bigger market shares in the different product categories in whichever market it is present. The drivers will be value created through quality of the offerings as well as innovations in products.
This will, of course, be backed by relevant marketing and promotion campaigns. Mother Dairy is bringing in mass Indian flavours which are building up in terms of absolute percentage of contribution. Their attempt is to make the taste experience in ice creams as familiar as possible so as to increase consumption. Take the case of curd. It started off very slow but today, Mother Dairy claims it’s growing at close to 60 per cent year-on-year in Delhi. Here again, the Indian flavour formula seems to have worked.
If the offering fits well with the Indian consumer, the resistance is lower and acceptance more. Even in ice creams, Mother dairy has launched many Indian flavours specially for the Indian taste buds like shahi meva malai which is a mix of kheer and basundi flavour of ice cream, thandai flavour, rasmalai flavour and golgappa flavoured ice candy. Page | 19 3. 3. 5 Value Proposition Made from rich, creamy milk and superior ingredients, Mother dairy ice creams guarantee a delectable taste experience and are made of milk fats as opposed to frozen desserts. 3. 3. 6 Brand narratives and storytelling
Nowadays, more and more companies are positioning their brands with compelling brand narratives, and so has Mother dairy. Mother dairy aims to become a “lovemark”. “Lovemarks” are brands that have evolved from a place in the market to the heart of a culture. With the power of love they create life-long emotional connections. With the help of a nationwide multi media campaign Mother dairy wants to make the consumer fall in love with the brand and build an emotional relationship with her. Mother dairy ice creams launched advertisements along these guidelines with the tagline “Life is Real Good”.
The ad is a montage of real situations with which one can correlate to. Another ad revolves around a couple in a plush living room enjoying Mother Dairy’s Classics. The film captures the romance between the product and the couple. These ads try to position the brand in the mind of the consumer. Mother dairy has been successful in creating an emotional connects with its ‘Maa Jaisi Koi Nahi’ campaign. The dairy brand emphasizes how children take their mother’s love for granted. The brand reminds kids of what mothers go through just to keep them happy, without ever expecting anything in return.
It reiterates that the least the children can do in return is to drink a glass of milk today, so that tomorrow when they grow up they can take care of their mothers. The campaign glorified a mother’s love and thus created a direct connect with the importance of ‘the’ woman of the house. Mother Dairy invited consumers to design the new pack for its milk to increase engagement with the brand. This helped the brand team and the creative team immensely to understand from the consumer what they think of our brand. 3. 3. 7 Proposed Strategy of the Brand
Consumers must understand what the brand stands for, but Mother dairy Ice creams has failed in doing this. The idea does not come out very clearly in the advertisements. However people will have a craving for eating ice cream after watching the ad but why should one prefer Mother dairy instead of Amul or Kwality walls ??. There is no reason for the consumer to prefer Mother dairy over its competitors. Mother dairy ice creams do not have any strong point of difference which can differentiate it from its competitors.
Point of difference are attributes or benefits that consumers strongly associate with the brand. Mother dairy needs to have a very clear Brand Mantra or what we call core brand essence. Page | 20 4. MOTHER DAIRY ICE CREAM – BRANDING STRATEGY Branding Mother Diary™ is recognized brand due to its presence and share in the market. It has wide variety of products milk, dairy products, fruits, vegetables, beverages, frozen food, and icecreams. Mother Dairy Ice-creams Mother Dairy decided to leverage a new brand with existing brand name i. e. they started new sub- brand as Mother Dairy™ Ice-Cream.
The company started marketing ice cream sector with having company’s name as the brand. After developing and gaining some market share the company started segmenting their target market. According to the target market the company came out with different brand which will associate with the respected markets. The segmentation of the market was mostly done on the basis of age group first children, second youth generations and third above them. To attract this market the company came out with brand name that will be associated with this age group and sense of belongingness will be generated.
Brands Lic Lolleez The target market for this brand is children. The brand name itself promotes the products i. e. lolleez (candy bar) which are famous among children. As the target market is children, the buyers for the products are mostly their parents so they branded Lic Lolleez with goodness of “Vitamin C”. Chillz The target market for this brand is youth generation or teenagers. The Chillz range reinforces the hip and youthful imagery of the brand and also drives in the point that Chillz ice creams are an integral part of fun activities that youth indulge in.
“Summer time its Chillz time” tag line associated with Chillz. Classics The target market for this brand is group of people, family or friends. The Classics are further differentiated into three groups Fruit, Indian, and Western. The positioning of the Classics is done by ingredient, in Fruit Classics – 100% natural flavour ice cream with real fruit pieces, in Indian Classics – Traditional Indian flavours with Premium nuts, and in Western Classics – Exotic and western flavours of international standards. Page | 21 Dietz Dietz is a sugar free ice cream brand.
As a sugar free the target market for the brand is diet conscious and a health issue person. The milk fat in Dietz is 75% less than usual ice cream and low on calorie. The brand intends to delight the health conscious consumer by providing them a hard to refuse option that does not compromise on taste and experience normally associated with regular ice cream. Branding Strategy Even after launching these brands company decides to brand their product in Corporate Umbrella or Company brand name, to distinguish from competitors the company uses its own name Mother Dairy™ Ice-cream.
Page | 22 5. MOTHER DAIRY ICE CREAM- PRICING STRATEGY There are several pricing strategies that a business can use: Cost based pricing this can either simply cover costs or include an element of profit. It focuses on the product and does not take account of consumers Penetration price an initial low price to ensure that there is a high volume of purchases and market share is quickly won. This strategy encourages consumers to develop a habit of buying Price skimming an initial high price for a unique product encouraging those who want to be ‘first to buy’ to pay a premium price.
This strategy helps a business to gain maximum revenue before a competitor” product reaches the market. The pricing strategy used by Mother Dairy is the second one, which encouraged the consumers to develop a habit of buying. Clientele The price of your ice cream gives your customers information about how you see your product and what type of target market you expect to buy your offerings. In the case of Mother Dairy, more than 96 percent of the total sample used in survey found the price nominal or in par with the competitors offering the similar products. The Market
An ice cream pricing strategy should be based not only on the demand and typical pricing for the type of ice cream being offered, but also on market conditions in general. Mother Dairy positioned its ice cream as an everyday treat and not as an artisan luxury as this is evident from the product offering which is in the middle range or “just right” buy. The strategy they used is Value Pricing which bridges the gap between the economic and luxury as they sell through ice cream carts and low end ice cream shops rather than high end shops. Page | 23 6. MOTHER DAIRY ICE CREAM – DISTRIBUTION & RETAILING STRATEGY Distribution Network
Mother Dairy Plant LAD Retailer Consumer *LAD is Local Area Distributor The packaged milk is distributed via the distributor network throughout the city. Mother Dairy follows a typical FMCG distribution model to reach to the consumers for its ice creams. They have extended the brand reach and depth to stimulate consumption using traditional retail, their own vending carts, own exclusive booths and kiosks in high throughput locations etc. This year they have also invested disproportionately on asset placement both in retail and vending to drive growth across all geographies and reach out to a larger chunk of consumers.
Page | 24 Carry and Forwarding Agent The above mentioned distribution channel and retail channel is same in the area which is in close vicinity of the plant area, For E. g. The Mother Dairy plant in NCR is responsible for the coverage in Delhi, Faridabad, Gurgaon, Ghaziabad, Rohtak, Meerut etc. But when plants are very far located from some regions, one more level of distribution comes into the scene which is in between plant and the LAD and is known as CNF Agent. Mother Dairy Plant CNF Agent LAD Retailer Consumer Page | 25
CNF Agents are generally contracted agents of Mother Dairy where the ownership of the products still belongs to the mother dairy. These CNF Agents are responsible for the transportation of the products from plant to the storage facility, storing it for the time till the LAD or retailer asks for the product and transportation of product from storage facility to LAD or retailer. These CNF agents charge around 2% of the total product rice. E. g. The Mother Dairy plant in NCR is responsible for the supply in Western Uttar Pradesh region where they have around 6 CNF agents.
Now these 6 CNF Agents are responsible for the distribution of ice cream from plant to LAD’s in UP. Modern Trade & Ice Cream in India Modern trade consists of hypermarkets and supermarkets that retail FMCG. But ice cream in India is never considered as an item under the basket of bulk purchases. This is the reason that ice cream companies choose locations in the residential localities where people decides to buy the ice cream after seeing a counter or a mobile unit/kart. Retailing of the ice cream through mobile units is the best channel when it comes to Mother Dairy.
In my personal chat with one of the Area Sales Manager of Mother Dairy ice cream (who looks after the sales in Cannaught Place and India Gate region in Delhi) I was told a very interesting fact that CP and India Gate are highest selling point for ice creams in India. Now on my further drill I found that Mother Dairy has only one retail store at India gate and has around 150 mobile units and this is the reason that they are the leader in selling ice cream at these two points where they take 85-90% of the total sales as they are saving rents and outlets maintenance cost which their competitors can’t avoid.
Recent Major Development Keeping in mind the benefit of the direct selling, in NCR region they have partnered with the Noida based E-Commerce Company ‘Delivery on Call’. Mother Dairy has booths all over Delhi-NCR, but the value proposition that Delivery on Call is pitching is that those at the booth don’t deliver products to consumers – consumers typically have to go and buy products from Mother Dairy. Delivery on Call aims to provide the direct to home channel for Mother Dairy’s products. People can sit at home and order from home instead of visiting the retail stores.
Page | 26 7. MOTHER DAIRY ICE CREAM – ADVERTISING STRATEGY TVC To tap its target audience Mother Dairy came out with TVC, one TVC for each sub-brand and one showcasing its range of ice-cream where all the four sub-brands are shown and the TVC rides on the thought that “Life is Real Good”. The TVC capturing all the sub-brands is tagged as Range, it captures real slice of life situation and brings Mother Dairy alive through these moments. It’s a montage of real situations which one can correlate with; cateri