Sip Amul Ranchi by Abhishek & Vipul (Cimp)

A REPORT ON
POTENTIAL OF AMUL POUCH MILK IN RANCHI, JAMSHEDPUR & DHANBAD
A REPORT
SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENT OF PGDBA DEGREE PROGRAMME
SUBMITTED TO:
MR. MANOJ PRABHAKAR
ASST. SALES MANAGER
RANCHI DEPOT, JHARKHAND
SUBMITTED BY:
ABHISHEK KUMAR (PGDBA/01/02)
VIPUL KUMAR (PGDBA/01/49)
CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA

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June 12, 2008
CERTIFICATE OF APPROVAL
Recommended that the project entitled “Market potential & launching strategy of AMUL Pouch
milk in Ranchi, Jamshedpur & Dhanbad” is prepared by Mr. Abhishek Kumar, Enrollment no
PGDBA/01/02 and Mr. Vipul Kumar, Enrollment no PGDBA/01/49, under my supervision and
guidance is accepted as fulfilling, this part of the requirement for the summer internship
program at GCMMF Ltd, Ranchi.
To best of my knowledge, the content of this report did not form a basis of any previous report
by anyone else. This is a completely bonafide work.
The persons are fit and proper for the award of successful completion of the summer internship
program.
Mr. Manoj Prabhakar
Asst. Sales Manager, GCMMF Ltd.
Ranchi Depot, Jharkhand
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COVER LETTER
To
Mr. Manoj Prabhakar
Asst. Manager (Sales)
Ranchi depot, Jharkhand
Sub: - Submission of marketing research report on Potential of AMUL Pouch Milk.
Dear Sir,
With great zeal and satisfaction we would like to present you the much awaited report on
Potential of AMUL pouch milk in Ranchi, Jamshedpur & Dhanbad and launching strategy for
AMUL pouch milk in all the above mentioned cities of Jharkhand.
We thank you for giving us an opportunity to conduct a research on such a challenging and
relevant topic as it is related with the changing pulse of Indian milk consumer behavior
provided us valuable marketing insights. In fact, while conducting the survey we came across
some very interesting facts about consumer inclination towards different brands of milk in
different cities.
We hope this report will enable you to formulate a winning strategy in these competitive
markets and will provide you a sustainable competitive edge.
Thanking You
Best Regards
Abhishek Kumar
Vipul Kumar
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ACKNOWLEDGEMENT
First and foremost we are greatly indebted to our guide Mr. Manoj Prabhakar, Asst. sales
manager, GCMMF Ltd, Ranchi Depot for taking time to guide us and supervise the project.
Mr. Manoj Prabhakar always acted as a source of inspiration, motivation and encouragement.
His invaluable guidance, supervision, and continuous support have steered our project to the
present stage of completion.
We are highly indebted to Mr. Santosh Kumar and Mr. Pushti for providing many valuable
prospective of the project thereby opening many new vistas which made the project to be
complete reflection of the work done by us. We are also indebted to Mr. Abhishek Kumar and
Mr. Sumojit Das who have found time from their busy schedule and shared the load of work
and helped us out to perform well in activities.
We would like to thank many of the anonymous officials of GCMMF limited, friends, batch
mates and research respondents who have always provided critical comments, and insightful
observations.
We would also like to extend our gratitude towards Mr. Shivendra Singh, Marketing manager,
Jamshedpur Dairy for sharing his market insights and strategies which helped us to understand
the efficacies of Milk marketing.
We would also like to extend our Special thanks to Dr. V Mukunda Das, Director CIMP and the
entire faculty member of Chandragupt institute of management Patna for their guidance and
invaluable suggestions which we have gratefully incorporated in our project.
Abhishek Kumar (PGDBA/01/02)
Vipul Kumar (PGDBA/01/49)
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EXECUTIVE SUMMARY
Prevalent traditional dairy farming system in Jharkhand has made milk supply in the state to
mainly depend up on the neighboring states and traditional milkmen. The demand for pouch
milk is growing with increase in awareness among the consumers in the state. There are many
players who supply pouch milk in the state. It includes Sudha (market leader with presence in
all three markets) and other local players like Nand, Shyam, and Medha etc. All of them fulfill
the demand either through procuring milk from neighboring states or through SMP.
Sudha has got a very strong brand name and distribution system in the state. It has got a very
high proportion of packaged milk market share; one of the major reasons for it is the absence
of any strong competitor in the market. Sudha is a state co – operative and had the support of
state government in unified Bihar which has helped them establish a strong chain of whole day
milk parlors across the state.
Consumer demand for pouch milk exceeds the supply in all three cities. Packaged milk of all the
brands get sold on same retail price despite being hugely different in quality. There is
continuous irregularity in milk supply and quality of milk keeps varying across the year. There
are instances in the past years when only one variant (TM) was available in the market and
customers were compelled to consume whatever was available in the market. It shows a
market void exists for a player which can consistent supply good quality milk and there would
be wide consumer acceptability if a trusted brand like Amul enters into the competition.
Amul should focus on generating market awareness through pre launching as well as post
launching promotional campaigns. Providing better visibility to its retail outlets will provide
Amul a definite edge over other competitors. Amul should also provide free testing facility at
retail outlets to gain the consumer trust; strong brand image will also help Amul in gaining
consumer trust.
Continuous supply of good quality milk at reasonable prices is the customer need and Amul will
achieve significant market share in short span of time if it can fulfill the needs of the milk
consumers.
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Table of Contents
SN CONTENTS PAGE NO
1 Certificate of Approval 3
2 Acknowledgements 4
3 Cover Letter 5
4 Introduction 11
5 Background 12
5.1 Scope of the Study 13
5.2 Research Objectives 13
5.3 Methodology of the Research 14
6 Overview of Jharkhand 16
6.1 Jamshedpur 16
6.2 Ranchi 18
6.3 Dhanbad 20
7 Market Overview 21
8 Competitor Analysis 23
9 Profile of Major Players 26
9.1 Sudha Jamshedpur Plant 26
9.2 Nand 29
9.3 Shyam 31
9.4 Amrit 32
9.5 Dairy fresh 33
9.6 Sudha Bokaro plant 34
9.7 Medha 36
9.8 Radha 37
9.9 Amul 37
9.10 Sudha Ranchi plant 38
9.11 Loose Milk market 39
9.12 SWOT Analysis of Sudha 42
9.13 SWOT Analysis of AMUL 43
9.14 Target segment of major players 44
10 Market Potential In cities 45
11 Results of market survey 49
11.1 Factor analysis 58
11.2 Insights of Market Survey 60
12 Launch Strategy of Amul Pouch Milk 61
12.1 Product Variants 63
12.2 The Process Chart 63
12.3 Launch Targets 64
12.4 Distribution diagram 66
12.5 Zone division 67
12.6 Price mechanism 67
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12.7 Logistics 67
12.8 Sales and Trade Promotion 69
13 Limitations of the Study 71
14 Annexure-1 72
14.1 Final Questionnaire for Consumer Survey 72
14.2 Final Questionnaire for Retailer Survey 75
15 Annexure-2 78
15.1 Sales figure of Sudha 78
15.2 Milk market in major cities 78
15.3 Details of distributors 78
15.4 Brief summary of three markets 79
16 References 80
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List of Tables
SN CONTENTS PAGE NO
1 Major players and their available variants 23
2 Major players and their market presence 24
3 Margin Structure of Sudha 28
4 Margin Structure of Nand 30
5 Margin Structure of Amrit 32
6 Margin Structure of Dairy Fresh 33
7 Margin Structure of Medha 36
8 Margin Structure of Radha 37
9 Margin Structure of Amul 37
10 Target segment of each player 44
11 Market potential of Ranchi 46
12 Market potential of Jamshedpur 47
13 Market potential of Dhanbad 46
14 Size of opportunity 48
15 Product variants, pack sizes and launching time 62
16 Proposed Price Structure of Amul 66
17 Budget for launching 69
18 Sales and trade promotion budget 70
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List of Charts
SN CONTENTS PAGE NO
1 Occupational break up of Ranchi 19
2 Occupational break up of Jamshedpur 17
3 Occupational break up of Dhanbad 21
4 Market share of players in Jamshedpur 34
5 Market share of players in Dhanbad 38
6 Market share of players in Ranchi 39
7 Average family sizes in cities 49
8 Age group distribution in Ranchi 50
9 Age group distribution in Jamshedpur 51
10 Age group distribution in Dhanbad 51
11 Purchasing preference of consumers 52
12 Timing of milk purchase 53
13 Variant preference in three cities 54
14 Factors affecting milk purchasing decision 55
15 Factors of pouch milk purchase 57
16 Proposed distribution diagram 65
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List of Maps
SN CONTENTS PAGE NO
1 Map of Jamshedpur 16
2 Map of Ranchi 18
3 Map of Dhanbad 20
4 Map of Jharkhand 67
LIST OF ABBREVIATION
I. WM- Whole MILK

II. SM – Standard Milk
III. TM- Tonned Milk
IV. DTM- Double tonned Milk
V. APO- Authorized parlour outlet
VI. ADA- Authorized Distributing agent
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4. INTRODUCTION
Milk is a unique marketing product due to its very perishable nature, unique sales timing, need
of a very strong distribution network and its sensitive usability. It is a complete food and due to
its high nutritional value is consumed by people of all ages and especially children. Milk is highly
attached with Indian’s emotional and religious values and cow is given equivalent status to
mother just because it provides milk to human beings. Milk is provided to children in place of
mother’s milk .So, it’s clear that people’s perception about the quality of a specific brand of
milk becomes a very influential factor in the sales ability of the brand. This uniqueness of an
unquantifiable influence of people’s perception of brand and quality on the sales makes milk
marketing a real challenging marketing job.
Milk is a hand to mouth product and a significant proportion of it is consumed directly in the
households. Other consumption forms like tea, coffee, curd etc. are also almost direct
consumption forms. So, people remain very sensitive about the purity of the milk they are
consuming.
Consumers, in general, quantify the quality of a product by looking, touching, tasting and
smelling it. Milk being a liquid and whitish in colour has high chances of getting adulterated.
There are high chances of milk getting germ infected. Moreover, there are differences in taste
and smell in the milk available in the market. All these factors combined make milk a product
for which quality and purity of the milk consumed is mostly dependent on the trust on the
supplier.
Other than people’s perception of quality of a brand, availability is the second most important
factor in marketing of a particular milk brand. As milk is more a commodity than a product,
there are not many differentiating factors between different brands and switching cost is really
low for consumers and therefore, brand loyalty is really very less. So, the logistic setup
supporting the milk marketing operations has to be in place and any delay in the system would
lead the consumers to shift to an alternate brand which guarantees regular supply.
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Milk market at every place has its own dynamics and traits, which are closely related to
demographic profile, cultural outlook and habits of the people staying there. So, the success of
a particular milk brand in a specific region will depend upon the fact that how specifically it
understands the demands of the specific markets and cater to it.
5. BACKGROUND
Milk being a commodity of daily necessaries has its own peculiarities and dynamics. It’s a
commodity which is needed to be supplied daily at correct time and place. Sudha has been the
major supplier of milk in Jharkhand for the last 30 years and created consumer awareness
about pouch milk in different milk markets of Jharkhand. Even today, Sudha is the sole flag
bearer of quality pouch milk in Jharkhand with rest of open space filled by local players
Formation of Jharkhand as a separate state and increase in consumer awareness has made it
the next big marketing destination of an organisation like AMUL for its pouch milk. Amul has
already touched this market segment as the tetra packs of AMUL milk is already available in the
market but it recognises the fact that the target segment of tetra packs are different from
target segment of pouch milk at least for the near future. Now, Amul wants to find out that is
there sufficient marketing opportunities in the milk markets of Jharkhand and if available, what
could be the proper launching and marketing strategy which can touch the consumer base and
can cater to the maximum consumer base.
5.1 SCOPE OF THE STUDY
The study is aimed at determining the market potential of major milk markets of Jharkhand. An
analysis of major competitor’s marketing strategies will be done to properly design an efficient
launching strategy for AMUL pouch milk. The study is confined to the geographical limits of
Ranchi, Jamshedpur, Dhanbad and Bokaro. The study will focus on analyzing competitor’s
strengths and weaknesses alongside identifying unfulfilled needs and wants of consumers.
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5.2 RESEARCH OBJECTIVES
The major research objectives of the study can be underlined as below:
1) To estimate the total demand of liquid milk in Ranchi, Jamshedpur and Dhanbad
markets.
2) To find out market shares of major players of these markets and their marketing
strategy.
3) To understand the distribution networks of the major competitors and find out
bottlenecks in their process.
4) To understand the consumer’s preference for the various categories of the liquid milk
(Whole milk, standardized milk, toned milk, double toned milk).
5) To understand the consumers perception about pouch milk in respect of loose milk.
6) To weigh the brand image of AMUL in the cities under study.
7) To design a proper launching strategy for AMUL pouch milk in these markets.
5.3 METODOLOGY OF THE RESEARCH
EXPLORATORY RESEARCH:
In order to get an overview of fresh milk market and its dynamics, preliminary research has
been carried out in the markets of Ranchi. In broad terms, our methodology focused on
understanding the market both on macro and micro level. The preliminary exercise included
interviews with distributors and retailers of loose milk as well as those of present competitors.
A number of consumer interviews were also conducted. This helped us in understanding the
existing market scenario and further it also helped in estimating the demand of the surveyed
area. Keeping this knowledge as perspective, we designed questionnaire for the micro level
research. This questionnaire was pre tested on 20 consumers on whose feedback and
suggestions final questionnaire was designed.
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SOURCES OF DATA:
As part of the study, both primary and secondary data were collected of qualitative and
quantitative in nature.
Primary sources:
For primary data collection we depended upon the questionnaire survey of household
consumers, retailers, distributors, the tea vendors and restaurants.
Secondary Sources of data:
Secondary data was collected from various sources to understand the demographic and
geographic context of the places under study. It also helped in collecting information regarding
competitor’s sales figures, plant capacity, mode of operation etc. Information was also
collected from census, other national surveys and newspapers.
SAMPLING TECHNIQUE
Cluster sampling was used for conducting survey of the target population. The target
population consists of the households, distributors, retailers, the tea vendors and restaurant
owners.
A sample of 100 people in case of house hold consumers, 60 retailers, 40 tea vendors and 20
restaurant owners in each milk market of Ranchi, Jamshedpur, Dhanbad and Bokaro was taken
for the purpose of survey.
After selecting an area as model region for the survey, non probabilistic random sampling was
used as the method of sampling for the survey.
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6. OVERVIEW OF JHARKHAND
Jharkhand is a state which is rich in mineral resources. It provided certain industries an

incentive to set up their plants in the state resulting in some areas of Jharkhand evolved as
highly industrialized. Industrialization of some parts of the state has resulted in higher per
capita income, higher literacy rate and higher consumer expectation in those parts. Other areas
are mostly consisting of people from lower or lower middle income group. Like any other state
of India, majority of population are dependent on agriculture. Total population is a cultural mix
of native tribal people which consist of approximately 30 % of the total population and rest is
people largely from Bihar, Orissa and west Bengal.
6.1 JAMSHEDPUR
The Steel City, Jamshedpur is one of the industrially and economically prosperous cities of
Jharkhand. The geographical area of the city and its surroundings is about 100 Sq. Km. The city
is well connected with other major cities of neighboring states through road and railways. It is
around 130 Km away from the State capital Ranchi and 130 Km away from Dhanbad. It is 250
Km away from Kolkata by road and have regular connectivity through rail with the city. It takes
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around 5 hours through rail route and around 7 hours by road (NH-33). There is a regular
movement of Products of TATA STEEL and TATA MOTORS on these road and rail routes.
Earlier Jamshedpur was a part of Singhbhum district. But after the rescheduling of district area
was done by the Jharkhand Government, Singhbhum has been divided into 3 districts. These
are East Singhbhum (District HQ - Jamshedpur), West Singhbhum (District HQ - Chaibasa) and
Saraikela – Rajkharsuan (District HQ - Saraikela). There are 4 major urban areas in Jamshedpur
which are Jamshedpur City (NAC), Jugsalai (Municipality), Mango (NAC) and Adityapur
(Municipality). Jamshedpur is 65 Km away from Chaibasa and 50 Km away from Saraikela.
The majority of the families (Almost 65%) residing in Jamshedpur are employees of TATA and its
7-8 subsidiary companies. There are around 1.5 Lac employees working in these companies. It
gives major boost to the economy of Jamshedpur as the people here have sufficient purchasing
power. Majority of people involved in service sector is one of the reasons of city being more
urbanized than other cities of Jharkhand.
The major residential and market areas of Jamshedpur are Mango, Burmamines, Bistupur,
Baridih, TELCO, Sidhgoda, Sonari, Kalka Nagar and Kadma
Out of the total population a major portion of the population are Bengalis. The major Bengali
residential areas are Kadma, Sonari, Parsudih, Sidhgoda, Baridih and TELCO. Similarly, major
Sikh residential areas are Burmamines, Refugee Colony, Sakchi, Bistupur and Cable Town.
OCCUPATIONAL BREAK UP OF JAMSHEDPUR
65%
TATA
OTHER PRIVATE COMPANIES
10% 15%
10% GOVERNMENT
BUSINESS
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6.2 RANCHI
Ranchi is a city of falls and lakes and is the administrative and educational hub of the state and
students from neighboring states also come here to study due to excellent educational
environment and climatic conditions. The city area is spread in a radius of 15 km, Ranchi Lake as
the centre. The total urban population is around 10.5 lacs which mainly consist of service class
people, businessmen, organized and unorganized labourers.
Muslims, Bengalis and Sikhs are majority of the population. Major Muslim areas are Hindpidi,
Azad basti, Dhurwa and Doranda. Major Bengali colonies are burdwan compound and Netaji
Nagar. Similiarly, Sikh families are majorly in P.P. compound and Ratu road.
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OCCUPATIONAL BREAK UP OF RANCHI
30% 25% GOVERNMENT SERVICE

PUBLIC SECOTR
15% 12% PRIVATE SECTOR (ORGANIZED)

18% PRIVATE SECTOR (UNORGANIZED)
BUSINESS
As the occupational break up shows that the city is home for all kind of workers and service
class people which provide city the required purchasing power. The city is the centre point of all
kind of economical and political activities in the state. Due to this reason there is a large
number of people who come to the city for occupational reasons.
The city is well connected to Orissa, Bihar and West Bengal through road and rail network.
NH -33 passes through the heart of the city and joins it to West Bengal. Ranchi – Jamshedpur
road is a very high traffic zone due to all kind of economical activities as both cities are highly
industrialized.
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6.3 DHANBAD
Dhanbad city is strategically located with reference to Kolkata, Patna and Ranchi. The location
of the city has helped in establishment of industrial units manufacturing consumer goods,
engineering and plastic products. Haldia, the nearest port, is well connected with Dhanbad
through road and rail. Dhanbad and the surrounding towns are source of employment and
serve the entire region in terms of social and economic facilities. The city has abundant
mineral resources and is one of highest coal producing place in India. At present there are 112
coal mines operating in the district which totally produce 26.7MT of coal annually (total value
of Rs.7000 million). The coal production is expected to increase to 50MT in the next 10 years.
Given its resource base, the potential for growth in mining and mineral based industries is
immense and with the support of the State Government industrial activity is expected to
expand. It is estimated that the about 1.5 lac jobs are likely to be generated during the next ten
years. Mining and mineral activities continue to be major areas of focus. Chemical based
industries, Engineering and auto components, Power generation, Iron and steel, and steel
based industries are other sectors gaining importance.
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Majority of population is dependent on the coal resources of Dhanbad and most of the people
are related with coal mining in one way or the other. Other significant proportion is engaged in
different businesses while usual service class people engaged in govt. service also reside in the
town. Major residential areas are Baghmara, Govindpur, Jharia, Nirsa, Tundi, Topchachi and
Hirapur. Majority of population are Muslims and Hindus.
OCCUPATIONAL BREAK UP OF DHANBAD
55%
GOVERNMENT SERVICE
10% BCCL/ COAL MINES

20%
PRIVATE SECTOR
15%
BUSINESS
7.1 MARKET OVERVIEW
Jharkhand is a milk deficit state. Traditionally, direct milk consumption is not in the
consumption culture of its native residents and the major demand of milk was generated by
people who have come from other neighboring states and settled here. So, milk production in
the state is negligible and the demand of milk in the state is traditionally served by procuring
milk from Bihar.
Ranchi, the capital city of the state is a growing market. Ranchi city is having total population
around 10.5 lacs and total household around 2.15 lacs. It is the second biggest milk market in
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state and due to rapid urbanization with 33% decadal population growth it is expanding and
developing more in its periphery. This provides a great opportunity to cater to this market.
Though the surrounding of city has thick green vegetation, favorable climatic condition and
sufficient manpower for animal husbandry but due to poor animal breed and improper training
of farmers, entire adjoining area is milk deficient.
Ranchi being capital of Jharkhand, is a hub of offices, both government and private. This has
resulted in a greater population being in the service class, which has considerably increased the
literacy rate of the city. Keeping this fact in mind, it is comparatively easier to generate
awareness about the hygiene and adulteration issue associated with the loose milk and it is
vindicated by the increasing number of household which are shifting to the pouch milk. This
fact is strengthened by the sales growth figures of market leader Sudha (Annexure-II).
Jamshedpur is a mature market in terms of the awareness of pouch milk. This can be seen that
here the pouch milk market is more than the loose milk market by a considerable high margin.
A major reason again is that Jamshedpur is a city of service class people who are employees of
TATA. By these statistics, it is understandable that the people in the city are well aware about
the loose milk and the related hygiene issues and have shifted to the pouch milk.
Dhanbad is more backward in comparison of other two cities in respect of awareness about
pouch milk and quality related issues. That is why; loose milk has a significant high market share
of existing market share. Local players have a more prominent presence in the market which
leads to the perception that people here are indifferent about the quality served by the pouch
milk suppliers.
Overall, Sudha is the market leader in all the three markets and it decides the rules of the game
in these markets. It has toughest of regulations among the players and provides the lowest
margins. Even after distribution inefficiencies the distributors and retailers are compelled to
stick with it. A major reason for it is the absence of a big player like AMUL which can challenge
Sudha in quality and distribution.
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8. COMPETITOR ANALYSIS
The competitor analysis will be done under 4P framework. A comparison of plant capacities
with existing sales of major market players will be done. Their distribution strategy along with
their respective strengths and weaknesses will be done.
PRODUCTS:
Products variants are same throughout different pouch milk suppliers. All major players like
Sudha, Nand, and Shyam etc. are supplying same variants of milk. There is no major difference
in variants across the different players in the market, though some players are providing only a
specific variant of milk.
Major sales are of standardized and toned milk. Whole milk and double toned milk are not
made available by any of the major players. Reason according to the players is non – demand of
these variants. Interestingly, none of the players have done a focused promotion in the past to
induce demand for these variants nor they have any promotional strategy for promoting these
variants in the near future.
WM (fat -6%) SM (fat-4.5%) TM (fat-3%) DTM (fat-1.5%)

SUDHA -   -
NAND -   -
DAIRY FRESH -   -
SHYAM -   -
MEDHA -   -
AMRIT -  - -
RADHA -  - -
Table: Major players and their available variants.
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PLACE:
Sudha certainly has the competitive advantage of being a local player. It has its brand presence
in all the major markets and it is the most dominant player in all the markets which gives it the
advantage of a much stronger brand image. So, it captures the major chunk of new customers
who shift their preference from loose milk to pouch milk.
Sudha is the only player which has got its exclusive retail outlets among all the players which
provides it a better visibility among all the players. Being a state co-operative it had the support
of the former state govt. of Bihar but now the scenario has changed as Jharkhand has become a
separate state and Jharkhand is trying to establish a new co-operative with the brand name
“MEDHA”. With the backing of state govt., Medha has started its own procurement channel
and it has started to register its strong presence in Dhanbad.
All other players are private players and they did not have any established procurement
channel. Some players like Shyam have their own Khatal in the outskirt of the city from where
they get a fraction of total supply. They also procure milk from farmers who can come to their
processing plant and sell their milk. But these all players are largely dependent on SMP to fulfill
their quota of supply.
PLAYERS RANCHI JAMSHEDPUR DHANBAD

SUDHA   
NAND   -
DAIRY FRESH   -
SHYAM   -
MEDHA  - 
AMRIT -  
RADHA - - 
AMUL - - 
Table: Major players and their market presence.
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PRICE:
Price of all the players is almost the same for the available variants. The major difference is
pertinent in the distributor’s margins and retailer’s margin. Local players need to push their
products in the markets as there is no natural demand for their product due to lack of brand
awareness and brand image.
So, price mechanism and margins available is very important in the context of marketing
strategy adopted by the local players. It is noticeable that the margins provided by Sudha is
significantly lesser in comparison of other player as it has got the volume advantage over other
players. So, while Sudha is banking on the volumes it is supplying to the markets other players
are depending on higher margins they providing to the retailers and distributors.
PROMOTION:
None of the players have a properly designed promotion strategy. Even the market leader does
not have a uniformly designed promotional strategy in place. Sudha focuses mainly on
hoardings for its promotion. As there is no stiff competitor present in the market and there are
enough buyers available (actually they are facing problems in fulfilling the excessive demand),
they don’t see any need for a promotional strategy. Presence for a longer time period has
helped them in creating brand awareness and they have a real strong image in certain region. In
fact, Sudha is synonymous of pouch milk for a significant proportion of milk buyers.
Other players have opted for a second fiddle role for themselves and in place of giving
competition to Sudha they generally try to fill the supply gap created due to excessive demand.
Putting up promotional stalls at fare and festivals and distributing pamphlets is the most
prominent strategy followed by them.
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9. PROFILE OF MAJOR PLAYERS:
PLAYERS FUNCTIONAL IN JAMSHEDPUR
9.1 SUDHA JAMSHEDPUR:
SN DETAILS DETAILS
1 Plant Gamharia, Jamshedpur
2 Products SM and TM
3 Installed Capacity 1 LLPD
4 Average Sale (per day) 0.95 LLLP
5 No of distributors 17
6 No. of exclusive outlets 49
7 Total no. of retail outlets 447
8 Total no. of zones in the city 11
Sudha is the market leader in terms of both penetration and volume. It has divided the city in
eleven zones which are Sonari, Kadma, Bistupur, Adityapur, Jugsalai, Burmamines, TELCO,
Sakchi, Agrico, Mango – I and Mango – II. Besides these there are certain satellite routes where
milk is supplied from Jamshedpur plant. These areas are Jamshedpur Outer, Ghatsila, Chaibasa,
,Saraikela, Kiriburu, Rairangpur (Orissa) and Balrampur.
The total milk supply to the City and its surrounding markets is around 85000 Litres and the
supply to the satellite markets is around 10000 Litres.
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DISTRIBUTION CHANNEL – SUDHA JAMSHEDPUR
Semi-processed milk is transported from 4 places of North Bihar to the Jamshedpur plant.
These are:
Sl. No. Sourcing Mode of Transportation Milk Vol. in Ltr.
1 Barauni Rail 10000

2 Ara Road Irregular supply
3 Samastipur Road
4 Bhagalpur Road
Milk is daily transported from Barauni plant. But it takes 3 days for the milk to reach
Jamshedpur from other 3 plants due to bad shape of road connectivity in the region. The deficit
amount of milk is fulfilled through the SMP either of Amul or of others.
The milk is supplied directly from the plant to the market through the vehicles (Mainly 407)
arranged by the dealers. Some of the dealers have their own small vehicles to distribute in the
interior markets of the city. Distribution to retail outlets as well as the dedicated outlets is
handled by the same distributor.
Sudha Plant, Jamshedpur
17 Dealers
49 Sudha 447
Parlours Retailers
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27
The dealership is given through tender call which is for atleast 3 years of time. Security deposit
varies from Rs 1-2 Lacs based on the location of the route. Order booking is done over
telephone or personal visit to the plant by the dealers. They deposit cash in advance in Sudha’s
bank account against which the invoice is raised. On holidays and Sundays, the dealers deposit
the cash at the plant office or by the Demand Draft.
Similarly, retailers pay cash in advance at the dealer’s office against which the booking is done
for the next day. So the dealers are dictated by Sudha office in the same time retailers are
dictated by the dealers which shows a monopoly of kind of Sudha in the market.
Sudha directly supplies milk to some of the MFS stores and institutions from its plant through
its hired vehicles.
Margin Structure:
(Prices are in Rs. / Dist. Price Dist. Margin Retailer Retailer MRP
litre) price Margin
TONNED 20.90 0.30 21.20 0.80 22
STANDARDISED 22.90 0.30 23.20 0.80 24
 Distributor margin includes leakage and transportation cost.
Strengths
 Inherent advantage of being a local Dairy Co-operative.
 A very strong presence of Booths and parlors across the city having a network of total
distribution points adding up to 500.
 The parlors are just like any retail outlet, which can retail other non- competing
products.
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28
 So, parlor owners have a lot of stake involved and they can’t stock products of other
competing brands. Moreover their quote is almost fixed by the distributors, which gives
Sudha an assured sale.
 The packing station is located in the heart of the city, which minimizes the
transportation cost. Average transportation cost cum distributor margin in Sudha is Rs.
0.35 / litre which would be approximately. Rs. 0.90/liter in our case.
 A strong home delivery network of Sudha Booths and parlors across the city.
 Stronger brand image among the consumers due to presence in the market for a very
long time period and absence of any major competitor.
Weaknesses
 A very large proportion of Sudha booths and parlors are dissatisfied with Sudha because
of large leakage problem and insensitive behavior of the distributors.
 There are very less activities and presence of Sudha marketing team in the area. So,
there is no one in the market to address the complaint of the trade channel partners.
 Variation in the quality in the lean season is another weakness.
9.2 NAND:
SN DETAILS DETAILS
1 Plant Chandil , Jamshedpur
3 Installed Capacity 0.25 LLPD
4 Average Sale (per day) 0.10 LLPD (Jamshedpur ), 0.05 (Ranchi)
5 No of distributors 11(Jamshedpur), 3 (Ranchi)
7 Total no. of retail outlets 50-55 (Jamshedpur), 40 -45 (Ranchi)
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29
It supplies milk to Ranchi and Jamshedpur from the single plant which is situated at Chandil,
Jamshedpur. It is 35 km away from Jamshedpur and 75 km away from Ranchi by road.
It has 11 distributors in the Jamshedpur city. Distributorship is given on security deposit of

Rs.15000. It supplies milk from the plant to one common place at Sakchi from where the
dealers carry the milk in their own vehicles for which it pays the compensation. It has around 50
retailers around the city.
Margin structure:
litre) price Margin
TONNED 19.8 1 20.8 1.2 22
STANDARDISED 21.8 1 22.8 1.2 24
Strengths
 It has a better distribution channel in comparison of other local market players

 It is second largest brand in terms of volume.
 It has better quality of milk in comparison of other local players and it can compete with
Sudha in respect of quality of milk supplied. So, consumers also prefer to buy Nand if
Sudha is unavailable in the market.
Weaknesses
 There are only 50 parlours in the city, which can’t cater to the whole area.
 It is satisfied with playing the second fiddle role and making no serious attempts to
compete with Sudha.
 Non- presence of its marketing team in the market to push its products.
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30
9.3 SHYAM:
SN DETAILS DETAILS
1 Plant Namkum, Ranchi
4 Average Sale (per day) 0.02 LLPD ( Jamshedpur), 0.08 LLPD (Ranchi)
5 No of distributors 3(Jamshedpur), 2 (Ranchi)
7 Total no. of retail outlets 25-30 (Jamshedpur), 35-40 (Ranchi)
As Nand, Shyam has a single plant in Namkum, Ranchi and supplies to both cities from the same
plant. Major sales comes from Ranchi as the plant is located very near to it and all the
management as well as marketing staff operate from there only. So, they have better market
penetration in Ranchi in comparison of Jamshedpur. They don’t have operations in Dhanbad.
Margin structure:
litre) price Margin
TONNED 18 2 20 2 22
STANDARDISED 20 2 22 2 24
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9.4 AMRIT:
SN DETAILS DETAILS
1 Plant Jamshedpur
4 Average Sale (per day) 0.08 LLPD((Jamshedpur ),0.02 (Dhanbad)

5 No of distributors 7(Jamshedpur)
7 Total no. of retail outlets 70-80 (Jamshedpur ),25-30 (Dhanbad)
It is a local player of Jamshedpur market. Its supply service at the retail level is relatively good
and satisfactory for the retailers. Though there are some quality related issues with this brand,
this brand has been able to stand in the market due to higher margins it provides to the
retailers. The buyers of this brand are majorly tea stall vendors.
Margin structure:
litre) price Margin
TONNED 19.3 1.2 20.5 1.5 22
STANDARDISED 21.3 1.2 22.5 1.5 24
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9.5 DAIRY FRESH:
SN DETAILS DETAILS
1 Plant Ormanjhi, Ranchi
4 Average Sale (per day) 0.05 LLPD (Jamshedpur), .05 (Ranchi)

5 No of distributors 3 (Jamshedpur ), 4 (Ranchi)
7 Total no. of retail outlets 70-80 (Jamshedpur ), 45-50 (Ranchi)
It has recently launched its products in Jamshedpur and it directly supplies from Ranchi
plant to its 3 dealers in the city in the morning.
Even though it has no fixed margin for retailers and dealers ( Market feedback: Rs.0.90-
Retailer’s margin and Rs. 0.70 Dealer’s margin which includes transportation
compensation also), it can be ascertained as the following:
Margin structure:
litre) price Margin
TONNED 20 0.70 20.7 1.30 22
STANDARDISED 22 0.70 22.7 1.30 24
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33
MARKET SHARE OF DIFFERENT PLAYERS IN
JAMSHEDPUR
SUDHA NAND DAIRY FRESH SHYAM AMRIT
80%
7% 4% 8%
1%
PLAYERS FUNCTIONAL IN DHANBAD:
9.6 SUDHA (BOKARO PLANT):
SN DETAILS DETAILS
1 Plant Bokaro.
4 Average Sale (per day), In Dhanbad 0.25 LLPD
DISTRIBUTION CHANNEL:
Sudha pouch milk comes to Dhanbad from the Bokaro Dairy plant which is approximately 45-50
km. away from Dhanbad city. This plant has processing capacity of 60000 LPD of which 25000
LPD is supplied to Dhanbad while the remaining is consumed in Fhushro, Asansol and Purulia.
Area wise quotations are invited for the distributorship of Sudha. There are three distributors in
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34
Dhanbad. Distributors margin may vary in different Area/Route based upon the quotations. This
tender is valid for one year that may be extended further. Transportation cost for bringing milk
from plant (located at Bokaro) and then supplying milk to parlours and authorized retail
outlets/ counter is borne by the distributors.
DISTRIBUTORS AUTHORIZED
BOKARO
PARLOUR /
DAIRY PLANT (3 IN Dhanbad) OUTLET
GENERAL
OUTLETS CONSUMERS
Margin structure:
litre) price Margin
TONNED 20.45-20.90 0.30-0.75 21.20 0.80 22
STANDARDISED 22.45-22.90 0.30-0.75 23.20 0.80 24
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35
9.7 MEDHA:
SN DETAILS DETAILS
1 Plant Dhanbad, Ormanjhi (Ranchi plant)
3 Installed Capacity 0.35 LLPD ( both together)
4 Average Sale (per day), In Dhanbad 0.02 LLPD (Dhanbad), 0.03( Ranchi)
5 No of distributors 2 (Dhanbad), 3(Ranchi)

7 Total no. of retail outlets 25 -30 (Dhanbad),25-30 (Ranchi)
Medha is an initiative under “Jharkhand dairy project” and it has 18 different functional plants
at various places of Jharkhand. Its plant at Dhanbad is just 3 km. away from city which provides
it a huge advantage in maintaining timeliness of supply .Its has stated to make its presence felt
in Dhanbad market. A loss of credibility of Sudha due to uneven supply last year, Medha and
other players in Dhanbad has been hugely benefitted.
Its price is Rs. 1 lesser than Sudha for 1 ltr pack which provides it a price advantage in the
market. It is the only player in Jharkhand other than Sudha which is trying to develop a proper
procurement channel in the region which is a sound strategy from the future perspective.
Margin structure:
litre) price Margin
TONNED 18.70 1 19.70 1.3 21
STANDARDISED 20.70 1 21.70 1.3 23
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36
9.8 RADHA:
SN DETAILS DETAILS
1 Plant Dhanbad
2 Products SM

7 Total no. of retail outlets 30-35
Margin structure:
litre) price Margin
STANDARDISED 20.80 1 21.80 1.2 23
TONNED - - - - -
9.9 AMUL:
‘Amul’ milk comes to one specific area “Hirapur” of Dhanbad in unauthorized way from
Asansol. Consumers are charged rupee 1 to 1.5 per ltr more than MRP for Amul milk. There is
only one distributor and amul milk is confined to the nearby areas of Hirapur. Interestingly,
even when confined in one single area Amul has been able to achieve a larger consumer base
than all other players except Sudha. Most of the customer base has shifted from Sudha to
Amul.
Margin structure:
litre) price Margin
TONNED 20.50 .50 21 1 22
STANDARDISED 22.50 .50 23 1 24
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37
MARKET SHARE OF DIFFERENT PLAYERS
SUDHA MEDHA RADHA AMUL AMRIT
4%
6%
6%
8%
76%
PLAYERS FUNCTIONAL IN RANCHI:

Major players of Ranchi market are Sudha, Nand, Shyam, dairy Fresh and Medha. We have
discussed all of them. Only Sudha needs a separate description as it supplies the milk to Ranchi
city and adjacent areas from a separate plant at Dhurwa, Ranchi.
9.8 SUDHA (RANCHI):
SN DETAILS DETAILS
1 Plant Dhurwa, Ranchi
2 Products TM and SM

Distribution channel and margin structure of Sudha in Ranchi market is same as Jamshedpur.
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38
MARKET SHARE OF DIFFERENT PLAYERS IN
RANCHI
SUDHA NAND DAIRYFRESH MEDHA SHYAM
74%
5% 11%
5% 5%
9.11 LOOSE MILK MARKET IN THREE CITIES:
Loose milk has got a significantly large customer base in all the three cites under study. There
are various reasons due to which a customer will remain reluctant to shift from loose milk to
pouch milk. Some of the customer may remain reluctant due to lack of awareness about the
risks of using open milk and a hypothetical perception of open milk being more healthy and
fresh.
It is interesting that while the customers remain very sensitive about the quality of milk which
they buy, they remain insensitive about the surrounding in which cows or buffaloes are being
milked.
Other reason may be the lower prices offered by the local milkmen but in general, prices are
lowered by mixing water in the milk and consumers are aware about it. Generally, people who
buy open milk from milkmen at home always remain doubtful about the quality they are
getting from the milkmen.
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39
For some families, the credit facility provided by the local milkmen could be the reason for
them to stick with the loose milk. They can buy smaller quantity like .25 ltr or .75 ltr from the
local milkmen on the same ratio of prices as in buying 1 ltr milk.
We tried to understand the dynamics of the three respective markets with having these
hypotheses in mind and tried to identify factors functional in each market behind people
sticking with loose milk.
There are around 40 -50 Khatal areas in Jamshedpur city and its suburbs producing total
quantities of around 40000 LPD. Of these, there are 10 Khatals who contribute significantly in
total loose milk supply. These major Khatal areas are Jugsalai, Mango, Bistupur Gurudwar,
Sidhgola-Agrico, Gobindpur, Shastri Nagar, Kadma Ulian, Sonari, Sakchi Govt. Hospital and
Bhulabasa.ss
Out of these areas, Mango Khatal contributes 10000-12000 LPD, Bistupur Gurudwar Khatal
produces 4000-5000 LPD and Gobindpur provides 3000-4000 LPD.
Dhanbad market is predominantly a loose milk market. Reason behind it, to some extent, is its
less urbanized population. There are more than 80-85 Khatals in the outskirts of the town
which supply milk to the urban population. People prefer loose milk because there have been
uneven supplies of pouch milk in the past. All the Khatals in total, supply around 75000-80000
LPD in Dhanbad which constitutes around 70 – 75 % of the existing market size.
Though it shows the conservative nature of the population as a whole, Dhanbad market
provides huge opportunities for a new entrant. Sudha, though a market leader, have not been
able to create a strong consumer base for itself in Dhanbad. So, there are real opportunities for
a new but trusted brand like to come and rule the market easily.
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40
In Ranchi, Loose milk Market is about 40000 Litres and prices charged by local milkmen vary
between Rs 17 per liters to Rs 22 per liters, (loose milk of fat content of 5.0 %- 6.5 %). There are
approx 250 cattle sheds (Khatal) in city and adjoining areas.
150 small size Khatals of average supply 80 LPD.

60 mid-size Khatals of average supply 250 LPD.
40 big size Khatals of average supply 400 LPD.
RANCHI JAMSHEDPUR DHANBAD

LOOSE MILK MARKET 40000 LLPD 40000 LLPD 80000 LLPD
Table: Loose milk market in three cities.
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41
COMPARATIVE STUDY OF SUDHA AND AMUL THROUGH SWOT ANALYSIS:
9.12 SWOT ANALYSIS OF SUDHA:
STRENGTH WEAKNESS
 Strong brand name  No fresh milk Procurement
 strong distribution network  Governmental board takes long time to
 Strong Presence pass any decision on concerns raised.

 Lesser margins offered to retailers.
 Government support
 Most plant machinery is old and traditional
 Customer’s Trust
and can’t stand high demand situations.
 Government aid for full time parlors.
 Facing problems in maintaining the quality
 Presence of other SUDHA products in
throughout the year.
the market
OPPORTUNITIES THREAT
 huge market potential  Launching of AMUL in these markets
 No branded player in the market with can destroy its market share.
strong presence.  Logistics from far flung areas to major
 Acquisition of local dairy for supply places.
 Not able to cater demand.
 Switching cost is really low in the pouch
milk market.
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42
9.13 SWOT ANALYSIS OF AMUL:
STRENGTH WEAKNESS
 Strong brand name  Most of the market is captured by
 Best Quality at Affordable price SUDHA.
 strong distribution network  Non availability of any set up for milk
 Highly skilled manpower procurement in Jharkhand.
 Customer’s Trust  No government support.
 Presence of other AMUL products in

the market
OPPORTUNITIES THREAT
 To tap the untapped market, huge  Logistics from far flung areas to major
market potential. places.
 Except Sudha, no branded player in the  Emotional attachment with SUDHA
market with strong presence  Not able to cater demand.
 Short supply and irregular supply
 To explore new marketing
opportunities including satellite areas.
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43
9.14 COMPARATIVE ANALYSIS OF TARGET SEGMENTS OF MAJOR PLAYERS:
A comparative analysis of the Major players’ target segments will help us in understanding their focus
areas as well as their marketing strategies. It will also help us in analyzing individual player’s respective
strengths and weaknesses.
Players Focused Segment with higher presence

Sudha Consumers> Institutions > Restaurants> Tea stalls
Amrit Tea vendors> consumers > Restaurants
Nand Consumers > Restaurants >tea stalls
Radha Sweet Shops > tea stalls > Consumers
Medha Consumers > Sweet shops >Restaurants > Tea vendors
Shyam Restaurants >Tea stalls > Consumers
Dairy fresh Consumers > Restaurants

Table: Target segments for each brand in descending order, (> represents “greater than” sign)
Sudha is the brand having its presence in all the consumer segments and is catering to all the
consumer bases while the smaller players are focusing on sweet shops or tea stalls that does
not much care about the quality but are more considerate about the prices.
Though the printed retail prices are the same across the brands, smaller players provide
discounts on prices which make their brand of milk a little cheaper than Sudha and it is the only
incentive through which they are having a specific consumer base.
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44
10. MARKET POTENTIAL OF THREE CITIES:
Per capita of milk availability in Jharkhand is 126 gms But this can’t be the appropriate figure to
calculate the total market potential. Total market potential of a city should be the amount
which will be consumed when milk is abundantly available while the figure of 126 gms is the
current per capita availability of milk in the state.
To find out the total per capita income we have taken national per capita milk consumption of
246 Gms and then discounted it by a factor X, which is the ratio of state per capita income and
national per capita income, to find out the state per capita milk consumption figures.
To normalize the state per capita consumption figures for every city, we have divided every city
into major marketing zones and then provided an urbanization rating to every major marketing
zone with which we have discounted the state per capita consumption figures to find put the
per capita consumption figures for every marketing zone. The urbanization rating has been
provided to every zone on the basis of various criteria like no. of schools, no. of petrol pumps
and no. of marketing complexes in the respective zone.
Now, by multiplying the per capita consumption of every marketing zone with the total
population of the marketing zone, the total marketing potential of the specific marketing zone
can be figured out.
The total market potential of the city would be the sum of market potentials of all the
marketing zones in the city.
Calculation of State Per Capita Consumption Figure:
State per capita consumption = national per capita milk consumption * Factor X
Where X = (state per capita income / national per capita income) Current2008-09 figures
= (26620/38083) = 0.699
So, State per capita consumption = 246 * 0.699 = 174 gms
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45
10.1 RANCHI
SN AREA POPULATION STATE PCC IN URBANIZATION PCC IN GRAMS DEMAND
IN ‘000 LTR RATING (IN KL)
1 Bariatu 125 174 1.1 191.5 23.94
2 Morabadi 105 174 1 174 18.27
3 Lalpur 115 174 1.2 209 24.035
4 Doranda 95 174 1 174 16.53
5 Ashok Nagar 55 174 1.2 209 11.495
6 HEC 65 174 1 174 11.31
7 Harmu 135 174 1 174 23.49
8 Hindpiri 120 174 1 174 20.88
9 Sukhdeonagar 145 174 1 174 25.23
10 Kanke 90 174 1.1 191.5 17.235
Total 1050 190.225
Table: - Calculation of market potential of Ranchi.
Ranchi has been divided in 10 zones and population of the zone has been taken from available
secondary data (govt. of Jharkhand website). Urbanization ratings have been provided on the
basis of above mentioned criteria.
Total market potential of Ranchi city comes out to be 190 KLPD where the total supply by
pouch milk suppliers adds up to 124000 L and around 40 KL is supplied by loose milk sellers. So,
there is a latent demand of at least 66000 in the Ranchi market.
10.2 DHANBAD
SN AREA POPULATION STATE PCC IN URBANIZATION URBAN AREA PCC DEMAND
IN ‘000 GRAMS RATING IN GRAMS
1 Dhanbad Town 476.45 174 1 174 82.903
2 Jharia Town 472.68 174 1 174 82.25
3 Topchachi 33.97 174 0.9 156.7 5.323
4 Katrash 126.65 174 0.9 156.7 19.846
Total 190.318
Table : calculation of total market potential of Dhanbad.
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46
Dhanbad has been divided in 4 zones and population of the zone has been taken from available
secondary data (govt. of Jharkhand website). Urbanization ratings have been provided on the
basis of above mentioned criteria.
Total market potential of Dhanbad comes out to be 190 KLPD where the total supply by pouch
milk suppliers adds up to 114000 L and around 40 KL is supplied by loose milk sellers. So, there
is a latent demand of at least 76000 in the Dhanbad market.
10.3 JAMSHEDPUR
SN AREA POPULATION STATE PCC IN URBANIZATION URBAN AREA PCC DEMAND
IN ‘000 GRAMS RATING IN GRAMS IN KL
1 Bistupur 135 174 1.2 209 28.215
2 Telco 140 174 1.2 209 29.260
3 Kadma 110 174 1.2 209 22.990
4 Sakchi 125 174 1.2 209 26.125
5 Golmuri 98 174 1.2 209 20.482
6 Jugsalai 65 174 1 174 11.310
7 Bagbera 58 174 1 174 10.092
8 Sundernagar 50 174 1 174 08.700
9 Gobindpur 53 174 1 174 09.222
10 Mango 85 174 1 174 14.790
11 Dimna Road 63 174 1 174 10.962
12 Adityapur 70 174 1.1 191.5 13.405
12 Gamaharia 49 174 1.1 191.5 09.384
TOTAL 214.937
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10.4 SIZE OF OPPORTUNITY IN THREE CITIES:
Size of pouch Size of loose milk Market potential Potential- supply

milk market market gap
Ranchi 84000 40000 190000 66000
Jamshedpur 120000 40000 215000 55000
Dhanbad 34000 80000 190000 76000
TOTAL 238000 160000 595000 197000

Table: figures rounded off to nearest thousands.
Though we agree that the customer base for a new entrant like AMUL will be mainly created
from the existing milk market customer base and so, the unmet demand figures are of not so
much significance.
But in our hypothesis, there are customers who are not satisfied with the quality of milk
supplied by Sudha and as they don’t have an alternative of even same quality (other players
being local or loose milk players), they are remaining away from milk consumption. Entry of a
trusted player like AMUL can just induce them again to start consuming milk and could be the
customers of AMUL from new customer segment.
There are customers who are just not aware of the importance of having milk on regular basis
but are potential consumers if a proper awareness campaign is launched. It is notable that the
market leader Sudha does not have any proper promotional strategy in place and they don’t
even feel need of it as they are having difficulty in supplying milk on regular basis to their
existing consumer base. So, a proper awareness campaign by Amul with a focus on brand
promoting can just do the trick n capturing a major share of this new customer segment.
But majority of customers of Amul will come from the existing customer base for which Amul
needs to design a proper launching and marketing strategy.
We will discuss these issues in further sections.
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11. RESULTS OF MARKET SURVEY IN THREE CITIES:
Descriptive research to collect primary data regarding consumer perception and preference
was conducted with the help of a marketing survey which was conducted in all three cities.
A sample size of 100 consumers, 60 retailers, 40 tea vendors and 20 restaurants was chosen
from each city to collect the data. Collected data has been consolidated and presented in the
subsequent section through which we will be able to understand demands and requirements of
the market.
AVERAGE FAMILY SIZES IN THREE CITIES:
40 38
35
35 32
30
25 22 22
20 20 20
20
16 16
15
11 11
10 7 8 7
6 5 4
5
0
3 4 5 6 7 8
As is evident from the bar chart, maximum families are of size 3 – 6 in all the three cities. In
comparison of Ranchi and Dhanbad has average family sizes in the higher side (52 % have
family size of 5-6 in Dhanbad). It shows that the awareness level of general mass in Dhanbad is
less than Ranchi and Jamshedpur. (Lack of family planning implies to lack of awareness).
So, Company will have to focus more on promotional activities in Dhanbad in comparison of
other two cities. The campaign should not only focus on creating brand awareness but it should
also highlight benefits of pouch milk over open milk and the risks of using open milk.
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AGE DISTRIBUTION IN THREE CITIES:
Knowledge about the age distribution of a city can provide significant information to AMUL
about the variant of pouch milk which would have more demand in a city. So, information
about age distribution can help in achieving supply side efficiency.
% OF PERSONS OF DIFFERENT AGE GROUPS IN

RANCHI
36%
1-6
15% 7-12
21% 13-20
13% 21-45
15%
46 or More
A significant size of Ranchi’s population is in the younger side (around 28 % between 1-12)
which is an indication that standardized milk (4.5 % fat) will have significant market in this city.
Ranchi has around 15 % of its population in the bracket of 45 or more which could be the ideal
target segment for DTM and with proper promotion a demand pull can easily be created for
DTM. Unavailability of DTM from any other competitor may provide AMUL an easier chance to
capture bigger market share in this category.
Results for the other two cities (charts in the next page) are also in alignment which suggests
that there is significant demand for all variants of milk in these markets. It is just that non
availability of other variants is compelling the customers to existing variants.
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50
JAMSHEDPUR
38%
13% 1-6
7-12
18%
15% 13-20
16% 21-45
46 or More

DHANBAD
34%
18% 1-6
20% 7-12
15% 13-20
13%
21-45
46 or More
So, on the basis of the findings it is suggested to promote different variants of pouch milk as
more suitable to different age groups. While it may not increase the overall number of
consumer base, it may attract consumers from competing brands to shift to AMUL as it may
emerge as a brand which cares for the customer needs and provides product in accordance
with it.
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EFFECTIVENESS OF POINTS OF PURCHASE (PoP):
Effectiveness of different formats of Pop can provide useful insights when developing
distribution channel for AMUL. In all the three cities generally milk parlors are synonymous with
‘Sudha dedicated outlets’ as none other brand has been able to develop its own dedicated
outlets.
MILK PURCHASING PREFERENCE OF CONSUMERS

35 32 32
30
30 28 28
26
NO. OF CONSUMERS
25 22
18 19 18 19
20
16
15
10
4 5
5 3
0
AT HOME
MIKH PARLOUR RETAIL STORE KHATAL ANY OTHER
FROM GWALAS
RANCHI 26 30 22 18 4
JAMSHEDPUR 28 32 16 19 5
DHANBAD 18 19 32 28 3
As is evident from the chart that dedicated outlets provide Sudha a distinct advantage as
almost 25% milk consumers are buying their product from these milk parlours. More than
penetration, it has provided Sudha a much better visibility than its competitors. So, while the
no. of dedicated outlets increase the sales and are helpful in increasing the nearness of their
product to consumers, it has help in capturing much larger share of mind for Sudha.
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TIMING OF MILK PURCHASE:
Knowledge about the preferred time by consumers can be immensely helpful in providing right
quantities at right time. It will make the task of logistics a lot more easier and would enable the
organisation to handle its operations in a lot more cost effective manner.
TIMING OF MILK PURCHASE

MORNING EVENING BOTH
56% 27%
17%
As the pie chart concludes, morning time is more preferred time for consumers to buy milk. In
these cities milk purchase is an activity which is associated with timing of morning walk of men
and for ladies, it is done along with dropping children at their bus stop. So, Amul will need to
arrange for supplying a larger quantity at the morning time
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CONSUMER PREFERENCE ABOUT DIFFERENT VARIANTS:
We tried to determine the consumer preference about different variants of milk available in the
market. We can easily see that there is a clear inclination towards TM in all the three cities. But
other than price, it is availability throughout the year of toned milk which plays a significant
role.
VARIANT PREFERENCE IN THREE CITIES

80 75
70
60
NO. OF CONSUMERS
60 55
50 45
40
40
30 25
20
10
0
TONNED MILK 55 60 75
STANDARD MILK 45 40 25
Our hypothesis is supported by the fact that 55% of respondents were willing to try DTM or
WM if consistently available in the market at reasonable prices. So, there is latent demand for
DTM and WM in the market which is unaddressed by any of the player.
New Variants of milk
will not try

45%
will try
55%
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CONSUMER PERCEPTION ABOUT POUCH MILK:
In all the three markets there is a significant market share captured by loose milk players. We
tried to identify factors which can explain the phenomenon of consumers sticking with loose
milk.
FACTORS AFFECTING MILK PURCHASING

DECISION
25 22 22
2019 20 20
NO. OF RESPONDENTS
20 1817 18 18
16 16
15
10 10
10 7 8 8
5 4 6 5 6
5 3 2
0
AVAILABI CREDIT ANY
HYGIENE HEALTHY TASTE PRICE IMAGE
LITY FACILITY OTHER
RANCHI 5 16 18 18 10 3 22 8
JAMSHEDPUR 4 20 17 20 8 5 20 6
DHANBAD 7 19 16 22 6 2 18 10
Most of the respondents (around 40 %) using loose milk identified lower prices of loose milk
and credit facility provided by the local milkmen as the major factor for their preference to
pouch milk.
It shows while quality is a sensitive issue there are specific sections who are compromising with
quality due to lower prices of loose milk. There are few families who need 250 or 750 or 1250
Gms of milk per day but they can’t buy pouch milk as such option is not available for them.
They didn’t buy larger volumes as milk is a very perishable commodity which can’t be easily
preserved. Launching smaller pack sizes of 200-250 Gms can help in attracting these customers
towards pouch milk.
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Milk is consumed as a nutritional food in the homes and generally provided to children for
direct consumption. So, a lot of families will be willing to sacrifice volumes for quality.
Our hypothesis is supported by the fact that there were a significant proportion of respondents,
especially among loose milk consumers who saw smaller pack sizes at reasonable prices a value
added preposition.
It shows that there are consumers with low purchasing power who are willing to buy good
quality milk but are unable to do so because smaller pack sizes are not available in the market.
It is a pretty large consumer base, so, while selling smaller volume per consumer, company can
achieve higher sales in total.
SMALLER PACK SIZES
NO
35%
YES
65%
Figure 1 Availability of smaller pack sizes
Target segment for it would be working single professionals and students alongside lower
income consumer class. A proper promotional campaign to create market awareness about the
launching of these pack sizes will help in creating a consumer base in a shorter period of time. It
is notable that the maximum number of consumers of these packs would be a new customer
segment which will shift its preference from loose milk to these pouch milk packs. So, it will not
affect the market size for other pack sizes.
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CONSUMER PREFERENCE TOWARDS POUCH MILK:
We tried to identify the major factors for consumer preferring a specific variant of pouch milk.
We chose major factors which we had found out during our exploratory research which could
be the reasons for a specific section of consumers favoring a specific variant. As we have found
out that in all the three markets there is major preference for TM, we tried to find out reasons
for this preference of consumers.
FACTORS INFLUENCING POUCH MILK PURCHASE

45 40 40
40 35 35
35
30 25 25 25
Axis Title
25 20
20 15 15 15
15 10
10
5
0
SUITABILITY FOR
PRICE HEALTH AVAILABILITY
USE
RANCHI 15 40 35 10
JAMSHEDPUR 25 35 25 15
DHANBAD 20 25 40 15
According to respondents, availability is the most significant factor in Dhanbad market and
healthiness is a more significant factor for the people of Ranchi and Jamshedpur. These data
were supported by the fact that there was a shortage of SM in Dhanbad market last year and
all the brands including Sudha was providing TM only. So, availability of TM throughout the year
is the reason for the people of Dhanbad to prefer TM.
As the market of Ranchi and Jamshedpur is more mature and consumers are more aware than
Dhanbad. Low fat content in TM in comparison of SM is the reason for the consumer for
preferring TM. It shows major opportunity for DTM in these markets because there is consumer
base available in these cities for DTM which is ultra health conscious and promoting DTM a
product for as the product for this segment can help in creating a consumer base for it.
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FACTORS OF CONSUMER SATISFACTION:
Through exploratory research we identified factors which are related with consumer
satisfaction. We tried to identify the level of correlation these factors have with the consumer
satisfaction.
We have defined these factors as quality of the milk, freshness of the milk, price of the milk,
timeliness of supply, brand value of the brand used, advertisements done by the brand.
Communalities
Initial Extraction
QUALITY 1.000 .987
TIMELINESS 1.000 .778
PRICE 1.000 .697
FRESHNESS 1.000 .821
BRAND 1.000 .592
ADVERTISEMENTS 1.000 .734
Extraction Method: Principal Component Analysis.
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.355 39.251 39.251 2.355 39.251 39.251
2 1.148 19.141 58.392 1.148 19.141 58.392
3 1.105 18.416 76.808 1.105 18.416 76.808
4 .706 11.772 88.580
5 .668 11.137 99.717
6 .017 .283 100.000
As the results show, the three most important factors for consumers are quality of the milk,
timeliness of supply and price of the milk used.
So, a brand can achieve significant consumer satisfaction level if it constantly maintains good
quality of milk, timeliness of supply and keep reasonable prices.
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FACTORS RELATED WITH RETAILER SATISFACTION:
We identified factors which can be related with retailer satisfaction and these factors are
timeliness of supply, margins available to retailer, credit facility available to retailers, response
to complain, damage settlements and consumer demand for the brand.
Communalities
Initial Extraction
TIMELINESS OF SUPPLY 1.000 .780
MARGINS AVAILABLE 1.000 .689
CONSUMER DEMAND 1.000 .778
DAMAGE SETTLEMENT 1.000 .738
RESPONSE TO COMPLAIN
1.000 .825
CREDIY FACILITY 1.000 .774
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.082 34.696 34.696 2.082 34.696 34.696
2 1.417 23.612 58.307 1.417 23.612 58.307
3 1.085 18.082 76.390 1.085 18.082 76.390
4 .820 13.673 90.063
5 .577 9.625 99.687
6 .019 .313 100.000
The three most important factors for retailer were identified as timeliness of supply, margins
available and consumer demand.
So, a brand can keep its retailers satisfied if it maintains timeliness of supply, provides sufficient
margins and there is sufficient demand from consumers for the brand.
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INSIGHTS FROM MARKET SURVEY:
1) Continuous supply of good quality milk is the major challenge of these market due to
almost non - presence of dairy farming in the state and Amul will face a major challenge
in providing constant good quality milk.
2) Small packet sizes are the need of the market and Amul can siege the first mover
advantage by introducing small pack sizes.
3) Any brand can achieve great popularity among consumers if it can vertically integrate to
provide home delivery system. There are a significant number of consumers who will
opt for value added services and any company can gain greater consumer satisfaction by
providing home delivery and it can be provided through outsourcing the work and
charging a premium for the service.
4) Amul should provide free Testing facility at its outlets which will increase the consumer
trust in the quality of milk provided by Amul.
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12. LAUNCH STRATEGY
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AMUL has got a very strong brand name and products of AMUL has been a synonyms for
quality and AMUL products, traditionally, have got a very high consumer satisfaction rating. A
long customer relationship and a reliable image make it easier for AMUL to launch a new
product and capture a fair market share for it in comparison of its other competitors. But it
does not mean that AMUL didn’t need any marketing or launch strategy before launching its
product. It becomes all the more important for an organisation like AMUL to have a proper
launch and marketing strategy in place before launching products.
On the basis of our gathered understanding of the market of three cities, it can easily be
concluded that there is a reasonable market opportunity for AMUL to launch its pouch milk. A
first AMUL will have to decide the product variants which AMUL should launch in these cities.
12.1 AMUL POUCH MILK:
AMUL needs to come up with all of its product variants in pouch milk category. AMUL should
launch Amul Taaza and Amul Shakti at first and then after one month Amul Gold and Tea
Special should come in the market.
As during our data analysis we have found out that there are significant opportunities for DTM
in these markets. It should also be launched in these markets; it will not only provide AMUL
better visibility in terms of more number of available variants but will also help AMUL hit an
untouched customer base.
Amul should have first mover advantage by launching smaller pack sizes as there are specific
consumer segments that could start using pouch milk if available in small pack sizes at
competitive prices.
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VARIANTS 1 LTR 500 ML 250Ml LAUNCHING TIME
GOLD   - 1 month post launch of Shakti and Taaza.
SHAKTI    Initial product which will be launched, smaller
pack sizes to follow in two months.
   Initial product which will be launched, smaller
TAAZA
pack sizes to follow in two months.
SLIM &   - 1 month post launch of Shakti and Taaza.
TRIM
T- SPECIAL   - 1 month post launch of Shakti and Taaza
Table: Product variants, pack sizes and launching time.
12.2 THE PROCESS CHART

20th Sep could be an ideal date for amul launching as in the two week interval around it are
three major festivals. Festival season would be ideal to generate awareness about amul pouch
milk launch.
Final launch preparation
ADA appointment
Retail registration
Area wise survey & route design
MMO manpower recruitment
ADA Appointment advertisement
Distribution channel finalization
MMO Division
Zone division
Submission of report & approval
Pre Launch survey

28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug 9-Aug 16-Aug 23-Aug 30-Aug 6-Sep 13-Sep 20-Sep
Due Week of completion

TABLE: - Activity Chart for launching of AMUL pouch milk in Ranchi, Jamshedpur & Dhanbad
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12.3 LAUNCH TARGETS:
Initially we will be targeting figure of 1.2 LLPD to achieve in the first three months of pouch milk
launch. The target has been set by looking at the market size and the demand - supply gap in
the three markets.
Size of pouch milk market = 238000 LPD
Size of loose milk market = 160000 LPD
Size of Untapped market = 197000 LPD
Assuming AMUL will capture 30 % of total pouch milk market which is not unrealistic as market
of smaller players will largely come to Amul and Amul will be able to make a lot of Sudha
consumer due to a better brand name and greater reliability.
Assuming Amul will be able to make 20 % of customers of pouch milk switch to Amul through
small pack sizes. (a significant proportion of those will the people who want to switch but can’t
due to higher prices of pouch milk.)
Assuming Amul will be Able to create a customer base of 10 % of total potential consumers but
didn’t use it due to various reasons.
Total initial market size of Amul = (30 % * total pouch milk market) + (20 % * total loose milk
Market) + (10 % * total untapped market)
= (30% * 238000) + (20% * 160000) + (10 % * 197000)
= (71400 +32000 + 19700) LPD
= 123100 LPD
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12.4 DISTRIBUTION DIAGRAM
DAIRY PLANT
APOs ADAs
Retailers
Indirect vendors/
Home delivery
agents
CONSUMERS
26 ADAs will be appointed roughly based on our existing WD areas as well as major residential
areas where we propose to launch. (Jamshedpur - 12, Dhanbad - 8 and Ranchi - 6).
We plan to enlist about 1040 retailers @ 40 retailers per ADA prior to the launch so that we can
achieve the necessary penetration to challenge the market leader.
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Area wise break – up of our distribution zones is as follows:
12.5 ZONE DIVISION

JAMSHEDPUR DHANBAD RANCHI
AREA ZONE AREA ZONE AREA ZONE
Sonari Jharia Town Ratu Road
Kadma Topchanchi Main Road
Bistupur Kusunda Harmu
Sakchi Nirsa 8 Hatia 6
Sitarandera Katras Namkum
Sidhgora-Agrico 12 Hirapur Booty More
Golmuri Cable Bank More
Burma Mines Sindri
Baridih
Birsanagar
TELCO
Adityapur
12.6 PRICE MECHANISM
Competitive price and margin structure is one of the necessary criteria to compete in the
market and Amul will have to have a real competitive price structure in relative of its main
competitor (Sudha). The price mechanism that can be proposed is as follows:
Variants Volume ( ml) MRP Retailer Margin (Rs./Ltr) ADA Margin (Rs/Ltr)
GOLD 1000 26 1 0.5
500 13 1 0.5
SHAKTI 1000 23 0.9 0.45

500 12 0.9 0.45
250 6 0.9 0.45
TAAZA 1000 22 0.8 0.4

500 11 0.8 0.4
250 5.5 0.8 0.4
SLIM & TRIM 1000 21 0.8 0.4

500 10.5 0.8 0.4
T- SPECIAL 1000 21 0.8 0.4

500 10.5 0.8 0.4
Table: proposed price structure
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66
12.7 LOGISTICS:
To cater to a large market like Jharkhand any organisation will need a huge logistical setup. For
an organisation like Amul which is planning to launch its pouch milk in this market, it becomes
very critical as milk is a very perishable product and customer remain very sensitive about the
freshness of the milk.
Amul will have to choose a plant location which is strategically located in the centre of these
cities, we propose Ormanjhi, Ranchi as the location for the Amul plant. Ormanjhi is strategically
located near the capital city of Jharkhand and is well connected with all the major cities of
Jharkhand.
PLACE DISTANCE FROM CHANDIL

Dhanbad 90 Km
Ranchi 20 Km
Jamshedpur 135 Km
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67
This plant will serve as the long term supply solution but Amul needs to solve its short term
supply needs too.
It can be solved through transporting packaged milk from Kolkata plant. Ranchi could be the
distribution centre from where milk could be supplied to other two cities. It will be around 300
Kms and will take around 8 Hrs to transport from Kolkata to Ranchi. From Ranchi the sub-
distribution system will work to reach the pouch milk at the ADAs of all the three cities.
Other viable options can be to supply milk to all the three cities individually from Kolkata or
private plants either at Jamshedpur or at Ranchi can be hired because there are some private
dairy plants which are running under capacity and they may be willing to rent out their excess
capacity at reasonable rent. Logistically it would be ideal to start the processing operation from
one of these places.
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12.8 SALES AND TRADE PROMOTIONAL ACTIVITIES:
Sales and trade promotion activities are essential for an organisation like Amul and sales and
trade promotional planning is an important part of design of launch strategy. We have tried to
estimate a rough budget for launching as well as annual sales and trade promotion budget.
EXPENDITURE BUDGET FOR LAUNCHING PER CITY

SN BUDGET HEAD / OBJECTIVE ACTION POINT UNIT COST/ T. COST
ACTIVITIES NO / UNIT Rs / CITY
CITY (Rs.)
1 PAMPLETS To covey our message to One month 10000 0.20 2000
customers before launching
2 WALL / RETAIL For Brand popularization Two week prior 10000 Rs 3.5 / 35000
OUTLET PAINTING & Popularity of launching Sq. feet Sq. ft
3 HOARDING IN For Brand awareness and Jamshedpur 10 20000 200000
CITY Sales promotion major place
4 PRODUCT DISPLAY For Brand awareness and As & when 50000
IN FAIR & Sales promotion required
EXHIBITIONS
5 PRODUCT RATE For customer awareness Two week prior 100 40 4000
CHART of launching
6 GLOW SIGN AT For Brand awareness and Railway Station 2 15000 30000
RAILWAY STATION Sales promotion
7 GLOW SIGN For Brand awareness and One month 50 1000 50000
BOARD Publicity before launching
8 AMUL PRINTED Value added service to Till One week , 150 100 15000
CARRY BAG (KG.) customer for sales post launch
promotion
9 ADVERTISEMENT Publicity Two week prior 100000
IN NEWSPAPER of launching
10 RETAILERS SIGN Visibility Alongside 100 150 15000
BOARD launching
Total 501000
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ANNUAL SALES & TRADE PROMOTION BUDGET PER CITY
SN BUDGET HEAD / OBJECTIVE ACTION POINT UNIT COST/ T. COST
ACTIVITIES NO / UNIT Rs / CITY
CITY (Rs.)
1 GLOW SING AT For Brand awareness and Throughout the 1 70000 70000
JUBLI PARK / Sales promotion year
FIRAYALAL
CHOWK / BANK
MORE
2 CUSTOMERS CUM Customers / Retailers Quarterly 1 10000 40000
RETAILERS MEET education
3 DAIRY / Relationship Marketing On New Year 5000 25000
CALENDER /
GREETING CARD
4 CHILDREN For brand image building As & when 20000
COMPETITION and sales promotion required
(SPORTS,
PAINTING)
5 SPONSORING For brand awareness and As & when 50000
IMPORTTANT publicity required
CULTURAL AND
SPORTS EVENT
6 BANNERS On the eve of important Deepawali, New 300 50 15000
festivals for sales Year, maker
promotions sankranti, Holi
TOTAL 220000
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13. LIMITATIONS OF THE STUDY:
Though the study comprehensively covers up all the important marketing phenomenon of the
three cities under study, the study intentionally excludes the market areas of suburbs of the
three cities which present equally attractive markets and part of the demand is created in these
markets. These areas are left uncovered because the focus of the study was to find out the
market opportunity in the three markets for launching of pouch milk of Amul.
Though suburbs present huge market opportunity, they are not significant markets for a
product which is newly launched because it is difficult for a new brand to launch and achieve
highest level of market penetration.
So, the study focuses on the market opportunity present in the town areas of the cities while
adequate attention has been paid that a brief idea about the markets of the suburbs can be
gained from the report.
Report has more primarily focused on the strategy of the market leader Sudha and has willing
ignored going in depth of the strategies of other players as they are supplying insignificant
volumes in the market and primarily adopting “guerrilla strategy”.
Leaving aside these, report comprehensively explains the major market scenario and provides
insights about the strengths and weaknesses of competitors. We hope the report will be helpful
for the management to take the strategic decision of whether to explore these markets or not.
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ANNEXURE - 1
FINAL QUESTIONNAIRE FOR RETAILER AFTER PRE TEST:-
Dear Sir/ Madam,
We are students of Chandragupt Institute of Management Patna. We are conducting a survey related to
Market potential of pouch milk. For this purpose, we would like you to spare a few minutes and share
your views with us.
Thank you.
1. Which pouch milk brands are available at your outlet?
Always Mostly Occasionally

Sudha
Shyam
Nand
Dairy Fresh
Medha
Others
2. Who supplies pouch milk to you?

I. Supplier
II. Distributor
III. Wholesaler
IV. Others (Please specify)
3. Please rank the brands according to their sales or demand.
I. Sudha
II. Shyam
III. Nand
IV. Dairy Fresh
V. Medha
4. Please rank the type of milk according to the consumer preference.

I. Whole Milk (Milk fat- 6 % & SNF-9 %)
II. Standardised Milk (Milk fat- 4.5 % & SNF-8.5 %)
III. Tonned Milk (Milk fat- 3 % & SNF-8.5 %)
IV. Double Tonned Milk (Milk fat- 1.5 % & SNF-8.5 %)
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72
5. At what time there is more demand for pouch milk? (Please rank them accordingly)
Morning Afternoon Evening
6. Please rank the features of the brand of milk which most influence the demand.
I. Quality
II. Price
III. Freshness
IV. Availability/ timeliness of supply
V. Brand Image
VI. Advertisements
7. Please rate the brands on the following parameters? ( 1 is lowest, 7 is highest )

PARAMETERS / BRAND NAME SUDHA SHYAM NAND DAIRY FRESH OTHERS
PRODUCT QUALITY
CUSTOMER LOYALITY
BRAND AWARENESS
PRODUCT AVAILABILITY
TIMELINESS OF SUPPLY
MARGIN OFFERED TO RETAILERS
CREDIT FACILITY
REFUND / DAMAGE SETTLEMENT
RESPONSE TO COMPLAIN
8. Please rank the features according to the value you attach to them when selling the products of
a company?
I. Timeliness of supply
II. Margins available
III. Credit facility
IV. Damage settlement
V. Response to complain
9. How the companies are promoting their brand among consumers?

Advertisements Free trials Gifts
Discount coupons Any other (Please specify)
10. Do the companies have any incentive system in place for retailers?
Price – off on list price Gifts price-off on other goods
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73
Any other (please specify)
11. How do you rate brand “AMUL” (in reference of available products) on the following
parameters? ( 1 is lowest, 7 is highest)
Product Quality 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7

Consumer preference 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
Brand awareness 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
Timeliness of supply 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
Response to complain 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
Credit Facility 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
Damage settlement 1…….…….….2……………...3……….……...4…….….….….5...........…...6…….…….….7
12. Would you like to sell AMUL pouch milk?
I. Only if it provides greater margin than the market leader

II. Even if it provides equal margin than the market leader
III. Even if it provides lesser margin than the market leader
13. What facility would you like to have from AMUL to become a loyal retailer of “AMUL”?
_____________________________________________________________________________
_____________________________________________________________________________
REMARKS
:-
Respondent Name __________________________________________________ Gender ___________
Name of the shop: …………………………………………………………………
Address: _____________________________________________________________________________
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74
FINAL QUESTIONNAIRE FOR CONSUMER AFTER PRE TEST:-
Dear Sir/ Madam,
We are students of Chandragupt Institute of Management Patna. We are conducting a survey related to
Market potential of pouch milk. For this purpose, we would like you to spare a few minutes and share
your views with us.
Thank you
1. How many members are there in your family?
1-6 yrs 6-12 yrs 12-20 yrs 20 yrs or More
2. What is the daily consumption of milk in your family?
0-1 L 1-2 L 2-3 L 3 or More L
3. For what purposes you majorly use milk in your family? (You can tick one or more)
Direct consumption Tea Curd Any other
4. What kind of milk do you use?

Pouch Milk Non – Branded or Open Milk
5. From where do you buy your milk?
Milk Parlors Retail stores
Khatals (open milk Centers) At home from Gwalas
Any other, please specify
If open milk user, move ahead; else go to Question number 8.
6. Why do you use open Milk ?(You can tick one or more)
Hygiene Healthy Taste Price
Availability Image Any other
7. Would you ever like to use pouch milk? Yes No

Please give reasons for your answer_________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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75
Please go to Question number 14
8. Which brand of milk do you use?
Sudha Nand Shyam Dairy fresh
Medha Any other (Please specify)
9. Why do you use this brand (As you mentioned in previous question)?
Quality is better than other available brands
Easily available
Cheaper than other available brands
Non – Availability of option
Any other, Please specify
10. What kind of milk do you use?

Whole Milk (Milk fat- 6 % & SNF-9 %)
Standardised Milk (Milk fat- 4.5 % & SNF-8.5 %)
Tonned Milk (Milk fat- 3 % & SNF-8.5 %)
Double Tonned Milk (Milk fat- 1.5 % & SNF-8.5 %)
11. Give reason for your above mentioned choice? (You can tick one or more)
Price Healthiness taste Availability
Suitability to your particular use
12. How will you react to the price increment by your preferred pouch milk brand?
(Switch to lower volume, Switch to cheaper brand, Move to open milk market)
Increment of Rs 0 - 1 __________________________________________________
Increment of Rs 1- 1.50 __________________________________________________
13. If available, would you like to buy 200 – 250 ml pouches rather than half litre or 1 litre pouch?
Yes No Depends on usage
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76
14. How do you rate your milk in terms of ( 1 is Lowest and 7 is Highest)
Hygiene 1…….…….….2……………...3……….……...4…….…..……5..........…...6…….….….7
Healthiness 1…….…….….2……………...3……….……...4…….….…….5...............6…….………7
Taste 1…….…….….2……………...3……….……...4…….….…….5..........…...6….…….….7
Freshness 1…….…….….2……………...3……….……...4……….….….5..........…...6….…….….7
Price 1…….…….….2……………...3……….……...4…….…..……5..........…...6…….….….7
Availability 1…….…….….2……………...3……….……...4……………...5................6…….……..7
Timeliness 1…….…….….2……………...3……….……...4……………...5................6…….….….7
15. Rank the following factors according to their influence in your milk purchase decision?
Taste Hygiene
Healthiness Price
Timely Supply Advertisement
16. What do you do if your brand of milk is not available?
You will wait for your brand of milk to come

You look for your brand of milk at some other place
You buy other available brand
17. What are the areas where Pouch milk should improve to make it more preferred choice for
consumers?
______________________________________________________________________________
_______________________________________________________________________________
REMARKS : -
AMUL : -
Respondent Name __________________________________________________Gender _____________
Occupation: a) Business b) Service c) Housewife d) Student e) Others
Address: _____________________________________________________________________________
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77
LIST OF ANNEXURE
Year wise sales figures of Sudha Jamshedpur:
Milk sales ( in KL/Day)

milk sales ( in KL/Day)
95.4
81.5 87.5
69.4 75
65.5 67.9
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Milk Market in major cities of Jharkhand:-
Milk Market in major cities of Jharkhand
AVG. SALES SUDHA NAND AMRIT SHYAM MEDHA AMUL RADHA DAIRYFRESH
/DAY
RANCHI 55000 5000 NIL 8000 5000 NIL NIL 11000
JAMSHEDPUR 95000 10000 8000 2000 NIL NIL NIL 5000
DHANBAD 25000 NIL 2000 NIL 2500 1500 2000 NIL
No. of distributors of different brands :
No. of distributors of different brands

Jamshedpur Dhanbad Ranchi
No. of Dealers Sudha 17 3 6

Nand 11 - 3
Amrit 7 N/A -
Dairy Fresh 3 - 4
Shyam 3 - 2
Radha - 2 -
Medha - 2 3
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Brief summary of three markets and the players:
RANCHI SUDHA NAND DAIRY FRESH MEDHA SHYAM

MARGINS TO DISTRIBUTOS (Rs) 0.3 1 0.70 1 2
MARGINS TO RETAILERS (Rs) 0.8 1.2 1.30 1.5 2
NO. OF OUTLETS 600 40-45 45-50 25-30 35-40
VOLUME OF SALES 55000 5000 5000 3000 8000
PLANT LOCATION HATIA CHANDIL CHUTUPALU ORMANJHI NAMKUM
APPROX DISTANCE OF PLANT 10 70 25 20 15
DHANBAD SUDHA RADHA AMRIT MEDHA AMUL

MARGINS TO DISTRIBUTOS (Rs) 30-70 1 1.2 1 0.50
MARGINS TO RETAILERS (Rs) 0.8 1.2 1.5 1.3 1
NO. OF OUTLETS 450 30-35 25-30 25-30 25-30
VOLUME OF SALES 25000 2000 2000 2000 1500
PLANT LOCATION BOKARO DHANBAD HOOGLEY
APPROX DISTANCE OF PLANT 50 5
JAMSHEDPUR SUDHA NAND DAIRY FRESH SHYAM AMRIT

MARGINS TO DISTRIBUTOS (Rs) 0.35 1 1 2 1.2
MARGINS TO RETAILERS (Rs) 0.8 1.2 1.30 2 1.5
NO. OF OUTLETS 450 50-55 70-80 25-30 70-80
VOLUME OF SALES 100000 10000 5000 2000 8000
PLANT LOCATION JAMHARIA CHANDIL NAMKUM
APPROX DISTANCE OF PLANT 12 30 100
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79
16. REFERENCES
1) http://www.amul.com/organisation.html
2) http://www.indiadairy.com/tech_list_dairyplants_federations.html#Bihar
3) http://www.nddb.org/partners/compfed.html
4) http://www.indiastat.com/demographics/7/growth/116/stats.aspxhttp://www.indiastat.com/d
emographics/7/growth/116/stats.aspx
5) http://www.indairyasso.org/magazine/sep08/health_brief.htm#1
6) http://www.indiadairy.com/ind_dairyindustry.html
7) http://www.chillibreeze.com/articles_various/Dairy-in-India.asp
8) http://jharkhand.nic.in/districts.htm
9) http://ranchi.nic.in/blocks.htm
10) http://www.bihartimes.com/Newsbihar/2008/Nov/Newsbihar21Nov3.html
11) http://www.mapsofindia.com/maps/cities/
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80

Sip Amul Ranchi by Abhishek &amp; Vipul (Cimp)

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Sip Amul Ranchi by Abhishek &amp; Vipul (Cimp)

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A REPORT ON

POTENTIAL OF AMUL POUCH MILK IN RANCHI, JAMSHEDPUR & DHANBAD

SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF PGDBA DEGREE PROGRAMME

MR. MANOJ PRABHAKAR

ASST. SALES MANAGER

RANCHI DEPOT, JHARKHAND

ABHISHEK KUMAR (PGDBA/01/02)

VIPUL KUMAR (PGDBA/01/49)

CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA

Mr. Manoj Prabhakar

Asst. Sales Manager, GCMMF Ltd.

Ranchi Depot, Jharkhand

Mr. Manoj Prabhakar

Asst. Manager (Sales)

Ranchi depot, Jharkhand

Sub: - Submission of marketing research report on Potential of AMUL Pouch Milk.

Abhishek Kumar (PGDBA/01/02)

Vipul Kumar (PGDBA/01/49)

I. WM- Whole MILK

5.1 SCOPE OF THE STUDY

The major research objectives of the study can be underlined as below:

5.3 METODOLOGY OF THE RESEARCH

Secondary Sources of data:

Jharkhand is a state which is rich in mineral resources. It provided certain industries an

OCCUPATIONAL BREAK UP OF JAMSHEDPUR

30% 25% GOVERNMENT SERVICE

15% 12% PRIVATE SECTOR (ORGANIZED)

OCCUPATIONAL BREAK UP OF DHANBAD

10% BCCL/ COAL MINES

7.1 MARKET OVERVIEW

WM (fat -6%) SM (fat-4.5%) TM (fat-3%) DTM (fat-1.5%)

PLAYERS RANCHI JAMSHEDPUR DHANBAD

PLAYERS FUNCTIONAL IN JAMSHEDPUR

9.1 SUDHA JAMSHEDPUR:

Sl. No. Sourcing Mode of Transportation Milk Vol. in Ltr.

1 Barauni Rail 10000

Sudha Plant, Jamshedpur

STANDARDISED 22.90 0.30 23.20 0.80 24

 Distributor margin includes leakage and transportation cost.

It has 11 distributors in the Jamshedpur city. Distributorship is given on security deposit of

STANDARDISED 21.8 1 22.8 1.2 24

 It has a better distribution channel in comparison of other local market players

4 Average Sale (per day) 0.08 LLPD((Jamshedpur ),0.02 (Dhanbad)

STANDARDISED 21.3 1.2 22.5 1.5 24

4 Average Sale (per day) 0.05 LLPD (Jamshedpur), .05 (Ranchi)

STANDARDISED 22 0.70 22.7 1.30 24

PLAYERS FUNCTIONAL IN DHANBAD:

9.6 SUDHA (BOKARO PLANT):

STANDARDISED 22.45-22.90 0.30-0.75 23.20 0.80 24

6 No. of exclusive outlets 0

STANDARDISED 20.70 1 21.70 1.3 23

6 No. of exclusive outlets 0

STANDARDISED 22.50 .50 23 1 24

PLAYERS FUNCTIONAL IN RANCHI:

9.8 SUDHA (RANCHI):

6 No. of exclusive outlets 35

9.11 LOOSE MILK MARKET IN THREE CITIES:

150 small size Khatals of average supply 80 LPD.

RANCHI JAMSHEDPUR DHANBAD

9.12 SWOT ANALYSIS OF SUDHA:

 strong distribution network  Governmental board takes long time to

 Strong Presence pass any decision on concerns raised.

Sip Amul Ranchi by Abhishek & Vipul (Cimp)

Sip Amul Ranchi by Abhishek & Vipul (Cimp)

Respondent Name ________________________________________ Gender _