SUMMER TRAINING REPORT

ON

COMPARATIVE ANALYSIS OF MOTHER DAIRY

CALCUTTA WITH ITS MAJOR COMPETITORS
[For the partial fulfillment of MBA 2015-2017]
Training conducted at

MOTHER DAIRY, CALCUTTA

ACKNOWLDGEMENT
I am extremely indebted to the management of Mother Diary Calcutta for providing me
opportunity to undertake the project work in their esteemed organizations. I am extremely grateful
for all the guidance provided by Mr. Dhiman Sen (E.O. B.V. Officer) and Mr. Sanjeev Mukherjee
(Marketing Manager), and all other staffs of mother dairy Kolkata without whose help this project
would not have been possible.
I would like to express my sincere gratitude to our Placement Officer Mrs. Puja Singh Ghosh,
Army Institute of Management, whose role as a project guide was invaluable for the project.
My heart full thanks go to all the executives who helped me to gain knowledge about the actual
working and the processes involved in various step of the project.
NAME: NIRAJ CHAND
COLLEGE: ARMY INSTITUTE OF MANAGEMENT, KOLKATA
UNIVERSITY ROLL NO: 13600915060
UNIVERSITY REGISTRATION NO: 151360710060

DECLARATION
I, Niraj Chand, hereby declare that the MBA project report entitled COMPARATIVE ANALYSIS
OF MOTHER DAIRY CALCUTTA WITH ITS MAJOR COMPETITORS is a bonafied work
done by me based on the summer internship program that underwent from 18 th July 2016 to 17th
August 2016. I also declare that this report has been exclusively prepared for Mother Dairy
Calcutta and has not been previously submitted to this or any other institution for any course.

(Signature of the student)

NAME: NIRAJ CHAND

COLLEGE: ARMY INSTITUTE OF MANAGEMENT, KOLKATA

EXECUTIVE SUMMARY
The Internship Study was conducted in Mother Dairy Kolkata from 18/07/2016 to 17/08/2016. The
need to undergo this Internship Study is to fulfill the requirement of MBA degree. The main
purpose was to know the practical implication and policies of the company, the theoretical aspects
that we study during our course can be observed how exactly they are put into practice.
During the training on behalf of Mother Dairy Kolkata I have done a project report on the subject
of retailers feedback as well as customer feedback. This was a real experience of the world of
market apart book where a sale person have to give her full effort and energy to sale the product
and understand about the customers,
For the survey I was given area like Khiderpore, Alipore, Iqbalpore regions.
The report traces the growth and development of the company and gives the selected outline about
the services adopted by the company. The report also explains the values and gives a brief about
the quality of MOTHER DAIRY KOLKATA.
The study is to prepare the report on the internship training and submit the detailed and
comprehensive report. This will help the company to assess its strength, weakness to take necessary
action to improve the future growth.
I tried to make a detailed study on the retailers and customers feedback and tried to find out the
view point of the retailer and customers. Getting the response I tried to analysis the data into
information and make out real market position of mother dairy Kolkata.

INTRODUCTION
NEED OF THE STUDY:
The project was attempted to know the reason behind low sale of milk of mother dairy in Kolkata.
Despite of being first in the industry and having first movers advantages and the brand name, the
sale has fallen down incredibly due to competitors like Amul, Metro Dairy, Red Cow and others.
There is a need to revamp the company and position it all over again in the mind of the
consumers.In doing so firstly the grievances of the distributors and the retailers were required to b
solved in order to encourage them for push sale. Secondly study of consumers decision making
factors is required in order to understand to find out the market scenario.
With the help of the responses given by the consumers and data analysis, the company will be able
to understand its strengths, weakness, opportunities, and threats. The survey report submitted by
me will assist the company to take right decisions to increase the turnover and market share.

OBJECTIVE OF THE STUDY:

To compare Mother Dairy Calcutta with its major competitors.
Reason for decreasing market shares of Mother Dairy and to find out the measures that can be
adopted to increase the sale.
Finding out short time problem of the retailers.
To get feedback from the retailer, about their problem, satisfaction etc.
To find out problems of existing customers & how to solve them.
To get the retailer feedback.
To find out problems of mother dairy for low sale.
To give some suggestion to the mother dairy to improve their sale.

COMPANY PROFILE
Ma! The first word uttered by a child. Mothers Milk, the infants first food enriched with all the
vital ingredients-amino acids, vitamins, minerals, for growth and important of them all material
love after the mother has provide the bay with nourishment for as long as possible. She takes
over. MOTHER DAIRY KOLKATA makes the little infants first food an integral part of his/ her
diet forever. Hence, Mother DAIRY is with the focus being the development of the rural milk
producers.
Mother Dairy Calcutta-a Government of Bengals project, was started under operation Flood II of
National DAIRY Development Board. It was set up initially to cater to the demand of the Kolkatas
urban agglomeration spread over the Kolkata Metropolitan area, approximately 852 square Kms.
Mother DAIRY is also reaching out to be consumers of other districts. The commissioning of the
DAIRY started In July 1978 and the first Distribution Vehicle loaded with milk sachets rolled out
of the DAIRY in the morning of 8th December 1978. Initially, the management of Mother DAIRY
was looked after by the National DAIRY development Board. On 24th March 1982, then honorable
Chief Minister Shri Jyoti Basu Dedicated MOTHER DAIRY CALUTTA to the rural milk
producers and urban milk consumers of West Bengal.
Mother DAIRY safeguards the interest of the rural milk producers by encouraging cooperative
movement & marketing the surplus milk available from the villagers, thus helping the milk
producers to realize their own potential for organized endeavored & creation of more rural wealth
in the shape of Annand Pattern as profounder by Dr. V Kurien, the Milk Man of India. In
November 1996 the management of Mother DAIRY was taken over by West Bengal Co-operative
Milk Producers Federation Ltd.
It is selling Milk and Milk products Like Misti doi , Flavored Yoghurt, Plain Yoghurt, Paneer, Cow
Ghee, and Packaged Drinking Water. Now it has started diversifying its activity by selling the
product of other cooperative, unions of West Bengal and other states as Mother Dairy has a strong
Marketing network.
Under Operation Flood III in the year 1997 the processing capacity of the plant was increased from
400,000 liters per day to 600,000bliters per day.
In the year 2000, Mother Dairy Kolkata received ISO 9002 certification and in the year 2001
Mother dairy received HACCP certification. Mother Dairy has also received Environment
Excellence Award (2000-2001). In the year October 2003 Mother dairy Kolkata received ISO
9001:2000 and the certification agency is SGS India Pvt Ltd. A renowned London based
organization.

MOTHER DAIRY KOLKATA HERITAGE AND TRADITION:

Mother dairy Kolkata has first introduced poly pouch in Eastern India in year 1978.
Mother dairy Kolkata has first introduced loose milk selling through automatic coin
operated booth first in Eastern India in the year 1980.

Mother dairy Kolkata has first introduced the highly perishable cultured milk product like
Misti doi and Yoghurts through pilfer proof cup under sealed condition having 6 days selflife under refrigeration breaking the tradition of selling this product through earthen pot.

Mother dairy Kolkata has first introduced cultured milk products in Eastern India in most
of the trains especially in Rajdhani Express, Coromondal express, Bombay Mail operation
from Howrah and Sealdah.

Mother dairy Kolkata has first received the National Productivity award in the Eastern
India dairy industry.

Mother dairy Kolkata has first accredited the ISO 9001: 2000 Certification in the Eastern
India dairy industry.

Mother dairy Kolkata has obtained the HACCP Certification in the Eastern India dairy
Industry.

Mother dairy Kolkata has first received the Environmental Excellence award in 2000-2001
in the Eastern India dairy industry.

MOTHER DAIRY AT A
GLANCE
NAME: MOTHER DAIRY
ADDRESS: P.O Dankuni Coal Complex
DIST. - Hooghly, West Bengal
Pin No: 712310
DATE OF FOUNDATION: 8th December, 1978. Designed and erected by NDDB
TOTAL AREA: 10 Hectares
BUILD UP AREA: 8700 SQM (93612 SQFT) Milk Market share (in West Bengal): 25%
TOTAL NO. OF POINTS (incl. all Mini-dairies, Insulated Tank Points, Poly Pack Points, Free
Outlets and kiosks): 2500
OWN PRODUCTS : Cow Milk, Toned Milk, Double toned Milk, Full Cream milk, skim milk,
Paneer, Misti Doi, probiotic doi, Plain Yoghurt, Flavored Yoghurt, Ice creams & packaged drinking
water.
TRADED PRODUCT: Ghee, Paneer, Peda.
INSTALLED CAPACITY (Milk):60,0000 lits per day
AVERAGE PRESENT SALE: 250000 Ltr/day.
AVERAGE PRESENT SALE: (Misti doi & Yoghurt): 2500 Kg/Day.
AVERAGE PRESENT SALE (Paneer ): 2000 Kg/Day
AVERAGE PRESENT SALE (Ghee): 200 Kg/Day
AVERAGE PRESENT PRODUCT: 2000 Kg/day
ADVERTISING: Mother Dairy, Pride of Calcutta

RAW MILK RECEIVING SITE:

1. BHAGIRATHI Co-operative milk producers union ltd.
2. MIDNAPUR milk producers union ltd
3. DAMODAR milk producers union ltd HOOGLY
4. KISHAN , Nadia
5. BURDWAN co-operative milk producers union ltd.
6. SANGAM dairy, Guntur, Vijayawada.

7. MUZAFFARPUR, dst, Bihar.

8. ICHAMATI milk union (Barasat)

DIFFERENT TYPES OF MILK &

ITS
DEFINITION

MILK:
Milk is the secretion derived from complete milking of healthy milk animals.it should be free from
colostrums.
PASTURISED MILK:
Milk and milk products heated to at least 63 degree C for 30 minutes or to at least 71.5 degree C for
not less than 15 secs or to an approved temperature tie combination that will survey to give a
negative phosphates test. All pasteurized milk and milk products should be cooled, immediately
there until delivery. Milk products means standardized milk, recombined milk, toned milk, double
toned milk, skimmed milk and flavored milk, in the instances.
STERILISED MILK:
Milk heated to temp of 115 degree C for 15 min; or 145 degree C for 3 sec or an equivalent
approved time temperature combined to ensure preservation at room temperature for a period of
not less than 15 days from the date of manufactured sterilized milk will slow absence i.e. negative
turbidity test. Further sterilized milk should be sold only in the container in which the milk was
sterilized.
FLAVOURED MILK:
This may contain chocolate, coffee or any other edible flavored, edible food colors and cane sugar.
flavored milk should be pasteurized, sterilized or boiled.
STANDARDISED MILK:

It means cow milk or buffalo milk or a combination of these milk that has been standardized to
minimum of 4.5% fat by the abstraction or addition of milk fat or by the addition of skimmed milk
or by addition of recombined or reconstitute skimmed milk.

RECOMBINED MILK:
Recombined milk means the homogenized product obtain from milk fat, non-fat milk and water
recombined milk should be pasteurized and should show a negative phosphate test.

TONED AND DOUBLE TONED MILK:

Toned milk means the product prepared by admixture of cow milk or buffalo milk or both with
fresh skimmed milk or both with nonfat milk or solids or milk powder and water and by partial
abstraction or addition of fat from /to milk.it should be pasteurized and should show a negative
phosphate test. When fat or dry non at milk solid are used it should be ensured that the product
remain homogeneous and no deposition of solids takes place on standing.

SKIMMED MILK:
Skimmed milk means products from milk, which almost all the milk fat has been removed
mechanically.

Mother Dairy Milk helps your

Child :
An expecting mother should get nutrition for both the child in her womb and herself.
Her food should not only contain all the essential nutrients for both, but also has to be very safe.
Good health of the mother will only ensure proper development of the fetus, the development
bones, eyesight and other vital organs.
There cannot be any substitute of pasteurized Mother Dairy milk in this regard as it contains all
the nutritional elements - the energy giving carbohydrate and fat, protein of high biological value
for body development, vitamins, minerals and particularly rich in calcium for development of
bones, teeth, etc and is further enriched with vitamin - A, the factor for better eyesight. It is free
from bacteria.
All these factors will ensure a healthy mother giving birth to a healthy baby.
It also becomes the responsibility of the mother to provide food for the newborn baby through
mothers milk which is enriched by all vital nutrients from Mother dairy milk which the mother
shall drink. In any situation where the mothers milk needs to be discontinued or is restricted,
Mother Dairy milk takes care of that part also.

TYPES OF MILK AND MILK

PRODUCTS AVAILABLE IN
MOTHER DAIRY

Finished Milk
1. DOUBLE TONED MLK:

Its fresh its pure its co-operative milk with assurance of Mother dairy. Mother dairy double toned
milk - tasty and nutritious with low fat content. A dream come true, especially for all the calorie
conscious people who love the taste of milk but are worried of its cream content. Mother dairy
double toned milk complements your daily workout perfectly. So, to maintain complete harmony
between your body and soul youve got to fresh and pure.

Fat content - 1.55 - 1.65 %

SNF content - 9.05 - 9.15 %

DTM MILK

Compostion

[%]

Consumer Price [Incl. of all

taxes]

(100 gms contains approx.)

Homogenised &
Pasteurised, [ Enriched with Milk Fat
Vitamin A 2000 I.U Per1000 1.5
ml ]
Milk SNF
9.0
Added Vit A (I.U)
200

Pusti Rs.34.00/ Ltr in Poly Pouch

Proteins
3.50
Carbohydrates [g]

Rs.17.00/ half ltr in Poly

Pouch

4.70
Fat [gm]
1.5
Calcium [mg]
124
Available in - Poly Pouches [ 1/2 lts, 1 lts ]
Energy -

46 KCal/ 100 gms

Suitable for - Preparation of Coffee/Tea, preparation of Paneer. As it

contains low fat. It is ideal source of nutrition for adults & aged
people who are weight conscious.

2. TONED MILK:

Mother dairy bulk vended token milk healthy and tasty to the last drop. Homogenized to evenly
distribute the cream content, its thicker and a lot easier to digest. Its the magic of homogenization
that makes your kheer thicker and shake frothier. Fortified with Vitamin A, which is not only good
for your complexion but also helps prevent night blindness. Whats more, it gives your children the
energy to stay active through work and play.

Fat content - 3 %
SNF content - 8.5 %

SHELF LIFE: 2 Days under 4 degree C

TONED MILK

Homogenised &
Pasteurised, [ Enriched
with Vitamin A 2000 I.U
Per1000 ml ]

Compostion
[%]

Consumer Price [Incl. of all

taxes]

(100 gms contains approx.)

Milk Fat
3.0

No TM Pouch selling at
present

Milk SNF
8.5
Added Vit A (I.U)
200

Only through Mini Dairy/IT/NonRefrigerated Booth

Proteins
3.20
Carbohydrates [g]
4.50
MS Suswastha Loose Rs.34 .00/ Ltr

Fat [gm]
3.0

Rs. 17.00/ Half Ltr

Calcium [mg]
117
Available in - Loose [ Any Qty From Mini Dairy/Insulated Tank]
Energy -

56 KCal/ 100 gms

Suitable for - Preparation of different Bengali sweet dishes, ideal for

drinking purpose. As it is rich- in flavored due to moderate fat content.

3. COW MILK

Mother dairys cow milk has a yellowish tinge due to presence of an element called carotene and is
a good source of Vitamin A, B-12 and Vitamin D. Cow milk is considered to be easily digestible.
Whether poured on breakfast cereal or enjoyed alone as a cold glass of milk, this can be enjoyed
year around.

Fat content - 3.55 - 3.65 %

SNF content - 8.55 - 8.65 %

COW MILK

Homogenised &
Pasteurised, [ Enriched
with Vitamin A 2000 I.U
Per1000 ml ]

Compostion

Consumer Price [Incl. of all

taxes]

[%]

(100 gms contains approx.)

MS Tripti SM -

Milk Fat
3.5

Rs. 40.00/Ltr in Poly Pouch -

Milk SNF
8.5

Rs. 20.00/ Half Ltr in Poly

Pouch

Added Vit A (I.U)

200
Proteins

3.20

Carbohydrates [g]
4.50

M S CM Health PlusRs.10.00/ 250gms Poly Pouch

M S Neo Special CM-

Fat [gm]
3.5

Rs.38.00/ Ltr Poly Pouch

Rs.19.00/ Half Ltr Poly Pouch

Calcium [mg]
117
Available in - Poly Pouches [ 1/2 lts ]
Energy -

62 KCal/ 100 gms

Suitable for - Preparation of different Bengali sweet dishes, ideal for

drinking purpose. As it is rich- in flavored due to moderate fat content.

4. FCM (FULL CREAM MILK)

Mother dairy full cream milk- wholesome and healthy. Packed with energy and nutrition thats
essential for growing kids. It makes them stronger from within and keeps them active and healthy.
So before they go to bed, and after they rise give them Mother dairy full cream milk to keep them
healthy and wise and to see them grow faster.

Fat content - 6.05 - 6.15 %

SNF content - 9.05 - 9.15 %

5. CFM MILK

Fat content - .5 %
SNF content - 8.90 %

Milk Products :
SHELF LIFE:
Yoghurt: 8 days under 4C
Ice-cream: 1 year under -18C
Drinking Water: 9 months under normal conditions

MISTI DOI

Compostion

[%]

Consumer Price [Incl. of all taxes]

(100 gms contains approx.)

Milk Fat
3.8
Milk SNF
13.0

Rs 14 / 100 gms

Sugar
18.0
Natural Caramel
0.2
Available in - 100 gms pack in Polystyrene cups
Energy -

158 KCal/ 100 gms

In a nutshell - Relish the palatable and soothing taste of Misti Doi.

Fortified with Vitamin A, it has excellent nutritional value and food
value. It helps in digestion and keeps one's system cool. Mother dairy
Misti Doi is packed and shelled in pilfers proof caps in automatic
packaging machine ensuring right quality and quantity.

FLAVOURED YOGHURT Compostion

[%]

Consumer Price [Incl. of all taxes]

(100 gms contains approx.)

Milk Fat
3.0
Milk SNF
11.0

Rs 14/ 100 gms

Sugar
13.0

PLAIN YOGHURT

Permitted synthetic colours

( food grade) 7 added flavours

Compostion

[%] Consumer Price [Incl. of all taxes]

(100
gms contains
approx.)
Rs 13
100 gms cups / 400 gms
Available
in - 100
gms pack
in /Polystyrene
pouches
Milk Fat
Probiotic Doi 3.0Energy 71 KCal/ 100 gms
400 gms - Rs 26/ poly packet
In a nutshell - Mother dairy flavored yoghurt is a treat to your
Milk SNF
Butter Milk taste buds and is available in delicious flavors like vanilla,
11.0
200 ml - Rsstrawberry
12/ poly glass
pineapple, green mango, chocolate,
and pista. It
posses all the benefits of plain yogurt and is fortified with Vitamin
Peda(6 Pcs Pack) - A.
Rs.40
Available in - 100 gms pack in Polystyrene cups / 400 gms pouches
Energy -

71 KCal/ 100 gms

In a nutshell - The secret of longer life of the hill tribes of Bulgaria

for centuries was a daily diet of yoghurt. Yoghurt improves appetite,
vitality and vigor, cures intestinal disorder and controls cholesterol
besides having numerous other beneficial effects.

PANEER

Compostion

[%]

(100 gms contains approx.)

Consumer Price [Incl. of all taxes]

Rs 30/ 100 gms

Milk Fat (gm)

25

Rs 70/ 250 gms

Milk Protein (gm)

25

Rs 260/ 1 kg

Water (%)
50
Calcium (mg) Rs 1250/ 5 kg

600
Vitamin A (micro) 300

Available in - 100 gms/ 250 gms/ 1 kg / 5 kg(against order)

Energy -

312 KCal/ 100 gms

Suitable for - Direct consumption and preparation of different

delicacies

COW GHEE

Prepared form fresh cow milk

having cooked flavour

Consumer Price [Incl. of all taxes]

Rs 50 / 100 gms container

Rs 95 / 200 gms container

Available in - 100 gms/ 200 gms /
500 gms
Rs 210 / 500 gms container
Rs 400 / 1 kg container
Energy -

900 KCal/ 100 gms

Suitable for - Direct consumption and preparation of different

delicacies
In a nutshell - Mother Dairy Cow ghee is the richest source of Milk
Fat of all Indian dairy products.
It contains soluble Vitamins A,D,E and K that provide energy, Its
pleasing flavour, aroma and palatability makes it a desirable dietary
component as well as a valuable cooking fat. From time immemorial
ghee is considered as a source of nutrient in Indian diet.

PACKAGED DRINKING ISI marked packaged drinking

WATER
water

Consumer Price [Incl. of all taxes]

.5 litre - Rs 10
1 litre - Rs 18
Available in - .5 litre / 1litre/ 2
litre/ 5 litre/ 20 litre (jar)

2 litre - Rs 28
5 litre - Rs 60
20 litre (jar) - RS 70

[NOTE]* - Jar is returnable; Jar can be retained against security

deposit.
In a nutshell - It is produced using reverse osmosis technology with
multiple barrier filtration, ozonisation & ultra-violet treatment under
total aseptic environment. It is free from harmful chemicals, bacteria
and virus.

Distribution Network:

Mother Dairy Plant Or Franchisee Plant

LAD (Local Area Distributor)

Retailer

End Consumer

CURRENT SCENARIO

Mother dairy has a market share of around 33 % in the branded sector in West Bengal where it
sells 3.4 lakh liters of milk daily on an average and undertakes its marketing operations through
around 51 distributors and around 600 retailers in Kolkata itself. It has a huge advantage over its
competitors as it is the only player when it comes to sale of loose milk through token. Before the
entrance of competitors like Amul ,sale of loose milk through Mother Dairy booths was around 35
% of the entire sale in branded segment , when Mother dairy was the only player in the market.
However since last five years the sale is continuously declining and presently it is just 8-9 %.

OBJECTIVES AND POLICY

The principle work of the process section is to produce homogeneous pasteurized cow milk and
homogenous pasteurized double toned milk prepare from raw milk along with reconstituted milk ,
which is obtained from skimmed milk powder ,water butter and Vitamin A.

VISIONS:

With full dedication and team work, MOTHER DAIY KOLKATA shall strive to delight its internal
and external customers through quality products and services.
Create an environment where stake holders feel happy and system will be eco-friendly. Through
innovation, continuous learning and consistent improvement achieve sustained growth and
excellence.

MISSIONS:
To sustain market leadership in the production and marketing of a variety of liquid milk and milk
products with assured quality at an affordable price, covering all market segments and to maintain
the growth, prosperity and unity of all internal and external customers.

QUALITY POLICY:
Satisfy our customers with quality products and services.
Achieve and sustain growth and excellence.
Maintain a happy and fulfilling work environment.

ENVIRONMENT POLICY:
Be reactive and conscious about various Environment regulations.
Create and maintain a clean green belt in and around the dairy premises.
Always keep our environment safe, free from pollution and continual sustainable development.

QUALITY OBJECTIVES:
Provide regular and timely supply of milk and milk products at
convenient distribution points under clean and hygienic condition for
different segments of consumers.
Provide remunerative returns to milk producers and other associations.

Promote innovations, continuous learning and improvement.

SOCIAL OBJECTIVE:
Protect the rural marginal milk producing farmers from exploitation of profit earning
middleman.
Help them rear their cattle in hygienic condition thereby increasing production of Milk.
Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable
Price throughout the year, right at their door step.

PROCESS OF MILK
PRODUCTION
INTRODUCTION:
Milk is a vital drink for human beings too. Thats why its availability is necessary for the fitness of
the health. Raw milk received is very much perishable in nature. Therefore, quick processing of the
raw milk is the most important task in dairy. This makes the processing section a most important
section or one can say it is as the heart of the dairy industry
In the processing section various unit operation takes place, mainly pasteurization,
homogenization, clarification and chilling. this operation done in the specific unit where the milk is
send through pipelines.
Milk received from the reception dock is first chilled below 50c by sending the milk through chiller
plates where chilled water acts as a media of chilling. Then this chilled milk is send to silo
(container where milk is stored having about one lack capacity)
Milk is coming from different states and different unions of West Bengal to Mother Dairy. Milk is
processed to cow milk; toned milk, double toned milk and full cream milk. Finally milk is supply to
the society through road milk tankers people collect milk from mii dairy insulated tank and poly
pouches.

OBJECTIVES:
The principle work of the process section is to produce homogenous pasteurized cow milk and
homogenous pasteurized double toned milk prepared from raw milk along with reconstitute milk
which is obtained from skimmed milk powder, water and vitamin A.

DIFFERENT PROCESSES:
PASTEURIZATION:
Louis Pasteur develop this process .this is a process of heating milk to a suitable temperature below
its boiling point for predefined length of time and immediately cooling it is removed from heat
without affecting the physical ,chemical and biological properties. This process increase shelf life
and slow spoilage due to microbial growth. During pasteurization the milk is heated upto 72.60C
for not less than 15 sec & cooling milk below 40C immediately after heating.

HOMOGENISATION:
In this process the milk is subjected to high pressure due to which the large fat globules present in
the milk are broken down into tiny droplets.

The milk fat gets evenly distributed and milk appears whiter and thicker.

SUPPLY CHAIN MANAGEMENT:

1) Milk Procurement: Mother Dairy sources its requirement of liquid milk from dairy cooperatives and producer institutions. Milk is received from farmer cooperatives through insulated
tankers at 2C temperature in order to retain its freshness.
2) Milk distribution: -Tankers in the morning and in the evening bring in milk from the regional
collection centers. After collection the same tankers are utilized for the delivery of the processed
milk to the distributors. Mother Dairy has about 51 Distributors in the city of Kolkata. Each of
these LADs(Local area distributor ) place their demand by raising an invoice one day in advance.
The demand is also calculated using the Calendar Scheme, in this depending on the precalculated seasonal demands the outlets place their orders accordingly. In order to satisfy
immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that
they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers
are equipped with HAM radios.

DISTRIBUTION CHANNEL:
a) Token Distribution: Also, termed as Lohe ki bhains (metal buffalo), is an
Automated milk vending machine.
b) Distributors: The packaged milk is distributed via the distributor network

QUALITY CONTROL:
Stringent quality control methodologies are employed in Mother Dairy.
a) The milk is tested for adulterations and quality at the time of collection from the farmers.
b) The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a
temperature of not more than 4C and is subjected to 15 product and quality checks.
c) The Milk quality is checked repeatedly after each processing phase and the temperature is
judiciously maintained less than 4C always.
d) Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again.
e) The temperature of milk in the delivery trucks is always maintained less than 4C.
f) All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after
distribution. This is done in order to test the delivered milk and to ensure that the tankers are not
adulterated during distribution.
g) Since all the employed processing procedures are automated, no contamination by human hands
takes place.
h) To ensure milk freshness the collection and distribution points are always chosen such that the
travel time between them is always less than 36 hours.
Out of the total production about 9% goes directly to the institutions, 23% is the loose token milk
and the rest is distributed through LADs.

SWOT ANALYSIS
STRENGTH:
Low operational costs
Presence of established distribution networks in both urban and rural areas
Presence of well-known brands in FMCG sector.
The Company is equipped with wide range of products.
It has good research and development facilities.
Good infrastructural facilities.

WEAKNESS:
Low exports levels
"Me-too" products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban market.
Lack of work culture in terms of punctuality and meaningful discussions.
Lack of support from the top management.
Lack of quick decision ability.
Dependency on Govt. for taking decision.

OPPORTUNITIES :
Untapped rural market
Rising income levels, i.e. increase in purchasing power of consumers
Large domestic market- a population of over one billion.
Export potential High consumer goods spending
Scope of increasing the sales by the mean of advertisement and promotion.
Huge availability of Funds and Reserves.

THREATS :
Mother dairy has got stiff competition from competitors.
Major threats from political condition of the nation and changing of rules and regulation.
Changes in economic condition, Inflation and Deflation.

STUDY OF RETAILERS AND

CONSUMERS
RESEARCH METHODOLOGY
a)

INTRODUCTION:

Research is an art of scientific investigation through search for new facts in any branch of
knowledge. It is a moment from known to unknown. Research always starts with a question or a
problem. Its purpose is to find answers to questions through the application of the scientific
methods.
It is systematic and intensive study directed towards a more complete knowledge of the subject
studied.
As marketing does not address itself to basic or fundamental question, it does not qualify as basic
research. On the contrary, it tackles problems, which seem to have immediate to commercial
potential. In view of the major consideration; marketing research should be regarded as applied
research.
We may also say that marketing research is of both types problem solving and problem oriented.
b)

METHOD OF DATA COLLECTION:

1) Data to be collected
Data includes facts and figures, which are required to be collected to achiever the objectives of the
project. In order to determine the present position and satisfaction of mother dairy.

c) Primary data
The data that is being collected for the first time or to particularly fulfill the objectives of
project is known as primary data.
These types of data were
- The market share of mother dairy Calcutta
- The market share of other brands available in the market
- Responses of consumers
- Identifying pros and cons of the brand
The above primary data were collected though responses of consumers, retailers and LAD was
conducted though questionnaires for them.

d)Secondary data

Secondary data are that type, which are already assembled and need not to collected from
outside.
These types of data were
- Company profile
- Product profile
- Competitors profile
The aforesaid data were collected through internet.
2) Data

collection method

For given project, the primary data, this needed to collect for the first time, were much significant.
This type of information gathered through survey technique, which is the most popular and
effective technique for correct data collection. The survey was completed with the use of
questionnaires
-

Questionnaire for consumer

Questionnaire for retailers

3) Sampling
Sample is the group taken under consideration from the total group.
The small group represent the total group.in the project the market research, which was ask to be
studied was Khiderpore, Alipore, Iqbalpore Market but as it was possible to approach all the
respondents customer of the districts, hence a sample was selected which represents the whole
district. The areas selected for the sample are present further in the appendix.
4) Data

Evaluation

The data so collected were not simply accepted because it contained unnecessary information and
over or under emphasized facts. Therefore only relevant data were included in the report, which
helped in achieving the objectives of the project.

RETAILERS INTERPRETATION:
During the interview most of the retailers were satisfied by their sales considering the location and
competition in the market, however few who were not, considered decreasing quality as a reason of
loss of sales apart from competition with other brands. Also it was witnessed that there is no
competition from local dairy owners because they have a fairly differentiated market.
According to the majority the major competitor is Amul, with its vast marketing strategies ,
immense brand image and enormous quality of products, it has successfully captured the market.
However few of the retailers also believed that the local brands like Red Cow, Thacker dairy, Amrit
Fresh, Delight etc are emerging as great competitors. These brands are new and are giving huge
margins and incentives, which is leading to push sales.
The margin of Amul and Mother dairy is almost same in the area, however when compared to local
brands it is quiet less. When it comes to competitiveness according to the retailers Mother dairy is

not performing up to the mark. Their strategies does not meet their competitors. Brands like Red
Cow offer huge discounts to their retailers whereas Mother Dairy has no such schemes.

Thus, through applying root cause analysis we can come out with the main problems of distributors
and retailers leading to decreasing market share. The fish bone diagram demonstrating the reasons
is
shown
below:

Competition from local brands was one of the most contributing factor in decreasing market share.
The local brands not only give high margin to the retailers but they also have great incentive
schemes available for them thus influencing them for higher sales.
Quality is the next major problem. There is no consistency in the color or smell of the milk .Milk is
judged by its thickness, which again has the same issue. Many retailers complained that sometimes
the milk has a distinguishable ad smell which annoys customers. Also there is a concern that the
milk gets spoiled very easily compared to Amul.

Mother dairy has an incentive plan according to which the distributors are supposed to increase
sales incrementally by 1% every month. This target if achieve give the distributors an incentive of .
05p/ ltr on their total sales for the year. In order to fulfill the target and increase the sale, the
distributors give the retailers a part of their incentive, say .03p/ ltr. But even then it becomes very
hard for the retailers to increase sale as the demand in the market is limited. Thus in these cases the
only measure left is to increase sale through opening up of new retail points.
Here we can see the lack of initiative of the distributors and the company. During the survey it was
found that there were a lot of gaps in the area of the distributors. There was an unmet demand in
the market. The distributors accept that because of lack of initiative they were unable to meet the
requirements. During my project I identified few of them and thus new retail sale points were
allotted.

CONSUMER INTERPRETATION
(after getting results of questions filled by the consumers):

Which milk is better (Alipore) - Sample Size : 20 consumers

DATA ANALYSIS AND INTERPRETATION:

For Data collection, some points have been focused from the people with whom the matters were
discussed. I have interpreted these points in graphical presentation and made some analysis over
the Data collected. These are as followsA. SATISFACTION LEVEL:
1) Good- 48% 2) Average- 38% 3) Very Good- 10% 4) Poor-3% 5) Excellent- 1%

ANALYSIS:
According to the graph, the satisfaction level of user of Mother Dairy Milk is much hopeful for the
company. It shows a increasing type of satisfactory level. For this kind of feedback, Company
should be encouraged and motivated about their quality. However, supply and distribution
channel, dealer and retailers demand etc still have significant room for improvement, to hold the
market because customer satisfaction is the only way to sustain market status.
B. REGULARTY MAINTAINED IN SUPPLY AND AVAILABILITY:
1. Poor 15% 2. Average- 60% 3. Good- 20% 4. Very good- 3% 5. Excellent- 2%

ANALYSIS:
The supply and distribution needs to be taken good care by highly professional executives who
need to come up with logical ways and means to maintain a smooth flow in the supply and yet have
a check on the wastage. It is seen that retailers are not keen on grabbing the excess demand in their
territory due to uneven supply by LADs. This is an area the company should look into right away.

C.DEMAND OF PRODUCT OTHER THAN MILK:

1. Doi 45% 2. Ice cream 20% 3. Water 10% 4. Butter 15% 5. Ghee 10%

ANALYSIS:
Market demands milk of course, but in the some parts of Barrackpore, milk is the only supply
from Mother Dairy, but the market does have different other products apart from milk too. In
some areas inside the city too, supply of products are inadequate or discriminant. Other companies
re aware of that and they are trying to capture the side market. So if company doesnt consider this
demand they will lose a good market of these products. Calcutta Mother Dairy is supplying milk as
well as other products in Kolkata region but not concerned about this in the areas where I have
conducted my project.
D. PRICE OF THE PRODUCT :

ANALYSIS

The market price of mother dairy is low then other dairy. So by this the consumer are get
benefited.
Price needs to be updated time to time keeping the competition and the economy as parameters for
decision-making.
E. QUALITY OF THE PRODUCT :

ANALYSIS
According to the survey conducted, it is concluded that, more no. Of people consider Amul milk to
be best in quality.
However, Mother Dairy is the 2nd most popular brand in the targeted areas.
It is also mentionable here, that since the market developed by Mother had been lost significantly
after the government induce quota for sales and production of milk in 23rd Feb 2012.
According to survey on consumers, near about 40% of the market share was shifted towards Amul
and other brands since then which continued its emphasis even after the abolition of the quota in
2013. The quota was introduced as a measure to minimize wastage whereas some points had to
sacrifice a lions share of their sale to come in parity with suffering points.
The company should develop more scientific marketing procedures for sales maximization and
customer satisfaction through quality upliftment.

E. TASTE OF THE PRODUCT:

ANALYSIS
Customers were more attracted towards the viscosity of Amul milk, which uses more of milk
powder in producing milk rather than the higher percentage of raw milk in Mother Dairy milk.
Mother Dairy should also keep this in a checkpoint, whether to modulate their their ratio of raw
milk percentage in the product to improve the taste according the preferences of the customers in
competition to other brands.
Production capacity and procedures adopted in production should be in parity to the adaptation
and must not prove detrimental for the firm.

According to the average results of the costomers which brand of milk is better?

According to the customer amul and mother dairy both are better in milk the taste, quality of Amul
is better, but mother dairys milk is good for health and price is low. And it is available.
For tea Amul is the better, but for children mother dairy is the better.
And milk products of mother dairy is far way better then Amul like Mistidoi, flavored yoghurt,
probiotic yoghurt, butter milk, ice cream is better than any other company.
And the Paneer of mother dairy is very renowned for its taste.

CONCLUSION
This project was about the milk segment of Mother Dairy which due to intense competition from its
competitors is continuously losing its market share. So in this project different parameters on

which the sale of Mother Dairy depends are studied and analyzed from the distributor, retailer and
consumers perspective. The final outcome of the project is that the parameters which make
decision regarding the purchase of milk are Price, Quality, Smell, Taste, Advertisement and
Awareness. Milk market is a totally unpredictable market and the organization should be overcautious of any complaints that come into milk as it includes the sentiments of a mother for her kid
and she would not prefer to give anything to her kid for which she is not 100% satisfied. So the
company should take every step possible to contain these problems which in some way or the other
affects the sale of Mother Dairy and its retailers.

MAJOR FINDINGS:

One of the most important finding is that there was lack of skilled people.
The authority to take decision lies in the hand of Government which leads to take lots of
time in decision making.

There is no proper utilization of fund.

Scope of expansion is high but the steps are yet to be taken.

Prices of the milk and milk products were low as compared to the competitors.

People are unaware of the product and the services provided by the organization.

Unionization is there in each and every part of West Bengal and Mother Dairy

Kolkata is affected by union; which some becomes a threat for the development.

Distribution and channelization needs to be guided and managed with better expertise to
avoid multifarious complaints. Leakage and pilferage from LADs to retailers needs to be
minimized.

Preservation of products needs better care.

LIMTATIONS

The limitations of the project are as follows:

1. The study was conducted in Khiderpore, Alipore, Iqbalpore regions , so the limited area of the
study may affect the conclusions .
2. Some of the respondents could not give their proper response due to lack of time. They at times
tend to get biased and project a rosy picture which may affect the reliability and relevance of the
study
3. It might also be so that some respondents were not motivated enough to respond properly
although full attempt was made to keep it as unbiased as possible.
4. There was no provision of visiting cards for the summer trainees which hinder communication at
times
5. The duration of the project was short, so the scope of more in-depth evaluation was not possible

RECOMMENDATIONS
The recommendations for the company for further growth and profit are as follows:

Mother dairy should come up with schemes for customers along with retailers as it would be a
real boost to the sales and also it will help the company to get back its lost customers
During the survey it was found that many of the retailers were uninterested because they were
concerned about the storage of milk. Instead of refrigerators if dry ice boxes can be supplied free of
cost, sale would be increased. Also it would be economical and convenient. Later, if the retailer
drops out, the box can be collected back.
It was seen that the price of the largest selling variety of Mother dairy which is cow milk is Rs
24/ltr , and the competitor product of Amul is priced at Rs 25/ltr. Thus the price can be increased
and thereby margin of the retailers can be increased
Mother Dairy is ISO and HACCP certified. The consumers should be explained about it through
advertisements in order to make them aware
The organization should schedule these kinds of surveys on a more regular basis as at this point
of time Amul is really capturing the market and the organisation should take viable steps to meet
the expectations of its customers
If MD can do certain promotions as its competitor AMUL does, then it can attract sales.
Promotion with the help of boards, hoardings etc. and also it can advertise in radio
It was found during survey that Mother dairy milk gets spoiled quickly, thus a preservative
known as costic which is used by Amul can be applied to produce milk
In order to improve and maintain quality, total quality management measures should be
appointed. It was seen that due to lack of fixed percentage of raw milk mixed, the quality gets
hampered and remain unsteady. The extra milk procured should be used for production of milk
products which are in short supply and raw milk should be proportionately used in milk
production
The company should try to adopt a relatively short period incentive system in order to make it
more friendly and achievable
Mother dairy should come up with a scheme for consumers like discount on Mother dairy Ice
cream or any other product on supplying empty pouch packets of Mother dairy milk
LADs should be directed to supply milk to small retailers according to their preference of time
,sometimes late by 6.30 -7.30 . LADs should supply milk through cycle vans and small trolleys also
like competitors to areas where trucks cannot go and he should be responsible for leakage and
pilferage in the supply and should address grievances from retailers positively.

REFFERENCES
1. http://www.motherdairycalcutta.com/
2, http://en.wikipedia.org/wiki/Main_Page
Mother Dairy Kolkata
Company Brochure

ANNEXURE
Questionnaire
A ) RETAILER:
1. Name 2. Address 3. Phone 4. Avg daily sales (in lts):5. How would you rate your distributor drop out?
Satisfactory
Unsatisfactory
6. Which type of milk sells the most?
DTM
TM
FCM
CM
SM
7 .Rate Mother dairy on the scale of 1-5 on the following factors ( 1 as worst and 5 as a best)
8. Suggestions/Complains:
9. How would you rate your present sales ( loose / packaged) ?
10. Who is the major competitor of Mother dairy?
11. Any suggestions or complain

CONSUMER FEEDBACK FORM:

1. Name 2. Address 3. Avg daily consumption (in lts):
4. The brand that comes to mind when it comes to purchase of milk
A) Amul
b) Mother Dairy
c) Red Cow
d) Thackers Dairy
e) Haringhata
f) Others
5) Do you get delivery of milk at your home?
a) YES b) NO

Questionnaire

ACKNOWLDGEMENT
I am extremely indebted to the management of Mother Diary Calcutta for providing me
opportunity to undertake the project work in their esteemed organizations . I am extremely
grateful for all the guidance provided by Mr. Dhiman Sen (E.O. B.V. Officer) and Mr. Sanjeev
Mukherjee (Marketing Manager), and all other staffs of mother dairy Kolkata without whose help
this project would not have been possible.
I would like to express my sincere gratitude to our Placement Officer Mrs. Puja Singh Ghosh,
Army Institute of Management, whose role as a project guide was invaluable for the project.
My heart full thanks go to all the executives who helped me to gain knowledge about the actual
working and the processes involved in various step of the project.
NAME: NISHANT PACHORI
COLLEGE: ARMY INSTITUTE OF MANAGEMENT, KOLKATA
UNIVERSITY ROLL NO: 13600915061
UNIVERSITY REGISTRATION NO: 151360710061

DECLARATION
I, NISHANT PACHORI , hereby declare that the MBA project report entitled COMPARATIVE
ANALYSIS OF MOTHER DAIRY CALCUTTA WITH ITS MAJOR COMPETITORS is a
bonafied work done by me based on the summer internship program that underwent from 18 th July
2016 to 17th August 2016. I also declare that this report has been exclusively prepared for Mother
Dairy Calcutta and has not been previously submitted to this or any other institution for any
course.

(Signature of the student)

NAME: NISHANT PACHORI

COLLEGE: ARMY INSTITUTE OF MANAGEMENT, KOLKATA