MARKETING MANAGEMENT

[DAIRY PRODUCTS]

SUBMITTED BY MARKETING MANIACS [TEAM 4]

HARSHITHA NARAYANI R [CB.BU.P2MBA20059]

JANMAJAYA PRADHAN [CB.BU.P2MBA20062]

PRINCE V [CB.BU.P2MBA20097]

RAMYA PRABA T [CB.BU.P2MBA20100]

SASIDHAR R.A. [CB.BU.P2MBA20115]

Under the Guidance of

Dr. Deepak Gupta

[Professor, School of business, Coimbatore]

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 ACKNOWLEDGMENT

We would like to express our gratitude to Dr. DEEPAK GUPTA, PROFESSOR Amrita
School of Business Coimbatore for giving us an opportunity to do this project and also for giving
us immense support to complete this study. We would also like to thank our parents and friends
who helped a lot in finalizing this project within the limited time frame.

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 ABSTRACT

Huge numbers of small dairy farmers are scattered throughout the Chennai capital region.
They have become a major contributor to the production of fresh milk. Dairy supply industry plays
a crucial role in collecting fresh milk from dairy farmers, pre-processing and selling fresh milk to
large industries and end customers. Some dairy companies will be further involved by processing
fresh milk into dairy products. The role of these dairy companies is essential to increasing the
competitiveness of dairy farmers against one another. The main focus of this project is to create a
new dairy supply company. We use both primary and secondary data analysis to consider the
prevalent condition of the dairy supply chain and collaborative analysis in order to achieve
consumer preference as the basis for our new market growth.

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 TABLE OF CONTENTS

1. Introduction 6

a. Introduction to the Team and Project 6

b. Rationale for the Business and Location Choice 7

c. Background Details on your Chosen Product Category 7

i. Market Size and Growth Rate 7
ii. Market Structure and Major Brands 9

2. Discovering the Distribution Channel Structure for your

Chosen Product Category 10

a. Distribution Channel Structure for Dairy Industry 10

i. Number of Channel Levels 11
ii. Roles of the Channel Partners in a Distribution Channel 12

b. Major Channel Management Issues 13

i. Channel Conflict 13
ii. Other Channel Issues 13

3. Distribution Channel for our Dairy product business, Moo Dairy 13

a. Customer Distribution Related Needs 13

i. Primary Research 13
ii. Secondary Research 16

b. Business’s Strategic Distribution Related Objectives 16

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 c. The Major Distribution Alternatives Evaluated &
Rationale for the Alternative chosen 17

d. The Distribution Channel Details & Reasons 18

e. Pricing and Cost Analysis of our Business 19

4. Conclusion 21

a. Key Issues You Anticipate in the Implementation

of your Distribution Channel Design 21

b. Your Major Learnings about Distribution Channel Management & Design 22

5. Appendix 23

a. Transcript of survey conducted regarding usage of dairy products 23

b. Individual Group Member Product Category Distribution Structure Reports 27

6. References 30

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1. INTRODUCTION:

A. Introduction to the team:

This report is presented by “Team Marketing Maniacs”, Section-A, MBA Batch 2020-
2022 from Amrita School of Business Coimbatore on the topic of home-made dairy products
which belongs to Dairy Industry Category. Team members are:

 HARSHITHA NARAYANI R [CB.BU.P2MBA20059]

 JANMAJAYA PRADHAN [CB.BU.P2MBA20062]

 PRINCE V [CB.BU.P2MBA20097]

 RAMYA PRABA T [CB.BU.P2MBA20100]

 SASIDHAR R.A. [CB.BU.P2MBA20115]

Introduction to the Project:

India is a country of opportunity for investors seeking a new and emerging market. Dairy
food processing and supplying has a tremendous potential for massive returns. The dairy food
market in India has seen an increase in recent years due to an increase in demand for dairy products
driven by an increase in milk production. The supply industry also plays a crucial role in collecting
fresh milk from dairy farmers and selling fresh milk to the end customers. Tamilnadu is placed
among the best ten milk producing states in India with a daily average of 206 lakh liters per day.
The state has a very vibrant dairy cooperative sector with cooperative dairy farmers scattered
throughout the state. Capital city Chennai has the most potential for the milk business.

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B. Rationale for the Business and Location Choice:

India is the world's largest milk producer with a milk production of 187 million MT, almost
equal to the combined yield of paddy and wheat. The nation has almost 1/3th of the world's bovine
population, accounting for 30.7% of the entire world cattle inventory. There is so much potential
for milk business in India. For this project, we are going to analyze the milk business in Chennai
and start our business based on the findings.

Location Justification:

● We have chosen Tambaram, Pallavaram and Chrompet because they are the densely
populated areas in Chennai.
● There are many Gated communities in our desired locality which will be a great helping
factor for our direct distribution channel.
● We have found a distributor “Shri Kamdhenu Milk Centre” Currently located in
Chrompet has promised to promote our idea.
● We have a steady supply of fresh milk from the cow farm which is located at the outskirts
of Chennai which is easily accessible from our location.

C. BACKGROUND DETAILS ON YOUR CHOSEN PRODUCT CATEGORY:

Market size and Growth Rate:

 India has been the leading producer of dairy product since 1998 with a sustainable growth
in the milk and milk products worldwide. Dairy activities form an essential part in Rural
India which provides a scope for larger number of employments in the rural sector.

 Nearly all of the dairy products in India are Consumed domestically with the majority of
its dairy products being sold as fluid milk.

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 According to the Govt of India 2020: Market Size, Market Growth, Price, Segments,
Cooperatives, Private Diaries reached a value of ₹ 10,527 billion in the year of 2020.

 India’s dairy industry is worth ₹ 5.4 trillion by value with a growth rate of 15% during
the period of 2010-2016.

 Consistent Growth rate is being maintained in the Dairy Industries during the period of
2016-2020 and attained a value of ₹ 9.4 trillion. Further report states that India is
expected to emerge as the largest dairy producer by the end of 2020.

 Along with the increasing growth rate of the dairy industry in India serves as a tool of
socio-economic development.

 Keeping this in view, the Government of India has introduced various policies and
initiatives aimed to develop the dairy sector in India.

 The consumption pattern of dairy products in India is quite unique. It has been noticed
that Indian consumers are extremely health conscious and the demand for the value-
added products is increasing at a steady pace. Life style alternation led the consumers to
shift its focus more towards the value-added products like sugar free milk, zero lactose
milk. As the spending power of the Indians is increasing, so is their willingness to buy
healthier, super foods which we call it as value added products.

 Expanding the production of milk, strengthening and expanding the rural milk
procurement infrastructure is the prime focus of the Govt of India. The growth of the
private sector dairy farms and entry of the international players in the Dairy industries,
attracted by the size and potential of the Indian market shifted its focus to value added
products such as cheese, yoghurt, probiotic drinks.

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Market structure and major brands:

Market structure:
Most of the Indian Dairy Markets are unorganized. In the unorganized dairy market, the
milk is sold by means such as milkman and vendors. These milkmen collected the raw milk directly
from the farmers and sold it in the market.
In the organized sector, cooperatives, private dairies set up efficient channels of milk
procurement and distribution. Raw milk is collected from the farmers after which it is processed,
packed and distributed to the various channels
.
Indian dairy market is segmented on the basis of two broad categories:
i) Milk Dairy Products
ii) Value added category

Products in Dairy sector:

Milk, Flavored milk, Goat milk, Camel milk, Curd, Yoghurt, Buttermilk, Lassi, Ghee,
Butter, Cheese, Paneer, Cream, Khoya, Ice-cream, Dairy sweets, Sweet condensed milk. More
than 20 products are covered under the value-added category such as flavored milk, curd, lassi,
buttermilk, milk powders and many more.
Key Major Brands:
1. Amul
2. Aavin
3. Mother Dairy
4. Saras
5. TN Cooperative
6. KMF
7. Hatsun Agro Product Ltd
8. Aavin
9. Hatsun and
10. Milky Mist.

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2. DISCOVERING THE DISTRIBUTION CHANNEL STRUCTURE FOR
YOUR CHOSEN PRODUCT CATEGORY:

a. Distribution channel structure for dairy industry:

Basically, for any business to produce any good or services, building good relationships
with upstream channel members such as suppliers as well as the downstream channel members
such as the wholesalers and retailers are equally important. So, an extensive understanding of the
customer’s needs as well as the distribution channel is necessary for any business to provide value
to its customers.

Marketing channel (or the distribution channel): It is the set of interdependent

organizations that make a product or services available for use or consumption by any customers,
business users.

A distribution channel consists of people, structures and systems that enable goods and
services to be transported from the manufacturer to the end consumers. So, a well-designed
channel will form the route through which products, services, information and finances will flow
from the manufacturers via intermediaries (called channel members) to the end consumers.

Most commonly known channel intermediaries such as Distributor, Wholesaler or Retailer.

There is one more channel intermediary called Carrying and Forwarding agent (or C&F agent).
Each of the channel members earn profits that are included in the price of the product. The sum
total of the profits earned by channel members is called channel profit. These are also investments
made by each of these channel members and the net profit earned on these investments is known
as Return on Investments (ROI).

The channel members/distribution members add value to the products in the dairy product
categories. In the dairy industry, where the products need to be in constant check to ensure the
quality of the product.

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 Members of the marketing channel perform many key functions:

i) Information Gathering
ii) Promotion
iii) Matching
iv) Negotiation
v) Physical Distribution
vi) Financing
vii) Risk Taking

i) Number of Channel Levels:

Companies can design their distribution channels accordingly to make their products and
services available to the customers in various ways. Basically, there are two types of types of
marketing channel depending upon the availability of the marketing channel:

Direct Marketing Channel: A Marketing Channel that has no intermediary levels

Indirect Marketing Channels: A Marketing Channel containing one or more

intermediary levels

In the Dairy Industries, Usually the length of the channel lies between 1 or 2 depending
upon the type of dairy product distributed to the customers. So, it follows an indirect market
channel since milk and dairy products is a common commodity consumed by the customers.

The number of intermediary levels indicate the length of the channel in marketing. Channel
length basically refers to the number of intermediaries in a particular distribution channel between
the producer and the consumer. In the case of dairy industries, the number of intermediary levels
depends upon the type of the dairy product. Usually, the number of intermediary levels for the
dairy industries is either 1 or 2.

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ii) Roles of the Channel Partners in a Distribution Channel:

Distributors: Distributors deal with providing the goods and services to the retailers for
the sole purpose of reselling the product. It provides a sales and marketing service to the companies
that are unable to provide the services to the customers directly. So, Distributors can act on the
behalf of one or more companies. In the dairy industry, the role of distributors is vital in providing
the milk and other dairy products to the retailers ensuring the quality of the dairy products by
keeping them in cold storages.

Retailers: In today’s modernized market, Retailers play a vital role in the supply chain
connecting many suppliers as well as distributors to the customer. Retailers have a significant
influence on the what products consumers want to buy, and how they use and dispose them.
Retailing can be defined as the set of activities involved in providing and selling the goods or
services to the final customers for business purposes.

Retail dairy purchases are increasing due to its growing demand within the Indian market.
Basically, most of the dairy products are either available in convenience stores as well in the big
super markets. Convenience stores are the small stores that carry a limited line of convenience
goods. Most of the customers prefer to buy the milk from the convenience stores and dairy products

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such as cheese, butter from any supermarket in urban areas. In the rural areas either the milk is
available locally and few customers buy the milk from the kirana stores.

b) Major Channel Management Issues:

I) Channel Conflict: Basically, the disagreement among the marketing channel members
on any particular roles, goals and rewards leads to Channel conflict. Basically, the channel
conflicts that happen between the same level of the marketing channels known as the Horizontal
conflicts and the conflicts that occur at different levels is known as the Vertical Conflicts. In the
case of the dairy industries, channel conflict generally arises at different levels due to several
reasons like inconsistent delivery of the milk and dairy products, improper storage facility for the
milk and dairy products as a result of which the retailers are unable to sell the milk and dairy
products to the consumers.

ii) Other Channel Issues: Other conflict in the channel may arise due to selling of the
dairy products out of their own territory and try to sell their dairy products in other areas which
often leads to conflict in the distribution channel. Some conflict in the takes the form of healthy
competition to provide the quality and fresh products to the customers on time. However severe
or long-lasting competition can disrupt the flow of the distribution. So proper implementation of
the channel is vital for any business.

3. DISTRIBUTION CHANNEL FOR OUR DAIRY PRODUCT BUSINESS,

MOO DAIRY:

A. Customer Distribution Related Needs:

1. Primary Research:
A survey was conducted involving people from different places regarding their
usage of dairy products. We collected responses from 60 respondents and gained helpful
insights from their response as to their consumption of milk and milk products.

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● All 60 respondents have answered in the affirmative regarding usage of milk and
milk products.
● 87% of the respondents have answered that their consumption is on a daily basis,
which shows that dairy products are in constant demand.
● 95% of the respondents buy milk regularly so focus on supply of milk is imperative.
● Milk products like curd, butter, ice-cream, cheese and others have also been bought
by the respondents.
● The main competitor is Amul with 30% of the respondents using this brand of dairy
products.
● Unbranded i.e., direct from farm milk and milk products are bought and used by
1/4th of the surveyed population. This has been attributed to the fact that people
have started to prefer natural, unadulterated dairy products.
● Aavin has been found to be the go-to brand for Milk mostly.

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● More than half of the respondents (55%) procure their milk through daily morning
deliveries arranged with 42% of the respondents procuring dairy products by
personally shopping for them.
● Quality and freshness have been found to be most important to the respondents with
90% consideration for both. It shows a preference for dairy products that retain
these factors

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 ● Half the respondents do not prefer online means of procuring dairy products but
1/4th of the survey population is willing to try the online means.
● Big basket and amazon are found to be the go-to online procurement means for
dairy products, though more than half of the respondents (52%) do not have a
preference regarding online procurement platforms.

2.Secondary Research:

(i) secondary research was done:

● Through google and google maps to analyze the population and the number of retail stores
in order to choose a particular location which will be beneficial for our business to target
our consumers
● Referring to several websites of the competing dairy industries and distributors to learn
their channel distribution pattern and how can we capitalize on their weaknesses to enhance
our business

B. Business’s Strategic Distribution Related Objectives:

❖ Quality Maintenance is our core objective.

❖ Quick delivery of products with the freshness of obtaining it directly from farms
❖ Ensure that the distribution processes do not involve artificial processing and
adulteration
❖ Be true to our sources i.e., farmers and our customers
❖ Take good care of our customers and our sources.
❖ Ensure that distribution related conflicts do not arise
❖ Reserves of the product(s), demand and distribution means should be consistent
with each other.

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C. The Major Distribution Alternatives Evaluated & Rationale for the
Alternative Chosen:

In planning a distribution strategy, an organization should consider the worth added by

channel and market rate of rise. Distribution in its strict sense means the distribution, delivery or
transport of products or services. Distribution is a process or a sequence of transactions that puts
products produced or imported into the hands of the final customer.

In the delivery process, the products are passed from owner to owner before they reach the
final customer. Distribution is a network by which the output of the manufacturer is sold. Any
chain of organization from supplier to customer, including middlemen, is referred to as a channel
of distribution.

Major Distribution Alternatives Evaluated are given as follows:

Commercial agencies: They are involved in the selling of milk and milk products in the context
of non-organized and organized agencies.

(i) Unorganized agencies mostly involve the milk producers.

(ii) Organized agencies shall have Mid-scale dairy units and large-scale dairy units.

(i) Unorganized agencies: there are two major agencies in the unorganized sector-the milk
producers. These milk producers supply a substantial amount of milk. These vendors usually pay
money to the milk farmers in the villages and collect milk from them twice a day and arrange for
them to be transported from the villages to the towns on their bicycles. These systems are
accessible at the location where transport facilities such as tongas, taxis, trucks and railroads are
available.

They provide the customer with milk at their doorstep and hence the customer gets the service.
They deliver it straight to their buildings. There are also some other cycle vendors, although their
number is small, they supply milk to the vendors' as well as to individuals directly.

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(ii) Organized agencies: Usually in the organized agencies, on a wide scale, the dairy industry
uses modern technologies and produces uniform products. They gather milk from their storage
depots and deliver it to their shops. Milk plants by means of their own refrigerated milk tankers
for manufacturing and the production. They maintain the consistency of the goods recourse to
adulteration in order to preserve their brand reputation and offer their competitors a tough battle
under dynamic marketing conditions.

Co-operatives: Another way is to sell milk to Co-operatives. In Chennai, Unions buy milk from
the Milk Producers' Cooperative Societies (MPCS), process and sell it to customers. The surplus
milk is sent to Chennai Metro Dairies or Feeder Balancing Dairies for sale.

D) DISTRIBUTION CHANNEL DETAILS & REASONS:

Area of our business -

Tambaram, Pallavaram and Chrompet (Chennai) within a span of 8 km.

Direct and Indirect channels:

 We are choosing both the direct channel and indirect channels.

Reason:
 For Customers in gateway communities who are near to our factory we deliver directly to
their respected houses, which gives them a personal touch and since it is a gateway
community it won't take much of the labor to provide the service.

 The main reason for this technique is like in the gated community the “Word of mouth”
would be more efficient.

 For other areas other than the one mentioned earlier we will follow an indirect Distribution
channel where we make the distributors promote our brand by giving them a rate lesser
than the market price for the initial period.

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  The reason behind the initial discount is to make our brand known to the customers since
the discount will make our distributors promote our goods to the retailers.

Omnipresent:

 We are making our product “Omni present” by selling our product through the retailer
shops and we will circulate our WhatsApp number so that it will be made visible through
our retailers’ shops and in our product label, so that the customers who need our products
can use the option and order through online.

Channel Length:
The length of the distribution channel of our products consist of 2 entities namely the
distributors and retailers at the same stage.

Intermediaries
In our distribution channels we have two intermediaries namely
● Distributors
● Retailers

E) PRICING AND COST ANALYSIS OF OUR BUSINESS:

For Milk:

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For Milk Products:

Expected Revenue Generated from our Business:

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Cost analysis:

 We took a loan of Rs 12,00,000 for 5 years from the bank in order to start our
business.

 We have to pay an amount of Rs 28,051 each month for the next 5 years to repay
the loan.

 Total expected revenue generated monthly: Rs 2,94,000.

 Total cost incurred monthly: Rs 28,051(Loan amount) + Rs 72000(Other costs) =

Rs 1,00,000.

 Total Profit Earned: Rs 194,000.

 Initially the growth rate will be low since we are new to the business.

 But by taking innovative steps and brand awareness, the growth of our business is
possible.

4. CONCLUSION:

a) The Key issues we expect in the implementation of our distribution channel:

1. Competitors:
Based on our data collected, 75 percent of the dairy market is already occupied by
the major brands like Aavin, Aarokiya etc and 25 percent is occupied by the minor brands.
Buying the business share from the prominent competitors (75%) is a bit more difficult where
else in case of capturing the place of the minor competitors, we have to make our product
available in the nook and corner of our target areas.

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2. Timely delivery of the Milk Products:

There are certain issues in maintaining the direct channel, since milk is an essential
product, we should make sure that the milk products reach the customers in time without any
delay. And we should also hire enough employees so that they deliver the requested products
on time in their respective locations.

3. Customers Reach:

Since we are new to the Dairy Business, we are not sure how much our customers
will prefer our brand over the others. It won’t be a problem in our direct channel since we are
giving a personal touch of our brand to the customers where else in case of the indirect channel,
we have to initially take some measures to make the distributors and customers purchase our
product and get the initial touch of our brand products.

b) Major Learnings from this Project:

The dairy industry must incorporate the feed scheme, genetic records, automated
milking systems, milk transport and processing facilities, administrative duties and professional
workers to deliver the best value to the customer. From this project, we learnt about the different
distribution channels, the milk vendors use to deliver milk to their customers. The main thing is
getting to know what our customers want. In the context of distribution, it is the service they expect
to get. Most customers prefer to buy at the corner of their house rather than going to a retail outlet,
which is miles off from their home. We also learnt about the market structure of the milk business.

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5. APPENDIX:

A. Transcript of the survey conducted regarding Usage of Dairy products:

As a part of a Marketing Management project, this survey is intended to inform us about dairy product
usage on a daily basis.
Thank you for taking time to participate in this survey!

1. Age Range of respondent *

10 - 20 Years
20 - 30 Years
30 - 40 Years
40 Years and Above

2. Location of Respondent *
____________________
Your answer

3. Do you use Milk or milk products? *

Yes
No

4. How often do you use them? *

Daily
2 - 3 Days a week
Weekly
Monthly
Rarely

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5. What are the milk and milk products you use? (Choose all that apply) *
Milk
Curd
Butter
Cheese
Ice-creams
Milk powders
Cream
Other: __________

6. What Brand of Dairy products do you majorly go for? *

Amul
Aavin
Mother Dairy
Nandini Dairy
Hatsun
Heritage
Milky Mist
Unbranded (Direct from farm)
Other: ____________

7. How do the Milk and milk products reach you? *

By personally shopping for them
Daily morning delivery
Other: ____________

8. What are the factors you would consider when choosing Milk and milk product brands to
buy? (Choose all that apply) *
Taste

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 Quality
Freshness
Nutrition value
Price
Availability
Other: ____________

9. Would you consider using Online platforms to buy Dairy products? *

Yes, I am already using them
Yes, I would consider it
No
No preference

10. If you would use online platforms to buy dairy products, which online platform would you
choose? *
Big Basket
Grofers
Amazon
Flipkart
No preference Other: ____________

Business name: Mannvasanai (Offering natural, direct from farm, dairy products):

● Sourcing from farms and dairy farmers with the longest source distance of 110 km,
Tindivanam
● The farm owned by the business is not enough to supply to customers so external farmer
sources are sought too
● Transport vehicles are freezer equipped mini-trucks which is kept at minus 4 degree Celsius
constantly to maintain freshness always

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● Packaged in glass bottles that are extensively sterilized daily. Two batches of bottles so
each batch is alternated every other day
● Bottle caps also get alternated in two batches too but are thrown out after a week of use
due to its metal nature
● The business deals only in sourcing the milk and milk products and filling/packaging and
distribution, thus there is no added chemicals, diluents or other additives
● No machines are used in packaging or filling for fear of particle contamination despite best
efforts, so manual filling by hand with gloves and other strictly sanitized manual means
● Bottles are sealed with a plastic seal with stamp of Mannvasanai on it, if unsealed or
tampered the customers have to report it to the business and it will be immediately replaced
without delay
● Delivery after packaging within 2 hours strictly for temperature maintenance
● Customers are advised to boil milk immediately after receiving it and can be kept up to 2
days
● No dealership has been sought out due to subsequent cost increase that will have to be
incurred
● Simple delivery system with few delivery boys who get paid ₹ 5000, the vehicles and
expenses incurred are paid by the business owners
● Until 10 pm on the previous day, order for different milk quantity or milk product can be
placed
● An updated list with that present day’s order will be given to the delivery boys who will
deliver accordingly, so the delivery network communication is efficient and clear to
facilitate last minute order changes
● At present 85 houses/ customers are being supplied by Mannvasanai.

END OF SURVEY TRANSCRIPT

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b. Individual Group Member Product Category Distribution Structure Reports
for their Town/City:

Name: Prince V
Roll number: CB.BU.P2MBA20097
Place: Thach Nallur, Tirunelveli.

My residential area is on the outskirts of the Tirunelveli city and so it enjoys both the Direct as
well as indirect market channel for the dairy product distribution. We can get the fresh milk from
the farm which is directly sold by the people of the cow farm.
There are also retailers who buy the pasteurized milk and other dairy products of popular brands
like Aavin, Hatsun etc. I enquired the milk man of my locality; he says that he collects the daily
milk from the cow farm and distributes it directly to the customers at their doorsteps in this motor
bike. He says that he covers more than 75 customers single headedly with a time span of 2. 30
hours. Thereby he follows the direct distribution channel where there are no intermediate entities.
I also enquired the milk man who distributes the Packed milk packets, He says that he buys the
Aavin milk packets approximately 40 liters per day from the Aavin dealers shop and then he
distributes these milk packets at the doorstep of the customers. And if their customers request for
others dairy products of Aavin he will purchase and deliver those items in the subsequent day.
Therefore, he follows an indirect distribution channel where there are two intermediate entities
like the retailers and the milkman.

Name: Ramya Praba T

Roll number: CB.BU.P2MBA20100
Place: Tirupur

My residential area is out of the city in Tirupur. I noticed that there are both direct and indirect
means of distribution of milk and milk products in our area. In direct distribution milkman will
directly deliver milk or milk product from the source (cow yard). He uses his own vehicle for

27
distribution. He will come twice in a day .one in early morning and other in late evening so we get
a very fresh milk every day. He is selling around 300 liters per day. There are many customers for
him due to high quality of milk and price.
In indirect distribution we will get milk in means of packets from dairy companies through
dealers to shops. Around my house we have Aroma, Hatsun and Aavin dairy companies. These
are the brands we get in shops. While I am approaching grocery shop, I came to know that liters
of milk sold in means of packets are very less than milk sold by milkman. Then I approached the
logistics manager of xxx dairy company to know their distribution process. They will transfer milk
from their company through dealers in respective areas to shops or other customers. They use milk
van to deliver products. They will know demand of milk and milk products for next day by
distributors from each area.

Name: Sasidhar R A
Roll number: CB.BU.P2MBA20115
Place: P. Velur, Namakkal.

My residential area is on the outskirts of Namakkal and thus enjoys both the overt and indirect
retail outlets for the sale of dairy goods. In direct delivery, a milkman will supply milk or milk
product straight from the source (cow yard). He will use his own vehicle for distribution. He's
coming twice a day, one early in the morning and the other late in the evening, so we get a really
fresh milk every day. It sells around 400 liters a day. Because of the good quality of milk and price,
there are many customers for him. In indirect distribution, we'll get milk through packages from
dairy firms to suppliers to shops. Beside my home, we have Aavin, Hatsun and Amul dairy
companies. These are the products we get in supermarkets. I asked the managers about the milk
purchases and got their detail and the customer preference.

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Name : Harshitha Narayani R
Roll number : CB.BU.P2MBA20059
Place : Chennai, Tamil Nadu

I live in a residential community called DLF Garden City OMR in Chennai, with a capacity of
around 1,800 families. We are presently buying milk and other milk products from a local dairy
business called Mannvasanai, who source their offerings directly from farms and dairy farmers. I
spoke to the owner of Mannvasanai to obtain an idea about their business and importantly their
distributional structure. The information proved to be helpful as their business structure was
similar to our business. Other than the unbranded locally sourced milk and milk products, branded
dairy products like Amul, Aavin, Mother dairy and such have a widespread network and there are
local dealers and retailers to ensure intensive distribution to the customer base.
There are Direct and Indirect channels of dairy product distribution in Chennai. Brands like Aavin,
Hatsun and such have daily early morning delivery to customers and thus maintain the distribution
network using distributors. They have processing units and factories in a few places in Chennai,
including one on Old Mahabalipuram Road. They also place their products in Retail shops, local
stores, roadside shops and more to ensure that customers won’t have to look far to buy their
products.
While speaking with a small scale, locally sourced farm dairy products business, the
following information was collected.

Name : Janmajaya Pradhan

Roll number : CB.BU.P2MBA20062
Place : Kollam, Kerala

I live in a residential area of Kollam. So basically, I started with finding the Local Kirana and retail
stores in my nearby areas to understand and find the opinion of the retailers about milk and dairy
product distribution in Kollam. So, I visited around 10-20 local retail stores, 2-3 super marts and
asked the retailers about the commonly purchased milk and dairy products, the kind of brand which

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is popular among the customers. To know more about the dairy industry, I asked some of my
friends who were working in the dairy industries to know more about the distributors and the
channel functioning of the dairy industry. Similarly, I contacted a few customers to understand
their needs related to the milk and dairy products. From my research and understanding, “Milma ''
brand is popular among the customers in Kollam. Unbranded milk is also equally preferred by the
customers. Most of the customers are looking for fresh and good quality milk, most of the
customers bring the milk from the locals because of lack of freshness in packet milk and storage.
So, we targeted this segment of people to establish our business in dairy industries to meet the
demands of the customers by providing good and quality milk as well as milk products at an
affordable price.

6. REFERENCES:

1. Top 13 Highest Milk Producing States in India 2020 | Trendrr

2. Top dairy products manufacturer in Chennai - AskLaila
3. Milk Distributors in Chennai - Grotal.com
4. https://www.indianmirror.com/indian-industries/dairy.html
5. http://www.marketingmo.com/strategic-planning/how-to-develop-your-
distribution-channels/
6. https://docs.google.com/forms/d/1VucVKzR1yWXp4ZwajhSYWSQVg3CYuhjW
xqfxyuc2KPc/edit#responses - Survey form and the responses collected.

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