Mother dairy
-
Upload
mankirat-singh -
Category
Marketing
-
view
117 -
download
1
Transcript of Mother dairy
Group Members:Akashdeep SinghIshan SrivastavaJaskaran SinghMankirat Singh
Milk Industry
• Worldwide, dairy farms produced about 730 million tones of milk in 2011 from 260 million dairy cows.
• India is the world's largest producer and consumer of milk, yet neither exports nor imports milk.
• New Zealand, the European Union's 28 member states, Australia, and the United States are the world's largest exporters of milk and milk products.
Milk Industry
• China and Russia are the world's largest importers of milk and milk products.
• Throughout the world, there are more than 6 billion consumers of milk and milk products. Over 750 million people live within dairy farming households.
World total milk production in 2009FAO statistics (including cow/buffalo/goat/sheep/camel milk)Rank Country Production (109 kg/y)
World 696,5541 India 110,0402 United States 85,8593 China 40,5534 Pakistan 34,3625 Russia 32,5626 Germany 28,6917 Brazil 27,7168 France 24,2189 New Zealand 15,21710 United Kingdom 13,23711 Italy 12,83612 Turkey 12,54213 Poland 12,46714 Ukraine 11,61015 Netherlands 11,46916 Mexico 10,93117 Argentina 10,50018 Australia 9,38819 Canada 8,21320 Japan 7,909
Demand
Milk Consumption per capita
• World milk consumption per capita increased +1% from 103.5 to 104.7 kg in 2010.
• Milk consumption per region:
• Asia: 39%
• Europe: 29%
• North America: 13%
• South America: 9%
• Africa: 6%
• Central America (incl Mexico): 3%
• Oceania: 1%
*The world dairy situation report 2011
Milk consumption pattern - World
Mother Dairy - Profile
• Parent Company National Dairy Development Board (NDDB)
• Category Milk and Food Processing• Sector Food and Beverages• Tagline/ Slogan Piyo Pure• USP India’s very own producer of milk,
milk products, beverages, foods, etc. at affordable rates and of premium quality
Brands1.Mother Dairy Plain Dahi2.Dhara3.Safal
Strength
1.Awell-recognized brand name2. Popular subsidiary brands like Dhara, Safal, b-Activ, etc.3.A wide variety of products like milk, dairy products, fruits,
vegetables, groceries, edible oil, beverages, frozen food, etc.4. It is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS
certified company5. An employee strength of 3000 people6.Strong and efficient supply chain network7.Procurement of milk from co-operative dairies and vegetables
from farmers, providing them with fair prices8.Technological advancement9.Popular for its quality and affordable price
Weakness
1.Limited number of Mother Dairy and Safal outlets
2.Difficult to maintain competitive pricing
3.Vegetables and milk products are perishable
1.Continuous demand of dairy products and other products by Mother Dairy
2.Open more number of Mother Dairy outlets
3.Market and advertise the products
4.Increase its market share by expansion in untapped markets
Opportunity
Threats
1.Strong marketing muscle by competitors
2.Unstable economic condition in India
3.Other competitor brands
Why SAARC countries?
• Constitutes about 23 % of the world’s population
• One of the fastest growing region
• Transformed through free trade agreements
• Sri Lanka and Nepal highest rank countries in ease of
doing business
• Business model will be same due to:
Similar geographical scenario
Cultural differences are similar
Taste preferences are similar
Similar consumption pattern
Comparison of SAARCS CountriesCountries Starting
a business
Ease of doing business
Getting electricity
PayingTaxes
Trade across border
Afghanistan 24 183 141 79 184
Bangladesh 115 173 118 83 120
Bhutan 92 125 72 86 165
India 158 142 137 156 126
Nepal 104 108 85 126 71
Maldives 50 116 108 134 132
Pakistan 116 128 146 172 108
Sri Lanka 107 99 100 158 69
Product Segmentation
Markets Segmentation
Market Segmentation
• Neighboring countries
• Low cost of Export
• Import friendly Law
• Milk deficit countries
• Good profit margin
Nepal
Market daily requirement – 8.2 million litres
Demand growth rate (milk products) – 4.2% YOY
Supply of milk – 4.26 million litres
Milk deficit (daily) – 4 million litres (approx.)
Milk consumption / person – 56 litres/ year
Recommended consumption (FAO) – 92 litres
Market Potential of NepalChain Ratio Method
Particulars Amount
Population of Nepal 27.8 million (2013)
Milk consumption 58 litres / person / year
% of Milk Consumers 80% i.e. (22 million)
Awareness (Year 1) 10% (approx.)
Adaptiveness of Brand 40%
Avg. price of Milk/litre Rs. 53
Sales forecast (units) = 58*22*0.1*0.4 51 Million Litres
Sales Forecast (Rs.) = 51 * Rs. 53 Rs. 2.7 billion /annum
StrategyMilk plant in Nepal
Particulars Amount (Rs) / litre
Cost of Raw Milk 35.91
Collection Cost 1.92
Processing Cost 4.01
Sales Cost 1.17
Administrative Overhead 8.51
Total 51.52
Particulars Amount (Rs.) / litre
Selling Price 53
Cost 51.52
Margin/Profit 1.48
Total Profit / Year Rs.75.48 Million (51*1.48)
Profits – Other Dairy Products
Net Margin/kg(INR)
22.05
18.27
13.23
2.52
10.08
31.5
18.27
PEST of Nepal
Political Factors:
• Open border with
India
• No harm to
Indian companies
• Reforms to
promote business
Technological Factor:• Obsolete
Technology• Major chunks are
imported
Social Factors:• Consumer buying
pattern• Health conscious• Rising Standard of
living
Economic Factors:• High Potential• Rising Economy• GDP- $21billion• Cheap work force
Competitors
• Sujal Dairy Company
• Chitawon Milk (P) Ltd
• HIMALAYAN DAIRY
• Omkar Dairy Industries Limited
Bangladesh
Market annual requirement – 1.46 crore tonnes
Production of milk- 38 lakh tonnes
Supply of milk – 21700 tonnes
Milk deficit – 98.20 lakh tonnes
Per capita milk availability – 82.9 ml
Recommended consumption – 250 ml
PEST of Bangladesh Political Factors:
Political Factors:
• Challenge to create a real participatory democracy
• Issues of good governance and corruption
• Political instability• government
Economic factors:• Inflation rate• Pursue foreign
investment actively• Reduction in poverty• Foreign trade
regulations and attitude towards foreign companies
Social factors:
• Growing concern over dairy products
• Large no. of people are aging
Technological factors
• Technological advancements
• Heavy reliance on imported tech.
• A National Science and Technology policy adopted by the Government
Market Potential of BangladeshChain Ratio Method
Particulars Amount
Population of Bangladesh 160 million
Milk consumption 30 litres / person / year
% of Milk Consumers 75%
Awareness (Year 1) 10% (approx.)
Adaptiveness of Brand 15%
Avg. price of Milk/litre Rs. 48
Sales forecast (units) =30*160*0.75*0.1*0.15
54 Million Litres
Sales Forecast (Rs.) = 54 * Rs. 48 Rs. 2.59 billion /annum
Competitors
Bangladesh Nutrition & Dairy Food Industry
Mark Dairy & Milk Products Limited
Aftab Milk & Milk Products Ltd.
JAM Group
Shelai Dah Dairy Ltd.
Strategy
• Free trade agreement between countries
• 70 new local markets called “HAAT” will open on common border (therefore easy export)
• Export from Warehouse - Kolkata, West Bengal
Particulars Amount(INR) / Litre
Final cost of milk to mother dairy – India
32.2
Cost of transport toBangladesh Market
1.7
Total 34 (aprox.)
Selling cost to distributors 40
Profit Margin 6
Total profit (6*54) Rs. 324 Million
Future Potential
Questions?