Analysis of Marketing Strategy

ANALYSIS OF MARKETING STRATEGY OF K.K. MILK FRESH INDIA LTD

Project Report

ON

“ANALYSIS OF MARKETING STRATEGY OF K.K. MILK FRESH

INDIA LTD”Submitted in partial fulfilment of requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

To

Guru Gobind Singh Indraprastha University

New Delhi

Guided By: Submitted by:

MRS. NAVNEET KAUR HEMANT SINGH

Associate Professor Roll No.: 04813303912

Batch 2012-14

HMR Institute of Technology & Management

(Aff. to Guru Gobind Singh Indraprastha University, Delhi)

HMRITM 1


Certificate

This is to certify that the Project Report on

“Analysis of Marketing Strategy of K.K MILK FRESH INDIA LTD“

Submitted in partial fulfilment of requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, NEW DELHI

Is a record of bonafide project report carried out by

Hemant Singh

Under my guidance & supervision & that no part of this report has been submitted for the award of any

other degree/ diploma/ fellowship or similar titles. It is also confirmed that I, as a Project Guide, have

talked to Mr.Sharad Gupta, Manager and confirmed that Mr. HEMANT SINGH has undergone

Summer Training during the said period.

C/S

Mrs.NAVNEET KAUR (Prof V K Bhatia)

Designation: Associate Professor HoD, MBA Dept

HMRITM 2


STUDENT’S DECLARATION

I hereby declare that the project report on

“ANALYSIS OF MARKETING STRATEGY OF K.K. MILK”

Is an original work carried out by me at HMR Institute of Technology & Management, in the partial

fulfilment of requirement of the award of degree of

MASTERS OF BUSINESS ADMINISTRATION

All the particulars furnished in the project are true to the best of my knowledge and belief. It has not

been submitted by me in part or in full to any other University/ Institute.

HEMANT SINGH

Enrollment No:-04813303912

HMRITM 3


ACKNOWLEDGEMENT

I owe a many thanks to many people who helped and supported me during the writing of this project

report. My deepest thanks to Mrs.Navneet Kaur, the Guide of the project for guiding and for correcting

various documents of mine with attention and care. She has taken pain to go through the project and

make necessary correction as and when needed. I express my thanks to HoD, MBA Dept, Prof V K

Bhatia , for extending her support. I would also like to thank my Institute and my faculty members

without whom this project would have been a distant reality.

HEMANT SINGH

04813303912

HMRITM 4


EXECUTIVE SUMMARYMarket oriented smallholder dairying offers significant scope for diversification and augmenting

income and employment generation for small and marginal farmers. Like any other enterprise, the

profitability and sustainability of dairy production depends upon its cost structure and a remunerative

price, for which a good marketing outlet is crucial. Indian dairy sector has made remarkable progress

over the last few decades. The co-operative movement, specially Operation Flood, has been an

important driver of this progress and has played an important role in facilitating the participation of

smallholders in this expanding sector. Despite three decades of cooperative movement in India,

however, a large proportion of milk and milk products in India continues to be marketed through the

‘informal or unorganized sector’. Although the share of organized market has steadily increased over

the last three decades, the informal sector comprising middlemen, private milk traders and direct sale

from producer to consumer, still accounts for nearly 80percent of marketed milk and milk products in

the country. Trends indicate that, the informal sector will continue to play its dominant role in milk

marketing in the foreseeable future.

Further, nearly 85 percent of all the milk that enters the national exchange economy finds its way into

the urban areas. It is therefore the urban demand that is the main source of cash for rural milk

producers. It is estimated that of the 3700 cities and towns in India, only 778 are served by an

organized milk distribution network. Only 15% of the milk marketed is packed, of which 94% is in

pouches.

The informal market thrives on poor willingness of consumers to pay the extra costs of formal

processing and packaging. The informal market usually does not incur those costs and hence the

market margins between farmer and consumer could remain smaller . This also implies that the

informal market agents can afford to offer higher prices to farmers and lower retail prices to

consumers.

Consumer preferences reveal that the market for value added milk products is small and most buyers

and unwilling to pay for processing of any kind. Formal processes not only spend on quality control

and packaging but also on trade taxes and are thus able to market to a niche segmant only. Further,

most consumers perceive fresh milk to be of superior quality and hence prefer to buy loose milk.

Quality concerns such as bacteria levels in primary processed items like sweets and curd are often not

attributed high priority and it is suggested that consumers are themselves not particularly worried

about it.

Given the importance of an assured and steady market for milk and milk products and given that both

organized and unorganized market agents are likely to continue to play critical roles in the marketing

of milk, it is important to understand the micro-dynamics of market behavior of various market agents

so as to capitalize on their strengths for the benefit of poor rural producer. In the light of that

HMRITM 5


background, CALPI commissioned a desk study to compile and review available published literature

on marketing of milk in India with a focus on informal market intermediaries. Somewhat surprisingly,

the exercise threw up very few published studies with generalizable implications. Most studies either

had too narrow geographical and conceptual focus or simply lacked methodological rigor.

Available studies suggested following strengths and weaknesses of various marketing channels.

In a nutshell, the reviewed studies suggested that while the informal sector scores over the formal sector by

virtue of the fact that in many areas it is the only marketing channel open to the rural producer and other

factors related to, paying slightly higher prices, offering short term instant cash credit and providing milk

collection service at farmer doorstep, the formal sector provides an assured and permanent market as well

as a number of other livestock support services. Some of the studies also suggested that in areas where no

formal channels exist, informal traders resort to exploitative practices including under-weighing, charging

high interests on cash loans advanced by them, low prices and so on. Ray (2000) for example,

demonstrated cartelization by private traders leading to monopolistic price setting both for milk procured

by them and the interest

charged by them on the cash advances. However, most other studies failed to offer convincing evidence to

support their claims.

The key contribution of desk study was a reconfirmation of the lack of rigorous research on the structure,

conduct and performance of different market intermediaries in comparable production, marketing and

consumption contexts.1 Given the role both formal and informal sectors are likely to continue to play it is

recommended that CALPI should, in partnership with other stakeholders, sponsor a series of primary data

based studies to examine the functioning of formal and informal marketing chains including the marketing

and distribution costs of milk and milk products, impact of trade taxes and other regulatory measures on the

economics of formal and informal intermediaries, economic and social efficiency of different marketing

channels, and the impact of policy changes on the small farmers, consumers, middlemen and processors.

HMRITM 6


Table of Contents

Certificate by Organisation................................................................................................i

Certificate by College ........................................................................................................ii

StudentDeclaration………………………………………………..…………………...…iii

Acknowledgement..............................................................................................................iv

Executive Summary……………………………………………………...………………v

Chapter No. Chapter Name Page No

1 Introduction 1-16

1.1 Topic 2-7

1.2 Industry Profile 8-11

1.3 Company Profile 11-16

2 Objective of the Project/Study 17-18

3 Literature Review 19-20

4 Research Methodology 21-23

4.1 Research Design 22

4.2 Sampling Design(if any) 22

4.3 Sources of Data Collection 22

4.4 Drafting of Questionnaire(if any) 22

4.5 Limitations of the Study 23

5 Data Analysis & Interpretation 24-39

6 Findings & Recommendations 40-45

6.1 Findings 41

6.2 Recommendations 42

6.3 Conclusion 43-44

HMRITM 7


Bibliography 45

Appendices 46

HMRITM 8


CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION

HMRITM 9


Before going into much detail about understanding the marketing strategies in an overall economy, or

in context of the Indian dairy sector, I thought of first bringing in your knowledge, the current

importance behind the marketing concept and what has been the factor that has contributed in giving

so much of relevance to the marketing strategies.

CURRENT STATUS OF THE CONCEPT OF MARKETING STRATEGIES:

Organizations are using marketing as a strategy tool in today’s environment. The traditional role for

brands is also experiencing rejuvenated interest. It is clearly visible that the Indian retail sector consists

of opportunities which can be tapped now. Currently, the Indian retail sector is estimated as a US$200

billion industry, of which the organized retail makes up 3%. However it is projected that by 2010, the

organized retail sector will reach a worth of $23 billion. But at the same time, it is to be kept in mind

that opportunities also carry some challenges along with it. It is feared that this situation will result in

commoditization. Hence in such a critical situation, brand building concept will be of utmost

importance. This is so as the consumers gain a strong position and his purchasing decision will depend

upon the trust which he has in a particular brand.

Another important trend which is observed is that the new brands which are being formed takes

inspiration from the international brands but at the same time they are trying to carve their own niche.

They have recognized that internationalism doesn’t mean trying to be western in Asia. The marketing

strategies are created in such a way so that it connects with the majority of the Indian consumers. This

is done as India consists of people of different customs, languages and climates. The diversity seen in

the Indian consumers forces the retailers to view the mass of consumers not as one single market but as

a mass of niches.

HMRITM 10


CONCEPT OF MARKETING IN THE GENERAL TERM

Marketing is the process of creation, development and maintenance of a mutually-valuable relationship

with a strategically selected group of customers, through the medium of a fresh and compelling

elaborated proposition that is delivered consistently over time. A strategically selected group of

customers” means that strong brands segment their potential customers carefully, and do not expect to

be able to supply a valuable service to everyone. BMW reputedly count who should not be driving

BMWs, and start to worry if more than 12% is outside their focused market segment, as it is strong

evidence that the BMW brand is being diluted.

A brand is an identifying mark, image, name or concept which distinguishes a product or service. A

brand is a symbol created by a marketer to represent a collection of information about a product or

group of products. It carries the reputation of a product or company. The image will hence influence

the perceived worth of the product and will increase the brand's value to the customer, leading to brand

loyalty. Organizations develop brands as a way to attract and keep customers by promoting value,

image, prestige, or lifestyle. Another important feature of brand is that it may reduce the risk

consumer’s face when buying something about which they have little or no knowledge.

However Marketing should not be considered the answer to all the problems which business faces

today. There are substantial negatives to marketing that must be considered. However, if marketing is

carried out correctly, the advantages outweigh the problems. A good brand will give the customer

value for the dollar and give employees the satisfaction and confidence in their products. Strong

marketing can also accelerate market awareness and acceptance of new products entering the market.

Hence few elements that need to be considered while formulating a marketing strategy are mentioned:

The current position of the company and its competitors in the minds of the consumer

Existing perception of the product category by the target audience

Competition from the substitutes of the product

The most attractive product attribute

Product differentials whether actual or perceived by the target audience

Expectations of the buyers

The programs and activities in support of the company

Financial constraints and budget considerations

HMRITM 11

http://www.knowledgerush.com/kr/encyclopedia/Service/

http://www.knowledgerush.com/kr/encyclopedia/Product_(business)/


MARKETING STRATEGIES:The formulation of marketing strategies starts from the building a sustainable brand for the company.

This is so as the consumers buy the brand not only for the intrinsic values associated with it but also

because of the promise that marketing makes to the consumer….the promise of delivering values

beyond expectation. A framework is suggested below for the formulation of a brand strategy:

Figure 1: framework for formulation of a brand strategy

1. Experiential marketing: the first component of marketing strategy is the experiential marketing. It

is a well known fact that the customers demand experiences instead of products or services. This

creates a challenge to the organizations to find new ways to involve the customers in the value

chain so that they themselves can decide the product features and uniqueness that they expect from

the brand. They want to know more about the details of the brand. They remove the shells and get

into the core of the processes to understand the real value of the brand. Hence such a strategy

should be framed that makes the consumers involvement higher.

2. Effective Marketing it is found that effective marketing involves working on four important

dimensions, namely:

Figure 2: dimensions of effective marketing

HMRITM 12


The Functional Dimension The functional dimension concerns the perception of benefit of the

product or service associated with the brand.

The Social Dimension The Social Dimension concerns the ability to create identification with

the group.

The Spiritual Dimension The Spiritual Dimension is the perception of global or local

responsibility

The Mental Dimension The Mental Dimension is the ability to support the individual mentally.

3. Novel Brand Strategies

Figure 3: novel brand strategies

Product Service A sale should never be considered the ending of a transaction but the

beginning of a beautiful relationship. Customer service basically creates a positive effect on the

minds of the customer and this positive influence on the mind of the consumer makes them

more open to new ideas and reduces their skeptism towards the brand.

Buzz Marketing: the development in the technology used in the country has lead to the

increased importance paid to the concept of buzz marketing. Marketing increasingly nowadays

is moving into Internet-based applications.

Religious Marketing since it is considered that religion has the power to bind people and unify

them under one common ideal an effective brand strategy must take into account this powerful

force which plays on the minds of the Indian consumers. This is so as in a country like India, A

HMRITM 13


brand that reveals authenticity, values and humanity's drive toward conscientiousness, offers a

powerful strategic advantage.

4. Feedback and Improvements

It is very crucial to have the consumer participation. In order to succeed in the long run, it is

crucial to allow the consumer participation at an intermediary stage of developing the product.

This will lead to creation of a better relationship between the company and its consumer.

5. Challenges

PRODUCT BUNDLING, AN IMPORTANT MARKETING STRATEGYProduct Bundling is a marketing strategy that involves offering several products for sale as one

combined product. Product bundling is most suitable for high volume and high margin products. It is

most successful under the following situations:

there are economies of scale in production,

there are economies of scope in distribution,

consumers appreciate the resulting simplification of the purchase decision and benefit from the

joint performance of the combined product,

When the marginal costs of bundling are low.

when production set-up costs are high,

when customer acquisition costs are high

BRAND FRANCHISE EXTENSION MODEL USED FOR MARKETING

DECISION MAKINGFour marketing alternatives is a strategic marketing communications technique. This model can be

used in a situation when the company is considering adding products to its portfolio and its associated

brand name. This model is depicted below in the form of a matrix. There are two variables for this

matrix:

product category whether existing or new

brand category whether existing or new

HMRITM 14

http://www.knowledgerush.com/kr/encyclopedia/Production,_costs,_and_pricing/

http://www.knowledgerush.com/kr/encyclopedia/Marginal_costs/

http://www.knowledgerush.com/kr/encyclopedia/Economies_of_scope/

http://www.knowledgerush.com/kr/encyclopedia/Economies_of_scale/

http://www.knowledgerush.com/kr/encyclopedia/Product_(business)/

http://www.knowledgerush.com/kr/encyclopedia/Marketing/


Figure 4: Four marketing alternatives matrix

The matrix depicts four situations which is possible:

Situation 1: new product

In this situation, a new product is developed with a series of new brand ideas and having new

meanings to the consumers.

Situation 2: Flanker Brand In this situation, a new brand is introduced into a category where the

company already has established products.

Situation 3: Line extension

In this, a current brand name is introduced into a category where the organization already has

established products.

Situation 4: Franchise Extension

In this, a familiar brand is taken to a product category where it is unknown.

HMRITM 15


1.2 INDUSTRY PROFILE

INDIAN DAIRY SECTOR

In India both the "organized" and "unorganized” sectors co-exists for marketing of milk and dairy

products. The organized or formal sector is relatively new, and consists of Western-style dairy

processing based on pasteurization but it is also adapted to the Indian market in terms of products. The

dairy cooperatives comprise the single largest formal organization in terms of market share, and its

share in total milk procurement has increased and is further expected to rise in the future. Presently,

1.13 lakh village level co-operative societies spread over 265 districts in the country form part of the

national Milk Grid. The base for Indian dairying is provided by millions of landless agricultural

laborers and marginal and small farmers, who maintain one or two milch animals of low genetic

potential for milk production, primarily fed on crop residues and byproducts, and reared with the help

of under-employed family members, mostly female workers. The reasons which support the existence

of a large informal dairy sector are-:

Firstly the consumers are not ready to pay the additional costs attached with the formal sector

like the pasteurization and packaging

Secondly, the consumers have the perception that milk and other dairy products obtained from

reliable vendors are of better quality then that obtained from the formal dairy sector.

HMRITM 16


Figure 6: Relative shares of main milk marketing channels in formal and informal markets in India

1. India is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the

U.S' 63 cents, and Japan’s $2.8 dollars. Besides this advantage, the production of the milk is also

increasing. These two advantages when combined give a lot of attraction to the multinational

companies to expand their activities in India. Some of these milk producers have already obtained

quality standard certificates from the authorities which will help them in marketing their products

in foreign countries in processed form.

2. Regional disparities in the production and consumption of milk and other dairy products is also

observed. This disparity is due to concentration of milk production in some pockets and high cost

of transportation. Besides this, the output of milk in cereal growing areas is much higher than

HMRITM 17


elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have

a high food value for milch animals.

3. Liquid milk comprises the largest single share of the dairy product consumption profile. The share

of fat-based products like ghee showed a declining share, and that of western products like cheese

and ice cream witnessed an increasing trend and is expected to increase further due to changes in

food habits, marketing strategies, income levels, changes in demographic factors, etc. In India

about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is

converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7

per cent of the milk goes into the production of western products like milk powders, processed

butter and processed cheese. The remaining 54% is utilized for conversion to milk products.

4. Several consumers in urban areas prefer to buy loose milk from vendors as they have a strong

perception that loose milk is fresh. Moreover, the current level of processing and packaging

capacity limits the availability of packaged milk. Presently only 12% of the milk market is

represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. On the

other hand, the Quality of milk sold by unorganized sector is inconsistent and the price across the

season in local areas is also inconsistent. Sometimes these vendors add water and caustic soda,

which makes the milk unhygienic.

5. The urban market for milk products is expected to grow at an accelerated pace of around 33% per

annum to around Rs.43,500 crores by the end of the year 2005. This growth will result from the

greater emphasis on the processed foods sector and also by increase in the conversion of milk into

milk products. By 2015, the value of Indian dairy produce is expected to be Rs 10,00,000 million.

Presently the market is valued at around Rs7,00,000mn

6. India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast

market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose

individual requirement is small. But these small requirements when combined together form a huge

volume.

7. The milk farming in India is also evenly spread and accounts for nearly 40 per cent of the overall

farming household. Although, India has taken rapid strides in terms of production but to sustain the

growth process and to fulfill the vast potential, Indian milk products has to prove themselves on the

quality parameters. Unfortunately Indian dairy industry has remained in the domain of the

HMRITM 18


unorganized sector. Indian milk production is characterized by millions of small and marginal

farmers. It has been estimated that only 15-20 per cent of the dairy activity is handled in an

organized manner and nearly 80 per cent is in the domain of informal/unorganized sector.

1.3 Company profile

K.K. Milk Brief Report

1.3.1 Project The project is being put up at village, Kumbhi, Ramabai Nagar district, Uttar Pradesh. The plant will

have an aggregate capability to process 8 Lakh litre/day milk into different product like Mozzarella

Cheese, Paneer, Table Butter Ghee etc. The installed capacity for various products will be as given

below:

Table 1: Product Wise Installed Capacities

Products Installed Capacity

Paneer 15221 Kg / Day

Mozzarella Cheese 9330 Kg / Day

Dairy Whitener 5000 Kg / Day

Desi Ghee 25270 Kg / Day

Table Butter 1000 Kg / Day

White Butter 4000 Kg / Day

De -mineralized Whey 7842 Kg / Day

WMP 10000 Kg / Day

SMP 24349 Kg / Day

UHT Milk

Double Toned Milk 41200 Kg / Day

Toned Milk 41200 Kg / Day

Skimmed Milk 20600 Kg / Day

1.1Board of Directors

# Name Designation HMRITM 19


1 Dr. Chand Narian Kuchroo Chairman/ Managing Director

2 Dr. Ashok Kumar Director

3 Mr. S. Vishvanathan Director

Name : K.K. Milk Fresh India Limited

Corporate Office :

1220-21, 12th Floor, DLF Tower-B, Jasola Commercial

Complex, New Delhi-110044

Ph. : 011-40725040 (10 Lines), Fax : 011-40725039

Registered Office : 12 K.M. Village Pachpeda, G.T. Road, Aligarh-202001, U.P.

Date of Incorporation : 20th January 2010

Date of Commencement : 10th February 2010

Constitution : Public Limited Company

CIN : U01403UP2010PLC039300

Stock Listing : Unlisted

Sector : Dairy Industry (Milk Processing)

Product Mix :

The company will be producing - Paneer, Mozzarella Cheese,

Dairy Whitener, Desi Ghee, Table Butter, White Butter, De-

mineralized Whey, WMP, SMP and UHT Milk

Project Location :57 Milestone, Kanpur, NH – 2, Village Kumbhi, Tehsil –

Akbarpur, Dist. Ramabai Nagar (Kanpur Dehat) U.P.

Project Description :8,00,000 Litres/Day Milk processing for manufacturing of milk

products

Dr. Chand Narian Kuchroo

Dr. Kuchroo, aged 62 years, is a Post Doctoral fellow from University College, Cork (Ireland), Ph. D.

(Foods) from National Dairy Research Institute, Karnal and an M.Sc. (Food Chemistry) from National

Dairy Institute, Karnal. He has over 25 years of experience in Production, Operation and R & D in

Dairy industry. He has worked as a scientist with NDRI, Karnal and was involved in research for

modifying buffalo milk to stimulate human milk since 1975 to 1979. Dr. Kuchroo has more than 25

years of organizational experience with H.J. Heinz India Private Limited in various capacities. He has

also served on the board of the company. He took voluntary retirement from Heinz in 2004 to put up

his own milk processing unit manufacturing facilities for Desi Ghee at Aligarh under the name of

“Samprash Foods Private Limited”.

HMRITM 20


He is currently a professional member of- The Indian Dairy Association, Nutritional Scientific Council

of India and Food Science & Technology Association and has authored multiple papers in India and

abroad on Dairy Industry.

Dr. Kuchroo’s networth as on 31st March, 2012 was Rs. 32 crore.

Mr. Sankaranarayana Vishvanathan

Mr. Vishvanathan, aged 57 years, has done four years of Marine Engineering Training (1970-1974) at

Directorate of Marine, Calcutta. He was also awarded as technical engineer (Steam & Motor) by MOT,

Govt. of India in 1982.

He has worked with The Shipping Corporation of India, Mumbai, as Technical Engineer, Glaxo India

Ltd. as Maintenance Engineer (1987-1991) and thereafter joined Heinz India Ltd., Aligarh as

Engineering Services Manager. He worked as General Manager Engineering Services & Projects with

Heinz India from 1991-2001. In 2004 he joined Dr. C.N. Kuchroo for setting up Samprash Foods

Private Limited.

He is also a professional member of Marine Engineers Institute, TERI and ASHRAE.

His networth as on 31st March, 2012 was Rs. 1.65 crore.

Dr. Ashok Kumar

Dr. Kumar, aged 52 years, is a Post Doctoral fellow from Harvard University (U.S.A) and has

completed his Ph. D. (Biochemistry) from Aligarh Muslim University, M. Phil (Biochemistry) from

Aligarh Muslim University and M. Sc. (Food Chemistry) from Aligarh Muslim University. Dr. Kumar

has worked as a scientific officer with BARC, Mumbai and was involved in research & development.

He is also a professional member of American Association of Immunologist, American College of

Rheumatology, Federation of American Societies for Experimental Biology and Clinical Immunology

Society (USA). He also has more than 25 years of experience in academics and industry in India,

Canada and USA.

The company has confirmed that none of the Directors of KMF are on RBI’s defaulters’ list or

CIBIL’s wilful defaulter list in respect of KMF or any other company in which they are a director.

2.2 Key Management Personnel

KMF has identified key executives for execution of the project. They would be suitably assisted by a

team of professionals at various levels, specializing in critical functions related to design & planning,

management of contracts, finance & accounts, operation & maintenance, human resources and

administration.

A brief write up on the key management personnel of KMF is given below: HMRITM 21


Mr. Sushil Verma: Mr. Verma is a Dairy Technologist from Allahabad Agriculture Institute. He

has attended corporate training programs on process excellence in USA & customizing cheddar,

process, mozzarella & string cheese in USA&UK. He has also attended training on ‘prevention of

food adulteration act & Legal Issues’ conducted by Indian Institute of Management, (IIM),

Ahmedabad and Lead Accessor / Auditor for ISO 22000:2005, ISO 9001:2008 & Dutch HACCP

Quality Systems. Mr. Verma has an experience of over 25 years in the Dairy & Food Processing

industry and has acquired technical expertise over the years. Details on the positions held by him in

various milk and food companies are given in Annexure 14.3. In KMF he has been appointed as

General Manager (Technical) and will be looking after production, quality and maintenance.

Mr. Ambrish Kumar Srivastva: Mr. Srivastava has a Diploma in Dairy Engineering from UP

Board of Technical Education, Lucknow. He has worked with various milk processing companies

and has an experience of more than 15 years in the industry. Details on the positions held by him in

various milk and food companies are given in Annexure 14.3. He has also worked with Perfect

Solution as a Consultant, providing technical supervision support to various milk processing

companies. He joined KMF in April 2010 and is since working as General Manager-Project. He is

responsible for the finalization of the technical aspects of the project like selection of machinery,

supplier, and inspection of machines etc. He will also supervise all engineering services including

drawing and design of plant and final inspection at the time of delivery, erection and

commissioning of Plant.

Mr. Raj Kumar Gupta: He has a Diploma in Mechanical Engineering from UP Board of

Technical Education, Lucknow. He has been associated with Dairy industry since 1983 and has

worked with various milk and food processing companies details of which are provided in

Annexure 14.3. At KMF he will be assisting Mr. Ambrish Srivastava.

3.1 Location and Access

The proposed plant will be located at village Kumbhi, Akbarpur Tehsil, Ramabai Nagar district of

Uttar Pradesh. The site is situated at a latitude of 26 o 21’ 46.50” N and longitude of 79 o 51’ 43.72” E.,

at a distance of approx. 57 Km from the Kanpur city towards Etawah.

Product Target Intended Use

Skimmed Milk

Powder

Food processing industries Food processing industries -

Infant food formula,

confectionary

Whole Milk

Powder

Canteen Stores Department,

Traders

Tea / Coffee and liquid milk

reconstitution

Dairy Whitener Food processing industries Food processing industries, HMRITM 22


Bakery

Paneer Traders and direct

consumers/restaurants

Cooking

Mozzarella Cheese Food processing industries,

Fast food chains/restaurants

Pizza, Burger

Dairy Whey Traders and end users viz,

baby food formulators, food,

dietary and snack food

formulators

As a Food supplement, Energy

drinks/nutritional product

industry, Baby food industry,

Ice creams, Bakery products,

Processed meat, Calf Milk

replacer, Confectionary

Ghee Biscuit and cookies

producers/companies & direct

customers

Cooking

Table Butter Hotels / Institutional Sales,

Sweet makers

Spreads

White Butter Bread and biscuits,

Restaurants

Flavouring / cooking/ spreading

agent

UHT Milk Food malls/ Direct customer Human Consumption

STRATEGIES OF KK MilkKK Milk is trying to take its product campaigns and communications to a higher platform. The milk

campaign, for instance, targets children and are created around ideas like “the country needs you, grow

faster”. By doing this, they have ensured the involvement of their target market in a strong manner.

For products like ice creams, butter and cheese, the target market is the children. So the campaigns

have been made around “taste” to gather more attraction of the children.

Besides the advertisements, KK Milk has also taken up other activities to promote their brand.

Butter, 60% of which is consumed by kids, leads to paying focus on the kids. To attract the attention of

kids, Makkhan Singh, a sturdy jovial cow (a cartoon character) was made its brand ambassador.

KK Milk has been carrying out school programs which include games involving Makkhan Singh in

Delhi. It plans to extend this programme to other cities like Mumbai and Kolkatta. It also runs a

HMRITM 23


gaming website character to attract children. . A couple of months ago, KK Milk carried out a retail

activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for

a photo op - dressed as superheroes - through Polaroid cameras; and the framed photograph was

presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about

20,000-25,000 snaps being taken. Cheese was also something that helped the company bond better

with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke

saath bees ki cheez," a proposal that said if a consumer buys KK Milk cheese, the retailer can offer

him anything worth Rs 20 from the shop - which worked better than offering something free with the

product, which the consumer didn't even needs.

Safal has tied up with Cartoon Network to launch ‘Power Puff Girls’ on pack promotion. This would

enable the consumers to receive a ‘Power Puff Girls Crime Buster’ toy free with the purchase of Safal

juice. This strategy was adopted to attract the youngsters and enhance the brand’s connection with its

consumers. Moreover, it supported the brands core positioning of being a ‘refreshing energy drink’.

The main KK Milk account was earlier with Interface Communications and a part of it was with

Mudra. KK Milk will be using both print and television advertising, but the spends on television will

be more than print.

HMRITM 24


CHAPTER-2

OBJECTIVE OF THE STUDY

Objective of the study

HMRITM 25


In this competitive business environment, it is seen that a lot of focus and importance is given while a

company is deciding upon the marketing strategies to be adopted by it. But at the same time, it should

not be forgotten that due precaution needs to be taken before finalizing upon the strategy.

The project aims to achieve the following objectives:

To analyze the marketing strategies of dairy industry in context of KK Milk.

To study the brand positioning of KK Milk and perception of customers towards it.

HMRITM 26


CHAPTER -3

LITERATURE REVIEW

LITERATURE REVIEW HMRITM 27


Hrebiniak, 2006 Although formulating a consistent strategy is a difficult task for any

management team, making that strategy work – implementing it throughout the organization –

is even more difficult

Noble, 1999 A myriad of factors can potentially affect the process by which strategic plans are

turned into organizational action. Unlike strategy formulation, strategy implementation is often

seen as something of a craft, rather than a science, and its research history has previously been

described as fragmented and eclectic

Higgins (2005) even focuses on four types of strategies: corporate, business, functional and

process. Process strategies, the last type, normally cut across functions and are aimed at

integrating organizational processes across the organization in order to make them more

effective and more efficient.

Slater and Olson (2001) analyze marketing‟s contribution to the implementation of business

strategy. The mixed studies category also includes articles that focus on the role of project

management for strategy implementation.

Okumus (2001), for example, focuses on the implementation of a yield management project

and a key client management project in two hotels.

Grundy (1998) examines the synergies among project management and strategy

implementation and reviews strategy tools that may help in project management.

Alexander (1985) believes that the need to start with a formulated strategy that involves a

good idea or concept is mentioned most often in helping promote successful implementation.

HMRITM 28


CHAPTER – 4

RESEARCH METHODOLOGY

4.0 RESERCH METHODOLOGY

HMRITM 29


4.1RESEARCH DESIGN:

Here exploratory research design is chosen with focus on discovering of ideas & insight about the

particular problem.

4.2 SAMPLING DESIGN

4.2.1 POPULATION: The population is selected from the delhi region

4.2.2 SAMPLE SIZE: - The sample size of the research project has been taken 80 of the customers

4.2.3 SAMPLING METHOD: I have chosen non random sampling i.e convenience sampling

4.3 Source of Data collection

Primary data: Using survey, questionnaire & observation method the data has been collected from

targeted focus groups, which are customers.

Secondary data: In addition to the reactions of the selected consumers segments, the factual

information historic background including the sales volume by various manufactures of the product

has been collected with the help of various trade/business journals, company magazines, brochures,

and company reports and concern trade association reports

4.4 Drafting of questionnaire

To frame questionnaire or schedule, we have at first to decide regarding various questions to be incorporated.

This decision of the selection of questions depends upon the purpose of enquiry. In this regard, precaution

should be adopted to avoid irrelevant or unnecessary questions.

4.5 LIMITATIONS OF THE STUDY HMRITM 30


Limitations of the study are as follows:

1. The preparation and interpretation of data may not be 100% free from errors and may be

effected by the respondents biased mindset to some extent.

2. Sampling size of targeted customer is small, so the response may not give true reflections of

the mental framework of the population.

3. Judgment/ convenience sampling will be used, so the data may not be of that quality level as

obtained by complete enumeration survey which is not possible due to financial and time

constraints.

HMRITM 31


CHAPTER – 5

DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS

HMRITM 32


Q1. STORES ARE CONVENIENTLY LOCATED:-

Figure 8: stores are conveniently located

The first question in the questionnaire was to know about the satisfaction level of the consumers as

regard to the convenience of location of the KK Milk outlets.

When asked about the location of the KK Milk stores, 14 people out of 55 sample size had a view

that the stores are conveniently located and they find it easy to reach the stores. The next 27 people

were equally happy with the store location. But 13 people out of the sample size didn’t agree that the

stores are conveniently located and they find it hard to get to the stores.

HMRITM 33


Q2. STORE HOURS ARE CONVENIENT FOR YOUR SHOPPING NEEDS

Figure 9: Store hours

The second question included in the survey was to gather information whether the store hours were

convenient for the consumers to shop or not. The KK Milk Store timings are from 5 a.m. to 11 a.m.

and than from 4 p.m. to 7 p.m.

When asked from the customers about the store timings, 14 people out of 55 strongly believed that the

store timings are absolutely fine. 26 had a view that store timings are matching there needs. While 8

people out of the sample size were not happy and 7 were strongly against the statement of the

convenience of store timings.

HMRITM 34


Q3. STORE ATMOSPHERE AND DECOR ARE CLEAN AND HYGIENIC

Figure 10: Store atmosphere and decor

The next question was framed to know about the consumer’s perception about the cleanliness and

hygienic atmosphere in the KK Milk outlet.

The store atmosphere and décor which attracts the customers towards it is found strong in case of KK

Milk. 14 people out of 55 sample size strongly agree that the atmosphere and décor of the KK Milk

stores are good. While 27 people agree that the atmosphere and décor attracts the people towards its

stores. However 25% of the sample size didn’t agree on the cleanliness and hygienic condition of the

store. They were not satisfied with the store atmosphere and décor.

HMRITM 35


Q4. A GOOD SELECTION OF DAIRY PRODUCTS IS ALWAYS PRESENT

Figure 11: Good selection of Dairy products

The respondents were asked to tell their opinion about the range of dairy products which were offered

in the store. This question would provide immense help in deciding whether the company has

appropriate product portfolio or not.

5 people strongly believed that there is always good selection of dairy products present in the outlet.

While 31 respondents had a good experience regarding the products present in the store. However 19

consumers didn’t find a good range of dairy products present in the store and 9 consumers were not at

all satisfied with the present product range available. This showed that the company had to go a long

way in increasing its products range so as to have a larger market share.

HMRITM 36


Q5. THE KK MILK BOOTH HAS THE LOWEST PRICES IN THE AREA

Figure 12: Lowest prices in the area

This question was asked to the respondents to know about their perception about the prices of the KK

Milk products in relation to its competitors. The response was not very good in terms that the

satisfaction level of consumers as far as the prices were concerned was not very satisfactory. Around

15 respondents believed that the prices of its products were lowest in the area, but the majority of them

had an opinion that its prices were not the lowest.

HMRITM 37


6. DAIRY PRODUCTS SOLD WERE OF HIGHEST QUALITY

Figure 13: Highest quality

The sixth question was framed to know about the consumer’s perception about the quality of the KK

Milk products. Around 12 consumers were highly satisfied as far as the quality of its products was

concerned. 32 out of 55 sample size were of the opinion that the quality of the products was good and

acceptable. However 20% of the sample size was not satisfied about the quality of the KK Milk

products.

HMRITM 38


Q7. THE DAIRY PRODUCTS SOLD WERE OF GOOD VALUE FOR MONEY

Figure 14: Good value for money

When the respondents were asked about whether they were considered the dairy products sold in the

KK Milk outlet as good value for money or not. 12 consumers were very happy and considered it to

be a good value for money. While 28 out of the sample size were also satisfied. However 12 people

were not considering it to be good value for money, and 4 people were strongly against this statement.

HMRITM 39


Q8. THE DAIRY PRODUCTS DISPLAY IS ATTRACTIVE

Figure 15: Attractiveness

The response which was received when the respondents were asked about the attractiveness of the KK

Milk stores was disheartening. 21 people were bit satisfied with the display of the products, but a

majority of the people were not satisfied.

HMRITM 40


Q9. OVERALL SATISFACTION WITH THE KK Milk

Figure 16: Overall satisfaction

The respondents were then asked about their satisfaction about the overall aspects of KK Milk outlet.

The response which was found was in favour of KK Milk. Around 9 people were very happy and

satisfied with the overall performance of KK Milk, while 29 respondents had the perception that the

KK Milk provided them with satisfactory aspects. However 11 respondents were not very happy with

the KK Milk aspects and 6 people were not at all satisfied with KK Milk.

HMRITM 41


10. THE DAIRY PRODUCTS COMES IN APPROPRIATE PACK SIZES

Figure 17: Appropriate packing size

The respondents were asked whether they considered that the dairy products offered by the KK Milk

comes in appropriate pack sizes or not. This was asked to know about how successful the strategies

adopted by the company have been. 12 people considered that the products come in appropriate pack

sizes and 27 were also pretty satisfied about the pack sizes. On the other hand 11 people out of the

total sample size were not happy about the pack sizes and 5 people were highly dissatisfied with the

pack sizes in which the products were offered.

HMRITM 42

Appropriate Packing Size

0

5

10

15

20

25

30

Strongly Agree Agree Disagree Strongly Disagree

Num

ber


Q12. HOW OFTEN DO YOU VISIT YOUR NEAR BY KK MILK OUTLET?

Figure 19: Visit to the outlet

The respondents were then asked as to how frequently they visit the nearby KK Milk outlet .the

response showed that the consumers used to visit the outlet frequently as 37 of them went 3 to 4 times

in a week and 18 people visited it once in a week.

In the present globally competitive environment, a consumer has a lot many alternatives available to

choose from, for each of the product. This makes the consumers position stronger. All the activities

undertaken are consumer focused. Hence the perception of the consumers about the brand is an

important factor which needs to be analyzed properly. Any gap between the expected level of

consumer satisfaction and the actual level of consumer satisfaction needs to be bridged. Hence

appropriate and the most suitable marketing strategies need to be adopted by the company to remain

successful in the long run.

This questionnaire was constructed to know about the current satisfaction level of the consumers with

regard to the KK Milk brand. A few important findings were found which needs special mention.

HMRITM 43


When the respondents were asked whether the KK Milk outlet has the lowest prices in the area or

not, the majority of them were of the opinion that it was not offering the lowest price. On the other

hand, when the respondents were asked about the quality of the KK Milk products, the majority of

the response was in favour that the KK Milk provided products with highest quality. Similarly, a

majority of the respondents also agreed upon the fact that the KK Milk products sold were of good

value for money. These responses when analyzed together explained that although the consumers were

not considering the products to be of lowest price, this perception didn’t act as a barrier in their

decision to purchase the KK Milk products. In reality, the purchase decision was based after

analyzing the price, quality and determining the consumer perception about the value for money spent

on the product simultaneously.

The analysis of the responses also brought into light the fact that the dairy products display was not

found attractive by the consumers. Hence it order to restrain its existing consumer from going to its

competitors, the company should take up appropriate strategies to improve on its display of the

products.

It was found that the overall satisfaction of the consumers from the KK Milk products was quite

satisfactory. The satisfaction level of the consumers in respect of the range of dairy products which

KK Milk offered and the pack sizes of the products were quite acceptable. This brought into light the

fact that the marketing strategies adopted by the brand have been quite successful in contributing

towards the share in the market. For instance the small pack size strategy adopted for Safal fruit juices

has resulted into increase in its share to contribution of the brand.

It has been found that the majority of the consumers from the sample size visit the outlet at least 3 to 4

times in a week. This can be linked with the satisfaction of the consumers as to the products offered by

the KK Milk. This shows that the marketing strategy adopted by it in order to the expansion of the

product portfolio and brand extension has resulted in fruitful results. For instance, the company entered

the snacks segment by launching its sub brand “Hot Snax” which included products like French fries

and Aloo Burger Patty.

HMRITM 44


PEST ANALYSIS

In the past, India faced shortages of milk. But today, it stands as the largest producer of milk in the

world crossing over 80 million tones. India’s dairy sector has successfully emerged out from the

shortages of milk period. All these have been possible because of various factors which are categorized

below as per the PEST model (political, economic, socio cultural and technical factors). PEST is a

technique for identifying and listing the political-legal, economic, socio-cultural and technological

factors in the general environment that affect the retail sector.

1. POLITICAL FACTORS

“OPERATION FLOOD” which is one of the world’s largest dairy development programme has been

a major contributor as far as the success of Indian dairy sector is concerned. Till the year 1991, the

Indian dairy industry was highly regulated and protected through quantitative restrictions and strict

licensing provisions, which stood as a barrier in the path of development. The dairy industry was

delicensed in 1991 and the private sector including MNC’s was allowed to set up milk processing and

product manufacturing plants. But later it was re introduced as MMPO (Milk and Milk products order)

in 1992. But since the year 1991, India embarked upon liberal policy framework, which further got

reinforced with the signing of Uruguay Round Agreement on Agriculture in 1994. This resulted in

exposing the Indian dairy sector to the global markets.

The milk production in the country has more then tripled to over 80 million tones between 1970- 71

and 2000- 01 with an average increase of about 4.5% per annum, which as compared to world’s rate of

about 1% is much higher. The Operation Flood programme has built a bridge between the rural

producers and the urban consumers, through a network of co operatives. Hence Government policies

were formulated to support dairy co operatives and large public investments were made in processing

and marketing infrastructure through co operatives. During 2001, government made some important

amendments in the MMPO, whereby the registration of units handling up to one lakh litres of milk per

day or 5000 tonnes of milk solids per annum was granted by the concerned State government and the

requirement of renewal of license was abolished.

The operation of MMPO was by and large limited to registration of the processing units and some of

important provisions relating to food safety, quality, and hygiene were ignored completely. Therefore,

the MMPO had lost its relevance in the era of trade liberalization and globalization, where India had

opened up its dairy sector to world markets but still there were controls/restrictions on free entry of

new players in the domestic markets.

HMRITM 45


Termination of licensing requirements for setting up milk processing and product manufacturing under

the India milk and milk products order in 2002 made India’s dairy industry as one of the most

deregulated dairy industries in the world.

However in March 2003, Government of India abolished the restrictions on setting up milk processing

and milk product manufacturing plants and removed the concept of Milk shed while requirements

relating to food safety and hygiene were retained in the MMPO. This was expected to facilitate entry

of large companies, which would definitely increase competition in the domestic markets.

2. ECONOMIC FACTORS

The output of milk and milk products has increased faster than the crops since 1970’s. The rapid

growth in the demand has been possible because of the following factors

Higher income elasticity of demand for milk and other dairy products (1.96 in rural and 1.32 in urban

areas)

Growing urban population

Changing food habits

While on the other hand, there has been a marked improvement in the milk yields. There has also been

small regional differentiation due to the differences in domestic market prices and transport costs.

3. SOCIO CULTURAL FACTORS

The organized sector in India co- exists with the unorganized sector for the marketing of milk and

dairy products. The organized sector consists of western style dairy processing based on

pasteurization, although adapted to the Indian market in terms of product choice. The co existence of

this dual structure is seen because there are many consumers who are willing to pay the additional

costs of pasteurization and packaging, and consumers consider raw milk obtained from reliable

vendors as of superior quality than that of formally processed dairy products. In the future, it will be

observed that the role of the organized sector will also be on an increase.

India has the potential to become one of the leading players in milk and milk products exports as it has

low cost of production as compared to other countries due to cheap labour availability.

Food safety concerns, requiring efforts for clean milk production and animal health and welfare issues,

will become increasingly important in urban areas. Low productivity of milch animals is a serious

constraint to dairy development. The milk sector is also the largest contributor in the agricultural sector

to the national GDP of India, and serves as an important source of livelihood for a vast majority of the

rural population.

Milk is also the cheapest source of all nutrients when compared with other food items. Milk and dairy

products have cultural significance in the Indian diet. A large portion of the population is lacto-

HMRITM 46


vegetarian, so milk and dairy products are an important source of protein in the diet. Thus, it has an

important role in national nutritional programmes, particularly for those below poverty line, children

and expectant mothers. It is a boon for South Asia, where per capita incomes are low and for about

40% of the region’s population incomes are below the level necessary to ensure adequate nutrition.

4. TECHNICAL FACTORS

It has been observed that the low milk productivity is due to inefficient system of provision of different

inputs and/ or services such as feeds and fodder, animal health facilities. It should be seen that

significant investment is made in the supply chain of milk procurement, processing and marketing.

Training and incentives should be given to the farmers to bring the quality of milk and dairy products

in comparison to the international standards.

With the rapidly changing global trade regime, the prospect for technological development in the

dairy sector has also become bright. More scientific management of dairy animals in terms of

breeding, feeding and health care would become possible. The increase in demand for dairy products

will put increasing pressure on dairy production systems; traditional breeds and feeding practices are

likely to give way to higher-yielding breeds, associated intensification of production systems,

increased disease risks, pollution and animal health issues, and a greater reliance on concentrates.

HMRITM 47


CHAPTER- 6

FINDINGS & RECOMMENDATIONS

HMRITM 48


6.1 FINDINGS

The project was carried out with the objective of having a clear understanding about the

marketing strategies in the Indian Dairy sector, by keeping the focus of the study in respect of

the “” marketing strategies. It included the process of carrying out both the primary and the

secondary research activities.

It can be said that all these research has lead in finding a lot of important points in respect of

the marketing strategies adopted by KK Milk. A few recommendations have also been

suggested in the project.

The importance of the market value and the strategies adopted to enhance the brand value has

been well understood. It is seen that the philosophy behind the marketing strategy of KK Milk

has been to develop the brand so as to attract and retain the consumers.

The marketing strategies adopted have resulted in building a sustainable and differential

advantage over its competitors for the brand. The marketing strategies act as a tool to develop

and sustain the appeal of brands in the eyes of the consumers.

Throughout the process of analysis of the thesis, it is observed that the marketing strategy of

dairy sector has been focusing mainly on two aspects:

Focusing on the strong brands

Product mix expansion

KK Milk is supporting its aggressive brand expansion and strengthening plan with various

innovative marketing strategies.This is done in the light of the fact that the marketing trends are

showing a change. It is shifting from generic products to packaged brands.

One important feature observed is that the dairy sector has adopted different marketing

strategies for each of the two i.e. organized and unorganized market of the Indian Dairy sector.

This has been done in order to suffice the requirements of all the potential consumers of the

dairy products. Such a strategy is very important as today the consumers hold a stronger

position.

The research also brought into notice the fact that the marketing strategies were more

successful whose benefits equaled the needs of the consumers. The success of the mass Indian

flavors in ice cream is one such strategy.

HMRITM 49


6.2 RECOMMENDATIONS

After having a look at the findings of the primary and secondary research conducted, it was found that

there are some opportunities which are still lying untapped. If these could be taken care of, then KK

Milk brand will be benefited. These points are explained below. The suggestions given below consist

of two parts: one is for the overall dairy sector in India and another for the KK Milk brand

specifically. This is done as it was considered that if the barriers present in the dairy sector were

removed, it will in turn be fruitful for the KK Milk brand.

SUGGESTIONS FOR KK Milk

1. Before finalizing any new strategy and adopting it in the company’s activities, it is important to

find out as to how the consumer will benefit. It has to be seen that it suffices the needs of the

consumers, and there remains no gap between what the consumers expect and what the

consumers are actually receiving. This would ensure that the efforts of the company remain

fruitful. For instance, we can consider the failure of the strategy of coming out with the UHT

milk. It was not very successful as in reality; it was not in terms with the consumer’s

perception.

2. It has been analyzed that the company is taking adequate steps for its brand expansion and is

trying to come out with new value additions in its product portfolio. For example, KK Milk

entered the snacks category by establishing its sub brand ‘Hot Snax’ which had products like

French fries and Aloo Burger patty. This has been a good technique.

In order to further take advantage of this strategy, it needs to find out more such untapped

opportunities. One such area is ‘Indian sweets’ category. It is generally seen that people in all

parts of India prefers to includes sweetdish in at least one of their meals. Hence KK Milk

should create a new umbrella brand which includes a range of ethnic Indian sweets. Besides

this, good scope also exists for products like puddings, custards and sauces.

3. The company should not hesitate in spending money on advertising and marketing activities. It

should be considered as an investment for the promotion of the brand. This is so because it is

through advertising and marketing activities that the brand is exposed to the potential

consumers.

HMRITM 50


While doing the primary research, it was found that few advertisements of the brand had better

outcomes than the others. Hence the ads which didn’t receive the desired response from the

target audience should be revised and reframed so that it gives fruitful results.

4. Steps should also be taken to constantly review the appeal of the various sub brands and the

main brand of the company so that it remains relevant and fits the requirements of the current

environment.

6. Another important opportunity which could benefit the company is the efforts to increase the

shelf life of the products. This could be done by adopting such latest packaging technology that

also leads to retaining the nutritive value of the packaged product.

7. The company should strive to increase its operation and try to cover a major par of the country.

It should arrange for better storage and transportation facilities. Hence cold chain needs to be

strengthened so that it becomes a competitive edge for the brand.

8. Since the company has been formed as a co operative and not a corporate, it should also keep

in mind that a majority of the population should be benefited. For example, it is believed that

pollution to the environment because of food chain is a major concern for the country. Hence

steps should be taken to protect the environment and ensure maximum energy efficiency in the

activities. For instance, KK Milk plant in Gandhinagar is India’s first environmental dairy

plant. It should further take up on such efforts.

9. It has been discovered that till now no dairy product company has come out with the concept of

“home delivery” of their products. The company should evaluate the success of this

opportunity and hence include it in its strategy so as to increase its market share. This would

also be helpful in increasing the brand awareness and visibility among the target audience.

11. While analyzing the facts of the primary research, it was discovered that KK Milk has limited

strategies for the organized sector and for it, the company basically focus on aspects like the

colour used in display, highlight, and shelf level of the product. Another strategy which could

be adopted is an aggressive promotional campaign to make the brand presence stronger.

HMRITM 51


6.3 CONCLUSION

The Indian dairy sector is facing trouble because of the distortions seen in the dairy sector and

the unsuitable government policies. For example, the developed countries follow a policy of

massive export subsidies and domestic production incentives. On the other hand, Indian dairy

sector enjoys no export subsidies or domestic support. This results in making the developed

nations to maximize returns to their dairy farmers while insulating them from the global

markets. Hence the Indian dairy sector is affected adversely.

Hence steps should be taken by the government to frame such policies which benefit the

Indian farmers and strengthen the backbone of the Indian dairy development.

2. Steps should be taken to raise the quality of the dairy products so that it meets the international

standards in order to have a huge export basket. Another option could be to enter into some

kind of alliances with the other major dairy nations. It will also help in bringing in new

technologies which could result in increasing the total market share.

3. More scientific management of dairy animals is required in terms of breeding, feeding, health

care needs. There is need to restructure the livestock health services.

4. Better infrastructure needs to be created so that the inputs procurement and marketing of

production process is carried out smoothly.

HMRITM 52


BIBLIOGRAPHY

BOOKS

Leahy, Terry. “Retail and the World Economy” from images Retail, April 2012, Vol. 6, No. 4,

p. 44.

Bivani, Kishore. “The promised Land for Retailers” from images Retail, April 2012, vol.6, No.

4, p.37.

Thomas Grad (2013). “4D Marketing”.Book Pearson Education.

Edward M. Tauber, 'Brand Franchise Extension: New Product Benefits from Existing Brand

Names,' Business Horizons, vol. 24 (March-April 2011), p37.

JOURNAL Kim, P. (2010), “A perspective on brand”, Journal of Consumer Marketing, November, pp.62-

7.

Dian Brady and Robert D. Hof (2009). “Cult Brands”. Business Week. Vol: August 2, pp.64-

67.

Blackett, T. (2009), “The role of brand valuation in marketing strategy”, Marketing and

Research Today, 17

Berry, J. (2009), “Brand value isn't about stocks, it's sales and profits”, Brandweek, 34, 14.

HMRITM 53


ANNEXUREQUESTIONNAIRE:

The following questions evaluate your views of the KK Milk outlet you visited. Please indicate your

opinions about each of the following statements.

1. Stores are conveniently located. Ο Ο Ο Ο

2. Store hours are convenient for your

shopping needs. Ο Ο Ο Ο

3. Store atmosphere and decor are

Clean and hygienic. Ο Ο Ο Ο

4. A good selection of Dairy products is

always present. Ο Ο Ο Ο

5. The KK Milk booth has the lowest

prices in the area. Ο Ο Ο Ο

6. The dairy Products sold are of the highest

quality. Ο Ο Ο Ο

7. The Dairy Products sold are a good value

for the money. Ο Ο Ο Ο

8. The Dairy Products displays are attractive. Ο Ο Ο Ο

9. Overall, I am very satisfied with the store. Ο Ο Ο Ο

10. The dairy products comes in appropriate Ο Ο Ο Ο

Pack sizes.

11. How often do you visit your nearby “KK Milk” outlet? (put a tick mark)

a. Once in a week

b. 3-4 times in a week

c. Monthly

HMRITM 54

Strongly Agree

Agree Disagree Strongly Disagree

Date post:	30-Apr-2017
Category:	Documents
Upload:	hemant-singh
View:	230 times
Download:	4 times

Analysis of Marketing Strategy

Documents