Group10 CB MiniProject

8/11/2019 Group10 CB MiniProject

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A Study of Consumer

Attitude towards

Dhoodh-DhoodhAd

Campaign

2014

CONSUMER BEHAVIOR MINI PROJECTAAYUSHI SINGH (221002)

ABHINAV SINGH (221009)

ANKIT KUMAR (221026)

ANURAG KUMAR VERMA (221031)

DEEPTIMAN DAS GUPTA (221039)

GAGANDEEP SINGH (221046)


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ContentsAcknowledgement .................................................................................................................................. 3

Executive Summary ................................................................................................................................. 4

Chapter-1: Introduction .......................................................................................................................... 5

Indian Dairy Industry: A Glimpse ........................................................................................................ 6

An Overview of Milk Production Pattern in India ............................................................................... 7

Milk Processing ................................................................................................................................... 8

Consumption ....................................................................................................................................... 8

Domestic Consumption ................................................................................................................... 9

Trade Policy ....................................................................................................................................... 10

Trade ............................................................................................................................................. 11

Trade Policy ....................................................................................................................................... 12

Structure of Indian dairy Industry ..................................................................................................... 13

Production Policy .............................................................................................................................. 14

Regulation of Milk and Milk Products in India .................................................................................. 16

Areas of Production ...................................................................................................................... 18

India Facts and Figures .................................................................................................................. 18

Major Export Destinations (2008-09) ........................................................................................... 18

Operation Flood Era ...................................................................................................................... 18

About the doodh doodh campaign............................................................................................ 19

Objective of the advertisement .................................................................................................... 19

Chapter 2: LITERATURE REVIEW ........................................................................................................... 20

Chapter 3: METHODOLOGY .................................................................................................................. 26

Chapter 4: ANALYSIS ............................................................................................................................. 28

QUESTION-1 ...................................................................................................................................... 29

QUESTION 2 ...................................................................................................................................... 31

QUESTION 3 ...................................................................................................................................... 35

QUESTION-4 ...................................................................................................................................... 38

Chapter 5: CONCLUSION ....................................................................................................................... 43

Chapter-6: REFERENCES ........................................................................................................................ 45

Chapter-7: APPENDIX ............................................................................................................................ 46

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB) ........................................................................... 48

Some of the leading dairy product companies in India are: ......................................................... 50


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Acknowledgement

Our heartfelt gratitude and warm salutations are due to Dr. Anupam Narula, (Faculty

Marketing), for inculcating in us the principles of dedication and hard work, and behind

every fruitful endeavour lie the advice, guidance and inspiration of all the people directly or

indirectly involved with the report.

We wish to express our gratitude to all the people involved in the completion of this report.

We are thankful to all of them for their help and encouragement throughout the completion

of the report. They have been a constant source of support for us.

Aayushi Singh (221002)

Abhinav Singh (221009)

Ankit Kumar (221026)

Anurag Kumar Verma (221031)

Deeptiman Das Gupta (221039)

Gagandeep Singh (221046)


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Executive Summary

In the very beginning the project talks about the general scenario of Dairy Industry in India

and then it mentions about the milk production facts and figures in India. Further down few

lines, it also analyzes domestic consumption details of milk. The Ad campaign of 'Doodh,

Piyo Glass Full' was the part of Operation Flood, hence prior to the details of this Ad

Campaign, the report also talks about Operation Flood in detail.

After collecting and analysing all this information, we stepped on to take the questions

which were the part of this case.

Answer to the first question talks about the 4 properties of attitude which could have been

influenced by this ad campaign which in turn changed the attitude of the consumers

towards milk.

Then answer to the second question of the case talks about the awareness of the ethnic

issues which are associated with the ad campaigns like Dhoodh, Piyo Glass Full, which

influence the consumption of milk. It also talks about the variations in such issues across the

campaigning of different milk product.

The third part of the case talks various situations which might affect the attitude towards

the consumption of any perishable product in general (taking particularly milk into account).

The last part deals with the attitude towards the ad model used in this campaign. We

analyse the power of feelings in understanding the effects of advertising. Also, we study

through a flowchart what led to the requirement of this campaign.


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Chapter-1: Introduction


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Indian Dairy Industry: A Glimpse

Dairy activities have traditionally been integral to Indias rural economy. The country is the

worlds largest producer of dairy products and also their largest consumer. Almost its entire

produce is consumed in the domestic market and the country is neither an importer nor an

exporter, except in a marginal sense.

Despite being the worlds largest producer, the dairy sector is by and large in the primitive

stage of development and modernization. Though India may boast of a 200 million cattle

population, the average output of an Indian cow is only one seventh of its American

counterpart. Indian breeds of cows are considered inferior in terms of productivity.

Moreover, the sector is plagued with various other impediments like shortage of fodder, its

poor quality, dismal transportation facilities and a poorly developed cold chain

infrastructure. As a result, the supply side lacks in elasticity that is expected of it.

On the demand side, the situation is buoyant. With the sustained growth of the Indian

economy and a consequent rise in the purchasing power during the last two decades, more

and more people today are able to afford milk and various other dairy products. This trend

is expected to continue with the sector experiencing a robust growth in demand in the short

and medium run. If the impediments in the way of growth and development are left

unaddressed, India is likely to face a serious supply - demand mismatch and it may gradually

turn into a substantial importer of milk and milk products.

Fortunately, the government and other stakeholders seem to be alive to the situation and

efforts to increase milk production have been intensified. Transformations in the sector are

being induced by factors like newfound interest on the part of the organized sector, new

markets, easy credit facilities, dairy friendly policies by the government, etc. Dairy farming is

now evolving from just an agrarian way of life to a professionally managed industry the

Indian dairy industry. With these positive signals, there is hope that the sector may

eventually march towards another white revolution. (IMARC, 2013)

Dairy industry is of crucial importance to India. The country is the worlds largest milk

producer accounting for more than 13% of worlds total milk production. It is the worlds

largest consumer of dairy products, consuming almost 100% of its own milk production.

Dairy products are a major source of cheap and nutritious food to millions of people in India

and the only acceptable source of animal protein for large vegetarian segment of Indian

population, particularly among the landless, small and marginal farmers and women.


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Dairying has been considered as one of the activities aimed at alleviating the poverty and

unemployment especially in the rural areas in the rain-fed and drought-prone regions. In

India, about three-fourth of the population live in rural areas and about 38% of them are

poor. In 1986-87, about 73% of rural households own livestock. Small and marginal farmers

account for three-quarters of these households owning livestock, raising 56% of the bovine

and 66% of the sheep population. According to the National Sample Survey of 1993-94,

livestock sector produces regular employment to about 9.8 million persons in principal

status and 8.6 million in subsidiary status, which constitute about 5% of the total work

force. The progress in this sector will result in a more balanced development of the rural

economy.

An Overview of Milk Production Pattern in India

Economic growth and a growing population are driving dairy demand up at a greater pace

than Indias dairy producers are able to expand production. According to Indias National

Dairy Development Board (NDDB), demand is growing at approximately 6 to 8 percent,

nearly double the growth rate of production. Given Indias general preference for vegetarian

and dairy-based protein sources, demand from Indias emerging middle class is pushing up

dairy prices, leading to new interest in dairy production as a commercial activity. As a result,Indias dairy production continues to expand to record levels.

Indias dairy sector is made up of millions of farmers, the vast majority of whom milk fewer

than five animals. Indian dairy production is frequently described as following a low input,

low output model, implying that farmers typically maintain extremely low costs of

production, but also maintain some of the herd yields of any country in the world. Animal

feeding is heavily dependent on agricultural by-products. Commercially prepared feed,

while available, is not extensively used. (Note that while some input-intensive, high-

productivity dairies are functioning in India, these dairies are not widespread throughout

the country and make up a small portion of total dairy production.)

Post forecasts calendar year (CY) 2014 fluid milk production at a record 140.6 million tons,

approximately 4.5 percent more than CY 2013 on the assumptions of a normal monsoon,

increased demand for milk and dairy products and rising consumer income. CY 2013 fluid

milk production has been marginally decreased and estimated at 134.5 million tons. (GAIN,

2013)


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Production of non-fat dry milk (NFDM) is largely a function of flush season fluid milk

availability and lean season demand. As that India continues to take measures to increase

the quantity of milk powders available to Indian consumers, NFDM production is expected

to grow in correlation with increased fluid milk output. (In 2011, India prohibited NFDM

exports as well increased the quota on duty-free milk powder imports from 30,000 metric

tons to 50,000 metric tons- see TRADE section). Additionally, industry reports that

prevailing1

Milk Processing

The milk processing industry is small compared to the huge amount of milk produced every

year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian

phenomenon is the unorganised sector of milkmen, vendors who collect the milk from local

producers and sell the milk in both, urban and non-urban areas, which handles around 65-

70% of the national milk production.

In the organised dairy industry, the cooperative milk processors have a 60% market share.

The cooperative dairies process 90% of the collected milk as liquid milk whereas the private

dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy

products with a focus on value-added products.

Consumption

CY 2014 fluid milk consumption is set to match 2014 fluid milk production. Indian

consumption of NFDM for CY 2014 is forecast at 425,000 metric tons, assuming increased

exports and little imports from CY 2013. Due to an increased demand for reconstituted milk

during the lean season (April-August) and consistent exports of NFDM, CY 2013

consumption estimates are revised lower at 420,000 metric tons. Butter consumption is

forecast to match domestic production in 2014.

India is not only a leading milk producer but is also the largest consumer of milk in the

world. According to industry estimates, the Indian dairy consumption market has grown at

an annual rate of 6.8% over the last decade. The major factors driving growth in milk

consumption are increased demand due to population growth, greater affordability due to

1USDA Foreign Agriculture Service: Report by Global Agricultural Information Network


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increased disposable incomes, increasing awareness and availability of dairy through retail

and foodservice segments and increased consumer interest in high protein diets. As per the

National Sample Survey 66th Round, July 2009-June 2010 on the Nutritional Intake in India

and Household Consumption of Various Goods and Services in India, the contribution of

milk and milk products to protein intake has risen from 3 percent in the lowest decile class

to 15 percent in the highest in the rural sector and from 5 percent to 18 percent in the

urban sector. The share of milk and milk products is 7.6 percent of consumer expenditure in

rural areas as compared to 6.9 percent for urban areas.

Of the milk produced, 40 percent is used or consumed on-farm, and 60% is sold. Industry

sources report that of milk sold 70% goes through the unorganized sector, and only 30%

through the organized sector (16 percent by cooperatives and 14 percent by large private

processors). According to a Rabobank report, Indias formal dairy market size is USD 10

billion and it is expected to grow at a CAGR of 13-15 percent. The formal market comprises

cooperatives and private players who control the supply chain linkages. Little research is

carried out on Indias vast informal dairy sector. The informal dairy market is largely

fragmented and is a challenging environment due to its high-volume and low-margin

business of indigenous products, the supply-constrained value-chain for quality productsand insignificant trade opportunities due to ever-changing trade regulations. While market

players indicate that the informal sector is slowly being overtaken by the formal sector,

there are no hard data to verify in what proportions Indias dairy market is divided between

the formal and informal sectors. Within the formal sector, private dairy players are investing

in formalizing milk procurement and focusing on marketing value-added products. Some of

the private dairy processing players in India have now become strong regional players and

are aiming to become national players in the next few years.

Given strong prices, increasing production, growing urban population and consumer

preferences and trust for branded milk products, it is possible that the unorganized sectors

market share is slowly decreasing. (GAIN, 2013)

Domestic Consumption

The huge volume of milk produced in India is consumed almost entirely by the Indian

population itself, in a 50-50 division between urban and nonurban areas. Increasingly,


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important consumers of the dairy industry are fast-food chains and food and non-food

industries using dairy ingredients in a wide range of products.

Trade Policy

India allows imports of milk and milk products without quantitative limitations, although

tariff rate quotas apply and an import permit is required. NFDM imported above the TRQ

attracts a 60 percent basic duty and above quota butter oil imports are charged a 30

percent basic duty. Table 1, at the end of this report, gives an account of the tariff structure

of various dairy products.

Although India allows milk and milk product imports, in most cases both import permits and

sanitary certificates are required. For the import of livestock products (including milk and

milk products), an applicant has to apply at least 30 days in advance with form A/B

(Department of Animal Husbandry and Dairying). Exports of U.S. dairy products to India are

effectively prohibited under Indias current dairy sanitary import protocol. Imported dairy

products, like domestic dairy products, must adhere to all relevant food safety laws and

quality standards. These include the quality standards set by the Bureau of Indian Standards

(BIS) as well as the food safety standards covered in the Food Safety and Standards

Regulation, 2011.

On November 21, 2012, India revised its tariff rate quota (TRQ) on dairy products falling

under harmonized system (HS) code 040210 and 04022100 (SMP). Under the notified TRQ,

India will permit imports up to 10,000 metric tons (MT) of SMP per fiscal year at a tariff rate

of 15 percent. Quantities above 10,000 MT will incur a 60 percent tariff. For details, refer to

IN2154. (Service, 2011)

On November 22, 2012, the Government of India (GOI) lifted its ban on the export of dairy

products falling under HS code 0402. This includes milk and cream, concentrated and/or

sweetened milk and cream, whole milk powder, dairy whitener and infant milk foods.

Industry sources state that this action will have little consequence on trade, as the majority

of Indias dairy product exports are skim milk powder (SMP) and casein, both of which were

permitted for export on June 8, 2012. For details, refer to IN2154.


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In March, 2013, the Department of Animal Husbandry, Dairying and Fisheries (DADF) of the

Ministry of Agriculture, Government of India (GOI) posted revised guidelines on its website

for the import and export of bovine genetics to India. For more details please refer to the

Revised Guidelines for Import/Export of Bovine Germplasm.

On June 11, 2013, the Food Safety and Standards Authority of India extended the import

prohibition on milk and milk products from China for an additional year until June 22, 2014.

The ban includes milk, milk products, chocolates and chocolate products, candies,

confectionary, and food preparations made with milk or milk solids originating in China. For

more details, please refer to FSSAI Advisory.

On June 11, the Government of India, Ministry of Commerce and Industry amended the

Directorate General of Foreign Trades (DGFT) Import Policy 2012 and broadened the

number of HTS chapters for which a certificate complying with the Ministry of Agricultures

livestock import requirements will be required. (GAIN, 2013)

Trade

In spite of having largest milk production, India is a very minor player in the world market.

India was primarily an import dependent country till early seventies. Most of the demand-

supply gaps of liquid milk requirements for urban consumers were met by importing

anhydrous milk fat / butter and dry milk powders. But with the onset of Operation Flood

Programme, the scenario dramatically changed and commercial imports of dairy products

came to a halt except occasional imports of very small quantities. In the 1990s, India started

exporting surplus dairy commodities, such as SMP, WMP, butter and ghee.

India now has indisputably the world's biggest dairy industryat least in terms of milk

production; last year India produced close to 100 million tonnes of milk, 15% more than the

US and three times as much as the much-heralded new growth champ, China.

Appropriately, India also produces the biggest directory or encyclopaedia of any world dairy

industry. The dairy sector in the India has shown remarkable development in the past

decade and India has now become one of the largest producers of milk and value-added

milk products in the world.


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Trade Policy

India allows imports of milk and milk products without quantitative limitations, although

tariff rate quotas apply and an import permit is required. NFDM imported above the TRQ

attracts a 60 percent basic duty and above quota butter oil imports are charged a 30

percent basic duty. Table 1, at the end of this report, gives an account of the tariff structure

of various dairy products.

Although India allows milk and milk product imports, in most cases both import permits and

sanitary certificates are required. For the import of livestock products (including milk and

milk products), an applicant has to apply at least 30 days in advance with form A/B

(Department of Animal Husbandry and Dairying). Exports of U.S. dairy products to India are

effectively prohibited under Indias current dairy sanitary import protocol. Imported dairy

products, like domestic dairy products, must adhere to all relevant food safety laws and

quality standards. These include the quality standards set by the Bureau of Indian Standards

(BIS) as well as the food safety standards covered in the Food Safety and Standards

Regulation, 2011.

On November 21, 2012, India revised its tariff rate quota (TRQ) on dairy products falling

under harmonized system (HS) code 040210 and 04022100 (SMP). Under the notified TRQ,

India will permit imports up to 10,000 metric tons (MT) of SMP per fiscal year at a tariff rate

of 15 percent. Quantities above 10,000 MT will incur a 60 percent tariff. For details, refer to

IN2154. (Service, 2011)

On November 22, 2012, the Government of India (GOI) lifted its ban on the export of dairy

products falling under HS code 0402. This includes milk and cream, concentrated and/or

sweetened milk and cream, whole milk powder, dairy whitener and infant milk foods.

Industry sources state that this action will have little consequence on trade, as the majority

of Indias dairy product exports are skim milk powder (SMP) and casein, both of which were

permitted for export on June 8, 2012. For details, refer to IN2154.

In March, 2013, the Department of Animal Husbandry, Dairying and Fisheries (DADF) of the

Ministry of Agriculture, Government of India (GOI) posted revised guidelines on its website

for the import and export of bovine genetics to India. For more details please refer to the

Revised Guidelines for Import/Export of Bovine Germplasm.


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On June 11, 2013, the Food Safety and Standards Authority of India extended the import

prohibition on milk and milk products from China for an additional year until June 22, 2014.

The ban includes milk, milk products, chocolates and chocolate products, candies,

confectionary, and food preparations made with milk or milk solids originating in China. For

more details, please refer to FSSAI Advisory.

On June 11, the Government of India, Ministry of Commerce and Industry amended the

Directorate General of Foreign Trades (DGFT) Import Policy 2012 and broadened the

number of HTS chapters for which a certificate complying with the Ministry of Agricultures

livestock import requirements will be required. (GAIN, 2013)

Structure of Indian dairy Industry

In India, Operation Flood (since 1970) introduced co-operatives into the dairy sector with

the objectives of increasing milk production, augmenting rural income, and providing fair

prices for consumers. The village milk producers co-operative (a voluntary association of

milk producers in a village who wish to market their milk) is the fundamental unit in the

cooperative systemEach producers milk isgetting money on the basis of quality of milk (fat

and solids-not-fat percentage). In addition to milk collection, the societies are also provided

other services such as cattle feed, artificial insemination (AI), and veterinary services. Village

milk producers co-operatives in a district are members of their district co-operative milk-

producers union. The Union processes buys milk from the all societies and then markets

fluid milk and products. Most Unions also provide a range of inputs and services to the

village societiesfeed, veterinary services, artificial insemination, and other servicesand

have milk-processing plants to convert seasonal surpluses of liquid milk into milk powder

and other conserved products. This allows the Union to ensure better returns to its

members. (Rajendran et al.,2004)


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Production Policy

Indian dairy policy is currently focused on increasing milk output. The NDDB has created a

National Dairy Plan, (NDP) with the overall objective of meeting Indias growing demand

for dairy products and putting India on the path to sustainability in milk production.

Although the NDP is not yet finalized, it is envisaged to span over a 15-year period with an

estimated outlay of more than 3 billion U.S. dollars in various phases. The plan aims to

increase milk production to 180 million tons by 2020, bringing about a second White

Revolution in India. (The White Revolution was the program which oversaw the creation of

Indias milk marketing system and helped India to become one of the worlds largest dairy


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producers). The plan further envisages this transformation to occur through activities

including improved artificial insemination (AI) and breeding services, improved cattle feed

manufacturing, and expanding/strengthening milk processing infrastructure. The plan also

proposes to enhance the share of milk from organized (Service, 2011) sector in total

marketable surplus. The Government of India (GOI) is exploring World Bank assistance to

bring down the cost to the government.

In addition to the National Dairy Plan, the Department of Animal Husbandry, Dairying and

Fisheries (DAHD), Ministry of Agriculture, implemented four schemes in the dairy sector

during 11th plan period (2007-2012). These are:

1. Intensive Dairy Development Program (IDDP):This program is being implemented by the

State Dairy Federations/District Milk Union and has the following six objectives:

Development of milk cattle.

Increase milk production by providing technical inputs services.

Procurement, processing and marketing of milk in a cost effective manner.

Ensure remunerative prices to milk producers.

Generate additional employment opportunities.

Improve the social, nutritional and economic status of residents of comparatively

more disadvantaged areas.

The GOI has approved continuance of this program for the financial year 2011-12 (April-

March). Details are available at: Administrative approval for continuance of Centrally

Sponsored Scheme (IDDP) 2011-12

2. Strengthening infrastructure for quality & clean milk production: This program is being

implemented through the State Government by District Cooperative Milk Unions/State

Level Milk Federations. The objectives of the program are:

Creation of necessary infrastructure for production of quality milk at the farmers

level up to the points of consumption.

Improvement of milking procedures at the farmer level.


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Training and Strengthening of infrastructure to create mass awareness about

importance of clean milk production

3. Assistance to Cooperatives: The program is being implemented by the concerned District

Co-operative Milk Unions/State Dairy Federations. The objective of the program is to

revitalize underperforming dairy co-operative unions at the district level and co-operative

federations at the State level.

4. Dairy Entrepreneurship Development Scheme: This program is being implemented

through the National Bank for Agriculture and Rural Development (NABARD), starting in

September 2010 and has the following objectives:

Setting up modern dairy farms for the production of clean milk.

Encouraging heifer calf rearing for conservation and development of good breeding

stock.

Creating structural changes in the unorganized sector so that initial processing of

milk can be taken up at the village level.

Upgrading of technology to handle milk on a commercial scale.

Regulation of Milk and Milk Products in India

The new Food Safety and Standards Authority of India (FSSAI) is charged with regulating

food safety in India. Under the mandate of the Food Safety and Standards act of 2006, the

FSSAI has consolidated various food laws, including the Milk and Milk Products Regulation

(MMPR) 2009, into one umbrella regulation known as the Food Safety and Standards

Regulation, 2011. The Food Safety and Standards Rules and Regulation 2011 was enforced

nationwide on August 5, 2011. Among various food products, the regulation also regulates

the production, distribution, and supply of milk products; establishes sanitary requirements

for dairies, machinery, and premises; and sets quality control standards for milk and milk

products. Although minimal changes are expected to Indias existing food safety laws, the

Food Safety and Standards Regulation proposed a new definition for cheeses which would

prohibit the use of animal-derived rennet. These regulations apply equally to domestic and


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imported food. For details please refer to IN1174 on India Enforces the New Food Safety

Law.

The Food Safety and Standards Regulations require that a food business operator

(including food processors, manufacturers, exporters, or importers), shall hold a license to

carry out his business in India. No person shall commence or carry out any food business

except under a license issued by the FSSAI. At the same time, the operator shall register his

business with the appropriate registration authority. Per the provisions of MMPR, 2009, a

dairy unit handling up to 200 thousand liters per day (TLPD) of milk or 10,000 metric tons of

milk solids per annum, where the entire activity of procurement, processing and marketing

lies within a state or union territory, the registration authority shall be an officer of the

concerned state government or union territory. Dairy units handling more than 200 TLPD of

milk or 10,000 metric tons of milk solids per annum shall be registered by the Central

Registering Authority. Under the new food safety law, food business operators are expected

to assume their responsibility for safety in production, import, distribution, and sale of food.


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The Agricultural and Processed Food Products Export Development Authority (APEDA)

regulated the export and import of dairy products till early 1990s. However, in the new

EXIM Policy announced in April 2000, the Union Government has allowed free import and

export of most dairy products.

Areas of Production

Maharashtra, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu are the

major production area of Dairy Products in India.

India Facts and Figures

Concentrated Dairy products such as skimmed milk continue to be the largest item of

export, which together accounts for nearly 78% of net milk and milk products exports during

the year 2008-09. The exports of Dairy Products reached. 70146.77 MT from 69415.44 MT.

Indias export of Dairy products has increased from Rs. 866.56 Crores in 2007 -08 to Rs

980.86 Crores in 2008-09.

Major Export Destinations (2008-09)

Egypt, Arab Republic, UAE, Bangladesh, Algeria and Thailand.

Operation Flood Era

Dairy sector witnessed a spectacular growth 1971-96, i.e. Operation Flood era. An

integrated cooperative dairy development programme on the proven model of Anand

pattern was implemented in three phases. The National Dairy Development Board was

designated by the Government of India as the implementing agency. The major objective

was to provide an assured market round the year to the rural milk producers and to

establish linkage between rural milk production and urban market through modern

technology and professional management. Milk production grew from 21 million tonnes in

1970 to nearly 69 million tonnes in 1996 - more than threefold, at the compound growth

rate of 4.5 per cent.

Some ten million farmers were enrolled as members in about 73000 milk cooperative

societies. By 1996, milk cooperatives attained a dominating share of the Indian dairy market

- butter 96%, pasteurized liquid milk over 90%, milk powder 59% and processed cheese 85%.

India was reckoned as a major threat in the dairying world. In retrospect, it was by no means


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an easy task. Let us all salute the visionary and the architect of the white revolution in India,

Dr. Verghese Kurien without whose dynamic leadership all this may not have been possible.

The dairy cooperative movement has continued to grow in the post Operation Flood-era.

About the doodh doodh campaign

One of the most successful and visible beyond brand advertising campaigns in recent times

has been the milk promotion campaign by NDDB. The Indian dairy scene has witnessed a

magical transformation from the time when we did not have enough milk for our own

consumption to todays scenario when we are exporting milk products. The credit for this

turnaround goes to the National Dairy Development Board (NDDB). In spite of a long

tradition of drinking milk, of late, this trend has been on the decline, especially amongst the

urban youth who form a significant market for the product. Milk is being perceived by them

as a plain, boring, drink or mistakenly among the health conscious, as fattening. This

attitudinal block resulted in more milk being earmarked for the production of milk products

or as an intermediary in tea or coffee, than for consumption as a drink. The economic

ramifications of this trend are, needless to say, alarming for the farmers who needed

incentives to produce higher quantities of milk. FCB-Ulka was entrusted with the task of

changing urban attitudes towards milk and replace the boring perception with the coolone. In a path breaking campaign that had youngsters doing high fives and saying yo to

milk, and mothers making their kids drink to the taste of life, the agency created a legend

that has set new standards in effective advertising while elevating the creative benchmark,

several notches.

Objective of the advertisement

It was decided to boost direct consumption of milk to motivate the farmer to produce more

milk. Therefore, though no one needed to be educated about the benefits of milk, people

were finding enough reasons not to consume milk directly.


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Chapter 2: LITERATURE REVIEW


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Factors affecting fluid milk consumption

Author: O. Kilic1, C. Akbay, G. Yildiz Tiryaki

Agricultural Journals

Abstract

This article identifies consumer characteristics associated with preferences toward fluid milk

alternatives. Using consumer survey data from Samsun province of Turkey and Multinomial

Logit model, unpacked and packed fluid milk preferences were analyzed. Based on the

results, 14.1% of respondents consumed only unpacked fluid milk, 58.2% consumed only

packed fluid milk and 27.7% of respondents consumed both unpacked and packed fluid milk

at least once a weak. Multinomial Logit model results indicated that better educated

household head, higher income households, younger and female household head and

people who agree with unpacked milk is not healthy consume more packed fluid milk than

do others. Moreover, consumers who agree with statement price of packed milk is

expensive compare to unpacked milk were less likely to consume packed fluid milk than do

others.

Culture's Consequences: Dairy Market Opportunities in India

Author: Suku Bhaskaran

Abstract

Public policy dictated by food security and food self-sufficiency objectives has contributed to

rapid increase in India's milk output. However, domestic production cannot match

increasing demand. The opposition to culling non-productive animals and constraints in feed

and fodder production limit India's capacity to expand milk output. Milk and dairy products

are important in the Indian diet, and the social and cultural life of the predominantly Hindu

population. The socio-cultural features of India provide an interesting scenario - religious

and cultural practices limit the capacity to increase domestic output but religious and

cultural practices also contribute to increasing consumption. The reduction in tariff barriers


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and changes to public policy strategies (on food-security and food self-sufficiency) provide

significant market opportunities in the Indian dairy sector.

Advertisements Effect On Food Habits Of ChildrenAn Empirical Study

Author: Dr. Ramesh Kumar Miryala

Indian Journal of Commerce & Management Studies

Abstract

Advertisement is the predominant Promotional Mix Variable which is being used in every

industry to get noticed by their prospective customer, and thereby turning them into

lifetime consumers. And these advertisements are also playing their part in shaping the

lifestyle of the individuals at large, whether elders, teenagers or children. Especially, these

advertisements are influencing the lifestyle of the children in much greater fashion, both in

righteous and unrighteous direction. This paper basically explores how the childrens food

habits are being influenced by the advertisements and the mechanism of regulating the

advertisements being aired. Further, this research paper also presents the kinds of

regulations that are in force around the globe to control and regulate the advertisements

targeting the children. Using On-the-Spot sampling method, 100 children, in theage groupof 515, and 50 parents are interviewed with the help of interview schedule and data thus

collected is presented in the form of a pie chart. It is found that the food habits of the

children are categorically influenced by the advertisements. So, it is inevitable for the legal

system to be proactive and control the menace of the advertisements and their undesirable

effects on children. Also, parents need to keep a conscientious eye on their children.

Consumer Behaviour Regarding Branded Milk vis-a-vis Unbranded Milk

Author: Sandeep Singh Virdi* Dyal Bhatnagar** Hardeep Kaur*

Indian management studies circle 11 (2007)- 105-125

Abstract

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. Consumers while purchasing dairy products look for

freshness, quality, taste and texture, variety and convenience. How to make milk and milk

products affordable for the large majority with limited purchasing power is essence of the


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challenge in the present scenario. In contrast, with a constant increase in disposable

incomes among the strong middle income class also, the scope of marketing of milk has

widened. Since the consumers are not homogeneous, the consumption pattern of milk like

quantum of purchase, mode of purchase, source of purchase, brand preference etc., is

continually varying. Dairy companies, particularly in Punjab, will have to spend lot of effort

on advertising and other promotional activities. Milk companies are also advised to

strengthen their supply chain and other logistics and use intermediaries to promote and

make their products available to the end consumer.

The socio-economic profile of the consumers, viz. income status, occupational position,

educational level, age and region are the major determinants of the consumption patterns

of milk. Hence, the concentrate of the present study will deliberate on the profile of

consumers, their consumption pattern in milk consumption and its correlates.

Attitude towards the Ad Model

Books: Consumer Behaviour by Schiffman, Kanuk, Kumar and FCB ULKA Brand-Building,

Advertising by Parameswaram

Attitude

In a consumer behaviour context, an attitude is a learned predisposition to behave in a

consistently favourable or unfavourable way with respect to a given object.

Each part of this definition describes an important property of an attitude and is critical to

understanding the role of attitudes in consumer behaviour.

The attitude object.

Attitudes are learned predisposition.

Attitudes have consistency.

Attitudes occur within a situation.

Attitude towards an ad model

The power of feelings in understanding advertising effects


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Traditional advertising-effectiveness research has concentrated on the evaluative

component of the attitude. Subjects have judged ads semantically by stating how well a

number of descriptive adjectives characterize the ad, or have provided written or verbal

reactions to ads in the form of cognitive responses (Belch 1982; Lutz, MacKenzie, and

Belch1983). Although these procedures may result in useful information about how viewers

describe the ad, they may miss entirely hoe the ads make subjects feel. Wright (1985, p .1)

stated this proposition succinctly. He said that when asked to answer questions like Was

the ad convincing? respondents may be responding as critics, not as audience members.

While such critiques may be an important component of attitude towards an ad, expanding

the explanatory variables to include how ads make respondents feel will give additional

insights into the effects of advertising.

The following figure depicts the attitude-towards-the-ad model. As the model depicts, the

consumer forms various feelings (affects) and judgements (cognitions) as a result of

exposure to an ad. These feelings and judgements in turn affect the consumers attitude

towards the adand beliefs about the brand secured from exposure to the ad, and these two

factors in turn influence the consumers attitude towards the brand.

The problem flowchart which led to the requirement of the advertisement

Feelings from

the AdJudgements

about the Ad

Attitudetowards the

AdBeliefs about

the Brand

Attitude

towards the

Brand

Exposure to

an Ad


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Consumption

Greater incentives for farmers

to boost production

Export

Incentive for farmers to boost

production further

Direct consumption of milk boosted which leads to...

No incentive for farmers

Gives a competitive

edge butPrice Drop

Increase in Supply

of Milk


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Chapter 3: METHODOLOGY


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This project is mainly a secondary research on the change in attitude and behaviour in the

milk consumption of people after the Doodh Doodh campaign of Amul India.

For this purpose, the extensive use of the online articles, e-books, marketing journals and

online databases has been made.

The advertisement was on air back in 1996 and we have used qualitative and quantitative

data from the studies and researches conducted during the last decade. Therefore, the

results are indicative of that time have been used.


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Chapter 4: ANALYSIS


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QUESTION-1

FOUR PROPERTIES OF ATTITUDE AND HOW COULD THE CAMPAIGN USE IT FOR

INFLUENCING BEHAVIOUR

Attitude is a learned predisposition to behave in a consistently favorable or unfavorable way

with respect to a given object.

The four properties of attitudes which the campaign could use to influence attitudes toward

the product are:

1. The Object propertyIt would be interesting to study the tangible or focal point as

an object which could even be an action. The attitude must have an object. Here the

object isconsumption of milk. The campaign rightly focuses on its object by showing

people from different age groups, communities, professions, etc consuming and

relishing milk. Milk as shown in this ad can be consumed in all the four seasons. All

aspects focus on the object of the campaign. They have even focused on various

ways that milk can be consumed, flavored or plain white. The ad is so designed that

just by looking at it one will easily be attracted to drink milk.

2. Learned disposition General agreement has it that attitudes are learned as a

result of direct experience, word of mouth, mass media ads, internet, etc. The

product over here is a one which almost everyone has had direct experience of

Attitude

Object property

Learned

disposition

Consistency

Situation


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consuming it. Thus people will easily relate to the marketing campaigns focusing on

its benefits and its consumption. As they can relate to the ad easily because of their

past habits ofconsuming milk, it would have wider acceptance amongst people. The

ad clearly shows that milk consumption leads to healthy and fit life. It even shows

how relationships develop over a glass of milk. The taste aspect has been greatly

focused. The campaign should bring out the real benefits derived out of milk

consumption. It should focus on different kinds of drinks and flavored shakes that

could be made out of milk as people can easily experiment with it and realize its

benefits. Thus the earlier experience with milk can be further enhanced and

modified towards better consumption of milk. The ad could also be enhanced if

some focus is given to the overall process of packing the milk and processing it.

3. Consistency Attitude is such an attribute of a human being that it keeps on

changing based upon the experiences. If a person is a regular consumer of cold drink

then he would not like to substitute milk for cold drinks but under situations like

impurities in cold drinks might change their attitudes. The campaign could majorly

focus on its purity and insecticide free nature. Time and again there have been

reports of adulteration in these soft drinks which actually works in favour of milk. Intodays society where people are sensitive towards health related issues, the ad

campaign could focus on health benefits in milk consumption and even cosmetic

benefits out of it. This will particularly relate to consumers need for healthier

lifestyle. This will also build consistency in positive attitude towards the object of the

campaign.

4. SituationSituational factors influence attitudes to a great extent. In case of milk

consumption, situations like rising inflation in food prices will negatively affect its

consumption. During festival season there are reports of an idol of a deity consuming

milk that surely increases the demand for milk and the awareness as well. People

who are very religious will look to consume milk just because the idol of their deity is

having it. Taking this into consideration, the campaign could offer different varieties

of milk priced variably. This will take care of the current situation. When the

campaigns focusing on ill effects of cold drinks on health are running high, the milk

campaign could focus majorly on health benefits of milk and its other long term


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benefits. Thus according to the situation the campaign should be molded that the

attitudes are consistently positive towards milk consumption.

QUESTION 2

ETHICAL ISSUES TO BE KEPT IN MIND

Ethical considerations and advertising

Advertising and promotion offer many opportunities to an organization public relations and

integrated strategic communication program. Advertising is by its nature an element of

persuasion. Its history includes many examples of questionable practices. Thus the role of

advertising in public relations calls for careful ethical analysis and consideration.

Ethics in any profession is governed by two parameters:

a) The professional code of ethics

b) Personal and value system for practitioners.

The advertising industry has always been in sharp focus and more often for wrong reasons.

It is believed that advertising affects sales by leading consumers to change their minds or to

lead them to think in particular way. Some of the guidelines are:

Advertisement should be so designed as to conform not only to the laws but also to

the moral, aesthetic and religious sentiments of the country in which it is published.

Advertisements likely to bring disrepute or contempt to the profession should not be

permitted.

Advertisement should be truthful, avoid distorting facts and misleading the public by

means of implications and omissions.

Advertising should not be permitted to contain exaggerated claims so as to

inevitably disappoint the public.

Direct comparisons with competing brands or firms and disparaging references are in

no circumstances permitted.


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Indecent, vulgar, suggestive, repulsive, illusions to or depictions of acts of sexual

violence or offensive themes or treatment should be avoided.

No advertisement should offer to refund money paid.

Conditions apply should be so stated that it gets noticed by the consumer, so that

afterwards during the purchase process consumer is aware of hidden costs and dont

feel cheated.

As a medium of communication advertising is all-encompassing and everywhere. We make

use of it to legitimize issues (Olien, 1989) and confer status on things of importance

(LAZARSFELD, 1975).

However, advertising has also been in a vortex of controversy due to the many problems it

can cause society.

Ethics can be defined as the critical, structured examination of how we should behave in

particular, how we should constrain the pursuit of self-interest when our actions affect

others. (C., 2005)

A basic ethical issue involved here is that at times under the pressure of society

individual cannot assess commercial manipulation; they are easily swayed by

advertisements. Diverse marketing efforts target people especially, youth all over

the globe.

Glass full Milk? Campaign has to consider that youth and many a times unaware

adults are inundated with sophisticated marketing messages throughout their day,

not aimed to improve their quality of life, but for the sole purpose of making a sale.

This effect becomes more highlighted in case of regions where literacy and

awareness is very limited.

Childrens lack of experience means that they can be easily influenced by advertising,

which can for example persuade them to consume excessive amounts of the

advertised items, which is bad for their health.

Advertising can also be harmful when it contradicts sound traditional values. It can

create superficiality, showiness, and moral squalor. It may ignore educational and


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social needs of certain segments of the audience and contribute to stereotypes of

particular groups.

Glass full Milk? Campaigners have a responsibility to convey truthful data in an

understandable language. They should also confirm affirmative social behaviour

among individuals. The content of advertisements should appropriately convey the

results backed by scientific research.

Ethical issues to be kept in mind while marketing milk

Cows produce milk for the same reason that humans do: to nourish their young ones. In

order to force the animals to continue giving milk, factory farm operators

typically impregnate them using artificial insemination every year. Calves are generally

taken from their mothers within a day of being born males are destined for veal crates or

barren lots where they will be fattened for beef, and females are sentenced to the same

fate as their mothers.

After their calves are taken from them, mother cows are hooked up, several times a day, to

milking machines. Using genetic manipulation, powerful hormones, and intensive milking,

factory farmers force cows to produce about 10 times as much milk as they would naturally.

A cow will produce large amounts of milk over her lifetime. Certain breeds produce more

milk than others; however, different breeds produce within a range of around 6,800 to

17,000 kg (15,000 to 37,500 lbs) of milk per lactation. The average for a single dairy cow in

the US in 2007 was 9164.4 kg (20,204 lbs) per year, excluding milk consumed by her calves,

whereas the same average value for a single cow in Israel was 12,240 kg in 2009.

Animals are often dosed with bovine growth hormone (BGH), which contributes to a painful

inflammation of the udder known as "mastitis." (BGH is used widely in the U.S. but has been

banned in Europe and Canada because of concerns over human health and animal

welfare.)According to the industry's own figures, between 30 and 50 percent of dairy cows

suffer from mastitis, an extremely painful condition.

A cow's natural lifespan is about 25 years, but cows used by the dairy industry are killed

after only four or five years. An industry study reports that by the time they are killed,


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nearly 40 percent of dairy cows are lame because of the intensive confinement, the filth,

and the strain of being almost constantly pregnant and giving milk. Dairy cows' bodies are

turned into soup, companion animal food, or low-grade hamburger meat because their

bodies are too "spent" to be used for anything else.

CONTAINERS

Since the quantity of milk that is produced is very high, it needs a lot of space or containers

to store that milk. The ethical issue here will be the material with which the containers are

made. We see a wide variety of containers for storing and transporting milk ranging from

aluminium containers to steel containers to even plastic bottles. Now, aluminium and steel

containers can be used multiple times and have a long life but the plastic products have a

limited life and they are being used and disposed off as quickly as they can be. Large scale

disposing off may be harmful to the environment.

MISLEADING CAMPAIGNS

It should be made sure that the campaigns are true and are not misleading in terms of the

kind of product they are offering or the source from where it is coming. A similar case

happened in California, USA where California Milk Advisory Board brought a Happy Cow

Campaign that misled the people to believe that dairy cows live easy lives and thereby

convincing them to buy more milk products made by the board.

DIET AND MEDICATION ISSUES

It is a big issue in India where the cattle is not given proper diet and medication facilities but

there is no leeway on the part of the farmer to extract the milk from the cattle. Many a

times, improper food is given to the cattle which results in contaminated output. Also, when

the cattle is ill, there is no proper care that is taken by the owner as the availability of

veterinary doctors is also very low.

OTHER ISSUES

The Glass full doodh Campaign shows a whole gamut of people across all age groups. It

might be possible that the milk is suitable for a particular age group and not to other one. It


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is also wrong to perceive that advertisement merely mirrors the attitudes and values of the

surrounding culture. It does, but to an extent only.

The ethical issues addressed above will not hold true for other drink producers but they will

have a host of other issues to cater to. Among other issues will be some of the following:

Most of the time there are no animals involved in the cola and beverage advertising,

so the cruelty to animals and other such issues are not to be worried.

The issue regarding the contents of the beverages and other drinks is a big one.

Many big organisations like Coca-Cola and PepsiCo have faced the heat due to non

adherence to the set guidelines.

Sometimes the big giants indulge in ambush marketing by directly attacking the

other brands, which is in a way unethical and should be taken care of while designing

advertisement campaigns.

The facility used by the company to manufacture its products should not be a

controversial one and the disposal of industrial wastage should be done after proper

treatment so that it doesnt affect the ecology of the place.

The claims of the brand about the benefits it provides should be well backed by the

tests by renowned agencies and should not be misleading.

QUESTION 3

AFTER EXAMINING TABLE 8-1 (CONSUMER BEHAVIOUR BY SCHIFFMAN, KANUK, KUMAR), HOW

MIGHT SITUATIONS AFFECT ATTITUDES TOWARD DRINKINGMILK?

Studying the tricomponent attitude model we see that the cognitive part, i.e. the knowledge

and perceptions that are acquired by a combination of direct experience with the attitude

object and related information from various sources. This knowledge and perceptions are

also dependent on the situation, which plays a major role in affecting the attitude.

The affective part relates to the emotional side of an individual through the attitude object

whereas the conative part is the intention to buy or behaviour that will lead to the action to

buy a particular product.


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Thus after studying table 8-1 we can arrive at a similar table for milk which takes account for

the situations and evaluation of those situations as compared with cold drinks/energy drinks

available in the market. We will study each on the basis of situation of consumer thirst,

health benefit, cost and taste. Consumer is likely to think on these grounds before drinking a

beverage of his choice. We now see the table.

Conation

Cognition

Affective

Drinks

Product Fuzzy Drinks/Energy Drinks Milk

Attribute Thirst

Quench

er

Cost Taste Health

Benefits

Density Thirst

Quencher

Cost Taste Health

Benefits

Density

Beliefs Generally used

as

substitut

e for

water

when

thirsty.

Cheaper than

milk

mostly,

availab

le

everyw

here.

Tastehas buzz

of

carbonat

ed water

which

also

leads to

addictio

n of

Not thatgood for

health ,

it is

drunk

mostly

because

its a fad

Softdrinks are

not at all

dense.

Notperceived

as a

replacem

ent of

water

Expensive than

cold

drinks

but sill

affordab

le.

Mostpeopl

e like

it.

Addin

g

flavo

ur

make

s it

Lot ofbenefits,

outnum

ber cold

drinks by

a big

margin.

One ofthe

importa

nt

factors

when

deciding

the

quality

of milk


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Table: A consumers belief system for different type of drinks

Thus if we analyse the table, we can see that a consumer perceives milk and cold drink

differently in different situations according to their attributes. These perceptions have been

formed due to their own knowledge as well as their experiences with different beverages.

Thus if we see the five situations attitude can be positive and negative towards milk:

Thirst Quencher: The extent to which milk is perceived as a substitute for water when

thirsty and water is not available. Whether the consumer will go for a cold drink or milk in

such a situation? This is a very common situation for most consumers when in the market

etc and shows customer attitude towards milk as well.

Cost: A 300 ml of a cold drink costs around Rs. 12 and a 100 ml bottle of flavoured milk costsaround Rs. 20 so there is more than just noticeable difference in the pricing. It might be a

factor in favour of cold drinks as well. So when consumer is faced with a situation of seeing

price over other factors he will have a negative attitude towards milk.

Taste: Consumers might perceive milk as a drink relished by children only so it might not go

with their personality or they may not identify themselves with the drink. On the other hand

some consumers might like flavoured milk so it forms positive or negative attitude towards

milk.

Health Benefits: This is probably the most important factor relating to the creation of

positive attitude towards drinking milk as right from childhood we are made aware of the

benefits of drinking milk. Thus consumers generally tend to have a positive attitude when

faced with the situation of evaluating health benefits of milk. However some consumers

could also think negatively as there is a common perception that drinking milk leads to

higher cholesterol levels so perceptions change attitudes and a negative attitude could be

fuzzy

drinks.

good.

Evaluatio

ns

+++ ++++ ++++ -- + - + ++ ++++ ++++


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developed. There is also a perception in Indians that milk is an acidic product and thus they

prefer juices

Density: It is a common notion amongst us Indians that the denser it is that better the

product will be. This factor works in favour of milk. The quality of milk is measured by

density of it. Packaged milk is less dense whereas the milk directly from the cattle is high on

density and thus is considered pure. The same principle is applicable to juices but it does not

apply to soft drinks. Juices if homemade will be high on density and thus will be considered

high on health benefits.

Other situations can also arise which can lead to a change in attitude towards drinking milk

like:

Importance of drinking milk when on a weight reducing diet.

Adults over 65 need more milk than others.

Children need to drink milk for their body development.

Need for refreshment, thus treating milk as a product to refresh.

QUESTION-4

INFLUENCING ATTITUDE: USING ATTITUDE TOWARS THE AD MODEL

The following figure depicts the attitude-towards-the-ad model. As the model depicts, the

consumer forms various feelings (affects) and judgements (cognitions) as a result of

exposure to an ad. These feelings and judgements in turn affect the consumers attitude

towards the adand beliefs about the brand secured from exposure to the ad, and these two

factors in turn influence the consumers attitude towards the brand.

According to Fcb-Ulka, the advertising agency behind the highly successful doodh doodh

campaign the decline in milk consumption during that period was greater among kids /

teens. Milk had taken a backseat owing to the growing popularity of soft drinks at that time.

Also, there was a general perception among adults at that time that milk was essential for

growing children and not for them.

At that point of time, had the company decided to design an advertisement that would aim

at educating the consumer about the benefits of milk, it would have made the product

(milk) even more drab and boring.


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The communication task at hand with the company was therefore designed to change the

consumer attitude towards milk, from being a boring and conservative drink to a youthful,

exciting and nutritional energy drink. For this the communication had to had the look and

feel of a soft drink commercial, yet be firmly rooted in the nutritional value of milk.

The advertisement first hit the television screens in the year 1996, and it was initially a 60

seconds commercial which was later trimmed to 40 seconds. The attitude-towards-the-ad

model tells us how the glass full milk campaign was successful in changing consumer

attitudes.

The doodh doodh advertisement had a Hinglish jingle, a jingle which included words from

English as well as Hindi, so the exposure to the ad led to the generation of positive feeling

from the ad among both the elderly as well as the younger generation, since the Hindi part

connected well with the elderly while the English part made the product look more like a

new generation and hip product, comparable to the soft drinks. Also the purpose of the

Hinglish lyrics of the jingle was to ride on the popularity of movie songs and music videos of

that time. The advertisement showed energetic people of all agesenjoying milk, while not

forgetting the benefits from milk. So there was a positive attitude towards the

advertisement as well as general acceptance for the ad among all age groups. As such there

was no reason for non-acceptance for the advertisement since it wasntharming either the

health or the sentiments of the society, but any other advertisement trying to teach people

about the benefits of milk would have led to the product perception of being boring and

could have led to perceptual blocking of the ad.

The positive feelings generated as a result of the doodh doodh ad also affected the

consumer belief about the brand (milk). The advertisement made the consumer believe

that milk is a multi attribute drink which gives comparable pleasure as the soft drinks

while at the same time provides energy to the consumer.

Though the commercial was very successful that time no doubt, but now days due to entry

of foreign brands like Tropicana, Real etc are playing a major role. These companies are

targeting the breakfast habits of Indian consumers, a time when majority of Indians

consume milk in one way or the other. The consumption has declined a bit in the last fewyears in India but there is nothing to worry.


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Companies like Fun Foods who main business is dependent on consumption of milk. Such

companies constantly involved in changing the trend of milk consumption in India.

Here is a small graphics which shows the trend of consumption of flavoured milk globally:

Attitude towards the brand

All these factors made the doodh doodh campaign a success for NDDB, with the result

that the commercial was voted by viewer in Indias number one satellite channel as one of

the best commercials aired on television.

Qualitative research findings by the ad agency FCB ULKA showed tremendous popularity

of the commercial across all age groups.

From the point of view of industry, per capita availability of milk went up from 198 gm/day

in 1995-96 to 204 gm/day in 1998. Milk consumed through NDDB went up from 100 lakh

litres/day in 1995-96 to 113 lakh litres/day in 1998.

(Source: FCB ULKA - Brand Building Advertising by Parameswaran)


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The following chart shows the trend of milk production in India from 1990s till 2013:

Note: Figures are Million Tonne.

Source: Ministry of Statistics and Programme Implementation,

Govt. of India. (10249),

Ministry of Agriculture, Govt. of India. (10517) &

Rajya Sabha Unstarred Question No. 2643, dated on 03.12.2010.

The figure shows that there was a definite change in consumer attitude towards milk, a

definite favourable change which led to increase in production and consumption of milk.

Since then the farmers of NDDB are setting new production records every year.

In recent years consumers in India have become health conscious. Milk have always been

viewed from health angle, thus the demand for milk will increase as the consumers become


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aware. But here is a twist in the story, juices have penetrated enough and thus started

eating the share of Milk products.


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Chapter 5: CONCLUSION

Following conclusions can be made after studying this mini project:


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It is for sure that the attitude of consumers have changed since the advent of Glass

full campaign, it is evident from the massive change in the consumption figures of

the people.

In recent years consumers have become more and more health conscious. The

consumers attitude regarding the healthier lifestyle has changed and after this

campaign it became all the more evident. Another reason for this shift was the

default of the cola companies with respect to the materials used by them in their

drinks. All the negative publicity pushed the consumer in favour of milk.

The ethical considerations are necessary because sometimes in order to enhance the

production there is over exploitation of the animals.

Ethical considerations for soft drinks will be different from that those of milk. Cola

companies have to keep the health aspect in mind and should come up with some

product which takes care of their health.

The ethical considerations for other drink producers are different from that of milk

producers as they dont have to take into account animals and life related issues

while there are other considerations as the harms to the environment and eco life.

A consumer perceives milk and cold drink differently in different situations according

to their attributes. These perceptions have been formed due to their own knowledge

as well as their experiences with different beverages.


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Chapter-6: REFERENCES

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advertisement-on-investors-a-case-study-in-hdfc-standard-life-insurance

Advertising.(n.d.). Retrieved from Drypen: http://drypen.in/advertising/the-5-ms-of-advertising-

with-respect-to-the-doodh-doodh-campaign.html

Bhaskaran, S. (n.d.). Culture's Consequences: Dairy Market Opportunities.Retrieved from

http://marketing-bulletin.massey.ac.nz

Chaudhari, A. (n.d.). 4Ps: Business and Marketing.Retrieved from

http://www.4psbusinessandmarketing.com/28072011/storyd.asp?sid=4705&pageno=1

Dairy Cooperatives. (n.d.). Retrieved from National Dairy Development Board:

http://www.nddb.org/partners.html

Consumer Attitude Formation and Change. In L.G.Schiffman, Consumer Behavior.Pearson.

Legal and Ethical Issues in Advertising.(n.d.). Retrieved from egyankosh:

http://www.egyankosh.ac.in/bitstream/123456789/35507/1/Unit-19.pdf

Ltd., A. I. (n.d.). Retrieved from Amul: www.amul.com

Ministry of Commerce and Industry, G. o. (n.d.). Retrieved from Agricultural & Processed Food

Products Export Development Authority:

http://agriexchange.apeda.gov.in/product_profile/prd_profile.aspx?categorycode=0404

Miryala, D. R. (n.d.). Advertisements' Effect on Food Habits of Children- An Empirical Study. Indian

Journal of Commerce & Management Studies.

O.Kilic, C. G. (n.d.). Factors afftecting fluid milk consumption. Agricultural Journal.

Attitude toward the Ad model. In Parameswaram, FCB ULKA Brand-Building, Advertising.

Sandeep Singh Virdi, D. B. (n.d.). Consumer Behaviour Regarding Branded Milk vis-a-vis Unbranded

Milk. Indian Management Studies Circle 11(2007)-105-125.


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Chapter-7: APPENDIX

OPERATION FLOOD

Operation Flood: one of the world's largest rural development programmes

Launched in 1970, Operation Flood has helped dairy farmers direct their own development,

placing control of the resources they create in their own hands. A National Milk Grid links

milk producers throughout India with consumers in over 700 towns and cities, reducing

seasonal and regional price variations while ensuring that the producer gets fair market

prices in a transparent manner on a regular basis.

The bedrock of Operation Flood has been village milk producers' cooperatives, which

procure milk and provide inputs and services, making modern management and technology

available to members. Operation Flood's objectives included:

Increase milk production ("a flood of milk")

Augment rural incomes

Reasonable prices for consumers

Programme Implementation

Operation Flood was implemented in three phases.

Phase I Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter

oil gifted by the European Union then EEC through the World Food Programme.

NDDB planned the programme and negotiated the details of EEC assistance.

During its first phase, Operation Flood linked 18 of India's premier milk-sheds with

consumers in India's four major metropolitan cities: Delhi, Mumbai, Kolkata and

Chennai.

Phase II Operation Flood's Phase II (1981-85) increased the milk-sheds from 18 to 136; 290

urban markets expanded the outlets for milk. By the end of 1985, a self-


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sustaining system of 43,000 village cooperatives covering 4.25 million milk

producers had become a reality. Domestic milk powder production increased

from 22,000 tons in the pre-project year to 140,000 tons by 1989, all of the

increase coming from dairies set up under Operation Flood. In this way EEC gifts

and World Bank loan helped to promote self-reliance. Direct marketing of milk by

producers' cooperatives increased by several million litres a day.

Phase III Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the

infrastructure required to procure and market increasing volumes of milk.

Veterinary first-aid health care services, feed and artificial insemination services

for cooperative members were extended, along with intensified member

education.


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Operation Flood's Phase III consolidated India's dairy cooperative movement, adding 30,000

new dairy cooperatives to the 42,000 existing societies organised during Phase II. Milk sheds

peaked to 173 in 1988-89 with the numbers of women members and Women's Dairy

Cooperative Societies increasing significantly.

Phase III gave increased emphasis to research and development in animal health and animal

nutrition. Innovations like vaccine for Theileriosis, bypass protein feed and urea-molasses

mineral blocks, all contributed to the enhanced productivity of mulch animals.

From the outset, Operation Flood was conceived and implemented as much more than a

dairy programme. Rather, dairying was seen as an instrument of development, generating

employment and regular incomes for millions of rural people. "Operation Flood can be

viewed as a twenty year experiment confirming the Rural Development Vision"(World

Bank Report 1997c.)

Source: Wikipedia

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

The National Dairy Development Board (NDDB) was founded in 1965 to replace

exploitation with empowerment, tradition with modernity, stagnation with growth,

transforming dairying into an instrument for the development of India's rural people.

NDDB began its operations with the mission of making dairying a vehicle to a better future

for millions of grassroots milk producers. The mission achieved thrust and direction with the

launching of "Operation Flood", a programme extending over 26 years and which used

World Bank loan to finance India's emergence as the world's largest milk producing nation.

Operation Flood's third phase was completed in 1996 and has to its credit a number

ofsignificant achievements.

As on March 2009, India's 133,349 village dairy cooperatives federated into 177 milk unions

and 15 federations procured on an average 25.1 million litres of milk every day. 13.9 million

Farmers are presently members of village dairy cooperatives.
http://www.nddb.org/aboutnddb/operationflood.htmlhttp://www.nddb.org/achievement/physical-progress.htmlhttp://www.nddb.org/achievement/physical-progress.htmlhttp://www.nddb.org/aboutnddb/operationflood.html


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Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes

by placing dairy development in the hands of milk producers and the professionals they

employ to manage their cooperatives. In addition, NDDB also promotes other commodity-

based cooperatives, allied industries and veterinary biologicals on an intensive and nation-

wide basis. Dr (Ms) Amrita Patel is the Chairman of NDDB.

Source: Wikipedia

Leading Milk processing companies in India

The Leading Dairy Product Companies in India consist of both government organizations and

private companies.

The Leading Dairy Product Companies in India, which are under the control of different state

governments, are generally cooperatives. These cooperatives buy milk from the dairy

farmers at minimum support price. Later these cooperatives process it to different high

nutritious milk products. The leading private milk product companies of India are more into

producing and further processing of these milks. Most of the Leading Dairy Product

Companies in India are well equipped to handle processing of bulk quantities of cow and

buffalo milk. Further, the technology used by these leading companies of India to process

the milk is at par with international standards.

Furthermore, they strictly adhere to international quality manufacturing and environment

safety standards and such that they follow GMP and HACCP. Some of these Leading Dairy

Product Companies in India are having state-of-the-art R&D centers, aggressively working

on development of quality milk products rich in nutritious value. India is the largest

producer of milk and milk products in the world. However, the country has recorded the

highest number of malnourished children in the world. These Leading Dairy Product

Companies in India are working together with the National Dairy Development Board

(NDDB) towards the elimination of this problem. The Leading Dairy Product Companies in

India are also working with the National Dairy Development Board towards educating dairy

farmers on producing quality milk, cattle disease control, cattle feeding, genetic

improvement of cattle, vaccination and other allied education on dairy farming.


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Some of the leading dairy product companies in India are:

Amul and Gujarat Cooperative Milk Marketing Federation Ltd

The Orissa State Cooperative Milk Producer's Federation Limited (OMFED)

Andhra Pradesh Dairy Development Co-operative Federation Limited

Haryana Dairy Development Cooperative Federation Ltd

Choco~a`la Carte

Dynamix Dairy Industries Ltd

Kream Kountry

Mother Dairy

Vasudhara Dairy

Lactose (India) Ltd.

Modern Dairies Limited

Pastonji Ice Cream

Kings Ice Cream Limited

Param Dairy Limited

Dhruv Makhan (India) Limited

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