EMERGINGTRENDSINBUSINESS STRATEGY ASUCCESSSTORYOFMOTHERDAIRYSUBMITTEDBY:SUBMITTEDTO: PROFESSORS.DAS ANKITATEJEE GURLEENKAURDHARI SUNAYANASHARMA NIKITABHUWALKA SONIJADON NEETAGUPTA
ABSTRACTFromchronicshortagesofmilk,Indiahasemergedtodayasthelargest producerofmilkinthe worldnearing100milliontonnes.Itoffersopportunitiesgaloreto entrepreneursworldwide,who wishtocapitalizeononeoftheworld'slargestandfastestgrowingmarkets formilkandmilkproducts.Theeffectivemilkmarketislargelyconfinedto urbanareas,inhabitedbyover25percentofthecountry'spopulation.An estimated50percentofthetotalmilkproducedisconsumedhere.Bythe endof2007,theurbanpopulationisexpectedtoincreasebymorethan100 milliontotouch864millionin2007agrowthofabout40percent.The expectedriseinurbanpopulationwouldbeaboontoIndian dairying.Presently,theorganizedsectorbothcooperativeandprivateand thetraditionalsectorcatertothismarket.InthisboomingperiodMother Dairyislookingtotakeadvantageoftheopportunitieswhichareingalore availableforallmilkmanufacturers.MotherDairyDelhiwassetupin 1974undertheOperationFloodProgramme.Itisnowasubsidiary companyofNationalDairyDevelopmentBoard(NDDB).MotherDairy sourcesitsentirerequirementofliquidmilkfromdairycooperatives. Similarly,MotherDairysourcesfruitsandvegetablesfrom farmers/growersassociations.MotherDairyalsocontributestothecause ofoilseedsgrowercooperativesthatmanufacture/packtheDhararangeof edibleoilsbyundertakingtonationallymarketallDharaproducts.Ofthe threeA'sofmarketingavailability,acceptabilityandaffordability,Mother Dairyisalreadyendowedwiththefirsttwo.Hencenoeffortsareneeded tomakeitacceptable. Itsavailabilityisnotalimitationeither,becauseoftheamplescopefor increasingmilkproduction,giventheprevailinglowyieldsfromdairy cattle.Itleavesthethirdvitalmarketingfactoraffordability.Howtomake milkaffordableforthelargemajoritywithlimitedpurchasingpower?That isessenceofthechallenge.
CurrenttheoriesofstrategyandorganizationsuggestthatMotherDairy benefitfromrelateddiversificationandtightcoordinationofthe multidivisionalstructure.Thisprojectaimstoprobeintothisissueby usingthetheoreticalframeworkofstrategy,structureandperformance. Threeissueswillbeaddressedbyus: a)WhatstrategiesandstructuredoesMotherDairyadoptinaconstantly changingandturbulentdevelopingeconomy? b)DotheinfluencesofMotherDairyhaveinteractioneffectswith environmentalconditions? c) HowdoesMotherDairymakemilkaffordableforthelargemajority withlimitedpurchasingpower?
TableofContentsIntroduction IndianDairyIndustryAProfile BackgroundofDairyIndustry IndianDairyProducts MajorPlayers HistoricalBackgroundofNDDB HistoricalBackgroundofMotherDairy ObjectivesandBusinessPhilosophyofMotherDairy TheProcessFlowofMotherDairy OrganizationalStructureofMotherDairyManufacturingPlant StrategiesImplemented 1.Focusedapproach 2.WiderSpread 3.ProductDifferentiation 4.SmartMarketing PerspectiveStrategiesappliedbyMotherDairy
1.StrategyforStrengtheningCooperativeBusiness 2.StrategyforProductionEnhancement 3.StrategyforAssuringQuality 4.StrategyforCreatinganInformationandDevelopmentResearch ProductandProcessTechnology DiversificationMovesbyMotherDiary ApplyingStrategiesforothersectorSafal CompetitioninDifferentProducts AdvertisementandPromotionbyMotherDairy MotherDairyandItsProgrammeforManagementofChange MotherDairyintheYear2007 RecentnewsonMotherDiary Bibliography
Fromchronicshortagesofmilk,Indiahasemergedtodayasthelargest producerofmilkintheworldcrossing97milliontonnes.Itis'TheOyster' oftheglobaldairyindustry.Itoffersopportunitiesgaloreto entrepreneursworldwide,whowishtocapitalizeononeoftheworld's largestandfastestgrowingmarketsformilkandmilkproducts.Abagful of'pearls'awaitstheinternationaldairyprocessorinIndia.TheIndian dairyindustryisrapidlygrowing,tryingtokeeppacewiththegalloping progressaroundtheworld.Theeffectivemilkmarketislargelyconfinedto urbanareas,inhabitedbyover25percentofthe country'spopulation.Anestimated50percentofthetotalmilkproduced isconsumedhere.Bytheendof2007,theurbanpopulationisexpectedto increasebymorethan100milliontotouch864millionin2007agrowth ofabout40percent.Theexpectedriseinurbanpopulationwould beaboontoIndiandairying.Presently,theorganizedsectorboth cooperativeandprivateandthetraditionalsectorcatertothismarket.
Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications. Moreover, National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India.
MISSION:To sustain market leadership in the production and marketing of a variety of liquid milk and milk products with assured quality at an affordable price, covering all market segments and to maintain the growth, prosperity and unity of all our internal & external customers.
OBJECTIVE:We shall provide regular and timely supply of milk and milk products at convenience distribution points under clean and hygienic conditions for different segments of consumers. We shall provide remunerative returns to milk producers and other associates. We shall promote innovations, continuous learning and improvement.
BOARD OF DIRECTORS: Paul Thachil, CEO, Mother Dairy India Ltd Mr. Sunil Bansal CEO Hortilculture SBU
TOP MANAGEMENT: . kiran singh Deputy General Manager - Corporate HR Saugata MItra
Chief People Officer Dinesh Agrawal
COO Narinder Bahga
General Manager (NGC), Noida Shashank Teotia
RESOURCE ANALYSISTANGIBLE: HUMAN: it provides employment to 2,500 employees. PHYSICAL:Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. offers its products in Delhi, Haryana, Kolkata, Punjab, Rajasthan, Uttaranchal, Uttar Pradesh, Maharashtra, Andhra Pradesh, and Gujarat. Undertake its marketing opertions through around 14,000 retail outlets and 845 exclusive outlets of moter dairy.
ORGANIZATIONAL CULTUREits a cooperative society and wholly owned subsidiary of National Dairy Development Board (NDDB) of India.Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products.
INTANGIBLETECNOLOGCAL: "Safal" initiative of the Mother Dairy, an institution promoted by the National Dairy Development Board, is currently handling 1,00,000 MT fresh fruits and vegetables a year with minimal post-harvesting loss. Mother Dairy is managing this by making use of 12 deep freezing chambers of 900 MT each, five cold storage facilities 1000 MT each and a freezing line (IQF) capable of handling 3.5 MT / hour. The central distribution facility (CDF) of Mother Dairy, is also having seven ripening chambers of 175 MT each and a dispatch hall and process hall of 2160 sq. metres and 3900 sq. metres area respectively for carrying out the task of preservation of highly perishable fruits and vegetables. RESOURCE OF INNOVATION: Mother Dairy is also helping farmers adopt new technologies. Various initiatives like enhancing the production, development, standardisation and commercialisation of storage of potatoes at a high temperature to arrest sweetening during storage etc are currently being taken up by the company. Controlled atmosphere storage for apples and pears is another new technique being DEVELOPED BY SAFAL TEAM The innovative strategies adopted by Mother Dairy had recently helped the company bag the first "Indian Innovation Award 2005." Reputation: Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India.
At Mother Dairy, processing of milk is controlled by process automation whereby state-of-the-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety Marketing: the company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad
SWOT ANALYSISSTRENGTHS The major strength of
WEAKNESSScarce Mother Dairy
the Mother Dairy is the different variety of Milks and a recognized BRAND name. The increasing demand for these products presents a great opportunity for the Mother Diary to increase and scale up the production.
Outlets. Less Margin given to the Outlet owners to match the existing competitors.
OPPORTUNITIES There is a scope of business as there is a demand for dairy products. Mother Dairy should open more outlets to get the maximum advantage of the demand. Need to put more stress in the face-toface direct marketing to reach to the customers. The increasing demand for these products presents a great opportunity for the Mother Diary to increase and scale up the production.
THREATSIncreasing competition from the other brands. Strong supply chain management by the competitors. Strong marketing strategy by competitors by offe