discovering new point of differentiation

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Most profitable strategies are built on differentiation: offering customer something they value that competitors do not have. A company have opportunity to differentiate itself at every point where it come in comes in contact with its customers.

MOTHER DAIRY

DISCOVERING NEW POINT OF DIFFERENTIATION 2009

MOTHER DAIRY | WHITE GROUP 2

GROUP ASSIGNMENT SUBMISSION

Section A: Group Details

Assignment No.: A5

Batch: SCMLD

session Day & Time: Mon – II

Group Colour: WHITE

Section B: Assignment Details:

Assignment Topic: DISCOVERING NEW POINT OF DIFFERENTIATION.

Training Topic & Session:

FINDIND THE POINT OF DIFFERENTIATION IN A COMPANY & SUGGESTING FURTHER DIFFERENTIATION.

Submission Date & Time: 27-12-2009 ,Sunday - 01:00 p.m.

Section C: Group Members:

No. Name

Div. & Roll No. PC

PN

AB Grade

1 Nisha Sharma

D-49

√

C

2 Nagesh Verma

D-64

√

A

3 Abhishek Sharma

D-62

√

A

4 Megha Verma

D-68

√

A

5 Maganpreet

D-02

√

A

6 Kuldeep Singh

C-37

√

A

7 Puneet khanduja

C-63

√

A

8 Rohit

C-38

√

A

9 Soumitra

C-71

√

A

10 Sumit

C-78

√

A

11 Swati

C-17

√

A

12



Remarks

- We as a group got a chance to think on the possible ways of differentiating highly commoditized

products. The brainstorming among the group gave deep insights about possible ways of

differentiating.



Chapter 1

Company profile

Mother Dairy – Delhi was set up in 1974 under the Operation Flood

Programme. It is now a wholly owned company of the National Dairy

Development Board (NDDB).

Mother Dairy markets & sells dairy products under the Mother Dairy brand

(like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of

edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables

and fruit juices at a national level through its sales and distribution

networks for marketing food items.

Mother Dairy sources significant part of its requirement of liquid milk from

dairy cooperatives. Similarly, 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.

It is Mother Dairy’s constant endeavor to

(a) Ensure that milk producers and farmers regularly and continually

receive market prices by offering quality milk, milk products and other food

products to consumers at competitive prices and;

(b) Uphold institutional structures that empower milk producers and

farmers through processes that are equitable.

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. 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.

Mother Dairy markets approximately 2.8 million liters of milk daily in the

markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk

has a market share of 66% in the branded sector in Delhi where it sells 2.3

million liters of milk daily and undertakes its marketing operations through

around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy.

The company’s derives significant competitive advantage from its unique

distribution network of bulk vending booths, retail outlets and mobile units.

Mother Dairy ice creams launched in the year 1995 have shown continuous

growth over the years and today boasts of approximately 62% market share

in Delhi and NCR. Mother Dairy also manufactures and markets a wide

range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk,

Lassi & Flavored Milk and most of these products are available across the

country.

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 Company’s

modern distribution facility in Delhi with an annual capacity of 200,000 MT.

An IQF facility with capacity of around 75 MT per day is also operational in

Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of

120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies

quality products in the international market. With increasing demand

another state-of-the-art fruit processing plant has been set up at Bangalore



with fruit handling capacity of around 250 MT per day.

Mother Dairy has also been marketing the Dhara range of edible oils for the

last few years. Today it is a leading brand of edible oils and is available

across the country in over 2,00,000 outlets. The brand is currently available

in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined

Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered

Groundnut Oil.



Chapter II

Product differentiation

Token Milk

Standardized

Milk

Toned Milk

Cow Milk

Full Cream

Milk

Skimmed

Milk

Double

Toned Milk



1. Products.

Token Milk(With the Magic of

Homogenization):

I) This milk is prepared by

homogenization and is claimed to

be thicker and easier to digest.

II) It consists of Milk Fat-3% and SNF

-8.5%.

III) Fortified with Vitamin A thus helpful for good complexion and

avoiding night blindness.

IV) Targeted upon children and recommended to be give twice a

day.

V) Claimed as the best for preparation of deserts.

VI) Available through Bulk Vending Machines in Delhi and NCR.

Full Cream Milk(For Complete Nutrition):

I) It contains Milk Fat-6% and SNF-9.0%.

II) It is packed with Energy and nutrition

essential for growing kids to keep them

strong from within and grow faster.

III) Targeted upon children and

recommended twice daily.

Standardized Milk(For Balanced Fat):

I) It contains Milk Fat-4.5% and SNF-8.5%.

II) Endorsed as Balanced Milk with balanced amount of cream at

affordable price.

III) Targeted upon families.



Toned Milk(for Balanced Nutrition):

I) It contains Milk Fat-3% and SNF-8.5%.

II) It is claimed as a perfect blend of good

health and wholesome taste.

III) Targeted upon people in search of a

nutritive balanced diet with no compromise

on taste, specially pregnant women.

Double Toned Milk(with Low Fat Contents):


II) Targeted upon all calorie conscious people

who prefer the taste of milk but are wary

of the cream contents.

III) Endorsed as best complement for daily

workout.

Skimmed Milk(Fat Free Option):


II) Targeted upon the senior members of the family who need

nutrients but can’t afford fat to maintain healthy heart and

body.

Cow Milk(Easy to Digest):


II) Also contains Carotene which is a source of Vitamin A,B12 and

Vitamin D.

III) Targeted upon kids for their growth and is claimed as easily

digestible.

UHT Milk(Long Life Milk):

I) Available in two options-Toned Milk(3%),Double Toned(1.5%).

II) Prepared through Ultra Heat Treatment that makes milk germ

free.



III) Targeted basically upon people who are very busy or travelling

and cant treat milk before use , as it can be directly consumed

from the pack without boiling .It saves time.

IV) Available in two types and caters to the choices of people

according to their preference of fat contents.

Chillz (Flavoured Milk):

I) Made from double toned milk.

II) Available in three flavours-Kesar Elaichi, Chocolate,Vanilla.

III) Targeted on people who prefer chilled flavored milk as compared

to the normal milk.

IV) Preferred choice for a light and refreshing break.

2) Company is creating need among the people by creating

awareness about the product consumption. The procedure of

preparation and the effect on nutrition value of milk.

3) They are facilitating people by providing recipies of the deserts

on the website thus helping them with best usage of the product

innovatively.

Eg.Chocolate cookies,ice cream,Iced coffee.

Promotion

1. “Piyo Pure” Campaign & “milk

Campaign”

These are the ongoing campaigns

initiated by Mother Dairy.

“Piyo Pure” campaign promotes its

different types of milk to different sets of

consumers as given in the pictures.



“Milk Campaign” looks forward to position the general product milk

& then appeals the residents to drink Mother Dairy milk.

Previously the campaign the country needs you grow faster campaign,

specially focused at promoting the milk products to parents for the

faster growth of their children.

International Business-

The company caters to the profitable international market. According

to their needs it provides the following products

Tonned Homogenized milk

This milk comes in tetra pack of one liter it last longer than the

ordinary milk. This is meant majorly for Export.

Skimmed milk

This is sold in bigger packs as it is to be transported

internationally. It comes in 25 K.G pack.

Full cream milk powder

This is for those people who want full fat milk. This also comes in

25 K.G pack. This is meant for Export Purposes.

Token milk This milk is promoted as milk that provides real tasty Tea &

Coffee. Apart from this it is also advertised as best for preparing deserts. It

is available only in Delhi and N.C.R



Part II

Chapter 2

MAPPING THE CONSUMPTION CHAIN

The consumer feels the need majorly in the morning or evening, or in some

cases while travelling.

Thing of buying

the product.

Buys the product

from retailer or

booth

Retailer or booth

Store the

product

Use the

product

Dispose the

product.

Accompanied by

children or family

Storage may

be made

convenient.

Different

type of

usages.

Can be made

ecofriendly and

recyclable



Is there is a way to differentiate selling milk.

Question 1. What else is your customer doing when they buy milk?

Coming back from jogging.

Coming back from office or work.

Hanging out with friends.

Question 2.whom are they with when they buy milk?

Along with family or friends.

Question 3. Where does your customer buy milk?

Buys from retail shop.

Parlor/booth.

Sports complex.

Milk vending machines at accessible places.

Online subscription/membership.



Question 4. Does your customer have any concern?

Buys in the morning or in the evening.

At the time of parties or functions.

Restaurants, Canteens buy every day.

Long lasting milk for travellers.



Application of article

I.How do people become aware of their need for your product?

1. Mother Dairy milk is very good for growing children and others as if it

contains Omega 3 (Enhances mental intelligence & Physical strength).This kind of

positioning impel the parents to buy tries product.

2. Soya milk is good for health conscious at the same time it is very nutritious.

Such product and positioning will definitely add many customers. Such product

and positioning will definitely add many customers.

3. By providing milk powder (Readymade Sugar and other flavoured added) to

those customers who frequently travel, company can create & address such unfelt

needs.

4. By putting maps, in each shop selling Mother Dairy’s milk and pointing

the locations where other it’s booth parlours or vending machines are available,

We can make the consumer aware of the wide distribution. Consumers can

adjust their consumption according to that. (Just as maps provided in Delhi

metro stations indicating the availability of Refreshment corners).

II.How do consumers find your offering?

1. Mother Dairy can install its vending machines in the places like

Railway stations, Colleges, Sports complexes & Public parks.

2. In this system by putting a coin of Rs.5 (or whatever the case may be)

the person gets flavoured & cold milk glass. This milk will be available in

many verities in many versions, will become very popular.

3. In order to handle the customer queries & record the feedback a toll

free number should be provided.



4. For better information to customers each & every think about the

products should be put on the website.

III.How do consumers make final selection?

1. By helping the customers know the needs of their body, we can make

the selection easier. By putting a weighting machine in every shop/booth,

the customers can check their weight. Then there will be a scale which tells

them whether their body weight is right or not. This information will tell the

customers which milk product they should buy (like Soya milk, High fat

milk, and Toned milk).

2. There should be pamphlets which informs and educates the readers

about the proper diet. When these pamphlets are read by customers they

adopt the proper protocols. These pamphlets will be very creative for

example calendar on one side & Mother Dairy advertisement on the other

side.

IV.How do customers order and purchase your product or

service?

1. There should be online facility by customers can pay for milk for one

month (or as convenient). After this they will get milk delivered at their home.

Along with this they will get a monthly or fortnightly magazine about on

health & diet from Mother Dairy. Because of this customers will be satisfied

and company get chance to advertise.

2. In order to facilitate the industrial customers, they can make the

ordering process easier. In this process the inventory level of the user is

constantly informed to Mother Dairy, whenever it goes below a certain limit it

gets to know the need to replenish the stock.

V.What happens when your product or service is delivers?



A convenient pack i.e. easier to tear. The existing packs are not convenient to

tear; we have to use a scissor where there are chances of spilling the milk.

VI.How is your product installed?

1. As there will be vending machines so the customers should be

informed about how to use a machine, with the help of flow chart & apart

from this it will show the contents of each kind of milk.

2. The package of milk there will be clear instruction on how tear the

pack & pour the content into a vessel.

VII.How is your product or service paid for?

1. Few days back there was news from Telecom industry that is Telecom

industry is in talks with RBI to facilitate small credit transfer. So if it

happens then Mother Dairy can use this facility in business where by

customers can pay through their mobile phones.

2. In the peak hours it becomes very difficult to manually give the

product to the customers, so in order to give better service there will be a

vending machine so customers can get the milk pack.

3. To facilitate the monthly subscription of milk online payment through

credit card facility should be provided.

4. Providing monthly (or whatever period) subscription cards so as to do

away with the of daily payment, for e.g. Sometimes they do not have change.

VIII.How is your product stored?

There are other industries (edibles & confectionery) which use milk as their

Raw material; Mother Dairy can provide them milk. This way the former can

concentrate on processing & value addition & Mother Dairy can address their

flexible needs as it provides the Dairy solution.

IX.How is your product moved around?



1. Apart from the house hold uses many youngsters would like to

consume milk. If it is cool & convenient so by introducing pack such as tetra

packs, cans they can cater their needs.

2. Apart from plane milk packets there should be sugar added milk.

3. The company can introduce a milk powder on the lines of Ready tea. A

travelling person can carry it along & use it by adding water in it.

X.What is the customer really using your product for?

1. Milk is used for many purposes in households by informing &

educating them about different Recipes’ we can help them making better use

of product. These recipes’ will be available throw websites & pamphlets.

2. We can provide pictorial representation of recipes’ so that people can

make out it very easily.

XI. What happens when your product is disposed of or no

longer used?

1. There would be dust bins outside the shops or booths bearing the

advertisement of Mother Dairy as many customers buy the milk products &

disposed at the same time, they can throw their tetra pack & plastic bags in

the bins which can be recycle very easily.

2. The packet should be mailed in the way that, it is not disposed by

people; rather they use it in some way or other. For e.g. making a zigzag

puzzle on the back.

discovering new point of differentiation

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