“Milk & Milk product sales strategy in Gorakhpur”

Overview of Gorakhpur marketTotal geographical area 3,483.8 km2

Total Population (2001) 8,53,000

Sex ratio (2001) 1000 /959

Total consumption of milk (@190 ml)

1,62,070 ltr/day

Current Competitors. (Organized). (Unorganized).

Parag (4.3%) , Amul & Amrit Varsha.Khataal & Milk Man (> 80%).

Average milk sales up to 25th Aug. 260 ltr/day (Min – 50 ltr & Max – 800 ltr)

Average Product sales up to 25th Aug.

3868.56 Rs/day

Current market network. Golghar, Cinema Road, Asuran chowk, gorakhnath Road, Rapti nagar colony, Shahpur Colony, Mohaddipur, Jatepur Railway colony, Rail vihar.

SWOT Analysis of sudha in gorakhpur

Strength 1. Mnemonic certified brand image of Sudha. 2. ISO /HACCP Certified Dairy.3. Good presence of people related to Bihar.4. Milk & milk product quality is better than

competitors.5. Sudha Peda is hot cake for Gorakhpur

Market.

Weakness1. Awareness regarding pouch milk

(pasteurized) is poor.2. Long distance between Gopalganj plant and

Gorakhpur market. 3. Huge hidden expenses.4. Low commission of retailers on milk & milk

products.

Opportunity1. Untapped market such as Padrauna, Devaria,

Kasia.2. Lack of presence of strong competitors3. Wide product range of Sudha.4. Good Demand of high fat milk.5. Good demand of Sudha surbhi, Lassi & Dahi.

Threat1. Presence of competitors like Amul, Regional

brand, Milkman and Khataal.2. Wrong perception about pouch milk.3. Market opens late in morning.

Competitors analysis.

Amul Milk variety Amul Gold

Milk price Rs 40/ltr

Product Variety Butter, Cheese, Mattha, Ice-Cream, Amulya (Milk Powder), Amul Kool, chocolate.

Strength • Strong Brand Image.• Large number of Retail Outlet.• Presence of exclusive Amul Parlour.• Strong advertisement with good visibility in market.

Weakness • Pasteurized milk is not marketed.• Low margin for retailers.

ParagMilk variety Toned Milk Standard Milk

Milk price Rs 26/ltr Rs 30/ltr

Product Variety Dahi, Mattha, Paneer .

Market Share 4.32%

Strength • Production Unit available in Gorakhpur.• Both Morning & Evening supply.• Serving Gorakhpur market for a long period.

Weakness • Low retailer base.• Perceived as a powdered milk by consumers.• Low visibility.

Objectives. To achieve sales figure of Milk 6500ltr/day till

July, 2011.Prospective Sales Target for different quarters– Target for 1st Quarter Up to 2500 ltr/day.– Target for 2nd Quarter Up to 4000 ltr/day.– Target for 3rd Quarter Up to 5500 ltr/day.– Target for 4th Quarter Up to 6500 ltr/day.

• To increase product sales.

Marketing strategy to achieve the objective.

1. Market Segmentation.

2. Implementation of marketing mix.

Product strategies.

Price Strategies.

Distribution/place Strategies.

Promotional Strategies.

Market SegmentationMarket Segment Target Product.

Current

Target (Aug &

Sept)

House Hold Milk & Milk Product

Sweet shops Milk

Institute like hostels, hospitals etc. Milk & Milk Product

Gorkha Regiment, Airforce Milk /Table Butter/Paneer.

Market Segment Target Product

Next Target(Oct. &

onwards)

Gorakhpur Route (Deoria, Kasia, Padarauna)

Milk & Milk Products

Product Strategies.

Product Availability

Milk Milk Product Objective

August TM Ghee, Peda, Rasogullah Tin Pack, Balusahi Tin Pack

Long shelf life product.

September TM, SM Plain Dahi, Misti Dahi, Honey Dahi, Paneer & (above products)

Short shelf life product (After educating retailers).

October & Onwards

TM, SM (with evening supply)

Rasogullah Cup, Balusahi Cup, Butter, Surbhi & (above products).

Lassi would be launched in next summer season.

Price strategies

Creating maximum values for consumers’ money & effort.

Distribution StrategiesDifferent zones in Gorakhpur.

Months Zone Areas under particular zone Reasons to cover these areas.

August Zone 1 Golghar, Ram leela Maidan, Gorakhnath Road, Aluminum Factory, Jatepur Railway colony, Asuran Chowk, Shahpur, Rapti nagar colony, Rail vihar, Aam Bazaar.

Consumers already aware of Sudha .

September Zone 2 Ghanta Ghar (Urdu Bazaar, Hindi Bazaar), Geeta Press, Betihata, Daudpur, Indira Nagar, Rai Ganj, BasantPur.

Meanwhile we would educate the customers.

October & Onwards

Zone 3 Rajendra Nagar, Dayanand Nagar, Vistar Colony, Vikash Nagar.

Contd.

Zone 4 Kawwa Bagh Colony, Railway stadium colony. Contd.

Golghar, Ram leela Maidan, Gorakhnath Road, Aluminum Factory, Jatepur Railway colony, Asuran Chowk, Shahpur, Rapti nagar colony, Rail vihar, Aam Bazaar.

ZONE 1

ZONE 4Ghanta Ghar (Urdu Bazaar, Hindi Bazaar), Geeta Press, Betihata, Daudpur, Indira Nagar, Rai Ganj, BasantPur.

Rajendra Nagar, Dayanand Nagar, Vistar Colony, Vikash Nagar.

Kawwa Bagh Colony, Railway stadium colony.

ZONE 2

ZONE 3

Strengthening Channel

Aug , Sept & Onwards

Appointing distributor for different zones.

Adding retailers having fridge, deep freezers.

October Onwards

Starting distribution of products by refrigerated van.

Providing deep freezer to the retailers.

Training of retailers about Sudha products (shelf life and its storage).

Distribution Strategies

Advertisement & Promotional strategies.Advertisement Promotional Activities.

August

Ad on regional electronic media.Ad in local dailies.Distribution of hand bill through newspaper.Shop painting, Banner, Poster, Dangler and Hoardings. Printed consumer price list.

Incentives for retailers (Free half ltr pouch on every 10 ltr of milk)

Distribution of Key Rings, Informative calendar, Diaries.

September &

onwards

Ad in local Magazines.

Distribution of Glow sign Board.

Distribution of free 200 ml pouch milk in house hold through door to door campaign. Educating consumers about pasteurized milk through campaign in different localities. Distribution of Sudha T-shirts, Cap. Educating student in different school s and distributing Sudha products as a gift. Participation in local trade fair. Organizing workshop for preparing recipe of paneer.

Thank You