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User and Market study for Milking Machine

Anuj Verma

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Background

• India ranks 1 in milk production and produced 132.4 million tonnes of milk in 2012-2013(actual) and 140 million tonnes of milk in 2013-2014 (projected) - NDDB.

• Although mechanization in dairy sector is prevalent at processing level. But mechanization at individual milk producer level is very low.

• Sickle Innovations was founded in 2013 in IISC Bangalore with an aim to provide farming solution to improve conventional farming practices through design interventions.

• Recently got a project from IDMC to develop a milking machine to mechanize the dairy sector at individual producer level.

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What was not known by Sickle Innovations?

• Why penetration of milking machine is low in Gujarat?• What are the motivations to purchase milking

machine? • Who could be the potential target buyers?• What could be the most suitable milking machine for target

buyers?

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How did I proceed?

Background research through online resources and online databases

Exploratory study in Valasan village (Anand) through in depth interviews

Villages selection for study using cattle census and human census data

Surveys and in depth interviews in selected villages

Colour CodingSecondary

Source

Primary Source

Selected Villages For StudyDistricts Villages Total Survey

Banaskantha Suigam 10

Kachchh

Bhirandiyara 10Dhori 9

Sumrasar 9

Surendranagar

Reshamiya 10Dhokalva 10Vijaliya 10

AnandBedwa 8Davol 8

Sampling Plan• For exploratory study

Non probability sampling Convenience

• For main surveys Screening of those respondents who

own less than 5 bovines or own less than 3milking bovines

Non probability sampling Purposive• On the basis of herd size and three parameters

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Why penetration of milking machine is low in Gujarat?

• Milk producers possess following myths (reality is just opposite to this)i. Damage of teatsii. Elongation of teatsiii. Reddishness in teatsiv. Electricity Shock• Others reasons include lack of fund, lack of infrastructure, water scarcity in the

region, religious belief.• No demonstration or promotion in past in study areas except for Anand.

42%

29%

16%13% Myths

Own small herd sizeBovine trading businessOthers reasons

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What are the motivations to purchase milking machine?

28%

56%

5% 11%Scarcity of hired labour

Time constraints

Contingency Plan

Availability of subsidy/ trend

• Time constraints i. Main occupation is agriculture and business so not able to milk within

stipulated time periods.ii. Using home labour for milking.

• Contingency plani. When labours are absent.

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Who could be the potential target buyers?

Basis Variables

Number of milking buffalos

Number of milking

cows

Number of own assets

Infrastructure index Profile

Variables

Daily milk production

Socio Economic Classificati

on

Purchase intentionHerd Size

No. of milking bovines

Segmentation analysis attempted with following variables

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Cont’d…

Segment No

• Size• No. of

milking buffalos

• No. of milking cows

• Infrastructure index

• No. of assets own

Segment 1

• 32%• High

• Low

• High

• High

Segment 2

• 42%• Low

• Medium

• Low

• Low

Segment 3

• 7%• Very high

• High

• Low

• Low

Segment 4

• 19%• Low

• High

• Very high

• Very high

Non Users Users

Four distinct segments were identified

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Cont’d…

Segment No

Purchase Intention

SEC Herd Size More than 5 milking bovines

Segment 1

63% 89% members belong to SEC

category A and B

4/5 members own more than 10

bovines

74% members

Segment 2

51% 86% members belong to SEC C,

D and E

1/2 members own more than 10

bovines

28% members

Segment 3

66.66% 50% members belong to SEC

category A and B

All members own more than 10

bovines

All members

Segment 4

Existing using segment

100% members belong to SEC

category A and B

3/4 members own more than 10

bovines

75% members

Profiling of segments

• Using K-means clustering

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Cont’d…Segment No. Segment 1 Segment 2 Segment 3 Segment 4

Daily milk production> Than 40 litres

63% respondents

17% respondents

All respondents

94% respondents

• Segment 1 can be seen be as prospects on account of their close similarity with existing user segment.

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What could be the most suitable milking machine for target buyers?

One Two

21500 24500 28000

Only Electricity Alternate Source of Power

Stationary Movable

• Through conjoint analysis

How many bovines can be milked at a time Price

Machine type (Stationary/Movable)

Power Source

0.433

0.865-0.128

-0.383

2.135

1.0637

1.327

0.663

• Suitable machine:- Run at alternate source of power, can milk two bovines, movable and priced at 21500.

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How much importance does target segment give to individual attributes?

Power

source

How m

any b

ovine

s can

be m

ilked

at a

time

Machine

type

(Stat

ionary

/Mov

able)

Price

31.00%26.00%

23.00%20.00%

• Through Conjoint Analysis

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Recommendations

Rec 1• Target SEC A milk producers, who have decent

infrastructure, own 10 bovines, out of which at least 6 are milking with production of more than 40 litres per day.

Rec 2• Design a hybrid machine which can simultaneously milk at

least 2 bovines and portable.Rec 3• Demonstration and active below the line promotion to break

myths and speed up diffusion.

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THANK YOU