A Project Report

On
“Estimating the potential of market for Probiotic
food and formulating Marketing mix for
Probiotic Buttermilk”

Prepared and presented

To
GUJRAT COOPERATIVE MILK MARKETING FEDRATION
ANAND, GUJARAT (AMUL)

Under the guidance of

Mr. Abhishek Joshi, Mr. A. K. Bahali

Sales Department, Deputy Manager,
AMUL, Mumbai. AMUL, Mumbai.
By
Amit Salunkhe
Himanshu Gaur
Pratik Bakliwal
Prem Godara
Shakti Jaiswal
(4 May- 3rd July 2010)
th

CHETANA’S INSTITUTE OF MANAGEMENT AND RESEARCH,

BANDRA (E), MUMBAI
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 ACKNOWLEDGEMENT

With immense pleasure, we would like to present this project report for Gujarat Cooperative
Milk Marketing Federation Ltd., Anand (AMUL). It has been an enriching experience for us
to undergo our summer training at AMUL, which would not have possible without the goodwill
and support of the people around. As students of Chetana’s Institute of Management and
Research, Mumbai, we would like to express our sincere thanks to all those who helped us
during our practical training programme.

Words are insufficient to express our gratitude toward Mr. A. K. Bahali, Deputy Manager of
AMUL, Mumbai for having given us the opportunity to do our project work in the organization.
We would like to give our heartily thanks to Mr. Abhishek Joshi, Sales Department, AMUL.

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 TABLE OF CONTENTS

Sr.no Chapter Name Pg.no

1. Executive Summary 4
2. Introduction to Probiotic 5
3. Global Scenario 5
4. Indian Probiotic Market 6
5. Market competition in India 7
6. Research Brief 8
7. Customer Questionnaire and Analysis 9
8. Retailer Survey and Analysis 14
9. Estimating Market Potential 21
10. Product Brief 23
11. Logistics Management 25
12. Marketing Mix 26
13. Suggestions 28
14. Conclusion and Findings 29
15. Bibliography 30
16. Appendix 31

EXECUTIVE SUMMARY

In today’s competitive world while entering in the market it is very important to have good
knowledge of the potential of a particular market. To acquire a prominent market share it is
necessary to know market condition and facts.

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The project was undertaken with the title “Estimating the potential of market for Probiotic food
and formulating Marketing mix for Probiotic Buttermilk”

It also looked in the product promotion, placement, logistics and sales.

A research survey is done involving both customers and retailers; a sample size of 250 customers
and 100 retailers is considered. The sampling design was used is convenience sampling.

Estimation of market potential is done on the basis of results obtained from customer survey and
formulation of new marketing mix is done with the help of responses from retailer survey.

Objectives of Project:

 To get deeper insights of market of probiotic food globally and in India.

 Get an idea about consumer perception and attitudes towards probiotic food.
 To know expectations and suggestions at the retailer’s end.
 Estimate market potential for probiotic food. To know about industry competition.
 Segmenting the market and deciding target groups.
 Study the existing marketing mix used by Amul.
 Formulating new marketing mix with innovative strategies to acquire larger market share.

Outcomes:
 Probiotic food is emerging market segment with health benefits, which grabs consumer
interests in it.
 Though awareness of probiotic is very low, but there is large consumer base waiting for
such healthy product segment.
 As per our estimates there is huge market potential which will lead to success of this
segment.
 There is a strong need of formulating Integrated Marketing Communication and a
marketing mix to acquire the market

INTRODUCTION TO PROBIOTICS

Almost a century ago, Elie Metchnikoff, a Nobel Prize winner, observed the beneficial effect of
lactic acid bacteria in humans, as a result of consumption of fermented dairy products
(Metchnikoff, 1907). His observation led the foundation for the concept of ‘probiotic’, which has
been defined as “Live microorganisms which when administered in adequate amounts
confer a health benefit on the host” (FAO/WHO, 2001).

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 GLOBAL SCENARIO
There has been a progressive increase in interest on the use of natural remedies to prevent or
treat human ailments. As people become increasingly health conscious, preventive medicine in
the form of probiotic foods is gaining popularity. The growth of probiotic products in the
developed world has been rapid. As knowledge on probiotic continues to increase on daily basis.

According to a new technical market research report, from BCC Research, the global market for
probiotic ingredients, supplements and foods was worth $14.9 billion in 2007. It became worth
$15.9 billion in 2008 and it is expected to reach $19.6 billion in 2013, a compound annual
growth rate (CAGR) of 4.3%.

The market is broken down into applications of probiotic ingredients, supplements and foods. Of
these, foods have the largest share of the market. Worth an estimated $13.8 billion in 2008, this
segment should reach $17.0 billion in 2013, a CAGR of 4.2%. Food applications for probiotics
are found mostly in dairy products, with yogurts, kefir and cultured drinks representing the major
categories of probiotic foods. Yogurt products accounted for the largest share of sales,
representing 36.6%. Emerging food applications include probiotic cheese, nutrition bars,
breakfast cereal, and infant formula.

INDIAN PROBIOTIC MARKET

India’s probiotics market has been highlighted by researcher Frost & Sullivan as a “major
growth market of the future”, with annual growth of 22.6 per cent until 2015. The presence of
major probiotics suppliers and product makers such as Danisco, Hansen, Yakult and Danone is
accelerating growth in probiotic dairy products which remain in their infancy.
The Indian market remains minute by European standards with F&S estimating its worth at a
mere 20.6m Indian rupees (€320,000), but it should push through the €1m mark around 2013-
2014 and be worth €1.3m in 2015.
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With India’s urban middle class growing rapidly it is easy to see why there is so much interest in
a country with a population approaching 1.2bn.
But the public education program required so that consumers are able to make the link between
consuming probiotic products such as yoghurts, drinks and supplements, has a long way to go.
In contrast to many other markets, the major format for probiotic sales in India to date has been
food supplements, rather than the most popular formats – spoonable and drinkable yoghurts.
Probiotic supplements account for 49 per cent of sales with foods and beverages at only four per
cent. Globally, food and beverages account for 56 per cent of probiotic sales.
“Multinational companies have found the Indian market very challenging in the past owing to
supply shortages, poor cold chain, storage facilities, poor infrastructure, and underdeveloped
and complicated distribution channels,” it said.
“Performance in the food and beverage probiotic market is still dominated by issues in strain
stability, low shelf life of products, and the development of probiotic application technology.”

The Existing Legal Framework Governing Probiotics in India:

The Indian probiotic market is worth INR 1.2 billion and growing annually at the rate of about
40 %. However, it is currently regulated by extant food laws that regulate general food items that
include:

 The Prevention of Food Adulteration Act, 1952 (“PFA Act”) and corresponding Rules of
1955 (“PFA Rules”),
 Certain food product specific orders under the Essential Commodities Act, 1955 and
 The Standards of Weights and Measures Act, 1976 and corresponding Rules of 1977.

The various authorities concerned include:

 The Ministry of Health and Family Welfare,

 The Ministry of Food Processing Industries,
 The Ministry of Consumer Affairs, Food and Public Distribution, and
 The Ministry of Agriculture.
(Source: Indian Law Journal)

MARKET COMPETITION IN INDIA

MOTHER DIARY

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.

6
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, Dahl, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and
most of these products are available across the country.

KRISHNA

70's, Hat sun Milk Food was formed as a small partnership firm, marketing the brand Arun Ice Creams.
The surprise element started even back then, as manufacturing and marketing ice creams was
considered a luxury and entry into this area seemed a risky proposition. But a few years and several
successes later, the company surprised everyone again by spearheading an ice cream revolution in the
South. And becoming a household name. A surprise with every flavor and soon, Arun Ice Creams was
proud to present the consumer with 80 delightful flavors’. Another surprising leap in terms of growth from
Rs.4.25 lakh in 1981 to Rs.1841 lakhs in 1997.

Arun surprised the ice cream industry itself by overtaking the industry growth rate of 12% by growing at a
rate of 30%. And commanding an astounding market share of 34% in the entire Southern market.And
thus, not surprisingly, Arun Ice Creams came to be the undisputed No. 1 ice cream brand in the
South. Hat sun also has a wide range of milk-based products like Komatha Butter, Curd, Ghee and Kool
More. 

AARAY

Aarey was cutting down on its milk production from 2.5 lakh litres to 1.5 lakh litres per day. Senior
political leaders and Mantralaya officials are now underplaying the issue, stating that they have
chalked out a mission document for the dairy which will help resolve all issues. Officials said, "ast
month, the daily distribution of Aarey milk was 2.50 lakh litres per day, but the supply has now come
down to 97,000 litres per day, which is shocking and unheard of in the last 45 years. People are
compelled to switch to other brands of cow's milk and if this continues, the Aarey cow milk supply will
only decline further." 
We are still paying the old rate of Rs 12.50 per litre to the cooperatives, while private players are
already paying the farmers a higher price ranging between Rs 14 to Rs 16 per litre. 2.8 million liters of
milk daily in the markets of Delhi, Mumbai,

RESEARCH BRIEF

Customer Survey for Estimation of Market potential of

Probiotic food

Summary:
The objective of this study was to evaluate the perception and the attitudes towards probiotic
foods of the population, which will help us to estimate market potential for the same in the city
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of Mumbai, India. Two hundred fifty (100.0%) people were interviewed in area of Bandra to
Andheri. Fifty five (22%)of them were aware of the term ‘Probiotic food’. Out of these 55, 21 of
them (39%) were unable to mention a single example of a probiotic food. The results of this
study indicate the need for an elementary easy-to-understand educational programme using
accessible language in order to fix the concepts related to these products, also there is huge
market potential for probiotic food.

Materials and methods:

Sampling: Convinience sampling

Sample size:

A structured questionnaire, consisting of seven questions, was used in this study. A random sample of 250
customers in retail outlets is considered in this study.

Area of study:

Bandra to Andheri, Mumbai, India.

Tools used for this research are Questionnaire & short interview. A brief questionnaire focused
to collect the relevant information was prepared. The respondents were asked to fill up this
questionnaire followed by a short interview .The data gathered through these questionnaires was
analyzed to formulate report

Customer Questionnaire & Analysis

1. Are you familiar with the term ‘friendly bacteria’ which helps in
improving digestion and immunity?

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 56%

Inference:

 Almost 50% people know about friendly bacteria in body. There is a need make people
aware of probiotic foods which actually contains friendly bacteria.

2. Would you like to consume a product containing these additional bacteria

(Probiotic food)?

82%

Inference:

 Almost 80% of respondent are willing to consume products which will benefit their
health.
 Acceptance level for these products will be high.

3. a) Are you aware of Probiotic food (If the answer is “No” then continue
with Q.6)?

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 78%

Inference:

 Awareness in public is very low, promotional strategies should be formulated.

 Informative activities for customers will increase awareness.

3. b) Can you give me some example of branded probiotic product?

61%

Inference:

 Out of the 22% respondents who know about probiotic food, only 61% were able to recall
some example of branded product.
 There is a need of powerful Integrated Marketing Communication (IMC), to make
probiotic a well known segment.

3. c) (if not) Would you like to know about it?

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 86%

Inference:

 People are willing to know about the products like probiotic food, which will benefit
them for their health.
 There is ready consumer base who are willing to know about products like this and they
will try if given a chance.

4. How do you come to know about Probiotic food?

Newspaper

Family physcian

Friends

Televiosion

Other medium
0% 5% 10% 15% 20% 25% 30% 35% 40%

Inference:

 Use of public communication mediums such as newspaper, television will help to

improve awareness and acceptance level in customers.
 Promotions targeting professional medical practitioners will lead to rapid increase in
acceptance.

5. Do you know the benefits of probiotic food?

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 84%

Inference:

 Only 16% of respondents, who know about probiotic food, are actually aware of benefits
of it. There is a need of clear communication regarding the benefits of probiotic food.

6. a) In what form would you like the product to be?

Dairy product (milk, curd, butter)

Ice cream

Beverages (milk shake, buttermilk)

Chocolate bar

Dry powder

0% 10% 20% 30% 40% 50% 60%

Inference:

 Beverage is the most preferred form. Dairy products are acceptable to more extent than
remaining others.

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6. b) What kind of price will you find worth paying for probiotic food as
compared to non-probiotic?

57 %

Inference:

 People are ready to pay average price for the probiotic products, as compared to non-
probiotic product. This gives us the idea about market potential in terms of price which
customer is willing to pay.

7. How often would you like to consume this type of healthy product?

10 %
Inference:

 Taking the idea about the consumption pattern of consumers, 43% of them would like to
consume this kind of product twice in a week.
 Total 27% who are interested in consuming product daily or alternate day, can be
targeted specifically.

RETAILER SURVEY AND ANALYSIS

Type of Project: Research based Marketing Project.

Research Methodology

Sampling Method

Retailers: Cluster Sampling

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Sample size

Retailers: 100

Area of Research

Mumbai – Western Region: Bandra (E) to Andheri (E)

Time taken for completion of the project 25 days

Tools used for Research:

Tools used for this research are Questionnaire & short interview .A brief questionnaire
focused to collect the relevant information was prepared. The respondents were asked to
fill up this questionnaire followed by a short interview .The data gathered through these
questionnaires was analyzed using MS-Excel.

Data Collection

Primary Data: We collected primary data by interviewing personally with the help of a
structured questionnaire.

Secondary Data: We collected the secondary data from the Amul sales officers &
Distributors with the help of some short interviews & some informal chat.

RESEARCH BRIEF

DATA ANALYSIS

1 What percentage of margin you accept from the company?

a) 6-10% b) 11-15% c)16-20% d) Above 20%

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 Percentage of
Margin

 The maximum number of retailers says that they want 11-15% of margin that is 55% of
retailers, and 22% of retailers says that they want above 20% margin so that they can
sale more Buttermilk.

2. Which service do you prefer for delivery of Probiotic Buttermilk?

a) Daily b) Alternate Days c) In week 2 times d) Once in a week

 The maximum numbers of retailers says that they want alternate days of delivery that is
44%,32% of retailers says that they want Daily delivery for sale ,15% of retailers says that
they want delivery in 2 times in week and 10% of retailers says they want delivery once in a
week.

3. How do you like Service given for Probiotic Buttermilk?

a) Bad b) Average c) Good d) Excellent

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 Service given for Probiotic Buttermilk

70.0%
60.0%
60.0%
50.0%
40.0%
30.0% 33.0%
20.0%
10.0%
2.0% 5.0%
0.0%
bad average good excellent

 The service given for probiotic buttermilk according to 60% of retailers was
excellent,33%said it was good because most of the retailers want daily service, 5%
retailers said that service is average and 2% retailers said it was Bad.

4. How is your experience of selling Probiotic Prolife Buttermilk?

a) Bad b) Average c)Good d) Excellent

Experience in selling Probiotic Buttermilk

 The 63% of retailers said that selling Probiotic buttermilk was as excellent experience
and they would like to sale buttermilk next time also, 19% said it was good to sale
buttermilk, and 18% said it was average due to less percentage of margin.

5. Does the stock reach you in condition?

a) Yes
b) No
c) If no then specify…..

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 Stock in good condition

NO Sales
5%

Yes
95%

 The maximum number of retailers said that stock was in good condition and only 5%
said no because of the receive some old the stock was of old dates.

6. How do you like the quality of packed bottle of Probiotic Butter milk?

a) Bad b) Average c) Good d) Excellent

Quality of Probitic
Buttermilk bottle
 The maximum number of retailer said the quality of bottle was good was good very few
said it was excellent but rest of they said it was average and bad because the cap of bottle
was once open was not easily close pack.

7. How do you obtain Freeze?

a) Given by company b) Owned c) Rented

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 Obtain Freeze

Sales Given by
company
7%

Rented
33%

Owned
60%

 The maximum number of retailers said that they obtain freeze by their own and least of
them said that the freeze was given by the Amul Company for other product of Amul.

8. Which Buttermilk you prefer apart from Prolife Probiotic?

a) Govind b) Gagangiri c) Prepared by own

Obtain Freeze

Given by
company
7%

Rented
33%

Owned
60%

 Apart from Probiotic Buttermilk the maximum number of buttermilk sold in market was
Govind Buttermilk, then Gagangiri and very less prepared by own by retailers.

9. Why do you need other brands other than Prolife Probiotic Buttermilk?

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 a) Price b) Flavor c) Margin d) Consumer Demand

Need of other brands

Price Flavour Margin Consumer Demand
3%

30%

62%

5%

 The maximum number of retailer sale other brands of buttermilk along withAmul due its
Price and its margin.

10. What kind of advertising must do for sale of Buttermilk?

a) Press b) Television c) Billboard

Advertising for Prolife Probiotic

Press Television Billboard

13% 17%

70%

 The maximum number of retailer suggests that the company should do Television
advertising for promotion of a product so that the people will know about the product and
there will be high sale of buttermilk.

11) Suggestions and Comments if any?

19
 Suggestions by the retailers: -

 The company should advertise about the product as soon as it launches the product.
 Amul Company should provide a small freeze as other company does.
 Company must provide schemes so that consumers can by the buttermilk.
 They must launch probiotic buttermilk into 500ml.
 Company must do such a provision that the shelf life of Buttermilk must increase to 10-
15 days.

ESTIMATING MARKET POTENTIAL

Estimating the market potential for a business is critical in evaluating its viability and provides
an estimate of the maximum total sales potential for a given market. Once the estimated market
potential has been calculated, it is possible to determine if the market is large enough to sustain
your proposed business or sustain an addition competitor in the marketplace. It is important to
remember that the estimated market potential sets an upper boundary on the market size and can
be expressed in either units and/or sales. Unless there are no direct or indirect competitors, a
business will capture a share of the total estimated market potential not all of it.
The following provide the steps and data necessary to estimate the market potential. These will
be discussed in detail later.

Check-List

Estimating the market or market potential for a new business or business expansion is critical in
determining the economic feasibility of a venture. Estimating the market potential will determine
if the market is large enough to support your businesses. This check-list will address a number
of questions that need to be answered before an estimate can be calculated.

What type of customer will buy the product or service?

Where are these customers located?
How many potential customers (N) are there?
How often do they consume or use it?
What is the Competition?

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What are people paying?
What is the Potential for the Market to Develop?
What is my share of the Market?

Some key factors which will help in estimating market potential are;

Key Market Drivers:

 Palatability of the finished product propels volume growth

 Portable portions that offer convenience boosts market growth
 Product innovation in application formats fuels revenue and volume growth
 Natural affinity for supplements promotes demand
 Growing interest from Pharmaceutical companies expands the market
 Higher stability and longer shelf-life of probiotic facilitate growth

Key Industry Challenges:

 Low consumer awareness

 Difficulties in product development
 Changing and increasing demands from food and supplement manufacturers

Key Market Restraints:

 Limited stability of probiotic food products constrains application formats

 Higher retail price versus nonprobiotic food products
 Nonexistent standards that check for viability erodes consumer trust
 Presence of substitute products compete for market share

Key Steps in Estimating Market Potential:

1. Define your target market and market segments.

2. Define the geographic boundaries of your market.
3. Derive an average selling price.
4. Determine the average annual consumption.

Estimating the market potential for a business requires specific information on the number of
people or potential buyers, an average selling price, and an estimate of consumption or usage for
a specific period of time. Once this information has been collected, it can be plugged into the
following formula to derive the estimated market potential.

Calculation for Estimation of Market Potential:

MP = N * P * Q

Where:
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MP = market potential
N = number of possible buyers
P = average selling price
Q = average annual consumption

N = 82% of respondent (from data of Q.2)

(According to Census of India 2001, Mumbai’s metropolitan area population is 21,347,412
So 82% of this comes to be)
= 17504878

P = Rs. 25 (selling price of Amul Prolife Probiotic Buttermilk)

Q = Average consumption taken 0.2 ltr/day.

MP = 17504878*25*0.2
= Rs. 8,75,24,390

The estimated market potential for Mumbai Metropolitan comes to be Rs. 8,75,24,390 for a year.

PRODUCT BRIEF

What is Prolife Probiotic buttermilk?

 A normal buttermilk prepared breaking curd-formed by inoculation of pasteurized milk

With Probiotic bacterial culture and pasteurized water
 The product is kept refrigerated in a sealed bottle till consumption
 Available as salted natural flavored variant

Contents:-
 Pasteurized double toned milk, pasteurized water, Probiotic bacterial culture
 The final product is not theorized to retain its micro flora
 No colour has been added to Probiotic buttermilk
 The product contains almost same fat as normal buttermilk but appears thicker
 The product needs no preservative as it is preserved naturally by the added
lactic acid produced by the bacterial during fermentation and subsequent
refrigerated storage
22
 It taste like normal buttermilk but seems thicker because of the bacterial culture
 It is recommended that you drink at least 100 ml. daily
 Both children and adults can have 100 ml. every day to ensure a healthy living
 As per international standards (fao/who), drink/foods need more than 1 million
 Cfu per ml/gm to graduate the status of Probiotic drinks/foods- which is there
In prolife Probiotic buttermilk
 Prolife Probiotic buttermilk can be enjoyed at any time of the day- mostly
Preferred during or after a meal
 The shelf life prolife Probiotic buttermilk is 7 days from the day of manufacture,
Only if continuously kept in refrigerated condition (4 to 8 degree)
 Manufacture and packed under strict quality and hygienic condition
 Packed hygienically and thus free from any adulteration
 Can be garnished to taste flavored/spiced
 Can be used as a beverage with food or as a chilling refresher or as a health
drink
 Convenient and affordable

Benefits:-

(A)The product
 Increases the absorption of minerals and vitamins to improve digestion
 Is rich in whey protein which is ideal for bones and muscles
 Is low fat and low calorie
 Is rich in calcium and minerals
 Is a healthy and refreshing drink

(B) Probiotic bacteria

 Restores the balance in our body with the beneficial culture

 Boosts immunity
 Helps in alleviating lactose intolerance
 Helps in preventing intestinal infection
 Helps in cholesterol management and protects against harmful bacteria

Other health benefits:-

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 The prolife Probiotic buttermilk is not a cure but contains Probiotic
bacteria which are known to confer the below mentioned preventive
Health benefits:
 Helps subject fight traveler’s diarrhea, infant diarrhea & rotavirus
Infections
 Imparts protection against H. pylori by dislodging it from the gut and
Improves the overall gut/intestinal health
 Helps to protect atopic dermatitis (skin disorders) , yeast infection
And even helps fight against certain type of cancers.

LOGISTICS MANAGEMENT

The Probiotic buttermilk comes from Gujarat Cooperative Milk Marketing Federation in
insulated van which keeps buttermilk cool and help it to avoid from spoiled , the buttermilk go
directly to distributor centre ,the distributor has a deep freezer which keep cool buttermilk ,and
from there it reach to retailers. The Distributor plays a vital role in cold chain management. The
distributor is the person who is responsible to supply the stock to the retailers. Probiotic
Buttermilk do not have long life it get spoiled soon as it contacted to heat so distributor distribute
buttermilk to retailers in shifters so that the buttermilk don’t get spoiled and the retailers keep it
into freeze so that it doesn’t get contacted to heat and get spoiled, the buttermilk has 07 seven
days of life, it gets bitter if it is contacted with heat more than a hour.

Suppliers Manufacturer Distributor

24

Retailer
 Consumer

MARKETING MIX

Product

The product is the physical product or service offered to the consumer. In the case of physical
products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty,
etc.

Price

25
Pricing decisions should take into account profit margins and the probable pricing response of
competitors. Pricing includes not only the list price, but also discounts, financing, and other
options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distribution that serve as the
means for getting the product to the target customers. The distribution system performs
transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and levels
of service.

Promotion

Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should be
performed when making promotion decisions. It is useful to know the value of a customer in
order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etcWord of mouth is any
apparently informal communication about the product by ordinary individuals, satisfied customers or
people specifically engaged to create word of mouth momentum. Sales staff often plays an important
role in word of mouth and Public Relations

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality List price Channel members Advertising

26
 Channel motivation
Appearance Discounts Personal selling
Market coverage
Quality Allowances Public relations
Locations
Packaging Financing Message
Logistics
Brand Leasing options Media
Service levels
Warranty Budget

Service/Support

SUGGESTIONS

 Creating awareness in market about Probiotic food with the help of different type of
promotional activities like free sampling, telling them about benefits of product.

 Product should be offered in small unit packaging, rather than 1 liter packs.

 Packaging should be modified from pet bottles to tetra pack, with attractive and
informative labeling.

27
  Shelf life of the product should be increased up to 15 days.

 Promotional offers for retailers should be continued for a period of time until the
sales gears up from start.

 Product variants with different flavors could be launched.

 There is a strong need of formulating Integrated Marketing Communication and a

marketing mix to acquire the market. Use of different mediums such as newspaper,
television can be done.

 Advertising should be done on larger scale. Company can appoint a Brand

ambassador who is representative of healthy human.

 Distribution channel should be improved to make efficient and timely distribution,

as this product is sensitive to temperature and also the shelf life is limited and short.

 Promotions targeting professional medical practitioners will lead to rapid increase

in acceptance.

CONCLUSION AND FINDINGS

AMUL is a already known and popular brand with strong consumer base. Probiotic food is
emerging market segment having huge market potential.

Survey resulted in to following conclusions:

 People are willing to know about the products like Probiotic food, which will benefit
them for their health. There is ready consumer base that are willing to know about
products like this and they will try if given a chance.

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 There is a strong need of formulating Integrated Marketing Communication and a
marketing mix to acquire the market which is having high potential to grow.

 Almost 50% people know about friendly bacteria in body. There is a need make people
aware of Probiotic foods which actually contains friendly bacteria.

 Beverage is the most preferred form. Dairy products are acceptable to more extent than
remaining others. This means that Buttermilk as a product form is widely acceptable.

 People are ready to pay average price for the Probiotic products, as compared to non-
Probiotic product. This gives us the idea about market potential in terms of price which
customer is willing to pay.

 Taking the idea about the consumption pattern of consumers, 43% of them would like to
consume this kind of product twice in a week.

 Total 27% who are interested in consuming product daily or alternate day, can be
targeted specifically.

 There is a strong need of formulating Integrated Marketing Communication and a

marketing mix to acquire the market which is having high potential to grow.

BIBLIOGRAPHY

 www.amul.com
 www.bbc.com
 www.usprobiotics.org
 www.indianlawjournal.com
 www.google.co.in
 Marketing Management by Mr. Philip Kotler

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 APPENDIX

a) Customer Questionnaire:

1. Are you familiar with the term ‘friendly bacteria’ present in human intestine which helps
in improving digestion and immunity? (Yes/No)

2. Would you like to consume a product containing these additional bacteria (Probiotic
food)? (Yes/No)

3. a) Are you aware of Probiotic food? (Yes/No)

b) can you give me some example of branded probiotic product? (Yes/No)
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 c) (if not) Would you like to know about it? (Yes/No)

4. How do you come to know about Probiotic food?

- Newspapers
- Television
- Friends
- Family physician
- Other medium

5. Do you know the benefits of probiotic food? (Yes/No)

6. a) In what form you would like the product to be?

- Dry powder
- Beverage (milk shake, buttermilk)
- Chocolate bar
- Ice cream
- Dairy product (milk, curd, butter)
b) What kind of price will you find worth paying for probiotic food?
- Low
- Average
- High

7. How often would you like to consume this type of healthy product?
- Daily
- Alternate day
- Twice in a week
- Weekly

b) Retailer Questionnaire:
Name of the Retailer:
Contacts:
Add:

1 What percentage of margin you except from the company?

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 a)6-10% b) 11-15% c)16-20% d)Above 20%
2 Which service do you prefer for delivery of Probiotic Buttermilk?
a) Daily b) Alternate Days c) In week 2 times d) Once in a week
3 How do you like Service given for Probiotic Buttermilk?
a) Bad b) Average c)Good d) Excellent
4 How is your experience of selling Probiotic Prolife Buttermilk?
a) Bad b) Average c)Good d) Excellent
5 Does the stock reach you in condition?
a) Yes b) No c )If no then specify…..
6) How do you like the quality of packed bottle of Probiotic Butter milk?
a ) Bad b) Average c)Good d) Excellent
7) How do you obtain Freeze?
a) Given by company b) Owned c) Rented
8) Which Buttermilk you prefer apart from Prolife Probiotic?
a) Govind b) Gagangiri c) Prepared by own
9) Why do you need other brands other than Prolife Probiotic Buttermilk?
a) Price b) Flavor c) Margin d) Consumer Demand
10) What kind of advertising must do for sale of Buttermilk?
a) Press b) Television c) Billboard
11) Suggestions and Comments if any?
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