ASIA PACIFIC Harshit J Misty

INSTITUET OF BBA SEM 6

ROLL NO-69
MANAGEMENT
Assignment
CASE STUDY:

MILKY MIST: TRANSFORMING CONSUMER

BEHAVIOR

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Background and Beginnings
• Milky Mist embarked on its journey in 1995 by introducing paneer to the
South Indian market, which was a novelty at the time.

• Milky Mist has conquered the FMCG market by consistently following a

customer-centric approach since its inception. It all started in 1995 with
making paneer, which was almost a novelty in the South Indian market at
that time. Fast forward 25 years, paneer is now a quintessential ingredient of
the southern kitchens.

Customer-Centric Approach
• Milky Mist’s winning formula lies in its consistent customer-centric
approach since its inception.

• The company has expanded beyond dairy, acquiring companies like Asal
and Briyas to focus on the FMCG segment as a whole.

• Today, Milky Mist competes across 25 product categories with over 250
SKUs,

• The company supports over 60,000 farmers through direct milk procurement
(0.6 million litres per day). It also provides farmers with high-quality cattle
feed to ensure the health of their cattle.

• As part of its CSR initiatives, Milky Mist has successfully planted over
3,50,000 trees, rejuvenated about 40 water bodies, set up sustainable energy
plants, invested in numerous water recycling projects, and many other
projects to uplift the lives of the people in the surroundings.

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Phenomenal Growth

• Milky Mist’s growth trajectory is remarkable:

• What has surprised the industry is its highly phenomenal growth from a mere
Rs 48 crore in FY 2012 to an astounding Rs 1,000 crore in FY 2021. During
the past five years, the company’s annual sales turnover grew at a CAGR of
29.5 per cent, maintaining healthy EBITDA margins.

• Today, the company has a fleet of 180 vehicles and transports its products
from Kanyakumari to Kashmir, cutting across the length and breadth of India.
Milky Mist also exports its products to the countries in the Middle East,
Singapore, Sri Lanka, Maldives, Bhutan and Australia.

• With an investment outlay of Rs 550 crore, the company has set up a state-of-
the-art dairy plant near Erode in Tamil Nadu, which is spread across 50 acres
of land Being led by a self-made person like Sathish Kumar T, founder,
chairman and MD, as well as CEO Dr K Rathnam, an industry expert and
former Amul Dairy MD, has been the major driving factor behind this growth
story.

• Sathish, who is also a role model and mentor to many youngsters, is trying to
make a difference by providing customers quality products of their choice as
well as giving back to society by creating an economic self-sustainable model
of doubling farmers’ income in line with the vision of the government.

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Additional Aspects That Have Contributed to Its Success:

1. Product Diversification and Innovation

• Milky Mist’s journey began with paneer, but it didn’t stop there. The company
continuously expanded its product portfolio to cater to evolving consumer
preferences.
• Innovation played a pivotal role. Milky Mist introduced novel dairy products
like Greek yogurt, flavored milk, cheese, and butter, capturing a wider market
share.
• By staying attuned to consumer demands and introducing new offerings,
Milky Mist successfully retained customer loyalty and attracted new buyers.

2. Quality Assurance and Traceability

• Milky Mist’s commitment to quality is unwavering. The company adheres to

stringent quality control measures at every stage of production.
• Traceability is a key focus. Consumers today want to know where their food
comes from. Milky Mist ensures transparency by tracing the entire supply
chain, from farm to shelf.
• The company’s ISO 22000:2018 certification underscores its dedication to
food safety and hygiene.

3. Marketing and Branding

• Milky Mist invested in effective marketing campaigns to create brand

awareness. Their advertisements
emphasize freshness, purity, and the
goodness of dairy.
• The brand’s distinctive packaging stands
out on supermarket shelves. Milky Mist’s
logo, featuring a serene cow, evokes trust
and reliability.
• Digital marketing and social media
presence have also played a crucial role in
engaging with consumers and building a
loyal community.

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4. Pricing Strategy

• Milky Mist’s pricing strategy strikes a balance between affordability and

quality. The company offers value-for-money products without
compromising on excellence.
• By positioning itself as a brand accessible to all, Milky Mist has successfully
penetrated both urban and rural markets.

5. Distribution Network

• Milky Mist’s extensive distribution network ensures that its products reach
every nook and corner. From local grocery stores to modern retail chains,
Milky Mist has a strong presence.
• The company’s direct-to-consumer model allows it to maintain control over
product quality and freshness.

6. Sustainability Initiatives

• Milky Mist recognizes the importance of sustainability. It actively promotes

eco-friendly practices:
• Reducing plastic usage: The brand encourages consumers to return empty
milk pouches for recycling.
• Energy-efficient processes: The Erode plant utilizes solar power, minimizing
its carbon footprint.
• Water conservation: Milky Mist invests in rainwater harvesting and efficient
water management.

7. Consumer Engagement and Feedback

• Milky Mist actively seeks consumer feedback through surveys, social media,
and customer care channels.
• The company listens to its consumers, incorporating their suggestions and
addressing concerns promptly.

In conclusion, Milky Mist’s success story is a testament to its holistic approach,

combining product excellence, consumer-centricity, sustainability, and visionary
leadership. As the dairy industry continues to evolve, Milky Mist remains a shining
example of how understanding consumer behavior can drive growth
and transformation.

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