MARKETING

AND

DISTRIBUTION
OF
PACKAGED
 Demand and Supply of milk
 Production has increased from 39 to 74
million tonnes.
 Demand increased due to
>Rising number of working couples,
nuclear families, and changing lifestyles.
> Plus the increased consciousness of
global trends.
 "The transition from the ordinary milkman
to packaged milk was mainly because
people did not want any adulteration. They
were willing to pay more for quality.'‘
 one big fat cow waiting to be milked.
 The dairy products market was estimated
at over Rs 36,000 crore.
 Every big player from Amul and Vijaya to
Nestle and Britannia got planned up to
enter this market.
 Was a comfortable stable for the regional
players.
 "What was once an ordinary product had
suddenly developed into a full-fledged
brand war."
Four well-defined parameters
>Affordability,
>Hygiene,
>Shelf life and
>Packaging.
 As plastic pouches started the trend,Companies shifted
to Ultra High Temperature (UHT) packs.
 UHT packs has the shelf life for minimum three months.
 Aim was simple:
• Give a longer life,
• Push it as a lifestyle product,
• Introduce flavours to push it as a drink for all times,
• Affordable as the plastic pouch,
• Generate hype through creative advertising and
• Tempt sales by cut-throat pricing.
 PRICE AND VARIANTS WAR
 Nestle launched its Pure Milk at Rs 21 per litre,
which was Rs 2 less than Vijaya.
 vijaya was quick to respond. It launched a
cheaper low-fat variant at Rs 19 per litre.
 To protect the lower end of the market, it
launched another variant at Rs 16 a litre. Plus Its
packaging allows the milk to stay good for 60
days.
 Meanwhile, Amul was also planning three
variants of its Taaza UHT milk that would allow
the company to compete at different price points
 Variants are the key to increase your
marketshare.

 Vijaya brand had managed to sell one lakh

litres in 15 days.
 Milk as a important source of
revenue
 Nestle was looking at Rs 150 crore worth
of business from milk in the next three
years.
 By next year, Amul Taaza was expected to
be a Rs 100-crore brand.
 vijaya was hoping to achieve sales of Rs
120 crore from UHT milk while
 Britannia aimed to increase its
marketshare from 25 to 30 per cent.
 Future expansions due to the
market
 companies left no stone unturned.
 Amul invested Rs 30 crore in two new
factories.
 Nestle targeted the south and came up
with two more plants in the region.
 Britannia,on the other hand, was focusing
on more than plain milk. It used different
flavours to add colour and muscle to its
strategy.
"The simple packet of milk
has become a pot of gold
for most companies”