A BRIEF STUDY OF EXISTING DISTRIBUTION STRATIGIES OF SUDHA RANGE OF MILK AND MILK PRODUCTS AT BIHAR STATE MILK COOPERATIVE

FEDERATION (PATNA)

UNDER THE SUPERVISION OF: Mr. RAJEEV VERMA (MARKETING MANAGER) & Mr. PRAKASH KUMAR(Sn. MARKETING SUPERVISOR)

PRESENTED BY: ADEEL RAHMAN 10MBA-46

CONTENT
COMPANY PROFILE

PRODUCT

PROFILE DISTRIBUTION STRATIGIES OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS RECOMMENDATIONS LIMITATIONS

COMPANY PROFILE

It was set up with a noble mission to upgrade the socio-economic condition of rural farmers of Bihar, cater to the needs of urban consumers with the supply of hygienically packed milk at affordable rates and offer job vistas as well, Bihar State Co-operative Milk Producers Federation Limited (COMFED) started off in 1983. It has been formed as an implementing agency of "Operation Flood" programme on the lines of ANAND milk co-operative. Its affiliated milk unions includesVaishali Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPMU), Patna, Deshratna Dr. Rajendra Prasad Dugdh UtpadakSahkariSangh Ltd. (DRMU), Tirhut Dugdh Utpadak Sahkari Sangh Ltd. (TIMUL), Mithila Dugdh Utpadak Sahkari Sangh Ltd. (MMU), Shahabad Dugdh Utpadak Sahkari Sangh Ltd. (SMU), Vikramshila Dugdh Utpadak Sahkari Sangh Ltd. (VIMUL)
3

Milk marketing* '000 lts/day

800

701.03
700

622.12

600

496.4
500

379.13

400

245.02

300

100.55
200

100

0 1987-88 1997-98 2002-03 2005-06 2008-09 2009-10

Marketing of Different Milk Products

Milk Products Ghee Table Butter Ice-cream Lassi MistiDahi Peda Paneer SudhaSpl. Plain Curd

Units MTs MTs MTs MTs MTs MTs MTs MTs MTs

2002-03 1026 81.9 255.3 1071 492.6 409.9 570.5 240.7 647.8

2003-04 991.2 44.79 257.5 1615 538.7 413.1 679.8 224.2 790.6

2005-06 1870 106.4 263.5 2519 563.5 614.2 970.3 278.5 1285

2008-09 679.9 61.67 332.5 2627 707.1 568.2 1054 533.1 1684

2009-10 981.8 74.45 472.3 3217 820.2 735.7 1701 870.4 2723

Kalakand
Rasogulla Gulabjamun

MTs
MTs MTs

81.7
78.7 75.6

66.99
95.23 98.51

161.7
186 164.8

127.3
354.3 268.3

152.8
497.1 335.8 5

PRODUCT PROFILE

The products are sold under the brand name Sudha. SUDHA products are the most hygienic milk products available in the market manufactured through state of-the-art processing plants. SUDHA products are processed with a technology called UHT (Ultra High Temperature) which ensures zero microbial activation, and preserves maximum flavor, taste, and nutritional value. Various products sold under the brand name SUDHA includeSudha milk and flavored milk, Sudha ice cream, Sudha paneer, Sudha peda, Sudha balu shaahi, Sudha ghee, Sudha gulabjamun, misti dahi, plain dahi, mango dahi, probiotic dahi, Sudha butter, Sudha milk shake, Sudha mattha, Sudha lassi, mango lassi, Sudha rosogullah, Sudha khoa mithai, Sudha kalakand, Sudha milk cake & sudha ramdana lai.
6

DISTRIBUTION STRATIGIES
A company can opt one of the following distribution strategies Exclusive distribution Selective distribution Intensive distribution SUDHA has adopted exclusive distribution It is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area. SUDHA limits the number of retailers handling the dairy milk products. Retailers, distributors are fixed in the local market. Distributors are distributed in different zones. By granting exclusive distribution, Sudha hopes to obtain more aggressive selling. It is also done with the motto of enhancing the product image. For this, the dairy has constructed several milk parlors in and outside Patna.
8

LEVELS OF DISTRIBUTION

There are four levels of distribution, which are 1) Zero level distribution producers directly passes his products into the hand of consumers. 2) One level distribution producers provides his products to the consumer through retailers or sales representative agents or brokers. 3) Two level channels (P.W.J.R.C.) - producer, wholesaler, retailer and consumer constitute this channel. 4) Three level channel - (P.W.J.R.C.) - producer, wholesaler, jobber, retailer and consumer constitute this channel. The jobber works between wholesaler and retailer.
9

Policy of Distribution of Patna Dairy Project

The PDP generally follows the zero level, one level and two level of channel of distribution. The reason behind this is that PDP deals with perishable products which have short life and which can be wasted by the negligence in the delivery of product to the customer. So PDP provides the milk to the customer either directly or through the retailer. But the total distribution function is performed under the involvement of authorized distributors of PDP. They collect the liquid milk from the dock of PDP and then they directly send the milk vans to the retailers in two sessions, i.e. Morning session and Evening session.

10

OBJECTIVES OF THE STUDY

To find out consumers preference for milk and milk products of SUDHA. To find out share of SUDHA in the market. To find out availability of SUDHA products in the market. To see the problems faced by retailers and distributors of SUDHA.

11

RESEARCH METHODOLOGY

Research type: Descriptive Research Data collected: Primary data & Secondary data Research instrument used: structured questionnaire Geographical extent: Patna Sample size1. consumers- 100 2. retailers- 20 3. distributors- 10 Sample selection- convenience and judgmental sampling.

12

DATA ANALYSIS AND INTERPRETATION

13

CONSUMER SURVEY
1. Your preferred milk and milk products brand
60

Sudha Amul Raj Others

no. of respondents 59 13 21 7

50

40

5 9
no. of respondents

30

20

10

1 3
Sudha Amul

2 1
Raj

7
Others
14

2. Which media makes you aware about SUDHA?

no. of respondents Newspaper Television
80 70 60 50 40 30 20 10 0

27 2 71

Hoardings

71 2 7 2
Newspaper Television Hoardings

no. of respondents

15

3. What do you think about price of Sudha products?

90
80 70 60 50 40 30 20 10 0

no. of respondents Low Reasonable High 3 90 7

9 0
no. of respondents

3
Low Reasonable High

16

4. From where do you purchase Sudha milk and milk products?

no. Of respondents
Retailers
70

68 28 4

Sudha parlor
60

Home delivery

50

40

no. of respondents
30

6 8

20

28
10

4
0

Retailer

Sudha parlor

Home delivery

17

5. How far you go to buy Sudha products?

no. of respondents 0-0.5 km
80
70 60 50 40 30 20 10 0 no. of respondents

72 20 8

0.5-1 km more than 1 km

7 2 2 0
0-0.5 km 0.5-1 km

8
more than 1 km

18

6.Which Sudha product do you use regularly? (You can tick more than one product)
no. of respondents Milk 95

Ice cream

84
61 63 58 70 79 71

100 80 60 40 20 0 Milk Ice cream Peda Lassi Gulabjamun Paneer Curd Ghee

Peda Lassi Gulabjamun Paneer Curd

no. of respondents

Ghee

19

7. Your opinion about Sudha products in terms of quality

no. of respondents Below average 80 70 60 50 40 30 20 10 0 Below average Average Above average Excellent Average Above average Excellent 3 12 71 14

7 1

no. of respondents

12

14

20

8. Are Sudha product always available when demanded by you?

no. of respondents Yes No 34 66

34 66
Yes No

21

9. In case of non-availability of Sudha products would you opt for a substitute?

no. of respondents Yes No 71 29

29
Yes No

71

22

10. Does packaging affects your purchase decision?

no. of respondent s

Yes
No

80
20

20

Yes No

80

23

RETAILER SURVEY
1. Do you stock Sudha milk and milk products?
No 0%
no. Of respondents

Yes
No

20
0

Yes 100%

24

2.Other brands available in your shop

no. of respondents
12

Amul Raj

8 12

10

12
6

no. of respondents

8
4

Amul

Raj

25

3. How would you rate your present level of sales?

no. Of respondents Satisfactory Unsatisfactory 13 7

13
Satisfactory

Unsatisfactory

26

4. Which Sudha product sells most?

Milk Ice cream Peda Lassi no. of respondents 20 0 0 0

20 18

16
14 12 10

Gulabjamun Paneer Curd Ghee

0 0 0 0

8
6 4 2

no. of respondents

27

5. Are you happy with profit margins you get?

no. Of respondents

Yes No

2 18

Yes No

18

28

6.Are you satisfied with services provided by Sudha distributors?

no. Of respondents yes no 8 12

40%

60%
Yes No

29

7. Are you interested in distributorship of Sudha

milk and milk products?
no. Of respondents Yes 5 15

75%

15%

No

Yes No

30

8. Are you aware of Sudha parlors and its benefit?

no. Of respondents Yes 11 9

11 9

No

Yes No

31

9. Are you interested in opening of Sudha parlor?

no. Of respondents Yes No 12 8

8 12
Yes No

32

10. Sale of Sudha as compared toa. Amul b. Raj

no. Of respondents
Sudha Amul Raj 20 0 0

20 15

10
5 0
no. of respondents

Sudha

Amul

Raj

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DISTRIBUTOR SURVEY
1. Which Sudha product has the highest demand?
no. of respondents 20 0 0 0 0 0 0 0

20 18 16 14 12 10 8 6 4 2 0

Milk Ice cream Peda Lassi

Gulabjamun Paneer Curd Ghee
no. of respondents

34

2. Do you think number of retailers should be increased?

no. Of respondents Yes 8

No

2 8
Yes No

35

3. Rate Sudha on a scale of 1-5 (1 being the worst and 5 being the best)
1 margin timelines s incentive s demand of retailers quality packagin g hygiene competiti veness 0 0 0 2 4 3 0 3 6 7 10 4 0 0 0 5 0 0 0

0 0 0 0 0

6 0 0 0 0

4 3 3 0 3

0 7 4 0 7

0 0 3 10 0

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

5 4 3 2 1

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Sales figures of different Sudha products during 2009-10 & 2010-11 (in `)

350,000,000.00

300,000,000.00

250,000,000.00

200,000,000.00

336,779,861.81
251,391,686.80

150,000,000.00

100,000,000.00

50,000,000.00

0.00

2009-10

2010-11

37

FindingsThe brand name Sudha has awareness to the fullest extent and all the respondents knew very well about it. As it was the oldest brand of milk and ghee available in Bihar, all these respondents know about it through advertisement and through the retailer. Sudha is seen to be a very eminent brand since all the 100% of respondents have given it a positive response regarding its awareness. Most of the respondents said that quality of SUDHA products is the thing that they admit the most and few others said that they admired competitive price of Sudha. While some of others also admired its availability and its agents service. This means that SUDHA has maintained its quality since its inception. The respondents were using more of Sudha Milk and Milk products when compared to any others products. On question it was found that retailers were not happy with margin, availability and replacement of leak pouches.
38

Contd
Retailers were selling different brands. Because they were able to receive more margin from non-popularized which they could not get from well-known brands. All retailers get Sudha milk from company selected distributors. Measurable amount of retailers were not happy with the distributors. All retailers were familiar with sales promotion activities undertaken by Sudha. But more of the activities were not communicated by distributors. So it shows that distributors are taking the advantage of such activities. Some questions were asked with view to convert retailers into distributors, but due to lack of interest they denied that.
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SuggestionsThe Milk products market has reached Maturity stage. Large no. of Cooperatives having a variety of product range has entered the market, thus there is one way for Sudha to sustain their milk business in the market by delivering outstanding satisfaction to their retailers, so that they can take interest in selling of Sudha milk products. Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes. Provide reasonable Margin to retailers and distributors as compared to competitors, this will motivate them to promote companys milk and milk products. Improve delivery schedule to provide products on time for the retailers who claimed that Sudha milk and milk products are not available to them on time. Incentives & schemes should be given to the retailers and some scrutiny should be followed to check the scheme being communicated properly by distributors or sales person.

40

Contd
Provide consistent service to retailers as this will help gain company goodwill in the market. Do not change distributor frequently, because he is the only person who act as a connecting link between company and retailers. Do not place more than one distributor in same market area. Sudha should invest more money in brand promotion and marketing, as it will be beneficial for the company in the long run as well as in the short run. COMFED should schedule surveys on a more regular basis as Sudha is really capturing the market and the COMFED should take viable steps to meet the expectations of its customers. COMFED should come up with a scheme for consumers like discount on product on supplying empty pouch packets of Sudha products.
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LimitationsSome of the respondents could not give their proper response due to lack of time. They at times tend to get biased and project a rosy picture which may affect the reliability and relevance of the study. It might also be so that some respondents were not motivated enough to respond properly although full attempt was made to keep it as unbiased as possible. The duration of the project was short, so the scope of more in-depth evaluation was not possible. All of the retailers were not so co-operative. As they were very busy with direct selling process, so they hardly get any free time for such discussion. Lack of proper information and experience also became hurdles for me. Some particular sectors of Patna were so crowded and disarranged that it became quite impossible for us to visit those retail outlets present there. Off course, money also played a vital factor during the whole project.

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