project on project on

1. CHAPTER 1
ABOUT DAIRY INDUSTRY
INTRODUCTION-
The dairy sectorin the India gas shown remarkable development In the past decade
and India has now become one of the largest producers ofmilk and value added
milk products in the world. The dairy sectorhas developed through co-operatives
in many parts of the country. During 1997-98, the states (Delhi- Haryana-Uttar
Pradesh) had 17574 million tones productioncapacity , which rose to 29719
million tons by the year 2012. In addition to many processing plants, many
government co-operative societies and chilling centers have being made.
ABOUT THE INDIAN DAIRY
INDUSTRY
In India, the dairy sector plays an important role in the country’s socio-economic
development and constitutes an important segment of the rural economic.
India is the highest milk produceIn the entire globe. India is well known as the
‘oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs
globally. It might be dream for any nation in the world to capitalize on the largest
and fastest growing milk and milk products’ market. The dairy industry in india
has been witnessing rapid growth with liberalization. As the economy provides
good opportunities for MNCs and foreign investors to release the full potential of
this industry. The main objective of the Indian Dairy Industry is to manage the
national resources in a manner to enhance milk productionand upgrade milk
processing using innovative technologies.

2. The crossbred technology in the Indian Dairy Industry has further augmented with
the viability of the dairy units by increasing the milk production per animal. Then
subsequently milk production has also increased at an exponential rate while the
benefits of an increase in milk production also reached the customers from
relatively lower increase in the price of milk. The favourable price environment for
milk producers for the Dairy Industry in India however appeared to have weakened
during the 90’s, a decline in the real price of milk being noticed after 1992. And
then slowly regained it is glory after 1993 to till now.
In India dairying from very much earlier is regarded as an instrument for social
and economic development. The country’s milk supply comes from millions of
small producers, who are dispersed throughout the rural areas. All these farmers
maintain as average herd of one or two milch animals, comprising cows and
buffaloes. Mostly ample labour and a small land baseencourage farmers to
practice dairying as an occupation subsidiary to agriculture. An income from crop
production is seasonal instead dairying provides a stable which is a year- round
income and also an important economic incentive for the smaller farmer.
India had tremendous milk production in40 yrs and has becomethe world’s largest
milk producing nation with a gross output of 84.6 million tons in 2001. The Indian
Dairy Industry has achieved this strength of a producer- owned and professionally
– managed cooperative system, despite the facts that a majority of dairy farmers
are illiterate and run small, marginal operations and for many farmers, selling milk
is their sole sourceof income. More than 10 million dairy farmers belong to 96,000
local dairy cooperatives, who sell their products to one of 170 milk producers’
cooperative unions who in turn are supported by 15 state cooperative milk
marketing federations.

3. In India dairy business has been practiced as rural cottage industry over the years.
Semi- commercial dairy started with the establishment of military dairy farms and
co-operatives milk unions throughout the country towards the end of the 19th
century. Since Independence this Industry has made rapid progress. A large
number of modern milk and milk productfactories have since been established.
The organized dairies in India have been successfully engaged in the routine
commercial productionof pasteurized bottled milk for Indian dairy products.
The growth of Indian Dairy Industry during the last three decades has been
impressive, at more the 5% per annum; and in the 90’s the country has emerged as
the largest producerof milk. This is not a small achievement when we consider
the fact that dairying in India is largely stringent that farmers in general keep dairy
animals in proportionto their free crop and also are available for family labor with
little or no purchased inputs and a minimum of marketed outputs. The existence of
restrictive trade policy milk in the Dairy Industry and the emergence of Amul
type cooperatives have changed the dairy farming practices in the country. Farmers
have gained the favourable price for their milk and for their productionwhich was
essentially a self- reliant one is which is now being transformed into commercial
proposition.
In India Milk production is dominated by small and marginal land-holding farmers
and also by landless labourers who in aggregate own 70% of the national milch
animal herd. And as the crop productionon 78% of the agricultural land still
depends on rain, which is prone to both drought and floods, rendering agricultural
income is very much uncertain for most of the farmers. Dairying, as a subsidiary
sourceof income and occupation, is real relief to most of the farmers in the society.
Usually one or two milch animals enable the farmers to generate suffcient income
to break the vicious subsistence agricultural- debt cycle.

4. The Operation Flood which is the successfulIndian dairy development
programmed has analyzed that how flood aid can be utilized as an investment in
building the type of institutional infrastructure that can bring about national fairy
development. Programmes like this, with similar policy orientations, may prove to
be appropriate to dairy development in India.
India in the early 1950’s was commercially importing around 55000 tonnes of milk
powder annually to meet the urban milk demand. Most of the significant
developments in dairying have taken place In India in this century only.
TOTAL CONTRIBUTIONTO THE ECONOMY/SALES
The Indian Dairy Industry engages in the productionand processingof milk and
cream. This Industry is involved in the manufacture of various dairy products like
cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the
procurement, production, processing, storage and distribution of dairy products.
India as nation stands first in its share of dairy productionin the international
scenario. The Industry contributes about Rs. 1,15,970 to the national economy.
EMPLOYMENT OPPORTUNITIES
The Indian Dairy Industry which is in the developing stage provides gainful
employment to a vast majority of the rural households . Its employs about 8.47
million people on yearly basis out of which 71% are women.
Jobs in Indian Dairy industry are mainly in the fields of productionand processing
of dairy products. An individual with minimum of 60% marks who has bachelor’s

5. degree course in the dairy technology can easily be availing an opportunity to work
in this industry. For the graduation coursein Dairy technology one has t qualify the
All India Entrance Testthat is affiliated to the Indian Council of Agricultural
Research. After that the personcan continue with his masters in dairy technology.
Jobs would be for the following positions.
 DAIRY SCIENTISTS:The main job of the dairy scientists is to deal with
collection of milk and taking care of the high yielding variety of animals.
 DAIRY TECHNOLOGY: The work of Dairy technology requires
procurement officers who take the responsibility of collecting milk from
farmers, milk booths and cattle rearers. This particular procurement officer
should well understand the latest technology that is applicable in
maintaining the quality of milk of the process oftransporting it to the desired
location.
 DAIRY ENGINEERS: Dairy engineers are usually appointed is to set up
and maintain dairy plants.
 MARKETING PERSONNEL: These individuals deal with the sale and
marketing of milk together with milk products.
LATESTS DEVELOPMENTS
 Indian Dairy Industry is the largest milk producerall over the world, around
100 million MT Indian Dairy Industries value of output amounted to Rs.
1179 billion in 2004-05 which approximately equals combined output of
paddyand wheat. With 1/5th of the world’s bovine population.

6.  In India the Milch animals constitutes 45% indigenous cattle, 55% buffaloes,
and 10% cross bred cows.
INTENSIVE DAIRY DEVELOPMENT PROGRAMMED (IDDP): The schemes,
modified under this programmes are on the basis of the recommendation of the
evaluation studies which were launched during Eighth Plan period and is being
continued throughout the Eleventh Plan with an outlay of Rs. 42.49 crore for
2009-10.
STRENGTHENING INFRASTRUCTUREFOR QUALITY AND CLEAN MILK
PRODUCTION(CMP):This is a centrally sponsoredscheme which was launched
in October2003, which had the main objective of improving the quality of raw
milk produced at the every village level in the india.
DAIRY VENTURE CAPITAL FUND: This is introduce in the Tenth Five Year
Plan to bring about structural changes in unorganised sector, which would measure
like milk processingat village level, marketing of graduation of traditional
technology to handle commercial scale using modern equipments and management
skills.
ABOUT NATIONAL DAIRY DEVELOPMENT BOARD
The NationalDairy Development board is an institution of national importance
set up by an Act of Parliament of India. The main office is Anand, Gujrat with
regional offices throughout the country. NDDB’s subsidiaries include IDMC
Limited-Anand, Mother Dairy, Delhi, NDDB Dairy Services, Delhi and Indian
Immunologicals Limited- Hyderabad85.

7. It was founded by Dr. Verghese Kurein. The National Dairy Development Board
(NDDB) was created in 1965, fulfilling the desire of the prime minister of India :
the late Lal Bahadur Shastri to extend the success ofthe Kaira cooperative Milk
Producers’ Union to other parts of india.
That success combined the wisdom and energy of farmers with professional
management to successfully capture liquid milk And milk products markets while
supporting farmer markets while supporting farmer investment with inputs and
services. The major success ofhis mission was achieved through the World Bank
financed Operation Flood, which lasted for 26 years (1970 to 1996) and was
responsible for making India the world’s largest producerof milk. This Operation
was started with the objective of increasing milk production , augmenting farmer
income and providing fair prices for consumers.
NDDB has now integrated 1,17,575 dairy cooperatives in what it calls the Anand
Pattern, linking the village society to the state federations in a three-tier structure.
NDDB launched its Perspective Plan 2010 with four trust areas: Quality ,
Assurance, Productivity Enhancement, Institution Building and National
Information.
National Dairy Development Board (NDDB) was founded to replace:
 Exploitation with empowerment.
 Tradition with modernity.
 Stagnation with growth
An instrument for the development of India’s rural transforming dairying into an
instrument for the development of India’s rural people. Prior to NDDB , the milk
market was vastly governed by local private dairies were neither producing milk

8. nor they were animal breeders and hence law of demand and supply was unheard
by those whose intentions were purely to make more money from both the sides –
that is from producers ofmilk (farmers) and consumers at large.
The National Dairy Development Board (NDDB) was created in promote ,
finance and supportproducer - owned and controlled organizations.
NDDB’s programmes and activities seek to strengthen farmer cooperatives
and supportnational polices that are favourable to the growth of such
institutions. NDDB’s efforts are cooperative principles and the Anand
Pattern of Co-operation.
A commitment to help rural producers help themselves has guided the Dairy
Board’s work for more than 30 years. This commitment has been rewarded
with achievements made by cooperative dairies in milk production,
employment generation, per capita availability of milk, foreign exchange
savings and increased farmer incomes.
NDDB believes that the Rs 70 billion milk cooperative market is getting
much more competitive and wants to strengthen the position of co-
operatives through a multi- pronged action plan with an outlay of 80 billion.
This includes using MDFL to enter into 51:49 joint venture companies
federations to assist them with marketing value added products and to help
them in other ways to become self -reliant enterprises.
Co-operation is the preferred of enterprise, giving people control over the
resources, through democratic self governance. All beneficiaries,
particularly women and under privileged, must be involved in co-operatives
management and decision making. Technological and evolution search for
better way to achieve the objective in the dynamic market.

9. PHILOSOPHY OF NDDB
 Self-reliance is attained when people work together, have a financial stake, and
both enjoy autonomy and acceptthe account ability for building and managing
their own institutions.
 Progressive evolution of the society is possible only when development is directed
by those whom it seeks to benefit.
 In particular, women and the less privileged must be involved in cooperative
management and decision-making.
 Technological innovation and the constant search for better ways to achieve our
objectives is the best way to retain our leading position in a dynamic market.
India is self-sufficient in milk and continues to be world’s largest milk producing
country, with 18% share in world’s milk production in 2015-16. Dairying in India
is more about livelihoods to millions of small and marginal farmers and landless
labourers. Hence, providing a remunerative market to them throughout the year is
a big challenge. The Milk Cooperatives in India play an important role in
providing a long term livelihood opportunity to such farmers, thereby promoting
rural development. The Milk Cooperatives pass on the maximum share of sales
realisation to milk producers (75% of consumer rupee earned) and at the same time

10. make available safe milk to the consumers at an affordable price. There are more
than 200 district cooperative milk unions in India, covering about 1.7 lakh villages,
reaching out to 15.8 million milk producers ofwhich 4.8 million are women
members. The dairy cooperative institutional network covers about one-fifth of the
villages & producers and account for about 16% of the marketable surplus and
about 10% of the production. Hence there is sufficient scopefor dairy
cooperatives to enhance their coverage. During last decades, milk procurement
and marketing by Milk Cooperatives have grown at 7% p.a. respectively.
Producer Companies, another form of collective business enterprise owned &
controlled by producer members - are also evolving. A Producer Company
combines the institutional and ideological strengths of cooperatives with the
flexibility and autonomy available under company law.

11. Post liberalization, private sector has been rapidly expanding their operations into
the dairy business and has created organized milk procurement system like dairy
co-operatives. Now, it is estimated that private players are having equal market
share of cooperatives with larger focus on value added products. While the private
sector is increasing their share, it is important in the interest of Milk Cooperatives
to increase their share of the milk handled (currently 50%) by the organised sector.
In order to recognize the efforts of producer owned & controlled organisations
which demonstrate best practice in the area of management excellence, value to
farmers and social & gender inclusion, NDDB has constituted “NDDB – Dairy
Excellence Award”. This award will encourage organisation to learn & adopt the
best practices in the dairy industry. Along with financial, technical and
institutional support, it is essential that producer owned & controlled organisations
be motivated and inspired to continue to contribute to the socio-economic
development of local communities, with increased vigour, and uphold the core
principles and values of cooperatives.
The NDDB – Dairy Excellence Award - 2016 will be conferred on two Milk
Cooperatives/ProducerCompanies under following three categories:
In the current edition, one more segment of regional level (i.e. North, South, East
& West) awards is constituted. One eligible organisation in each of the three

12. categories in each region will be awarded. The organisation qualified at national
level will not be eligible for regional level awards.
SpecialAwards:
There are inter-regional imbalances in the country, which is also quite evident in
the progress of Milk Cooperatives across the country. Therefore, in order to
appreciate the efforts of Milk Cooperatives in North-Eastern part of the country,
one special award will be conferred to the eligible organisation under this category
of award.
The importance of women in dairying goes without saying. In most parts of the
country it is women who take care of, feed and milk the animals, though their
participation in the management of cooperatives has been low.
In order to encourage and recognise the role of women in dairying and to increase
their participation as members & leaders in Milk Cooperatives and to ensure their
financial inclusion, two special category of awards will be conferred on the
organisations with highest number of organized WomenDCS and highest
number of functional women members. One organization will receive the
special award for gender inclusion efforts made by them in each of the two
categories mentioned above.
The awardwould set a benchmark and help the organisations to adoptbest practices
and would encourage them to come up with innovative ways to expand their
business operations, bringing in improved transparency & efficiency, and also
ensuring social, financial and gender inclusion.
Eligibility Criteria:
The participating organisation necessarily has to be:
 Milk producers’ owned and controlled district/tehsil level institution,

13.  Operational for more than 5 years and
 Continuously in profit for last 3 years.
Categoryof Awards:
NationalLevel Winner
Regional LevelWinner

14. SpecialAwards
Award Methodology
CHAIRMAN

15. ABOUT OPERATION FLOOD

16. Operation Flood launched in 1970, was a project of India’s National Dairy
Development Board (NDDB), which was the world’s biggest dairy
development program. It transformed India from a milk -deficient nation
into the world’s largest milk producer, surpassing the USA in 1998, with
about 17 percent of global output in 2010–11. In 30 years it doubled milk
available per person, and made dairy farming India’s largest self-sustainable
rural employment generator. It was launched to help farmers direct their own
development, placing control of the resources they create in their own hands.
All this was achieved not merely by mass production, but by production by
the masses.
The Anand pattern experiment at Amul, a single, cooperative dairy, was the
engine behind the success of the program. Verghese Kurien, the chairman
and founder of Amul, was named the chairman of NDDB by the then Prime
Minister of India Lal Bahadur Shastri. Kurien gave the necessary thrust
using his professional management skills to the program, and is recognized
as its architect.
INTRODUCTION
Operation Flood is the program behind "the white revolution." It created a national
milk grid linking producers throughout India with consumers in over 700 towns
and cities, reducing seasonal and regional price variations while ensuring that the
producergets a major share of the price consumers pay, by cutting out middlemen.
The bedrockof Operation Flood has been village milk producers' co-operatives,

17. which procure milk and provide inputs and services, making modern management
and technology available to members. Operation Flood's objectives included:
 Increase milk production("a flood of milk")
 Augment rural incomes
 Fair prices for consumers
PROGRAM IMPLEMENTATION
Operation Flood was implemented in three phases.
Phase I
Phase I (1970–1980) was financed by the sale of skimmed milk powderand butter
oil donated by the European Union (then the European Economic Community)
through the World Food Program . NDDB planned the program and negotiated the
details of EEC assistance. During this phase, Operation Flood linked 18 of India's
premier milksheds with consumers in India's major metropolitan cities: Delhi,
Mumbai, Kolkata and Chennai, establishing mother dairies in four
metros. Operation Flood – It was originally meant to be completed in 1975,
actually spanned the period of about nine years from 1970–79, at a total costof
Rs.116 crores. At the start of Operation Flood-I in 1970 certain aims were kept in
view for the implementation of the programs: Improving the organized dairy sector
in the metropolitan cities Mumbai (then Bombay), Kolkata (then Calcutta),
Chennai (then Madras) and Delhi through marketing, increasing producers' share
of the milk market, and speeding up development of dairy animals in rural areas to
increase both productionand procurement.
Phase II

18. Operation Flood Phase II (1981–1985) increased the milk-sheds from 18 to 136;
urban markets expanded the outlets for milk to 290. By the end of 1985, a self-
sustaining system of 43,000 village cooperatives with 4,250,000 milk producers
were covered. Domestic milk powderproduction increased from 22,000 tons in the
pre-project year to 140,000 tons by 1989, all of the increase coming from dairies
set up under Operation Flood. In this way EEC gifts and the World Bank loan
helped promote self-reliance. Direct marketing of milk by producers' cooperatives
increased by several million liters a day.
Phase III
Phase III (1985–1996) enabled dairy cooperatives to expand and strengthen the
infrastructure required to procure and market increasing volumes of milk.
Veterinary first-aid health care services, feed and artificial insemination services
for cooperative members were extended, along with intensified member education.
Operation Flood's Phase III consolidated India's dairy cooperative movement,
adding 30,000 new dairy cooperatives to the 43,000 existing societies organized
during Phase II. Milk-sheds peaked at 173 in 1988-89 with the numbers of women
members and Women's Dairy Cooperative Societies increasing significantly. Phase
III increased emphasis on research and development in animal health and animal
nutrition. Innovations like vaccine for Theileriosis, bypassing protein feed and
urea-molasses mineral blocks, all contributed to the enhanced
productivity of milk producing animals.
FEATURES
There were some distinctive features behind the success of'Operation Flood':
 Adopting new methods in the caseof cattle in animal husbandry
 Changing the composition of feed ingredients in different proportions

19.  Fixing of different producercosts ona sliding scale
ABOUT THE COMPANY

20. Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the
National Dairy Development Board (NDDB). It was an initiative under Operation
Flood, the world's biggest dairy development program launched to make India a
milk sufficient nation. Over the years, Mother Dairy has contributed significantly
in achieving this objective through a series of innovations and programs. Today,
Mother Dairy manufactures markets & sells milk and milk products including
cultured products, ice creams, paneer and ghee under the Mother Dairy brand. The
Company also has a diversified portfolio with products in edible oils, fruits &
vegetables, frozen vegetables, pulses, processedfood like fruit juices, jams, etc. to
meet the daily requirements of every household.
The Company over the last many years has created a market leadership position for
itself in branded milk segment in Delhi & NCR through a robust network of its
boothand retail channels. It has also expanded its reach to other regions in North,
South, East and West with its offering of Milk and Milk products pegging it among
the few companies to own such a vast channel of distribution in India.

21. Brand Mother Dairy sources a significant part of its requirement of liquid milk
from dairy cooperatives and village level farmer centric organizations. The
Company is committed to uphold institutional structures that empower milk
producers and farmers through processes that are equitable. A significant portion
of its income is ploughed back into the value chain to supportand maintain the
system.
Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO
14001:2004 (EMS) certified organization. Quality of milk is of paramount
importance for the company and hence it has invested extensively in installing hi
tech automated machines to ensure high productquality/reliability and safety.
Safal, F&V arm of Mother Dairy was the first Company to organize the fruits and
vegetables business in India. Today Safal is the market leader in organized fruit &
vegetable retail business in Delhi NCR and operates the largest number of F&V
Stores in Delhi NCR and has significant presence in Bangalore. Safal was also the
first brand in India to launch frozen vegetable in mid 90s. Over the years, the brand
has gained significant customer supportand has becomea household brand with
market leadership and presence across the country.
Safal also has a state of the art plant in Bangalore which produces and sells around
23000 MT of aseptic fruit pulp & concentrate annually and supplies to noteworthy
companies in food processingspacelike CocaCola, Pepsi, Unilever, Nestle etc.
Safal also has a prominent presence across 40 countries viz., USA, Europe, Russia,
Middle East, Asia and Africa and exports Fresh Fruits & Vegetables (Grapes,
Banana, Gherkin, Onion, etc.), Fruit Pulp & Concentrate, Frozen Fruits &
Vegetables, etc.

22. Mother Dairy is also present into edible oils segment under the brand name Dhara
which was launched under the 'Operation Golden Flow' program of NDDB as a
market intervention program to address a larger cause of the Indian farmers &
consumers. Trust, Purity and Taste are the hallmarks of Dhara cooking oil.
It has been a constantendeavor at Mother Dairy to stay connected with its
stakeholders. The corporate tag line of the latest brand campaign - Happy Food
Happy People - captures the essence of what the Company stands for. Mother
Dairy is committed to bring happiness to every individual with its range offering
pure, hygienic and adulteration-free high-quality products which has been the
strength, differentiator and heritage of the brand over years.
In our effort to instil and create happiness in all the lives we touch, we live our
notion of creating happiness for our employees through creating a workplace
reality that is fulfilling and enriching for them. We constantly listen to our
employees and evolve our people practices. As a result of this, Mother Dairy has
been recognized as the 2nd Best in the FMCG Industry and has also been ranked at
39th amongst India's Top 100 Best Companies to Work, in a study by Great Place
To Work Institute in association with the Economic Times for their annual 2015
survey. The correspondingranking in 2014 was 62nd amongst the list of Top 100.
In the survey, the brand also witnessed a significant move its Trust Index from
70% to 83% in 2015.
VISION AND MISSION

23. CRAFTING FOOD
Mother Dairy is committed to deliver products which meet all regulatory,
industrial, consumer Quality and Food safety requirements to our valued
consumers.Ourcontinuous efforts focused on building a sustainable "Quality and
Food Safety Program" across food chain, using state of the art processes and
innovative technologies towards delivering wide range of "Dairy and Food"
products.
Our systems are designed to have process monitoring and controls at each stage of
food chain towards Continual Improvements.
We, assure that our valued consumers are satisfied, each time they experience our
product.

24. It is our endeavor to create a culture of "Total Quality" where continuous
improvement of our people, processes and products becomes a way of life.
At Mother Dairy Innovation Centre, we have a dedicated team of Scientists who
are constantly collaborating international standards and best practices for Quality
& Food Safety in its products.
Innovations
Mother Dairy established its Innovation Centre, the first of its kind in India’s
organized Dairy & Food sector, in April 2010 at its central location in Delhi,. It has
been setup for the purposeof developing healthy, nutritious and convenient Dairy
and Horticulture products.
Mother Dairy’s R&D Team is continually engaged into development of novel
products and innovative packaging systems as well as renovating its existing
products at its state of the art Innovation Centre. The major thrust has been on
developing functional foods targeting consumers’ health & wellness, supplying
products with the taste of western classic delicacies and replicating the home made
taste in Indian traditional products
The Centre is fully equipped with state of the art modern laboratory equipped with
sophisticated lab scale processingequipment. In order to supportthe analytical and

25. shelf life studies associated with productdevelopment activities, the Centre is
equipped with highly sophisticated instruments. Packaging innovations are also
taken up at Innovation Centre with various packaging materials and those are
tested for various parameters which include Tensile and Seal Strength, Bursting
Strength, Automated Leak Detection, CompressionStrength etc.
Product DevelopmentProcess
The productis developed after thorough market analysis and consumer preferences
with the aim of providing healthy choices at reasonable price. This has also
enabled improvising the existing productpackaging and taste to constantly delight
our consumers.New ProductDevelopment process includes ConceptDevelopment,
Lab trials, Shelf life Studies, Consumer Research. Packaging Material
Development is also carried out at Innovation Centre. We select quality ingredients
from reputed manufacturers across the globe meeting all Quality and Food Safety
requirements.Food Safety is of utmost importance while designing the
manufacturing process foreach new product. R&D Scientists monitor and control
first few batches of commercial production to ensure conceptualized quality and
organoleptic characteristics of new products.
Product Innovations
For the first time in India, we introduced Probiotic Dahi “b-Active” and Probiotic
Drink “Nutrifit”. As a result of extensive research, we enriched the ‘Probiotic’
products with dietary fiber to have Synbiotic effect and make it a healthier option.
‘Dietz Sugar Free’ icecream was launched which is suitable for diabetic patients,
calorie conscious and containing high dietary fiber. Human clinical studies were
conducted in collaboration with Fortis hospital, New Delhi to confirm the safety
and advantage of sugar free ice cream for diabetic population. Lic Lolleezz was

26. also introduced with Vitamin C and flavors more appealing to the taste buds of
Indians.Products developed in the in fresh dairy productrange includes: Kheer,
Bottled Lassi (variants: Plain, mango and strawberry), Mishti Doi, Tadka Chach
etc.In the frozen category, Kulfi in traditional flavors viz., Rose, Pan and Rabri,
Dollies in Raspberry& Guava chilly, Indian Classics, Western Classics and Dietz
Sugar Free are the most recent productranges.
Innovations In Dairy Products
Probiotic Dahi
• The first Synbiotic (combination of pro- and prebiotic) fermented productin
India
• The most ideally suited vehicle to carry millions of beneficial bacteria as well as
fiber to consumers on a regular basis
• Proven Probiotic Strains Bifidobacterium animalis Bb12 and Lactobacillus
acidophilus A-5 with strong clinical evidence
• Improves Gastro Intestinal ( GIT) health
• Inhibits enteric pathogens
• Improves phagocytosis & Ig levels
• Texture & taste liked by Indians
• Low fat fermented products
• Provides 8 % dietary fiber need as per ADA
• Sensory quality comparable to indigenous Dahi
• Postacidification negligible throughout shelf life
• Marketed as B-Active Plus Dahi
Probiotic Drink
• Probiotic Strains Bifidobacterium animalis Bb12 and Lactobacillus acidophilus

27. A-5 Probiotic strains BB-12 and LA-5 which helps improve immunity
• Contains real fruit with natural goodness
• Assurance of bottle sterility for packaging
• Provides 8% daily dietary need as per ADA
• Favorably modulate GI microflora
• Sold under the brand Name Nutrifit
Paneer
• Traditional Culinary Dairy product
• Soft, good slicing /cutting properties & excellent taste
• Extended Shelf life after vacuum packaging
Misti Doi
• Traditional Bengal Delicacy
• Newly improved formulation with better sensorial properties
• Productattributes similar to home made product.
Rice Kheer
• Popular Indian dessert
• Creamy rich taste with goodness of dry fruits and nuts
Lassi
• In three varieties – plain, mango fruit and strawberry fruit
• Convenient trendy bottle packaging
• Most suited for on-the go consumption
Innovations In Ice Creams
Natural Vanilla ChocofudgeCake
• Productwith natural vanilla Flavour & chocolate sauce throughout ice cream

28. • Better taste & appearance
• Chocolate cake as base to relish the product
Kulfi Range
• Indian flavors – Kesar, Pista, Roseand Paan Kulfi to meet the local tastes
• New shape of Kulfi on stick – high selling value
• Richness & creaminess due to high solid content
Fruit Classics
• Goodness ofreal fruit in product
• No added artificial Flavour
• No added synthetic food color
Fortified Ice Candies
• Fortification with Vitamin-C meant for kids & youths
• Provides 25% RDA (Recommended Dietary Allowance)
• Benefits of Vitamin-C
Indian Classics
• Icecream with traditional indigenous flavors – Kaju Kishmish, Basundi and
Kheer , kesar pista
• Filled with nuts and fruits
Western Classics
• An all new range with a true western experience packed with chocolate, cookies
and cake to delight and enrich the experience of ice cream
• Launched exclusively for the indulgent ice cream consumers
Dietz Sugar Free
• No added sugar with low fat

29. • Sensory attributes at par with regular ice cream
• Clinical study carried out satisfactorily by Diabetic Foundation of India
Innovations In Fruits And Vegetables Product
RTS Fruit Drinks
• Peach Drink
• Plum Drink
• Pineapple Drink
• Mango Drink
• Guava Drink
• Litchi Drink
• Orange Drink
Apple Juice, Natural – 100%
Peach Jam with pieces – Natural (No added Colour, Flavour & preservatives)
Aloo Tikki – Frozen
Masala Sweet Corn – Frozen
o Plain Salted
o Indian Magic Masala
Innovation in ProductPackaging
Sterility of Bottles
• The bottles are formed at high temperature and sealed immediately to maintain
sterility
• The sterile bottles are cut open, filled and sealed under aseptic condition

30. maintained by Laminar Air Flow of 0.3 Micron filtered air
• The filled productis immediately transferred to refrigerated storage.
New Bottle Holders / Collators
• Convenient to customer
• Better POP effect
• Better shelf display
• Economy of operation
Multilayer Pouch
• UV treatment to pouches to avoid microbiological contamination
• Specialized multilayer pouch for vacuum packing of paneer to extend shelf life
• Comparable barrier properties of latest polymer structure
• Improved economy
Icecream Monocarton/ Paper Tubs
• Introduced food grade virgin paperboard for packaging Ice Creams
• Poly extrusion and water resistant food grade varnish coating
Innovative Thermoformed Tray
• First to introduce in India
• Hygienic Secondary Packaging for 90, 200 and 400 g Dahi SKUs
• Most convenient and economical secondary packaging
• Reusable and recyclable
Microwavable Cups
• For kheer and cornchatkara
• The contents can be microwaved in the same cup without emptying

31. Quality Process
Procurement
Fresh milk is sourced directly from state level co-operatives and Mother Dairy own
New Generation Co-operatives (NGC). Milk received from individual producer is
checked for all basic quality parameters meeting company specifications &
requirements at respective collection & chilling centers.
Milk is then supplied to the Dairy units through insulated Milk Tankers under
refrigerated conditions to maintain the freshness.
Strict Quality checks are performed for all incoming Milk received at Dairy units.
These includes organoleptic (Taster, Odor& Appearance), Physico-chemical (e.g.
Temperature, Foreign matter, % Fat, % SNF, %Acidity, % Protein etc.),
microbiological (e.g. MBRT), also presence of any adulterations in Milk (e.g.
Formalin, urea, starch, sugar, Glucose, maltodextrin, nitrate, Salt, Hydrogen Per-
oxide, neutralizer, ammonium compounds and Fat adulterations).
Commodities, ingredients & packaging material used for our products are checked,
approved and released by Quality functions as per company specifications and
requirements.
GMP And Hygiene
Good manufacturing Practices (GMP) for our manufacturing units are ‘a given’,
they are part of our heritage of producing best quality and safe products. We
maintain highest level of GMP and hygiene requirements for production and
handling of safe products forour valued customers and consumers

32. Processing
Our products are manufactured in state of the art manufacturing facilities using
innovative Process & Technologies. The Milk received at the plant undergoes
various processingsteps before it reaches to the customer. Process steps include
filtration, clarification, pasteurization, chilling, filling, packing and storage for our
liquid milk category. Forother dairy productcategory, few of the process steps are
homogenization, vacreation, ultra heat treatment, evaporation, dehydration etc.
Cleaning & Sanitation of the processing equipment is ensured using automatic
Cleaning in Place (CIP) systems by applying ‘5T’ principles viz. Technology,
Time, Temperature, Turbulence and Testing.
Critical controlpoints (CCP), Operational Prerequisite Programs (OPRP)are
identified for each process using scientific methodology and appropriate control
measures are applied to ensure compliance of Quality and Food Safety
requirements.
Process controlparameters are monitored, recorded and reviewed as per the
Quality Plan to ensure right productright at first time.
Manufacturing processesare benchmarked against best-in-class standards towards
continual improvement for infrastructure and system requirements.
Packing
The Filling and packing is considered to be most sensitive operation having
appropriate access control. Zoning principles are applied in these areas to avoid
any cross contaminations in our Finished Product. Online quality controlchecks

33. (e.g. net weight, leakages, seal integrity, batch coding, packing material quality,
filling temperature etc.) are carried out and recorded by our Packing In-charges.
Only QC approved and released Packaging materials are used for packing
operations.
Packaging material used for our products is with the objective of retaining taste,
freshness and unique natural appeal.
Product Testing And Release
Finished productis tested for the specified quality parameters of each product
category as per our internal standardized sampling plan and test procedure. Test
results are recorded, reviewed by Quality functions.
Distribution
Our strength lies in adherence to systematic Process approachin the complete
distribution chain to deliver productwith highest quality standards to our
customers and consumers. This includes,
1. Availability of standard guidelines & norms for warehousing, handling, storage
and transportation requirements.
2. Benchmarking of Transportation vehicles for infrastructure and hygiene
requirements
3. Benchmarking of CFA’s and Distributors for infrastructure and hygiene
requirements
4. Benchmarking of Milk Shops forinfrastructure and hygiene requirements
5. Monitoring of quality parameters (e.g. hygiene, storage temperature) of the
distribution chain

34. Mercandizing
Our products are marketed through a chain of our own Milk Shops, retail outlets
and mobile vending units maintaining best-in-class hygiene standards. We ensure
that products are available, displayed appropriately and cold chain conditions are
maintained to retain productquality & freshness.
Product Quality
MILK
Mother Dairy maintains stringent measures to ensure the quality and purity of the
milk provided to its consumers. Each batch of incoming and outgoing milk is
subjected to 21 quality tests including presence of foreign matter and
bacteriological tests. The quality of milk accepted and dispatched meets certain
predetermined standards. The milk goes through various processes suchas
Clarification, Homogenization, Standardization and Pasteurization, to ensure that it
is safe for human consumption. Our motive for following such strict quality
measures is to ensure that there is no contamination while processingor packaging.
Mother Dairy promises its consumers that it will continue to produceproducts of
the highest quality standard. Its Dairy products are processed & packed in ISO
certified plants & strict controls are exercised by quality assurance department on
all the plants. Most of our plants are certified for FOODSAFETY
MANAGEMENT SYSTEM.
All the operations in our organization are manned by qualified & highly
experienced personnel.
We at Mother Dairy focus on motivated & hard working, well qualified & trained
personnel in front end as well as back end operations. The dedicated Field QA
team ensures that the products manufactured at the plant are handled properly once

35. the products dispatched from manufacturing units.
FRUIT AND VEGETABLES
Quality of “Safal” Producestarts from the field itself. Mother Dairy Quality
Assurance professionals constantly provide technical supportto Farmers during all
stages of Supply chain (e.g harvesting, handling, transportation and storage).
We, at Mother Dairy Monitor and Controlthe producequality during material
receiving, processingand finished productstage against Company Standards &
Specifications.
Our state of the art Manufacturing Operations are certified for Quality
Management System (ISO 9001: 2008) and Food Safety Management System (ISO
22000: 2005).
The Core purposeof “Safal” is to bring Fresh, Frozen and ProcessedFruit &
Vegetable Quality products that form daily diet of the people.
Edible Oil
Dhara uses sophisticated quality assurance instruments such as GLC, GCMS,
HPLC, HPTLC, Rancimat etc. to ensure that Dhara oils are 100 % pure. The
unique packaging material used for packing Dhara oil variants is food grade to
ensure that the oil packed in it remains hygienic and fresh.
Quality Policy
MILK
Our commitment is to excellence. The evolving needs of our customers drive us to

36. continual improvement in our processes and systems.
We are committed to:
• Apply state of the art technology and processesto enhance productivity that
ensures quality at competitive price.
• Apply processesforclean production, pollution prevention and optimize resource
utilization in all operations.
• Follow food safety management system and apply HACCP (Hazard Analysis
Critical Controlpoints) principles to
provide safe products to customers.
• Develop and empower our people for maintaining a vibrant work environment,
which encourages excellence.
• Comply with applicable regulations and legislations.
We pledge to provide quality and safe products under clean and hygienic
environment.
FRUITS AND VEGETABLES
“We firmly believe that sustained organizational excellence can only be achieved
by providing superior value to our customers through timely, innovative and safe
products and services”
We strive to achieve this goal through:
• Facilitating a direct link between farmers and the consumer
• Developing a network of farmers / suppliers committed to improve quality,
productivity & safe agricultural
practices

37. • Efficient utilization of resources through continuous focus on reducing waste &
non value adding activities
• Identifying & applying innovative practices & state of the art technology
• Developing empowered & motivated workforce , committed to quality &
continual improvement
• Helping employees and farmers to upgrade their skills by providing training and
exposure to food safety systems
• Ensuring food safety through effective implementation of Food Safety Systems
and complying with statutory andregulatory requirements.
We shall endeavor to build a heritage of commitment & excellence to be the most
trusted choice of consumers
FRUIT PULP AND CONCENTRATE
To achieve a significant market share and popularize consumption of Indian
Tropical Fruit products in National & International markets and provide
opportunities for the growth of Indian farm produce.
Our Quality Policy is to:
• Constantly strive to understand and meet the ever growing needs of the customer
• Meet national and international standards in processes and products ensuring
consistently high level of quality
• Constantly maintain highest level of cleanliness hygiene and practice hazard free
operations
• Utilize state-of- art technology in handling and processing of fruits and fruit
products
• Forge a unique relationship with farmers for mutual benefits

38. The success ofthis policy shall be realized through trained and competent
employees who shall work as well knit team and have the requisite empowerment
to discharge their individual and collective responsibilities.
Nutrition
Some simple guidelines for a healthy life:
Dairy
Dairy products are an excellent sourceof calcium. Calcium is important because it
builds strong bones to last a lifetime. Milk, Cheese and Yogurt are great sources of
calcium. Three servings should be included in your diet every day.
Fats
Limit the fats and oils you eat. your bodyneeds some fat for energy and to keep
you warm, but too much fat can make you overweight and cause health problems
when you're older. A little bit of fat goes a long way.
Grains
Whole grains are an important sourceof fiber, which keeps your digestive system
working property. Included in this group are pasta, rice, and whole-grain breads
and cereals. Six servings of whole grains should be eat

39. en every day.
Vegetables
Remember to eat your vegetables, especially those dark green and orange ones.
Vegetables are an important sourceof vitamins and minerals and are also a good
sourceof fiber. Eat at least three servings every day.
Fruits
Sweet, juicy fruits should definitely be part of the healthy diet. Fruits can add
important vitamins and fiber to your diet. you should eat at least two servings each
day.
Proteins
Meat, poultry, fish, dry beans, eggs, peanut butter and nuts are good sources of
proteins. These foods contain iron and other important nutrients your bodyneeds to
build strong muscles. Eat at least two servings each day.
Water
Drinking water is one of the easiest and most important things we can do to keep
our bodies healthy. Drink at least six glasses of water every day.

40. Exercise
It is important to exercise to help your bodyburn the food it is taking in. The more
active you are, the better.
STRENGTH OF BRAND
Mother Dairy sells milk and milk products (Milk, cultured products, Icecreams,
Paneer and Ghee) at a national level through its sales and distribution networks for
marketing food items.
Mother Dairy sources significant part of its requirement of liquid milk from dairy
cooperatives. It is Mother Dairy’s constant endeavor to ensure that milk producers
and farmers regularly and continually receive market prices by offering quality
milk, milk products and other food products to consumers at competitive prices
and uphold institutional structures that empower milk producers and farmers
through processesthat are equitable.

41. Mother Dairy sells milk and milk products (Milk, cultured products, Icecreams,
Paneer and Ghee) at a national level through its sales and distribution networks for
marketing food items.
Mother Dairy sources significant part of its requirement of liquid milk from dairy
cooperatives. It is Mother Dairy’s constant endeavor to ensure that milk producers
and farmers regularly and continually receive market prices by offering quality
milk, milk products and other food products to consumers at competitive prices
and uphold institutional structures that empower milk producers and farmers
through processesthat are equitable.
At Mother Dairy, processingof milk is controlled by process automation whereby
state-of-the-art microprocessortechnology is adopted to integrate and completely
automate all functions of the milk processing areas to ensure high productquality/
reliability and safety. Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005
(FSMS) and ISO 14001:2004 (EMS) certified organization. Mother Dairy has
Certificate of Approval from Export Inspection Council of India also. Moreover,
its Quality Assurance Laboratory is certified by National Accreditation Board for

42. Testing and Calibration Laboratory (NABL)-Department of Science and
Technology, Government of India.
Mother Dairy markets approximatley 3.2 million litres of milk daily in the markets
of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy milk has a market
share of 66% in the branded sectorin Delhi where it sells 2.5 million litres of milk
daily and undertakes its marketing operations through around 1400 retail outlets
and over 1000 exclusive outlets of Mother Dairy.
CORPORATE SOCIAL RESPONSIBILITY
1. Introduction
Mother Dairy was set up in 1974 under the Operation Flood Programme and is a
wholly owned company of the National Dairy Development Board (NDDB).
Mother Dairy’s business philosophy is inherently linked with the co-operative
movement in India and is focused on serving farmers, rural societies and
consumers fairly.
As a responsible corporateentity, Mother Dairy has been working towards
improving the livelihood standards of the small subsistence farmers by educating
them about better farming techniques, hygienic practices and modern methods of
dairy farming. Environmental sustainability has also been the core of company’s
business approachas we pioneered delivery of hygienic processed milk to the
consumer in an unpacked condition, thereby saving tonnes of plastic waste.
2. Objective and Scope ofPolicy
Objective of this policy is to

43.  Introduce an uniform a strategic approachto CSR across the organization
 Ensure an enhanced commitment for CSR among all levels of the
organization
 Achieve maximum impact for various communities through better project
management and monitoring
3. CSR Policystatement
3.1 Vision, Missionand Goals
We are committed to holistic development of the communities we serve. In the
process, we will strive to create positive social, economic and environmental value
for the socially and economically disadvantaged sections of our society.
We will mobilize our core competencies of innovation and project planning using
our understanding of rural issues to deliver sustainable and high impact projects
that benefit communities.
We will ensure that starting FY 2014-15,
 We will comply with the provisions of section 135 of companies act 2013
and commensurate funds will made available for CSR programs
 We will monitor and report influence of our CSR activities.
 economic surplus arising out of CSR activities will not constitute part of
company’s business profit.
3.2 Focus Areas
Mother Dairy (MD) will implement its CSR activities in accordancewith Section
135 of the Companies Act 2013 and the Rules notified thereafter.

44. Taking guidance from Schedule VII, Mother Dairy will focus on
 Poverty alleviation, Women empowerment, Prevention of malnutrition with
appropriate supplements
 Ensuring environmental sustainability and conservation of natural resources,
with specific emphasis on water.
 Contributions to the society ‘NDDB Foundation for Nutrition’.
 Contributing to Prime Minister’s National Relief Fund or any other fund set
up by the central government for socio-economic development, if needed.
 Any other activity specified in Schedule VII to the Companies Act, 2013.
3.3 Implementation
Our company will adoptfollowing structure to implement CSR projects approved
by the board.

45. Our company will have board level committee for CSR which will comprise of 3
persons, Chairman, Non- Executive Director and the Managing Director. This
committee shall
 Provide overall guidance on strategy & implementation
 Approve & Recommend CSR projects for funding and implementation
 Monitoring & /Reviewing
A Sub-Committee comprising of CPO, CFO, COO, CIO, CS and General Manager
(Corporate Finance) shall ensure implementation of the proposals in line with this
Policy.
Further, in order to make CSR a broader engagement theme within the company
and to ensure smooth decision making on implementation issues, the company will
constitute a CSR Review Panel comprising of select business unit and
departmental heads. The Panel shall overlook the on ground monitoring &
reviewing of projects implemented.
Finally, a Stakeholder Involvement Team (SIT) will be formed at plant level to
oversee implementation of CSR projects/programs with communities. SIT will
comprise of 4 member team, headed by plant head. SIT shall
 Prepare detailed project plans
 Identify appropriate NGOs/technology Vendors/Partners where required.
 Promote Employee engagement and participation towards CSR-Projects
3.4 Monitoring and evaluation

46. Monitoring and evaluation is an integral part of community related projects,
particularly outcome assessmentand financial monitoring. Our company will
ensure this through
 CSR committee to review strategy, focus areas, as and when required
 CSR Review Panel to ensure adherence to finalized project plan in execution
of CSR projects.
 CSR Review Panel to quarterly review & report project progress to the
committee, SIT to submit actual project implementation details as per format
prescribed in Section 135 of Companies Act 2013.
 SIT to liaise with local communities at least quarterly - to understand usage,
uptake and challenges in execution of identified CSR projects.
4. Reporting
Mother Dairy believes CSR is an important tool to engage with communities and
consumers alike and thus, we shall include a report on CSR activities in the annual
board report of the company. This report shall provide an overview of the CSR
projects undertaken, outcomes achieved, composition of CSR committee, budget
projected, actual expenditures, reasons for under utilization of CSR funds, if at all
etc. In addition, this report shall also be made available online through Mother
Dairy’s website.

47. MAJOR COMPETITORS
AMUL
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
Formed in 1950, it is a brand managed by a cooperative body, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3.6 million milk producers in Gujarat.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance
of Sardar Patel and Verghese Kurien. As a result, Kaira District Milk Union
Limited was bornin 1946. Tribhuvan das became the founding chairman of the
organization which he led till his last day of his life. He hired Dr. Kurien three
years after the white revolution. He convinced Dr.Kurien to stay and help with the
mission rest was history in the dairying industry.
Amul spurred India's White Revolution, which made the country the world's
largest producerof milk and milk products. In the process Amul became the largest
food brand in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years
(1973–2006), is credited with the success ofAmul. Amul products are now
available in more than 60 countries in the world.
Amul-cooperative registered on 14 December 1946 as a responseto the
exploitation of marginal milk producers by traders or agents of the only existing
dairy, the Polson dairy, in the small city distances to deliver milk, which often
went sour in summer, to Polson. The prices of milk were arbitrarily determined.
Government had given monopoly rights to Polsonto collect milk from Kaira and
supply it to Bombay city.

48. Angered by the unfair trade practices, the farmers of Kaira
approached SardarVallabhbhai Patel under the leadership of local farmer
leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply
milk directly to the Bombay Milk Scheme instead of Polson(who did the same but
gave them low prices).[8]He sent Morarji Desai to organise the farmers. In 1946,
the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most
producers were marginal farmers who could deliver, at most, 1–2 litres of milk per
day. Cooperatives were formed for each village, too.
The cooperative was further developed and managed by Dr.Verghese
Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder from
buffalo milk (for the first time in the world) and a little later, with Kurien's help,
making it on a commercial scale, led to the first modern dairy of the cooperative at
Anand, which would compete against established players in the market. Kurien's
brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer
points of marketing, including the creation and popularization of a brand. This led
to the search for an attractive brand name. In a brainstorming session, a chemist
who worked in the dairy laboratory suggested Amul, which came from the Sanskrit
word "amulya", which means "priceless" and "denoted and symbolised the pride of
swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in
other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set
up.To combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing bodyof these

49. district cooperatives, was set up in 1973. The Kaira Union, which had the brand
name Amul with it since 1955, transferred it to GCMMF.[12]
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.[13]
Technological developments at Amul have subsequently spread to other parts of
India.
The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing
organisation for products under the brand name of Amul and Sagar. Over the last
five and a half decades, dairy cooperatives in Gujarat have created an economic
network that links more than 3.1 million village milk products with millions of
consumers in India. Gujarat Cooperative Milk Marketing Federation Ltd.
MARKETING MIX
The 'marketing mix (also known as the 4 Ps)is a foundation model in marketing.
The marketing mix has been defined as the "set of marketing tools that the firm
uses to pursue its marketing objectives in the target". Thus the marketing mix
refers to four broad levels of marketing decision, namely: product, price,
promotion, and place. Marketing practice has been occurring for millennia, but
marketing theory emerged in the early twentieth century. The contemporary
marketing mix, or the 4 Ps, which has become the dominant framework for
marketing management decisions, was first published in 1960. In services
marketing, an extended marketing mix is used, typically comprising 7 Ps, made up

50. of the original 4 Ps extended by process, people, and physical
evidence. Occasionally service marketers will refer to 8 Ps, comprising these 7 Ps
plus performance.
In the 1990s, the model of 4 Cs was introduced as a more customer-driven
replacement of the 4 Ps. There are two theories based on 4 Cs: Lauterborn's 4 Cs
(consumer, cost, communication, convenience), and Shimizu's 4 Cs (commodity,
cost, communication, and channel).
Given the valuation of customers towards potential productattributes (in any
category, e.g. product, promotion, etc.) and the attributes of the products sold by
other companies, the problem of selecting the attributes of a productto maximize
the number of customers preferring it is a computationally intractable problem.
EMERGENCE AND GROWTHOF MARKETING MIX
The origins of the 4 Ps can be traced to the late 1940s. The first known mention of
a mix has been attributed to a ProfessorofMarketing at Harvard University, Prof.
James Culliton. In 1948, Culliton published an article entitled, The Managementof
Marketing Costs in which Culliton describes marketers as 'mixers of ingredients'.
Some years later, Culliton's colleague, ProfessorNeil Borden, published a
retrospective article detailing the early history of the marketing mix in which he
claims that he was inspired by Culliton's idea of 'mixers', and credits himself with
popularising the conceptofthe 'marketing mix'. According to Borden's account, he
used the term, 'marketing mix' consistently from the late 1940s. Forinstance, he is
known to have used the term 'marketing mix' in his presidential address given to
the American Marketing Association in 1953.
Although the idea of marketers as 'mixers of ingredients' caught on, marketers
could not reach any real consensus about what elements should be included in the

51. mix until the 1960s. The 4 Ps, in its modern form, was first proposed in 1960 by E.
Jerome McCarthy; who presented them within a managerial approachthat
covered analysis, consumer behavior, market research, market segmentation,
and planning. Phillip Kotler, popularised this approachand helped spread the 4 Ps
model. McCarthy's 4 Ps have been widely adopted by both marketing academics
and practice.
The prospectofextending the marketing mix first tookhold at the inaugural AMA
Conference dedicated to Services Marketing in the early 1980s, and built on earlier
theoretical works pointing to many important limitations of the 4 Ps model.Taken
collectively, the papers presented at that conference indicate that service marketers
were thinking about a revision to the general marketing mix based on an
understanding that services were fundamentally different to products, and therefore
required different tools and strategies. In 1981, Booms and Bitner proposeda
model of 7 Ps, comprising the original 4 Ps extended by process, peopleand
physical evidence, as being more applicable for services marketing.
Since then there have been a number of different proposals fora service marketing
mix (with various numbers of Ps), most notably the 8 Ps, comprising the 7 Ps
above extended by 'performance'.

52. McCarthy's 4 Ps
The original marketing mix, or 4 Ps, as originally proposedbymarketer and
academic E. Jerome McCarthy, provides a framework for marketing decision-
making. Table 1: Brief Outline of 4 Ps
Category Definition/ Explanation Typical Marketing Decisions
Product
A product refers to an item that satisfies the
consumer's needs or wants.
Products may be tangible (goods) or intangible
(services,ideas or experiences).
 Product design – features,quality
 Product assortment – productrange,product
mix, product lines
 Branding
 Packaging and labeling
 Services (complementaryservice,after-sales
service, service level)
 Guarantees and warranties
 Returns
 Managing products through the life-cycle[6]
Price
Price refers to the amounta customer pays for a
product.
Price may also refer to the sacrifice consumers
are prepared to make to acquire a product.
(e.g. time or effort)
Price is the only variable that has implications for
revenue.
Price also includes considerations of customer
perceived value.
 Price strategy
 Price tactics
 Price-setting
 Allowances – e.g. rebates for distributors
 Discounts – for customers
 Payment terms – credit, paymentmethods
Place
Refers to providing customer access
Considers providing convenience for consumer.
 Strategies such as intensive distribution,
selective distribution,exclusive distribution [21]
 Franchising;[22]
 Market coverage
 Channel member selection and channel
member relationships
 Assortment

53.  Location decisions
 Inventory
 Transport,warehousing and logistics
Promotion
Promotion refers to marketing communications
May comprise elements such
as:advertising,PR, direct marketing and sales
promotion.
 Promotional mix- appropriate balance of
advertising,PR, direct marketing and sales
promotion
 Message strategy- what is to be communicated
 Channel/media strategy- how to reach the
target audience
 Message Frequency- how often to
communicate
The 4Ps have been the cornerstoneof the managerial approachto marketing since
the 1960s
Product refers to what the business offers for sale and may include products or
services. Productdecisions include the "quality, features, benefits, style, design,
branding, packaging, services, warranties, guarantees, life cycles, investments and
returns".
Price refers to decisions surrounding "list pricing, discount pricing, special offer
pricing, credit payment or credit terms". Price refers to the total costto customer to
acquire the product, and may involve both monetary and psychological costs such
as the time and effort expended in acquisition.
Place is defined as the "direct or indirect channels to market, geographical
distribution, territorial coverage, retail outlet, market location, catalogues,
inventory, logistics and order fulfilment". Place refers either to the physical
location where a business carries out business or the distribution channels used to
reach markets. Place may refer to a retail outlet, but increasingly refers to virtual
stores such as "a mail order catalogue, a telephone call centre or a website".

54. Promotion refers to "the marketing communication used to make the offer known
to potential customers and persuade them to investigate it further". Promotion
elements include "advertising, public relations, direct selling and sales promotions.
Modified and expanded marketing mix: 7 Ps
By the 1980s, a number of theorists were calling for an expanded and modified
framework that would be more useful to service marketers. The prospectof
expanding or modifying the marketing mix for services was a core discussiontopic
at the inaugural AMA Conference dedicated to Services Marketing in the early
1980s, and built on earlier theoretical works pointing to many important problems
and limitations of the 4 Ps model. Taken collectively, the papers presented at that
conference indicate that service marketers were thinking about a revision to the
general marketing mix based on an understanding that services were fundamentally
different to products, and therefore required different tools and strategies. In 1981,
Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps
plus process, people and physical evidence, as being more applicable for services
marketing.

55. Table 2: Outline of the Modified and Expanded Marketing Mix
Category Definition/ Explanation Typical Marketing Decisions
Physical
evidence
The environment in w hich service occurs.
The space w here customers and service personnel
interact.
Tangible commodities (e.g. equipment, furniture) that
facilitate service performance.
Artifacts that remind customers of a service
performance.[25]
 Facilities (e.g. furniture, equipment, access)
 Spatial layout (e.g. functionality, efficiency)
 Signage (e.g. directional signage, symbols,
other signage)
 Interior design (e.g. furniture, color
schemes)
 Ambient conditions (e.g. noise, air,
temperature)
 Design of livery (e.g. stationery, brochures,
menus, etc.)
 Artifacts: (e.g. souvenirs, mementos, etc.)
People
Human actors w ho participate in service delivery.[26]
Service personnel w ho represent the company's
values to customers.
Interactions betw een customers.
Interactions betw een employees and customers.[27]
 Staff recruitment and training
 Uniforms
 Scripting
 Queuing systems, managing w aits
 Handling complaints, service failures
 Managing social interactions
Process
The procedures, mechanisms and flow of activities by
w hich service is delivered.
 Process design
 Blueprinting (i.e. flow charting) service
processes[28]
 Standardization vs customization decisions
 Diagnosing fail-points, critical incidents and
system failures
 Monitoring and tracking service
performance
 Analysis of resource requirements and
allocation
 Creation and measurement of key
performance indicators (KPIs)
 Alignment w ith Best Practices
 Preparation of operations manuals

56. People are essential in the marketing of any productor service. Personnel stand for
the service. In the professional, financial or hospitality service industry, people are
not producers, butrather the products themselves.[29] When people are the product,
they impact public perception of an organization as much as any tangible consumer
goods. Froma marketing management perspective, it is important to ensure that
employees represent the company in alignment with broadermessaging
strategies. This is easier to ensure when people feel as though they have been
treated fairly and earn wages sufficient to supporttheir daily lives.
Process refers a "the set of activities that results in delivery of the product
benefits". A process could be a sequential order of tasks that an employee
undertakes as a part of their job. It can represent sequential steps taken by a
number of various employees while attempting to complete a task. Some people
are responsible for managing multiple processesat once. Forexample, a restaurant
manager should monitor the performance of employees, ensuring that processesare
followed. (S)he is also expected to supervise while customers are promptly
greeted, seated, fed, and led out so that the next customer can begin this process.
Physical evidence refers to the non-human elements of the service encounter,
including equipment, furniture and facilities. It may also refer to the more abstract
components of the environment in which the service encounter occurs including
interior design, colour schemes and layout. Some aspects of physical evidence
provide lasting proofthat the service has occurred, suchas souvenirs, mementos,
invoices and other livery of artifacts. According to Booms and Bitner's framework,
the physical evidence is "the service delivered and any tangible goods that
facilitate the performance and communication of the service".Physical evidence is
important to customers because the tangible goods are evidence that the seller has
(or has not) provided what the customer was expecting.

57. .
Difficulty of computational methods
Automatically selecting the attributes of a product(in any category, i.e.
product, promotion, etc.) to maximize the number of customers preferring
the resulting productis a computationally intractable problem.Given some
customer profiles (i.e., customers sharing some features such as e.g. gender,
age, income, etc.), the valuations they give to each potential product
attribute (e.g. females aged 35–45 give a 3 out of 5 valuation to "it is green";
males aged 25–35 give 4/5 to "it can be paid in installments"; etc.), the
attributes of the products sold by the other producers, and the attributes each
producercan give to its products, the problem of deciding the attributes of
our productto maximize the number of customers who will prefer it is Poly-
APX-complete. This implies that, under the standard computational
assumptions, no efficient algorithm can guarantee that the ratio between the
number of customers preferring the productreturned by the algorithm and
the number of customers that would prefer the actual optimal productwill
always reach some constant, for any constant.

58. CHAPTER
RESEARCH METHODOLOGY DATA
PRIMARY DATA
Raw data, also known as primary data, is data (e.g., numbers, instrument
readings, figures, etc.) collected from a source. If a scientist sets up a
computerized thermometer which records the temperature of a chemical
mixture in a test tube every minute, the list of temperature readings for every
minute, as printed out on a spreadsheet or viewed on a computer screen is
"raw data". Raw data has not been subjected to processing, "cleaning" by
researchers to remove outliers, obvious instrument reading errors or data
entry errors, or any analysis (e.g., determining central tendency aspects such
as the average or median result). As well, raw data has not been subject to
any other manipulation by a software program or a human researcher,
analyst or technician. It is also referred to as primary data. Raw data is a
relative term (see data), because even once raw data has been "cleaned" and
processed byone team of researchers, another team may consider this
processed datato be "raw data" for another stage of research. Raw data can
be inputted to a computer program or used in manual procedures such as
analyzing statistics from a survey. The term "raw data" can refer to
the binary data on electronic storage devices, such as hard disk drives (also
referred to as "low-level data").

59. Data has two ways of being created or generated. The first is what is called
'captured data',[1] and is found through purposefulinvestigation or analysis.
The second is called 'exhaust data',[1] and is gathered usually by machines or
terminals as a secondary function. For example, cashregisters, smartphones,
and speedometers serve a main function but may collect data as a secondary
task. Exhaustive data is usually too large or of little use to process and
becomes 'transient'[1] or thrown away. However, 'derived'[1] data is useful
enough in nature to be further processed foruse. Examples include
smartphone data, traffic data, and hospital data.
ADVANTAGES OF PRIMARY DATA
 The primary data are original and relevant to the topic of the research
study so the degree of accuracy is very high.
 Primary data is that it can be collected from a number of ways like
interviews, telephone surveys, focus groups etc. It can be also
collected across the national borders through emails and posts. It can
include a large population and wide geographical coverage.
 Moreover, primary data is current and it can better give a realistic
view to the researcher about the topic under consideration.
 Reliability of primary data is very high because these are collected by
the concerned and reliable party.
(ii) Disadvantages of primary data: Following are the disadvantages of
primary data:
For collection of primary data where interview is to be conducted the coverage is
limited and for wider coverage a more number of researchers are required.

60. • A lot of time and efforts are required for data collection. By the time the
data collected, analysed and report is ready the problem of the research
becomes very serious or out dated. So the purposeof the research may be
defeated.
• It has design problems like how to design the surveys. The questions
must be simple to understand and respond.
• Some respondents do not give timely responses. Sometimes, the
respondents may give fake, socially acceptable and sweet answers and try to
cover up the realities.
• With more people, time and efforts involvement.
SECONDARY DATA
Secondarydata refers to data that was collected by someone other than the
user.[1] Common sources of secondarydata for social science include censuses,
information collected by government departments, organisational records and data
that was originally collected for other research purposes.[2] Primary data, by
contrast, are collected by the investigator conducting the research.
Secondarydata analysis can save time that would otherwise be spent collecting
data and, particularly in the caseof quantitative data, can provide larger and
higher-quality databases that would be unfeasible for any individual researcher to
collect on their own. In addition, analysts of social and economic change consider
secondarydata essential, since it is impossible to conducta new survey that can
adequately capture past change and/or developments. However, secondarydata
analysis can be less useful in marketing research, as data may be outdated or
inaccurate.[1]

61. Secondarydata can be obtained from different sources:
 information collected through censuses or government departments like
housing, social security, electoral statistics, tax records
 internet searches or libraries
 progress reports
ADVANTAGES AND DISADVANTAGES OF SECONDARY DATA
Secondarydata is available from other sources and may already have been used in
previous research, making it easier to carry out further research. It is time-saving
and cost-efficient: the data was collected by someone other than the researcher.
Administrative data and census data may cover both larger and much smaller
samples of the population in detail. Information collected by the government will
also cover parts of the population that may be less likely to respond to the census
(in countries where this is optional).[4]
A clear benefit of using secondarydata is that much of the background work
needed has already been carried out, such as literature reviews or casestudies. The
data may have been used in published texts and statistics elsewhere, and the data
could already be promoted in the media or bring in useful personal contacts.
Secondarydata generally have a pre-established degree
of validity and reliability which need not be re-examined by the researcher who is
re-using such data.
Secondarydata can provide a baseline for primary research to compare the
collected primary data results to and it can also be helpful in research design.

62. However, secondarydata can present problems, too. The data may be out of date or
inaccurate. If using data collected for different research purposes, it may not cover
those samples of the population researchers want to examine, or not in sufficient
detail.[1] Administrative data, which is not originally collected for research, may
not be available in the usual research formats or may be difficult to get access to.

63. LIMITATIONS
To carry out the research study the following limitations were expected and faced
during the research study:
(a) Availability of secondary data from sales records of the companies were
difficult.
(b) Salesmen, customers, dealers and retailers were reluctant or hesitant to share
data.
(c) Management may not like to share their views on the topic.
(d) Time, costand location factors becomemajor difficulties in completion of
research.
(e) Sample size may not be exact representative of the universe.
There is possibility of some error to a limited extent. However, to overcome the
limitations and maintain the effectiveness of research work sincere effort.

65. MOTHER DAIRY MARKETING MIX
Marketing mix of mother dairy analyses the brand/company which covers 4Ps
(Product , Price, Place, Promotion) and explains the business and marketing
strategies of mother dairy.
PRODUCT
Mother Dairy is a leading brand offering milk, milk based products and other food
items in india. Mother Dairy productportfolio is majorly divided based on the
three brands Mother Dairy, Dhara and safal. These brands cover the product
strategy in the marketing mix of Mother Dairy.
Mother dairy , the parent based is mainly concerned with the whole dairy product
range. The productdepthand length is quite extensive creating a huge over all
productrange. The Mother Dairy productrange is categorized into milk, milk
products and ice creams segments. The milk segment consists of bulk vended milk

66. ,ultra heat treatment milk. The Mother Dairy milk products segment comprises of
different types of curds, probiotic drinks, paneer, butter, ghee, cream, sweets ,
lassi, butter milk etc. The ice creams segments consists of various classic flavours ,
Indian versions such as kulfi and sugar free variants.
Safal which majorly deals in fruits and vegetables has wide variety of products
comprising frozen vegetables and snacks , juices and drinks, jams and marmalades
pickles, tomato ketchup and puree , honey and unpolished pulses. It also caters to
daily needs of fresh fruits and vegetables.
Dhara which deals in edible oils has various cooking oils like groundnut oil, olive
oil, soya oil, bean oil, sunflower oil, vegetable oil and different variants of
mustard oils. All these cover the offerings of mother dairy.
PRICE
Mother dairy a very penetrative pricing strategy. Since its suppliers are farmers and
cooperatives and needs to supportthem, milk prices change with inflations and
certain amount of fluctuations are visible in Mother Dairy milk prices. Mother
Dairy also maintains a differential pricing strategy in its marketing mix and varies
according to geographical regions. Prices also vary with packages and variants of
milk. Other milk products also have similar situations and we can see pricing done
according to rising prices of other input factors. In the mother dairy ice creams
segment, it keeps for regular ice creams competitive prices and premium prices for
other special flavours. The safal brand also dealing with fresh fruits and vegetables
keeps market based prices. But many products under its brand faces huge
competition and hence it maintains competitive prices. The edible oil sections
under brand Dhara faces a lot competition from many brands and hences as loyalty

67. of customers is based on price and quality. As Mother Dairy has a huge
infrastructure it can compensate the costwith large volumes of products.
PLACE
Mother Dairy has a wide presence across india. In the milk industry, distribution is
quite a critical part of the business and hence to tap into various regions all over
the country it has 1400 retail outlets and 1000 exclusive store in place. As its
suppliers are farmers and cooperatives, it is able to save on other middle men costs.
Since Mother Dairy deals with a perishable which needs refrigeration and has very
less shelf life, it produces as per demand of the regions. After being brought in
from the farmers in tankers or being collected at the collection centres, it goes on
for processing in the plants and then on it is delivered to it Local Area Distributors.
Theses Local Area Distributors then send it to its exclusive Mother Dairy booth,
convenience stores, supermarkets and other smaller retailers. Since consumers are
able to find to Mother Dairy booths very close to their homes, it has built customer
loyalty and preference. Safal and Dhara also go through the same supply chain
before it could reach the retailer to the consumers.
PROMOTION
Mother Dairy has adopted a subtle yet effective marketing strategy. As it is facing
stiff competition from national player Amul, Mother Dairy has moved on to smart
marketing strategy where in it is working on better communication strategies. It is
now coming up with various advertising strategies to gain customer’s mind share.
Recently Mother Dairy has come up with ‘Tweet to Farmer’ campaign where we
thank them for giving us milk. It has roped in a mascotMakhan Singh which is
targeted on the kids for various products like cheese, butter and milk. The mother
Dairy ice creams have also been quite popular becauseof TV commercials. Safal

68. alson takes help of green and environment friendly themes for selling many of its
products. Dhara brand has been on TV commercials from a quiet a long time. It
also has tied up with paytm and UPI for cashless payment at its booths and hence
showing it is technologically updated. Hence, this covers the entire Mother Dairy
marketing mix.