Mother Dairy Case Study

MOTHER DAIRY HISTORY OF MOTHER DAIRY

It was set up in 1978 under, Operation Flood-I‟ scheme of Govt. of India. Today Mother Dairy Kolkata is a household name and the Dairy is a premier dairy player in the state of West Bengal that has completed 33 years of dedicated service by serving innumerable small and marginal village milk producers and a wide cross-section of urban consumers. It safeguard the interest of rural milk producers by encouraging cooperative movement and marketing surplus milk available from villages thus helping milk producers to realize their own potential through organized endeavour and creation of more rural wealth. It is set up on 27 acres of land at village Kuasaigachi on Kolkata-Delhi national highway no.6 in an eco-friendly

The brand has bulk vending booths and mobile booths which adds to its competitive advantage. Mother Dairy is predominantly located in north and west of India. It is only recently that the brand has expanded to the south as well. Mother Diary is aiming at reaching top notch in ice-cream sales in the next five years. Dairy products have short shelf life hence it is more appropriate to procure local production and processing units to ensure quality and freshness of products.

PRICING STRATEGY

Mother Dairy should assume a low price strategy to make their products more affordable to all classes of people. However, in comparison to its competitors, the price is lower. There is a large opportunity for Mother dairy to reposition its brand strategy through price strategy. Nevertheless, pricing strategy should also keep in mind that low pricing should not compromise quality of the products which consumers have a trust on. Further, low price will not sustain competitive advantage. It can promote business for a short-term during which the company has to look for other brand strategies.

In the ice cream business, where Mother Dairy trails market leader Amul and Kwality Walls, its advertising and promotions budget will double. Amul, which is the market leader with 38% market share, Kwality has an 16% market share and Mother Dairy has about 8%.Mother Dairy expects new markets to drive up sales of its ice cream by 41% this year, compared to 25% growth last year. Set up in 1974 to provide marketing and retail operations for the National Dairy Development Board, which developed India’s milk cooperative movement, Mother Dairy has sales of Rs2,200 crore. More than half of such sales comes from milk sales. It also sells vegetables, oil, ice cream and yoghurt. The company intends to have up to 4,000 outlets selling its ice creams in Mumbai by year end from around 2,000 now. But extending its distribution network could be the hardest part, analysts said. Gaining a foothold in Mumbai and Kolkata will also reduce the seasonality of its ice cream business. Nationally, 45% of all ice cream sales take place in March, April and