Nova Sterling Limited

A PROJECT REPORT
ON
“MARKET ANALYSIS: SALES DEVELOPMENT”
AT
STERLING AGRO INDUSTRIES LIMITED
Submitted to
Jiwaji University
Gwalior
For the partial fulfillment of the award of Master of Business Administration
2016-2018
Submitted By
Ojas Maheshwari

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Declaration
I hereby declare that the training report entitled, “Market Analysis: Sales Development” submitted by
me to Prestige Institute of Management, Gwalior in fulfillment of the requirement for the award of
Masters of Business Administration is a record of my original work carried out by me under the guidance
of Dr. Chanda Gulati I, further declare that the work reported in this report has not been submitted, and
will not be submitted, either in part or in full, for the award of any other degree or diploma of this University
or to any other institute or university.
Date:
Place:
Signature of the candidate
Ojas Maheshwari

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CERTIFICATE
This is to certify that Mr./ MS. Student of MBA program has completed his summer training of 6
Weeks from 20-07-2017 to 02-09-2017 and prepared this report entitled Market Analysis: Sales
Development under my guidance.
His performance during the training was excellent.
Date:
Dr. Chanda Gulati
Asst.Proff (HR & Marketing)

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CERTIFICATE OF TRAINING
(This Certificate is to be obtained on the official letter Head of the Organization )
(PERFORM N0. 04)
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. / Ms. …………………………………………….. a student of MBA/ BBA/
B.Com from Prestige Institute of Management, Gwalior has undergone training in our organization from
……………………… to ………………………. . The topic of the project was
………………………………………………………………………………………………………………
…………………………………………….. .
His/ Her performance during the training was excellent. We wish him/her in his/her future endeavors
Date:
Place:

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ACKNOWLEDGEMENT
We would like to take this opportunity to express our extreme gratitude towards our faculty guide
Dr.Chanda Gulati (Assistant Professor), for his invaluable guidance, advice and support
throughout the training. We would like to express our sincere thanks to Nova Officers, Mr. Aditya
Shukla ,Mr. Vinay Agarwal & Mr. Abhishek Pandey for giving us this opportunity to undertake
this Training. We are very indebted to our Director, Dr. S.S.Bhakar who extended all supports
required at institution level. Last but not the least: thanking them again for their encouragement
and moral support.

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Table of Contents
Chapter I: History, Objectives & Organizational Structure...........................................................................1
1.1 History.................................................................................................................................................2
1.1.1 History of Dairy Industry.......................................................................................................2
1.1.2 History of Organisation.........................................................................................................2
1.2 Organizational Structure...........................................................................................................4
1.2.1 Objective of the Company ....................................................................................................5
Chapter II: Financial Performance, Personnel, Productions.........................................................................6
2.1 Financial Performance ........................................................................................................................7
2.2 Personnel: ...........................................................................................................................................8
2.2.1 Recruitment .................................................................................................................................8
2.2.2 Training & development ..............................................................................................................9
2.2.3 Productions & Packaging ...........................................................................................................11
2.4 Marketing......................................................................................................................................20
Chapter III: SWOT Analysis of Dairy Industry..............................................................................................23
Chapter IV: Sales Development Concept, Application & Implication.........................................................25
4.0 Sales Development ...........................................................................................................................26
Chapter V: Conclusion.................................................................................................................................28
5.0 Conclusion.........................................................................................................................................29

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Chapter I: History, Objectives & Organizational Structure

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1.1 History
1.1.1 History of Dairy Industry
The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producer of milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the country. During
1997- 98, the states (delhi-haryana-uttar pradesh)had 17574 millon tones production capacity
which rose to 29719 millon tone by the year 2012 in addition to many processing plant.
Many government co-operative societies and chilling centers have been made.
In India, the dairy sector plays an important role in the country's social-economic development
and constitutes an the important segment of the rural economic. Dairy industry provides
livelihood to millions of homes in village, assuring supply of the quality of milk and milk
products to both urban and rural areas. With view to keeping pace with the country’s increasing
demand of the milk and milk products, the industry has being growing rapidly.
According to research ‘Indian Dairy Analysis” India is world’s largest milk produces accounting
of the around l 7% of the global milk production. Besides, India is also one of the largest
consumers of milk and milk products. Due to rich nutrition qualities, the consumption of dairy
product has being growing exponentially in the country, and considering such facts and figures,
study anticipates that the milk production in the will grow at a CAGR of around 5% during 2012
to 2016.
1.1.2 History of Organisation
Sterling Agro Industries was set up in 1991,and acquired by the current management in
1994.Sterling currently has a capacity of 2.4 million litres per day of milk, making it one

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of the largest players in the private sector in India. Sterling is promoted by Mr. Kuldeep Saluja
and Mr. Laxmi Narain Kesarwani. The company was launched in the year 1994 with a
turnover or INR l 8mn (USD 0.42 mn).Before starting its first plant in 1994, at Kundli
(Haryana), the promoters were involved in procuring dairy products from other manufacturers
and then distributing the same through a wide chain of distributors and dealers spread all
over the country.The company has grown by leaps and bounds, with its turnover reaching a
record high lNR 7 ,050 mn (USO l 63.80mn) by 2007-08,thereby registering a very impressive
compounded annual growth of 23 percent from 2003-08. Sterling mostly markets its products
under the brand name "Nova", a well-respected name in dairy products, in India. Sterling has
consistently extended its portfolio of products in keeping with the changing trends in the
market.The company is owned and managed by promoters having over 35 years or experience
in the field of dairy products. The company currently produces Skimmed Milk Powder.
Instant Skimmed, Milk Powder , Partially Skimmed Milk Powder, Full Cream Milk Powder.
Instant Full Cream Milk Butter Milk Filled Powder. Powder. Instant Fat Powder, Dairy
Creamers. Dairy Whitener, all kinds of Blended Milk Powders. Ghee (milk fat). White Butter,
and Butter Oil /AMF. The company has a strong procurement network, extending to 150,000
Farmers across 120 Chilling Centres The company has an extensive pan India network of
distributors and is also exporting to 33 countries. Sterling Agro has a considerable both in
the bulk with a presence and consumer markets network of over 1,000 dealers/distributors and
more than 18,000 retailers spread all over India. Expansion of capacity

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1.2 Organizational Structure
Board of
Directors
Managing
Director
Managing
Director
Production
Manager
Asst.
Manager(diary
Plant)
Personnel
Manager
Asst. Manager
(P& A)
Marketing
Manager
Finance
Manager
Asst. Manager
(finance)

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1.2.1 Objective of the Company
 The fundamental objective of every enterprise is to grow & serve a larger customer base
better. Since our inception, all our strides have been growth oriented.
 We believe that one of the most important measures of our success is profitability. Profit
allow us the strengthen & enhance the dairy products industry to support the rural dairy
farmer, to consolidate the capital required for growth and to validate our beliefs &
practices.
 Our objective is the perceptually seek opportunities for the growth so that we can make
unique & valuable contribution to the society & environment.
 To offer excellent high quality products thereby fulfilling customer expectations, with our
superior & technical expertise.
 Keep surpassing our own goals, keeping our values intact.
 Expand our business without putting a strain on our environment & without compromising
on our ethics.
 Learn from the past, appreciate the present & work for the future.

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Chapter II: Financial Performance, Personnel, Productions
&
Marketing

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2.1 Financial Performance
Sterling Agro has flourished under the able leadership of Mr. Kuldeep Saluja (Managing Director)
and Mr. Laxmi Narain Kesarwani (Chairman) who have more than 30 years of experience and
expertise to their credit in the field of dairy products. The company was launched in the year 1991
with a turnover of 1.8 Crores. Gradually, the company grew by leaps and bounds reaching a record
high Rs. 714 Crores by 2008-09, thereby registering a very impressive compounded annual growth
of 37 percent. The total paid-up capital is INR 37.17 cr. The company also has secured loans in
the amount of 822.70 cr.
The last reported AGM (Annual General Meeting) of the company, per our records, was held on
30 September, 2016. Also, as per our records, its last balance sheet was prepared for the period
ending on 31 March, 2016.
 AUTHORISED CAPITAL- INR 10000.0 Lacs
 PAIDUP CAPITAL- INR 3716.77 Lacs
 INDUSTRY- Agriculture and Allied Activities
 TYPE- Unlisted Public Company
 CATEGORY- Company limited by Shares
The primary purpose of financial department is to monitor & report on financial positions of the
mother dairy & to provide an excellent level of service to their public customers & customers in
other City Departments. It can be acquired through various sources. After the acquisition of
finance, the work of Utilization of finance is to be decided. The finance department has to deal
with not only the procurement of the finance but also with the proper utilization of it. Finance is
the basic requirement for the purchase of assets, production of goods, marketing, selling etc. The
finance department takes the decision regarding financial matters. Thus we can say that financial
department is one of the most important department.

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Main Areas Covered by Financial Department in Dairy
 Book keeping procedures
 Maintaining Balance Sheet & Profit Loss Account.
 Providing Information to Management.
 Management of Wages & Salary.
 Raising Funds
 Cost Allocations.
2.2 Personnel:
2.2.1 Recruitment
Recruitment is the process of searching for prospective employees & stimulating them to apply for
thye job in the organization. Recruitment of an employee is done on the basis of “Human Resource
Planning” carried by Nova Dairy Management. At Nova Dairy recruitment is done through both
sources i.e Internal as well as external sources.
 Internal-Recruitment employees internally like promotion, transfers, etc.
 External-Recruitment employees from Job Portals, Employment Exchange , Campus
Interview,Advertisements.Dairy uses External Source of recruitment mostly.
Recruitment
Internal External

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2.2.2 Training & development
Dairy scenario is no different with the fact that India is the number one in the milk production in
the world with almost negligible share in the international trade on account of stiff competition in
the market – domestic and international. Looking at the statistics, India’s production of
approximately 132.47 MT in the year 2012-13 is around more than 17% of the world milk
production (World Milk Production for the year 2012: 760 MT). With further anticipated growth
in the milk production at the rate more than 4% and the fact that a substantiate number of
experienced professionals at various level will retire or superannuate in the next few years, it is
high time and prudent to have a well thought out plan for the industry on training and development.
In view of this a Training Need Assessment exercise was undertaken by the Western Region of
the Dairy Board with following objectives:
To understand the training, learning and educational needs and to identify performance
requirements and the Knowledge-Skill-Ability (KSA)
To design and implement learning and development programs that are aligned to build people
capability
The immediate benefits can be seen briefly as under:
Training & Development (T&D) being heart of a continuous HRM efforts, it helps design to
improve employee competency, morale and thereby organizational performance.
Appropriate Training and the Development activities provides learner with the knowledge and
skills, both current and future, needed for their present jobs and beyond.
Help meet social obligations through systems resulting in improvement in quality, reduction in
losses, reduction in energy conservation, reduction in pollution, enhancement of product
safety..etc.

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Training Need Assessment and the ultimate outcomes envisaged
It is abundantly clear that implementation of the activities aligned with the objectives on Training
& Development would result critically into available adequate numbers of quality human resources
that would assume the responsibilities to deliver following key-outcomes:
Meeting milk demand through domestic production that is economically efficient and
internationally competitive.
Ensuring livelihood opportunities through an inclusive approach so that milk producers including
the poor and marginal gain access to market on terms that are fair and earn a steady flow of cash.
Ensure efficiency in milk processing to provide milk and milk products of international quality in
conjunction with food-safety at competitive rates
Help organization carry out balance in economic, environmental and social imperatives through
implementation of various management systems which include ISO 9001. ISO 22000, ISO 14001,
ISO 50001, OHSAS 18001.
Quality Policy
The philosophy of Sterling Agro concentrates on the implementation of a well-structured Quality
Policy. Our Quality Policy is to provide our customers with dairy products, which are safe,
produced under stringent hygienic procedures and which comply in all respects with customer
specifications and all international legal requirements. Each member of the staff working in
production, packaging, storage and distribution are thoroughly trained in food hygiene standards.
Managers, supervisors and operators receive full training to carry out quality tests at regular
intervals. We keep our dairy animals healthy and free of infections. Our success hinges on our
capacity to serve those who buy our products. We continually strive to institute a climate of
confidence, credibility, and satisfaction with our customers by providing the highest-quality dairy
products which cultivates repeat business.

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Safety Policy
The safety of our dairy products is assured through regular reviews and quality control in
accordance with the Prevention of Food Adulteration Act of India. Sterling Agro does not employ
artificial means of production or use synthetics in producing any of its products. Priority is given
to identification and taking corrective actions for perceivable risks with the aim of preventing
accidents and production safety. Apart from this, our products are checked for bacteriological tests
such as standard plate count, coliform and bacterial spore counts, chemical tests such as tests for
fat%, SNF%, protein and ash and tests for adulterants such as preservatives, neutralizer and urea.
Environmental Policy
We, at Sterling Agro, are fully aware of the importance of a safe and healthy environment and our
Environmental policy ensures that products are manufactured in harmony with nature. Some of
the initiatives to ensure the same have been installation of a Windmill in Maharashtra for pollution
free electricity and a water RO plant which treats all waster water produced at our Malanpur Plant.
2.2.3 Productions & Packaging
2.2.3.1Product Offered
Product Line
•MILK
•Ghee
•Dairy Whitner/Creamer
•Skimmed Milk Powder
•Butter
•Butter Milk Powder
•Butter OIl/AMF
•Paneer
•Dahi
•Lassi & Chach
•Flavoured Milk

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Milk
Nova liquid milk is the latest addition to our family of quality products. Like all our offerings,
every drop of Nova Milk is fortified with the goodness of taste and the wellness of health. Nova
Milk packs a healthy punch with protein, calcium, riboflavin, folate, essential vitamins & minerals.
Sourced right from the farmers, Nova Milk is pasteurised at our state-of-the-art processing plant
at Kasganj, Uttar Pradesh, and hygienically packed, making it the first choice of thousands of
Indian consumers.
Nova Milk comes in 3 variants – full cream, toned and double toned.
GHEE
Ghee is a Sanskrit word for a clarified butter used primarily in the Indian cuisine. Because the
preparation of ghee involves heat, it has a distinctive toasted flavour, often described as nutty and
is widely used in Indian kitchens. It is traditionally prepared by gently heating butter until it
becomes a clear golden liquid. The lactose and other milk solids coagulate and are meticulously
removed. This process also evaporates most of the natural water content, making ghee light, pure
and resistant to spoilage.
Packaging Available
NOVA Desi Ghee is available in various sizes of packaging, listed as follows -

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 200ml. packing available in Cikka Pack (also knows as Metallised Carton) and Jar.
 1/2 Litre packing available in Cikka Pack, Jar, Pouch and Tin
 1 litre packing available in Cikka Pack, Jar, Pouch and Tin
 litre packing available in Jar & Tin
 5 litre packing available in Jar & Tin
 15 Kg packing available in Jar & Tin
 210 Kg packing available in Drums
Besides this, for bulk orders, the product can be packed in different sizes of packaging.
Butter
Sterling Agro is a bulk supplier of Butter to its esteemed institutional clients, such as Britannia,
ITC, Cadbury, Mother Dairy, to a name a few. Besides this, butter is also exported to various
companies across the world.
Product
 White Butter (Unsalted with Minimum 82% Milk Fat)
 Yellow Butter (Salted with Minimum 80% Milk Fat)
Packaging Available
 Bulk packing in cartons of weight 15 kg to 25 kg.

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 Consumer packing of weight 100gms(15 pieces in 1 carton),500gms(30 pieces in 1 carton)
and 500gms institutional pack(40 pieces in 1 carton).
Dairy Whitener / Dairy Creamer
Nova Dairy Whitener is a creamy Dairy Whitener specially made to add a rich, smooth taste to
your tea or coffee. The product specification is as follows :-
Fat - 20%
Sugar - 18%
SNF – 59%
Packaging Availaible
 Nova Dairy Whitener – 500gm Tin, 10kg Tin and 500 gm Laminate pouch.
 This product can also be packed in different sizes according to buyers’ needs &
specification.
Dairy Creamers
Sterling Agro markets Dairy Creamers under the brand names of “Nova Dairy Rich”, “Nova Milk
Mix”, “Nova Dairy Mix” and “Nova Dairy Creamer”. These are proprietary foods with lower FAT

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content and are ideal for a low fat tea or coffee. “A-One Dairy Creamer” is another brand name
with a different recipe being marketed in selected areas.
Dairy Creamers We would like our consumers to know that, in comparison to the 25gm Dairy Mix
Creamer, most of the similar products available in the market today provide only 20gm of the same
product at the same MRP.
Packaging Available
 Nova Dairy Rich – 10kg and 5kg Jar.
 Nova Milk Mix – 200gm Jar, 500gm Jar and 1 Kg Laminate pouch.
 Nova Dairy Mix – 25gm, 50gm and 100 gm Laminate pouches.
 Nova Dairy Creamer – 5gm Laminate pouch, specially designed for catering industry.
 A-One Dairy Creamer – 200gm Jar, 500gm Jar, 10 Kg Jar, 25gm, ½ Kg and 1Kg Laminate
pouches.
Skimmed Milk Powder
Nova Gold & SuperUnder the consumer category, Sterling Agro manufactures high quality
Skimmed Milk Powder (SMP) in 3 variants –
 Nova Gold - Rich in Protein, Low Cholesterol; available in ½ Kg Laminate packaging.

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 Nova Super – Especially for Khoya and Chhenna; available in 1 Kg Laminate
packaging.
 Nova Special – SMP Standard Grade with Natural Taste and Goodness; 1 Kg in Poly
pouch packaging.
All of the above confirm to BIS grade, IS:13334 (Part 1):1998 and are readily soluble in
lukewarm water.
Skimmed Milk Besides the above, we also manufacture SMP for the domestic and international
bulk consumer such as bakery, confectionary and other dairy companies. Few of our esteemed
clients (India and Overseas) include GlaxoSmithKline, Nestle, Cadbury and Unilever. Under
the bulk SMP section, the product categories include –
 Regular Skimmed Milk Powder (ADPI Extra Grade / ADPI Standard Grade)
 SMP - Medium Heat (for products like condensed milk and ice cream)
 SMP - Low Heat (for products like cheese and yoghurts)
 Instant Skimmed Milk Powder
 Partially Skimmed Milk Powder
Nova Premium Bulk Packaging Available
 For Domestic Market – Paper coated HDPE woven sack with separate heat sealed inner
poly liner.
 For International Market – Multi-wall Kraft paper bag with separate heat sealed inner
poly liner, sea worthy bags.
This product can also be packed in different sizes according to buyers’ needs & specification.
Full Cream Milk Powder/WMP

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Full Cream Milk Powder Sterling Agro manufactures Full Cream Milk Powder (FCMP) /
WMP for the domestic as well as the international bulk markets. WMP (for the domestic
market) is manufactured as per BIS grade (IS:1165:2002) and FCMP (for the international as
well as domestic market) is manufactured as per APDI Extra Grade.
Product
WMP
 Regular WMP (BIS grade)
 Instant WMP (BIS grade)
FCMP
 Regular FCMP (ADPI Extra Grade)
 Instant FCMP (ADPI Extra Grade)
Bulk Packaging Available
 For Domestic Market – 25 Kg, Paper coated HDPE woven sack with separate heat
sealed inner poly liner.
 For International Market – 25 Kg, Multi-wall Kraft paper bag with separate heat sealed
inner poly liner, sea worthy bags.
Butter Oil / AMF
Butter Oil / AMFAMF stands for Anhydrous Milk Fat and AMF or Butter Oil consist of more
or less pure milk fat. Sterling Agro has been an exporter of Butter Oil / AMF and possesses
the requisite facilities for manufacturing the same.

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Packaging Available
 Butter Oil / AMF are available in 210 Kg Drums as well as in 15 Kg tins.
The product can also be packed in different sizes according to the buyers’ needs &
specifications.
Nova Paneer
Paneer is a fresh cheese common in South Asian cuisine. It is an un-aged, non-melting curd
cheese made by curdling heated milk with lemon juice, vinegar, or any other food acids. Its
crumbly and moist form is called cottage cheese or chhena in eastern India. It is used for years
to make variety of nutritious foods.
NOVA Paneer has a very attractive look of white color, good taste and very famous amongst
all the milk products. It is ready to eat and delicious hot or cold. Nova Paneer is a rich source
of calcium, phosphorus, vitamins, minerals and protein which are required by the body in high
proportions for healthy growth and development.
Packaging Available
 NOVA Fresh Paneer - 200g and 1kg vacuum seal pouch.
 NOVA Zeera Paneer - 200g vacuum seal pouch.
 NOVA Low Fat Paneer - 200g and 1 kg vacuum seal pouch
Nova Dahi / Nova Yoghurt
Nova Dahi / Nova YoghurtThe word Dahi is derived from the Sanskrit word dadhi, one of the
five elixirs, or panchamrita, often used in Hindu ritual. Dahi also holds cultural symbolism in
many homes. Fermented dairy products have long been an important component of nutritional
diet. The modern microbiological processes have resulted in the production of different

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fermented milk products of higher nutritional value under controlled conditions. These
products represent an important component of functional foods.
Nova Dahi is a healthy food made by adding a starter culture to pasteurized & standardized
milk. To keep the bacteria alive, keep yogurt refrigerated and eat it soon after the container is
opened.
Intense research efforts are under way at Nova to develop dairy products into which pNova
Dahi / Nova Yoghurtrobiotic organisms can be incorporated to make them more valuable while
at the same more benefits can be derived by the consumers through their regular intake.
Nova Dahi / Nova Yoghurt NOVA Dahi Packaging Available
 Nova Cup Packing - 90/100g and 200g.
 Nova Pouch packing - 200g, 400g and 500g.
 Nova Matka Jar Packing - 500g, 1kg, 2kg, 5kg and 15kg.
Nova Lassi/ Nova Chach
Nova Lassi/ Nova ChachNova Lassi is a popular, traditional, curd -based drink. Nova Lassi is
a blend of curd, water, sugar or salt & spices. Traditional lassi ( "salted lassi", or simply,
"lassi") is a savoury drink, sometimes flavoured with ground and roasted cumin. Sweet Nova
lassi, however, contains sugar or fruits, instead of spices.
Nova Chach is a popular drink in India, known to aid digestion and is excellent refreshment in
the scorching Indian summers. NOVA produces chach by using Nova Dahi which is made by
adding a starter culture to pasteurized & standardized milk. Freshly made chaas is filled with
countless numbers of beneficial probiotics that help digestion and kill harmful viruses. To gain
the benefits of chach, choose NOVA chach that contains live active cultures. People taking
antibiotics (which can destroy healthy bacteria in the body) are often advised to eat yogurt or

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drink chach to replace the healthy bacteria. Flavoring ingredients such as asafoetida, coriander
leaves, ginger, curry leaves and sea salt are mixed with chach to enhance its digestion-aiding
properties.
Nova Lassi/ Nova ChachPackaging Available
 Nova Chach - 200ml & 500ml pouch
 Nova Lassi - 200ml & 500 ml pouch
Flavoured Milk
NOVA Flavored Milk offers a fresh experience, with no artificial flavors, colors or
preservatives, the drink is a unique combination of great taste and nutrition. The benefits of
milk have been made available in a sterilized bottle form which the kids would love. As the
most popular milk choice in schools, flavored milk is a highly palatable, nourishing beverage
that can help children to meet current daily dairy food and calcium intake recommendations.
Flavored Milk comes in 6 variants – Elaichi, Chocolate,Butter Scotch,Kesar,Coffee and Rose.
2.4 Marketing

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2.4.1 Areas of Operation
Sterling Agro popularly known as NOVA in India Setup their plant in Uttar Pradesh, Madhya
Pradesh & Haryana, to cover whole india as well as exporting their Milk products to various
countries.
Marketing Mix: 5P’s
Place: These places are strategically chosen to deliver milk products to 29 states of India as
well as to fed up their products to their strong Network of 18000 Retailers & more.
Price: Pricing strategy of the Nova Milk Products as compared to competitors is always on
lower side.
Promotion: Promotion is done on the basis of Pricing, Quality & Product Line, B2B, B2C
Selling, Advertisement.

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People: They take care of their retailers & employees by giving more commission on the
product as compared to other Competitors Milk Product.
Product: Product Standards as per the norms i.e. also equivalent to market leaders & broad
product line. EX: - Butter lowest cost pack comes in Rs.5 where as Amul has lowest Cost
Butter Pack comes in Rs.10.
Competitors are: -
o Gujarat Cooperative Milk Marketing Federation Ltd.
o Mother Dairy Foods Processing Ltd.
o Paras Dairy
o MilkFed (Verka)
o Nestle India Ltd.
o Heritage Foods India Limited
o Hatsun Agro Product Ltd

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Chapter III: SWOT Analysis of Dairy Industry

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Strength
 Demand profile: Absolutely
optimistic.
 Margins: Quite reasonable, even on
packed liquid milk.
 Flexibility of product mix:
Tremendous. With balancing
equipment, you can keep on adding
to your product line.
 Availability of raw material:
Abundant. Presently, more than 80
per cent of milk produced is flowing
into the unorganized sector, which
requires proper channelization.
 Technical manpower:
Professionally-trained, technical
human resource pool,built over last
30 years.
Weakness
 Perishability: Pasteurization has overcome
this weakness partially
 Lack of control over yield: Theoretically,
there is little control over milk yield.
 Competition: With so many newcomers
entering this industry, competition is
becoming tougher day by day. But then
competition has to be faced as a ground
reality. The market is large enough for
many to carve out their niche.
 Poor raw milk quality
Opportunities
 Large market and investment
opportunity
 Untapped indigenous milk products
mark
Weakness
 Food safety
 Unhygienic practices by farmers at farm
 Uncontrolled use of antibiotics and
medicines on milch animals

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Chapter IV: Sales Development Concept

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4.0 Sales Development
The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role because
purchasing power is depend upon availability of that product, in case distributors and retailers
service matter a lot. Retailing includes all the activity in selling goods or service directly to the
customers or personal nonbusiness use. A retailer or retail store is any business enterprises
whose sales volume comes primarily from retailing. Retailers are the part of milk marketing
channels and perform the work of moving goods from producers to the customers. It overcomes
the time, place and possession gap that separates goods and service from those who needs or
wants them.
Retailers as member of marketing channel perform a number of key functions. Some functions
(physical, title, promotion) constitute a forward flow of activity from the company to the
customers; other functions (ordering and payment) constitute a backward flow from customers
to the company. Still others (information, negotiation, finance and risk taking) in both
directions. The project explores into the workings from the distribution aspect of an FMCG
organization, in detail. NOVA, being an FMCG company, attaches a lot of significance to the
distribution aspect of its business.
The distribution channel of NOVA holds a lot of potential in affecting the demand or sales of
NOVA Milk products through delivery on time, delivery of variety of products, the retailer
friendliness of the policies being set by the distributors and equitable distribution of products
to all the retail outlets in a particular region, to name a few. So, In order to plan retail coverage
we map out the positions of Nova outlets and competitor’s outlets.

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Work Flow Diagram
SWOT of Dairy
Industry
Analyzing Retailers
Perception &
Requirement
Demand
Marketing &
Promotional
Strategy
Ground Work(Client
Acquisition)
Timely Delivery
,Availaibilty of
Product &
Distribution)

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5.0 Conclusion
A better Marketing Strategy (promotional strategy) will surely be helpful in solving the problem
faced by organization i.e. about brand value & its customer’s perception towards its Nova Sterling
Milk products as compared to the other competitors like Amul. As the study is totally based on
Gwalior region, sometimes timely delivery of the product is also questionable but can be resolved
by improving Distribution side delay. This would definitely improve the sales & gradually will be
positioned equivalent to other competitors, as Indian Diary Industry will see cream run according
to report by CRISIL published on dec21,2015.Apart of this Post GST there is decrease in tax about
2.5% on Milk Products in Southern India that can be grabbed as an opportunity to promote their
product.

30
BIBLOGRAPHY
1. http://www.thehindubusinessline.com/economy/agri-business/indias-milk-processing-
capacity-set-to-jump-by-2018-crisil/article8014130.ece
2. https://www.planetexim.net/product-data/india-exporter/spray-powder.aspx
3. http://www.steragro.com/index.html
4. http://www.indiadairy.com/ind_swot.html

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