This study examined issues behind low sales of dairy products from the Delhi Milk Scheme (DMS) in West and South Delhi. A survey of 100 consumers found that while DMS has good quality products, availability is a major issue. Many consumers were unaware of DMS and purchased milk from retailers instead of booths. Those who used DMS were satisfied with quality but felt products lacked variety and availability. To increase sales, the study suggested that DMS improve marketing, supply products to retailers, renovate booths, and ensure a consistent supply of popular products like ghee. Addressing availability and awareness issues could help DMS gain market share.

1. A STUDY ON ISSUES BEHIND LOW SALES OF DMS
DAIRY PRODUCT IN WEST & SOUTH DELHI
INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND-388110
Advisor: Industrial Guide:
Dr. M.R.Prajapati Dr. B.S. Beniwal
(GEN. MANAGER)
Presented By: Ashish Jaint
Reg. No.- 04-2283-2014
1

2. LIST OF CONTENTS
1. DAIRY INDUSTRY IN INDIA
- INTRODUCTION
2 COMPANY PROFILE
3 OBJECTIVES
4 RESEARCH METHODOLOGY
5 RESULT & DISCUSSION
6 CONCLUSION
7 SUGGESTIONS
8 REFRENCES
2

3. DAIRY INDUSTRY IN INDIA
3

4. INTRODUCTION
 India is the worlds largest Milk Producer accounting for about 20% of the
global Milk production and is also the world’s largest consumer base of
dairy products.
 Milk production in India has come a long way over years from a low
volume of 17 million tonnes in 1951 to around 133 million tonnes in
2012-2013 and is the largest producer of milk in the world.
 The annual milk production is 132.4 million metric tones.
 The domestic Dairy Industry is expected to touch milk output of 190
million tones and a turnover of $100 billion by 2015.
 The per Capita Milk availability is 290 grams per day.
4

5. INTRODUCTION
 More than 13 million dairy farmers belong to 96,000 local dairy
cooperatives, who sell their product to one of 177 milk producers'
cooperative unions who in turn are supported by 22 state cooperative.
 India has grown by around 3 million MT per annum till 2007 and requires
growing at 5 million MT per day so as to meet the ambitious target of
around 170 million MT by 2020.
• Growing at about 10 per cent annually, the Indian dairy industry is
predominantly controlled by the unorganized sector which accounts for
nearly 85 per cent.
5

6. PRODUCTION OF MILK AND AVAILABILITY IN INDIA
Year Production(Million Tonnes) Per capita Availability (gms/day)
2001-02 84.4 225
2002-03 86.2 230
2003-04 88.1 231
2004-05 92.5 223
2005-06 97.1 241
2006-07 102.6 251
2007-08 107.9 260
2008-09 112.2 266
2009-10 116.4 273
2010-11 121.8 281
2011-12 127.9 289
2012-13 133 290
Source: NDDB 6

7. COMPANY PROFILE
• Delhi Milk Scheme is a subordinate office of Ministry of Agriculture,
Department of Animal Husbandry, Dairying and Fisheries.
• Its Headquarter and plant are located at shadipur, west Patel nagar, Delhi.
• It was commissioned on Nov 01, 1959 by the then Hon’ble President of India,
Dr.Rajendra Prasad with the primary objective of supplying wholesome milk
to citizens of Delhi at reasonable prices, as well as for providing remunerative
prices to milk producers.
7

8. COMPANY PROFILE
 Delhi Milk Scheme has been mainly procuring raw/fresh milk from the State
Dairy Federations of the neighboring States and some quantity of milk from
the Co-operative Societies to augment the supplies.
 DMS has a network of over 1101 outlets (including All Day Milk Stalls).
 The milk booths are allotted to and manned by Ex-servicemen/ retired Govt.
servants, physically handicapped, widows, unemployed persons.
 The DMS also supplies milk to about 174 institutions such as Hospitals,
Government Canteens, Hostels and Defence Units etc.
 With a number of varieties of dairy products as well as good quality, DMS is
continuously facing loss. Though the deficit came down from Rs.24.15 Crore
in 2009-10 to Rs.8.99 Crore in 2010-11, it increased to Rs.28.26 Crore in
2011-12 due to lesser procurement of raw milk and higher purchase price
paid for Skimmed Milk Powder & raw milk etc. Further, during the financial
year 2012-13 the deficit has come down to Rs.4.66 Crore. It shows a clear
picture of effective efforts done by the former GM, Dr. Beniwal. But still,
DMS is not achieving what it stands for.
8

9. PERFORMANCE OF “DELHI MILK SCHEME”
year Milk sale (lakh litre)
2008-2009 1371.72
2000-2010 1332.77
2011-2012 1123.62
2012-2013
( Upto Dec. 2012)
843.8
Source: Ministry of agriculture, Govt. of India
9

10. OBJECTIVES
• To know the preferences of consumers with respect to dairy
products and dairy Brands.
• To know the factors behind low sales of DMS.
• To know the satisfaction factors of DMS consumers.
10

11. RESEARCH METHODOLOGY
 Source of Data
 Primary data: Primary data were collected from consumers through using
questionnaires.
 Secondary data: were collected from internet, different magazines, newspapers,
journals and annual reports.
 Survey approach: Sample survey
 Sampling Method: Non probability sampling
 Sampling technique: Convenient Sampling
 Sampling unit: consumers were selected purposively who drink milk.
 Sample size: 100 consumers
 Area of survey: West Delhi (50) and South Delhi (50).
 Research instrument: Structured questionnaire
 Analytical Tools: tabular analysis and graphical presentations were used.
 Limitation of the study
• 1. Analysis was purely based on the responses of respondents.
• 2. There was limited time for the collection of data for study.
11

12. RESULT AND DISCUSSION
12

13. BASIC INFORMATION OF CONSUMERS
13

14. AGE OF CONSUMERS
18-25
19%
26-35
24%
36-45
20%
46-55
12%
55 above
25%
18-25
26-35
36-45
46-55
55 above
14

15. FREQUENCY OF DRINKING MILK
Daily
49%
2-3 days
4%
1-2 weeks
4%
Monthly
43%
Daily
2-3 days
1-2 weeks
Monthly
15

16. OBJECTIVE -1
- Preferences of consumers with respect to dairy
products and dairy brands.
16

17. PREFRENCE OF MILK PRODUCTS
17

18. PREFRENCE OF MILK BRAND
18

19. PLACE OF PURCHASING MILK PRODUCTS
19

20. SOURCES OF INFORMATION REGARDING MILK BRANDS
TV
5%
Newspaper
22%
Cinema
2%
Hoardings
6%
Advertisement
39%
Pamphlets
17%
Word of mouth
3%
Any other
6%
TV
Newspaper
Cinema
Hoardings
Advertisement
Pamphlets
Word of mouth
Any other
20

21. FACTORS AFFECTING CHOICE OF MILK BRAND
Taste
21%
Quality
40%
Quantity
6%
Nutritional value
5%
Package
4%
Sales location
Brand image
5%
3%
Price
1%
Availability
15%
Taste
Quality
Brand image
Price
Sales location
Package
Nutritional value
Quantity
Availability
21

22. OBJECTIVE - 2
- Factors behind low sales of DMS dairy products
22

23. BRAND AWARENESS (DMS)
Yes
No 45%
55% Yes
No
23

24. SOURCES FROM WHICH COME TO KNOW ABOUT DMS
24

25. RATINGS TO DMS PRODUCT ( QUALITY)
Very good
9%
Good
62%
Average
13%
Very bad
5%
Bad
11%
Very good
Good
Average
Bad
Very bad
25

26. RATINGS TO DMS PRODUCT ( TASTE)
Very good
2%
Good
5%
Bad
2%
Average
87%
Very bad
4%
Very good
Good
Average
Bad
Very bad
26

27. RATINGS TO DMS PRODUCT( PRICE )
Very good
24%
Good
16%
Average
27%
Bad
24%
Very bad
9%
Very good
Good
Average
Bad
Very bad
27

28. RATINGS TO DMS PRODUCT ( AVAILABILITY ON TIME )
Very good
2%
Good
13%
Average
18%
Very bad
11%
Bad
56%
Very good
Good
Average
Bad
Very bad
28

29. RATINGS TO DMS PRODUCT( BEHAVIOR OF BOOTH HOLDERS)
Very good
4%
Good
20%
Average
51%
Bad
16%
Very bad
9%
Very good
Good
Average
Bad
Very bad
29

30. RATINGS TO DMS PRODUCT (PACKAGING ATTRACTION)
Very good
15%
Good
20%
Average
16%
Very bad
18%
Bad
31%
Very good
Good
Average
Bad
Very bad
30

31. THINK ABOUT DMS PRODUCT ( ACCESSIBILITY )
Very good
27%
Good
18%
Average
6%
Bad
27%
Very bad
22%
Very good
Good
Average
Bad
Very bad
31

32. WHEN DMS INCREASES PRICE
Change in brand
32%
Change in type of
milk
40%
Decrease in
amount of
purchase
24%
Don't do anything
4%
Change in brand
Change in type of milk
Decrease in amount of purchase
Don't do anything
32

33. SATISFIED WITH DMS PRODUCTS
Yes
89%
No
11%
Yes
No
33

34. FACTORS FOR SHIFTING TO ANOTHER DAIRY BRAND
Available at distant
market
31%
Non affordable
8%
Taste is not good
8%
Shorter shelf life
38%
Not matching
quality
expectations
15%
Available at distant market
Non affordable
Taste is not good
Not matching quality
expectations
Shorter shelf life
34

35. REASONS FOR NOT USING DMS PRODUCTS
Not accessible
40%
High price
13%
Not fresh
1%
Not good for
children
2%
Low quality
9%
Not natural
6%
Adulterated
No door delivery
Spoiled
2%
7%
9%
Non availability
11%
Not accessible
High price
Not fresh
Spoiled
No door delivery
Adulterated
Not natural
Low quality
Not good for children
Non availability
35

36. OBJECTIVE - 3
- Satisfaction factors of DMS consumers
36

37. REASONS OF SATISFACTION
good for health
26%
Fat content
27%
Brand image
Good quality
22%
12%
Taste
8%
Price
2%
Packaging
3%
good for health
Fat content
Good quality
Brand image
Taste
Price
Packaging
37

38. WHEN GO FOR PURCHASING DMS PRODUCTS
Reliable price
13%
Good quality
57%
Easy availability
13%
Good taste
15%
Any other
2%
Reliable price
Good quality
Easy availability
Good taste
Any other
38

39. CONCLUSION
• AMUL and mother dairy are leading brands in this region following that is DMS.
Only few consumers go for purchasing loose milk or any other brand. It is also
observed that half of the consumers purchase milk products from retailer shop,
following that is from booths.
• It is observed, that most of the consumers know about DMS and they get to know
about DMS from their friends or relatives and word of mouth. Most of the
consumers get information regarding other milk product through advertisement.
• It is observed that DMS stands good in term of its product’s quality and taste.
• Availability of DMS products is a major issue, because products are not easily
available to consumers.
• During the study, it is observed that most of the consumers don’t respond to price
increase of DMS, they go on purchasing it’s products, whereas some of them
change the type of milk they purchase. It shows their loyalty towards DMS.
39

40. CONCLUSION
 It is observed, that those who are not using DMS’s products are unaware about
DMS. DMS’s products are not accessible to them and are not easily available.
These consumers will go for DMS if products are easily available and at a
reliable price.
 From the personal interview of booth holders, it is observed that booth holders
are satisfied with DMS and they are very much interested in distribution of
DMS products. Though, the margin they are getting is low as compared to
other dairy brands.
 Ghee is demanded by most of the consumers, following that is toned milk and
sweet dahi. It is observed, that all products are not available on DMS’s booths.
 It is also observed that those who are loyal to DMS, they wait for the
availability of product rather than shifting towards another milk brand.
40

41. SUGGESTIONS
• DMS is advised to think upon its marketing strategies because DMS is not
known to many consumers in this region. A strong marketing strategy is
required to aware the consumers about DMS and its products.
• Ghee is the most demanded product of DMS among the consumers but it is
not available to the consumers, because of short supply. DMS should make
it available to the booths twice in a day to avoid non-availability to the
consumers and increase sales.
• As it is observed, that most of the consumers are purchasing milk products
from retailer’s shop, DMS should supply its products to retailers also. The
results can be positive and can increase DMS’s market share.
41

42. SUGGESTIONS
• It is suggested to renovate the booths because their condition is pathetic. It
is advised to make the booths hygienic.
• There should be a list of DMS’s products and the name of DMS is written
properly on the booths.
• Moreover, the quality and taste of DMS are leading above all milk brands
in west and south Delhi. The required thing is to make it available to the
citizens of Delhi and grab the market share from other competitive brands.
42

43. REFERENCES
• Department of Animal Husbandry Annual Report 2013-2014, Dairying &
Fisheries; Ministry of Agriculture, Government of India, New Delhi. pp-
41-54
• Dhanabalan. M. (2009), “Productive Efficiency of Milk Production In
Tamil Nadu”, Indian Journal of Marketing, Volume XXXIX, Number 12,
P-21.
• K.G. and Banerjee G.D. (2006), “Opportunities and Challenges in The
Indian Dairy Industry”, Technological Change, Issue 9, Pp.24-26
• Kumar Rajeev and Prabhakar Raj, opportunities and challenges in indian
dairy industry supply chain: a literature review, Volume 2, Number 4,
October – December’ 2013
• Mandeep Singh and Joshi.A.S.(2008), “Economic Analysis of Crop
Production and Dairy Farming on Marginal and Small Farms in
Punjab” Agricultural Economics Research Review, Vol. 21, Issue: 2, P-
30.
43

44. REFERENCES
• Radha Krishnan, Nigam.S. and Shantanu Kumar (2008), “Contribution of
livestock in Indian Scenario”, Agricultural Situation in India, Issue 1, April,
Pp. 25-28.
• Waghmare P.R. and Hedgire D.N. (2007), “Econometric analysis of
integrated dairy development Programme in Parbhani District”, Agricultural
Situation in India, Issue 3, Pp. 97-101.
• http://www.dairyuniverseindia.com/Marketdate.html (Accessed on
17/8/2014)
44

45. THANK YOU!!
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