This document provides information about Karnataka Milk Federation (KMF), the second largest cooperative dairy federation in India. It discusses KMF's history and formation in 1955. Key facts are presented, such as KMF having over 2.21 million milk producers and operating in 30 districts of Karnataka. Graphs show growth in membership, milk procurement, sales and turnover from 1976-1977 to 2012-2013. A SWOT analysis and segmentation, targeting, positioning details are also included. The distribution network and major competitors of KMF in Karnataka are outlined.

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By :
Ranganath KN

2. 0 1 2 3 4 5 6
Category 1
Category 2
Category 3
Category 4
Series 3
Series 2
Series 1
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Milk And Its Composition :
Species Water Fat Protein Lactose Ash
Cow 86.6 4.6 3.4 4.9 0.7
Buffaloes 84.2 6.6 3.9 5.2 0.8

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KMF facts :
 In 1955 First Dairy Set Up At Kudige, Kodagu Dist.
 Karnataka Milk Federation Was Setup In 1974
 Second Largest Co-operative Federation In India And First In South India.
 KMF Has Over 2.21 Million Milk Producers In Over 12036 Dairy
 DCS(diary Co-operative Societies)spread Over 166 Taluks Of The Total 175
Taluks In All 30 Districts Of Karnataka
 There Are 13 Milk Unions
 Total Amount Of Milk In Karnataka is And India .

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Growth And Other Statics Of Company :
0 5000000 10000000 15000000
1976-77
2007-08
2011-12
2012-13(feb)
DCS
Membership
Milk Procurement
Milk Sales
Turnover [c]

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Figures And Facts :
Year DCS Membership
Milk
Procurement Milk Sales Turnover [c]
1976-77 416 37000 50000 95050 .1c
2007-08 11063 1956163 3025940 2129790 2707c
2011-12 11568 2151000 4649000 2890000 5823.69c
2012-
13(feb) 12036 2216000 5456000 2994000-------------

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SWOT Analysis :
Strength:
 Strong Brand value and reliability
 Highest market share among the organized brands in packed milk
market segment
 Good infrastructure facility compared to competitors
 Strong distribution of network and better reach
 24x7 service for formers from KMF staff & technical officer
Weakness:
 Perishability.
 Lack of control over yield.
 Logistics of procurement.
 Competition.

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Opportunities:
 Growing industrial and institutional demand for Nandini milk
 Good scope in opening milk parlors at all Taluks and prime location
in the district
 A large market with a good potential for liquid milk
Threats
 High margin paid to retailers by competitors
 Strong door delivery system of loose milk vendors
 Flexibility in trade policy by the competitors

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SEGMENTATION , TARGETING & POSITION :
Segmentation:
Variables are: 1)demographics ,2) psychographics
Product Segmentation :
 Milk: Demographic – 200ml, 500ml, 1000ml, 2000ml.
Psychographics –Toned Milk, Full Cream Milk ,Good Life ,Uht
Milk.
 Fermented : Yoghurt, Real Thick Curd, Butter Milk, Sweet Lassi
 Milk Powder : Dairy Whitener, Skimmed Milk Powder, Badam Milk Mix
 Gee%&butter : Butter Salted & Unsalted, Gee.
 Ice Cream : Many Products .
 Sweets
 Chocolates
 Other Products

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Demographics segmentation

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Psychographics segmentation

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Segmentation Patterns :
Diffused preferences.
Purchases
Products

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Targeting:
Target marketing strategy followed is
Segment by segment invasion plan
Mkt 1 Mkt 2 Mkt 3 Mkt 4
Milk
Fermented
Milk Powder
butter
Ice Cream
Other
 Product specialization stage in milk.
 Now full market coverage.
360o Marketing,

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Position:
The Brand name
“A milk brand trusted by millions “.
“Kshera sagara”
100% aware of nandani products
0
10
20
30
40
50
60
Promotion

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Distribution network of KMF :
Milk from
village
society
Market &
customers
Main dairy
Industry
marketing
channel BMC
Customized
channel

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Continued …..
Industry marketing channel:
 Indirect distribution of one channel.
 Feasibility
 Survey of milching animals population
 Surplus milk
 Milk testing
 Milk procurement
 Transportation

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 Business marketing channel:
Milk distribution network -dairy
Product distribution
network -dairy
ConsumersCaterers
agents parlors Retailer
deport
WC
retailers
 Rivers channel.

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Product Life Cycle :
Time
cost

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Major competitor in Karnataka :
 Hatsun
 Vijaya
 Tejagold
 Ksheera
 Krishna And
 Local Loose Milk Sellers.

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