The document summarizes findings from a retail trade study on dairy products conducted among retailers in Delhi. It found that Mother Dairy was the most stocked and highest selling brand due to perceptions of quality, taste and popularity. While Paras had higher margins, some retailers mentioned quality issues with Paras milk. Retailers perceived little difference between consumers of different brands. Most wanted companies to offer better schemes and margins to help increase sales.

1. Dairy Products Findings of Survey

2. BACKGROUND A long standing brand in the dairy products market (40 years plus history) Product range includes a variety of Dairy products (dahi, paneer, ghee, lassi, skimmed milk powder, instant dairy mix); as well as Non dairy products (nimbu pani and mineral water) Two key advantages over Mother Dairy (the market leader) Fresher overall quality and taste since it is not reconstituted Bactofugation leading to higher shelf life and purer quality Currently 10% to 15% share in Delhi’s 50 LLPD packaged liquid milk market Despite allocation of considerable resources, sales not showing commensurate growth Therefore, need felt to understand profile, usage and attitudes of milk users

3. RESEARCH OBJECTIVES To understand behaviour and attitudes of liquid milk users in general and Paras milk users in particular To determine the extent of the influence of consumer pull vs trade push in case of Paras To assess extent of satisfaction with service provided by Paras to its milk study retailers Information from consumers and retailers to be used to develop a strategy to enhance acceptability of Paras milk

4. METHODOLOGY Study involved three modules Module 1 : Quantitative market definition study among consumers & study Module 2 : Shop observation and quantitative study among retailers Module 3 : Qualitative study among Paras consumers This document presents findings from the Module 2

5. METHODOLOGY Observation cum Retail Trade Study Observation study conducted to assess pre-sold and unsold customers Interviewers stationed at outlets located in areas where Paras sells Outlets covered during peak milk selling times Number of customers & number pre-sold/unsold counted At the end, short interview conducted with owner/manager of outlet Information on satisfaction with Paras service & other details collected Structured questionnaire used to collect information

6. KEY QUESTIONS Brands and types of milk stocked by retailers Perceived Customer Profile Extent of satisfaction with various service quality attributes Knowledge of & Attitudes towards the company

7. KEY QUESTIONS Brands of Milk and other products stocked Brands stocked ever and currently Most selling Brand/Type Reasons for selling most Reasons for not stocking/discontinuing to stock What specifically asked by customers and brands given if no brand mentioned Reasons for giving specific brand Reasons for not giving Paras Perceived customer profile Perceived difference in Paras and Mother Dairy buyers Perceived reasons for consumers shifting from one brand to another

8. KEY QUESTIONS Extent of satisfaction on various Service Quality Attributes How does Paras perform on all attributes vis a vis Amul and Mother Dairy Reasons for any dissatisfactions Problems faced in stocking and selling Expectations from companies to help sell more Knowledge of & Attitude towards the company Likelihood of stocking milk brands in future Other dairy products stocked currently Level of interest in stocking other products of the companies Opinions about the companies Retailer's suggestions to improve sales

9. F I N D I N G S

10. Brand Stocking Details

11. Brands Stocked

12. Reasons for Discontinuing/Not Stocking Very few respondents discontinued/were not stocking Mother Dairy, Amul or Paras Delivery issues and Margin were mentioned as prime reasons for not stocking/discontinuing Mother Dairy “ Customer do not like” was the sole response mentioned for discontinuing/not stocking Paras For Amul issue of supply and no demand from consumers was mentioned as main reason

13. Brand Selling Most

14. Reasons for Selling Most REASONS Mother Dairy (23) Paras (19) % % Quality is good 65 47 Taste is good 39 32 It’s a popular brand 30 5 Sales are good 17 5 Milk is Fresh/Pure/Good 17 10 "Cream jyadha aati hai" 13 21 "Thickness jayada hai" 9 11 Customers ask for it 9 11 It’s a Government Brand 9 - It is easily available 4 - Margin is good - 26

15. Reasons for Purchasing REASONS Mother Dairy (23) Paras (19) Amul (23) % % % Quality is good 71 87 57 Its an old company 33 9 4 Milk is good/Taste of milk is good 17 22 43 Dudh phatta nahi hai 13 - - Thickness is good 8 4 - Supply jaldi aur achchi hai 8 9 - Shikayat kam hai 8 9 - Available at any time 8 9 4 It has cream 4 4 13 Margin is good 4 - 4

16. What Specifically Mentioned All Figures in % Brands given % Paras 73 Mother Dairy 14 Amul 10 Gopal jee 2 Parag 2 Reason % Better margin 73 Good Quality Milk 63 No Complaints 14 Company name 10 Customer demands 8

17. Reason for Not Giving Paras Those who do not give Paras milk mentioned following reasons for not giving Paras “ Isliye nahi dete kyonki kabhi kabhi phat jaata hai” “ Adhiktar Grahak mana kar dete hai” “ Quality is not good” “ Mere paas Mother Dairy ke jyaada grahak hain”

18. Perceived Customer Profile

19. Perceived Difference In Consumer Profile It seems retailers do not perceive any perceptible difference between Paras, Mother Dairy and Amul buyers REASONS Mother Dairy (23) Paras (19) % % All type of people take it 68 24 Both price are same 34 14 Every one can buy it 34 - They belong to same category 26 42 “ Jin ko jo achha lagta hai wah lete hai” 8 - New generation is like paras - 12 Dono brand achche hai - 8

20. Reasons for Buying as Perceived by Retailers REASONS Mother Dairy (23) Paras (19) Amul (23) % % % It is good/Milk is good 78 44 49 Because it is thick 14 7 2 Smell nahi aati 14 - 5 Cream is good 12 11 7 Taste is good 10 7 17 It’s a popular brand 10 49 12 It is pure milk 6 11 2 It is good for health 6 4 5 It is good for making dahi 4 - - Ismain poshtikta hai 4 - -

21. Perceived Reasons for Shifting REASONS All Sample (50) % Jab dudh baar-baar kharab ho jaata hai 41 Jab uske brand main baar-baar shikayat aati hai 29 Jab delivery time per nahi hoti 20 Dudh jayada patla aane per 8 Jab koi naya brand aata hai sasta aur purity wala hota hai log apna brand chotkar ushe lene lagte hai 6 Ek hi brand use karne se man bhar jaata hai 6 Taste main antar aane per brand badal diya 6 Smell aane lage 4

22. Service Quality

23. Performance on Service Quality Attributes All Figures are mean scores; Max=5.0 Frequency of milk deliveries Timing of deliveries Regularity of deliveries Flexibility in quantity delivered Forcible dumping of extra packets Policy regarding taking back unsold, damaged or spoilt packets Behaviour of Salesmen Salesman Sales Supervisor Visits and Problem Solving

24. Performance on Service Quality Attributes All Figures are mean scores; Max=5.0 Fairness in claim settlement Speed of settling claims Volume discount schemes Merchandising (helping with shop displays, providing incentives for shelf displays, PoP Type of PoP materials provided Quantity of PoP material provided Merchandising activities such as providing materials or incentives for in-store displays, providing visi-coolers etc. Extent of margins offered

25. Performance on Service Quality Attributes All Figures are mean scores; Max=5.0 Credit period Extent of credit Role in co-operative advertising Type of customer schemes and promotions Frequency of offering customer schemes and promotions Type of retailer schemes and promotions Frequency of offering retailer schemes and promotions Overall

26. Problems Faced in Stocking and Selling REASONS Amul (29) Paras (33) % % No/none/nothing 38 61 No replacement 24 6 There is no customer demand 24 - They don’t give credit 3 3 Kabhi-kabhi dudh phat jata hai 6 15 Delivery should be given on time 3 3 There should be no leakage - 6 Quality should be good - 3

27. Additional Help Required to Sell More Paras REASONS Paras (29) % Good schemes should be given like (Free milk on 2 Carets) 49 They should increase the margin 27 They should replace it 19 Credit should be given 6 Should be less price 6 Should give good incentives 6 Pop material should be given 4 There should be no leakage 4 Quality should be improved 4 Delivery should be given on time 4

28. Knowledge of & Attitude Towards The Company

29. Intention to Stock/Continue to Stock

30. Other Dairy Products Stocked

31. Level of Interest to Stock Other Products All Figures are mean scores; Max=5.00

32. Opinion on Paras Overall good company Quality conscious company Maintains good relations with retailers Financially stable Takes care of shop keeper's welfare Does not take care of shopkeepers It’s a Trustworthy It’s a modern company Listens to retailers concerns Good margin Good Schemes Good Promotional Schemes