Brand Strategy Modeling for Mother Dairy

Brand Strategy Modeling for Mother Dairy

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Table of Contents

1. Introduction ........................................................................................................................................... 3

2. Historical Background of Mother Dairy ............................................................................................... 4

3. Organization Structure .......................................................................................................................... 4

4. Objectives and business philosophy of Mother dairy ........................................................................... 5

5. SWOT Analysis (Kansal, 2007; Banerjee et al ., n.d) ........................................................................... 6

6. Brand Positioning Models ..................................................................................................................... 7

6.1 Perceptual Mapping ........................................................................................................................ 7

6.2 The personality of the brand ........................................................................................................... 9

6.3 Target Market / Geographical location ......................................................................................... 13

6.4 Advertisement ............................................................................................................................... 13

6.5 Pricing strategy ............................................................................................................................. 14

6.6 Promotion ...................................................................................................................................... 15

7. Proposed perceptual map for Mother Dairy ........................................................................................ 16

8. Conclusion .......................................................................................................................................... 17

References ............................................................................................................................................... 17

9. Appendix I: ......................................................................................................................................... 19




1. Introduction

Brand can be stated as a unique name that becomes a criterion for product purchase for consumers. Successful brands aim at creating a blend of their market resources to produce assets

(Chernatony et al., 2011). In the current state it is necessary for marketers to position the brand to establish a sustainable competitive edge on both tangible and intangible product attributes.

This advantage is created primarily to acquire market supremacy in that category of products.

Positioning “relates to how customers feel about future and/or current brands in a market”

(PerrEault & McCarthy, 1999). ******************CONFIDENTIAL*******************

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* ******************CONFIDENTIAL********************. The brands success depends greatly on their capacity to stick to a long term strategy developing distinctive brand position even during low market tides.

The aim of this assignment is to present and discuss the positioning model that help marketers to expand efficient, consumer related brand policy and convert it into the marketing tools that address brand related target audience, their values, attitudes, needs and expectations utilizing Mother dairy as a case study. Mother Dairy was chosen in this case study, reason being its recent struggle in the market to position its brand in comparison to the competitors such as

Amul, a top brand. The assignment discusses the brand position using different models of brand positioning that captures consumer relevant data (preferences and consumer behavior), specific brand information (loyalty, brand awareness, brand image, etc) and market information data

(market size, trends of development etc).


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2. Historical Background of Mother Dairy

Mother Dairy is a subsidiary of National Dairy Development Board (NDDB) that was established by Operation Flood Programme established in the year 1974. The major marketing products are Ice Creams, Paneer and Ghee. Dairy cooperatives are the major sources of milk for

Mother Dairy. Providing high quality milk and milk products at competitive prices and allowing the farmers and milk producers to contribute their best for the development of the firm is the major reason behind the success of Mother Dairy. Mother Dairy uses microprocessor technology which can be controlled automatically to produce milk at high quality and safety.


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*******************CONFIDENTIAL***********************. Mother Dairy’s ice cream unit was started and gained much popularity since 1995 in Delhi. Now, its ice cream products occupy 62% of market share in Delhi and NCR. In addition, more milk products including Butter, Mishti Doi, Paneer, Dahi, Ghee, Cheese, UHT Milk, Probiotic Products, Lassi

& Flavoured Milk are being produced and marketed (motherdairy.com, 2012).

3. Organization Structure

Dr. Mitra, one of the board members of Mother Dairy joined the company in the year

2007. Mr. S. Nagarajan became another board member in 2010. The other eminent personalities of the company are the CFO Mr. Nikhil Vinay Madgavkar is Amitava Mukherjee the current

Business Head of the Milk Division of the firm. There are 200 members in senior management team, 800 members in middle management and 1,500 members in junior management team. The workers team includes 1,500 members.




General

Manager

Senior Manager

Dy Manager

(Product)

Dy Manager

(Utility)

Product Unit Coordinator

Assistant

Manager

(Safety)

Floor Engineer & Work Man

Figure 1: Mother Dairy Organization Structure

Source: (Ranjan & Bangabash, n.d)

4. Objectives and business philosophy of Mother dairy

Mother dairy’s main stakeholder is the farmer since the organization was founded to improve their status. The company’s primary motive is not to increase profit, since it is a government organization focused on welfare of the farmers. Hence, they view the money that suppliers are given as an objective rather than a cost. The goal of Mother Dairy is thus to ensure economic development of agriculturist through marketing subsidiary farm products like milk and milk products. This marketing was done through:









Common branding

Centralized marketing

Dedicated quality control

Consistent purchases and




 Pooling of milk efficiently

Mother Dairy was free from adulteration and assured quality products. This created a trust among its consumers with regards to purity of milk.

5. SWOT Analysis (Kansal, 2007; Banerjee et al ., n.d)

STRENGTHS



The main strengths of the mother dairy are the different range of milks and a

WEAKNESS



Limited mother dairy outlets.



Smaller amount margins given to the



The growing order for these foods presents a big chance for the mother dairy to raise and level up the production.



Good brand equity



Excellent dealer network



Wide range of products



World class industrialized plants



Strong R&D services



Foreign joint venture outlet owners to equal the existing competitors.



Global presence is low



Lack of advance in product design

OPPURTUNITIES



There is a capacity of business as there is a require for dairy products.

THREATS



Rising competition from the other brands.

 strong supply series managements by the






More dairy must open more outlets to get the highest lead of demand.



Need to put more pressure in the facecompetitors.



Strong advertising policy by competitors by offering the discount coupons to to-face direct marketing to get to the customers and providing healthy customers.



The escalating requirement for these products presents a great opportunity for the mother dairy to increase and scale up production. commissions to the retailers.



Government import policy



High excise duty



Rising cost of inputs



Expectation of highly energy efficient, low

/ zero noise, environment efficient product

Despite enormous investment and different strategies to reach consumer market, still mother dairy has been struggling to position its brand among its competitors.

6. Brand Positioning Models

6.1 Perceptual Mapping

The most common method used for determining the brand position in the market place, is the perceptual mapping tool. This method involves capturing the consumer perception about the brand and identifying its competitors as well as comparing the consumer perception with that of the competitors (Dimeions) using attributes that are key for consumers (Jobber, 2001, p.208). Consequently, four steps were identified to develop a perceptual map, determine the competing brands, identify the attributes consumers consider while making a brand choice; perform a market research and map the brands on a two dimensional scale. This tool will help in brand positioning which will be represented by target consumer group, brand equity and competitive structure (Figure 2).




Subset of identity/

Value position

 Core identity



Points of leverage



Key benefits

Target audience

 Primary

 Secondary

Brand

Positioning

Actively communicate



Augment the image

 Reinforce the image

 Diffuse the image

Create advantage

 Points of superiority

 Points of parity

Figure 2: Perceptual Mapping

Source: Aaker, 1996, p.184

Brand positioning can be effectively accomplished by asking the following questions:

Why is the brand created? Focusing on the promise offered and consumer benefit

Mother Dairy was created to improve the status of rural areas develop their economic status and meet the increasing milk demand in the country as well as promise high quality milk.

Who is the brand created for? Focusing on the target audience

The brand was created for common people who seek high quality milk and focus on farmers’ and agriculturist’s welfare.

The brand is created for when?: Focusing on the occasion for which the brand will be consumed.

The brand was created for milk production for everyday use, with nutritive value.

Who is the brand created against?: Focusing on the competitors they intend to succeed over.




Although Mother Dairy was not created against any brand, eventually, Amul became its strong competitor.

When? Whom?

When?

Against whom?

Figure 3: Positioning of a brand (Kapferer, 2004)

Points of parity



Convenience



Ready to use



Nutritious products

Points of superiority



Heritage and history



Government brand



Trust among middle to low income consumers but not high income.

6.2 The personality of the brand

Brand personality is identified based on conducting a brand audit to record the perception of consumers and in comparison with Mother dairy’s competitors. A summary of the brand audit conducted based on analyzing secondary data collected is given below:

Table 1: Brand Audit of Mother Dairy




Slogan

Product/competitive segment

Users

Dimensions Initial Status of Mother dairy

‘Mother’ is the target person to promote their brand. “Maa lasa Koi Nahi” (Economic Times,

2012)

Amul

Parents of younger age group who are in the growing age

Brand awareness Medium, as recent survey indicated that 92% consumers recalled Milk, followed by Nestle

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Brand image and Britannia and least was Mother dairy

Regional focus, positive among children

Mother dairy products (umbrella brand) – High quality milk perceived image values

Price

Incompetent taste of ice-creams

High – Compared to its competitors

Brand awareness recognition and brand personality and brand image in terms of taste and quality are an average for Mother dairy. In addition, brand loyalty in terms of trust the quality and health consciousness are also poor

6.2.1 Competitors

The main competitors of Mother Dairy are Amul, Nestle, Britannia (Recomparison.com,

2013). Mother Dairy is quality-focused and hence the company has introduced the ‘Kamadhenu’ project. They have employed a milk tanker with a vending machine which will vend milk either in quality or quantity. These vending tankers currently are involved in educating lower income group while vending any volume of milk and to improve the results they are trying to increase the number of tankers to cover entire Mumbai city (The Economic Times, 2012).




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DENTIAL********************. To meet various other emerging competitors, Mother Dairy introduced Safal, which produces products other than milk related such as savouries, snacks, fruits and vegetables. Compared to other brands, the competition of Mother Dairy with Amul was obvious. On the other hand, Amul has spread its product umbrella by positioning its brand by introducing new product every month and in selling everything related to food.

NDDB’s milk selling brands have been predominantly regional players with regional names like Verka in Punjab, Saras in Rajasthan, Nandini in Karnataka etc, while Amul has become well known throughout the country and sells its product under a single brand name.

Referring to Amul, Gujarat Cooperative Milk Marketing Federation’s (GCMMF’s) Vyas said that for a brand to be successful it has to be nurtured rather than trying to match capital to meet the surplus. Amul established dealership with two dairies in the south (Tamil Nadu and Andhra

Pradesh) to market their surplus milk. There were intentions and attempts to sell Mother Dairy products under the Amuls’ umbrella. However, it was not furthered as there were expected to be oppositions to it. Consequently, NDDB decided to market its Mother Dairy products through

Mother Dairy Foods Ltd. (MDFL) under its own brand and not form a dairy federation brand under Mother Dairy parent brand. On the other hand, meeting consultants opine that if MDFL establishes joint ventures, it would consequently eliminate many regional brands bringing them under Mother Dairy’s umbrella. They consider that it would be a better strategy to aim at achieving a consolidated national brand. With all of these attempts of NDDB to promote Mother

Dairy, the question arises if Mother Dairy’s goal has shifted from the farmer welfare centric one to market centric one. But the major challenge of Mother Dairy being sustenance of competitive edge, which is important to serve farmers in some way or the other, it is inevitable to set market and profit goals (rediff.com, 2003).




6.2.2 Perceptions of Mother dairy

“Perception is process by which each individual selects, organizes and evaluates stimuli from external environment to provide meaningful experiences for him” (Mooij, 2009, p. 47). It is important to record and evaluate perceptions of a brand in order to develop a brand strategy and develop it. The perception process involves different factors like personal experience with the brand, media reports, recommendations from associates, attitude, motivation and values. Some of the factors that influence perceptions are discussed below.

6.2.3 Attributes

Consumers generally seek quality and taste when purchasing milk and milk products. In addition, easy availability, freshness and purity reliance are also important attributes consumers look for. Other factors include thickness of milk and cream, price, nutritive value and history of the brand. With respect to delivery of products, consumers look for timely delivery, frequency of delivery, regularity of delivery, forcible dumping of extra packs, policy regarding taking back product when not needed, damaged or spoilt milk and behaviour of sales person

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Surveys of the past indicate that taste of edible products is considered to be an important factor that influences consumer behaviour. With respect to the above consumer expectations,

Mother Dairy consumers have expressed dissatisfaction with the fat content and taste of the products. Mother Dairy ice-creams were unable to compete with Amul ice-creams and Kwality

Walls due to this factor.




6.3 Target Market / Geographical location

Mother Dairy products are sold in about 5000 outlets of which 680 are Mother Dairy brand outlets. 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 (Sangeetha, 2013).

6.4 Advertisement

Mother Dairy largely focuses its campaigns primarily to attract children and their advertisements also largely use children as the models with much criticized slogans like 'The country needs you to grow faster' (afaqs.com, 2012). Also, one of the drawbacks in their approach is that their publicity campaigns focused on taste of their products rather than the goodness of it. Mother dairy has a poor advertisement strategy and failed to create a image in the minds of consumers regarding Mother dairy products.


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While discussing globalization and advertisement of a brand it cannot be surpassed mentioning social media marketing and advertising techniques. Social media being the one place where brands can meet and reach customers easily, they have become the global marketing platform. Mother Dairy should start taking social media marketing approach which satisfies both innovation and modernization in marketing methods.




6.5 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. The Figure

4 below shows the Amul price hike and other figure compares the Amul Versus Mother dairy

(Dailymail.co.uk, 2012). This shows that 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.

Figure 4: Amul Price Shock (dailymail.co.uk, 2012)




6.6 Promotion

Mother Dairy failed in establishing effective communication with its consumers to promote its products be it through advertisement or other media. Mother Dairy is the brand for all its products. However, the brand focuses on promoting each product rather than the brand umbrella as such. Mother dairy campaign has conducted their campaign with the slogan of “Maa

Jaisa Ko Nahi”, specifically about “thanking your mother”. Further, they redesigned their packages using consumer survey. In Particular they encouraged consumers to write a letter to their mother expressing their love. Yet, Mother Dairy, recent camping has received lot of criticism from consumers. However, Amul campaign was more towards health focus as they say

“Milk is rich in protein and calcium which help build the muscles you need to throw a ball of climb a tree. One 200 ml glass of milk provides power pack of nutrients a child needs a daily”

(Economic Times, 2012). Further, Amul constantly reposition its brand particularly focusing among youth. Their brand strategy is to associate with the Hollywood Movie, Spiderman and sponsored at the London Olympics, ICC Cricket world cup and many more. However, Mother dairy doesn’t take much effort to position its brand.

The following table represents brand evaluation or perception of Mother Dairy relative to its competitors.

Table 2: Brand evaluation or perception of Mother Dairy (Globsyn Business School, 2012)

Competitors Product quality

Mother G dairy

Amul

Nestle

E

E

Customer awareness

Pricing Product availability

Advertisement Product range

VG VG VG A G

E

E

E

G

E

VG

VG

E

E

VG




Cadbury VG

Britannia G

S.B

H.U.L

VG

VG

G

G

G

A

A

G

A

G

E- Excellent, VG- Very Good, G- Good, A- Average

G

A

VG

A

G

G

VG

A

A

G

P

A

7. Proposed perceptual map for Mother Dairy

Based on the brand analysis of Mother Dairy and having identified the drawbacks of the brand we have proposed the following perceptual map for Mother dairy’s branding strategy.

Subset of identity/ value position

 Sustain the large federation



Focus on milk & milk

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

Assume a globalization

Brand

Positioning



Promotion through aggressive advertisements

& sponsors aiming global reach



Engage consumers through social networks etc.



Focus on the brand umbrella rather than products

Target audience



Target high income group

 Children for icecreams & elders for nutritional value

Create advantage



Improve nutritional value and quality



Improve taste value



Expand modernized outlets throughout the country

 Better delivery systems

Figure 5: Proposed perceptual map for Mother Dairy (Source: Author, 2013)




8. Conclusion

Mother Dairy has a long history of milk business and has revolutionized milk both in terms of production and quality in India. However, much of their growth has been a limited to a regional level. It requires for the organization to take creative and modern approaches to reach the global competition market while also keeping in mind the welfare of farmers. There is a large scope for the company to develop its brand at the national level itself which demands more innovative means of publicity. Finally, Mother Dairy has to aggressively promote its brand through innovative ways facilitating a far reach.

References

Aaker, D. A. (1996) Building Strong Brands , New York: The Fress Press---A Division of Simon

& Schuster Inc.

Afaqs. (2012) Mother Dairy: Milk for the mother , Available at: http://www.afaqs.com/news/story/35690_Mother-Dairy:-Milk-for-the motherhttp://www.afaqs.com/news/story/35690_Mother-Dairy:-Milk-for-the-mother .

Banerjee, K. S., Tomar, K., Madan, P., Verma, S., Chowdhary, S. (2005) ‘Study of Mother Dairy’s

WT-5’, Probing the reason(s) for low sales & suggesting remedial measures thereof , National

Dairy Development Board, Available at: http://www.scribd.com/doc/23037322/14/SWOT-

Analysis-of-Mother-Dairy .

Chernatony,L., Malcolm., McDonald, H. B.and Wallace, E. (2011) Creating Powerful Brands ,

4 th

edn., UK: Elsevier.

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Indian Africa Connect. (2013) Mother Dairy: A story of India entrepreneurship , Available at: http://www.indiaafricaconnect.in/index.php?param=news/30/agriculture-energy/104 .




Jobber, D. (2001) Principles and Practice of Marketing , 3 rd

edn., London: McGraw-Hill

International (UK) Ltd.

Kansal, V. (2007) Systemic Analysis for Inter- Relation of Identified Critical Success Factors in

Enterprise Systems Projects, Arab Open University.

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Lancaster, K. J. (1979) Consumer Demand: A New Approach , New York: Columbia University

Press.

Lancaster, K. J. (1966) ‘A New Approach to Consumer Theory’,

Journal of Political Economy ,

74, pp. 132-157.

Leinwand, P., Moeller, L. H. and Shriram, K. B. (2008) Consumer Spendings in the Economic downturn: The Wide Ranging Impact on Consumer Behavior , Available at: www.booz.com/media/uploads/Consumer-Spending-in-the-Economic-Downturn.pdf

.

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Motherdairy.com (2012) About us , Available at: http://www.motherdairy.com/MotherDairyPages/ourcompany.aspx

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Ranjan & Bangabash (n.d) Emerging Trends in Business Strategy, A Success story of mother dairy.




Recomparison. (2013) Amul vs. Nestle vs. Mother Dairy: Indian Grown Dairy Products ,

Available at: http://recomparison.com/comparisons/100951/amul-vs-nestle-vs-mother-dairyindian-grown-dairy-products/ .

Reffic.com. (2003) Duel in http://www.rediff.com/money/2003/jan/25spec.htm

. dairyland , Available at:

Sangeetha, G. (2013) Mother Dairy plans pan-India presence in 1 year , Available at: http://www.mydigitalfc.com/news/mother-dairy-plans-pan-india-presence-1-yr-320 .

Shnedler, D. E. (1996) ‘Use strategic market models to predict customer behavior’,

Sloan

Management Review , 37(3), pp. 85-94.

SmartInvestor. In. (2013) Mother Dairy plans production facility in south , Available at: http://smartinvestor.business-standard.com/market/story-152324-storydet-

Mother_Dairy_plans_production_facility_in_south.htm

.

The Economic Times. (2012) Mother Dairy aims at capturing 20% ice-cream market share by

2014 , Available at: http://articles.economictimes.indiatimes.com/2013-02-

06/news/36949688_1_mother-dairy-ice-cream-market-share .

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9. Appendix I:

Competition:




Brand Portfolio :










Brand Strategy Modeling for Mother Dairy

Brand Strategy Modeling for Mother Dairy

7. Proposed perceptual map for Mother Dairy

8. Conclusion

9. Appendix I:

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Products

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Brand Strategy Modeling for Mother Dairy

Brand Strategy Modeling for Mother Dairy

7. Proposed perceptual map for Mother Dairy

8. Conclusion

9. Appendix I:

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