Rural Marketing 2017

Rural Marketing
Batch BBA (2014-2017)

Business Plan
Module Leader Dr. Rohit Singh

Submitted by
Aditya Kore
Jinesh Ahiya
Parth Kothari
Siddharth Agarwal
Aayush Asija
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Introduction of Indian Dairy Industry

Our country, India has the maximum number of farm animals population around the globe
with more than 50% of the buffaloes and 20% of the worlds livestock population, most of
which are milch cows and milch buffaloes. Indias dairy industry is measured as one of the
most successful development programmes in the post-Independence period.
In the year 2006-07, the total milk production in the country was over 94.6 million tonnes
with a per capita availability of 229gms per day. The industry had been recording an annual
growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate
of the dairy industry in the world. Milk processing in India is around 35%, of which the
organized dairy industry account for 13% of the milk produced, while the rest of the milk is
either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganized
channels.
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
India. Milk is processed and marketed by 170 Milk Producers Cooperative Unions, which
federate into 15 State Cooperative Milk Marketing Federations. Over the years, several
brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka
(Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka
and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is
obviously high in these milk surplus States. Exports of dairy products have been growing at
the rate of 25% per annum in the terms of quantity terms and 28% in terms of value since
2001.
India has emerged as the largest milk producing country in the world with present level of
annual milk production estimated as 94.5 million tonnes. The large livestock population is
raised primarily on crop residue and grazing in the common property including basement.
The forest area, which was a major source of grazing, is no longer available to livestock
breeders especially landless people. As a consequence, the available feed resources fall short
of the nutritional requirement.
India prepares to tackle the international market following Japan, where milk consumption
today, has more than trebled to 70 kg per capita from a mere 20 kg in the 'sixties - the
consumption of dairy products in other Asian 'tiger' nations is also growing. As a
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consequence - creating excellent export opportunities for India, as these nations are deficient
in milk by at least 3 million tonnes per year. India, with some 27 per cent of Asia's
population, accounts for more than half of the milk output.

Lead Players
The lead players in processed milk products in the market are as follows:
Amul, Britannia, and others include Vijaya, Verka and Vadilal. In the category of cheese
Amul, Britannia Dabur (Le Bon) are the leading players including others like Verka, Nandini,
Vijaya and Vadilal.

Leading Brands
Amul, Sapan, Vijaya Spray, Meadow, Mohan, Parag, Shweta, Malkana, Gagan, White
Magic, Every Day.

Market Growth Rates

1990-91 - 1996-97 3.6%
1996-97 - 2001-02 10.1%
2001-02 - 2006-07 8.7%
2004-05 - 2009-10 8.3%
2009-10 - 2014-15 8.0%
Source: Basic Animal Husbandry Statistics, 2004
* Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2004-05
# Projected by state
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Identification of core activities

Acquiring Raw Materials from various

Raw
Materials
vendors, suppliers and nearby villages

After raw materials are acquired, they are

Manufactu
ring
proccessed and packed for further sale

Then the finished goods are transfered to

Storing warehouses for storage purpose.

From warehouses the finished goods are

Supplying transported to retailers.
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Strategy
Push and Pull Strategy

Push strategy

This concept simply means that the manufacturer of product undergoes several set of steps in
order to make his product cover maximum portion of market. This process may also include
designing up of various distribution networks and involving middle men and retailers to stock
up the product. This process is well suitable for lower value items such as fast moving
consumer goods (FMCGs). The process may involve encouraging middlemen and suppliers
in order to stock up the product.

Pull strategy

This type of strategy refers to the customer keenly looking out for the product and retailers
placing orders for stock due to direct consumer demand. A pull strategy requires a highly
visible brand which can be developed through mass media advertising or similar tactics. If
customers want a product, the retailers will stock it - supply and demand in its purest form
and this is the basis of a pull strategy.

Navata mainly follows Push Strategy. This is because there is a huge and complex
distribution network designed by the company in order to make their product penetrate the
market and making easily available for their customers on a large scale and on a daily basis.

Depending on the nature of the demand uncertainty, products are:-

Functional- these are the type of the products which may include grocery, dairy products
whose needs are basic in nature. These products have a low variety options and also they
stable & predictable demand, not much fluctuations in demand.
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Innovative- such type of products involves latest trends and technology which tries to
satisfy a broad range of customers having high variety, unstable & very hard to predict
demand. They have high profit margins and stock-outs.

Navata has the hybrid meaning it has both the types of products. Functional in the sense
that the products like milk, curd and cheese have a basic need by the customer. These
products have a less number of variety options. Company also has Innovative product which
it has a unique product of offering flavoured curd as compared to that of its competitors.

Depending on the order delivery time/order:-

Made to Stock (MTS) - is a traditional production strategy that is used by businesses

to match production and inventory with consumer demand forecasts.
Made to Order (MTO) - this is the type of chain in which the products are made in
accordance with the order received either from customers or vendors/suppliers.
Configure to Order (CTO) - in this type of chain, products are made or produced
after receiving a configured or customised order from the customers. In this, the part
of customization is way more than the standardization.

Navata mainly follows the concept of Made to Stock (MTS) because it supplies goods to the
various suppliers and vendors who in return stock up those goods at their shops and outlets..
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Outsourcing
Outsourcing can also be termed or referred to as contracting out. It is the type of activity or
process which is used by various industries, organizations or business firms in order to bring
their cost and also it helps the firms or organizations to improve their efficiency when it
comes to planning and executing the other core activities. Improvement of efficiency can be
done by transferring the job, process or various other activities to an external third party for a
stipulated period of time. The work/functions transferred out to third party can either be
onsite or offsite of the business.

There are various criteria which need to be looked upon while making a decision of
outsourcing:-

Cost Factors- this is the most important factor which should be taken into
consideration during this decision process. It simply means that company looks into
the total expenses or cost which are included both in making and outsourcing and the
final decision is made on which the cost is least as compared to that of the other.
Control of Core Competency- this criterion simply means that a particular firm
needs to keep all the core activities and process under its own control and the ones
which are less important can be outsourced to the third party.
Technology Level- all the process or activities directly or indirectly involve
technology in it. So it simply means that for whichever process, the involvement of
technology is more and cannot be copped by the company is outsourced and vice
versa.

List of various core activities and processes:-

Purchasing and acquiring of Raw Material.

Production and Manufacturing Process
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Storing and Warehousing
Supply and Transport

One important activity which the company has come up with is developing an internet
application which can be used by the:-

Company to track orders of raw materials and also keep a check on the supply and
distribution of the products to various retailers and outlets.
Retailers and Suppliers to make an order to the company which would as a stock
for them and also at the end of the day retailers will make a feedback to the company
that what and how much quantity of products is sold.
Customer to make an order directly on the online portal of the company which can be
used by the company to make a home delivery.

Now the main part comes which is what all activities of the company should be
performed in-house and what all activities should be outsourced. According to the
explanation, the core activities and those which require less cost should be in-house and
others should be outsourced. Accordingly, the core activities such of the firm which are
Purchasing and Acquiring of Raw Material, Production and Manufacturing
Process, Storing and Warehousing, Supply and Transport.

The above mentioned core activities cannot be outsourced.

The reason being these activities are very much important and crucial for the
companys working and operation. These activities cannot be transferred out to
the third party contractor because they are very crucial and also requires a lot of
supervision and expertise at all point of time and this is the very reason due to
which the above mentioned activities should be done in house.
Another reason for not outsourcing is that it would involve more cost as compared
to that if carried in-house.
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The other activity of the firm which is not as important or crucial as the other activities is
that Developing and Maintaining online application. This process/activity has to be
outsourced to the third party contractor. The reason behind this decision is that the
company do not have enough knowledge or expertise in order to develop and maintain the
application on daily basis. So this activity will be transferred to the one who would make
that application for the company in lieu of some nominal charges.
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Demand Forecasting
In dairy industry, the company needs to keep the regular check on the demand and supply of
their products. As they are perishable product so they are of no use after the expire of the
products,

So for that the company needs to maintain a good transport service for the products, keep a
check on the storage or warehouse on which they are store. And their focus should be on the
quality of their products.

Demand forecasting consists of three factors which are:-

Quality of product
Quantity of product
Time series

Quality of product

Before send your product in the market the company need to forecast that which type of
quality in required in which area so that the requirement of the should be matched and which
the organization to grow.

Example- if in vesu area there is high demand of Cow milk and then Buffalo milk because
cow milk has less fat than buffalo milk and the company on the daily bases supply more
buffalo milk in the markets so this causes a negative impression for the company which affect
the company a lot.

So for this our company make high quality products which are tested main time before
supplying it to the market and it is IFC certified that our products are free to consume. So we
good quality products in every zone and as per their demand their supply matched with the
continuous check on the supply chain for the betterment of the company. Senior supervisor
are allotted who see to it. For every sells proper records are maintain for every day so that if
we makes the change in the supply we can look upon that for the demand purpose.
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Quantity of product

It includes how much to manufacture and how much to supply, it is basically the number of
units you need to supply in the market. By the demand and supply and we need to see the
storage capacity at every place because if the products are not conserved properly the rate of
wastage will increase in this.

Below are the litres of milk which are supplied to different zones of per their demand and
size of the area,

1-East zone- Large area more demand more supply

Milk- 24500lt
Curd 7500lt
Cheese 1250kg

2-Central zone- large competition-small area-vast pollution-stable demand

Milk - 9500lt
Curd 2700lt
Cheese 450kg

3-North zone- Large area more demand more supply

Milk - 15750lt
Curd 4800lt
Cheese 800kg

4- Southeast zone- small area-less demand

Milk - 17250lt
Curd 5100lt
Cheese 850kg
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5-Southwest zone- large area-large demand-large supply-main focus-highly populated-high
competition

Milk - 7750lt
Curd 2400lt
Cheese 400kg

6-South zone- medium size area-highly populated-large demand-continous supply

Milk - 15000lt
Curd 4500lt
Cheese 750kg

7-West zone- large area-large demand- highly populated-high competition

Milk 10000lt
Curd 3000lt
Cheese 500kg
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Life cycle of our products-

1) Milk simple packing 2 days

Tetra packing - 6 days

2) Curd 10 days
3) Cheese 6 months

So after the products get expire the company need bring those product back to their industries
and disposed properly.so for less wastage the company need focus on the demand and supply
of the products.
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Pricing and Revenue Management

Pricing and revenue is that managerial activity which is concerned with the planning and
controlling of the firm financial resources. Still today it has no unique body of knowledge of
its own and draws heavily or economic for its theoretical concept.
Pricing and revenue means the use of such managerial function as planning and control to
undertake finance function.
-

Taking loans (Sources of funds):

Every firm needs money or funds for the activities of its organization and they all takes it
from either share capital or loans like debentures, bonds etc, This is the corporate company so
it is no more taking loans or the sources of funds because in the company to making the profit
in the end of the year it is reinvested in the second year in the company.

Interpretation:-

Sources of Finance:
In the Navata dairy requirement of finance is major into two major areas.
1. In working Capital
2. Investment on expansion. These requirements fulfil by taking loan and issuing share.
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(1) For working Capital:
To meet the needs of arising working capital Navata dairy makes transactions from the
following banks.

The Surat District Co-operative Bank Ltd, Surat

Sarvoday Sahakari Bank Ltd, Surat
State Bank of India, Surat
Surat Mahila Nagrik Sahakari Bank, Surat
Indian Bank, Surat
Dena Bank, Surat
Co-operation Bank, Surat

(2) For Investment on Expansion:

National Dairy Board
Share capital
Debenture

FROM WHERE DOES 1 Re. COME (Income)?

Milk Sale 0.78
Product Sale 0.16
Closing Stock 0.05
Other income 0.01

WHERE DOES Rs.1 GO (Expenditure)?

Milk purchase 0.84
Packing 0.03
Salaries/Wages 0.02
Transportation 0.02
R & D 0.02
Water, Electricity, Fuel 0.02
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Processing 0.01
Maintenance 0.01
Distribution 0.01
Depreciation 0.01
Interest Exp. 0.01

PRICING

Milk (pouch)

QUANTITY COW(RS) BUFFALO(RS)

500ML 20 22
1LT 40 42
5LT 195 200

Tetra pack

QUANTITY COW(RS) BUFFALO(RS)

250ML 47 50
750ML 16 18
3LT 185 190

Curd (plain)

QUANTITY RATE(RS)
200GM 20
400GM 40
1KG 95
5KG 460
15KG 1325
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Mango/Strawberry/sweet curd

QUANTITY RATE(RS)
200GM 25
400GM 48
1KG 115

Cheese (process cheese)

QUANTITY RATE(RS)
Cube (15Gm) 12
Slice (5, 10, 20) 50,100,200
Brick (500gm, 1kg) 215,405

Mozzarella

QUANTITY RATE(RS)
Brick (500gm, 1kg) 225,440

Cheddar cheese

QUANTITY RATE(RS)
Brick (500gm, 1kg) 240,460

Cheese spread

QUANTITY RATE(RS)
Brick (500gm, 1kg) 205,390
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COSTING

Milk

Product Rate
Raw milk 20
Pasteurize .24
LDPE Film .72
Water .48
TOTAL 21.5

Curd

Products Rate
Milk 20
Sugar 3
Stabilizer 4.6
Flavor .46
Bacterial Culture 4.32
Total 33.38

Cheese

Products Rate
Milk 20
Rennet 6.5
Lactic Acid 4.5
Plant Extract 3.75
Total 35.25
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REVENUE

1-East zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 24500 42 1,029,000
CURD 7500 95 712,500
CHEESE 1250 405 506,250
TOTAL 2,247,750

2-Central zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 9500 42 399,000
CURD 2700 95 256,500
CHEESE 450 405 182,250
TOTAL 837,750

3-North zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 15750 42 661,500
CURD 4800 95 456,000
CHEESE 800 405 324,000
TOTAL 1,441,500

4- Southeast zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 17250 42 724.500
CURD 5100 95 484,500
CHEESE 850 405 344,250
TOTAL 1,553,250
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5-Southwest zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 7750 42 325,500
CURD 2400 95 288,000
CHEESE 400 405 162,000
TOTAL 715,500

6-South zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 15000 42 630,000
CURD 4500 95 427,500
CHEESE 750 405 303,750
TOTAL 1,361,750

7-West zone-

PRODUCTS QUANTITY PRICE REVENUE

MILK 10000 42 420,000
CURD 3000 95 285,000
CHEESE 500 405 202,500
TOTAL 907,500

TOTAL REVENUE: - Rs. 90,64,500

Facility Location
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Introduction

Location and site selection for dairy plants forms the important first step in plant design and
layout. It has a bearing on the profitability of the dairy and initial quality of the milk. The step
is further an important one as any mistake here cannot be corrected easily. The size and
operation of the plant also gets restricted if the decision is not made properly at this stage.

Selection of Location

The problem of selecting a location for a dairy plant has been given considerable thought by
many authorities. Selecting a location involves large commitments of capital, as a result it
must be done with the utmost care. The problem involves selecting a region as well as
specific site within that region. The most difficult part of a plant location analysis is
determining the criteria by which various location alternatives can be evaluated.

As the dairy plant construction involves a very large initial capital investment, numerous
considerations must be evaluated at the very beginning in the planning of a new plant. Out of
these, the location and site selection requires utmost care as it forms a large single capital
investment. It involves selecting a region as well as a specific site within the region, of which
the most difficult part is determining the criteria by which various location alternatives can be
evaluated.

Location is a strategic issue, and the decision where to locate cannot be taken lightly. It is the
first decision in the implementation of a project. Upon the decision to proceed, an investment
is made which is irreversible. That investment in bricks and mortar cannot physically be
transferred to another location if the decision turns out to be wrong. The most favourable
location is one, which attains the lowest unit cost in producing and distributing the product or
service to consumers.

Traditionally, a location was selected for reasons of economic geography like,

1. Proximity to raw material source

2. Proximity to relatively cheap and abundant energy

3. Availability of relatively inexpensive manpower or specialist skills

4. Proximity or good transport links with materials suppliers and markets.

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But nowadays, the location decision has become more complex with newer intervening
factors like more sophisticated markets, increased competition, short supply of skills,
technological change that soon outdate newly installed processes, shooting costs of land and
materials, government influences, legal requirements, corporate matters and peoples
influences. In general, in selecting an area to locate a plant, following consideration should be
given to the following factors

1. Availability of spacious land for immediate requirements of all buildings, roads, service
facilities, garden, tree plantation for wind break etc., with provision of land for expansion at a
future date

2. Accessibility and availability of raw materials

3. Accessibility of market

4. Adequacy & availability of labour

5. Adequacy of transportation facilities

6. Volume of power and fuel

7. Water supply and its quality

8. Soil conditions for heavy loading

9. Site cost

10. Elevation in location to facilitate removal of dairy effluent, suitable treatment and
disposal

11. Climatic conditions, including direction of prevailing wind and probable increase in dust
and smoke nuisance from the surroundings, and

12. Government laws

13. Market Potential

14. Clean environment

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The two terms location and site are often confused with each other. It must be clearly
understood that, the term location implies to Area, Region or Territory, while site is the
place, within a selected location, where building is to be constructed.

Plant Location

Location is primarily influenced by the nature of the product manufactured. The general
location and the specific site should be selected with the aim of attaining as nearly as possible
the ideal over-all economic situation for the particular enterprise, may it be a fluid milk plant
or milk product dairy. The most favourable location is one that attains the lowest unit cost in
producing and distributing the product or service to consumers.

Differences between location and site

The two terms location and site are often confused with each other. It must be clearly
understood, that, the term Location implies to Area Region or Territory, while site is the
place, where building is to be constructed.

Location problem

Location problem has to be solved at two levels, first Territory or Region level and second
site level. Some location factors may be applicable to both the levels. Still region level and
site level are to be given specific consideration.

Types of location

Three types of locations are possible for dairy plants viz. i) city location ii) suburban location
and iii) country location.

City location

When a city is planned by a town planner, all areas are marked for future buildings. The
industries likely to come up are marked in area called Industrial area and usually dairy
plants are allotted a plot in that area only. Dairy plant in the neighborhood of other industry
or factories emitting smoke, dust, offensive smell, gases, carries great risk. It is therefore
essential, that the location marked for milk plant should be free from all pollution.

Suburban location
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Suburban location means suburban town or outer skirts of large city. The dairy plant located
in this situation has advantages of being close to consumption area with possibility of
availing all facilities such as electricity, water, waste disposal and labour etc.

Country location

Country location means siting dairy plant in country or milk producing area. There will be
little competition from other industries and land will be cheap. The plant will not create a
noise problem and it is unlikely that atmospheric pollution will cause any difficulty. There
will be no traffic congestion. Milk supply routes will be short. But it will be away from the
city consumption area.

Mostly the milk supplied to us will be from the different part of south Gujarat villages. It will
be then distributed by us only in different parts of Surat. There are 3539 villages in South
Gujarat.

South Gujarat is divided into 7 districts. They are Surat, Bharuch, Navsari, dang, Valsad,
Narmada and Tapi .The districts are further divided into talukas and villages. There are 10
talukas and 709 villages in Surat, 9 talukas and 625 villages in Bharuch, 6 talukas and 371
villages in Navsari, 3 talukas and 307 villages in dang, 6 talukas and 433 villages in Valsad, 5
talukas and 607 villages in Narmada, 5 talukas and 487 villages in Tapi.

From all these different villages the raw milk will be collected at a center which will be
placed in talukas near to the village and districts, so that the transportation cost will be low.
Then the raw milk will be transported to the district through milk trucks and from there it will
be transported to dairy plant. The raw milk will be separated as the cow milk and buffalo
milk. In dairy plant the milk will be stored in milk receiving tanks for further processing and
product making.

Location site: Icchapore GIDC

Ample of land is available for the industry .Conversion of raw material into finished
products, it is very essential that it should be located in a place where there is supply of raw
material at minimum cost.

Nearness to the market:

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Since the dairy is located on highway it reduces the transportation.

Availability of electricity:

Usually, power is move to the wheels of an industry. Electricity is a source of power which
plays a significant role in industry. In GDIC adequate electricity is available.

Availability of water:

Water plays a vital role in human body. Same as water is also require at industry for their
working. Our Industry is located where there is easily supply of water.

We can easily maintain the connectivity with our customers in Surat city for supply of
products.

Delivery of milk work

With our busy lifestyle, its very difficult to get fresh milk and other dairy products. Thats
where we come in. We provide our products to small customers as well as to big customers.
Basically, our products are delivered from small market to big market.

At the time when (co. name) consumers had limited purchasing power.

Low cost price strategy was adopted to make the product affordable and alluring consumers
to by guaranteeing products.

Consumers are moving from loose milk to packaged milk (tetra pack). We offer standard and
customized products. Milk from our industry will be supplied to different zones of surat.

Surat is divided into 7 zones:

1-East zone

2-Central zone

3-North zone

4- Southeast zone

5-Southwest zone

6-South zone
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7-West zone

Small market such as: retails shops, milkman(who owns yard), milk palace, sagar dairy,
choryasi dairy where as Big markets are: Dhiraj sons, Big Bazaar, Star Bazaar, Reliance
Mart, Reliance Fresh, D-Mart and Sahaj.

We provide wide range of product categories to our customers across all over the market
segment such as cheese, milk and yogurt. We deliver to customers with total brand
experience.

Selection of the site out of the locality out of region and a particular region out of the city is
based on thorough investigation into relevant factors so that we can avoid errors occurring
and to ensure selection of good location.
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Transportation

Transportation strategy involves the most effective way of reaching products to

geographically dispersed markets from plant in a cost effective way.

Two most important decisions that have to be taken in consideration while deciding upon the
transportation are transportation strategy and choice of mode of transportation.

There are five modes of transportation, rail, road, water, air and pipeline.

The mode of transportation selected by Navata is Road transportation through tempos and
trucks.

The total freight required by Navata is 7 tempos. Navata has decided to lease 4 tempos, and
others are purchased on EMI.

The tempos will take the finished products in morning around 4am and will bring the raw
materials in the evening around 6:30pm.
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Challenges and problems

Issues and Challenges at the Procurement stage

1. Meeting seasonal spikes in demand and ability to measure the quality of procured milk at
the source.
2. Complex logic of payments to producers based on fat, solid non-fat (SNF) and quality of
milk received.
3. Keeping track of truck and tanker routes, as well as capabilities for viewing, monitoring
and payment based on route or distance.
4. Visibility into the shelf life and stock-outs of raw material.

Issues and Challenges at the Production and Standardization stage

1. Manual and time-consuming processes for milk standardization calculation, handling
production planning based on nonstandard raw material, addressing growing food concerns
from consumers.
2. FAT accounting and effective tracking of FAT loss in the production process.

Issues and Challenges at the small suppliers level

1. Inadequate feeding of animals
2. More disease incidence
3. Low genetic potential of animals
4. Lack of chilling capacities
5. Exploitation of farmers
6. High production costs
7. Delayed payment of dues

Issues and Challenges at Collection location Level

1. Milk base mainly consisting of small holders
2. Involvement of too many intermediaries
3. Gaps in information
4. Absence of a screening system
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5. Lack of Infrastructure
6. Manipulation of the quality of milk by the farmers

Issues and Challenges at the Processing stage Level

1. Seasonality of production and fluctuating supply
2. Absence quality standards
3. Adulteration and Food safety
4. Lack of trained and skilled workers

Issues and challenges at the Storage and Logistics stage Level

1. Lack of cold storage facilities
2. Gap in the cold chain and transport facilities

Issues and Challenges at the Co-operative Level

1. Less number of member farmers
2. Lower participation in the decision making process
3. Losses
4. Low prices of milk
5. Inefficient services
6. Insufficient Infrastructure

Issues and challenges for Marketing

1. Majority of the Market is still unorganized
2. Acceptability of the Consumer base
3. Less penetration to the rural Market
4. Lack of transparent milk pricing system

Exceptionally aggressive Indian dairy industry has risk/challenges for the survival in the
worldwide dairy market in future. Extension is high for the development of the dairy business
in future. The advancement of Indian dairy industry is because of auxiliary changes realized
by the coming of dairy cooperatives.
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With a Compound Annual Growth Rate (CAGR) of 16 percent, dairy industry in India is
expected to reach USD 118 billion in 2017. Utilization in India is principally skewed towards
customary items. Interestingly, buffalo milk represents the biggest share of the aggregate
milk created in the nation. Since net revenues are high when contrasted with cow milk.

The Indian dairy sector is dominated by the unorganized sector comprising of 70 million rural
households. The per capita availability of milk in India stands at 289.4 grams per day and is
anticipated to reach 336 grams per day in FY 2017. Despite being the one of the largest milk
producing countries in the world, India accounts for a negligible share in the worldwide dairy
trade. Multiple limitations restrict competitiveness in world markets. The ever-increasing rise
in domestic demand for dairy products and a large demand-supply gap could lead India to be
a net importer of dairy products in the near future.
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Conclusion
Dairy industry is a very stable and predictable industry with few innovations coming in it,
like improvement in technology (which thereby increase the quality of the product, milk
supplied), society being more aware about health (different types of milk like skimmed, slim,
low fat etc coming in the market.)

Navta has a good strategy and new idea for coming into market. Navta will develop a mobile
application and online portal where suppliers can fill the daily requirement and according to
that where it is not required, unnecessary movement of the vehicle will be reduced,
decreasing the transportation cost. App will be helpful in knowing the feedback from the
supplier point of view.

Apart from only retailers, this App can be directly used by the end customer. Major
population of Surat depends on local milk providing vendors who provides milk at their place
on regular time in evening and morning according to the requirement on daily basis, but the
problem which is faced by household is low quality milk and other products. Navata gives an
opportunity to have healthy and nutritious milk on the time you want it.

As a household you can go on that App and fill the information when, on what days and what
time you require what quantity of milk and it will be available on that time at your doorstep
with good quality and packaging.
 Rural Marketing 2017

Bibliography
Economic Times, Business Standard

http://gujecostat.gujarat.gov.in/wp-
content/uploads/2013/DCHB/Eng/LIST%20OF%20VILLAGES%20ENG.pdf

https://www.google.co.in/search?q=factory+layout+of+milk+production&source=lnms&tbm
=isch&sa=X&sqi=2&ved=0ahUKEwjnprnHvPPSAhVFso8KHVa4A3wQ_AUIBygC&biw=
1146&bih=634#tbm=isch&q=factory+layout+of+milk+production+unit&*&imgrc=rqynPqO
_Yj7JEM:

https://www.google.co.in/search?q=manufacturing+of+tetra+pack+milk&source=lnms&tbm
=isch&sa=X&ved=0ahUKEwiZveaIvvPSAhVBRI8KHT76C9cQ_AUICCgB&biw=1146&bi
h=634#tbm=isch&q=+yogurt+production+layout&*&imgrc=LHvcM1cXgCkmdM