PREFACE

MARKETING MANAGEMENT:
Marketing Management is a business discipline which is focused on the
practical application of marketing techniques and the management of a
firm's marketing resources and activities. Rapidly emerging forces
of globalization have compelled firms to market beyond the borders of their
home country making International marketing highly significant and an
integral part of a firm's marketing strategy. Marketing managers are often
responsible for influencing the level, timing, and composition of customer
demand accepted definition of the term. In part, this is because the role of
a marketing manager can vary significantly based on a business'
size, corporate culture, and industry context. For example, in a large
consumer products company, the marketing manager may act as the
overall general manager of his or her assigned product. To create an
effective, cost-efficient Marketing management strategy, firms must
possess a detailed, objective understanding of their own business and
the market in which they operate. In analyzing these issues, the discipline
of marketing management often overlaps with the related discipline
of strategic planning.

THE 4 P’s OF MARKETING:

Elements of the marketing mix are often referred to as 'the four Ps':

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 Product - A tangible object or an intangible service that
is mass produced or manufactured on a large scale with a
specific volume of units. Intangible products are service based
like the tourism industry & the hotel industry or codes-based
products like cell phone load and credits. Typical examples of a
mass produced tangible object are the motor car and the
disposable razor. A less obvious but ubiquitous mass produced
service is a computer operating system. Packaging also needs
to be taken into consideration.

 Price – The price is the amount a customer pays for the

product. It is determined by a number of factors including
market share, competition, material costs, product identity and
the customer's perceived value of the product. The business
may increase or decrease the price of product if other stores
have the same product.

 Place - Place represents the location where a product can

be purchased. It is often referred to as the distribution channel.
It can include any physical store as well as virtual stores on the
Internet.

 Promotion – represents all of the communications that a

marketer may use in the marketplace. Promotion has four
distinct elements: advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs
when promotion uses the four principal elements together,
which is common in film promotion. Advertising covers any

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 communication that is paid for, from cinema commercials,
radio and Internet adverts through print media and billboards.
Public relations are where the communication is not directly
paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events.
Word of mouth is any apparently informal communication
about the product by ordinary individuals, satisfied customers
or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of
mouth and Public Relations (see Product above).
Today there are many approaches of Marketing mix enlargement.
Just the 4 P cannot describe all possibilities and needs, a company
has to deal with when thinking about itself and the market. To
fulfill all different point of views, markets and managerial studies,
there are still more P relevant. Some of them are:
 Packaging
 People
 Public Voice
 Pamper
 Politics
 Physical Evidence
 Partner
 Project

Broadly defined, optimizing the marketing mix is the primary

responsibility of marketing. By offering the product with the right
combination of the four Ps marketers can improve their results
and marketing effectiveness. Making small changes in the
marketing mix is typically considered to be a tactical change.

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The term 'marketing mix' however, does not imply that the 4P
elements represent options. They are not trade-offs but are
fundamental marketing issues that always need to be addressed.
They are the fundamental actions that marketing requires
whether determined explicitly or by default.

Marketing strategy:

If the company has obtained an adequate understanding of the customer base

and its own competitive position in the industry, marketing managers are able to
make their own key strategic decisions and develop a marketing
strategy designed to maximize the revenues and profits of the firm. The selected
strategy may aim for any of a variety of specific objectives, including optimizing
short-term unit margins, revenue growth, market share, long-term profitability, or
other goals.
To achieve the desired objectives, marketers typically identify one or more target
customer segments which they intend to pursue. Customer segments are often
selected as targets because they score highly on two dimensions: 1) The
segment is attractive to serve because it is large, growing, makes frequent
purchases, is not price sensitive (i.e. is willing to pay high prices), or other
factors; and 2) The company has the resources and capabilities to compete for
the segment's business, can meet their needs better than the competition, and
can do so profitably. In fact, a commonly cited definition of marketing is simply
"meeting needs profitably."
The implication of selecting target segments is that the business will
subsequently allocate more resources to acquire and retain customers in the
target segment(s) than it will for other, non-targeted customers. In some cases,
the firm may go so far as to turn away customers who are not in its target

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segment. The doorman at a swanky nightclub, for example, may deny entry to
unfashionably dressed individuals because the business has made a strategic
decision to target the "high fashion" segment of nightclub patrons.
In conjunction with targeting decisions, marketing managers will identify the
desired positioning they want the company, product, or brand to occupy in the
target customer's mind. This positioning is often an encapsulation of a key
benefit the company's product or service offers that is differentiated and superior
to the benefits offered by competitive products. For example, Volvo has
traditionally positioned its products in the automobile market in North America in
order to be perceived as the leader in "safety", whereas BMW has traditionally
positioned its brand to be perceived as the leader in "performance."
Ideally, a firm's positioning can be maintained over a long period of time because
the company possesses, or can develop, some form of sustainable competitive
advantage. The positioning should also be sufficiently relevant to the target
segment such that it will drive the purchasing behavior of target customers.

INTRODUCTION
Milk is a unique marketing product due to its very perishable
nature, unique sales timing, need of a very strong distribution
network and its sensitive usability. It is a complete food and due
to its high nutritional value is consumed by people of all ages and
especially children. Milk is highly attached with Indian’s emotional
and religious values and cow is given equivalent status to mother
just because it provides milk to human beings. Milk is provided to
children in place of mother’s milk. So, it’s clear that people’s
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perception about the quality of a specific brand of milk becomes a
very influential factor in the sales ability of the brand. This
uniqueness of an unquantifiable influence of people’s perception
of brand and quality on the sales makes milk marketing a real
challenging marketing job. Milk is a hand to mouth product and a
significant proportion of it is consumed directly in the households.
Other consumption forms like tea, coffee, curd etc. are also
almost direct consumption forms. So, people remain very
sensitive about the purity of the milk they are consuming.
Consumers, in general, quantify the quality of a product by
looking, touching, tasting and smelling it. Milk being a liquid and
whitish in colour has high chances of getting adulterated. There
are high chances of milk getting germ infected. Moreover, there
are differences in taste and smell in the milk available in the
market. All these factors combined make milk a product for which
quality and purity of the milk consumed is mostly dependent on
the trust on the supplier. Other than people’s perception of
quality of a brand, availability is the second most important factor
in marketing of a particular milk brand. As milk is more a
commodity than a product, there are not many differentiating
factors between different brands and switching cost is really low
for consumers and therefore, brand loyalty is really very less. So,
the logistic setup supporting the milk marketing operations has to

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be in place and any delay in the system would lead the
consumers to shift to an alternate brand which guarantees
regular supply.

Milk market at every place has its own dynamics and traits, which
are closely related to demographic profile, cultural outlook and
habits of the people staying there. So, the success of a particular
milk brand in a specific region will depend upon the fact that how
specifically it understands the demands of the specific markets
and cater to it.

Milk being a commodity of daily necessaries has its own

peculiarities and dynamics. It’s a commodity which is needed to
be supplied daily at correct time and place. Sudha has been the
major supplier of milk in Jharkhand for the last 30 years and
created consumer awareness about pouch milk in different milk
markets of Jharkhand. Even today, Sudha is the sole flag bearer of
quality pouch milk in Jharkhand with rest of open space filled by
local players.

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 The Indian dairy INDUSTRY
PROFILE:
Growth scenario of dairy products in India

India is the world's highest milk producer and all set to become
the world's largest food factory. In celebration, Indian Dairy sector
is now ready to invite NRIs and Foreign investors to find this
country a place for the mammoth investment projects. Be it
investors, researchers, entrepreneurs, or the merely curious –
Indian Dairy sector has something for everyone.

Milk production is relatively efficient way of converting vegetable

material into animal food. Dairy cows buffaloes goats and sheep
can eat fodder and crop by products which are not eaten by
humans. Yet the loss of nutrients energy and equipment required
in milk handling inevitably make milk comparatively expensive
food. Also if dairying is to play its part in rural development
policies, the price to milk producers has to be remunerative. In a
situation of increased international prices, low availabilities of
food aid and foreign exchange constraints, large scale
subsidization of milk conception will be difficult in the majority of
developing countries.

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Hence in the foreseeable future, in most of developing countries
milk and milk products will not play the same roll in nutrition as in
the affluent societies of developed countries. Effective demand
will come mainly from middle and high income consumers in
urban areas.

There are ways to mitigate the effects of unequal distribution of

incomes. In Cuba where the Government attaches high priority to
milk in its food and nutrition policy, all pre-school children receive
a daily ration of almost a litre of milk fat the reduced price. Cheap
milk and milk products are made available to certain other
vulnerable groups, by milk products outside the rationing system
are sold price which is well above the cost level. Until recently,
most fresh milk in the big cities of China was a reserved for
infants and hospitals, but with the increase in supply, rationing
has been relaxed.

In other countries dairy industries have attempted to reach lower

income consumers by variation of compositional quality or
packaging and distribution methods or blending milk in vegetable
ingredients in formula foods for vulnerable groups. For instance,
pricing of products rich in butter fat or in more luxury packaging
above cost level so as to enable sales of high protein milk
products at a somewhat a reduced price has been widely

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practiced in developing countries. This policies need to be
brought in Indian Dairy scenario.

Because future market developments are almost always difficult

to predict, it is common to use simulation models such as the one
developed for this study to evaluate a number of different
possible scenarios. Because sales of high-protein whey products
will continue to grow either with or without promotional efforts,
we assume that the principal effect of promotion will be to
increase the growth rate of domestic (but not export market)
sales of high protein whey products. To evaluate the impacts of
promotion, we compare the dairy farmer revenues and Whey
product manufacturer margins resulting from assumed growth
rates with and without promotion. To undertake the analyses, we
assume that a successful promotional campaign can be mounted,
and also assume the impact that the promotional campaign will
have on the growth rate of domestic sales.

MARKET SHARE
TNCMPF is the leading company in the Indian market, with a 23%
share of the market's value. In comparison, GCMMF generates
15.7% of the market's revenues.

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Company TNCMPF (Tamil Nadu Cooperative Milk Producers'
Federation) : 23.00%
GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd) :
15.70%
MPDMSM (Madhya Pradesh Dugdha Mahasangh Sahakari
Maryadit) : 10.00%
Other: 51.20%
Total : 100.0%

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INTERNSHIP REPORT Page 13