Lack of proper implementation: Dairy development programmes have not been fully implemented as per the needs of the region in different agro-climatic zones. Infrastructure: The infrastructure that is available is not upto the current world standards.
Also lack of infrastructure for offering dairy business management prorammes to the trained personnel is creating a hindrance. Opportunities Failure is never final, and success never ending. Dr Kurein bears out this statement perfectly. He entered this industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending processes. If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped.
Competition: With so many newcomers enerin this industry, competition is becoming tougher day by day. By then competition has to be faced as a round reality. The market is large enough for many to carve out their niche. Moreover due to competition, there is a chance to beter serve the market with innovative products.
Value Addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: Steps should be taken to introduce value-added products like shrikhand, ice-creams, paneer, khoa, flavoured milk, dairy sweets etc.
This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition of cultured products like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place.
Yet another aspect can be the addition of infant foods, eiatic foods and nutritional. Export Potential: Efforts to exploit export potential are already on.
Markets: The market for traditional as well as processed dairy products is expanding both at domestic and international front. IT Support: Software is now available for project formulation for dairy enterprise. It has also computerized its production processes. Mother Dairy was the first fully computerized dairy in India.
In its Anand plant all products are processed and computerized which does not have any hand touch during any stage of process. Threats Milk vendors, the un organized sector: today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.
Infestation: there are increasing incidents of chemical contaminants as well as residual antibiotics in milk. Quality: the quality of the milk is found to be poor as to the international standards. One of the reasons for these according to the EU and America is the method of milched with the help of machines, while in India. Exploitation: the liberalization of the Dairy Industry is likely to be expoited by the multinational. They will be interested manufacturing the milk products, which yield high profits.
It will create milk shortage in the country adversely affecting the consumers. Subsidy by Western Nations: there have been incidences wherein in the Western nations subsidizing the dairy products by a few means like transportation. Because of such reasons the final price of the product goes below the price prevailing in the Indian Market. They want that the milk be processed with potable Air and Water.
They want the milching of cattle done with the help of machines. However this types if system is yet to evolve in India. Because of there reasons they are reducing the market potential of Indian made products, where GCMMF holds a lions share. Competitors Amul: Private competitors and small dairy cooperatives In an organized dairy industry, dairy cooperatives account for the major share of processed liquid milk marketed in India.
The 3CS Model 8. Michael Porters Five-Force Analysis According to porter a firm must be analyzed in relation to its industry. Factors outside the industry tend to influence all the industrys firm in the same way and are thus not as important to study. To a large extent, industry structure governs the strategies open to the firms.
The profitability and attractiveness of industry is dependent of the level of competition. Competition in an industry originates from industry structure and goes well beyond the behaviour of individual competitors.
According to Porter, each industry has a potential profitability and the profitability for the firms is dependent on the competitive forces in the industry. Porter identifies five competitive forces that derive from the ambition to obtain as large share of the profitability possible. The five forces are foundation of the five force model.
It is because of his reasons that no regional competitor has grown to a national level. Cost and Resources advantages: Amul dairy is co-operative society. That means cooperation among competitive is the fundamental principle. Amul dairy is managed the norms of GCMMF and market the products under the brand name Amul which has very good reputation at domestic and international level. Here the raw material procurement is very difficult for the new entrants. Consequently capital requirement is also high.
Still new entrants are moderate. Brand preferences and consumer loyalty: there is an immense level of Brand preference of Amul in the mind of the people. The level of preference specifically in the liquid in the milk sector is that would go to other retailer if the retailer does not have milk. For any new entrant to enter it would be a very difficult task. For GCMMF the result is years of hard work and its investment in its employees as well as at different levels in the distribution network.
Inability to much the technology and specialized know- how of firms already in the industry: The technology used by Amul is imported from Denmark. It is a state of art technology in India, a firm would require a huge amount of resources.
Capital Requirements: the total investments required in the industry is huge and is a decision worth considering even for MNCs. The investments decision cover the processing costs as well as marketing costs. To compete with the brand Amul in India is difficult as Amul is synonymous to Quality. Bargaining power of supplier The objective of Amul dairy is not profiting. As it is a part of cooperative society, it runs for the benefit of farmers those are suppliers of milk and users of milk products.
According the concept of the cooperative society supplier has bargaining power to have a good return on his or her supply. However, supplier has limited rights to bargain with the cooperative society because it is made and run for the sake of mass and not for individual benefit. But it is made sure that the supplier gets his fair share of return.
There is appropriate bargaining power of the supplier. In olden days there were not any kind of cooperative societies as the farmer was exploited. But, nowadays the farmers rights are protected under the cooperative rules and regulation, which ultimately results in moderate power of bargaining from the supplier.
Even if the buyers shift to the other brands of milk, the value that they get is less than they would get from consuming Amul. Large no. He said time was ripe for the second white revolution given that the demand for milk in India is seen going up to 65 crore litres per day in from the current level of 48 crore litres per day, given urbanisation and population growth estimates.
This means that India's milk production needs to grow at around 3. To achieve this estimated growth in demand, the time is ripe for the Second White Revolution in India, he said. In Gandhinagar, Gujarat, AmulFed Dairy's capacity expansion from 35 lakh litres per day to 50 lakh litres per day further underlines its status as the largest dairy factory in India, he said. The federation's new chocolate factory in the Anand district has boosted the production capacity to 1, tonne per month, with several new and unique flavoured chocolates launched, he said.
Dr Kurein bears out this statement perfectly. To devise more effective ways of attracting and retaining skilled human resources.
Porter identifies five competitive forces that derive from the ambition to obtain as large share of the profitability possible. They will be interested manufacturing the milk products, which yield high profits. Still perishability is there at the milk vendors end. Conclusion Thus looking at the challenges and the opportunities which rural marketing offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.
Moreover in almost al categories there is presence of local retailers and processors and milk vendors. But it is made sure that the supplier gets his fair share of return. For example in the Masti Buttermilk category it faces competition cold drinks and ice Cream.
Rural marketing has an untapped potential like rain but it is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market. They want the milching of cattle done with the help of machines. Under this scheme a marginal producer intending to avail the benefits, is allocated an amounts adequate for purchase of 2 milch animals along with required other implements on a soft loan basis. It has a considerable share of the rupee spent by any Indian.