CASE STUDY - 2
Mother dairy
Mother Dairy Fruits & Vegetables, a company with a billion-dollar (Rs 4,200-crore) turnover, has been a well
established player in NCR known for products the firm has been largest seller of milk in NCR, with 65% of the
revenue being contributed by milk. Amul entered delhi market five years back and in 2011 with in a span on 4years it
defeated mother dairy in terms of market share. Amul procures fresh milk and packages it. Mother dairy adds powder
milk in its products to the tune of 40% . This spoils the taste of the product. Also Amul is credited wth more
awareness and knowledge about its products amongst consumers. Amul is a leader in the ice cream segment of the
country. Their capacity to develop products and gain market leadership helped them gain substantial share in the
NCR region in the milk segment raising question marks on the brand equity of the company. Mother Dairy has been
market leader in NCR for 35 years. Losing ground to Amul in 2011 in the milk segment is forcing company to rethink
its strategy. They plan to increase their capacity and also expand procurement of the milk. One of the regions why
consumer shifted to Amul has been difference in the taste of the milk. Amul milk is fresh where as a portion of mothe
dairy milk is reconstituted . Mother dairy sells through its own outlets and home delivery is not possible where as Am
used channel and home delivery of the milk is possible. Mother dairy milk price has been less than the price of Amu
milk, still a huge number of mother dairy loyals moved to Amul. Now Mother dairy is restructuring its strategy and
systems to combat Amul.
Questions:
1. What would you suggest to Mother Dairy for its revitalization plan
2. Develop brand identity model for Mother Dairy after collecting additional information for the brand.
Answers
Answer:
1. Brand image is the perception of customers about a particular brand. Image of any brand tends to develop over time. Brand image is formed in the minds of customers based upon the experience and interaction of the customers with the brand, interactions can take place in different ways and not necessarily only the buying or using of the product and service.Brand repositioning is undertaken in order to increase a brand’s competitive position and therefore increase sales volume by seizing market share from rival products. When repositioning companies can change.
2.
Answer:
The brand image of a company is its customers' views of it. The image of every company tends to change over time. Customers' impressions of a brand are shaped by their encounters with it, which can take place in a number of ways other than via the purchase or usage of a product or service. Brand repositioning is done to strengthen a brand's competitive position and, as a result, to boost sales volume by stealing market share from competitors. It is feasible to modify characteristics of a product as well as the brand's target market when repositioning a firm. When a brand isn't working well, the corporation should consider repositioning it in order to stay afloat and maintain market share. As indicated in the inquiry, mother dairy hasn't had a good five years and has been losing market share to Amul.
According to Subhashis Basu, Business Head (Dairy Products), Mother Dairy, Fruit & Vegetable, "reinventing a brand" is necessary to bridge the gap between where the brand is now and where it should be. Basu stated that Mother Dairy has a 50% market share in Delhi-NCR and is the largest player in the dairy products segment in Delhi and NCR. Value-added products, he continued, have played a significant role in the brand's market position.
The firm is currently increasing its product variety while sticking to its tight quality criteria and changing packaging to ensure a seven-day shelf life. The idea is to provide clients with a guilt-free enjoyment. Currently, social media plays a limited role in the brand's strategy, with television advertising acting as the key form of client contact. Mother Dairy is pushing their "Happy Food, Happy People" campaign in Delhi right now. Basu also predicted that social media will be employed on a wider scale during the next two years.
Sticking to basic beliefs is still a selling factor, and word-of-mouth is still an important aspect of spreading the word about the company's products. Mother Dairy is also concentrating on ancillary values, developing campaigns and concepts and evolving milk booths in Delhi-NCR, which service a big FMCG customer base. The brand's objective is to improve its position in the FMCG industry by making sure that its products are always available. The brand's mobile tanker unit concept is proving to be successful in Mumbai. In the near future, Mother Dairy plans to extend its presence in a number of additional locations around the country.
Basu noted that the objective for the brand's development is to propel it ahead on both global and micro levels, as well as to give it a 'youthful and vibrant' image by going beyond the mother-child relationship. Furthermore, the hiring of ex-servicemen guarantees that the company's Delhi booth network functions in a disciplined manner, which is advantageous to the brand.
Basu went on to note that the peculiarities of each market are being looked at, and that Mother Dairy's Mishti Doi has a thriving market in Kolkata. It also sends items to Bangalore and Hyderabad on a trial basis to determine which ones do well there.
Explanation: