AMITY UNIVERSITY

AMITY COLLEGE OF COMMERCE AND FINANCE

Made by: - CHETAN MITTAL

ROLL No: - A3104613169
Section: - B
4TH SEMESTER (B.COM HONS.)

MOTHER DAIRY:

INTRODUCTION:
Mother Dairy was set up in 1974 under the Operation Flood Programme. A wholly owned
company of the National Dairy Development Board (NDDB).
It is Mother Dairys constant endeavour to ensure that milk producers and farmers regularly and
continually receive market prices by offering quality milk, milk products and other food products
to consumers at competitive prices and uphold institutional structures that empower milk
producers and farmers through processes that are equitable.
It was set up initially to cater to the demand of the Kolkata urban agglomeration spread over the
Kolkata Metropolitan area, later it reached out to the consumers of other districts also. The
commissioning of the Dairy started in July 1978. Initially, the management of Mother Dairy was
looked after by the National Dairy Development Board . On 24th March 1982 , the then
Honourable Chief Minister Shri Jyoti Basu dedicated Mother Dairy Calcutta to the rural milk
producers and urban milk consumers of West Bengal.
Mother Dairy has over the past 3 decades, harnessed the power of farmer cooperatives to
deliver a range of delicious products and bring a smile on your face.

ORGANISATION FUNCTIONS:
Mother Dairymanufactures, markets & sells milk and milk products under the Mother Dairy
brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils,
Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit & Vegetable
Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit juices at a national
level through its sales and distribution networks for marketing food items.

Varieties in Milk :
Sl.No
1
2
3
4
5

Product

Fat content

Solid not Fat (SNF)

Water

Double Toned Milk

Toned Milk
Full Cream Milk
Cow Milk
Skimmed Milk

1.5%
3.0%
6%
3.5%
0.5%

9.0%
8.5%
9%
8.5%
9.5%

89.5%
88.5%
75%
88%
90%

VALUE ADDITION CONCEPT:

Mother Dairy transforms milk into various dairy products like
1. Dahi
2. Lassi
3. MishtiDahi
4. Ghee
5. White Butter
6. Table Butter
7. Cheese
8. UHT Milk

PRODUCTION SYSTEM:

Processing of milk is controlled by process automation whereby state-of-the-art microprocessor

technology is adopted to integrate and completely automate all functions of the processing
areas to ensure high product quality, reliability and safety.

At mother dairy, the processing of milk is done by process automation whereby state of the art
microprocessor technology is adopted to integrate and completely automate all functions of the
milk processing areas to ensure high product quality/reliability and safety. There are four ways
of milk processing
Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles that
are invisible to the naked eye.
Secondly, Standardisation which help to maintain uniformity by raising or lowering its fat and
SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per
prescribed PFA norms.
Thirdly, it is Homogenization which improves palatability of milk and Finally, Pasteurization,
which kills all pathogenic bacteria present in the milk and thus making it safe for consumption.

Packing:
The Filling and packing is considered to be most sensitive operation having appropriate access
control. Zoning principles are applied in these areas to avoid any cross contaminations in our
Finished Product. Online quality control checks (e.g. net weight, leakages, seal integrity, batch
coding, packing material quality, filling temperature etc.) are carried out and recorded by our
Packing In-charges.
Only QC approved and released Packaging materials are used for packing operations.
Packaging material used for our products is with the objective of retaining taste, freshness and
unique natural appeal.

RESPONSIBILITY OF PRODUCTION MANAGER:

Innovation
Mother Dairy established its Innovation Centre, the first of its kind in Indias organized Dairy &
Food sector, in April 2010 at its central location in Delhi,. It has been setup for the purpose of
developing healthy, nutritious and convenient Dairy and Horticulture products.
Mother Dairys R&D Team is continually engaged into development of novel products and
innovative packaging systems as well as renovating its existing products at its state of the art
Innovation Centre. The major thrust has been on developing functional foods targeting
consumers health & wellness, supplying products with the taste of western classic delicacies
and replicating the home made taste in Indian traditional products

The Centre is fully equipped with state of the art modern laboratory equipped with sophisticated
lab scale processing equipment. In order to support the analytical and shelf life studies

associated with product development activities, the Centre is equipped with highly sophisticated
instruments. Packaging innovations are also taken up at Innovation Centre with various
packaging materials and those are tested for various parameters which include Tensile and Seal
Strength, Bursting Strength, Automated Leak Detection, Compression Strength etc.
OPERATION STRATEGY:
Implementing robust Mother Dairy Management System, which is an Internal System,
developed to meet the all Process Requirements based on National & International Standards.
Implementing International Management System Standards (ISO)
Bench Marking, Best-In-Class requirements
Process Optimization: Constantly working on latest innovative Technologies
Capability Development across the Organization
Auditing &Assessments: Mother Dairy has established a frame work for Auditing &
Assessments of Complete Food Chain
Consumer Satisfaction
It is our endeavour to create a culture of Total Quality where continuous improvement of our
people, processes and products becomes a way of life.

STRATEGIES FOR COMPETITIVE ADVANTAGE:

The companys derives significant competitive advantage from its unique distribution network of
bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the
year 1995 have shown continuous growth over the years and today boasts of approximately
62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide
range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi&Flavored Milk
and most of these products are available across the country.

STRATEGY FORMULATION PROCESS:

Mother Dairy has commitment with excellence. The evolving needs of customers drive to
continual improvement in processes and systems.
1. Apply state of the art technology and processes to enhance productivity that ensures quality
at competitive price.
2. Apply processes for clean production, pollution prevention and optimize resource utilization in
all operations.
3. Follow food safety management system and apply HACCP (Hazard Analysis Critical Control
points) principles to provide safe products to customers.

4. Develop and empower our people for maintaining a vibrant work environment, which
encourages excellence.
5. Comply with applicable regulations and legislations.

Distribution Channels:
a) Token Distribution: Also, termed as Lohekibhains (metal buffalo), is an automated
milk vending machine.
b) Distributors: The packaged milk is distributed via the distributor network throughout
the city.

PRODUCTS AT MOTHER DAIRY

Milk
Dairy Products

Ice cream
Edible oils
Fresh fruits and Vegetables
Frozen
Juices and Fruit beverages
Processed food
Grossary

OUTSOURCING
Galaxy Management services has signed an agreement with Mother dairy in July2009 to
provide a suite of recruitment services including job outsourcing work and Customer care
operations for the specific business needs and under cost saving exercise.

LIST OF MAIN EQUIPMENT:

Turbo Mixers / Blenders.

Plate Heat Exchangers

Butter melting vat

HTST Pasteurizer with FDV

Two stage Homogenizer

Aging vats

Continuous Freezers with PLC control, make Tetra Pak, Denmark

Candy making & flow wrapping machine, make Tetra Pak. HOYER.

Cup & Cone filling machines

Hardening Tunnel for Novelties

Semi Automatic CIP system

Metal separator

Cold rooms

Allied Service Equipment like Refrigeration, Boilers, Generators, etc.

LOREAL
L'Oral is the second leading beauty and personal care manufacturer in the
world, following Procter &Gamble at number one. Excluding shaving,L'Orals
market ranking rises to number one globally. The company has a
comparatively narrow focus, exclusively in beauty and personal care, as
opposed to some of its key rivals Procter & Gamble and Unilever which are
present in home care and beauty and personal care. L'Orals exclusive
focus has enabled it to make more targeted investment in R&D and
advertising, growing to be a formidable force in the industry. In colour
cosmetics, L'Oral is the leading provider at over 19%, with Este Lauder a
distant second at 8% market share. It has also made strong strides in skin
care through a number of launches based on cutting edge technology.
Despite its good market coverage, the companys market share dropped
marginally. L'Oral has been affected by lower hair care sales in Western
Europe. In addition, market growth was partly driven by commodities such as
oral care and bath and shower in which L'Oral has limited presence.

L'Oral Groupe
Headquarters: France
Regional involvement: Global
Category involvement:Skin care, colour cosmetics, hair care, fragrances,
mens grooming, sun care

World BPC share 2011: 9.7%

World BPC value growth 2011: 4.8

Head office

Centre Eugne Schueller, L'Oral head office, in Clichy, France

L'Oral Group has its head office in the Centre Eugne Schueller in Clichy, Hauts-deSeine, near Paris.[63] The building, constructed in the 1970s from brick and steel,
replaced the former Monsavon factory, and employees moved into the facility in 1978.
1,400 employees work in the building.[64] In 2005, Nils Klawitter of Der Spiegel said "the
building, with its brown glazed faade of windows, is every bit as ugly as its
neighbourhood." Klawitter added that the facility "gives the impression of a high-security
zone" due to the CCTV cameras and security equipment. The world's largest hair salon
is located inside the head office building. As of 2005, 90 hairdressers served 300
women, including retirees, students, and unemployed people, per day; the customers
are used as test subjects for new hair colours. [65]
L'Oral USA has its headquarters in New York City;[66] its New Jersey headquarters is
in Berkeley Heights.[67]

PRODUCTS
LOral got its start in the hair-colour business, but the company soon branched out into
other cleansing and beauty products. LOral currently markets over 500 brands and
many thousands of individual products in all sectors of the beauty business: hair colour,
permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The
company's products are found in a wide variety of distribution channels, from hair salons
and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and
direct mail.

LOral has six worldwide research and development centres: two in

France: Aulnay and Chevilly; one in the U.S.: Clark, New Jersey; one
in Japan: Kawasaki, Kanagawa Prefecture; in 2005 one was established
in Shanghai, China, and one in India. On 17 March 2006, L'Oral purchased cosmetics
company The Body Shop for 562 million.

L'Oral's advertising slogan is "Because I'm worth it". In the mid 2000s, this was
replaced by "Because you're worth it". In late 2009, the slogan was changed again to
"Because we're worth it" following motivation analysis and work into consumer
psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger
consumer involvement in L'Oral philosophy and lifestyle and provide more consumer
satisfaction with L'Oral products. L'Oral also owns a Hair and Body products line for
kids called L'Oral Kids, the slogan for which is "Because we're worth it too"

L'Oral falls below industry growth

A: In 2008, the acquisition of Yves Saint Laurent helps the company beat
the global growth rate.
B: 2009 is a difficult year for the company with strong exposure to
premium cosmetics, which are hard hit by the economic downturn.
Consequently, the company's growth rate falls below that of the global
beauty and personal care market
C: L'Orals global growth in beauty and personal care falls slightly below
that of the industry in 2011, when industry growth is partly driven by
commodities such as oral care and bath and shower. L'Oral has no
presence in oral care and is a small player in bath and shower. In addition,
its hair care share falls due to Western European weakness.

L'Oral focuses on skin care

In recent years L'Oral has been focusing on skin care, recording the
highest growth rate in terms of CAGR between 2006 and 2011, making
breakthrough launches such as Visionaire. L'Oral surpassed Procter &
Gamble as the leading player in China skin care, projected to drive absolute
value growth between 2011 and 2016. It is now venturing into skin care
devices with Clarisonic.

L'Oral ranks number one in colour cosmetics leading its immediate rival
Este Lauder by 12 percentage points. L'Oral operates a number of brands
across various pricing tiers catering to a wide range of target audiences. It is
now pushing colour cosmetics beyond immediate BRIC markets, as
indicated by its recent acquisition of Colombian colour cosmetics brand
Vogue. In addition, it has also agreed to purchase Urban Decay, a US brand
catering to a younger audience.
While L'Oral made strong strides in skin care and colour cosmetics, hair
care has been relatively less dynamic in developed markets although the
company has announced exciting launches in the coming months.

L'Oral strong in colour cosmetics but long-term

competition looms
L'Orals global market share in colour cosmetics at over 19%, while
its immediate rival Este Lauder in the same category at a distant
8%, reveals a strong market position for L'Oral. In 2011, L'Orals
market share remained static, which is a good performance given
the competitive nature of the market. Despite a strong market
position and good performance, there are indications of weaknesses
in its operations in certain markets. The key challenges are in the
Russian market, where Coty is gaining share, while in China Este
Lauder is increasing its outlets. Chanel is gaining ground in one of
the most lucrative markets, Middle East and Africa, while Latin
America is dominated by direct sellers. The problem is further
compounded by its portfolio extending across a number of beauty
and personal care categories diluting the company focus in terms of
research and development. In addition, increasing cost of
production with soaring commodity prices has been exerting
pressure on operating margins in the industry, leaving less room for
R&D investment. L'Orals strong market position in colour
cosmetics lends it immunity from looming competition in the short
to medium term, but it needs to address them to secure its position
in the long run.

Losing ground in Russian colour cosmetics

Russia is L'Orals leading market in Eastern Europe,
making up for nearly 55% of its regional colour cosmetics

portfolio. L'Oral is the leading player in Russias colour

cosmetics market at over 18% value share, while the
immediate rival Oriflame is at nearly 14% value share.
L'Oral lost 130 basis points in Russias colour cosmetics
market in 2011 along with declines for the next three
competitors. The difficult economic conditions have
contributed to the loss of market share, but its next two
competitors Oriflame and Avon are suffering from the
slow growth in direct selling. As for Procter & Gamble,
colour cosmetics is a relatively small part of its total
portfolio. Procter & Gamble is currently trying to revive
market share growth for its key category laundry.

ZARA

In 1963, Amancio Ortega started a small company in Spain that manufactured womens
pajamas and lingerie products for garment wholesalers. In 1975, after a German
customer cancelled a sizable order, the firm opened its forts Zara retail shop. The
original intent was simply to have an outlet for cancelled orders but the experience
taught the firm the importance of a marriage between manufacturing and retailing a
lesson that guided the evolution of the company ever since. The first Zara clothing store
opened in 1975 in Spain as a small retailer selling mens and womens clothing.
Since then Zara chains have grown into retailing giants with almost 1000 stores
worldwide and an impressive sales record. The success of Zara is partly to do with the
appeal of its mens and womens and childrens fashions and accessories that display
unique style but at real world prices. But it is also partly as a result of their collaborative,
digital networks that link Zara with its suppliers and customers. These advances have
enabled Zara to deliver tailored products quickly and reliably, creating what the
company terms a value net for all the firms in the supply network. This value net is a
key part of the operations strategy, allowing customer choices to be simultaneously
transmitted to all supply partners who then deliver components as need by other
partners.

Steps in Zaras Marketing Channel

In order to make sure that the marketing channel is streamlined for success and that
Zara is able to produce quality products in just a short period of time, the management
organized every business process and activities from design to retailing.
1. Design and Order Administration
In order to support the strategy of the company to have a strategic supply chain
management, changes and improvements were introduced in the design and order

administration process. In order to ensure product quality, the company designs its own
products. There are more than 300 people who work in the order and administration
department. These people produce designs that the company will make into clothing
items. In order to make the supply chain more effective, the order and administration
team works on designs for the current season as well as the next season, making the
process more efficient and enabling the company to update and develop the current
designs very quickly.
2. Production
The companys production process supports the companys strategic supply
chain management. Zara manufactures approximately 50 percent of its products in its
own network of 22 Spanish factories but use subcontractors for all sewing operations.
This enables Zara to focus on the processes that adds to organizational capabilities.
Many of Zaras suppliers are based in Spain and Portugal and Zara exploits this
geographical proximity in order to ensure quick response to orders which is critical for
fashion products.
3. Distribution
All products pass through Zaras major distribution center in La Corua. The 5storey, 50,000 square meter distribution center employs some of the most sophisticated
and up-to-date automated systems. With a workforce of 1200, the distribution center
normally operates four days per week with the precise number of shifts depending on
the volume of products that have to be distributed. Orders for each store are packed
into separate boxes and racks (for hanging items) and are typically ready for shipment 8
hours after they have been received.
In 2001, the distribution center shipped 130 million pieces. 75 percent of these
shipments were to stores in Europe. Fashion garments represent around 80 percent of
Zaras products and the rest are more basic items. Contractors using trucks bearing
Zaras name pick up the merchandize at La Corua and deliver it directly to Zaras
stores in Europe. The trucks run to published schedules. Products shipped by air are
flown from either airport in La Corua or the larger airport in Santiago. Typically, stores
in Europe receive their orders in 24 hours, the United Sates in 48 hours and Japan in 48
to 72 hours. Compared to similar companies in the industry, shipments at Zara are
almost flawless 98.9 percent accurate with less than 0.5% shrinkage.
4. Retailing
Stores usually place their orders and receive shipments twice per week. Orders
have to be placed at pre-designated times.
The store plays an important role in the Inditex business model that ranges from
production up to end distribution. The overall experience of the customer in the store in

considered. Apart form the fashion supply, the interior design of the store, coordination
of collections, maximum care over window displays and customer care are some of the
elements that guarantee this experience. The stores where Zara concentrates the
majority of its investment are the essence of the groups chains, for which reason the
location in the main commercial areas of cities and care over interior design take on
vital importance for the company. The store is Zaras main image vehicle.
Apart from its location, its window designs and interior design, customer care is
one of the elements that Inditex takes most care of: its relationship with consumers.
Personnel receive specific c training on customer care as one of the main intangible
values of the store. Inditex establishments are thought out so that the encounter
between the customer and fashion can take place in a pleasant environment. Store
personnel with supervisors as the main drivers of quality of service, encourage freedom
and comfort of the visitor by taking an active role in the shopping process exclusively
when the customer requests this (Inditex 2007)

Marketing Plan Mix

Zara Marketing Mix

Promotion of the Online Shop

Zara has a unique marketing policy of Zero investment in marketing. Instead, the company
uses the money it would have used to advertise in opening new stores. The striking thing about
Zara is that it has found differences that matter to the consumers and used that to differentiate
itself from the rest of the competition. In other words, its key marketing strategy is based on
exclusivity, experience, differentiation and affordability.
In essence, the company relies heavily on the word of mouth advertising more than anything else
does. The products target population in age group 18-40 that live in the cities. This is because;
this group is the most fashion conscious, more than any other group. Specifically, the market
segment comprises of women (65%), men (25%) and children (15%) all of them being fashion
conscious, educated and fall in the middle class category.
Their commitment is clearly visible in the attention they pay to each and every detail of their
showrooms. The elegance with which the windows are laid out and the way the shop attendants

are groomed, everything is worked out according to a plan that is very precise. Every store
manager has free access to talk to their counterparts at Spain regarding the marketing and
improvement strategies.
Small and regular product shipments are designed to keep the inventory scarce and fresh;
compelling customers to buy urgently and frequently visit the store to check what is new. Bar
coding, online shopping and computer, aided purchases are all measures designed to increase
sales and make it a global brand.

Price
Because the concept of Zara is to provide its products at a reasonable price to its
customers, it follows that customers find its prices quite affordable. However, we have to
know that we are referring to the cream customers who would compare Zara with Hugo
Boss or others. Some Zara stores might be very premium whereas others will be very
much affordable. But mostly Zara has a premium pricing strategy. The pricing is made
possible by optimizing development and training costs.

Place / Distribution
Zara is very unique and one of the things that make it a stand out brand is the fact that it
is a vertically integrated retailer. What this means is that it designs, manufactures and
distributes the products itself. This approach seems to be working for it because it has
managed to establish itself as one of the leading Spanish fashion stores globally. Zara
is present in over 30 different countries including India and its expansion is ongoing.
Therefore, you will soon be seeing more Zara stores in more countries.
In fact, 90% of Zara stores are owned by the company and the rest are joint ventures of
franchises. This means that customers experience the same environment when
entering one of the Zara stores be it they are in London, New York, Paris, Rio de
Janeiro, New Delhi etc.: the stores are spacious, well-lit, modern and predominantly
whiter and walled with mirrors.
Most people say Zaras real strength lies in its culture, something that can never be
replaced for anything. One of the things it does is that it hires young designers and
trains them to make quick decisions. In other words, while good decisions are
encouraged, bad decisions are not severely punished.
Facing several problems related to rent space, every mall owner in India is ready to
provide free space to Zara, which speaks volumes about the popularity of this brand in
urban areas and the long way it has traveled.

It is unbelievable but the fact is Zara comes out with at least 500 or more new designs
per month. This, coupled with the brand name Zara enjoys, helps to price their products
according to their will and wish, as new trends tend to be a bit costly. However, the
people at Zara are sensible enough as pricing is quite competitive with the brands like
Pantaloons, and Phoenix etc in India as well as other parts of the world

Product
Zara is known as the Coca Cola of fashion. Such is the craze of this brand among the
fashion enthusiasts. One of the major strength of the company is that it is able to
respond very quickly to the changing needs of the customers. The company does not
source its manufacturing process, making it fully in control of the products it produces.
Its unique selling preposition is to imitate or create the latest trends. In most cases, new
styles are normally available on the sales stores within two weeks, four weeks
maximum. If a product is not selling in the stores, it is immediately pulled from the
stores.
However, when it comes to India, it has a few problems to sort out, prominent among
those being the lack of seasonal variations in their range. Secondly, it needs to tackle
and cope up with the cultural needs of the local people which is a big challenge and
Zara is working to reach out local people by coming up with designs that integrate
modernism with local traditions.

Marketing Channel Structure

What sets Zara apart from other companies is its well-designed supply chain network.
Zara started its operation in the 1970s. It was opened by Amancio Ortega in Spain.
From then on, Zara continued to grow and how has nearly 900 stores around the world.
One of the elements of Zaras success as a fashion empire is its highly effective supply
chain system that enables the company to control the entire marketing channel and its
processes and steps from textile manufacturing to retail.
Zara also has an extremely effective global network which is consist of buyers and
trend-spotters. The responsibility of these people is to find inspiration by walking around
the metro in different locations, navigate the world-wide web and to scan newspapers
and magazines, and visit fashion shows in search for new trends for men, women, and
children clothing. From the information and inspiration that they gather, they create
clothing pieces that have the catwalk look but at the same time affordable. Zaras
clothing products are very attractive to people of all ages and all walks of life.
The success of this fashion brand can be attributed to its marketing channel and supply
chain management. Supply chain or value chain management is composed of the
operational or tactical activities and can be defined as managing the entire chain of raw
material supply, manufacture, assembly and distribution to the end consumer (Jones

1989 cited in Lowson 20002). Christopher (1998) defines supply chain management as
the management of upstream and downstream relationships with the suppliers and
customers to deliver superior consumers value at less cost to the supply chain as a
whole.

Summary of Zara current market situation

Zara is a publicly listed company and belongs to the Inditex Group, founded by
Amancio Ortega in 1975 in Spain. Zara always continues to bring excitement to
fashion and fulfils customer demands. Currently Zara has 1,600 stores in 77
countries and continues to force its logistics system to complete stock rotation
every 15 days. Zara needs 14 days to develop a new product and deliver it to
stores and launches around 10000 new designs each year.
Zara is moving forward with its successful entry into the digital world and
continues to expand and manage its online presence: over a million daily web
site visits and more than 14 million Facebook fans. The online expanding
strategy in international key markets as the U.S. and China is one of the hot
topics.
Zaras online shops feature all major functions, although does not correspond
with Zaras local presentation (prestige image), even more a bit disappointing,
especially compared with H&Ms creative way to convey fashion online with the
dress room function, moreover, by saving outfits or share on Facebook, Twitter,
send a link or e-mail. Online expenditure in sales not only increases the
economical profit, it boosts the online ranking worldwide and creates an added
value of the brand.