Published by MBA Skool Team, Last Updated: February 21, 2017
Marketing Strategy of Mother Dairy analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Mother Dairy marketing mix, help the brand succeed.
Mother Dairy marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Mother Dairy Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Mother Dairy Product Strategy:
The product strategy and mix in Mother Dairy marketing strategy can be explained as follows:
Mother Dairy is a leading brand offering milk, milk based products & other food items in India. Mother Dairy product portfolio is majorly divided based on the three brands Mother Dairy, Dhara and Safal. These brands cover the product strategy in the marketing mix of Mother Dairy.
Mother Dairy, the parent brand is mainly concerned with the whole dairy product range. The product depth and length is quite extensive creating a huge over all product range. The Mother Dairy product range is categorised into milk ,milk products and ice creams segments. The milk segment consists of bulk vended milk, poly packed milk, ultra heat treatment milk. The Mother Dairy milk products segment comprises of different types of curds, probiotic drinks, paneer, butter, cheese, ghee, cream, sweets, lassi, butter milk etc. The ice creams segments consists of various classic flavours, Indian versions such as kulfi and sugar free variants.
Safal which majorly deals in fruits and vegetables has wide variety of products comprising frozen vegetables and snacks, juices and drinks, jams and marmalades, pickles, tomato ketchup and puree, honey and unpolished pulses. It also caters to daily needs of fresh fruits and vegetables.
Dhara which deals in edible oils has various cooking oils like groundnut oil, olive oil, soya bean oil, sunflower oil, vegetable oil and different variants of mustard oils. All these cover the offerings of Mother Dairy.
Image: company website
Mother Dairy Price/Pricing Strategy:
Below is the pricing strategy in Mother Dairy marketing strategy:
Mother dairy a very penetrative pricing strategy.
Since its suppliers are farmers and cooperatives and needs to support them, milk prices change with inflations and certain amount of fluctuations are visible in Mother Dairy milk prices. Mother Dairy also maintains a differential pricing strategy in its marketing mix and varies according to geographical regions. Prices also vary with packages and variants of milk. Other milk products also have similar situations and we can see pricing done according to rising prices of other input factors. In the Mother Dairy ice creams segment, it keeps for regular ice creams competitive prices and premium prices for other special flavours. The Safal brand also dealing with fresh fruits and vegetables keeps market based prices. But many products under its brand faces huge competition and hence it maintains competitive prices. The edible oil sections under brand Dhara faces a lot of competition from many brands and hence as loyalty of customers is based on price and quality. As Mother Dairy has a huge infrastructure it can compensate the costs with large volumes of products.
Following is the distribution strategy in the Mother Dairy marketing mix:
Mother Dairy has a wide presence across India. In the milk industry, distribution is quite a critical part of the business and hence to tap into various regions all over the country it has 1400 retail outlets and and 1000 exclusive stores in place. As its suppliers are farmers and cooperatives, it is able to save on other middle men costs. Since Mother Dairy deals with a perishable which needs refrigeration and has very less shelf life, it produces as per demand of the regions. After being brought in from the farmers in tankers or being collected at the collection centres, it goes on for processing in the plants and then on it is delivered to it Local Area Distributors. These Local Area Distributors then send it to its exclusive Mother Dairy booth, convenience stores, supermarkets and other smaller retailers. Since consumers are able to find to Mother Dairy booths very close to their homes, it has built customer loyalty and preference.
Safal and Dhara also go through the same supply chain before it could reach the retailer to the consumers.
Mother Dairy Promotion & Advertising Strategy:
The promotional and advertising strategy in the Mother Dairy marketing strategy is as follows:
Mother Dairy has adopted a subtle yet effective marketing strategy. As it is facing stiff competition from national player Amul, Mother Dairy has moved onto smart marketing strategy wherein it is working on better communication strategies. It is now coming up with various advertising strategies to gain customer’s mind share. Recently Mother Dairy has come up with ‘Tweet to Farmer’ campaign where we thank them for giving us milk. It has roped in a mascot Makhan Singh which is targeted on the kids for various products like cheese, butter and milk. The Mother Dairy ice creams have also been quite popular because of TV commercials. Safal also takes help of green and environment friendly themes for selling many of its products. Dhara brand has been on TV commercials from quite a long time. It also has tied up with Paytm and UPI for cashless payment at its booths and hence showing it is technologically updated. Hence, this covers the entire Mother Dairy marketing mix.
About Mother Dairy:
Mother Dairy is a subsidiary of the Indian organization National Dairy Development Board. It was started in 1974 under the famous initiative Operation Flood. Mother Dairy majorly deals with manufacturing and selling of milk and other dairy products such as paneer, ghee, curd, butter milk, lassi and ice creams. It has also entered other arenas of food products including frozen vegetables, edible oils, pulses, processed foods and fresh farm products. Mother Dairy’s headquarters is located in Noida and has revenue worth Rs 7000 crores. It follows very high level of quality standards and has hence invested heavily in testing tools to maintain high product quality. Mother dairy initially based in the Delhi NCR region has started reaching into many other cities in the country. Due to its very vast distribution channel and very strong links with suppliers i.e. the cooperatives it has been able to create a sustainable value chain. Safal is a brand of the Mother Dairy and has major presence in Delhi NCR and Bangalore in the fruits and vegetables division.
It has also presence internationally in around 40 countries. Dhara is also a brand operating in edible oils section and was initiated under ‘Operation Golden Flow’.
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