Dairy Business

Management
Study Group-11
Samarjit Sahoo- 22096
Seetha Rahul- 22061
Valleppa Raghavi- 22085
Sudhanshu Ingole- 22076
M. Sahidul Islam-22045
Danone's Failed Dairy
Business in India

Group No- 11
Introduction

 Danone is an International French dairy brand, it is one of the most

aggressive dairy markets globally
 The company Expected Growth: High turnover, replicating global success
(50% market share in some regions)
 Danone entered India in 2011, aiming to capture a share of the world's
largest milk-consuming nation
 Mainly Product Focus- Plain yogurt and flavored yogurt drinks, targeting a
premium segment

3 March 16,
Challenges & Mistake
01. Supply Chain and Distribution
Inability to build a network competitive
with established players like Amul and
Mother Dairy.

02. Product Mismatch 03. Pricing 04. Retailer Margins

Focus on plain yogurt Premium pricing Danone failed to offer

and yogurt drinks wasn't strategy didn't competitive margins and
aligned with Indian resonate with price- incentives to retailers, limiting
consumer preferences sensitive consumers their shelf space

4 March 16,
Exit
 After 2018, struggling for seven
years, Danone decided to exit the dairy
business in India
 Danone's exit served as a cautionary tale
for other multinational companies,
highlighting the need for careful
consideration and adaptation when
entering the Indian market

5 March 16,
Thank you
 Overview of the Indian Dairy Industry

 The Indian dairy industry is a powerhouse,

holding the title of the world's largest milk
producer with a staggering 24% share of
global milk production in 2021-22.
 This translates to an astounding 221.1
million tonnes of milk produced annually,
marking a 61% increase in just eight years
from 2013-14
 Introduction
 Country Delight is an Indian online milk and grocery delivery
platform. Founded in 2013 by Chakradhar Gade and Nitin
Kaushal, it is operational across 18 cities in 11 states in the
country
 Headquarters: Gurugram, Haryana
 Country Delight is an Indian dairy products delivery service that
aims to provide fresh, pure, and unadulterated milk and milk
products to customers’ doorsteps
 The company’s focus on quality and convenience has made it a
popular choice among consumers who value healthy and
trustworthy dairy products
 Product Overview
 Country Delight offers a range of dairy
products, including milk, curd, paneer (cottage
cheese), ghee (clarified butter), and buttermilk
 The products are sourced directly from local
dairy farmers, ensuring freshness and purity
 Customers can place orders through the
Country Delight app or website, and the
products are delivered to their homes early in
the morning
 Challenges & Solutions faced By Dairy startups

Challenges Solutions

Implementing strict quality

Maintaining consistent quality and freshness control measures at every
across a large geographical area stage of the supply chain.
Investing in advanced
technology and logistics
Ensuring timely delivery and efficient logistics infrastructure.
Building a strong brand
identity and engaging in
Building brand awareness and trust in a targeted marketing
competitive market campaigns.
Constantly innovating and
Adapting to changing consumer preferences introducing new products
and demands and services.
Thank You!!
 Cost-Effective
Investigation of
Milk Production in
Gujarat: Animal
Husbandry as a
Crucial Pillar
 Introduction
 Animal husbandry plays a vital role in Gujarat's agricultural economy, with 42% of
families relying on it for income.
 Live stock and milch animals support agricultural operations and provide supplementary
income, especially for marginal and small farmers.
 By-products from crop production serve as key ingredients for animal feed, creating a
synergistic relationship.
 Gujarat boasts a leading dairy cooperative sector, though the organized sector only
covers 20% of total milk production, highlighting the vast potential of the unorganized
sector.
 Prime Minister Modi emphasizes the immense opportunities within animal husbandry for
doubling farmers' income.
 The NSSO survey (2013) reveals 1.75% of rural households derive their primary income
from livestock farming.
 Milk production forms an integral part of India's farming system, primarily dominated by
small and marginal producers with 1-2 animals, resulting in a low-input-low-output
system.
 Result and Discussion
 Buffaloes dominate the total herd strength in Gujarat, followed by local cows
and crossbred cows.
 buffaloes account for 39.19% of the total livestock population in Gujarat, while
cattle account for 35.81%. This further highlights the dominance of buffaloes in
the state's dairy sector.
 Buffaloes have the highest average age, followed by crossbred cows and then
local cows.
 the average lactation period for buffaloes is 244 days, compared to 235 days for
crossbred cows and 229 days for local cows. This longer lactation period is a key
factor contributing to the higher milk yield of buffaloes.
 Buffaloes have the lowest milk production cost per liter, followed by crossbred
cows and local cows.
 The milk production cost per liter for buffaloes (Rs. 29.90) is significantly lower
than that of crossbred cows (Rs. 30.90) and local cows (Rs. 31.40). This lower
production cost further enhances the profitability of buffalo milk production.
 Approximately 55% of animals are milch animals, with crossbred cows exhibiting
the highest proportion (78.6%).
 Average milk yield varies across species, with crossbred cows exhibiting the highest
production, followed by buffaloes and then local cows.
 Milk production cost analysis reveals the highest expense for buffaloes
(Rs. 203.50/animal/day), followed by crossbred and local cows respectively.
 Feed and fodder constitute the most significant cost component, accounting for
61.34% of total milk production expenses.
 Buffaloes emerge as the most profitable animal, generating the highest net return
(Rs. 45.40/animal/day) compared to other cattle breeds.
Thank You!!
Yakult in India-
Yakult lady
 INTRODUCTION
 Yakult: A global leader in probiotic beverages, founded in 1935 in Japan, focused
on promoting gut health and overall well-being.
 Yakult Danone India (P) Ltd is a Joint Venture (JV) between Yakult Honsha, Japan
and Groupe Danone of France, both of which are global probiotic leaders. The JV
was formed in 2005 to manufacture and sell probiotic products in the Indian
market.
 Yakult, a probiotic drink was launched in India in 2007, and is presently available
in Delhi, NCR, Nasik, Chandigarh, Punjab, Jaipur, Mumbai, Pune, Hyderabad,
Chennai and Bangalore
 As a pioneer in probiotics, Yakult has formidable research capabilities and product.
Technologies in the field of probiotics. Yakult Central Institute for Microbiological
Research has for years researched the use of intestinal bacteria as a factor in health
maintenance, conducting a wide range of studies on the benefits of microorganisms
in Japan and in India too.
 Business Model and Working Model
Yakult’s business model is producing  Unique product: Yakult offered a novel
healthy probiotic beverages with probiotic beverage with scientifically
investment in R&D and selling them to proven health benefits, targeting a
local households worldwide. The value specific niche market.
Yakult provides to customers is shown in  Direct marketing: Yakult Ladies, trained
the following company’s principle called women distributors, delivered the product
“Shirota-ism”: directly to consumers' doorsteps, building
trust and establishing a personal
 Preventive medicine connection.
 A price anyone can afford  Educational approach: Extensive
 A healthy intestinal tract leads to a educational campaigns focused on raising
longer life. awareness about probiotics and their role
in gut health.
 Challenges Faced
 Besides doctors, most consumers do not know much about probiotics.
Making them pay Rs 10 for a 65 ml bottle is a challenge. Yakult needs
to be stored at a controlled temperature of below 10 degrees. Celsius.
This is why Yakult have been prompted to provide coolers at many
stores.
 Educating consumers about probiotics and their benefits was crucial.
 Adapting communication and marketing strategies to the Indian context.
 Building a network of Yakult Ladies and ensuring efficient cold-chain
logistics.
 Balancing affordability with profitability in a price-sensitive market.
Thank You!!