Mother Dairy is a dairy company based out of India that manufactures, distributes and sells milk and milk products. The company which was registered in the year 1974 is a wholly owned subsidiary of the National Dairy Development Board. Other than milk, milk products, chocolates and ice creams the company also manufactures edible oil and oil products under the label Dhara, vegetables and vegetable products under the label Safal amongst others.
Though Mother Dairy was established initially to make India self-sufficient in the dairy business, the brand has gone forward to establish itself as a significant presence in the Indian dairy market. The brand is a market leader in Delhi and NCR region. In addition to milk, the company also sells cultured products, ghee, ice creams, butter, and paneer. Mother Dairy registered an annual turnover of 1.1 billion USD in the year 2017.
Table of Contents
Strengths in the SWOT analysis of Mother Dairy
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Mother Dairy:
- Farmer support: The company has the goodwill of the dairy and vegetable farmers in the regions they operate in. This gives them the unending and relatively cheap supply of raw materials.
- Presence in multiple sectors: Mother Dairy deals with milk and milk products including cultured products, ice creams, paneer and ghee under the Mother Dairy brand. Under the label Dhara it sells edible oil and fruits & vegetables, frozen vegetables, pulses, processed food like fruit juices, jams, etc under the label Safal. This helps the company to become a popular name in the household of an average Indian.
- High trust and goodwill: The company has goodwill and trust in the minds of the customer since the company has been supplying milk on a day to day basis. The connection that the company has to the people at the grassroots level.
- Satisfied customers: The company has been deeply associated with Indians and thus have a clear grasp of the Indian sentiments and the demands of the Indian customer in all their product verticals.
- Composition of the juice The juices have no artificial flavors and are completely rich in vitamins and antioxidants. The Real Activ which has no added sugars is also rich in fiber and can be consumed even by diabetic patients. The brand also sells vegetable juices and a combination of fruits and veggies.
Weaknesses in the SWOT analysis of Mother Dairy
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of other Dairy are :
- Localisation: The market for milk is local essentially because of the perishability of the products. For example in Kerala there is Milma, in Karnataka there is Nandini and in Tamil Nadu Tirumala Milk Cooperative. Thus in order to target larger markets the company needs to foray into other businesses.
- Low per capita consumption of milk: Though India is the largest producer and consumer of milk the per capita consumption of milk is low, and customers in addition to milk also consume paneer, ghee, butter or curd in their day to day life. This makes it important for dairy companies to have the presence in all these categories which are expensive for the business.
- Packaging: Most of the products that are dealt by Mother Dairy such as milk, ice creams, vegetables etc are all perishable in nature and a lot of care and research has to be done on the packaging that can make them last. There is also a need for use of technology in packaging and storage.
- Distribution costs: The products of Mother Dairy are perishable and thus needs freezers and other paraphernalia for distribution. The areas covered are also minimal in terms of expanse.This increases the cost of distribution heavily.
Opportunities in the SWOT analysis of Mother Dairy
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include :
- High market potential for consumables in India: Most consumables have a high demand in India and the growing population of India is creating more demand. The dairy market alone is around 80,000 crores INR which is mammoth sized.
- Favourable environment in India: The government is favorable towards agriculture and the food processing industry has been able to receive a lot of perks as a result of this focus.
Threats in the SWOT analysis of Mother Dairy
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Low barriers to entry: There are low or no barriers to entry in the food processing industry and the competition is right from individual suppliers to conglomerates. This is creating a lot of threats for Mother Dairy.
- Competition: Some of the major competitors of Mother dairy include Amul, Brittania, Nestle etc.
Liked this post? Check out the complete series on SWOT