Marketing Mix of Mother Dairy and 4Ps (Updated 2023)

The Marketing mix of Mother Dairy analyses the 4Ps of Mother Dairy, which includes the Product, Price, Place, and Promotion of Mother Dairy. Mother Dairy is a subsidiary of its parent company, the National Dairy Development Board (NDDB). It is associated with the food and beverage industry as it deals in dairy products and food processing.

In 1974, it was commissioned by its parent company as a fully-owned subsidiary because it wanted to make its country a sufficient milk nation. The private company is of Indian origin and has created a strong position in the consumer market over the years. Mother Dairy faces competition from the following.

• Amul
• Reliance Fresh
• Nestle Ltd
• Heinz
• Kissan
• Britannia Industries

About Mother Dairy

• Type: Food and beverage company
• Industry: Dairy
• Founded: 1974
• Founders: Verghese Kurien
• Headquarters: Noida, Uttar Pradesh, India
• Area served: India
• Current CEO: Manish Bandlish
• Number of employees: Over 12,000
• Major products: Milk, milk products, ice cream, paneer, ghee

Mother Dairy Product Strategy

Mother Dairy is one of the most popular and leading brands offering milk-based products and other food items. It operates under three divisions and brand names: Safal, Dhara, and Mother Dairy. The diversified product line and portfolio of Mother Dairy, which deals mainly in milk and milk products, includes-

• Milk of many types
• Dahi
• Chach
• Lassi
• Flavored Milk Bottles
• Butter
• Paneer
• Cheese
• Ghee
• Dairy Whitener
• Ice cream
• Yogurt

Mother Dairy, a prominent dairy brand in India, offers a diverse range of products.

The product mix of Mother Dairy in 2023 is as follows (Source)

1. Milk: Different varieties include full cream, toned, double-toned, skimmed, and flavored milk.
2. Dairy Products: Curd, buttermilk, lassi, and probiotic drinks.
3. Ice Cream: Ice cream comes in various flavors and types, including cups, cones, bars, and tubs.
4. Dairy Whitener: Used for tea, coffee, and other milk-based beverages.
5. Cheese: Various types like processed cheese, cheese slices, and cheese spread.
6. Ghee: Clarified butter traditionally used in Indian cooking.
7. Butter: Including both salted and unsalted varieties.
8. Milk Powder: Used for various cooking and baking purposes.
9. Dahi: Traditional Indian yogurt is available in different sizes and flavors.
10. Flavored Yogurt and Mishti Doi: Sweetened yogurt, often flavored with fruits or traditional Indian spices.
11. Paneer: Fresh cottage cheese, a staple in Indian vegetarian cooking.

These products cater to various consumer needs, from basic milk industry dairy requirements to more specialized products.

Mother Dairy Place Strategy

Mother Dairy has a Pan-India presence that has spread to every part of urban and rural India. The company’s headquarters is in Noida, Uttar Pradesh. Mother Dairy has created a robust distribution and marketing strategy and sales network at a national level to achieve success in its operations. Its source of liquid milk is the farmer-based organizations at the village level and dairy cooperatives.

The company has a national footprint and massive infrastructure, including a robust network of over fourteen hundred retail outlets and over one thousand booths. As Mother Dairy deals with perishables that need refrigeration, it has a production facility for every region.

The raw products, frozen vegetables, are collected at collection centers, and from there, they go to processing plants and lastly to distributors of the local area, who send them to booths, small retailers, corner shops, grocery markets, supermarkets, and convenience stores.

Mother Dairy has hi-tech facilities that have established automated machines to ensure the best product in terms of safety, reliability, and quality. Its co-brand Safal has opened F&V stores in NCR and Delhi and has a state-of-the-art facility in Bengaluru. Safal has an overseas presence in 40 countries, including Africa, Asia, the Middle East, Russia, Europe, and the USA.

Mother Dairy’s place strategy is as follows:

1. Extensive Network of Booths and Retail Outlets: Mother Dairy has set up numerous booths and retail outlets across various cities, ensuring easy accessibility for consumers.
2. Strategic Location of Processing Units: Their processing units are near significant dairy belts, enabling efficient procurement and distribution.
3. Robust Distribution System: They employ a robust distribution system, including refrigerated vans and logistics, to maintain product quality during transit.
4. Partnerships with Local Vendors: Mother Dairy partners with local vendors and supermarkets, expanding their reach and making their products available in diverse retail environments.
5. Use of E-commerce Platforms: Embracing modern retail trends, Mother Dairy products are also available on various e-commerce platforms, catering to consumers’ online shopping preferences.

Mother Dairy Pricing Strategy

Mother Dairy is estimated to be a 1.3 billion USD company that has targeted the upper-middle and middle-class sections of society as its target audience of customers. It has positioned itself as a trusted brand that offers premium products at affordable rates.

Mother Dairy adopted a penetration pricing policy at its initial stage to set up its network to every nook and corner. It has kept a very reasonable price range so that its products seem affordable. This has happened because of its vast distribution channel that can be saved easily due to a lack of serious intermediaries.

Prices also depend on market fluctuation and prices set up by mother dairy marketing mix with rival brands. The company has set up competitive pricing that is on par with the prices set up by rival brands. Mother Dairy has also adopted a differential pricing policy that varies and depends on geographical locations.

Mother Dairy’s pricing and marketing strategy demonstrates a keen understanding of the dairy segment’s market dynamics and consumer needs.

1. Competitive Pricing: They adopt a competitive pricing model, ensuring their products are attractively priced compared to other key players in the market. This strategy helps retain a solid customer base and appeal to price-sensitive consumers.
2. Cost-Plus Pricing: Mother Dairy employs a cost-plus pricing strategy for some specialty products. This involves marking up the products slightly above the production cost, which is typical for items with unique attributes or higher quality standards.
3. Dynamic Pricing: Recognizing the fluctuations in the dairy market due to seasonal changes and supply variations, Mother Dairy occasionally adjusts prices. This dynamic pricing strategy helps them manage operational costs while remaining competitive.
4. Value-Based Pricing: For products that offer additional health benefits or unique features, such as probiotic drinks or organic milk, Mother Dairy utilizes a value-based pricing approach. This reflects the additional value these products offer to health-conscious consumers.
5. Psychological Pricing: They also use psychological pricing tactics, like pricing products just below a whole number (e.g., Rs. 99 instead of Rs. 100) to make the price appear more attractive to consumers.

Overall, Mother Dairy’s pricing strategy is a balanced mix of competitive and value-based approaches to digital marketing designed to cater to a diverse consumer base while ensuring business sustainability and growth.

Mother Dairy Promotion Strategy

Mother Dairy has adopted several innovative and practical plans to target the market for its products. It has created intelligent ad campaigns that are shown via television channels, radio, newspapers, magazines, sides of vehicles, billboards, and hoardings.

Its tagline is descriptive Piyo Pure. Tweet to Farmer campaign created a successful brand image where we thanked them for offering milk. Mother Dairy has its official website to provide relevant information and show ad campaigns. The company is also active via Facebook, Instagram, YouTube, and Twitter to create further brand visibility.

It has created a happy workplace for its employees by listening to and solving their problems. Mother Dairy has been the recipient of numerous awards and recognition.

It has been ranked as 2nd Best in the FMCG industry and at 39th position as Top 100 Best Companies to Work in India; in the year, the company was awarded several awards and accolades like 1st Prize in Dairy Sector at National Energy Conservation Award 2017, Best Maintained Dairy Plant in North Zone, National Safety Innovation Award 2017 and CII Cold Chain Awards.

Mother Dairy’s product promotion strategy is as follows:

1. Integrated Marketing Campaigns: They utilize a mix of traditional advertising mediums like TV and print, along with digital platforms, to reach a broad audience.
2. Customer Engagement Programs: Engaging customers through loyalty programs, contests, and interactive campaigns, especially on social media, helps build a strong brand community.
3. Collaborations and Sponsorships: Partnering with events and local communities and sponsoring sports and cultural events helps enhance brand visibility and reach.

Some Recent Video ads and Print ads of Mother Dairy are:

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