A PESTEL Analysis for the Mother Dairy case

1. MOTHER DAIRY
GROUP 7

2. CASE ANALYSIS
 Mother Diary holds a monopoly like structure in Delhi-NCR but only a state
player
 Now the challenge is to become a national player.
 Mother Dairy is competing against well established brand “AMUL GCMMF” with
its nationwide presence.

3. MARKETING ENVIORNMENT ANALYSIS
 An analysis of both the external and internal environments related to an
organization “Mother Dairy”
 A common economic tool for conducting this analysis is PESTEL.
 P-Political
 E-Economic
 S-Social
 T-Technological
 E-Environmental
 L-Legal

4. POLITICAL FACTORS
 Government has taken several initiatives to change the face of milk
production in India.
1. No Excise duty for most of the dairy products.
2. No License requirement for doing business in dairy sector.
3. 100% FDI is allowed through automatic route.

5. ECONOMIC FACTORS
 According to the National Sample Survey office :
1. Money spent on dairy products as a percentage of food consumption is
18.85% (Urban) and 15.47% (Rural).
2. High cost of milk
3. High cost of fodder and feed
4. Labor is scarce

6. SOCIAL FACTORS
 Milk assumed a significant role in Indian society, which is largely Vegetarian.
 Rapid urbanization has increased the demand for dairy products.
 Milk Production provides livelihood to small farmers.
 Demography of India as a challenge.
 Country’s dependency on milk and milk products will be substantially high.
 People have become more health conscious.
 580 million people will be in middle class by 2025.

7. TECHNOLOGICAL FACTORS
 Innovative processes such as filtration, clarification pasteurization etc.
 Robust and stream lined supply chain.
 Token distribution system
 COW- Container on wheels
 Efficiently capitalized on the 3-tier milk grid system.

8. ENVIRONMENTAL FACTORS
 Mother Dairy saves 5.5 to 6 tons of plastic entering the Delhi market
everyday.
 It’s green initiative saves 1700 tons plastic an year
 New packaging portrayed the journey of milk from the farmer’s abode to the
customers.

9. ROAD AHEAD
 If Indian consumers will be truly cosmopolitan global brands will dominate.
 If consumers will be having localized preferences then regional brands will dominate.
 Also another challenge for mother dairy would be that NDDB (National Dairy Development Board)
has influential control on it.

10. THANK YOU