Marketing

Area of operation

The marketing area of Tumkur Milk Union is entire Tumkur district and part of Bangalore city. i.e. Dabaspet, Nelamangala, Hesaragatta road, Bagalagunte, Chikkabanavara, Bone mill, Shettihalli, Mallasandra, Chikkabidarakallu, Mallasandra, Anchepalya, 8th mile, Jalahalli cross, Peenya I and II stage, Andrahalli,Sunkadakatte, Hegganahalli, Rajagopalanagar, TVS Cross, Ganapathinagar, Goraguntepalya, Nandini layout, parimalanagar, Mahalakshmi layout, Saraswathipuram, Modi circle and West of chord road. From oct-16 onwards union is selling milk and curds in navi mumbai.

Sales and Distribution

Practices in sales and distribution

Milk and Milk Products are sold by the retailers appointed by the union. The milk is supplied to the retailers through Contract transport vehicles (Insulated). The transport contractor is entrusted with of distributing milk and collection of sales proceeds from the retailers and remitting the same at the Dairy. Adequate Securities are obtained from the Transport Contractors and retailers based on their volume of transactions.

Retailers send written indents to the dairy through transport contractor which is processed by the indent sections. Milk is dispatched by the dispatch section as distributed by the transport contractors as per the route sheets provided by the indent sections.

Milk processed and packed at night will be distributed to retailers before 5.00 am. Distribution is also undertaken to areas where demanded exists in the afternoon also.

Distrbution channels for milk and milk products

Union has two modes of distribution channels. The union directly markets milk & milk products through its own channel of retailers appointed in their area operation through contract vehicles. Retailers directly sell milk to customers at their out lets as well as distribute milk to customers door step through home delivery boys.

Union has also deployed mobile sales vans for better market penetration for sale of union products.
The second channel of distribution is through KMF. The union sells milk in Bulk to sister unions /Dairy (Dates dairy sales) as per milk movement plan Drawn by KMF union also sells milk products (Ghee, SMP, WMP, DAIRY WHITNER, Butter milk) through KMF. Union also sells milk products (Ghee, SMP, Butter) through KMF’s established retail channel & Direct Bulk sales.

Major marketng initiatives taken

  • Expansion of product portfolio by introducing different variants of milk in retail market to suit to customers required union sales. TM, HTM, HCM,Special & Shubam milk in pack size ranging from 250ml, 500 ml to 1000ml.
  • Market expansion by increasing the member of outlets & retailers, parlours.
  • Consumer Care Centre in Tumkur & Walk in cold store at Bangalore to market milk & milk product available throughout the day to customers as well as retailers.
  • Market expansion in Rural Areas, Deployment of Mobile sales vehicles.
  • Strengthening of cold chain by providing chest coolers to channel members at subsidized raters.
  • Deployment of refrigerated vehicles to selected market areas.
  • Increasing the product range offered for sale by procuring milk products manufactured by different unions & units of KMF.
  • Extensive consumer education by organizing dairy visit to schools & college students & Mahila Mandals & other social organization.
  • Extensive advertisement through wall paintings & POP materials like glow sign Board etc.
  • The Union sells milk through 1000 retail outlets through 52 morning and 10 evening distribution routes.

The union has made good progress on the marketing from the liquid milk market (Ratio) as grown at an appreciable rate in the last 5 years. Figures given below:

Year Qty milk sold in lpd
(In retail market)
% growth over previous year
2010-11 164620 14%
2011- 12 185766 13%
2012-13 198517 7%
2013-14 201522 1.51%
2014-15 222056 10 %
2015-16 234876 6%
2016-17(Apr-17) 222071 -3%