This blog covers all the aspects which have impacted, accelerated, or hampered the growth of the Mother Dairy brand globally, Highlighting their strong and weak points, along with the competition and opportunities which they can tap to increase their market share worldwide.
Before we dive into the SWOT Analysis of Mother Dairy, let’s explore more about Mother Dairy!
About Mother Dairy
Mother Dairy is an Indian food brand that manufactures and sells milk and milk products throughout the country. Their milk items incorporate refined items, frozen yogurt, paneer, and ghee under Mother Dairy. The organization also sells edible oils, new products of the soil, frozen vegetables, and handled food like organic product juices, jams, pickles, etc.
The organization sells milk items under the “Mother Dairy” brand, and is the main milk provider in Delhi-NCR, and sells around 30 lakh litres of milk each day in this region, and has a turnover of around 11,000 crores as of the year 2020. It is also one major organization to offer different items in assorted fields like organic products, vegetables, edible oils, milk, and dairy items, and milk-based packed desserts.
Let’s have a look at the detailed SWOT analysis of Mother Dairy.
SWOT Analysis of Mother Dairy
SWOT Analysis represents the Strength, Weaknesses, Opportunities, and Threats of a company. It is used to organize and gather the information about the internal and external environment that affect a company and to tap the areas of strength, and analyzing the areas of weakness of a company along with the competitor’s strength in order to fulfil the gaps in the performance of a firm and boosting it by also researching upon the opportunities which can lead to the success of a company by covering the areas which lack focus by a firm. Swot analysis basically gives a thorough idea of how, where, and how much money and other resources to pool in in the areas which lack the required focus by a firm.
1. Strengths of Mother Dairy
This section includes what a particular firm does the best in others’ opinions and as per the market review, what unique resources can a firm draw?, what is the USP, the strong sides, and the impact of the firm.
- Product lines
The company offers a wide variety of products and is spread over multiple sectors: Mother Dairy deals with milk and other dairy products like ice creams, fruits, vegetables, groceries, edible oil, beverages, frozen food, under its brand name.
- Cost-Effective Supply Chain
The company procures its raw materials from the major local farmers and cooperatives which gives them the advantage of manufacturing and selling their products at a cheaper rate and in turn also creates goodwill and trustworthy relationship with the farmers improving the overall efficiency.
- The company offers High product quality
The company is certified with high food safety standards and offers products with no artificial flavors which are rich in vitamins and antioxidants leading to increased brand loyalty as they are known for creating a national footprint in the competitive market of India.
- Geographical Advantage
Ease of accessibility, very strong and focussed distribution at low cost and meeting the demands of the target market has been possible due to the locational advantage which the company practices.
- Committed Human Capital
The brand has the strength of over 3000 employees who are loyal and service-oriented in nature giving a competitive advantage to the brand.
- Efficient marketing solutions
Mother dairy has come up with unique marketing strategies and solutions to cater to the untapped markets along with practising the First Mover Advantage in several market segments, giving them a competitive edge.
- Strong Financial Position
Mother Dairy charges higher prices than their competitors which leads to a competitive advantage in terms of higher capacity to invest in market research and development for innovation. The brand also invests in High tech IT infrastructure for increased efficiency which is a result of a stronger financial position.
- Patenting the products
Mother Dairy has generated a wide range of products over the years which have been patented and copyrighted under the Intellectual property rights and by buying those rights from the creators which have in turn given them a huge competitive advantage.
2. Weaknesses of Mother Dairy
This section includes the areas of improvement along with the areas which require more focus and resources to be drawn upon and what others in the market will see as a weakness or practices of negligence that need improvement.
- Diversification for sustenance
The per capita consumption of milk in India is very low which requires companies to diversify to sustain themselves into producing other milk products which raise the cost of production for the business.
- Difficulty in maintaining Competitive pricing
The brand needs to revise its pricing policy according to the products and services offered by them as they are not considered justified in the market.
- High Packaging Cost
The products offered by the brand are perishable and need a lot of investment in technology and research & development to decide their packaging and to keep them fresh while transporting them throughout the country.
- Inefficient Inventory Management
Mother dairy lacks efficient management of the inventory and cash cycles, which is resulting in weakening the operations and efficiency of the brand, but there still lies a huge scope of improvement. Poor project management has led the company to lose a greater consumer base.
- Poor waste management practices
Mother Dairy has been unsuccessful in integrating a sustainability model in its business. Their environment considerations are not very encouraging and leading to a deteriorating consumer base.
- Poor Decision Making
Lack of focus on innovation leads to the company’s poor and delayed decisions about launching new products and variants in the market-leading to losses. Due to unhealthy competition employees are discouraged from creative thinking leading to the company suffering from losses.
- Lack of Technological Development
Mother Dairy is lagging there on creating efficient technological infrastructure and in their digital transformation, due to lack of funds, they are unable to cater to the technological needs of expanding and restructuring the processes and lack Artificial intelligence and machine learning technologies in their infrastructure.
3. Opportunities for Mother Dairy
This section highlights the areas of development, opening, or a new marketplace for the positive growth of a firm, this section also includes changes in government policies, population patterns, there and lifestyle changes affecting the positive growth of a firm.
- Expanding in the Adjacent Markets
Mother dairy can inspect other market segments to further introduce new product features and services for effective market growth.
- Greater Consumer Disposable Income
Mother Dairy can take advantage of the more disposable income that consumers are willing to spend by building a new business model to attract consumers to spend on their products progressively and to expand their competitive strategy.
- Increasing Quality and standards
Mother Dairy can reduce its excess production cost by just focusing on improving the quality and supply of the most successful products of the brand.
- Access to Global Market
Mother dairy should tap the international market, but due to limited budget constraints, they can also expand into new areas and bring new talent so they can expand in various segments worldwide.
- Developing New Technology
To assist the production of goods and services the company should spend on the IT infrastructure to cater to the demands of the customers worldwide efficiently, As advanced technology can lead to reduced cost, better quality products in lesser time.
- Government Aid:
The subsidies given by the government can be used to make the brand more environmental and consumer-friendly by opening up new outlets and following the sustainability model.
4. Threats to Mother Dairy
This section highlights all the possible areas, practices, and organizations which can affect the firm’s reputation negatively and can cause harm to the image of the firm in the market. It involves analyzing the competitors and negative changes in the market to avoid them.
- Barriers to Entry
There are barely any barriers to entry in the industry which leads to the emergence of new competitors causing a threat to the brand. There are new entrants in the market because of the reduced costs and increasing efficiencies in terms of customer reach through media platforms globally and domestically.
- Big Competitors
A few famous brands are directly aligned with the products also sold by mother dairy lie Amul, BrittaniaKissan, Heinz, and Nestle.
the brand is majorly dependent on debt to expand from the past decade, which should be avoided, else it will lead to huge interest costs.
- Greater bargaining power in the hands of the consumer
due to this reason, there is a negative effect on the pricing of the products, the company should focus on changing its business model than making other cosmetic changes.
- Government Policies
brand should look upon the environmental and other safety aspects which are made compulsory by the government to follow to sustain properly. The changing regulations and stricter rules might be challenging to overcome for the brand.
- Environmental Issues
The Sustainability trends around the world might affect the brand’s image negatively, and the brand might get criticism from the environmental influencers ultimately leading to declining in sales.
- Labour Force
The negative word of mouth regarding the organizational problems might lead to exhaustion of the labor force and the low availability of skilled labor in the market can make it difficult to employ labor.
So, here we end the blog and we covered all the Strengths, Weaknesses, opportunities and threats also called SWOT for Mother Dairy extensively. To read more blogs about different companies click here. Hope you enjoyed reading this SWOT analysis of Mother Dairy.