Case Study: Yoghurt Production, Marketing, and Quality in Sri Lanka

This report provides a comprehensive analysis of yoghurt production in Sri Lanka, using Anchor Newdale as a case study. It identifies batch production as the suitable method, given the variety of yoghurt types, and details the manufacturing process from milk sourcing to packaging. The report emphasizes the importance of marketing information, outlining key components like internal records, marketing intelligence, and marketing research, and how they influence product development and promotion. It also lists the necessary inventories for the production process and defines yoghurt quality, highlighting aspects like consumer safety and shelf-life, and the importance of quality control throughout the process, including standardization and adherence to legal standards. The analysis covers the entire supply chain and highlights the importance of farmers delivering high-quality milk to ensure product quality and safety.

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Question One
Consider the process of manufacturing and selling yoghurts in Sri Lankan market as an example. Assume
that they produce and sell yoghurts of different flavours, sizes and forms such as set yoghurt, stirred
yoghurt, yoghurt drink etc.
A. Identify a suitable method of production for the above operation and justify your answer.
Yoghurt is a popular fermented dairy productwhich has its origin in Eastern Europe but now consumed all over
the world.Let us see how the process of manufacturing and selling Newdale yoghurts in Sri Lankan market as an
example. For the past 16 years, Anchor Newdale has been sourcing fresh milk from a large network on a daily
basisof 4000 Sri Lankan dairy farmers for yoghurts, flavoured milk, curd and fresh milk.
In 2010, they became one of the first brands to combine the natural nutritional benefits of yoghurt with the
probiotic DR10TM.
The type of production will be classified according to material flow which can be divided into three divisions.
 Job Production – This production method is used for one product or rarely used for bulk production. In this
method it will motivate for workers because it gives an opportunity for the workers to produce the whole product
and take credits in it
For e.g.:-wedding cake making, civil engineering constructions.
 Batch Production–This procedure for producing any batch of products in which all the products in the batch go
through the entire manufacturing process together.Although batch production frequently involves a small number
of people, this strategy is perhaps the most widely utilized method for arranging manufacturing and promotes
specialist labor.When many similar things are manufactured at the same time, this is known as batch
manufacturing.Before moving on to the next step of production, each batch goes through one stage.
 Flow Production-This is also known as mass production which is another popular production method.
Flow production occurs when a product is constructed over number of different processes; the product is
constructed at each stage and then passed on to the next stage, where it is constructed again.
Because there is less of a requirement for experienced people, this form of production is the most cost-effective
and efficient method.
Batch Production is the suitable method of production for yoghurt manufacturing. As there are different varieties of
yoghurt like, set yoghurt is packed immediately after immunization and is incubated in the package. Stirred yoghurt is
produced by adding fruit and other condiments after setting, followed by a gentle stirring motion. Drinking yoghurt is
produced by adding fruit juice and other flavoring compounds to a thick liquid using high speed mixers. Frozen
yoghurt is a set yoghurt, combined with sugar and stabilizers before being pasteurized and frozen.
 PRODUCTION METHOD
It is a simple procedure where milk can be braced with milk powder to deliver a thicker item, is purified,
cooled and immunized with starter bacteria, which ferment the milk, causing it to clot or gel.The main
ingredient in yogurt is milk. So that the type of milk used will be depends on the type of yogurt. Like, whole
milk for full fat yogurt, low-fat milk for low-fat yogurt, and skim milk for nonfat yogurt.
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Milk, Milk Products
Sweet, Sweeteners Water
Stabilizers Flavors Standardization
Homogenization
Heat Treatment
Cooling
Inoculation
Filling
Fermentation
Cooling
Cold Storage
Set Yoghurt
Fermentation
Fruits preserves
Mixing & Homogenization
Cooling
Filling
Cold Storage
Drinking Yoghurt
Mixing & Smoothing
Cooling
Mixing
Filling
Cold Storage
Stirred Yoghurt
Stabilizers
Starter Culture
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Other dairy ingredients are allowed in yogurt to adjust the composition, such as cream to adjust the fat content,
and nonfat dry milk to adjust the solids content.
 MANUFACTURING PROCESS OF YOGHURT
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B. Give the importance of marketing information for this business and list out the relevant marketing
information for this business venture.
The marketing information framework distributes the important information to the marketers who can make the
efficient choices related to the marketing operations viz. Pricing, packaging, new item development, distribution,
media, promotion, etc.
In recent years, the total consumption of Newdale yoghurt has been increased as it became the fastest
growingfood category.Furthermore, as digital networks have risen in popularity, customer participation in the
consumer connection has gradually increased.The healthy concept of Newdale yogurt is further enhanced as a
functional drink, with additional sentimental connections and emotional relationships with customers, which
challenges the traditional single sales strategy.
Marketing information consists of Internal Records, Marketing Intelligence, Marketing Research & Marketing
Decision support system.
So as per the above components according to the marketing intelligence system they came to know that yoghurt
has become a healthy food which doctors prescribe for gastritis patients as well as for children too.Inorder to
explore they first introduced only the set yoghurt. As the taste of the yoghurt has reached island widethey mainly
targeted children because they believed that good nutrition plays an important role in the development of
children.
Anchor Newdale has been sourcing dairy products from extensive network of 4000 Sri Lankan dairy farmers for
the yoghurts, flavored milk, curd and fresh milk.
In 2010, they became one of the first brands to combine the natural nutritional benefits of yoghurt with the
probiotic DR10TM.
According to the Marketing Intelligence& Marketing research the information about the changing market trends,
competitor’s pricing strategy, change in the customer’s tastes and preferences, new products launched in the
market, promotion strategy of the competitor, they introduced more flavors in yoghurt like Low fat yoghurt,
Strawberry flavor yoghurt, Mango flavor yoghurt, Low fat mixed berry stirred, and instead of set yoghurt they
introduced drinking yoghurt like Vanila flavored, Mango Flavored, Strawberry Flavored Drinking yoghurtstoo.
C. What type of inventories are required for this manufacturing process? Give examples.
 Mixing or blending vat
 High-speed mixer
 Pasteurizers and homogenizer
 Fermentation vats
 Fruit feeder/mixer
 Pot filler
 Chilled storage area
 Packaging store.
For Example: Electron pound scale, Milk weighing tank, Milk Acceptor, Milk pump, twin piping filter, Dish
separator, Chilling tank, Blending tank, Heat exchanger, High speed emulsification tank, UHT sterilizer, high
pressure homogenizer, temperature holding, distributing plate, Fermentation tank, Rotary pump,plate cooler,
higher position tank, FFS Machine.
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D. How would you define the quality of yoghurts? Explain.
The qualityof yoghurt is mainly concerned with twoaspects:
1) Protection of the consumers against exposureto any health hazard
2) Guaranteeing that the raw material isn't enduring microbiological weakeningduring its expected shelf-life
Anchor Newdale supply chain begins with quality of raw milk. Thereafter The farmers’ themselves deliver the
milk to the chilling centers within a few hours of milking. Once arrived, the milk will be tested by the chilling
center employees to ensure high quality and the only milk which passes this test is collected and transported to
the manufacturing site.
Once the various quality assurance tests are conducted the milk goes through a process of heat and cold treatment
to ensure the correct level of bacteria activity is present in the milk in the yoghurt process.
In fact, it ishelpful in assessing in evaluating that to what level, the clean safety measures have been embraced
during generation, which permits the forecast of item shelf life and distinguishing proof of potential wellbeing
risks.
It can be definedthat the overall picture of yoghurtquality needs emphasis on quality controlduring
processing and storage. Also standardization ofmilk for yoghurt manufacture should be observed to meet
legal standards and adjustment of yoghurt mix shouldapproach the standard of the yoghurt package label.
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