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INTRODUCTION TO MILKFED-PUNJAB 1

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INTRODUCTION

TO

MILKFED-PUNJAB

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MILKFED-PUNJAB

The Punjab State Cooperative Milk Producers’ Federation Limited

popularly known as MILKFED Punjab, came into existence in 1973 with a

twin objective of providing remunerative milk market to the Milk Producers

in the State by value addition and marketing of produce on one hand and to

provide technical inputs to the milk producers for enhancement of milk

production on the other hand.

 Although the federation was registered much earlier, but it came to

real self in the year 1983 when all the milk plants of the erstwhile Punjab

Dairy Development Corporation Limited were handed over to Cooperative

sector and the entire State was covered under Operation Flood to give the

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farmers a better deal and our valued customers better products.Today,

when we look back, we think we have fulfilled the promise to some

extent.The setup of the organisation is a three tier system, Milk ProducersCooperative Societies at the village level, Milk Unions at District level and

Federation as an Apex Body at State level. MILKFED Punjab has

continuously advanced towards its coveted objectives well defined in its

byelaws.

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INTRODUCTION

TO

VERKA MILK

PLANT, PATIALA

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INTRODUCTION TO VERKA MILK PLANT, PATIALA

MILK PLANT, PATIALA was set up by THE PUNJAB STATE CO-

OPERATIVE MILK PRODUCERS’ FEDERATION Ltd. popularly known as

MILKFED, which was financed by PUNJAB GOVERNMENT & NATIONAL

DAIRY DEVELPOMENT BOARD (NDDB). It was formed with a view to

integrate the production of milk & its procurement, processing & marketing

in Punjab on ANAND PATTERN. The ANAND PATTERN is a world famous

4-tier system of dairy development in India. In foundation, there are a largenumber of small milk producers in villages, who are the members of the

village level Co-operative Dairy/Societies. Such societies form a District

Level Marketing Federation, which looks into aspects of marketing of milk &

milk products, with the aim of giving better benefit to producers & ensured

supply quality products to the consumers at reasonable rates. The profits

gained goes in giving social monitory benefits to the producers. The fourth

component added recently is a Cluster of State Level Milk Marketing

Federations called National Dairy Co-operative Dairy Federation of India

(NCDFI). In this system, from bottom to top, there is full participation of the

farmers who are producing milk.

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LOCATION & SITE 

MILK PLANT, PATIALA is known as “VERKA MILK PLANT”, which is

located at 5.5 kms away from Patiala city. It is situated in Hassanpur village

on Sirhind Road. It is fully equipped with modern fluid milk plant facilities.

NAME OF THE ORGANIZATION

The name of the organization is The Patiala District Milk

Producers’ Union Limited, Patiala.

INAUGURATION OF MILK PLANT, PATIALA

 About 21 acres of land for the present Milk Plant was purchased in

JUNE 1982 & the foundation stone was laid in JULY 1983 by the then Chief 

Minister, S. Darbara Singh for the construction of Milk Plant at a cost of Rs.

4.32 crores.

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Milk chilling facilities commenced on own premises in JANUARY

1985 & the plant in its present shape with a handling capacity of 1.0 lac

liters of milk per day was inaugurated on 30

th

JULY 1988 by Dr. M.S. Gill,I.A.S., the then Additional Chief Secretary to Punjab Government.

MANAGEMENT CONTROL & COMPOSITION OF BOARD OF

DIRECTORS

The Board of Directors shall have 19 Directors, comprising:-

× 12 elected representatives of affiliated societies.

× Registrar, Co-op. Societies, Punjab, or his nominee.

× 1 nominee from Milkfed.

× General Manager (CEO) of the plant, Ex-offico Member/

Secretary with the responsibility of day to day management &

operation.

× 1 nominee from National Dairy Development Board.

× 3 members nominated by Punjab Government.

ACHIEVEMENTS

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× Milk Procurement: - Milk Plant Patiala procured about 1,

00,000 kgs of milk per day through 19 Milk routes in the Flush

Season. The Plant is procuring milk from 494 villages byorganizing village level Milk Producers’ Co-operative Societies

× Animal Health Care & Other Technical Inputs: - In addition to

Organizing the remunerative Milk market system Through milk

producers cooperative societies, Milk Plant is also providing

regular health coverage by running 2 vet nary routes and 55

 Artificial Insemination Service Stations at Society level.

× Genetic Improvement of Milch Animals: - Under this, lay

inseminators are trained who are in-turn, doing Artificial

Insemination at the door steps of Dairy Farmers.

× Supply of Balanced Cattle Feed: - Special attention has been

paid to the supply of balanced cattle feed to the milk producers

so as to enhance the milk production. Four types of cattle feeds

are being supplied i.e. ISI Type, High Energy, Bye Pass Protein

Feed & Buffalo super feed to meet the requirements of Milk

Producers.

× Supply of Improved Varieties of Fodder Seeds: - Cows does

not produce ample milk without ample fodder. Through research

and seed-farms, Milkfed has worked t provide the farmers high

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yielding forages at low cost. Fodder Development activities

initiated by Milkfed have created a good demand for improved

fodder seeds in Punjab. Milkfed established its own seedprocessing unit in 1985, the unit is automated and has the

capacity to grade 16 million tons of fodder seed per day.

× Quality Assurance Program: - Quality Assurance Program

(QAP) which is a part and parcel of Dairy Plant Improvement

Program (DPIP) was taken up in Ludhiana Milk Union with the

Technical guidance from NDDB. The main objective of the

program is to improve efficiency of Plants coupled with loss

management to bring down the cost of production, improve the

quality of milk and milk products manufactured to ameliorate the

general hygienic and housekeeping standards and above all to

enhance the profitability and financial viability of the Milk Plants

to enable milk producers to get better price for their produce.

× Women Dairy Project: - Household level dairying is largely the

domain of women especially in small and marginal household

families. In view of this fact, Milkfed has undertaken Women

Dairy Project in six Milk Unions namely Hoshiarpur, Ropar,

Patiala, Jalandhar, Ludhiana and Amritsar with an objective toempower rural women in the field of dairy. This Programme is

being implemented under Support to Training & Employment

Programme (STEP) with the assistance of Government of India.

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Under this programme, 390 women societies with 19860

women beneficiary members will be organized.

× Clean Milk Production Programme: - For improving quality of 

raw milk at Milk production level, 8 Bulk Milk Coolers have been

installed in the Plant and many more in pipe line. Besides, more

than 1000 Automatic Milk Collection Stations have also been

provided for bringing efficiency and total transparency in the

system. Traditional manual method of milk testing at society

level is being replaced with Electronic Milk Testers.

× Automatic Milk Collection Stations: - These units are

installed under quality assurance & to make milk procurement

system transparent by creating awareness among the milk

producers. Milk union Patiala has installed 45 AMCs in its

milkshed area. We are able to win the confidence of the milk

producers by providing this system to the societies.

ISO: 9001/IS: 15000(HACCP) CERTIFICATION

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Today’s consumer is not only well informed about the value of his

money but he also makes sure about the qualitative features of the product

before deciding to purchase it. The phase of Liberalization & newtechnology has further intensified the fierce competition in the market.

Hence, Milk Plant Patiala felt the necessity to give greater emphasis on the

prime demand of the consumers i.e. assured safe & quality milk products

so as to maintain long-term relation with the consumers.

 As a mark of having achieved requisite quality standards, Milk Plant

Patiala has already obtained ISO: 9001 Quality Certification integrated

with IS: 15000(HACCP) CERTIFICATION from THE BEREAU of INDIAN

STANDARDS w.e.f 25th October 2000. With these certifications, Milk Plant

fully geared itself to compete its Milk & Milk products at global level in

addition to market the same in the domestic market.

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FINANCIAL

PERFORMANCE

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FINANCIAL PERFORMANCE

Milk Plant, Patiala has earned a Net profit of Rs. 110.51 in year 2000-

2001 and in 2001-2002 was 261.54 lakh. In the year 2002-2003 plant has

earned net loss of 40.63 lakh and in 2003-04 it earned net loss of 102.38

lakh. For the year 2005-06 and 2006-2007, it had net loss of 150.98 and

188.31 lakh respectively.

The detail of Profit/Loss of last 6 years is as under:-

YEAR PROFIT/LOSS (Rs. in lakh)

2000-01 110.51

2001-02 261.54

2002-03 -40.63

2003-04 -102.38

2005-06 -150.98

2006-07 -188.31

2007-08 -203.48

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ORGANISATION

STRUCTUREOF

VERKA MILK PLANT

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PROCUREMENT

MILK PROCUREMENT NETWORK

Working on "Anand Pattern" the process of organizing societies at

village level started in Punjab as early as 1978. Presently, there is strong

Network of about 6000 (as on 31.3.2007) Milk Producers Cooperative

Societies organized at village level. About 3.60 Lakh milk producer 

members are attached to these societies. Fresh milk is procured from the

milk producers twice a day through village level societies directly without

the assistance of any middleman.

INPUT SERVICES

It is one of the fundamental objectives of  MILKFED to carry outactivities for promoting milk production in the State. In view of this, various

technical input services like veterinary health care, artificial insemination

services, vaccination, supply of VERKA balanced cattle feed and quality

fodder seed etc. are provided for enhancing milk production and economic

development of farming community.

CATTLE INDUCTION PROGRAMME:

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Government of Punjab has identified dairy sector as thrust area for 

rural development. Recently, Milkfed Punjab has signed memorandum of 

understanding (MOU) with State Bank of India, State Bank of Patiala and

Oriental Bank of Commerce for providing loan up to Rs.50,000/- without

any collateral security to milk producer farmers for purchase of milch cattle

on soft terms and low rate of interest.

CLEAN MILK PRODUCTION PROGRAMME:

For improving quality of raw milk right from milk producer's level, q

massive programme called "CMP" has been launched under which 125

Bulk Milk Coolers have been installed in the societies and many more in

pipe line. Besides, more than 1000 Automatic Milk Collection Stations have

been provided to the societies for bringing efficiency and total transparency

in the system. Traditional manual method of milk testing at society level is

being replaced with Electronic Milk Testers.

WOMEN DAIRY PROJECT:

Household level dairying is largely the domain of women especially in

small and marginal household families. In view of this fact, Milkfed has

undertaken Women Dairy Project in six Milk Unions namely Hoshiarpur,

Ropar, Patiala, Jalandhar, Ludhiana and Amritsar with an objective to

empower rural women in the field of dairy. This Programme is being

implemented under Support to Training & Employment Programme (STEP)

with the assistance of Government of India. Under this programme, 390

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women societies with 19860 women beneficiary members will be

organized.

SETTING UP OF BIG COMMERCIAL DAIRY FARMS:

In order to enhance the milk production and making the dairy farming

a profitable and sustainable profession, Milkfed has planned to establish at

least ten progressive big dairy farms in each Milk Union by arranging soft

terms loans from the banks.

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TECHNICAL INPUT PROGRAMME

PRODUCTIVITY ENHANCEMENT PROGRAMME:

With a view to enhance milk production so as to reduce average cost

per Kg. of milk produced, Milkfed and its affiliated Milk Unions are providing

technical input services like animal health care, artificial insemination

services, vaccination, supply of balanced cattle feed, supply of quality

fodder seeds etc. to specific target group i.e. Milk Producers CooperativeMembers at their door steps.

BREED IMPROVEMENT PROGRAMME:

With an objective to produce more milk from lesser number of milch

animals, a specific breed improvement programme is being implemented in

the State. Under this programme, Artificial Insemination activities are being

carried out in about 2300 societies. Milkfed has its own ISI/ISO certified

Sperm Station at Khanna (Distt. Ludhiana) from where semen of imported

bulls is supplied for Breed Improvement Programme.

FODDER SEED DEVELOPMENT:

To fulfill the requirement of quality fodder seeds of dairy farmers,

Milkfed has its own automatic seed processing Plant at Bassi Pathana.

(Distt. Fatehgarh Sahib).

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BALANCED CATTLE FEED:

MILKFED has its own two cattle feed plants, one at Bhattian near Khanna and another at Ghania-ke-banger having capacity to produce 300

M.T.'s of cattlr feed and 5 M.T's of Urea Molasses Lick Bricks per day. Four 

types of balanced cattle feed i.e. ISI type II, High Energy, By Pass Protein

and buffalo feed is being manufactured under the brand name of VERKA.

Both the plants are ISO-9002 certified units. Verka balanced cattle feed is

supplied to the societies at a very genuine rate.

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PRODUCTS

OF

VERKA

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PRODUCTSMilkfed has formulated company specifications for its milk & milk

products to provide standard and quality of products to consumers.

× MILK

× CHEESE & PANEER

× DRINKS

× GHEE & BUTTER

× ICECREAM & SWEETS

× MILK POWDER

× FRESH PRODUCTS

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× PACKING

INTRODUCTION

TOMILK

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MILK

It is pouch packed milk. It may be used as such or for milk based

preparations. It shall be kept under refrigerated conditions. It is packed in

half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated

conditions. It is sold in arid around Patiala and neighbouring areas. Special

distribution control is needed, under refrigerated condition if transported to

very long distance.

GENERAL COMPOSITION FOR MILK

Percentage Cow Milk Buffalo Milk 

Fat 4.6 6.6

Proteins 3.4 3.9

Lactose 4.9 5.2

 Ash 0.7 0.8

Water 86.6 84.2

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STANDARD MILK

Milk Fat % (Min) 4.5Milk SNF % (Min) 8.5

PH (Max) 6.8

MBRT (Min) 5.00 Hrs

Phosphates Test Ng

Bacterial Count/ml. (Max) 30,000

Coliform/0.1 ml Nil

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INTRODUCTION

TO

CHEESE &

PANEER

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CHEESE & PANEER

CHEEDAR CHEESE:-

Cheedar Cheese is raw cheese. It is used as raw material of 

processed cheese and one of the base materials for other cheese namely

Pizza Cheese and Cheese Spread. It shall be kept at cold storing. The

product is packed in poly pack. The product can be held for one year also if 

kept below 5*C.

PROCESSED CHEESE:-

It is commonly called processed cheese. The product can be

consumed as such or can be used in bakery products. It shall be kept at

cold storing. The product is packed in 400 gms tin/200 gms tin and 1 Kg.

container. The packed product can be hold for one year, if kept below 5* C.

It is sold in India and can be exported also.

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PIZZA CHEESE:-

It is commonly called Pizza Cheese. Product can be consumed assuch or for making Pizza. It shall be kept under refrigeration for six months.

It is packed in 200 gms. poly packed container. Poly bag labeled best

before upto two· months under refrigeration from the date of manufacture.

CHEESE SPREAD:-

Product is consumed on spreading over bread, roti, paranthas. It shall

be preserved under refrigeration. The product is packed in 200 gms cup.

Product can be held for six months from the date of manufacturing if stored

below 5* C.

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CHEESE SPREAD

Moisture % (Max.on dry matter basis ) 60

Milk Fat % (Min.on dry matter basis ) 40

Salts% (Max. by Wt.) 3.0

Stabilizer %(Max. by Wt.) 0.02

(Ca. Chlomic, Sod. Cilrate, Enzme/others)

Emulsifier %( Max. by wt.) 4.0

Preservative% (Max. by wt.) 0.1Sorbic Acid or Nisin or both

Y & M Max./gm 60

Caliform Max./0.1 gm NIL

 Aerobic spores Max/gm 400

 Anaerobic spores Max/gm 200

RAW CHEDDAR CHEESE

Moisture % (Max.) 43

Fat % (Min.on dry matter basis) 42

Salts % (Max. By wt.) 0.20

Stabilizer/Emulsifier 

% (Max. By wt.) 0.2 *

Preservative % (Max. By wt.) 0.1 *

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PROCESSED CHEDDAR CHEESE

Moisture % (Max.on dry matter basis ) 47

Milk Fat % (Min.on dry matter basis ) 40

Salts % (Max. By wt.) 3.0

Stabilizer/Emulsifier 4.0

% (Max. By wt.}

Preservative %(Max. By wt.) 0.1

Sorbic Acid or Nisin or bothCalcium Chloride % (Max. By wt.) 0.02

Y & M (Max)/gm 60

Coliforms (Max/gm) NIL

 Aerobic Spores (max/gm) 400

 Anaerobic spores (Max/gm) 200

PANEER

 

Moisture % (Max.by Wt.) 60.00

Milk Fat % ( Dry Matter) 50.00

 Acidity % L.A.(Max.by Wt.) 0.50

Bacterial Count/g Max. 5x100000

Coliform/g Max 90

Y&M/g Max. 250

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INTRODUCTIONTO

DRINKS

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DRINKS

RASEELA:-

Raseela is a very popular product of Verka which was launched in

1995. It comes in two flavours -

i) Mango Raseela and ii) Pine apple RaseelaMango Raseela is prepared from mango pulp and Pineapple Raseela

from pineapple pulp. These are coming in 200 ml. tetrapak.

LASSI:-

Lassi, also called chhas refers to desi butter milk which is by product

obtained when churning curd led whole milk with curd indigeneous devices

for the production of desi butter.

Verka Lassi is very popular, specially in Punjab and it is also liked by

the people of other states. It comes in the 200 ml. tetrapack.

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PIO

It is known as Sweetened flavoured milk or bottle milk. The product

used in the form of drinking sweet milk. It is preserved at ambient

temperature. It is packed in 200 ml. bottle, 200 ml. tetrapak. The length of 

shelf life of product can be held far three months under ambient

temperature. It is sold in and around Punjab and upcountry market mainly

Delhi.

SWEETENED FLAVOURED MILK

Milk Fat % (Min.) 1.65

Total Milk Solids % (Min.) 17.0

Sugar % (Max.) 6.0

Turbidity Test Neg.

Creaming Index 20

Bacterial Spores per ml. (Max.) 5

LASSI

Milk Fat % 3.0 to 3.4

Total Solids % (By wt.) 20 - 23

Sugar % 12.00

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RASEEELA

Cheese Whey % 40

Sugar % 12-12.5

Mango Pulp% 10.00

Brix 15

 Acidity(%Citric Acid) 0.28

pH 3.9-4.1

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INTRODUCTIONTO

GHEE & BUTTER

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GHEE & BUTTER

GHEE:-

Ghee may be defined as clarified butter fat prepared chiefly from cow

or buffalo milk. The product can be used on roti / pranthas or can be used

as cooking other material for food. It is preserved at ambient temperature

for one year. It is packed on 500 gms., 2 Kgs., 5 Kgs. & 15 Kgs. bulk packin tin. It is sold anywhere in Punjab. No special distribution control is

needed.

BUTTER:-

Butter may be defined as a fat concentrate which is obtaining by

churning cream, gathering the fat into a compact mass and then working it.The product obtained from cow and buffalo milk or a combination

thereof or from cream or curd obtained from cow or buffalo milk or a

combinatio.n thereof, with or without the addition of common salt and

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colouring matter. It can be kept under refrigeration for three months. This

comes in packs of 10 gms., 100 gms. And 500 gms.

GHEE (AGMARK)

Boudine Test Neg.

B.R.reading(40 degree C.) 40 - 43

RM Value (Min.) 28.0

P.Value 1.0 - 2.0

FFA % Oleic Acid( Max) 0.30

BUTTER

TABLE WHITE

Fat% (Min.) 80.00 82.00

 Acidity %L.A. (Max.) 00.15 00.06

Curd % (Max) 01.00 01.50

Salt % (Max) 2.8 -

Coliform/ml. (Max.) 5 5

Y&M (Max)/g 20 20

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INTRODUCTION

TO

ICE CREAM &SWEETS

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ICE CREAM & SWEETS

ICE CREAM:-

Ice Cream may be defined as a frozen dairy product made suitable

blending and processing of cream and other milk products, together with

sugar and flavour, with or without colour and with the incorporation of air 

during the freezing process.

There are mainly three types of Verka Kulfies i.e. Malai Kulfi, Choco

bar and Mango bar. Malai Kulfi made with milk, malai and crushed nuts.

Choco bar contained chocolate and Mango bar kulfi contain mango flavour.

ICE CREAM

Weight (g/lts.) Min. 560-580

Total Solids (Min.) (By wt.) 38.5

Milk Fat % (Minimum) 13

 Acidity, L.A. % (Max) By Wt. 0.25

Sucrose % Max. (By Wt.) 14.50

Stab. Emul. % Max. 0.50

Bacterial Count/g (Max) 2,50,000Coliform/g (Max.) 90Phosphates Test Neg.

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KAJU PINNI & MILK CAKE

KAJU PINI MILK CAKE

Fat % 14.0 - 17.0 17.5 - 21.0

T.S. % 86.0 - 90.0 75.0 - 83.0

KULFI AND F/N CHOCOLATE

 Kulfi F/N Choc

Total Solid (%Min. By wt.) 42.00 38.50

Milk Fat %(%Min. By wt.) 13.00 13.00

Protein (%Min. By wt.) 3.50 3.50

 Acidity % Max (By wt.) 0.30 0.30

Sucrose % Min. (By wt.) 14.00 16.50

Count/g Max 2,50,000 2,50,000

Coliform/g Max. 100 100

Phosphaates Test Ng. Ng.

Starch Ng. Ng.

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INTRODUCTIONTO

MILK POWDER

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MILK POWDER

MILK POWDER:-

Dried Milk or Milk Powder is product obtained by the removal of water 

from milk by heat or other suitable means to produce a solid containing 5%

or less moisture. Whole milk, defatted or skim" milk may be used for drying.

It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year 

before use.

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SKIMMED MILK POWDER

Extra Standard

Grade Grade

Milk Fat % (Max.) 1.25 1.50

Moisture % (Max) 3.50 4.00

Titratable Acidity %L.A. (Max) 19.5ml 1.50

* of N/10 NaOH **

Insolubility Index(ml.Max) 0.5 2.00

Scorched Particles(Max) 15 mg 15 mg

(DISC.B) (DISC.B)

Total Ash % (Max.) 8.2 8.2

Lactate Content (Mg/g.Max) 1.50 -

Bact. Count/ g.Max) 40,000 50,000

Coliform Count/g.Max) NIL NIL

* Except Production designated as "High Heat"

which shall not be more than 2.0 ml

** Except Production designated as "High Heat"

which shall not be more than 2.5 ml

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INFANT MILK POWDER

Moisture % Max. (By Wt.) 4.50

Proteins % Min. 12.00

Milk Fat % (By Wt.) 18.00 to 28.00

Carbohydrates % ( Min By Wt.) 35.00

 Ash % (Max By Wt.) 8.50

 Acid Insoluble Ash %( Max By wt.) 0.10

In Solubility Index (ml. Max.) 0.5

Vitamin A, TU/100g Min. 350

Vitamin D. TU/100g Min. 180

Iron, mg/100g Min 5.00

Bacterial Count/g Max. 40,000

Coliform/0.10g Max. Absent

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MILK POWDER

Moisture % (Max.) 4.00

Total Solids % (Min.) 96.00

Fat % Min. 26.00

Insolubility Index (Max.) 0.5 ml *

Titratable Acidity % (Max.) 1.20

Bacterial Count/gm (Max.) 40,000

Coliform Count/0.1 g(max.) Absent

Staphylococcus

aureus/0.1g (Max) Absent

Salmonella/25g Absent

Shigella /25g Absent

* Insolubility index as per ADPI is1.0 ml for extra grade and 1.5ml for 

Starndard Grade.

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PRODUCTS&

PACKING

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PRODUCTS PACKING

GHEE POLY PACK/MONOCARTON

500 gms. & 1 Kg.

GHEE TIN PACK 500 gms., 1 Kg., 2 Kg., 5 Kg &15 Kg.

TABLE BUTTER 10 gms., 100 gms. & 500 gms.

CHEESE200/400 gms. Cekatainer, 200 gms.Singles, 400 gms Tin& 1 Kg. Brick

PIZZA CHEESE 200 gms. & 1 Kg. Pack

VERKA VIGOUR 500 gms. Jar, 500 gms. Refill & 1 Kg. Jar 

DAIRY WHITENER 500 gms. Pkt. & 10 Kg. Tin

SKIMMED MILK POWDER200 gms. & 500 gms. Bottle, 500 gms.Cekatainer  1 Kg. Pkt. & 25 Kg. Bag

WHOLE MILK POWDER 500 gms.Tin, 1 Kg. Tin, 10 Kg. Tin

SWEETENED FLAVOUREDMILK

200 ml. Bottle, 200 ml. Tetrapak

SWEET LASSI 200 ml. Tetrapak

MANGO RASEEELA 200 ml. Tetrapak

PINE APPLE RASEEELA 200 ml. Tetrapak

MILK CAKE /PEDA 200 gms Pkt.

KAJU PINNI 50 gms. Pkt.

MILK POUCHES Full Cream, Standardised, Toned, DoubleToned & Skimmed.

U.H.T. MILK 1 Lt. Tetrapak Standardised & Toned

MARKETING

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MILKFED is serving nationwide consumers through its net work of 

Regional offices and very strong Distribution channels. MILKFED markets a

wide range variety of Verka products which include liquid milk, skimmedmilk powder, whole milk powder, infant food, ghee, butter, cheese, lassi,

SFM, Ice Cream, Malted food etc. etc. The annual turnover of  MILKFED 

has crossed Rs.700 crores. Verka is a brand leader in milk powders

particularly in northern eastern sectors and SMP marketed by MILKFED 

commands a premium price over powders manufactured by

competitors who include multi-national as well as private trade and other 

Cooperative Federations. Now Verka is known for its quality,

freshness, purity and of course its home made taste.

EXTENSION OF THE BRAND

 After winning faith of innumerable consumers, Verka did not stop.

Changing times brought new trends, needs, tastes and hopes.

Verka, dynamic as ever too acquired newer forms of adding values to milk

and milk products. Apart from introducing new variants of UHT long shelf 

life milk and SFM in carry away bottles, Milkfed has a plan to add more

variety of flavours in SFM. VERKA Ice Cream in different flavours and

packaging’s is available in the market. Many new products are in pipe line.

In true sense, milk had never meant so much before.

EXPORT OF MILK PRODUCTS: 

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 After carving a niche in the national market, Verka brand has reached

in foreign market also. MILKFED has established its Ghee market in Middle

East. Verka Ghee reaches all the emirates and is available almost in allsuper markets. The penetration is so deep that Verka ghee is available

even in far off labour camps. In addition to Dubai, Saudi Arabia, Muscat,

 Australia and Japan, Verka Ghee is exported to Newzealand and Malaysia

also.

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ACHIEVEMENTS

On the basis of quality with efficient administration, MILKFED has notonly established new mile stone of providing services to Dairy farmers but

scaled new heights in delighting esteemed customers also. This has

resulted into tremendous achievements in all fields.

TURNOVER:

The annual turnover of Milkfed which was Rs.653 crores in the year 

2004-05 has hit the level of Rs.919 crores in the year 2007-08.

EQUITY PARTICIPATION:

The paid-up equity of Milkfed as on 31.3.2008 was to the tune of 

Rs.46.86 crores which comprises of Rs.28.93 crores from the cooperative

members and balance Rs.17.93 crores from State Government.

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MILKFED GROWTH AT A GLANCE

PARTICULARS UNIT 03-04 04-05 05-06 06-07 07-08

FUNCTIONAL

SOCIETIESCUMMU.NOS. 6445 6104 6101 5989 6155

MEMBERSHIPCUMMU.NOS IN

LACS3.76 3.56 3.63 3.60 3.65

 AVG. DAILY MILK

PROCLKG SPD 7.45 7.81 7.82 7.78 8.21

PEAK MILK PROC LKG SPD 10.04 11.64 11.37 11.54 12.39

 A.I. CLUSTER SOCS. COOMU.NOS. 323 341 388 433 504

FODDER SEED

SUPPLIEDM.Ts. 444.10 400.30 430.00 500.00 572.00

CATTLE FEED SOLD M.Ts. 73724 66970 66750 73577 86174

 AVG.DAILY CITY

SUPPLYLLPD 4.97 5.27 5.67 5.81 6.16

SALE OF SFM LAC PKTS/BTLS 30.32 35.85 42.49 41.92 61.11

SALE OF LASSI LAC PACKETS 10.54 12.20 16.89 19.16 29.51

SALE OF ICE-CREAM LAC LITRES 9.17 10.23 12.18 15.61 17.68

EXPORTS RS.IN LACS 698.17 1142.28 713.67 1140.35 1334.90

TURNOVER RS.IN CRORES 585.00 653.00 682.00 760.00 919.00

EVENTS

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Capt. Kanwaljit Singh, Hon'ble Cooperation Minister, Govt. of Punjab

launching calender of Milkfed, Punjab for the year 2009.

Capt. Kanwaljeet Singh Hon'ble Cooperation Minister, Govt. of Punjab

(left side) is interacting the performance of Milkfed with

Sh.G.S.Babehali, Chairman, Milkfed, Punjab.

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Sh.V.K.Singh, IAS, M.D., Milkfed, Punjab and Sh.H.S.Grewal, G.M., Milk

Plant, Mohali receiving prestigious "Best Productivity Award" from

Dr.Akhilesh Prasad Singh, Hon'ble Minister of State for Agriculture,

Govt. of India bagged by Milk Plant, Mohali .

Sh.V.K.Singh, IAS, M.D., Milkfed, Punjab is sharing the achievements

of Milkfed with Hon'ble Cooperation Minister, Govt. of Punjab,

Chairman, Milkfed, Punjab. and other dignitaries of Cooperation

Department.

Sardar Gurbachan Singh Babehali, Chairman of Milkfed,

Punjab has been elected as M.L.A. from Gurdaspur 

Constituency in the general assembly

Elections of Punjab held in February,2007.

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LOOKING BEYOND

× Milkfed strives to give better and remunerative price to the

farmers to make dairy attractive and sustainable profession.

× Providing improved technical input services to farmers.

× Setting up big commercial farms.

× More stress on clean milk production programme.

× Rural women empowerment.

× Massive modernisation of process and operations.

× Enforcement of stringent quality parameters.

× Strenghthing market base with specific stress on consumer 

market.

× Dynamic enhancement in Verka product mix.

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INTRODUCTION

TO

MARKETING

SECTION

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MARKETING SECTION

Market is of two types:-

× Urban Market

× Rural Market

In Verka Milk Plant urban market is done by a separate Marketing

Department that is headed by Incharge Marketing under the overall

guidance of General Manager. He is assisted by Sales Supervisors, Milk

Bar ManagerManagers, Milk Bar Attendents and Dairy Helper-cum-

Cleaners. The Marketing starts with the product planning and ends with

consumer's satisfaction. For this purpose, the Sales Supervisor regularly

visit the market to study market needs & supervise the sale under the

different market conditions.

MARKETING SYSTEM

a) City Supply: - Market milk supply was started with effect from

13th April, 1986. The Plant is supplying pasteurized & standardized milk

packed in half litre poly packs through a market network of 674 agencies,

11 Milk Bars, given on lease & 4 Plant owned Bars in Patiala & in satellitetowns like Rajpura, Sirhind, Bassi etc. The supply of milk has also been

started in the markets of Shimla, Uttrakhand & Haryana. The initiative taken

by the plant, bore fruit & the plant started generating instant cash crunch.

Milk is also supplied to Mother Dairy on Custom Packing basis.

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b) Sweetened Flavored Milk: - The plant introduced this milk

during 1988. It has increased its production/marketing which improved the

profitability. Plant has started the sale of this flavored milk not only withinthe state but also in metro cities like Delhi and neighboring states of 

Haryana & H.P. Keeping in view the demand; the Plant introduced the carry

away bottles for sweetened milk in 2004. Today with the addition of this

packing size in its fleet f the products, Plant is selling a record production of 

its unit.

c) Paneer & Curd: - To augment the financial position of the Plant

& with a view to diversity in the field of production, the Plant has alreadyintroduced Production/Marketing of Paneer (Cheese) within Patiala as well

as in Haryana. The sale of these two products is picking up day by day the

Plant in order to match the competition due to which the curd is now made

of Double Toned Milk which earlier was made of Toned Milk. This as a

result, raised the sale. 

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d) Cheese Plant: - A Cheese Plant with a capacity of 30 MTs per 

month has been set up recently with a cost of Rs. 1.46 Crores which has

started functioning after obtaining a certificate from BEREAU of INDIANSTANDARS (BIS). The maiden consignment of Processed Cheese in 400

gm Tins has been flagged off on 26 th May 1998 by the then Managing

Director, S. Amrik Singh, MILKFED PUNJAB, Chandigarh, to the Ministry of 

Defense. Thereafter, the supply of Processed Cheese is regular to the

Defense Forces & Civil Market all over the India

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URBAN MARKET

1. INCHARGE MARKETING:-

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INCHARGE MARKETING

SALES SUPERVISORS

SALES/MILK BAR MANAER

DIARY HELPER-CUM CLEANER

MILK BAR

ASSISTANT

MILK BAR

ASSISTANT

MILK BAR

ASSISTANT

MILK BAR

ASSISTANT

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To manage and organise all marketing functions, like sales of 

product, organise the city supply, advertisement, to check the functioning of 

all workers deputed in field and Milk Bars.

2. SALES SUPERVISOR:-

To sell the milk products to local dealers as well as outside dealers.

To ensure the payments from Govt. institutions, they also check the milk

bars and field requirements.

3. SALESMAN/MILK BAR MANAGER:-

To sell the product through Milk Bars, which are under the jurisdiction

of Milk Plant, Patiala.

4. MILK BAR ASSISTANTS:-

To assist the Milk Bar Manager at Milk Bars.

5. DAIRY HELPER-CUM CLEANER:-

In Verka Milk Plant they work as salesman, they have been given the

targets to sales, say 1000 products they sell the products market according

to demand and received cash, deposit to account department

RURAL MARKET

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But in case of Rural Marketing, products are sold through societies.

There is no any separate department for this purpose and the Rural

Marketing is secondary function of milk procurement department which isheaded by Manager Milk Procurement and works under the overall

guidance of Managing Director. He is assisted by Deputy Manager 

Procurement, Vety Officer, Milk Procurement Supervisors and Milk

Procurement Assistants.

1. THE MANAGER OF PROCUREMENT:-

62

PROCUREMENT MANAGER

DEPUTY PROCUREMENT

MANAGER

DEPUTY PROCUREMENT

MANAGER

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILKPROCUR

-EMENT

SUPERVI

-SOR

MILK

PROCUR-EMENT

ASSISTA

-NT

MILK

PROCUR-EMENT

ASSISTA

-NT

MILK

PROCUR-EMENT

ASSISTA

-NT

MILK

PROCUR-EMENT

ASSISTA

-NT

MILK

PROCUR-EMENT

ASSISTA

-NT

MILK

PROCUR-EMENT

ASSISTA

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He gives instructions & directions to Deputy Managers, Supervisors &

 Assistants, helps in day to-day problems, Management of Chilling Centres,

hold the meetings and maintain contact with people to persuade them for buying milk products from this plant.

2. DEPUTY MANAGERS:-

There are two Deputy Managers. They encourage their subordinates

to do work accurately, check the rates of milk, check exact quantity of milk,

solve the problems of procurement, supervise the work of subordinates.

3. MILK PROCUREMENT SUPERVISORS:-

He checks the milk rates, fats, solve the problems of Procurement

 Assistants, supervise the work, make proper raw material arrangements for 

without any interruption in production of milk products.

4. MILK PROCUREMENT ASSISTANTS:-

They follow the directions given by Manager, supervise the work for 

milk procurement, give orders to societies, full control on village societies,

check the qualtity of milk, maintain contracts with societies, solve early

society problems.

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MARKETING

STRATEGIES

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MARKETING STRATEGIES

The starting point for the effective rural marketing strategy is the rural

consumer and his product preferences. Studying the rural consumer 

closely, analyzing his needs, life styles and standard of living will enable

marketer to formulate effective marketing strategies. Elements for effective

marketing strategies are:-

1. Product planning

2. Pricing

3. Positioning of product

4. Distribution channel planning

5. Promotional planning

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1. PRODUCT PLANNING:-

Before entering into the production process, it would be important tounderstand the likely improvements and modifications required in the

existing products. The production design, colour and quality ought to be

planned as per demand and the taste of the rural consumers. This would

help make products acceptable to the rural population. For example, it has

been observed that rural consumers relish "Home made ghee" which is

prepared by heating butter obtained by churning curd. This process induces

a peculiar attempt the ripening process for manufacturing ghee and should

develop flavour as close to that of the "Home made ghee".

The packing of products should be strong enough to with stand rough

handling. The size of packing should be smaller than urban retail pack so

as to suit the affordability by the rural masses. A low unit price pack is

desirable because of the low purchasing power of rural consumers.

2. PRICING:-

Price is an important element of the marketing strategy. In rural areas,

the role of price becomes more significant because of low purchasing

power of the rural masses. This factor should be considered while pricing

the product. For example, the price of ghee must be lower than the cost of 

manufacturing ghee at home by milk producers, otherwise they would not

find it attractive to buy from the market.

Packing cost of the product should be kept as low as possible.

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3. POSITIONING OF PRODUCT:-

 After analyzing the preferences of the rural consumer a firm should

position its product in an appropriate way. The positioning of the product

can be done in many ways. For example:-

a) Low price positioning

b) Positioning on the sense of belongingness

c) Quality leadership

 After analyzing the product attributes and studying the rural habits,tastes and life style, one can come up with a proper strategy to position the

milk products in rural areas.

4. DISTRIBUTION CHANNEL PLANNING:-

Distribution is a major problem in rural marketing. Inspite of the

growing awareness about the potential of rural market, most marketingfirms have failed to tap it because they could not develop an effective

distribution system.

The rural areas hardly have any agents, dealers or stockiest.

Milk Plant has an advantage over the private enterprises because of their 

daily milk collection network of village level societies. The society works as

stockists/dealer and the secretary of the society becomes a good medium

to route the products to the ultimate consumer. Therefore, if the secretary is

given retailer's margin, he gets motivated to sell the products. Credit

facilities against the milk sale can also boost the sales. Gram Seva Samiti

can also be used as sales point by giving them suitable margin.

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5. PROMOTIONAL PLANNING:-

While deciding on as to which media would reach the prospectiverural buyers effectively, the socio-cultural background, the literacy level and

their media preferences need to be studied. Rural people with low literacy

level would only remember brands by picture symbols as opposed to brand

names. For the rural consumer a message should be simple and design

should be catchy to comprehend.

 As mentioned earlier one should understand the psychology of the

rural consumer before designing the "Message". Rural milk producers

generally perceive that converting milk into ghee at home is a cheaper 

proposition. The message should so designed as to break these notions of 

rural masses. Rural people should educate that conversion of milk into

ghee at home is a costlier proposition. Posters in this context should be

pasted at various societies and message should be communicated through

village extension workers.

Personal contact of village extension workers and secretary with

the producer members also plays an important role. Milk van could be

painted with advertisements of the brand of the Milk Plant to increase

awareness. Because of literacy level in rural areas, media selection

becomes a problem. However, "Word of mouth" advertising will emerged as

the most effective means of advertising and communications. It is also feltthat opinion leaders and important informants in the village have a greater 

role in improving product image. Field team should contact them and seek

their help. Another popular effective rural media is "Wall painting" which is

already done by the Milk Plant's authority in case of sale of Verka cattle

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feed. Propaganda and demonstration vans, loudspeakers and participation

in village fairs & melas help in turning the villagers into buyers.

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RESEARCH OBJECTIVES

× To study the functioning of Verka Milk Plant.

× To study the consumer satisfaction towards Verka Milk products.

× To find out knowledge regarding the marketing strategies of Verka Milk

products.

× To get information about the awareness of Verka Milk products among

consumers.

× To study the brand image and media promotion strategies.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Scope of the study

The study/research has been performed in the Verka milk plant,

Patiala.

Purpose & relevance of the study

The purpose of my study is to find the satisfaction of the consumers

regarding the various products of Verka milk plant.

Location & the period of the study

The period of study/research covers a period from 12 th Feb. to 26th

May 2009. This period includes both the time taken in the plant & in the

survey to find the satisfaction of the consumers regarding the milk product.

USEFULNESS OF STUDY

The study can be useful to the company as they might come to know

about the importance of brand image and marketing strategies in the Verka

Milk Plant.

The study can be of great importance to the company.

Sample Size:

I have covered 100 consumers, Patiala.

Types of Data:

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I have used prefer as well as secondary data. Some data is been

taken from internet, some from MILKFED literature and some is gathered

through questionnaire.

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DATA

ANALYSIS

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1. Are you aware of Verka milk brand?

Yes

No

Interpretation: Out of 100 persons, when I asked this question then all the

persons said that they know about VERKA MILK BRAND. So I can say that

the awareness about VERKA MILK BRAND in Patiala is very good now, all

the persons know about VERKA MILK BRAND.

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2. Kind / source of milk purchased?

PackedDairy

Milkman

Interpretation: Out of 100 persons, when I asked this question then

19 persons said that they used packed milk, 27 persons said that they used

dairy milk & remaining 54 persons said that they used milkman milk.

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3. Which of the following would you prefer most?

QualityQuantity

Taste

Price

All

Interpretation: Out of 100 persons, when I asked this question then

73 persons prefer quality, 52 persons prefer quantity, 89 persons prefer 

taste, 93 persons prefer price & 35 persons prefer all options-quality,quantity, price or taste.

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4. Are you aware that Verka produces different kind of milk

for different segment of consumer?Yes

No

Interpretation: Out of 100 persons, when I asked this question then

44 persons said that they are aware about different kinds of milk for 

different segment of consumer but 56 persons said that they are not aware

about different kinds of milk for different segment of consumer.

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5. Are you aware that skimmed milk is good for patient and

health conscious people Contain 0.05% fats?Yes

No

Interpretation: Out of 100 persons, when I asked this question then

only 27 persons aware about skimmed milk is good for patient and health

conscious people because it Contain 0.05% fats but 73 persons are not

aware about this.

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6. Are you aware that Verka milk is pasteurized?

YesNo

Interpretation: Out of 100 persons, when I asked this question then

58 persons aware about verka milk is pasteurized but 42 persons are not

aware about this.

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7. Are you aware of the shelf life of Verka milk?

YesNo

Interpretation: Out of 100 persons, when I asked this question then

only 16 persons aware about the shelf life of verka milk but 84 persons are

not aware about shelf life of verka milk.

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8. Are you satisfied with customer service provided by Verka

Company?

Yes

No

Interpretation: Out of 19 persons, when I asked this question then 15

persons are satisfied with customer service provided by verka company but

4 persons are not satisfied.

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9. Why do you prefer Verka over other brand?

PriceTaste

Quality

Availability

Interpretation: Out of 19 persons, when I asked this question then 7

persons prefer price, 3 persons prefer taste, 4 persons prefer quality &

remaining 5 persons prefer availability.

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10. Are you aware that standard toned & double toned milk are

the best to be used for household purposed?Yes

No

Interpretation: Out of 100 persons, when I asked this question then

only 34 persons aware about that standard toned & double toned milk are

the best to be used for household purposed but 66 persons are not aware

about this.

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11. Are you aware that full cream milk is the best for growing

children & sports person as it contain 6.0% of facts?Yes

No

Interpretation: Out of 100 persons, when I asked this question then

only 22 persons aware about that full cream milk is the best for growing

children & sports person as it contain 6.0% of facts but 78 persons are not

aware about this.

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12. Should Verka use any kind of media to promote its

products & to make the consumer aware about itsproducts?

Yes

No

Interpretation: Out of 100 persons, when I asked this question then

all persons agree that verka should use any kind of media to promote its

products & to make the consumers aware about products.

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SWOT

ANALYSIS

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STRENGTHS

1. Brand Loyalty among the rural people for Verka products.

2. Good brand image of Verka products in the minds of rural

people.

3. Faith on Verka products by the rural farmers.

4. Rural people satisfaction with quality, price, quantity and

availability is also strengthening the dairy business.

WEAKNESSES

1. Lack of proper advertisements by the plant, such as posters,

glow signs, etc.

2. Lack of proper distribution system in rural areas.

3. Lack of proper marketing network in rural areas as like in urban

areas.

4. Very high rates of products such as bottle milk for Rs.12 for 200

ml.

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OPPORTUNITIES

1. Greatly improved expert potential for milk products of western

as well as traditional types.

2. Proper utilisation of available resources to decrease per unit

cost.

3. By product utilisation for import substitution.

4. Growing demand for milk and milk products.

THREATS

1. Introduction of foreign products in Indian market.

2. Poor quality of milk.

3. The liberalisation of Dairy Industry is likely to be exploited by

multi -nationals. They will be interested in manufacturing milk

products which yield high profits. It will create milk shortage in

the country adversely affecting the consumers.

4. Export of quality feed under the liberalisation policy.

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SUGGESTIONS

&

RECOMMENDATIONS

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SUGGESTIONS & RECOMMENDATIONS

Though the survey revealed that rural people like Verka's products to

a great extent and there is more demand of Verka brand but then also

some people want a change in its price, quality, quantity and some in

availability. Therefore, to make its customers fully satisfied, some measures

should be taken which will also add to its sales and improve its position in

the rural market. So, there were some suggestions given by the people who

are summed up as follows:-

a) Reduction in Price:-

Generally, people are not satisfied with the prices of 'Verka products'

they feel the products are bit expensive. Thus, to satisfy its customers,

price should be reduced to some extent.

b) Distribution System should be improved:-

People of rural area are not satisfied with the distribution system. So,

distribution system should be improved in rural areas.

c) Lack of Advertisement:-

Rural people have also complained about the advertisement of the

brand Verka. It should be made popular through more and more

advertisements and schemes so as to attract people of all age groups.

More hoardings should be put in villages and with the help of word of mouth

more awareness about products should be given.

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d) Availability:-

The products of Verka should be easily available in societies. There

are some areas where Verka products are not available easily in societies.Therefore, Verka should expand its market in rural area, so that products

are available easily. More variety of products should be send to the

societies.

e) Improve quality of cattle feed:-

Some people also suggested that quality of feed which is supplied to

societies should be improved so that good quality feed is given to stock.

 Apart from all the above, some rural people had nothing to suggest

and they said that it needs no amendments.

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CONCLUSION

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CONCLUSION

 At last I conclude from my training and from my survey that

every person is aware about the verka milk products. But I find that

to bring more awareness about the verka products and there

benefits there are a need to use different media by the verka milk

plant. In my visit I find that most of the people do not like topurchase the products due to the high price of products. On the

other hand some prefers quality as well as taste also. One more

thing I want to say that it is necessary to give information about the

verka products in the rural areas also.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

WEBSITES

• WWW.MILKFED.NIC.IN

• WWW.AMAZON.COM/MARKETING-MANAGEMENT-PHILIP-

KOTLER/DP/0130336297

• WWW.WIKIPEDIA.ORG/WIKI/MARKETING_STRATEGY

• WWW.PBCOOPERATIVES.GOV.IN/MILKFED_PRODUCTS.H

TM

• WWW.WIKIMAPIA.ORG/513852/MILK-PLANT-VERKA

• WWW.BUSINESS-STANDARD.COM/INDIA/NEWS/VERKA-MILK-

PLANT-MAY-GOSTIR/270274

BOOKS

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• MARKETING MANAGEMENT

(C N SONTAKKI)

• PRODUCT MANAGEMENT

(S.A. CHUNAWALLA)

• MARKETING RESEARCH

(BALRAM DOGRA

GURDEV S. THAKURRAJESH VERMA)

• PRINCIPLES & PRACTICES OF MANAGEMENT

(L M PRASAD)

• STRATEGIC PLANNING & MANAGEMENT

(L M PRASAD)

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ANNEXURE

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CUSTMER SATISFACTION REGARDING VERKA PRODUCT MILK

Name:

Add:

Telephone No:

1. Kind/source of milk purchased?

Packed

Dairy

Milkman

2. Which of the following would you prefer most?

Quality

Quantity

Taste

Price

 Availability

 All

3. Are you aware of Verka milk brand?

Yes

No

4. Are you aware that Verka produces different kind of milk for 

different segment of consumer?

Yes

No

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5. Are you aware that skimmed milk is good for patient and health

conscious people Contain 0.05% fats?

YesNo

6. Are you aware that Verka milk is pasteurized?

Yes

No

7. Are you aware of the shelf life of Verka milk?

Yes

No

8. Are you satisfied with customer service provided by Verka

Company?

Yes

No

9. Why do you prefer Verka over other brand?

Price

Taste

Quality

 Availability

10. Are you aware that standard toned & double toned milk are

the best to be used for household purposed?

Yes

No

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11. Are you aware that full cream milk is the best for growing

children & sports person as it contain 6.0% of facts?

YesNo

12. Is Verka using any kind of media to promote its products &

to make the consumer aware about its products?

Yes

No

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× To study the consumer satisfaction towards Verka Milk products.

× To find out knowledge regarding the marketing strategies of Verka Milk

products.

× To get information about the awareness of Verka Milk products among

consumers.

× To study the brand image and media promotion strategies.