final project in 2003

CHAPTER – I

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MARKETINGDefinition

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others. A human need is a state of deprivation of some basic satisfaction. People require food, clothing, shelter, safety, belonging, and esteem. These needs are not created by society or by marketers. They exist in the very texture of human biology and the human condition. Wants are desires for specific satisfiers of needs. Although people’s needs are few, their wants are many. They are continually shaped and reshaped by social forces and institutions, including churches, schools, families and business corporations. Demands are wants for specific products that are backed by an ability and willingness to buy them. Companies must measure not only how many people want their product but, more importantly, how many would actually be willing and able to buy it. Market

A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. Marketers

When one party is more actively seeking an exchange than the other party, we call the first party a marketer and the second party a prospect. A marketer is someone seeking one or more prospects who might engage in an exchange of values. A prospect is someone whom the marketer identifies as potentially willing and able to engage in an exchange of values. Marketers do not create needs. Marketers influence wants. Marketers influence demand by making the product appropriate, attractive, affordable, and easily available to target consumers. They also communicate their offering to prospects. Society influences wants. People living in different societies prefer different types of food items, different types of apparel and even different types of jewelers. A product is anything that can be offered to satisfy a need or want. Offering and solution are synonyms to the product in marketing context. A product or offering can consist of as many as three components: physical good(s), service(s), and idea(s). Value is the consumer’s estimate of the product’s overall capacity to satisfy his or her needs.

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Marketers offer value to a consumer when the satisfaction of customer's requirements takes place at the lowest possible cost of acquisition, ownership, and use.

Marketing management

Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

The Marketing Concept

The marketing concept holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets. The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability. Target market

No company can operate in every market and satisfy every need. Nor can it always do a good job within one broad market. Customer needs

Marketing is about meeting needs of target markets profitably. The key to professional marketing is to understand their customers’ real needs and meet them better than any competitor can. Some marketers draw a distinction between responsive marketing and creative marketing. A responsive marketer finds a stated need and fills it. A creative marketer discovers and produces solutions that customer did not ask for but to which they enthusiastically respond. Integrated Marketing

When all the company’s department’s work together to serve the customer’s interests, the result is integrated marketing.Integrated marketing takes on two levels. First, the various marketing functions-sales force, advertising, product management, marketing research, and so on – must work together. Second must be well coordinated with other company departments. The company is doing proper marketing only when all employees appreciate their impact on customer satisfaction. To foster teamwork among all departments, the company carries out internal marketing as well as external marketing. External marketing is marketing directed at people outside the company. Internal marketing is the task of successfully hiring,

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training, and motivating employees who want to serve the customers well. In fact internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide excellent service.Profitability

The ultimate purpose of the marketing concept is to help organizations achieve their goals. In the case of private firms, the major goal is profit. Marketing managers have to provide value to the customer and profits to the organization. Marketing managers have to evaluate the profitability of all alternative marketing strategies and decisions and choose most profitable decisions for long-term survival and growth of the firm.

Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'

The concept of marketing has changed and evolved over time. Whilst in today’s business world, the customer is at the forefront, not all businesses in the past followed this concept. Their thinking, orientation or ideology put other factors rather than the customer first. Let us examine these below.

Production Oriented

The focus of the business is not the needs of the customer, but of reducing costs by mass production. By reaching economies of scale the business will maximize profits by reducing costs.

Product Orientation

The Company believes that they have a superior product, based on quality and features, and because of this they feel their customers will like it also.

Sales Orientation

The focus here is to make the product, and then try to sell it to the target market. However, the problem could be that consumers do not like what is being sold to them.

Market Orientation

Puts the customer at the heart of the business. The organization tries to understand the needs of the customers by using appropriate research methods, appropriate processes are developed to make sure information from customers is fed back into the heart of the organization. In essence all activities in the organization are based around the customer. The customer is truly king! In today’s competitive world putting the customer at the heart of the operation is strategically important. Whilst some organizations in certain industries

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may follow anything other than the market orientation concept, those that follow the market orientation concept have a greater chance of being successful.

The marketing mix principles (also known as the 4 p’s.) are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is a part of the organizations planning process and consists of analyzing the defined: The many possibilities gather into four groups of variables known as the 'four Ps'; product, price, place

Product means the totality of 'goods and services' that the company offers the target market.

Price is what customers pay to get the product.

Place includes company activities that make the product available to target consumers.

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Promotion means activities that communicate the merits of the product and persuade target customers to buy it.

BRAND

Definition

A brand, in short, can be defined as a seller’s promise to provide consistently a unique set of characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign, symbol or a combination of all these planned to differentiate the goods/services of one seller or group of sellers from those of competitors.

Brand is nothing but an assortment of memories in customers mind. Brand represents values, ideas and even personality. It is a set of functional, emotional and rational associations and benefits which have occupied target market’s mind.

Brand Equity:

Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumer’s response to the Brand Marketing. Brand Equity exists as a function of consumer choice in the market place. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service.

Brand Identity:

Brand identity is the total proposal/promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumer’s minds. Brand identity is all that an organization wants the brand to be considered as. It is a feature linked with a specific company, product, service or individual. It is a way of externally expressing a brand to the world.

Brand identity is the noticeable elements of a brand (for instance - Trademark color, logo, name, and symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to grow your company’s brand. Brand identity is a basic means of consumer recognition and represents the brand’s distinction from its competitors. Brand identity should be sustainable. It is crucial so that the consumers instantly correlate with your product/service.

Brand Recognition

The extent to which the general public (or an organization's target market) is able to identify a brand by its attributes. Brand recognition is most successful when people can

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state a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans and colors.

Brand Attributes:

Brand Attributes portray a company’s brand characteristics. They signify the basic nature of brand. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in creating brand identity. A strong brand must have following attributes:

1. Relevancy- A strong brand must be relevant. It must meet people’s expectations and should perform the way they want it to. A good job must be done to persuade consumers to buy the product; else inspire of your product being unique, people will not buy it.

2. Consistency- A consistent brand signifies what the brand stands for and builds customers trust in brand. A consistent brand is where the company communicates message in a way that does not deviate from the core brand proposition.

3. Proper positioning- A strong brand should be positioned so that it makes a place in target audience mind and they prefer it over other brands.

4. Sustainable- A strong brand makes a business competitive. A sustainable brand drives an organization towards innovation and success.

5. Credibility- A strong brand should do what it promises. The way you communicate your brand to the audience/ customers should be realistic. It should not fail to deliver what it promises.

6. Inspirational- A strong brand should transcend/ inspire the category it is famous for.

7. Uniqueness- A strong brand should be different and unique. It should set you apart from other competitors in market.

8. Appealing- A strong brand should be attractive. Customers should be attracted by the promise you make and by the value you deliver.

Brand Recall

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition.

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http://www.asiamarketresearch.com/glossary/brand-recognition.htm

Common market research usage is that pure brand recall requires "unaided recall". For example a respondent may be asked to recall the names of any cars he may know, or any whisky brands he may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aided recall" measures the extent to which a brand name is remembered when the actual brand name is prompted.

Brand Positioning:

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy.

A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors.

Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customer’s views and opinions.

There are various positioning errors, such as-

1. Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the brand.

2. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand.

3. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand.

4. Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

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BRAND AWARENESS PLAN

The major components of a plan to develop brand awareness are: Identifying and understanding your target customers Creating a company name, logo, and slogans Adding value through packaging, location, service, special events, etc. Advertising After-sale follow-up and customer relations management

BRAND AWARENESS

Brand awareness is the probability that consumers are familiar about the life and availability of the product. It is the degree to which consumers precisely associate the brand with the specific product. It is measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both brand recognition as well as brand recall. Brand recognition is the ability of consumer to recognize prior knowledge of brand when they are asked questions about that brand or when they are shown that specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or heard. While brand recall is the potential of customer to recover a brand from his memory when given the product class/category, needs satisfied by that category or buying scenario as a signal. In other words, it refers that consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. There are two types of brand awareness:

1. Aided awareness- This means that on mentioning the product category, the customers recognize your brand from the lists of brands shown.

2. Top of mind awareness (Immediate brand recall)- This means that on mentioning the product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which consumers make product-related decisions with the brand present or not.

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Building brand awareness is essential for building brand equity. It includes use of various renowned channels of promotion such as advertising, word of mouth publicity, social media like blogs, sponsorships, launching events, etc. To create brand awareness, it is important to create reliable brand image, slogans and taglines. The brand message to be communicated should also be consistent. Strong brand awareness leads to high sales and high market share. Brand awareness can be regarded as a means through which consumers become acquainted and familiar with a brand and recognize that brand.

NEED FOR STUDY

1. To have a practical knowledge on a company and what they are implements various tools to create brand awareness in the market.

2. What makes a brand comes into the customers mind when they think about milk product.

3. To know practically how various tools are used to maintain the image that is been already created.

4. To study on brand measures is very much relevant in today’s business scenario characterized by tough competitor

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OBJECTIVES OF THE STUDY

1. To understand the Brand Awareness.2. To understand the various promotional activities to brand.3. To understand the various effective tools covered by the vijaya dairy.4. To understand the brand recognition among the customers.5. To assess perception of customers towards vijaya products.

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LIMITATIONS

1. The overall analysis and data collection was through personal interview by using questionnaire.

2. The sample was restricted to 100 customers, which may restrict the scope and completion of study.

3. The scope of study is restricted only to VIJAYAWADA.

4. Owing to their preoccupation some customers were unable to answer the complete question.

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RESEARCH METHODOLOGY

Research was conducted based on multi sampling method

SOURCES OF DATA

Under the concept of methodology, the methods adopted by me to collect the data and to analyze the collected data are widely dealt. The method adopted by me at “THE KRISHNA DISTRICT MILK PRODUCERS’MUTUALLY AIDED CO-OPERATIVE UNION LIMITED” for the collection of data is “Questionnaire Method”.

The data for the study has been collected through primary and secondary sources.

Primary Data: The primary data for the study has been collected using a questionnaire. The questionnaire consists of questions which are closed-ended.

The other alternative methods available are:

I have selected questionnaire method for the following inherent advantages:

o It requires far less skills on the part of the researcher, when compared to

conducting an interview.o It provides a good and permanent record of data, which is not possible in an

interview.o Respondents, who are not easily approachable, can also be reached

conveniently. Secondary Data: The secondary data used for the study are

o Website such as www.google.com search for industry profile,

www.vijayadairy.com for company profile.o Company’s record for company profile.

o Academic text books such as: Marketing Management-Philip Kotler

DATA COLLLECTION

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http://www.google.com/

Data Collection Method: The method used is communication method. Data Research Instrument: The instrument used is questionnaire method. This

project includes structured questions (closed-ended) and dichotomous questions (yes or No).The questions help in collecting primary data about satisfaction of customers with special reference to “THE KRISHNA DISTRICT MILK PRODUCER’S MUTUALLY AIDED CO-OPERATIVE UNION LIMITED” at Vijayawada.

DETAILS OF SAMPLING:

Sampling is a selection of some part of an aggregate or totally on the basis of which a judgments or interference about the aggregate or totally is made. In brief, a sample is a “smaller population of larger whale”.

Sample unit: A survey on satisfaction of customers. Sample method: Simple random sampling technique is used to obtain a

representative sample. Sample size: The sample size of my respondents is 100 customers to create a

Brand awareness. Sample area: The area of sampling which I have selected for my study is Krishna

district (Vijayawada).

DATA ANALYSIS TECHNIQUES: The data analysis is done with the help of calculation of percentages, using tables and charts.

Percentage Method: The data analysis will be done with the help of calculation of percentages using tables and charts.

Graphical Method: The data is collected through questionnaire method which is represented through graph.

LIMITATIONS OF STUDY:

The time period provide for the research is very limited as the study on satisfaction of customers are very wide.

Personal bias may involve in the study as it is carried through questionnaires. Un-willingness and inability of the respondent to provide information. The research is conducted only at one place (Vijayawada), which itself limits the

study.

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CHAPTER – II

INDUSTRY PROFILE

AND

COMPANY PROFILE

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INDUSTRY PROFILE

DAIRY INDUSTRY IN INDIA

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities

galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest

and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the

international dairy processor in India. The Indian dairy industry is rapidly growing, trying

to keep pace with the galloping progress around the world. As he expands his overseas

operations to India many profitable options await him. He may transfer technology, sign

joint ventures or use India as a sourcing center for regional exports. The liberalization of

the Indian economy beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view

of expanding potential for export to Europe and the West. Moreover with WTO

regulations expected to come into force in coming years all the developed countries

which are among big exporters today would have to withdraw the support and subsidy to

their domestic milk products sector. Also India today is the lowest cost producer of per

liters of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8

dollars. Also to take advantage of this lowest cost of milk production and increasing

production in the country multinational companies are planning to expand their activities

here. Some of these milk producers have already obtained quality standard certificates

from the authorities. This will help them in marketing their products in foreign countries

in processed form.

The urban market for milk products is expected to grow at an accelerated pace of

around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to

come from the greater emphasis on the processed foods sector and also by increase in the

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conversion of milk into milk products. By 2005, the value of Indian dairy produce is

expected to be Rs 10,00,000 million. Presently the market is valued at around

Rs7,00,000mn

Background

India with 134mn cows and 125mn buffaloes, has the largest population of cattle in

the world. Total cattle population in the country as on October'00 stood at 313mn. More

than fifty percent of the buffaloes and twenty percent of the cattle in the world are found

in India and most of these are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products.

Presently there are around 70,000 village dairy cooperatives across the country. The co-

operative societies are federated into 170 district milk producers unions, which is turn has

22-state cooperative dairy federation. Milk production gives employment to more than

72mn dairy farmers. In terms of total production, India is the leading producer of milk in

the world followed by USA. The milk production in 1999-00 is estimated at 78mn MT as

compared to 74.5mn MT in the previous year. This production is expected to increase to

81mn MT by 2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT

while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according

to FAO estimates, Indian production has increased by 4 per cent. The milk production in

India accounts for more than 13% of the total world output and 57% of total Asia's

production. The top five milk producing nations in the world are India ,USA, Russia,

Germany and France.

Although milk production has grown at a fast pace during the last three decades

(courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the

low yield are

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Lack of use of scientific practices in milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.

DAIRY

A dairy is a facility for the extraction and processing of animal milk mostly from

cows or goats, but also from buffalo, sheep, horses or camels for human consumption.

Typically it is a farm (dairy farm) or section of a farm that is concerned with the

production of milk, butter and cheese.

Terminology differs slightly between countries. In particular, in the U.S. a dairy

can also be a facility that processes, distributes and sells dairy products, or a room,

building or establishment where milk is kept and butter or cheese is made. In New

Zealand English a dairy means a corner convenience store, or superette—and dairy

factory is the term for what is elsewhere called a dairy.

As an attributive, the word dairy refers to milk-based products, derivatives and

processes, and the animals and workers involved in their production: for example dairy

cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a

variety of dairy products. These establishments constitute the dairy industry, a component

of the food industry.

Dairy development in India:

India has the world's largest cattle buffalo population adapted to tropical climate

and poor nutrition and environment. According to Livestock census 1982, India's bovine

population was 191 million and 69million buffaloes. The forecast for 2000A.D is 204

million cattle and 78 million buffaloes.

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Dairy development in India received a fillip after independence when

industrialization and awakening warranted the establishment of organized milk

collection, processing, distribution of milk to cater the needs of the expanded urban

population. Planned development of dairying was first taken up in the First five year plan

(1951-56). The main deterrent factor for milk production was inadequacy of suitable

marketing structure in the rural areas. Milk was being marketed in the form of ghee

which did not provide sufficient income to the farmers to take up the dairying. In most of

the states, larges dairies have been established with direct milk between rural areas. Milk

was being marketed in the form of ghee which did not provide sufficient income to the

farmers to take up the dairying. In most of the states, large dairies have been established

with direct milk between rural producers and urban milk treatment units. Some of the

dairy units also established a chain of mill collection and chilling centers in the rural

areas to afford necessary facilities for handling milk in large volume and for long

distance transport without spoilage. These processing centers have had a stimulating

effect on the dairy industry in the country.

India has world's largest cattle population. However, per capital cattle population

is very less compared to developed nations. Dairy farming is regarded as a subsidiary

occupation in India. Now, it has become an important agro business. First, dairy farm is

established by military at Allahabad, in 1889. British troops got milk supplies from that

farm. It also organized cross breeding with European cattle breeds.

India is a country of village where farmers have small land holdings. They had

been practicing intensive cropping. As a result, production increases, but not

commensurate to the inputs. Thus the input-output ratio started getting balanced. The

need for finds was felt more and more to buy inputs. Money lenders borrow money at

very high interest rates. They exploited the farmers who were poor.

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As a result, a large number of farmers in Pune and Ahmednagar open hostilities,

against money lenders in 1879. Subsequently land improvement act, 1883 and agriculture

act, 1884 were passed to advanced loans at reasonable rates of interest to farmers. The

government realized that the cooperative credit society act was essential. But, enacted act

had following shortcomings.

1. Only 5 credit societies are registered.

2. Classification of the societies into urban and rural was scientific.

3. It was selected regarding distribution of profit. Thus another act named "The Co-

operative Societies Act 1912" was enacted. The act tool care of credit unions

under the supervision of central bank.

The co-operative unions remained control subject. In the year 1919, Cooperative Societies became a state subject and fell within the scope of

Provision legislature. Each province started formulation of their requirements.

After Intendance, the cooperative movement made rapid studies and government adopted

the policy of promoting of cooperative movement for establishing economic welfare in

the country. The cooperative sector was given an important place in the new economy

and acted as a balance between private sector and public sector. It becomes necessary that

co-operative legislation must keep pace with the progress of movement and there should

be uniformity of cooperative Society Act (1956) was amended 19 times to suit the

changing circumstances. Hence the Government of India appointed a Committee in 1956

to review co-operative acts in different states and prepared a model bill.

A.P DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION (APDDCF):

APDDCF was formed in October 1981 to implement operation flood-II program

through active involvement of producers in organizing milk production, procurement,

processing and marketing on "three- tier" cooperative structure as per the national policy

of Government of India. The three-tier system consists of primary dairy in operative

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societies at village level, co-operative unions at district level and federation at the state

level.

PLANNING INVESTMENT IN OPERATION FLOOD-II:

I plan - 34.43Crores

II plan - 247.53 Crores

III plan - 187.00 Crores

IV plan - 349.17 Crores

V plan - 1166.00 Crores

VI plan - 1600.00 Crores

VII plan - 1700.00 Crores

Milk Products

The surplus milk after meeting requirement of the liquid milk is being converted

into products like food, milk powder, Ghee, Butter, Sterilized milk, Doodh peda, etc. All

these products subject to strict quality control before being dispatched.

The A.P Dairy Development Federation has got 6 product manufacturing units in

the A.P., namely:

1. Milk Products Factory, Hyderabad

2. Milk Products Factory, Chittor

3. Milk Products Factory, Nandyal

4. Milk Products Factory, Produtoor

5. Sangam Dairy, Vadlamudi

6. Milk Products Factory, Vijayawada

The marketing division of the federation is doing marketing of the milk produced by the

above units. Public relations advertisement, training are controlled by the Joint Director

(Training & Marketing). The marketing wing consists 38 members of employees

presently.

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MAJOR DAIRY PRODUCT MANUFACTURES IN INDIA AND

THEIR BRANDS ARE EXPLAINED

COMPANY BRANDSMAJORPRODUCTS

NESTLE

Milk-Maid, Ceralac, Lactogen, Milo and Everyday

Sweetened Condensed Milk Powder, Malted Food, Milk powder and dairy whitener, Ghee and Ice Cream.

MILD FOODS LTD Milk food Ghee and Ice Cream

SMITUKLINE BEECHEM LTD

Malted Milk food, Ghee Butter and other Baby foods

GUJARATH COOPERATIVE MARKET FEDERATION LTD

Butter, Ghee and Other milk Products

CARDBURY Bournvita Infant Milk food, Malted Milk food

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BRITANNIA Milk Man

Flavoured Milk, Ghee, Milk Powder, Biscuits and Ghee

ORGANIZATION OF A DIARY FARM

There are many activities involved in successful running of a dairy farm. Many

one of these activities is as important as any other for profitable dairy farming.

Coordination of all these activities in a dairy farm is known as organization of the dairy

farm.

Management of Animals:

These successes of dairy depend upon the good health and well being of the cows

and buffaloes maintained in the dairy and their production. The various aspects to be

considered are:

Housing

Feeding

Breeding

Disease control

Management of labour:

Labour is becoming costly and scarce and hence organization is becoming more

difficult .The farm should be so planned that it shall be possible to completely manage

with family labour. Hired labour should be minimum and used only for such operations

as sowing, harvesting etc., Permanent labour if employed should be minimum but

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provided with all facilities like housing and should well paid and looked after so that they

will work whole heartedly.

Management of equipment:

Small dairies may have less equipment and machinery like chilling plant, pasteurizing plant, tractor, trailor, harvesters, and such other agricultural equipments. These have to be kept in good working condition. So that all dairy and agricultural operations will go on normally so that all dairy and agricultural operations will go on normally and milk may be transported in good condition for marketing.

Management of milk and milk products:

The profitability of a dairy depends upon the farm in which the milk is disposed

of. Fluid milk fetches more money than milk products. Selling in cities fetches more

money than in smaller towns. Milk transported to longer distances may cost more on

transport. There is a chance of spoilage if more time is allowed between milking and sale

unless milk is pasteurized and preserved properly.

Record Keeping:

Record keeping is important in a dairy which will enable us to know the actual

position of the dairy in all aspects to enable us to plan properly. Records may pertain to

all aspects of dairying viz., feeding, breeding and management. It will enable the farmer

to breed the cows inn time to give balanced rations according to mild yield, to know the

actual production of milk of individual cows, to know profit and loss in the farm etc.,

Opportunities in dairy farming:

Dairying is one of the important side businesses of ninety percent of the

agriculturists of our villages. A cattle rearing are an age old practice and almost all the

land holding people keep one agriculture operations. Dairy enterprise is an efficient and

labor intensive business, so that the whole family of the farmer is pressed into service and

they are able to produce some productive response from the limited holding, utilizing

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agricultural by products and wastes that will go to waste otherwise. Both males and

females and old and young can be usefully employed for different types of work in a

dairy farm. The byproducts of dairy industry like skim milk, when, etc., can be fed to

other livestock. The skim milk is of high value and can be used for poultry and swine

with more profits. Farmers who sell milk fat in the form of butter and ghee produce skim

milk. This can be effectively used in feeding pigs and poultry since skim milk is an

excellent source of protein, minerals and vitamins. The dairy industry can also provide

various job opportunities to the millions of the rural and urban' population apart from

providing the various opportunities.

LEGAL STANDARDS:

In India the various standards for dairy industry are formulated by four agencies.

1. The Indian Standards Institution (ISI)

2. Central committee for food standards (CCFS)

3. Directorate of marketing and inspection (AGMARK)

4. Defense services

These four agencies have three different spears of activities, although all try to

work in closest collaboration. The standards by ISI are to be adopted on voluntary basis.

The CCFS is statutory body which not only lays down standards for food products

including dairy products but also enforces the same. In consultation of CCFS the

Government of India, Ministry of Health frames prevention of food adulteration rules

under the prevention of food adulteration act. The current set of rules is known as

prevention of food adulation rules, 1976 under the PFA act of 1976. Under the

AGAMARK scheme provision exists for grading ghee only amongst the dairy products.

The Defense services have their separate standards for their own requirements

.

Standardized milk is milk who's fat and SNF have been adjusted to acertain

predetermined level. Under PFA rules (1976) the standardized milk for liquid

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consumption should contain a minimum of 4.5 fat and 8.5 SNF throughout the country.

The standardization can be done by partly skimming the fat in the milk with cream

separator or by admixture with fresh reconstituted skim mill in proper proportions.

DAIRYING IN ANDHRA PRADESH:

The program of dairy was initially started with the commendable help of the

United Nations International Children's Emergency Fund (UNICEF), Food and

Agriculture Organization (FAO) and Freedom from Hunger Campaign Organization of

the UK. These organizations assisted a lot of establishment of dairy units at Hyderabad

and Vijayawada in 1967 and 1969, respectively which led to pioneer dairy development

program in Andhra Pradesh. Later a set of cooling and chilling centers have been setup to

feed these gigantic units.

The milk producers have been facing eith a lot of problems in the process of

production and marketing of milk, improper transport facility, poor technology, and

absence of price particularly during flush period etc.. It was at this context the

Government of Andhra Pradesh has viewed to constitute a dairy development

corporation. More than 3.5 lakhs milk producers get 20crore rupees per annum for

supplying of milk of which 69% of total benefices belongs to small and marginal farmers,

agricultural labour and other weaker section of the rural community. With all these

efforts by APDDC and NEED today Andhra Pradesh has an excellent potential for

production with progressive farmers who are more receptable to the new technology and

scientific practices. The estimated milk production is 40lakhs liters per day. Today a

strong wave of white revolution is sweeping creating a new hope of eliminating socio

economic in balances.

26

Andhra Pradesh is poised to be the Dairy land of India playing an important role

on the National milk grid. With the implementation of operation flood II program in

Andhra Pradesh the tempo of dairy development has gained a momentum providing a

thrust to eradicate poverty and unemployment in rural areas brought greater awakening

and confidence among the producers to manage their own affairs through dairy

cooperatives of Andhra Pattern. The Dairy federation is marching ahead with dairy

cooperatives to herald a new era of prosperity.

Financial Assistance:

The National Cooperative Development Corporation (NCDC) has been providing

financial assistance to dairy cooperatives for organizing medium and small sized dairy

processing plants and milk chilling centers. The corporation has sanctioned a total loan

assistance of Rs.633 lakh for establishment of 29 cooperative dairy units comprising 17

chilling centers and 12 cooling centers.

Dairy Industry in Krishna District:

Dairy occupies second place in earning livelihood next to agriculture in Krishna

District, as the cattle wealth in this district is more. The Dairy Development Union after

changing different management systems is now stepping into cooperative sector to help

the small and backward farmers by making them members of the union.

Genesis:

Krishna District with its large area claims notable place in agricultural activities. It

is a long time aptitude for the agricultural farmers to possess dairy cattle along with cattle

for agriculture. This aspect has drawn the attention of the officials of UNICEF, FAO and

Government of India. After analyzing the dairying prospects, they expressed the view

that there could be bright future for dairy scheme in Krishna District. Accordingly a

survey was undertaken to explore the market for surplus milk in 1960-61. This marks the

first step in developing the dairy industry in the state.

27

COMPANY PROFILE

PROFILE OF THE ORGANISATION

Krishna milk union is a district milk producer "co-operative came into existing in

July 1983, registered KRISHNA DISTRICT MILK PRODUCERS CO-OPERATIVE

UNION LIMITED". It took over the management ongoing dairy activities Krishna

district of Andhra Pradesh during February 1985. Krishna milk union currently 515

functional dairy co-operations in villages and introduced from various chilling centers

and district routes.

PROCESSING

28

Milk processing of milks it done by pasturing and chilling the milk at certain

temperatures. The fat % and chilling the milk at certain temperatures, the fat % and SNF

% is standardized accordingly for various types of milk the remaining milk is sent to by

products section to produce various products.

PRODUCTION

In the production section, the milk and milk products are produced. The excess

milk is converted into skim milk powder (SMP) to meet the demand to learn seasons.

SALES

Indents received from various boots and parlours. Depending on the Indents, the

consolidated reports are raised. These reports are sent to various sections. Reconciliation

statements are prepaid according to the indents and the details of stock delivery are

maintained for various parlors, boots and institution. Andhra Pradesh has prominent place

in the dairy of India. Dairy and milk supply has been given importance in the five year

plans of the state. Not only with a view has help had the farmer to improve their income

had it enabled.

HISTORY AND ESTABLISHMENT

Andhra Pradesh has prominent place in dairying India. The cattle wealth of

Andhra Pradesh is established at Rs. 220 crores and 70% of total of milk Products

Factory, VIJAYAWADA was commissioned on 11.4.1994. Milk products Factory,

VIJAYAWADA is having the site of 27.3 acres. At present the cost of UNICEF

equipment and erection is about 19.4 crores (1983-1984).

The Krishna District milk products factory's date of registration is in 6.7.1983.

Authorized share capital Rs.500000, paid up share capital Rs.3,02,000 number of

societies registered 193, number of societies affiliated 165, amount of fixed deposits

Rs.6,61,500 yearly and earnings are 56crores. In 1979-1980, machinery was established

29

in processing sections, chiller capacity 80,000 liters capacity tanks. Now the above

capacity is improved chiller capacity.

Milk products factory, VIJAYAWADA was commissioned on 11.4.1969. this factory has the installing capacity of 1.25lakhs liters per day in the first stage with provision for expansion to 3.501akh liters per day in the second stage. Milk products factory, VIJAYAWADA has the distinction of handling milk to its capacity in the second year operation. A part from handling milk from Krishna District, it also handled surplus milk received from district of VISAKHAPATNAM, East and WEST GODAVARI, PRAKASAM and NELLORE. The factory had pack handling during 1982-1983, with a view of handling the increased surplus milk got from NELLORE, PRAKASAM and EAST and WEST GODAVARI districts, a second spray drying plant with a latest design to produce about 124 MT of milk powder has been established and commissioned during 1982. The factory has a provision to make 8 MT of the demand from public will be converted into products. VIJAYAWADA in the state during 1977 tests were successfully conducted on manufacture of infant milk food, based on the formulae provided by central food technological research institute, MYSORE. Subsequently, infant milk food with the brand name of "VIJAYA SPRAY" was introduced in consumer pack of 1 kg and 1h kg throughout the country. This milk products factory, VIJAYAWADA had the distinction of being first public sector organization in the consumer packs. In addition to the above milk powder, skim and whole milk powder, ice cream milk powder are also being manufactures in the factory.

GROWTH OF THE FACTORY

As an integral part of the above project the milk product factory, VIJAYAWADA

was commissioned on 1l.4.1969. This factory has got an initial handling capacity of

11,25,000 liters in the stage with provision to handle 2,50,000 liters of liquid milk in the

second stage. It has crossed the mark of 1,00,000 liters in the very first year of its

operation getting admiration from the UNICEF officials.

INTEGRATED MILK PROJECTS

A scheme viz., the integrated milk project, Hyderabad and VIJAYAWADA at a

cost of RsA.35crores has been setup to make full utilization of the surplus milk of the

area. Milk products plant at a capacity of 1, 25,000 liters per day in the first phase 2, and

50,000 liters per day at VIJAYAWADA respectively.

30

Milk product factory, VIJAYAWADA area of site 27.3 acres, the value of factory

building Rs. 4,00 lakhs, more given by UNICEF for machinery Rs.53lakhs, cost of

investment on number of worker 1538. At present yearly earnings are Rs. 56crores and

annual turnover Rs. 60crores. In the year 1983-84 the annual turnover is about 19.4

crores and total staff is 2,064.

CHILLING CENTERS

The VIJAYAWADA milk products factory has set up ten chilling centers, which

are given under center, have been producing chilled milk for the composition of the

various segments of the consumers. Chilling centers use very successful to milk products

factory. Fallowing are centers in Krishna District under the control of VIJAYAWADA

milk products factory:

Pamarru

Hanuman Junction

Veeranki lock

Gudlavalluru

Tiruvuru

Gannavaram

Vuyyuru

Kaikaluru

Kankipadu

CAPACITIES TRANSPORT

Milk : 1,50,000 liters per day

Ghee : 5 tonnes per day

Butter : 7 tonnes per day

Milk Powder : 4 tonnes per day

Refrigeration Capacity : 1.5 tonnes per day

31

Steam Generation : 13 tonnes per day

Milk Packing : 1, 25,000 packets per day

Chilling : 1, 50,000 liters per day

Processing : 1, 50,000 liters per day

There are about 25 vehicles in transport organization, milk products factory,

Vijayawada.

Road Tankers

o 4 tanks of 13,000 liters capacity

o 4 tanks of 1,000 liters capacity

3 distribution vehicles for sales

6 inspection vehicles

1 cash van

In addition to these 25 vehicles, some vehicles are taken hire from private transporters for distribution of milk the milk feed to chilling centers and far off places like Visakhapatnam, Nellore, and Chittor is being transported by the road tankers. It is also transported to all metropolitan cities of Delhi, Mumbai, Calcutta and Chennai through the insulated tankers.

SALES CENTERS

Vijayawada: R.T.C bus stand, Super Bazaar, Railway Station, Milk Products factory, Vastralatha,Vijaya Dairy Parlour (near Alankar theatre) Benz circle, Patamata, Sathyanarayanapuram, Machavaram, etc.,

MILK DISTRIBUTION CENTERS

TownNo. of Selling Booths

Daily Sales(in liters)

Vijayawada 400 70,000

32

Machilipatnam 25 3,000

Gudivada 15 2,500

Total 440 75,500

RESEARCH AND DEVELOPMENT

The Indian Council of Agricultural Research has started a research scheme during

the period 1970-70 to undertake research on milk products. Under this scheme soft

cheese, butter, milk powder curd, dooth peda, ice cream mix, butter etc. are,

manufactured.

NEED FOR EXPANSION

With the introduction of the baby food, the milk handling capacity has been

reduced to about 80 to 85 thousand liters of milk in view of the sugar content added in

manufacture of the baby food. Therefore it is proposed to expand the present plant by

adding additional buildings in the existing vacant area adjacent to the transport section.

This will enable the factory to handle 1.5 lakh liters per day.

MANAGEMENT

1. Management of the company shall consist of Board of Directors,

2. Chairman and Managing Director.

3. Nominee of the Government of Andhra Pradesh if the Government of Andhra Pradesh

is a member.

4. Chairman of the Board of Directors shall preside over general meeting. In case of this

absence the meeting shall be conducted by a chairman from amongst the members

present.

5. The general body shall be called once a financial year with in greater ending on 31

December. This shall be "Annual General Meeting".

33

6. A special general body meeting may be called at any time by a majority vote of Board of Directors and shall be called within one month at least 1/5 of the Members of federation or by the registrar of cooperative societies

PROVISION UNDER ACT

1. Subject to such resolution as the general body may from time to time pass. The

execution management of the union shall consist of not more than 17 members as

detailed below.

a. 2 elected representative of affiliated 30 societies & 3 Government nominees.

b. Registrar of cooperative societies or his nominee.

c. Director of Animal Husbandry or his nominee.

d. Managing Director, A.P dairy development corporation or his nominee.

e. One to be adopted by the board from the experts in milk business.

f. Nominee of financing agency.

g. As soon as the election of the members of the board over, they shall meet and

elect a chairman and vice-chairman who will hold office for one year. The

election of chairman and vice-chairman is to be held, in the same manner every

year immediately after the general body meeting in which the remaining

vacancies of directors filled up.

BOARD OF DIRECTORS

The board consists of the following.

Chairman of the affiliated union enrolled as members.

Registrars of the cooperative societies.

One nominee of the financing agency.

Managing director of the federation.

3 nominees of the State Government representing interest of dairy development.

34

Any member nominated to the board may at any time resign from his office by sending a

letter to Government and such resignation shall come into effect from the date on which

it is accepted by the Government .The Government shall nominate the chairman of that

board from time to time. The secretary of the Government dealing with dairy

development shall be the vice-chairman of the board. All the members of the board,

except managing director and chairman of the federation shall be honorary.

Managing Director: The Managing director shall be appointed by the Government from

time to time upon such terms and conditions as the Government thinks fit and the

Government extends such terms as it may due necessary and expedite.

MILK PROCUREMENT IN MPF- VIJAYAWAD'S

Milk procured twice a day from 600 villages in the district among these 600 centers about

195 registered societies under ANAND pattern. A good milk procurement infrastructure

has been developed for the last several years in the district. It is envisaged to open certain

centers to boost up milk production with more and more active participation of the milk

producers under operation flood. II program and substantial improvement in milk

production is envisaged in near future.

MILK SUPPLY:

Milk products factory Vijayawada supplies milk in Vijayawada and to near towns

in l/2 liter and 1 liter sachets. Bulk milk supplies to Hospitals, hostels and other

institutions, besides regular market milk supplies, Milk products Factory, Vijayawada

dispatches milk to Madras, Hyderabad and Calcutta

Product Mix Union

Market Milk:

Vijaya Gold * Vijaya Special * Vijaya Premium

* Vijaya Economy * Vijaya Low Fat

Long Life Products

UHT Milk in lit pack * UHT Milk in 200 ml pack

35

* UNHT Low Fat Milk

Fresh Milk Products

Basundi * Curd * Lassi * Butter Milk *Cooking Butter*

* Sterilized Flavored Milk* MilkCake.* Skim Milk *

Paneer * Doodh Peda * Ghee

ORGANIZATIONAL STRUCTURE:

Organization structure is the basic frame work of which the manager’s decision

making behavior takes important place. It basically deals with relationships. It is an

established pattern of relationships among the components of the organizations. It is the

pattern in which various components are interrelated or interconnected. This prescribes

the relationships among various positions since the positions are held by various people

within the organization. Organizational structure is the totally of both formal and

informal relationships. The organization structure involves the following steps.

1. Identification of activities.

2. Group of activities

3. Delegating of authority.

In the KDMPCUL organizational structure, chairman is the head of Board of

Directors. General Manager will be under the control of Board of Directors. The General

Manager has various lends created under him like Plant Manager, Production Manager,

Accounts Officer, Personnel Officer, Sales Manager, Medical Officer, Quality Control

Officer etc.,

Every Manager delegate's authority to subordinates. It is visible that there is

proper understanding and coordination among all departments of the organization. This

harmonious relationship between the departments leads to facilitate efficient management

and effective communication. Optimum use of organizational resources and stimulating

creativity in the organizational mechanism.

Mission:

36

“Farmer's prosperity through technical innovations and customer orientation with

specific focus on quality and cost”.

Vision:

Dairying in the district to be the major instrument of strengthening rural economy

and making available safe milk and milk products.

CHAIRMAN

MANAGINGDIRECTOR

FINANCE DEPT MARKETING DEPT PRODUCTION DEPT PERSONNEL DEPT

SR ACCOUNTS DEPUTY DIRECTOR PRODUCTION PERSONNEL DEPT OFFICER OF SALES AND MANAGER

MARKETING

JR ACCOUNTS SALES MANAGER PALNT MANAGER WELFARE OFFICER OFFICER

ACCOUNT ASST.SALES MATERIAL SUPERVISOR OFFICER MANAGER MANAGEMENT

LOWER DIVISON ZONAL QUALITY SENIOR ACCOUNTS INSPECTOR MANAGER ASSISTANTS

TYPISTS SALES DAIRY JUNIOR ASSISTANT MANAGER ASSISTANTS

SALES ASST.DAIRY TYPISTS EXECUTIVE MANAGER

37

CLERICAL PRODESSING STAFF SUPERVISOR

CLERICAL STAFF

Quality Policy:

Aiming to be a technologically advanced dairy with global outlook providing

products and services of highest quality heightening the customers.

Farmer Members

Year No.of Members

2005 - 2006 119000

2006 - 2007 125000

2007 - 2008 128286

2008 - 2009 131272

2009-2010 137687

Procurement Price increase

Years Milk Price Kg.Fat Rs.

2005 - 2006 195.00

2006 - 2007 200.00

2007 - 2008 215.00

2008 - 2009 255.00

2009 - 2010 275.00

MILK PRODUCTS FACTORY FUNCTIONAL CHART

Raw Milk Reception Dock:

Receives Raw Milk / Chilled Milk from different sources

Tests initial keeping quality accepts for further process and weighs milk received.

Collects samples for FAT &SNF analysis by QCL for determination of value payable.

Pumps to processing section for further treatment of milk.

38

PROCESSING:

Pasteurization

Cream separation & Homogenization

Standardization Toning of milk as per different standards for marketing

Reconstruction and recombining of Milk Stores Milk for other operations / utilities.

CHAPTER- III

DATA ANALYSIS

AND

INTERPRETATION

39

1) Will you purchase branded milk or loose milk?

a) Branded milk b) loose milk

Factors Respondents Percentage

Branded milk 82 82%

loose milk 18 18%

Total 100 100%

Out of 100 Respondents

40

From the above figure 82% of people are consuming Branded milk and 18% are consuming loose milk.

2) Which company milk are you using daily?

a) Vijaya b) Model c) Jersey d) Agrigold e) Tirumala

Factors Respondents PercentageVijaya dairy milk 70 70%Model dairy milk 20 20%Jersey dairy milk 4 4%Agrigold dairy milk 3 3%Tirumala dairy milk 3 3%

Out of 100 respondents

41

From the above table depicts that 70% of the respondents are using vijaya dairy milk products, 20% of people are using model dairy milk products, 4% of people are using jersey dairy milk products, 3 % of people are using Agrigold dairy milk products, and 3% of people are using Triumala dairy milk products.

3) How much quantity will you consume daily to meet your home needs?

a) 2liter b) 1literc) 1/2 liter d) 1/4liter e) more than 2 liters

Factors Respondents Percentage2 liter 7 7%1 liter 40 40%1/2 liter 43 43%1/4 liter 4 4%more than 2 liter 6 6%


42

From the above figure 7% of people are consuming 2 liter, 40% of people are consuming 1 liter, 43% of people are consuming 1/2 liter, 4% of people are consuming 1/4 liter and 6% of people are consuming more than 2 liter.

4) Which company comes into your mind when you think of milk products?


Factors Respondents PercentageVijaya dairy milk 70 70%Model dairy milk 15 15%Jersey dairy milk 5 5%Agrigold dairy milk 5 5%Tirumala dairy milk 5 5%


43

From the above figure it is cleared that vijaya dairy milk products has been so prominent such that 70% of people could think about it as the first go. Whereas another companies secured 15%, 5%, 5% and 5%.

5) How familiar are you with vijaya dairy milk products?

a) Daily b) occasionally


Daily 79 79%

Occasionally 21 21%


From the above diagram 79% of the respondents are purchasing Vijaya dairy milk products, 21% of the respondents are purchasing it on occasional basis

44

6) Which of the following products do you associated with vijaya dairy milk products?

a) Milk b) Gheec) Buttermilk d) lassie e) Sweets

Factors Respondents PercentageMilk 80 80%Ghee 7 7%Butter milk 5 5%Sweets 2 2%Lassie 6 6%


45

The above table depicts that 80% of the respondents associate Vijaya dairy milk, 7% of the people relate with ghee, 5%of the respondents associate with buttermilk, 2% of the people relate with sweets, 6% of the respondents associate with lassie.

7) From how many years you are using vijaya dairy milk products?

a) 3years b) 2years c) 1years d) less than year

Factors Respondents Percentage3 year 48 48%2 year 35 35%1 year 10 10%less than year 7 7%


From the above table depicts that 48% of the respondents are using Vijaya dairy milk products from 3 years, 35% of the respondents are using Vijaya dairy milk products

46

from 2 years, 10% of the respondents are using Vijaya dairy milk products from 1 years, and 7% of the respondents are using Vijaya dairy milk products from less than a years.

8) Which aspect do you like in vijaya dairy milk products?

a) Quality b) Taste c) Price


Quality 48 48%

Taste 45 45%

Price 7 7%


47

The above table depicts that 48% of the respondents like quality of vijaya dairy milk products, 45% of the respondents like taste of vijaya dairy milk products, and 7% of the respondents like price of the vijaya dairy milk products.

9) Is vijaya dairy milk products price is reasonable or not?

a) Yes b) No


Yes 82 82%

No 18 18%


48

From the above diagram 82% of the respondents are feeling that the vijaya dairy milk products are reasonability price and 18% of the respondents are feeling that it is not reasonability price.

10) Is vijaya dairy milk products taste is good or not?

a) Yes b) No


Yes 95 95%

No 5 5%


49

From the above diagram 95% of the respondents are feeling that the vijaya dairy milk products are satisfied with taste and 5% of the respondents are feeling that it is not satisfied with taste.

11) Is vijaya dairy milk products quality is good or bad?

a) Goodb) Average c) Bad

Factor Respondents PercentageGood 87 87%

Average 10 10%

Bad 3 3%


50

From the above diagram 87% of the respondents are feeling that the vijaya dairy milk products are very much satisfied with quality and 10% of the respondents are feeling that average satisfaction with quality and 3% of the respondents feels that it is not good in quality.

12) Is vijaya dairy milk products brand is popular or not?

a) Yes b) No

Factors Respondents PercentageYes 82 82%No 18 18%


51

From the above diagram 82% of the respondents are feels that the vijaya dairy milk products are popular brand in milk and 18% of the respondents are feels that it is not a popular brand.

13) Did vijaya dairy milk products reached your expectation?

a) Yes b) No


52


From the above diagram 84% of the respondents are feels that the vijaya dairy milk products have reached their expectations and 16% of the respondents did not get what they expected.

14) Are you satisfied with vijaya dairy milk products?

a) Yes b) No



53

From the above diagram 90% of the respondents are fully satisfied with the vijaya dairy milk products where as 10% of the respondents are not satisfied with the vijaya dairy milk products.

15) How will you purchase vijaya dairy milk products?

a) Dairy outlet b) Street vendor


Dairy outlet 47 47%

Street vendor 53 53%


54

From the above diagram 53% of the respondents purchase directly from vijaya dairy outlet where as 47% of the respondents purchase from the retailer (street vendor).

16) Will you recommend vijaya dairy milk products?

a) Yes b) No


Yes 86 86%

No 14 14%


55

From the above diagram 86% of the respondents suggest vijaya dairy products to others where as 14% of the respondents won’t suggest to others.

17) Are you satisfied with the delivery system of vijaya dairy milk products?

a) Yes b) No

Factors Respondents PercentageYes 74 74%

No 26 26%


56

From the above diagram 74% of the respondents are fully satisfied with the delivery system of vijaya dairy milk products where as 26% of the respondents are not satisfied with the delivery system of vijaya dairy milk products.

18) What is your opinion about vijaya dairy milk products quality when you compare with other brand?

a) Excellent b) Goodc) Average d) Bad

F actors Respondents PercentageExcellent 45 45%Good 40 40%Average 10 10%Bad 5 5%

57


From the above figure it is cleared that vijaya dairy milk products has been so prominent such that 45% of people could think as excellent product, 40% of the respondents feels as good product, 10% of the respondents feels as average product and 5% of the respondents feels as not a stability product.

19) Will you stick to vijaya dairy milk products?

a) Yes b) No

Factors Respondents PercentageYes 74 74%

No 26 26%

58


From the above figure it is cleared that vijaya dairy milk products has been so prominent such that 74% of people is sticked to vijaya dairy milk products.

20) If No, which product you consider as close substitute?

a) Model b) Heritage c) Agrigold d) Triumala

Factor Respondents PercentageModel 12 12Heritage 6 6Agrigold 5 5Triumala 5 5

Out of 26 respondents

59

From the above figure it is cleared that vijaya dairy milk products has been so prominent such that 74% of people is sticked to vijaya dairy milk products. So only 26% percentage are not sticked to vijaya dairy such as 12% for model, 6% for heritage,5% for agri gold, 5%for Triumala.

CHAPTER- V

FINDINGS

AND

SUGGESIONS

60

FINDINGS

My sample size is 100 respondents

1. It is cleared that vijaya dairy milk products has been so prominent such that 70% of people could think about it as the first go.

2. It is cleared that vijaya dairy milk products has been so prominent such that 74% of people is sticked to vijaya dairy milk products.

3. 82% of people are consuming Branded milk and 18% are consuming loose milk.4. 84% of the respondents are using vijaya dairy milk products and 16% are using

other branded milk.5. 83% of the respondents are using Vijaya dairy milk products from more than 2

years.6. Most of the respondents like quality of vijaya dairy milk products.7. 74% of the respondents are fully satisfied with the delivery system of vijaya dairy

milk products.

61

SUGGESTIONS

Vijaya Dairy has a prominent place in the minds of customers in terms of quality, price and taste. But it was popular only in Vijayawada and few other villages around. The next place goes to Model Dairy after Vijaya dairy. When Model Dairy products can give tough competition to many companies in many areas they why not Vijaya Dairy. They should re design their marketing strategy and in a more aggressive way to give tough competition to other companies outside Vijayawada.

Major portion of the customers are getting products from street vendors rather than Dairy outlet. In such a case Vijaya dairy can setup more outlets and get in reach of customers. In doing so, Vijaya dairy will become more popular in the minds of customers and it can increase the sales of its milk products as well. Street vendors are important for us but there are 2 negative aspects in that.

1. Street vendors deal in different companies. Thus they are promoting the substitutes as well and same as Vijaya dairy milk.

2. Street vendors deal with only milk. So the milk products of Vijaya dairy are not reaching major portion of its customers.

3. From the analysis we came to know those maximum people are consuming only ½ liter pack.

By setting up its own outlets, Vijaya Dairy can overcome these two hurdles or drawbacks and can perform well in coming years can be successful for long in coming future.

62

BIBLIOGRAPHY

63

Books:

Philip Kotler” Principles of Marketing”, 11/e, Pearson publishers, 2007.

Gilbert A Churchill, Dawn lacobucci, “Marketing Research”, 9/e , Cengage

Learning.

Websites: www.google.co.in www.wikipedia.com www.vijayadairy.com. www.marketresearch.com www.dairy.com

64

ANNEXURE

65

QUESTIONNAIRE ON MEASURING BRAND AWARENESS OF VIJAYA DAIRY PRODUCTS.

Customer Name:

Customer Contact No:

Address:

1) Will you purchase branded milk or loose milk?

a) Branded milk b) loose milk

2) Which company milk are you using daily?


3) How much quantity will you consume daily to meet your home needs?

a) 2litre b) 1litre c) 1/2 litre d) _________

4) Which company comes into your mind when you think of milk products?


5) How familiar are you with vijaya dairy milk products?

a) Daily b) occasionally

6) Which of the following products do you associated with vijaya dairy milk products?

a) Milk b) Ghee c) Buttermilk d) lassie e) Sweets

66

7) From how many years you are using vijaya dairy milk products?

a) 3years b) 2years c) 1years d) less than year

8) Which aspect do you like in vijaya dairy milk products?

a) Quality b) Taste c) Price

9) Is vijaya dairy milk products price is reasonable or not?

a) Yes b) No

10) Is vijaya dairy milk products taste is good or not?

a) Yes b) No

11) Is vijaya dairy milk products quality is good or bad?

a) Good b) Average c) Bad

12) Is vijaya dairy milk products brand is popular or not?

a) Yes b) No

13) Did vijaya dairy milk products reached your expectation?

a) Yes b) No

14) Are you satisfied with vijaya dairy milk products?

a) Yes b) No

15) How will you purchase vijaya dairy milk products?

a) Dairy outlet b) Street vendor

16) Will you recommend vijaya dairy milk products?

a) Yes b) No

17) Are you satisfied with the delivery system of vijaya dairy milk products?

a) Yes b) No

67

18) What is your opinion about vijaya dairy milk products quality when you compare with other brand?

a) Excellent b) Good c) Average d) Bad

19) Will you stick to vijaya dairy milk products?

a) Yes b) No

20) If No, with product you consider as close substitute?

a) Model b) Heritage c) Agrigold d) Triumala

21) Suggestions

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final project in 2003

Documents