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SUMMER TRAINING REPORT
ON
“Study of consumer Perception about
Verka products”
Submitted in partial fulfillment of the requirements for the degree of Master of business administration (2008-2010) affiliated to Punjab Technical University, Jalandhar
Project Guide SUBMITTED BY
Ms. Mandeep Mahendru Gundeep Singh
Faculty of Management BBA-5th Sem.
GJ-IMT, Mohali Roll No.:-8100132012
GIAN JYOTI INSTITUTE OF MANAGEMENT AND TECHNOLOGY
MOHALI
1
ACKNOWLEDGEMENT
I would like to thank General Manager Verka Milk Plant, Mohali, for
providing me this wonderful opportunity to work with ‘Roper Distt. Milk
Producers Union Cooperative Ltd.’
I am extremely thankful to In-charge (Marketing MR………………. and
entire marketing division for their invaluable support and inputs in this
project.
I extend my sincere gratitude to various respondents and citizens of Mohali
who spared their valuable time and contributed to consumer survey.
GUNDEEP SINGH
2
DECLARATION
I undersigned here by declare that the summer training project report
submitted to my college Gian Jyoti Institute of management and
technology. In partial fulfillment for the degree of master of business
administration on “study of consumer Perception about Verka
products” is a result of my own work under continous guidance and
kind co-operation of our college faculty member Ms. Mandeep
mahendru. I have not submitted this training report to any other
university for the award of degree.
GUNDEEP SINGH
3
CERTIFICATE OF COMPLETION
This is Certify that Mr. GUNDEEP SINGH BBA (IVth Semester) has
successfully completed her project titled “Study of consumer behaviour
about verka products” under the guidance of Ms. Mandeep Mahendru.
This is in the partial fulfillment of her MBA curriculum (2008-2010)
Dated:
Ms. Mandeep Mahendru
(Project guide)
4
PREFACE
For management careers, it is very important to develop managerial skills .In
order to achieve positive and concrete results, along with theoretical
concepts, the exposure of real life situation existing in a corporate world is
very much needed. To fulfill this need, this type of practical training is
required.
I underwent summer training in VERKA MILK PLANT, located in Mohali.
It was my fortune to get training in a very healthy company. I got great
opportunity to view the overall working of the organization. In the
forthcoming pages, I have attempted to present a report covering different
aspects of my training.
5
EXECUTIVE SUMMARY
Customers today are more informed and more demanding than ever. They
know quality service when they get it and they aren’t afraid of taking their
business elsewhere if they don’t get it. Most manufacturers have taken this
fact to heart because a refusal to acknowledge this reality can spell - failure -
rejection by the one who holds the purse strings and the key to profits.
Satisfaction of customer needs, in fact, provides a rationale for the
firm’s existence. Therefore consumer behavior lies at the heart of modern
marketing and its knowledge is vital for a firm’s existence, growth and
success. An understanding of the motives underlying the consumer behavior
helps a firm to seek better and more effective ways to satisfy consumers.
Consumer behavior, however, is a complex system where there is an
interaction of various social, economic and psychological factors. All these
factors affect the purchase decision of the buyer and his perception about
different products. Buying decision process incorporates all the activities
that individuals go through in their role as consumers. It starts right from the
time when there is a state of deprivation (need arousal) and goes through a
point when a means of need satisfaction has been obtained. It ends at a
6
juncture when the product has been used for a sufficiently long period of
time to judge the level of satisfaction (post - purchase evaluation).
Satisfaction is the key to generate repeat business. It ensures customerloyalty
and determines whether a customer would come to the company again.
TABLE OF CONTENTS
Chapter No. Contents Page No.
1.Introduction
1.1 Industry profile (Milkfed)
1.2 Objectives
1.3 Company Profile (Verka)
8-37
8-14
15-37
2. Review of literature 38-41
3. Research Methodology 42-48
4. Data analysis & Interpretations 49-61
5. Conclusion 62-63
6. SWOT Analysis 64-66
7
7. Suggestions and recommendations 67-71
8. Bibliography 72-73
9. Annexure 74-78
CHAPTER NO. 1
8
INTRODUCTION
1.1 MILKFED-PUNJAB
(Introduction)
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 Punjab Dairy Development
Corporation Limited were handed over to Cooperative sector and the entire
9
State was covered under Operation Flood to give the 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
organization is a three tier system, Milk Producers Cooperative 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.
1.2 Objectives of MILKFED
1. To provide remunerative prices to milk producers by value addition and
marketing of produce.
2. To provide technical inputs for enhancement of milk production on the
other hand.
3. To carry out activities for promoting production, procurement processing
and marketing of milk and milk products for economic development of the
farming community;
4. To purchase and/or erect buildings, plants, machinery and other ancillary
equipment to carry out business;
5. To study problems of mutual interest related to production, procurement
and marketing of dairy and allied products;
6. To establish research and quality control laboratories;
7. To make necessary arrangements for transfer of milk allied milk products
and commodities;
10
8. To market its products under its own trade name/brand name with its
Member Union’s trade mark/brand;
9. To promote the organization of primary societies and assist members in
organization of the Primary Societies; and
ACHIEVEMENTS
On the basis of quality with efficient administration, MILKFED has not only
established new mile stone of providing services to Dairy farmers but scaled
new heights in delighting esteemed customers also.
1. MILKFED is providing technical input services like animal healthcare,
supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy
farmers under its Productivity Enhancement Programme.
2. For producing quality technical services MILKFED has established its
own two cattle feed plants having capacity of three hundred metric ton per
day.
3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of
MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP)
Certification.
4. In view of today's interest of consumers in getting quality and safe
products, MILKFED is manufacturing quality milk and milk products as per
11
International Standards and also exploring the possibility of manufacturing
milk products of consumer's choice.
5. MILKFED has launched its own interactive Website on Internet for its
prospective customers which can be accessed by clicking
http//www.milkfed.nic.in
6. MILKFED introduced liquid milk in new design packing with Mnemonic
Symbol of Co-operative Milk in all the District Milk Unions.
Critical analysis of Milk fed
Corporate Focus
MILKFED is serving the cause of Milk producers of the state in
collaboration with National Dairy Development Board by increasing the
number of functional MPCSs from 4642 in 1990-91 to 6248 in 2000-01 and
their membership rose by 90000 from 2.63lac in 1991 to 3.53lac during the
same period. This has resulted in increase of milk procurement from 1438lac
in 1991 to 3371lac liter in 2000-01. However, rehabilitation plan of sick
Milk unions has yet to reach the implementation stage.
12
Strength/Care Competency/Opportunities:
MILKFED earned a net profit of Rs.3.19crore in 2000-01. Its core
competency in marketing of Milk &Milk products by creating a marketing
infrastructure is serving a social purpose by providing income to land-less
laborers small and marginal farmers scheduled caste families and households
headed by women having just one or two cattle only as nearly 90% of the
member of Milk producer’s Cooperative Societies belong to these categories
(Annexure 20) “Operation Flood” programmed of dairy development is
implemented by it in the state.
MILK VISION 2004 to stabilize the gap between Milk procured during peak
seasons and lean season has been drawn by MILKFED to optimally utilize
Milk plants for reducing their losses. Moreover, Model diary farms in
collaboration with Technology information and Assessment Council
(TIFAC) are being developed by it at a capital outlay of Rs.2.00crore.
Restructuring/revival
Export Ropar and Ludhiana Milk unions the remaining 9 unions are
incurring losses. Their combined accumulated looses are Rs.76.33crore as
on 31-03-2001. This way, cooperative Milk union’s structure of MILKFED
is losing its commercial viability over the last two years by restricting itself
to the sale of Milk and Milk products only and not exploiting its well
13
developed procurement sale and supply distribution channels to market fresh
vegetables and fruits along with processing and procurement of oil seeds. To
make these plants viable and socially sustainable the introduction of latest
technology in Milk; plants and full exploitation of its marketing strength in
procurement and marketing network is the need of the hour. MILKFED is a
vital mechanism for more them one reason in the Punjab context. First and
foremost it is engaged in raising the viability of Agriculture of the
small/marginal farmers. Landless labors, families with no male earners and
the scheduled castes. It is therefore of utmost importance that the
Government of Punjab make its due contribution for the purpose of
leveraging finances or the National Dairy Development Board and other
cooperative institutions. Infect, If necessary Government should get District
Milk Union Cooperative so that hitherto slow extension is intensified and
the
maximum potential for cost reduction is achieved. The other important
reason for Government to support this activity even by subsides to induce a
shift out of the paddy- wheat rotation by encouraging the cultivation of
better seeds vegetable, Fruits and eventually oil seeds and meat products.
14
1.3 INTRODUCTION &
GENERAL FEATURES OF MILK PLANT MOHALI
NAME: Verka Milk Plant.
ADDRESS: Verka Milk Plant
PHASE 6, Mohali
15
RAW MATERIAL: Milk.
PRODUCTS: Ghee, Pasteurized milk,
Milk powder, Curd, Cheese,
Milk Cake, Sweet flavored milk.
WORKING HOURS: 24 hours (3 shifts).
TOTAL WORKERS: 163.
Capacity 1 Lakh Ltrs per day.
PROFILE OF THE UNIT
The elegant building situated on Patiala road just before we enter Sangrur is
that of Milk Plant owned by The Sangrur District Co-operative Milk
Producers Union Ltd. Its foundation stone was laid by India’s Home
Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979.
Its name was registered as “The Sangrur Distt. Co-operative Milk
Producers Union Ltd. Sangrur”. It has been registered under Punjab Co-
operative Societies Act 1961 on 24 March 1973. This union started its milk
procurement from March 1974.
16
The union is working under the laws of act. In the beginning 13 societies
became its members. But this union started as milk procurement from 1974.
Initially its office was situated on the upper side of co-operative bank of
Barnala. At that time Milk Plant Sangrur was not existing. Initially the
societies of Barnala circle were started, after this it was expanded and
centers were approved at Dhuri and Malerkotla. At that time this union
collects milk from other societies and to Horlicks. Before it, except Horlicks
there was no major buyer of milk and Horlicks was a private concern giving
low rates.
After that the union was strengthened and milk producers got benefited by
this union as they were getting reasonable rates for their from. A project
report of Milk Plant Sangrur was made at that time with shares from
different societies were to be collected and it includes Rs 100 share money
and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner
and the share of government was fixed at Rs 40 lack.For the smooth running
of the plant, the union had taken loan of worth Rs 62 lack from Co-operative
Development Corporation. By this loan a milk plant was established. It
started milk of 45000 liters per day in December 1979 further it was
expanded with the help of National Diary Development Board at ANAND
under the “Operation Flood” programmed. After few years a drier was
installed with a capacity of 10 tones. For the purchase of this machinery
70% of loan was taken from NDDB and 30% loan from government in the
form of subsidy. The total investment in the plant was 6.5 crores.
17
LOCATION AND LAYOUT
In the milk plant there are hard receiving departments: Production and
Engineering. The location of the stores department is carefully planned out
and it is housed in a position which is very near to production department so
that transportation charges are minimum. It is also easily accessible to all
other departments like engineering, boiling, refrigeration, powder plant and
workshop.
The layouts of plants store is properly planned. There are shelves,
racks, admirals and handling devices for keeping the material and
equipments properly. The store is divided into racks which are further sub-
divided into small spaces allocated. Special attention is paid to storage of
material which is liable to leakage or evaporation and deterioration.
SELECTION OF ROUTES:
Routes are selected for the delivery of milk through these societies. Shortest
milk routes are preferable so that milk reach to plant in same condition,
otherwise milk can become sour or curd. The societies which are far away
from milk plant, the four milk chilling centers are established for them.
Societies send milk directly to milk plant or through chilling centers. These
chilling centers chill milk at 4 degree Celsius which keeps the milk in good
18
condition for 24 hours. After chilling the milk these centers send milk to the
milk plant.
REGISTERATION OF THE SOCIETY AND THE
MEMBERS:
When a society is fully formed for the collection of milk it is registered
under the registration act of societies. Its members are also registered and
given members pass books and share certificates. A copy of rules and
regulations are also given to them. Then the actual milk collection starts.
MILK PROCUREMENT IN DIFFERENT SEASONS
Milk Plant Sangrur procures milk in three seasons. First comes the lean
season i.e. the months of May. June, July and August. In this season milk is
available in very low quantity i.e. 25000 liters per day. The second season is
mid-season i.e. the months of March, April, September and October. In this
season the procurement of milk is about 50000 liters per day. The most
awaiting season is flush season i.e. the months of November, December,
January and February. In this season the procurement of milk is maximum
i.e. 65000 liters.
MILK PROCUREMENT IN LAST 7 YEARS:
19
Year saver age milk procurement per day (in liters) total milk handling.
2001- 85000 liters per/day
2002- 80000 liters per/day
2003- 70000 liters per/day
2004- 75000 liters per/day
2005- 70000 liters per/day
2006-65000 liters per/day
2007- 60000 liters per/day
2008- 62000 liters per day
MAIN CENTRES AND THEIR BRANCHES:
About 300 milk producing societies come under Milk Plant Sangrur which is
operating in the whole Sangrur district. All these are divided into six main
centers which are as under:
LOCAL SANGRUR 140
MALERKOTLA 50
SEHNA 30
20
MEHAL KALAN 30
CHANGALIWALA 30
SANDHORE 20
(A) MILK PROCUREMENT PER DAY
NAME OF THE SOCIETYMILK PER DAY (in liters) Local Sangrur
40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000
(B) PRODUCTION
Production is the foundation on which every organization is built.
Production is an internal act of producing something in an organized
manner. It is the fabrication of a physical object through the use of men,
material and equipment. Thus the basis of production is the transformation
of inputs into goods and services. In milk plant Sangrur two different plants
are established for the production of Ghee and SMP. These are called:
1. Powder Plant.
2. Production plant.
In powder plant Skimmed Milk Powder is prepared from spreta milk which
comes from production department. In production plant Ghee is prepared
21
from cream after its separation from milk. Here pasteurized milk is also
prepared. Sometimes milk cake is also prepared according to its
requirement. In addition to it there are arrangements for filling sweet milk
bottles. Powder and Ghee are made only in flush season when milk is
available in large quantity. In lean season production fails because of non-
availability of milk. In months of May, June, August is done; sometimes
glucose is made here on contract basis.
(C) QUALITY CONTROL
Quality control includes techniques and systems for the achievement of the
required quality of the raw material as well as final products. Most often
milk vendors adulterate the milk in such a way that normally consumers are
to be fooled. Consumers remain obvious to the various ways and means
adopted by milk vendors to adulterate milk. Here are some eye openers:
1. Urea, caustic soda and salt are added to thicken the milk.
2. Milk powder is also used for thickening and usually the powder used
is sub-standard.
3. Synthetic milk is added to pure milk to increase the quantity.
4. Sometimes pure milk is separated, the cream is removed and the
skimmed milk powder is added to it.
22
(D) ACCOUNTING :
Accounting is the art of recording, classifying and summarizing in a
significant manner, and in terms of money transactions and events which are
in part at least of financial character and interpreting the results thereof. In
milk plant Sangrur this section performs the functions of maintaining the
accounts of stores material and milk products by union and to make
payments at right time. Like this to maintain the accounts of milk and milk
products sold by the union and to receive the payment for goods sold to
consumers, concerned sections and branches. The bills are prepared by
accounts branch according to 10 days milk purchase from producers and
societies. It is the duty of this section to maintain the accounts according to
rules and regulations mentioned by Registrar Co-operative Department and
to follow the restrictions and suggestions imposed by auditor.
(E) MARKETING
Milkfed Punjab is serving nationwide consumers through its network of
regional offices and strong distribution channels. Milkfed markers a wide
variety of products liquid milk, skimmed milk powder and many more.
ACHIEVEMENTSMilk Procurement: - Milk Plant procured about
23
55,000 Lt. of milk per day through 19 Milk routes in the Flush Season.
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 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 seed
processing 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 house keeping
standards and above all to enhance the profitability and financial viability of
24
the Milk Plants to enable milk producers to get better price for their
produce.MAIN PRODUCTS MANUFACTURED BY MILK
PLANT The main products which are manufactured by the milk plant
Sangrur are as under:1. Ghee.2. Pasteurized Milk.3. Milk
Powder.4. Sweetened Flavoured Milk (PIO).5. Milk Cake.6.
Cheese.7. Curd. MARKETING
DEPARTMENT According to Prof. Phillip Kotler”Marketing is the
human activity directed as satisfying need and wants through the exchange
process”.Marketing is the process through which producers and consumers
of various goods are brought together in an exchange relationship and the
transfer of ownership takes place. Marketing process starts even before the
goods go into production. It does not end with sale but continues till the
satisfaction of consumer is obtained.To carry out selling functions, it is
important to have a qualified and expressed sales force with leader who can
plan, organize, direct and control the selling job objectivity. The salesman is
an extremely important link in the claim of distribution. It is sometimes said
that salesmanship is the other name of persuasion.MARKETING
STRATEGIES Section of Milk Booths/Agencies Security Money
Refundable Agency Rs. 5000 Full time booths Rs. 10000 Part time booths
Rs. 3000 Institutions 45 days advance paymentMARKETING
MEASURES FOR DOMESTIC MARKET: For domestic
market following measures are taken up by marketing personnel:A.
Dealers” meeting is called once in every six months.B. The plant
has own distribution network for the sale of products.C. Milk products are
marketed to bring up country markets through out India on consignment
basis.FOR INTERNATIONAL MARKET:For Export following
25
measures are taken into consideration:A. Requirement is given by
customers in the letter of credit.B. Quality should be
mentioned.DOMESTIC MARKETING ACTIVITIES The
domestic marketing activities are performed on the basis of Demand and
Supply. Demand for milk and milk products are received in two
ways:Through Telephone-Any demand or change in demand is received
between 9:30 am and 2:00 pm.Through Supply-Milk booths collect
demand according to milk supplied to the agencies. About 70% of milk is
distributed in the morning and remaining 30% is distributed in the
evening.PAYMENT AND BALANCE SYSTEM Since agency is
required to deposit one day advance payment separately for morning and
evening, if any cash balance remains with the union that is admitted in the
meant supply payment.For institutions 45 days of advance payment against
their demand is collected union. RETURN OF MILK If milk is
found leaked. It is taken back from dealers only at the time of delivery. One
entire tray is provided for replacement of leakage of every truck or other
vehicle through which milk is supplied to the dealers. Marketing is a
comprehensive term and it includes all resources and a set of activities
necessary to direct and facilitate the flow of goods and services from
producers to consumers in the process of distribution. Marketing is the
process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to exchange that satisfy individual
and organizational objectives.ROLE OF MARKETING IN VERKA
MILK PLANT Head Office collects this information from all the plants
and scrutinizes the information that which plant has large stock of products
and who is lacking in it. Then it gives orders to plant which has large stock
26
to supply products to other plants so that stock can be absorbed quickly. The
prices of all the products are determined by the H.O. and their retail price
through out India is same H.O. charges 3% commission on sales made by
milk plant, Sangrur.For the local sale of milk and milk products, a milk bar
is opened outside the main gate of milk plant, Mohali and its average sales
are Rs 5 lakh per day. Some milk products like liquid milk, Cheese, Milk
cake, S.F.M., Ice-cream etc. are sold through local dealers in the
district.ADVERTISEMENT AND SALES PROMOTION The
advertisement and sales promotion of every product is necessary. Without
this, nobody comes to know about the product. Every organization whether
it is small, medium or big has to do some type of advertisement. Verka milk
plant has also adopted some policies for the sale of its products. It has its
own Vans, Trucks, and Jeeps etc. for selling its products. There are also
some benefits which are being provided to the dealers. There is a facility of
free training of testing milk to the societies so as to make more customers.
With the adoption of such policies sales have increased in Dhuri,Sunam, and
Barnala as well as in Sangrur. For doing advertisement the shops of retailers
have been painted showing various Verka products and various types of
banners are also given to them which are to be displayed. Advertisement of
Verka products is also shown on Local Cable Networks of
Chandigarh,Mohali,ropar and many more cities. Pamphlets are also being
distributed door to door.SALESMANSHIP GUIDE Certain guidelines
and motto are being told to the salesmen for meeting the customers’ desires
and wants. Various guidelines are as follows:1. It is said "sell yourself
before you sell the product". The above saying is measuring to create one’s
own confidence in the minds of customers so as to ensure sales.2. Your
27
sincerity and capability in convincing is your performance for success.3.
Over convincing never pays single facts convince better.4.
Always remember that customer is more intelligent than you.5. Don’t
indulge in giving guarantees if wear and tear.6. You should be pre-
determined in your mind of items, size to be sold to the customers after
stock.7. Your expertise is your success.8. Don’t display all of your
varieties because customers generally have the habit of asking “more”.
DISTRIBUTION CHANNEL
MILKFED COMPANY
WHOLESALER RETAILER
CUSTOMER PRODUCT OF VERKA Milkfed has formulated
company specifications for its milk & milk products to provide standard and
quality of products to consumers.
Milk Cheese SFM(Pio)
Ghee Icecream & Sweets Milk Powder
Curd, Kheer... Butter Rasella
28
Now Verka has arrived on the sheer strength of its quality, freshness and
purity and of course its home made taste and its products being of most
affordable prices. To people today, Verka is part of their daily life. 1.
Liquid Milk Pasteurized Pouch Packed 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 Chandigarh,Mohali,kharar and ropar areas. Special distribution
control is needed, under refrigerated condition if transported to very long
distance. Verka Milk Plant is preparing three types of milk pouch :-
Standardized Milk Toned Milk Double Toned Milk2.
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. 3. 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 pack in tin. It is sold anywhere in
29
Punjab and abroad also. No special distribution control is needed. 4.
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 combination thereof, with or without the addition of common salt
and colouring matter. It can be kept under refrigeration for three months.
This comes in packs of 10 gms. 100 gms. And 500 gms. 5. Lassi:-
Lassi, also called chhas refers to desi butter milk which is by product
obtained when churning curd led whole milk with curd indigenous 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. tetra pack. 6. SFM:-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. tetra packs. 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. 7. Ice Cream:- Ice
30
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
andCrushed nuts. Choco bar contained chocolate and Mango bar kulfi
contain mango flavour.8. Paneer:- Paneer refers to the small sized
soft cheese. The product can be consumed as such or can be fried and
consumed. It can also be used as an ingredient for making Indian Sweets and
paneer based dishes. It is preserved under refrigerated condition for 20 days
from the date of packing. The product is packed in poly film bags. The pack
size is 200 gms. For consumer pack and 5 Kg. Capacity in bulk pack as
agreed by contracted buyer. 9. Curd/Dahi:-
Dahi or curd is the product obtained from boiled milk by souring, natural or
otherwise, by a harmless lactic acid or other bacterial culture. It should have
the same percentage of fat and solids - not - fat as the milk for which it is
prepared. 10. Raseela:- Raseela is a very popular
31
product of Verka which was launched in 1995. It comes in two flavours - i)
Mango Raseela and ii) Pine apple Raseela. Mango Raseela is prepared from
mango pulp and Pineapple Raseela from pineapple pulp. These are coming
in 200 ml. tetra pack. CHAPTER
NO. 2 REVIEW
OFLITERATUREDr. Arvind Kumar
Yadav and Mr. Suman Yadav (2008) Journal of IPM Meerut The
research on the on the topic “CONSUMER SATISFACTION IN SBI” the
objective of the study is to made analyse with regard to the assessment of
services provided by SBI to the customers. The research methodology used
by researcher includes collection of primary and secondary data. Primary
data has been collected from the existing customers of SBI. Data collected
has been analyzed by researcher through tables, graphs and pie charts. By
the researcher found that the expectations of customers of SBI are met to a
limited extent.Dr. N. Kathirvel and Dr. N Chandersekaran (2008) Indian
journal of marketing The researcher research on the topic “CONSUMER
BEHAVIOUR AND BRAND PERFORMANCE TOWARDS THE ONIDA
T.V” the objective of the research was to study consumer satisfaction and
brand loyalty of the respondents toward the Onida T.V. For this researcher
collected primary and secondary data from the sources. The research
methodology adopted by the researcher includes chi-square test, percentage,
arithmetic mean, correlation, and variance. The researcher founded that
32
favorable appreciation response was received from the customers. Study also
certifies that consumer behavior is unpredictable one in any kind of the
market. J.V Rangeswara Reddy (2009) Indian journal of marketing The
researcher research on the topic “CUSTOMER SATISFACTION OF
NOKIA MOBILE HANDSET USERS” the objective of the research is to
study the satisfaction level of the customers, awareness of customer about
the products and to predict the consumer behavior. For this researcher
collected primary data and analyse it with the help of tables, charts, bar
graphs and pie charts. The researcher found that the product awareness about
the nokia product is high as compared to others. It is also concluded that the
consumer is influenced to buy nokia due to its brand image and also the
satisfaction level of customers of nokia is high as compared to the others
handsets in market.Steen amp (1991) studied the Consumers' variety
seeking tendency (intrinsic desire for variety) is recognized as an important
characteristic that influences consumers' electronic choice behaviour.
Empirical studies in economics and marketing have not specifically focused
on this consumer characteristic, but instead have approached the issue from
the overt behaviour side. Given the great many factors that may underlie
variation in behaviour, intrinsic desire for variety cannot be validly derived
directly from observed behaviour. Instead, a measure specifically tapping
this consumer characteristic is required. In this paper a scale (VARSEEK)
for measuring consumers' variety seeking tendency with respect to foods is
developed. The construct validity of this VARSEEK-scale is investigated
extensively and managerial implications are discussedH.k mukharje (1995)
studied that two-equation bivariate probit model was formulated to analyze
simultaneously consumers' preferences and attitudes toward organically
grown produce (OGP). Results suggest that consumers who are nutritionally
33
conscious, concerned about the use of pesticides, and wanting produce tested
for freedom from residues would have a higher Propensity to prefer OGP.
Among the potential buyers, consumers who are white, better-educated, and
have large families are more likely than others to tolerate sensory defects.
The study suggests that testing and certification, sensory qualities, and
competitive pricing are the most important factors that would enhance the
marketing potential of OGPCHAPTER NO.
3RESEARCHMETHOD
OLOGYRESEARCH METHODOLOGY INSIGHT
MARKETING RESEARCH PROCESS AN OVERVIEW The essence
of research conducted by me is to analyze the present market position of
Verka products among its competitors and the problems which are being
faced by customers, wholesalers, retailers. The eventual objective is to
suggest some recommendations to the company so as to enable them to
increase their market share.One in analyzing my samples follows no
conventional method. The total analysis is based on the internees from the
question put on before my sample size. A research of this can’t be done all
once throughout large area in a limited time so Sangrur, Sunam have been
selected for research.INTRODUCTION According to Prof. Phillip
Kotler,”Marketing research is the systematic, design, collection, analysis and
reporting of the data and finding relevant to specific marketing situation
34
facing the company”.Marketing is restless, changing dynamic field. Since
1920 many important and dramatic changes have taken place in marketing,
thousands of new products including those of entries of new industries such
as automobiles, electronics and computer, textile, walk product etc. have
appeared in the market. The market orientations have changed from
production to market.STEPS OF MARKETING RESEARCH
PROCESS:-DEFINING PROBLEM AND RESEARCH
OBJECTIVESDEVELOPING THE RESEARCH PLANCOLLECTION OF
DATAPRESENTATION OF THE FINDINGS The first step of
marketing research is defining the problems and research objectives.
Following are the problems and objectives which are to be defined:
# To ascertain the frequency of using Verka product. # To ascertain
rescannable price of Verka products.# To ascertain the best product of
Verka brand. .# why people prefer Verka products.# To know about
sales pattern.# To know the competition level faced by Verka products
in the market.# To know the opinion of people about Verka products
regarding its taste, packing etc. DEVELOPING THE RESEARCH
PLAN The second step of marketing research process calls for
developing the most efficient plan for gathering the needed information.
While designing a research plan we have to take decisions regarding data
sources, search approached, search instruments, sampling etc. There are two
plan contact methods which are as follows:A. DATA SOURCES
There are two types of data sources:1. Primary Data:- Personal interviews
are conducted which enable collection of oral verbal response. This is fact to
face contracted with structured or sometimes even unstructured patterns.
This helps in obtaining indent information.2.Secondary Data:-
35
Secondary data can be obtained from different Milkfed magazines and
annual reports, financial documents referred.B. RESEARCH
APPROACHSurvey Method :- Survey are best suited for descriptive
research companies which undertake surveys to learn about peoples’
knowledge, beliefs, preferences, satisfaction etc. to measure these magnitude
in the general population. While observation and tours are best suited for
exploratory research which is not the case of our study.C.
RESEARCH INSTRUMENTQuestionnaire A questionnaire is
prepared and used to collect the information. The majority of questions are
close ended. Questionnaire is distributed to people to know about their
preferences, tastes, demands etc. This is one of the easiest methods of
collecting information.D.SAMPLING PLAN After deciding on the
research approach and instrument, we must design a sampling plan. This
plan calls for three decisions: 1. Sampling Unit:- Here we define
what is to be surveyed i.e. the target population that will be sampled. In our
case the general public in cities and towns come under the sampling unit.2.
Sample Size:- Large samples give more reliable results. In our
study 100 customers were surveyed in Sangrur, Sunam.3. Sampling
Procedure:-Area sampling is using because it is not practically possible to
visit all places of India therefore Sangrur, Sunam chosen for survey.E.
CONTACT METHOD:-In this decision is taken that how the object
should be contacted i.e. whether by mail questionnaire, telephone,
interviews. In our research personal interview is the most convenient and
reliable method. F. COLLECTION OF THE
INFORMATION:-The data collection phase of the marketing research is
36
the most expensive and most error prone process. There can be error as some
respondent can give biased or dishonest answer for the collection of the
information. The researchers personally go to customers to collect the
reliable data. Here all knowledge of the researcher about that field comes to
test the ingenuity of the research.Here I got the experience of working
professionally and independently on the road which gives some taste of
practical marketing. I also got a lot of exposure about the market. The
present study undertaken is descriptive in nature and in this study
questioning people with regular expertise in that are being
used.Limitations of research:-1) Due to sangrur being a large city, it
was not possible to interact with people from all over the city or even
district.2) Few consumers were reluctant to fill the questionnaire as they
perceived us as sale men and also shown reluctance in giving their contact
numbers.3) Time period for the project execution was less as ample time
could not be given to each customer and vice versa as they have to fulfill
their other obligations also.4) Interaction with dealers was also difficulty as
they were busy with their customers most of the time.5) There is no measure
to check out whether the information provided by the consumers is correct
or not. CHAPTER NO.
4DATA ANALYSIS
AND
37
INTERPRETATIONANALYSIS
& INTERPRETATION 1. Kind/source of milk purchased?
Packed 34
Dairy 25
Milkman 41
Packed34%
Dairy25%
Milkman41%
Packed Dairy Milkman Interpretation:
According to 100 respondents 34% people says that they use to use packed
milk, 25% says they use dairy milk and rest 41% says they use milk brought
by milkman.2: How you ever used Verka Products?
Answer Percentage
Yes 60
No 40
38
Interpretation: According
to 100 respondents 60% people says that they use to verka product and 40%
people do not use verka product.. 3: From the following which
Verka products you have used?
Products Percentage
Milk 55
Ice-Cream 25
Lassi 5
All & Others 15
Interpretation: According to 100 respondents 55% people says that they
use to use packed milk, 25% says they use ice cream and 5% says they use
verka lassi and rest are 15% used other product of verka. 4: Since when
you are using Verka milk Product?
Time in Years Percentage
1 57
39
1-5 34
More than 5 9
Interpretation:
According to 100 respondents 57% people says that they are using the milk
product last one year, 34% from 1 to 5 year and 9%people using the milk
more than 5 year.. Q5: Do you think whether the price is reasonable
for Verka milk products?
Answer Percentage
Yes 45
No 55
40
Interpretation: According to 100 respondents 45% people says that the
price of verka milk product is reasonable and remaining 55% people says
that the price is not reasonable.6: What do you think about the packing
of the different Verka products?
Answer Percentage
Good 68
Ok 8
Satisfactory 9
Poor 15
Very poor 0
41
Interp
retation: According to 100 respondents 68% people says that the packing of
verka products are good, 8% people says that packing is ok, 9% says
satisfactory and remaining 15% says that the packing of verka products are
poor so according to this analysis packing is good. 7: In your opinion
taste of the Verka products are?
Answer Percentage
Good 64
Average 8
Satisfactory 18
Poor 10
Very poor 0
42
Interpretation:
According to 100 respondents 64% people says that the taste of verka
product is good, 8% says that its taste is average, 18% people satisfactory
with this and 10% people says that the taste is poor. 8: What is
your opinion about the quality of the various Verka products?
Answer Percentage
Excellent 13
Good 51
Satisfactory 26
Poor 10
Very poor 0
43
Interpretation:
According to 100 respondents 13% people says that the quality of verka
products are excellent, 51% people says that the quality is good, 26% people
satisfy with this and remaining 10% people says that it is poor.Likert
scale For comparing verka products with Today & Amul with respect to
likert type scale has been used.
Services
of verka
Excellent
(5)
Good
(4)
Average
(3)
Poor
(2)
Very
poor
(1)
Total
weighted
average
Relative
%
Packing 68 8 9 15 0 429 35.63
Taste 64 8 12 10 0 408 33.88
quality 13 51 26 10 0 367 30.48
Note:- Responses of excellent were assigned weight of (5) good responses
were assigned weight of (4) responses of average (3) and responses of poor
and very poor were assigned weight of (2) and (1) respectively. And
respective responses were multiplies with their corresponding weight to get
total weighted average and then their relative percentage was calculated.
Are you aware that full cream milk is the best for growing children &
sports person as it contain 6.0% of facts?
44
Yes 63
No 37
No37%
Yes63%
Yes No
Interpretation: According to 100 respondents 63% people says that they
are aware about that full cream milk is the best for growing children &
sports person as it contain 6.0% of facts and rest 37% says that they are not
aware that full cream milk is the best for growing children & sports person
as it contain 6.0% of facts.
10: Have you ever seen the advertisement of the Verka Products?
Answer Percentage
Yes 24
No 76
45
Interpretation: According to 100 respondents 76% people says that they
have not seen the verka advertisement and 24% says that they have seen the
advertisement. As clear from analysis mostly people have not seen the verka
advertisement.
11: When you like to buy verka products?
Answer Percentage
During Traveling 27
For Break 18
As a Health Tonic 35
For Enjoy 20
46
Interpretation: According to 100 respondents 27% people says that they
like to buy verka products during traveling, 18% people buy during break
time, 35% people buy as a health tonic and remaining 20% buy verka
products only for enjoy.
47
CHAPTER NO .5
CONCLUSION
48
Conclusion
Working at Verka Milk Plant, MOHALI gave me an opportunity to apply
my skills and knowledge, which I had gained previously.
It gave me an opportunity to see working an organization and to be a part of
it. Marketing Research Project on Rural Marketing gave me an opportunity
to be exposed to the farmers who were the members of various Milk
Producers’ Co-operative Societies and to know about them.
It was an amazing experience with learning all the way, which helped me to
brush up my knowledge and skills.
49
CHAPTER .6
SWOT ANALYSIS
50
SWOT ANALYSIS
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 strengthen 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.
51
4. Very high rates of products such as bottle milk for Rs.15 for 200 ml.
OPPORTUNITIES:-
1. Greatly improved expert potential for milk products of western as well
as traditional types.
2. Proper utilisation of available resources to decrease the 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.
52
4. Export of quality feed under the liberalisation policy.
CHAPTER NO .7
SUGGESTION
AND
53
RECOMMENDATION
54
RECOMMENDATIONS REGARDING PRODUCT:-
Verka has presently four variants of liquid milk in market but still it is not
able to segment market according to consumers’ preferences. The only
differentiation in these variants is the color of the packs. Variants name
should be printed on the packs in such a way that they are clearly visible to
the consumers. Different punch lines should be designed for different
variants. This will help in formulating advertisement strategy and reaching
the targeted customers. For example, verka smart double toned milk is
offered recommended by doctors to heart patients. It can be targeted in
health conscious people.
Plain lassi which comes in one litre pack only should be available in smaller
packs like 250ml or 500ml.
Kheer is available in 125gm pack, which is quite small and is recommended
to be packed in larger pack like family size packs so that it can be consumed
conveniently as a sweet dish by whole family.
RECOMMENDATIONS REGARDING PLACE
55
Milk consumer values from delivery and a lot of distributors are already
providing this facility. Milk plant should think of giving extra commission to
its dealers for ensuring such facilities. This scheme can be implemented in
few areas and if there is an increase in consumption of milk then it can be
extended to all other areas catered by milk plant.
There is need to communicate regularly and taking feedback from agents.
Monthly meetings will help in improving the relation with dealers. The
declaration of the prices like “Fastest Growing Dealer” OR “Highest selling
Dealer” can be announced bi monthly or bi annually to motivate dealers to
increase their sales.
Shortage of products is seen in Sunam so distribution network should be
improved for the same.
RECOMMENDATION REGARDING PROMOTION
The following steps can be taken in the field of promotion:
1) Using electronic and print media for information dissemination:
In recent days, there has been lots of new highlighting adulteration of food
products that is making people skeptical about packed food products.
56
Special programs highlighting supply chain of milk producers ‘ co-
operatives can be screened and telecasted on TV from time to time .news
highlighting achievement of milk plant can also be published in news papers
which will help in creating favorable image for verka products.
2) Inviting people for plant visits on weekends:
Plant can be opened to general public for visit on Saturday and Sunday for a
limited time interval in order to win their trust on verka products. This can
be done through collaborating with Radio Fm channels where winners can
get free visits and some limited period coupons.
3) Toll free telephone for customer feedback:
Presently verka products have a telephone number printed on their packs but
this is not toll free. A toll free number should be there and printed in such a
color or font that is easily differentiable from the rest of the text on the pack.
Recommendations regarding pricing:
Following suggestions can be considered for improving pricing strategies of
companies:
1) Introduction of coupon system;
Milk is the commodity that is daily bought and consumed within
households. It is cumbersome for consumers to make payment daily as
change for currency is not available at times. There are offered candies in
57
return for change which many of the consumers do not like. This problem
can be solved by introducing milk coupon which can be bought from
agencies. Coupon system has been successfully implemented by several
individual distributors in their respective areas. It is needed to be
implemented in entire city.
2) Pricing in round figures:
Milk sellers often do not have fifty paise coin or change with them so they
often sell milk at higher prices .this problem can be curbed by keeping the
prices in whole number multiple of rupee. People buying milk using
coupons can be this discount of fifty paise. This will encourage more people
to for milk coupon.
58
CHAPTER NO .8
BIBLOGRAPHY
59
Brochure/booklet/magazine Verka milk Plant, Mohali
Kothari C R, “Research methodology” Second Revised Edition Publishers-
New Age International (P) Ltd., Year- 2008
Dr. Arvind Kumar Yadav and Mr Suman Yadav (2008) , Journal of IPM
Meerut
Dr. N. Kathirvel and Dr. N Chandersekaran ( 2008) , Indian journal of
marketing.
J.V Rangeswara Reddy (2009) , Indian journal of marketing.
Websites:-
www.milkfed.nic.in
www.milkfed.jp
www.milkfed.org
60
CHAPTER NO .9
ANNEXURE
61
ANNEXURE
Dear Sir/Madam
I am a student of, GJIMT, MOHALI conducting a marketing
survey on “study on consumer behaviour about verka products I”. I request
you to fill this questionnaire & I assure that this data will be used only for
study purpose & it will be kept confidential.
Name: …………….
Address: …………....
Telephone No: ……………
1. Kind/source of milk purchased?
Packed
62
Dairy
Milkman
2. How you ever used verka product?
Yes
No
3. From the following which verka products you have used?
Milk
Ice cream
Lassi
All & others
4. since when you are using verka milk products?
One year
1-5 years
More than 5 years
63
5. Do you think whether the price is reasonable for veka milk products?
Yes
No
6. What do you think about the packing of different verka products?
Good
Ok
Satisfactory
Poor
7. In your opinion taste of verka products are?
Good
Average
Satisfactory
Poor
8. What is your opinion about the quality of the various verka products?
Excellent
64
Good
Satisfy
Poor
9. Are you aware that full cream milk is best for growing children & sports
persons as it contains 6.0% of fats?
Yes
No
10. Have you ever seen the advertisement of verka products?
Yes
No
11. When you like to buy verka products?
During traveling
For break
As a health tonic
For enjoy
65
66