MBA PROJECT OF VINOD NIRALA.docx

7/28/2019 MBA PROJECT OF VINOD NIRALA.docx

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Student Declaration

I hereby declare that the project report entitled

Marketing prospective of Sudha Tinned Balusahi & other

products in Rout No.13 & 15 with special reference toTIMUL,

Submitted in partial fulfilment of the requirements for the degree of

Masters of Business Administration

to XyzUniversity, India, is my original work and not submitted for the

award of any other degree, diploma, fellowship, or any other similar title orprizes.

Place :

Date : [VINOD NIRALA]

Reg. No. :


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Examiner's Certification

The project report of

VINOD NIRALA

Marketing prospective of Sudha Tinned Balusahi & other

products in Xyz Rout No.13 & 15 with special reference toTIMUL, Xyz

is approved and is acceptable in quality and form.

Internal Examiner External Examiners


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University study centre certificate

This is to certify that the project report entitled

Marketing prospective of Sudha Tinned Balusahi & otherproducts in Xyz Rout No.13 & 15 with special reference to

TIMUL, Xyz

Submitted in partial fulfilment of the requirements for the degree of

Masters of Business Administration of

Xyz university of Health, Medical and technological

sciences

VINOD NIRALA

has worked under my supervision and guidance and that no part of this report has

been submitted for the award of any other degree, Diploma, Fellowship or other

similar titles or prizes and that the work has not been published in any journal or

Magazine.


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PREFACE

Many factors contribute for the completion of a project work directly or

indirectly. But I would like to express my deep sense o gratitude to few for

their valuable contributions.

The topic of my project was "A Brief Study of Marketing prospective of

Sudha Tinned Balusahi in Xyz Rout No.13 & 15 with special reference to

TIMUL, Xyz".

Then either we choose for ourselves, a problem research, which is to be

solved during these weeks training programme or organization itself, give

the problem for research. The problem research is generally chosen taking

into consideration the weakness of the organisation, so that finally when

the findings of the research come out through researcher, it helps the

organisation to take remedial action.

To complete such a study required grasp information from the market. I

have conducted a detailed market survey in the city of Xyz (Rout No.13 &

15), I had gone through several Sudha outlet and collected information

regarding the Sudha Tinned Balusahi.

The aim of the survey was to get through information regarding the product

being in the market and as per that information how a newly and

competitive product can be launched. My study deals with this.

I want to point out a very important aspect of this training that is right from

the stage of formulating the research problem to the stage of report writing,

my knowledge specially as regards to marketing research, has

undoubtedly enhance.

It is not a criticism rather than a humble approach of a student of Business

Management to look into the various problems and may have deficiencies,

which have incurred due to my lack of technical knowledge.

[Vinod nirala]


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ACKNOWLEDGEMENT

I express my sincere gratitude to the MANAGEMENT of Tirhut Dugdh

Utpadak Sahkari Sangh Ltd., (TIMUL), Xyz for providing me the

opportunity to undergo the training programme in their orgnisation to

complete my project work in marketing service division.

I am obliged to Dr. S.N.Borah, Managing Director, Mr. Sudip Khan,

Deputy Manager (Marketing), Mr. Dhananjay Kumar Technical Officer,

(Marketing), Mr. Ashok Kumar Sinha (Establishment In-charge) and the

staff of the organization for their wholehearted co-operation. A mention of

help given by member of production department in providing permission to

visit the plant and him during the course of study is needed. I am thankful

to them too.

I am extremely thankful to my able guide Mr. Abhay Kumar, for his all

along suggestions and dynamic guidance to me.

And lastly that name who encouraged and assists me, every time in my

life. He always tries to boost up my morality therefore I easily overcome all

hindrances. That name goes to my loving parents and all family members.

[VINOD NIRALA]


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CONTENTS

Guide Certificate

AcknowledgementPreface

Topic

Chapter 1 : Introduction of the Study - 0918

(a) Objective of the Study

(b) Significance of the Study

(c) Scope of the Study

(d) Methodology to be used for the study

(e) Limitation of the Study

Chapter 2 : Introduction to the Organization1934

(a) History of the Organization (TIMUL)

(b) Group Profile of the Organization

(c) Market Status of the Organization

(d) Competitors of the Organization

(e) Organizational Structure

(f) Future plan of the Organization

Chapter 3 : A Theoretical aspect of Marketing prospect3547

Chapter 4 : A Practical aspect of Marketing prospect of Sudha TinnedBalusahi in Xyz Route No. 13 & 15with reference to

TIMUL. - 4862

Chapter 5 : Conclusion & Suggestions - 63 - 69

Bibliography

Questionnaire


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I ntroduction of the Study

(a) Objective of the Study

(b) Significance of the Study

(c) Scope of the Study

(d) Methodology to be used in study

(e) Limitation of the Study

CHAPTER - 1


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I ntroduction of the Study

Management course is a course, which teaches the student to get the

work done properly on different available resources viz. man,

machine, material, money etc. So, that there can be satisfaction from

both the organization side and worker side who plays a significant

role in achieving success. So for the fulfillment of management

course project training is required for each student in the different

concern to get accustomed to the situation of the concern. The main

objective of such training is to make proper implementation of

theoretical ideas into the practical aspect. In such a short span of

training of six weeks, student learns to develop their theoretical views

in real life. Besides, this training is essential take part with different

personalities, to make decisions and after all to create a good co-

operative environment amongst the employees.

So, that in future, after completion of Management Course a student

can adopt the situation of the concern quickly based on his training

ideas. The marketers job is to understand the buyers decision at

each stage and what influences are operating. This understanding

allows the marketer to develop an effective and efficient market

programme for the target market.


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(a) Objective of The Study

The main objective of such training is to make proper implementation

of theoretical ideas into the practical aspect. A student learns various

types of theories, cases and examples of practical aspect in books.

The knowledge is not used in the real life. Therefore for the fulfillment

of such shortcomings, training is conducted at different levels. In

training period, students develop their skillness and learn how to

implement the idea with respect to gaining organisational objectives.

Besides this training is essential to improve skill power to tackle

unfamiliar situations to talk with different personalities to make

decisions and after all to create a good co-operative environment

amongst the employees, so that in future after completion of

Management course, a student can adopt the situation of the concern

quickly based on his training ideas.

Tirhut Dugdh Utapadak Sahkari Sangh Limited is one of the best

dairies in Bihar today. It is involved in marketing of sudha tinned

balusahi. The objective of the study is to know the future prospect of

Sudha tinned balusahi. What are the difficulties they face in it? There

are some of questions that I had tried to solve by the conducting this

study


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(b) Signif icance of the Study

Management course, which teaches the student to get the work done

properly from different available resources, viz. - man, machine,

material and money etc. So that there can be satisfaction from both

the organizational side and worker side who plays a significant role in

achieving the target.

The training in any organization gives an idea of different marketing

activities and also the decision are taken tactfully when any problems

comes to executives. So the way of problem solving, right decision-

making and knowledge of different types of marketing activities gives

much importance to this study.


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(c) Scopeof the Study

The study conducted at Xyz Dairy, Bihar. The study was confined to

these departments which deal with marketing, they are :

(i) Sales and Administration Department

(ii) Manufacturing Unit, &

(iii) Marketing Activity of Xyz Dairy

As regard of coverage of the study, I studied on the topic of Future

prospect of Sudha tinned balusahi in Rout No.03&05 with reference

to Xyz Dairy (TIMUL). This study may prove helpful for the

management to analyse, to know and to find out the future prospect

of Sudha tinned balusahi also. I conducted market survey and got

various opinions about the Sudha tinned balusahi from the

management to improve the quality of their milk and milk products, so

that, people like more and more of their products.


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(d) M ethodology to be used in Study

The success or failure of my research report depends to great extent

on the methodology for collecting information and data from internal

and external sources. It deals with research design used, data

collected method used, and fieldwork carried out, analysis and

interpretation done.

Data Collecting Method

There are two types of data:

(i) Primary

(ii) Secondary

The primary data collected with a following methods.

(A) Interview :- Concerned officers and employees of TIMUL were

interviewed.

(B) Questionnaire :- A questionnaire was developed to know the

response of consumers about special product. Further suggestions

were also invited from them.

The Secondary data col lected from :

(A) Annual reports of Xyz Dairy and

(B) Relevant Files of Xyz Dairy.

Sampl ing Plan

Here decision regarding following aspects are taken:-

(A) Universe as a population:-

In our pace population includes all the consumers of Sudha

tinned balusahi.


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(B) Sampling Unit:-

Who is to be surveyed? In this study sampling unit combination

of one in one house in the family were asked to be giving their

opinion.

(C) Sample size:-

A sample size of 200 respondents was for this study.

(D) Sample procedure:-

In this study, help of sample random sampling method were

taken.

(E) Contact Method:-

Personal contacts were made by the chosen sample.

DATA ANALYSIS AND INTERPRETATION

In order to analysis the data obtained from questionnairevarious statistical tools were used like the average, percentage,

histograms and pie diagrams were used. There are very simple to

draw and easy to understand.


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(e) L imitation of the Study

Allthough all efforts have been

(i) Limitation of time :-

The time allowed for the study was not been possible to adopt

full methodology within the stipulated time.

(ii) Limitation of finance :-

It had not been possible to make in depth study in above

respect due to the limitation of finance.

(iii) Limitation of area :-

It was not possible to survey the Xyz Route No.004&06 due to

the lack of time and finance.

In spite of all those limitations efforts were made on my part to

come out with whatever possible information was gathered and give

view/points on it in the form of suggestion at the concluding part of

this project.


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Introduction to the Organization(a) History of the Organization (TIMUL)

(b) Group Profile of the Organization


(d) Competitors of the Organization

(e) Organizational Structure

(f) Future plan of the Organization

CHAPTER - 2


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Introduction to the Organization

(a) H istory of the Organization (TIMUL )

This is an established fact that India is basically agriculturist country

because of 80% of its population having dependence on agriculture.

Besides, the production of food grains milk is also produced in a large

quantity in rural areas.

However, in absence of proper marketing facilities the economic

condition of milk producers was far from being satisfactory. The

middlemen, who used to pocket the maximum amount of profit from

the sale of milk and its product, giving very little amount to the actual

producers, were exploiting them. The individual milk producers were

not in position to press the middlemen to give reasonable return for

their milk products. They also had facilities to sale milk its product in

big cities which provide big market.

Some of the great Indian leaders realized the importance of co-

operative societies in such situation Mahatma Gandhi told that A co-

operative society should be organized with the willing consent of the

conversant with love and understanding.

The concept of the co-operative society for the milk producers was

accepted to the solution of difficulties. The idea was ideally welcomed

by the milk producers who quickly revised its importance and heartily

participated in the new venture.


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BACKGROUND

Xyz dairy was established as joint venture of Bihar State Government

and United Kingdom Freedom for Hunger campaign organisation,

UKFHC (United Kingdom Freedom Hunger Corporation), provides

various equipments and capital this venture both Bihar Government

and UKFHC jointly share the expenses in which state government

provided 50% as capital and 50% as loan. This dairy was inaugurated

on 12th March, 1982 with the capacity production of 25000 litres, milk

per day under Operation Flood programme.

For the rapid development of the programme and meeting the

demands of milk state wise under Operation Flood Scheme. State

Government established an apex Co-operation Milk Producers

Federation (COMFED) on 18th

April, 1983. Under this milk producingplaces formed at district level. Its objectives include increasing the

production of milk, its marketing providing pure milk and various milk

products to customers on 21st April, 1984. The whole established

mechanism was transferred into federation. This system helps rural

areas milk producers as they started getting cost of their milk.

Keeping in view, all these development on 22nd July, 1988 Tirhut Milk

Producer Co-operative Federation. A board of directors was

established on 27th February, 1989 from among the milk producer

members.


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On 14th January, 1991, Xyz dairy was handed over to federation

management. Now, under the able guidance of federation

management which democratically elected the body and the

Managing Director which functioning properly and effectively.

The products of dairy are marketed under the brand name of

SUDHA . The dairy has large network of retailers to sale its

products.


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ORGANISATION AT A GLANCE

1. Year of Establishment 1982

2. Initial Plant Capacity 25000 Litres

3. Present Plant Capacity 100000 Litres

4. Handling Capacity 65000 Litres

5. Storing Capacity 127000 Litres

Chilling Centres at TIMUL

I. Sitamarhi 15000 LPD

II. Motihari 15000 LPD

III. Gopalganj

IV. Sahebganj

V. Betiah

Number of Tankers

I. Small Tankers 3

II. Big Tankers 2

Marketing Areas

Xyz

Motihari

Betiah

Raxaul


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Sitamarhi

Gopalganj

Siwan

Sahebganj

Number of Retail Outlets (Xyz) : 527 Retail Points

For Milk Products marketing areas :

Hajipur

Patna


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(b) Group Profile

Tirhut dugdh Utpadak Sahkari Sangh is the largest dairy in Bihar.

The main product of TIMUL is pasteurized milk . Its brand name is

SUDHA.

Type of Milk :-

There are three types of Milk product by Xyz dairy.

(1) Sudha Gold :-

It is the most popular milk among the H.I.G. and upper

M.I.G. segment. It was observed that the housewives

measures the quality of the milk by the fat content. Thus

on the basis of perceived quality F.C.M. score over the

other milk types. Its composition is as follows :-Fat content : Not less than 6 %

SNF : Not less than 9 %

This is very good milk for the preparation of curds and sweats.

(2) Sudha Shakti Milk:-

Sudha Shakti Milk has the most consistent supply of all the milk types thatare being supplied by Xyz Dairy. The composition of the

milk is some as that of cow milk in terms of fat and SNF.

It is cow fat milk but having rich amount of other things.

Its composition is as follows :-

Fat content : Not less than 3 %

SNF : Not less than 8.5 %


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This is very good milk for the preparation of all types of sweets and other

things. It is used for drinking purpose for all age groups.

(3) Sudha Tonned Milk :-

Sudha Tonned Milk was initially launched for the tea

stall but lately they were being recommended by the

doctors for the patient needing low fat in take. It is fat

free milk obtained by eliminating of fat contents. It is rich

in protein, lactose and other minerals except only fat. Its

composition is as follows :-

Fat content : Not less than 0.1 %

SNF and Vitamin A : Not less than 9 %

This is very good milk for old men, infants and who are facing cholesterol

problems.

Milk Products

(1) GHEE

Ghee is manufactured in Xyz Dairy in the brand name

of "SUDHA" from Januly 1993.

Now a days Ghee is sold in all over the State and is

well accepted by the consumers.


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(2) PEDA :-

This is a unique product of the Dairy which has

started from November, 1992. Peda is traditionally

prepared by mixing Khoa and sugar in the ratio of 3:1.

It is used as a delicious sweet which is very popular in North Bihar.

Specially on the occasion of various religious festivals as saraswati Puja,

Durga Puja, ID-UL-Fitar and X-mas etc.

(3) PANEER :-

Paneer is a coagulated Milk product obtained by

coagulation of Milk and by addition of citric acid and

chena. it is started in December 1992.

It is used in the preparation of various types of sweets.

Also used in preparation of different vegetables sometimes. It is directly

used by patients.

(4) MISTI DAHI :-

It is another delicious item and most popular (Specially

in the summer season) milk products of Xyz Dairy. It was

started in February, 1994.

It is a part of very wide range of Bengali sweets that are

extremely popular in eastern part of country.

(5) LASSI :-

It is also a popular and delicious product of Xyz Dairy,

which has been launch in the market and it is the most

popular and liked by people in summer season. It was

started in April 1993.It is very useful in the case of indigestion.


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(6) TABLE BUTTER :-

T. Butter is sold in the market as the brand name of

"SUDHA". It was started by Xyz Dairy in 100 gms. rappers in

Oct., 1993. 'But in these days it is available in 50 gms. of wrappers. Now a

days it is also available indifferent gms. of wrappers.

(7) SUDHA SURBHI :-

Sudha surbhi is an another innovation of its R & D wings in the year

1994-95, it is product of chena and Rabri higher percentage of fat and

protein. It is marketed in hygienically packed and sealed with attractive

cups of 100 gms.

(8) KALAKAND :-

Kalakand is an innovation of its R & D wing in the

year 1998. It is very delicious and very popular product ofSUDHA Dairy. It is special product of Khoa.

(9) During the year 2001-03 some special sweets are introduced in the

market by the Sudha Dairy, like LEDIKENI, BALUSHAHI,

CHOCOBURFI.

These sweets are delicious and favourite in his North Biharregion.


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(10) SALTED LASSI :-

Salted lassi is very recent product of Sudha Dairy. This

is introduced for specially the diabetic persons and it is very

popular among them.

(11) SUDHA RASSOGULLA :-


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Market status of Sudha is very good due to its service and purity in

products. Since Sudha is a very large company of North Bihar

situated in far about 4km. from Xyz Town in Sadatpur.the marketing

area of Sudha is Very wide. Its marketing areas are Xyz, Siwan,

Sitamarhi, Gopalganj, Motihari, Betiah, Raxaul, and Hajipur. So it has

a large no. of distributors and retailers. Customer easily gets the

products of Sudha. Consumer get satisfaction after using its products

according to these consumptions of Sudha milk and its product is

growing day by day.


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(d) Market Status of the Organization

As we know that Shudha is a no.1 brand in dairy sector in North

Bihar. But Sudha is not milk producer in North Bihar. There are a lot

of competitors in market such as Amul, Raj, Amrit, Everyday, Nestle

etc. But Amul is a very tough competitor of Sudha and its product

range is also wide. Customer always gives first priority to Sudha

because this is a local company and there are a large number of

retailers of Sudha so that customers easily reaches to the Sudha

Parlour and purchase its product according to their need.But

sometime like festivals and matrimonial ceremony the demand of milk

and its by product become very high and then that time Sudha

become unable to fulfill the requirement of customer then customer

take in use other company to fulfill their need


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(e) Organisational Structure

The Bihar state Co-operative Milk Producers Federation Limited

(COMFED) is registered under the head office at B-9, Sri Krishnapuri,

Patna. It is owned by the Bihar Government. The company has a

chairman who is associated with the Board of Directors.

The company is headed by Managing Director (MD). Next after the

MD is the General Manager (GM). There are six major departments

as follows:

(i) Personnel

(ii) Finance

(iii) Marketing

(iv) Purchasing

(v) Procurement

(vi) Production

Xyz Dairy an unit of COMFED is situated at NH-28 about 6 KM

west of Xyz town at Kolhua Pagambarpur.

MARKETING DEPARTMENT AND OBJECTS

(I) The marketing department is the backbone of organisation and

plays very important role.

(II) The Deputy Manager (Marketing) is the head and fully

responsible for his department.

(III) Administration is direct under the control of Managing Director.

(IV) Below the Deputy Manager (Marketing) there are marketing in-

charge.

(V) There are four Assistants under Marketing In-charge.


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OBJECTS

There are number of objectives of this department as follows:-

(i) Selling of milk and its products.

(ii) Supervision

(iii) Transporting

(iv) Accounting

(v) Appointment of retailers and whole sellers.

(vi) Market survey

(vii) Consumer contact

(viii) Advertisement

(ix) Sales Promotion


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ORGANIZATI ONAL STRUCTURE

Chairman

Board of Directors

Dy. Manager

(Marketing)

Plant

Incharge

Incharge

Cattle feed

Asst. Manager

(Engr.)

Sr. TechnicalSupervisor (Engr.)

Technicians

Technicians&

Analysts

Asst. Manager

(Accounts)

Accountant

AccountsAssistants

Asst. Manager

(Procurement)

Managing Director

Technical Officer(Marketing)

Technical Officer

(Product)

Technical Officer

(Processing)Technical Officer(Procurement)

Milk ProcurementOfficers

Field Supervisors&

Assistants

Field Supervisors&

Assistants

Incharge(Chilling Centres)

ShiftIncharge

ShiftIncharge

MarketingSupervisors


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(f) Futu re plan of th e Organization

The most important aspect of management is Planning without Planning

Management cannot reach the goal. Keeping this in mind each and every

organization irrespective of their size has store some future plans, which

are Primarily, directed at profit and surplus.

As a result Xyz Dairy has some plans for future which are mentioned below

:-

(i) Daily Milk collection increase average to 60,000 liter per day

(ii) Daily milk sale increase average to 55,000 litre per day.

(iii) 20,000 liter milk will be used for the milk products.

(iv) Annually 6000 metric ton 'SUDHA animal feed' will be sold.

(v) 95% participation at working society.

(vi) Number of Model societies will be increased by 200.

(vii) Every year 400 managerial member will be trained.

(viii) Every society has their own breading points.

(ix) Business of SUDHA will be increased by 70 crores.

(x) 80% of the profit of SUDHA will be divided among the societies.


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A Theoretical Aspect of Marketing Prospect

CHAPTER - 3


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A Theoretical Aspect of Marketing Prospect

In Services are the creation and delivery of customer-satisfying

services at a profit to the supplier or provider of service. In the sale of

services to customers, that customer is satisfied, that their needs and

wants be fulfilled by the providers of services.

NEW PRODUCT DEVELOPMENT

One of the challenging tasks faced by an industrial firm is the

development and marketing new industrial products. Though new

product development is complex and difficult, it is a vital and

necessary task for a profitable growth of a firm. It tests a firm's market

knowledge, technical competence, financial strength, and ability to

complete. Unless products that have entered the decline stage (of

product life-cycle) are replaced by new products a firm can not expect

to maintain its profitability and growth.

CLASSIFICATION OF NEW PRODUCTS

A product that is new to the company and to the market is called a

new product. New products are classified as :

(i) Products that are innovative and new to the world ;

(ii) Products that are new to the company, but not new to the

market ; (iii) Revisions or improvements to the existing products

in the existing

markets ;

(iv) Additions to the existing product lines with additional markets ;

(v) Repositioning existing products to new market segments;


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(vi) Products with substantial cost reductions without reduction in

performance.

Factors Responsible for Success and

Failure of New Industrial Products

Many studies have been conducted to determine the success or

failure rate of new products. We define success or failure of a new

product based on whether the product achieves the management's

performance objectives. Studies have found that 30 to 55 percent of

new industrial products fail, while the failure rate for consumer

products is about 75 percent.

Let us first look at the factors responsible for failure of new products.

New products do not satisfy the needs of many potentialcostomers. The failure results from an inadequate coordination

between R & D (or product development group) and marketing

(or marketing research) functions.

New products are not significantly different from the existing

products. They are similar and perhaps imitations of the existing

products. New products do not deliver the expected performance. The

companies understand the market (or customer) expectations,

but fail to meet those expectations due to poor product design.

The companies with weak new product development process

are beaten by competitors who copy their products but have

superior product quality and marketing effectiveness.


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Prices of the new products are much higher tan the value

perceived by the customers. This might be because the

companies want ot recover the cost of design, product

development, and market introduction too quickly.

The important success factors for new products were studied by

Cooper and Kleinschmist and summarised as follows :

Product superiority and uniqueness is the most important

success factor. It means superior quality and new product

features that give the product substantial competitive advantage

over competitors in the market place.

Market knowledge (or marketing effectiveness) is considered

important because the company understands the needs and

wants of target markets, defines the same at the product

concept stage of new product development process, and

translates this knowledge into marketing strategies and actionplans.

Successful new product development requires an effective

organisation or managing new product development process. We will

look at the process of new product development.

THE NEW-PRODUCT DEVELOPMENT PROCESSThe process by which potential product ideas are generated,

evaluated, directed, and turned into products is called the New-

product development process. We shall consider seven stages in the

new-product development process, although it can be described in a

variety of other ways with more or less number of stages. The seven

stages of new-product development process are :

(i) Idea Generation,


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(ii) Idea screening,

(iii) Concept development and testing,

(iv) Business analysis,

(v) Product development,

(vi) Market testing, and

(vii) Commercialisation.

IDEA GENERATION

The sales persons, customers, distributors, suppliers, design

engineers, managers often conceive of new product ideas. Industrial

customers are a very important source of these ideas. One of the

characteristics of industrial marketing is the buyer-seller relationship

and interdependence. The buyer has a specific problem which needs

to be solved by the supplier. For example, a company which wanted

to increase the production of transformer coil to meet the increasing

demand, asked one of its suppliers to develop coil winding machinesto solve its problem. Apart from solving customer problems, the new

product idea should be in line with the company's strategic plan.

An industrial organisation can attract good ideas by using

techniques such as brainstorming and attribute listening. In attribute

listening technique, major attributes of an existing product are listed.

Ideas are invited from a group of employees to search for animproved product by modifying each attribute. Further, an industrial

firm should motivate employees to submit innovative and novel ideas

in writing by offering recognition or payments to the employees

submitting the best ideas.

IDEA SCREENING


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The primary purpose of screening new product ideas is to select

those ideas which are likely to succeed. There should be a carefully

specified criteria and procedures for screening new product ideas.

In some of the companies the screening of ideas is done in two

stages. In the first stage the new-product committees asks certain

questions or apply certain checks to the product ideas, as suggested

below.

Is the new product in line with the company's long-term

objectives and strategies ?

Do we have adequate resources (like money, people, skills) to

make it successful ?

Is it really useful to customers by providing certain benefits, or

solving a specific problem ?

Does it deliver more value to customers than competing

products ? What is future growth, market size, and competition in the new

product industry ?

The new idea with positive answers to above questions will be

screened further in the second stage by using a rating formula as

show in in Table.

In table 7.2 the first column indicates the significant factors

considered for the success of new product ideas. In column (A) the

relative importance of these factors are indicated by giving

weightages out of the total weight age of 1. The relative importance

may vary from company to company depending upon the products or

services and the management thinking. In column (B) the

management rates how well the new-product idea is in line with the


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company's profile on each factor on a scale of 0.0 to 1.0. In the last

column the scores in columns A and B are multiplied to get a total

score for a new-product idea. In the example taken in Table the total

score is 0.62, which is below the minimum acceptance score of 0.70.

This means that the specific new product idea has failed to pass the

rating formula.

Table : New Product Idea Rating Formula

New-Product Idea

Significant Factors

(A)

Importance

(Weightage)

(B)

Company Capabilities

for the Product Idea

(A B)

New-Product

Idea Rating

1. Company objectives

and strategies

0.20 0.70 0.14

2. Marketing

experience and

effectiveness

0.20 0.50 0.10

3. Production

capabilities and

facilities

0.15 0.40 0.06

4. Research and

development know-

how

0.15 0.60 0.09

5. Availability of raw

material and

supplies

0.10 0.70 0.07

6. Financial resources

and profitability

0.20 0.80 0.16

1.00 0.62

Rating scale : Less than 0.4 = poor, 0.4 - 0.7 = fair, above 0.7 = good.

minimum acceptance = 0.70

Care must be taken to ensure that the persons involved in the new-product

committee do not stop thinking and should not apply the rating formula


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mechanically. There could be some unusual ideas that need to be

discussed from various angles before rejecting the idea.

CONCEPT DEVELOPMENT AND TESTING

After a new-product idea passes the idea screening stage, the idea

should be developed into a product concept. A product concept is a

detailed version of the product idea that is stated in a meaningful

customers terms. Often firms develop the new product into different

versions or alternative product concepts. Then each product concept

is tested by getting reactions from the customers. The concept thathas the strongest appeal from the customers is chose.

Let us consider an example of a company which wants to develop a

pallet truck for carrying materials in factory shopfloors and

warehouses. The company creates the following product concepts for

the pallet trucks.

Concept 1 - A manual pallet truck, compact and light-weight,

can carry materials weighing up to 20 kg, and low cost.

Concept 2 - An electric pallet truck, can carry materials

weighing up to 30 kg, medium duty and medium cost, at two

speeds.

Concept 3 - An electric pallet truck, can carry materials

weighing up to 50 kg, heavy duty and high cost, at three

speeds.

CONCEPT TESTING

In concept testing, the new-product concepts are tested in

prospective customer organisations. The concepts can be presented

by developing three-dimensional models (called stereo lithography) or


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physical products. The physical presentation of the product can

increase the reliability of the concept testing. Stereo lithography

technique creates computer- generated three-dimensional plastic

prototypes which take very short time (2-3 weeks) to get ready.

However, this technique is used for smal-size products. For large size

products, concept testing can be done by using a technique called

virtual reality. In this technique, a software package is used to design

the product on a computer. Prospective customers can operate the

simulated product in a simulated situation.

After completing the experience of using the physical products, or

plastic models or, simulated products, the users and the key decision-

makers in prospective organizations are interviewed and asked

questions as suggested in below.

Do you understand the concept of a pallet truck ?

What are the major benefits of manual and electric pallet trucksrespectively ?

Which of the three product concepts you liked most? Why ?

Are the pallet trucks similar or different to the products currently

used by you ?

What improvements do you suggest in the pallet truck's features

? For what uses would you prefer the manual and the electric

pallet trucks ?

What would be the reasonable price to charge for the pallet

trucks ?

Would you buy the mannual, or electric, or both the pallet trucks

?


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The answers to the questions will help the company decide which

product concept has the strongest appeal from the prospective

customers. It will help the company's management to generate a lot

of information for taking decisions.

BUSINESS ANALYSIS

The purpose of business analysis is to develop an estimated

projections of the sales, costs, and profitability of the proposed new

product over 5-7 years. It is a detailed analysis in terms of (a)

required investment in plant, equipment, working capital, and market

development ; (b) market potential, sales forecast, customer and

competitive analysis ; (c) costs of product development,

manufacturing and marketing the product ; (d) likely price levels,

profitability and return on investment, and so on.

It is not a right decision to assign the task of business analysis tothose persons who have either proposed the new product idea or who

are advocating its acceptance, because of their excessive optimism

or having vested interest. Either management consultants or the

corporate planning staff, who have experience and skills in strategic

planning, marketing, finance, engineering and production, could be

given the task of business analysis. If the projected sales and profitssatisfy the company's long-term objectives or goals, then the new

product concept moves to the next stage of product development. It

should be noted that the projections made in business analysis may

be revised if new information comes in.

PRODUCT DEVELOPMENT


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Product development is a process in which engineers and technicians

create the desired product. The R & D department develops one or

more prototypes of the product concept. The development of a

prototype will confirm or negate its ability to produce the product

within the cost estimates and the performance parameters previously

established. The marketing department must inform the R & D

department about the needs of the customers in terms of product

performance and the cost estimates, based on the customer's

reactions on the concept testing carried out earlier. The R & D

department's chalenge is to achieve both the performance and the

cost objectives.

In today's fiercely competitive market, developing a new product or a

new technology is not enough. how fast the new product is developed

and launched in the market is very critical. Conventional development

engineering cycle consists of ;Design Process Engineering Tooling Manufacturing

Final product Testing

(if there is no failure during testing). The possibility of reducing this

cycle to half and for speeding up the development, a concept of

concurrent engineering is practice. It uses hi-tech computer hardwareand software tools, in conjunction with high speed satellite

communication to design, test, process engineer, manufacture tolling,

and so forth, simultaneously instead of in a long sequence. All this is

done to ensure that new products are developed and launched in the

market before the competitors.


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MARKET TESTING

In industrial marketing, market testing is done by using different

methods. These are alpha and beta testing, introduction of the new

product at trade shows, testing in distributor/dealer showrooms, and

test marketing. The choice of the method of testing depends on the

size and cost of the product in a short span of time.

Alfa testing consists of testing the products which are high priced or

new technologies, internally in the company. The product testing is

done to evaluate the performance parameters and operating costs. If

the results of an in-company testing are satisfactory, the company will

go for the second stage of beta testing at the potential users sites.

The sales marketing people should identify the user firms who would

permit confidential testing of the new product at their factories. The

marketing and technical people should observe how the user firms

use the product, if any problems are faced while using the newproduct, and interact with the user firm's technical and other

members. If the number of users of the new product, and interact with

the user firm's technical and other members. If the number of users of

the new product are small, product testing at relatively few users sites

may suffice. However, in case of large number of industrial users, the

results of product testing at few users site may be difficult togeneralise.

Another method commonly used is to introduce the new product at

trade shows, where large numbers of prospective buyers are exposed

to the new product. The company can find out potential customers

reactions, purchase intentions, or placement of orders. The

disadvantage is that the new product gets exposed to the


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competitors. The company should be ready to launch the new product

within a short duration of time.

If the new industrial product is sold through the distribution channel, it

can be tested at distributors or dealers show-rooms or display rooms.

This method uses the normal selling situations and hence, can give

useful information on customers attitudes, preferences, and actual

sales. However, the company should be ready to execute the orders

within a reasonable time.

If market testing of the new product gives adequate information to

decide on launching the new product, the company management

decides to go ahead with commercialisation.

COMMERCIALISATION

A product is commercialised or launched when it is introduced to atarget market. It involves implementation of the various activities

developed in an action plan as a part of the marketing plan. The

activities include training of sales force, product catalogues, price

lists, introductory advertisements, adequate stocks at the company

warehouses and/or with dealers/ distributors, customer service, and

so on. In order to ensure proper coordination and timely completion ofmany activities involved in launching a new product, industrial

marketers can use critical path method (CPM) network technique.

The marketing activities have to be synchronised with production to

ensure market entry timing.

The new product marketing plan should clearly define the timing of

market launch, marketing objectives and goals, geographical strategy


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(whether to launch the new product in local, regional, national, or

international markets), the target market segments, and the marketing

mix strategies. An effective feedback system from the market is

needed to take timely corrective actions.


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A Practical aspect of Marketing prospect of Sudha

Cow Milk in Xyz Route No.13&15 with reference

to TIMUL.

CHAPTER - 4


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A Practical aspect of Marketing prospect of Sudha

Cow Milk in Xyz Route No. 13&15 with reference

to TIMUL.

I had the privilege of working with reputed company Tirhut Dugdh

Utpadak Sahkari Sangh Ltd., (TIMUL), Xyz for providing me the

opportunity to undergo the training programme in different areas of Xyz

Area. During my training I had interviewed 100 respondents for

questionnaire of Sudha Balusahi. The Result is as follows :-

(i) Sudha is a trusted brand name spread in Bihar in terms of milk &

dairy products. How do you rate the product Balushahi ?

Total No. of Respondents = 100

Average 20

Good 30

Very Good 50

It is evident from above Pie Chart that most of the respondents i.e. 50%

are believe, Sudha is a trusted brand name in Bihar.

20%

30%50%

Average Good Very Good


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2. Sudha Balushahi is comparatively better than all other local

Balushahi in market ?


Yes 90

No 10

It is evident from above Pie Chart that most of the respondents i.e 90% are

said about Sudha Balusahi is better than other.

90%

10%

Yes

No


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3. How do you like the taste of Balushahi ?


Average 25

Good 35

Very Good 40

25%

35%

40%



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4. What should be the preferable size of Balushahi ?


500gm 60

1 Kg. 40

60%

40%500gm

1 Kg.


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5. Which mode of delivery would you like ?


Milk Booth 60

Every Shop 40

60%

40% Milk Booth

Every Shop


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6. How often do you consume Balushahi ?


Everyday 30

Twice a day 10

Once a week 60

30%

10%

60%

Everyday Twice a day Once a week


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7. Which medium do you think would be the most effective for

advertising Sudha's Balushahi ?


Print Media 50

Electronic 20

Outdoor 30

50%

20%

30%

Print Media Electronic Outdoor


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8. In your opinion what should be the price of Sudha's Balushahi ?


Below Rs. 90/- 25

Rs. 90/- 45

Above 90/- 30

25%

45%

30%

Below 90/- Rs. 90/- Above 90/-


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9. Is Balushahi hygienic ?


Yes 90

No 10

90%

10%

Yes

No


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10. How do you like the services of the company ?


Average 35

Good 45

Very good 20

35%

45%

20%



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11. The durability of the tin case Balushahi has become 3 months. Do

you agree?


Yes 80

No 20

80%

20%

Yes

No


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12. How do you like the quality of Balushahi ?


Average 10

Good 30

Very good 60

10%

30%60%



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13. Are you satisfied with the tin pack ?


Yes 90

No 10

90%

10%

Yes

No


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14. Are you satisfied with the product ?


Yes 90

No 10

90%

10%

Yes

No


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Conclusion & Suggestion

CHAPTER - 5


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Conclusion

Tirhut Dugdh Utpadak Sahakari Sangh Ltd. is one of the best dairy in Bihar

today. The dairy is functioning properly. Its brand name is SUDHA. Sudha

dairy is actually pride of Bihar. The Products of TIMUL Dairy are marketed

under the Brand Name of Sudha. The Dairy has large Network of Retailers

to sell its products.

Xyz Dairy is an Unit of "COMFED" COMFED is owned by State

Government of Bihar. COMFED is co-operative milk producers federation

limited. Bihar state co-operative milk producers federation limited is

established in 1983.

However the following remarks positive and negative can be placed about

TIMUL. Particularly in the field of Marketing.

I had interviewed 100 respondents for questionnaire of Sudha Balusahi:-

(i) In 100 respondents 20 respondents average, 30 respondents good,

very good trusted brand name in Bihar.

(ii) In 100 respondents, 90 respondents said that Sudha Balushahi is

comparatively better than other local brand.(iii) Among 100 respondents, 25 respondents liked taste as average, 35

respondent as good taste of Sudha Balushahi.

(iv) In 100 respondent 60 respondent prefer 500gm. & 40 people prefer

1 Kg. pack size of sudha Balushahi

(v) In 100 respondents 60 respondents prefer milk booth of delivery and

40 people prefer every shop.


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(vi) In 100 respondents 60 respondents consume once a week & 30

respondents everyday.

(vii) In 100 respondents 50 respondents wants media should be Print

Media and 20 wants to electronic media.

(viii) In 100 respondents 90 respondents says Balushahi is hygienic and

10 respondents says unhygienic.

(ix) In 100 respondents 45 respondents the service of the Sudha is

good, 20 respondents says very good service of Sudha.

(x) In 100 respondents, 80 respondents says durability of tin case has

become 3 months and 20 respondents are not agree.

(xi) In 100 respondents 60 respondents says the quality of Balushahi is

very good and 30 respondents said good quality of Sudha Balushahi.

(xii) In 100 respondents 90 respondents are satisfied with tin pack of

Sudha Balushahi.

(xiii) In 100 respondents 90 respondents are satisfied with the SudhaBalushahi product.

It is clear from data that 60 respondents like 500 gm pack of Sudha

Balushahi and people are more interested in it because it depend on the

family size. Most of the family size are small, it not possible to buy 1 Kg.pack daily and consume it. So people prefer 500gm. pack size of Sudha

Balushahi.

*******


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SUGGESTIONS

As we know that Tirhut Dugdh Utpadak Sahakari Sangh Ltd. is well known

and good milk producing unit in Bihar. Every good organisation have some

demerits, which can eliminated through study of different organisational

factor to improve the organisational image and status.

The researcher like to given following suggestion which may help the

organization in improving its performance :-

(i) To Increases the sale of Sudha Balusahi, advertisement should be

more effective.

(ii) The packing should be more effective.

(iii) The company should arrange social as well as cultural programmes

in the Sales territory.

(v) Price should be reasonable.

(vi) The company should do more packaging of 500gm of Sudha

Balushahi.

*******


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BIBLIOGRAPHY

BOOKS :

1. Principle of Management : Peter Druker

2. Marketing Management : Philip Kotler

3. Advertising Management : Chunawala

4. Sales Management : Still & E.W.Candiff

MAGAZINES & NEWS PAPERS

1. Time of India

2. Hindustan

3. Economic Times.


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QUESTIONNAIRE FOR CONSUMER

Name :..............................................................................................

Address :

.........................................................................................................................................................................................

......

1. Sudha ia a trusted brand name spread in Bihar in terms of milk &

dairy products. How do you rate the product Balushahi ?

(a) Average (b) Good (c) Very Good

2. Sudha Balushahi is comparatively better than all other local

Balushahi in market ?

(a) Yes (b) No

3. How do you like the taste of Balushahi ?


4. What should be the preferable size of Balushahi ?

(a) 500 gm (b) 1 Kg.

5. Which mode of delivery would you like ?(a) Milk booth (b) Every Shop

6. How often do you consume Balushahi ?

(a) Everyday (b) Twice a day (c) Once a

week

7. Which medium do you think would be the most effective for

advertising Sudha's Balushahi ?

(a) Print Media (b) Electronic (c) Outdoor

8. In your opinion what should be the price of Sudha's Balushahi ?

(a) Below Rs. 90/- (b) Rs. 90/- (c) Avove 90/-

9. Is Balushahi hygienic ?

(a) Yes (b) No

10. How do you like the services of the company ?



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11. The durability of the tin case Balushahi has become 3 months. Do

you agree?

(a) Yes (b) No

12. How do you like the quality of Balushahi ?


13. Are you satisfied with the tin pack ?

(a) Yes (b) No

14. Are you satisfied with the product ?

(a) Yes (b) No

15. Suggestions for improvement ?

.......................................................................

Thanks for participating

Signature of Consumer Signature of Surveyor

Documents

MBA PROJECT OF VINOD NIRALA.docx