CHAPTER-1

INTRODUCTION

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1.1 INTRODUCTION

In today’s time there is serve competition in every field and the milk industry is also

facing a lot of competition a we know competitor can pause some threats to the

organization as well as they provide us some opportunities. An organization can store

over its competition either by enhancing the quality of the products, reducing the price,

heavily spending promotional activities or having a effective distribution network.

The project was concerned with the tetra packs of verka. Flavored milk, flavored lassi,

Mango Rassila and kheer were the products of the verka coming in the tetra packs. These

tetra packs were increasing the self-life of the products. These looked good in the

packing and were good for the heath. This project was concerned to find out how many

retailers and citizens were satisfied with tetra packs of verka. How many retailer sale the

products of verka and how many consumers use verka.? Which type of the improvement

was required by the consumers and the retailer and what were the reasons behind the use

and no use of the tetra packs?

The project was concerned to find out which were the other competitors of the verka in

Gurdaspur. The citizens having awareness regarding the tetra packs of the verka and

which were the products used by the consumers and how often consumer use the tetra

packs of the verka. How much they were satisfied with the tetra packs of verka? In which

factors the citizens had the complaints and want improvement? How much margin was

offered by the others companies to the retailers? Which tetra packs of verka were kept by

the retailers. There were how many distributors of tetra packs, were they providing

supply in time? if late then how much late? How much they were satisfied by sale of the

verka.? How much quantity they sale? Finding the reasons why they were not selling the

products of the verka? Or they were having any complaint. Any retailers want to keep the

products of verka.?

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1.2 INDUSTRY PROFILE

1.2.1 Indian Dairy Industry

Dairy is a place where handling of milk and milk products is done and technology refers

to the application of scientific knowledge for practical purposes. Dairy technology has

been defined as that branch of dairy science, which deals with the processing of milk and

the manufacture of milk products on an industrial scale.

In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing

line between farm and factory-scale production. Various factors contributed to this

change in these countries, viz. concentration of population in cities where jobs were

plentiful, rapid industrialization, improvement of transportation facilities, development of

machines, etc. whereas the rural areas were identified for milk production, the urban

centers were selected for the location of milk processing plants and product

manufacturing factories. These plants and factories were rapidly expanded and

modernized with improved machinery and equipment to secure the various advantages of

large-scale production. Nearly all the milk in the U.S.A. before 1900 was delivered as

raw (natural) milk. Once pasteurization was introduced, it developed rapidly. Mechanical

refrigeration helped in the rapid development of the factory system of market milk

distribution.

In India, dairying has been practiced as a rural cottage industry since the remote past.

Semi-commercial dairying started with the establishment of military dairy farms and co-

operative milk unions throughout the country towards the end of the nineteenth century.

During the earlier years, each household in those countries maintained its ‘family cow’ or

secured milk from its neighbor who supplied those living close by. As the urban

population increased, fewer households could keep a cow for private use. The high cost

of milk production, problems of sanitation etc., restricted the practice; and gradually the

family cow in the city was eliminated and city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk over regular routes

in the cities. This was the beginning of the fluid milk-sheds which surround the large

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cities of today. Prior to the 1850s most milk was necessarily produced within a short

distance of the place of consumption because of lack of suitable means of transportation

and refrigeration.

The Indian Dairy Industry has made rapid progress since Independence. A large number

of modern milk plants and product factories have since been established. These organized

dairies have been successfully engaged in the routine commercial production of

pasteurized bottled milk and various Western and Indian dairy products. With modern

knowledge of the protection of milk during transportation, it became possible to locate

dairies where land was less expensive and crops could be grown more economically.

In India, the market milk technology may be considered to have commenced in 1950,

with the functioning of the Central Dairy of Aarey Milk Colony, and milk product

technology in 1956 with the establishment of AMUL Dairy, Anand. The industry is still

in its infancy and barely 10% of our total milk production under goes organized handling.

1.3 HISTORY OF INDIAN MARKET MILK INDUSTRY

Beginning in organized milk handling was made in India with the establishment of

Military Dairy Farms.

Handling of milk in Co-operative Milk Unions established all over the country on

a small scale in the early stages.

Long distance refrigerated rail-transport of milk from Anand to Bombay since

1945

Pasteurization and bottling of milk on a large scale for organized distribution was

started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961),

Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development

all over India. These were taken up with the dual object of increasing the national

level of milk consumption and ensuing better returns to the primary milk

producer. Their main aim was to produce more, better and cheaper milk.

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1.3.1 Operation Flood

 The transition of the Indian milk industry from a situation of net import to that of surplus

has been led by the efforts of National Dairy Development Board's Operation Flood.

Programmed under the aegis of the former Chairman of the board Dr. Kurien. Launched

in 1970, Operation Flood has led to the modernization of India's dairy sector and created

a strong network for procurement processing and distribution of milk by the co-operative

sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over

220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy

cooperatives in the milk shed areas of the village, and to link them to the four Metro

cities, which are the main markets for milk. The efforts undertaken by NDDB have not

only led to enhanced production, improvement in methods of processing and

development of a strong marketing network, but have also led to the emergence of

dairying as an important source of employment and income generation in the rural areas.

It has also led to an improvement in yields, longer lactation periods, shorter calving

intervals, etc through the use of modern breeding techniques. Establishment of milk

collection centers and chilling centers has enhanced life of raw milk and enabled

minimization of wastage due to spoilage of milk. Operation Flood has been one of the

world's largest dairy development programmes and looking at the success achieved in

India by adopting the co-operative route, a few other countries have also replicated the

model of India's White Revolution.

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Production in India

Year Production (Million Tones) Per Capita Availability

(gms/day)1993-94 55.7 178

1994-95 58.0 182

1995-96 60.6 187

1996-97 63.8 194

1997-98 66.2 197

1998-99 69.1 202

1999-00 72.1 207

2000-01 75.4 213

2001-02 78.3 217

2002-03 80.6 220

2003-04 84.4 225

2004-05 86.2 230

2005-06 88.1 231

2006-07 90.7 229

2007-08 94.6 220

2008-09 96.2 224

1.4 MAJOR COMPITITORS OF MILKFED PUNJAB

1.4.1 Amul

Amul was formally registered on December 14, 1946. The brand Amul, sourced from the

Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in

Anand. Some cite the origin as an acronym to (Anand Milk Producers Union

Limited).The Amul revolution was started as awareness among the farmers. It grew and

matured into a protest movement that was channeled towards economic prosperity.

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1.4.2 Gujarat Cooperative Milk Marketing Federation

In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert

surplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plant

to manufacture cheese and one to produce baby food were added. Subsequent years saw

the addition of more plants to produce different products. In 1973, the milk

societies/district level unions decided to set up a marketing agency to market their

products. This agency was the Gujarat Cooperative Milk Marketing Federation

(GCMMF). It was registered as a co-operative society on 9 July 1973.

1.4.3 Nestle

Nestle relationship with India dates back to 1912, when it began trading as The Nestlé

Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished

products in the Indian market.

After India’s independence in 1947, the economic policies of the Indian Government

emphasized the need for local production. Nestlé responded to India’s aspirations by

forming a company in India and set up its first factory in 1961 at Moga, Punjab, where

the Government wanted Nestlé to develop the milk economy. Progress in Moga required

the introduction of Nestlé’s Agricultural Services to educate advice and help the farmer

in a variety of aspects. From increasing the milk yield of their cows through improved

dairy farming methods, to irrigation, scientific crop management practices and helping

with the procurement of bank loans. Nestlé set up milk collection centers that would not

only ensure prompt collection and pay fair prices, but also instill amongst the community,

a confidence in the dairy business. Progress involved the creation of prosperity on an on-

going and sustainable basis that has resulted in not just the transformation of Moga into a

prosperous and vibrant milk district today, but a thriving hub of industrial activity.

Nestlé has been a partner in India's growth for over nine decades now and has built a very

special relationship of trust and commitment with the people of India. The Company's

activities in India have facilitated direct and indirect employment and provides livelihood

to about one million people including farmers, suppliers of packaging materials, services

and other goods.

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The Company continuously focuses its efforts to better understand the changing lifestyles

of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and

Wellness through its product offerings. The culture of innovation and renovation within

the Company and access to the Nestlé Group's proprietary technology/Brands expertise

and the extensive centralized Research and Development facilities gives it a distinct

advantage in these efforts. It helps the Company to create value that can be sustained over

the long term by offering consumers a wide variety of high quality, safe food products at

affordable prices.

Nestlé India manufactures products of truly international quality under internationally

famous brand names such as NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT,

BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also

introduced products of daily consumption and use such as NESTLES Milk, NESTLÉ

SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita.

Nestle India is a responsible organization and facilitates initiatives that help to improve

the quality of life in the communities where it operates.

Today, Nestle is the world's largest and most diversified food company. It has around 2,

50,000 employees worldwide, operated 500 factories in approximately 100 countries and

offers over 8,000 products to millions of consumers universally.

1.4.3 MOTHER DAIRY

Since 1974 millions of consumers in Delhi have been walking up to the goodness and

freshness of mother dairy milk. Mother Dairy has established itself as an integral part of

their lives be it in terms of providing pure wholesome milk or rich, delicious milk

products.

The drop logo, used by cooperatives across the country is a symbol of purity and

freshness, qualities which Mother Dairy over the years has come to be closely associated

with.

Available at a store nearest to you be it your local kirana store, the largest supermarkets

in the city or there very own exclusive milk shops .is it any wonder that mother dairy

enjoys almost 75% of the market share for branded milk in Delhi and more importantly

that special place in every life.

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1.4.3.1 Products of Mother Dairy

1. Milk

2. Ice- Cream

3. Ghee

4. Butter

5. Cheese

6. Dahi

7. Lassi

8. Flavored Milk

1.5 MILK FED

Historical background

The Punjab State Cooperative Milk Producers’ Federation limited popularly known as

Milk fed Punjab came into existence in 1973 with a twin objective:

To providing remunerative milk market to the Milk Producers in the State by

value addition and marketing of produce on one hand and

To provide technical inputs to the milk producers for enhancement of milk

production on the other hand.

Although the federation was registered much earlier, but it came to real self in the year

1983 when all the milk plants of the erstwhile Punjab Dairy Development Corporation

Limited were handed over to Cooperative sector and the entire State was covered under

Operation Flood to give the 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

Federation as an Apex Body at State level.

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MILKFED Punjab has continuously advanced towards its coveted objectives well

Defined in its by laws. A place is called verka. For away from the din and the madding

pace of the city there rests, near Amritsar, a sleepy village is called verka. It is a prefect

picture of health and happiness. It is the first milk plant of verka.

1.5.2 Number of group companies & products manufacture/offered by them

Milkfed has a strong value addition base addition base though its 11 District cooperative

milk producer’s unions and 40 chilling capacity of about 15 Lac liters per day, all of

whom have attained self sufficiency or are on the thresh-old of attaining it.

Ghee, S.M.P., W.M.P. Butter, Paneer, Milk-Cake & S.F.M

Raseela, Ice-Cream, Pinni, Milk Cake

1.5.3 Mission of Corporate

To become the market leader in market of milk and milk products.

1.5.4 Objective

Direct approach to consumer and producer and to avoid middleman. (By the

farmers, of the farmers and for the farmer’s organization.)

1.5.5 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. This has resulted into tremendous achievements in

all fields.  

1.5.6 Turnover

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The annual turnover of Milkfed which was Rs.1150 crores in the year 2009-10 has hit the

level of Rs.1389 crores in the year 2009-10. Turnover (Rs. in Crores)  

1.5.7 Marketing of Milked

Milked is a serving nation wide consumer through its net work of Regional offices and

strong Distribution channels. Milkfed markets a wide Variety of Products which include

liquid milk, skimmed  milk powder, whole milk powder, infant food, ghee,  butter, 

cheese, lassi, SFM, Ice Cream, Malted food  Verka  Vigour etc. etc. The annual turn over

of Milkfed has crossed Rs 668 crores. Verka is a brand leader in milk powders

particularly in northern eastern sectors and SMP marketed by Milkfed commands a

premium price over powders manufactured by competitors who include multi-national as

well as private trade and other Cooperative Federations. Now Verka has arrived on the

sheer strength of its quality, freshness and purity. And of course, its home made taste.

And all this, at the most affordable prices. To people today, Verka is the part of their

daily lives.

1.6 EXPORT OF MILK PRODUCTS

With competition in the national market zooming up efforts to export products have been

made. Milkfed has established its ghee market in Middle East Market. Verka ghee

reaches all the emirates and is available almost in all super markets. The penetration is so

deep that verka ghee is available in far off labor camps.  In addition to ghee, SMP was

also exported to Asian Countries like Philippines, Bangladesh and Sri-Lanka. Verka Malt

Plus (Malted Milkfood) has also been exported to Bangladesh.

1.7 QUALITY ASSURANCE PROGRAMME

Quality Assurance Programme (QAP) which is a part and parcel of Dairy Plant

Improvement Programme (DPIP) was taken up in Gurdaspur Milk Union with the

Technical guidance from NDDB. The main objective of the programme is to

improve efficiency of Plants  coupled with  loss management to bring down the

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cost of  production,  im-prove  the  quality  of milk and milk  products 

manufactured  to ameliorate  the general hygienic and house keeping standards.

1.8 MILKFED’S NETWORK

MILKFED has its milk unions in many districts of Punjab. These district unions are:

i) Amritsar ii) Bhatinda iii) Bassi Pathana

iv) Chandigarh v) Faridkot vi) Ferozepur

vii) Gurdaspur viii) Hoshiarpur ix) Jalhandhar

x) Ludhiana xi) Patiala xii) Ropar

xiii) Sangrur

The plants in all these unions are being run under the VERKA

1.9 ORGANISATION PROFILE

1.9.1 Capacity Of Gurdaspur Milk Plant

The plant was designed to handle 150,000 liters per day of milk drying and 10, 0000

liters per day as liquid supply. Since inception of the plant. There was no charge in the

handling capacity until April 2004. Due to good potentiality of milk in area, efforts were

always made to enhance its handling capacity to 1, 00,000 liters milk per day. Under the

guidance of Milk Federation Punjab the Registrar Cooperative Societies Punjab had

sanctioned a sum of Rs.140 core from the cooperative development fund. These funds are

being utilized at the earliest. On expansion, the plant will handle 1, 00,000 liters of milk

per day. The refrigeration capacity will also increase to 1.5 lacs liters of milk per day.

At present because of loan from Cooperative societies the handling capacity of Milk in

Milk Plant Gurdaspur is 1, 00,000 liters per day and freezing capacity of milk is 1.5 lacs

liters per day.

1.9.2 Controlling Authority

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The milk plant Gurdaspur was originally setup by Punjab Government but in 1960 the

control was passed on the Punjab Diary Development corporation (PDDC) &

subsequently its management was passed to Milkfed w.e.f 9 th April 1983. The

Gurdaspur District cooperative Milk Producers union limited was registered on 28 th

April. Union has started its business on 1st July 1988 with the complete control of

plant to the Union. However all the assets and liabilities of the Punjab.

Government and Punjab Development Corporation (PDDC) at Milk Plant, Gurdaspur

was transferred to Union w.e.f 1st April 1994. The Union has an elected Board and

Managing Director is on deputation from Milkfed. The officers in the cadre of deputation

from Milkfed.

1.9.3 Milk Procurement at Milk Plant

The procurement system of this milk plant is well organized. Milk procurement is made

though Milk Producers Co-operative societies which are spread over whole of the

Gurdaspur. Under these societies there are milk producer members. These members are

chosen by village level societies from each village. These members choose a secretary

who collect milk from milk producers and sell to the plant and earn some percentage of

commission. Milk is collected twice a day.

Up to June 30, 2002 Milk Plant Gurdaspur has 738 functional societies out which 493

are working.

While collection of milk, the fat contents of milk are properly tested in order the check

the quality of Milk because the price is paid according to fat contents. CERBER &

MILKOTESTS are the tests applied to test protein and fat contents in milk.

1.9.4 Chilling Station

There are three chilling station working under this plant; these are

Batala, Kahunwan, and Tugalwada.

The motive for opening these stations is to save the milk. The life of the milk is only five

hour after it is collected. Some villages are more away from Gurdaspur plant &

transportation time is much higher than this time. So these chilling stations are opened to

chill the collected milk. So the life of milk is increased against 5 hour.

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1.9.5 Air Water Pollution Control

The pollution created by boiler’s smoke & effluent discharge is checked as per the norms

of the. Punjab Pollution Control Board, Necessary. Device have been installed with the

start of these equipments the BOD of treated water being discharged into Municipal

sewer is less than 30 i.e. well within norms. The treated water is used for irrigation

purpose on the land of Milk Plant. Thus reducing pumping of water from earth strata. The

cost of this is 27, 00,000.

1.9.6 General Manager

G.M. is the topmost authority in particular milk plant. He is the in-charge of affairs of

union in process provides due price to milk producers and assures good quality to the

consumer at the most reasonable price.

G.M. who is duly assisted by mangers of various line functional departments plus staff to

carry out his task and any problem related to different departments are dealt by him.

The name time periods of the G.M. are as follows:-

1. Dr. Virban Singh 1984 — 89

2. S. Surjit Singh Bhullar 1989 — 90

3. Sh. K.K. Bali 11-06-90 to 04-10-90

4. S. Amrik Singh Dec 1990 to Dec 1993

5. Sh. G.S Dhari Dec. 1993 — 94

6. S. Amrik Singh 01-09-1994 — 98

7. Sh. S.K. Mahajan 13-09-94 — 98

8. S. Amarjit Singh 1998-2002 — 31-03-2002

9. S.R.S. Kalra 01-04-2002 -- 31-03-2003

10. S. Kuldeep Singh 1-04-2004 – till now

The aim of marketing is to understand the needs of consumer and provide the market

with appropriate products to fulfill those needs. Milk plant, Gurdaspur has not a separate

Marketing of products is done by sale department. The motto of sales is not just selling

the products and fulfills consumer needs but making consumer crazy about Verka.

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SALES DEPARTMENT HIERARCHY

Manager (Sales)

Supervisor

Field 1 Sales Field 1 Sales

RepresentativeRepresentative

(Out door sales) (City supply)

Clerk

The overall marketing is controlled by Milkfed, Chandigarh but all the dispatches are to

be made by Milk Plant. Sales department appoints agents, which are also called as

Dealers for supply of Milk products. At present city supply is done though 24 agencies

and overall supply is done through 60 agencies.

Verka Milk and Milk Products are also sold through Verka Milk Bars. Milk bars of the

Gurdaspur Milk Union are categorized as under:-

1. Milk bars owned and managed by milk unions.

2. Milk bars on rent and managed by milk unions.

3. Milk bars owned by Union and managed by private agencies (licensee).

Milk bars run on two shifts basis. One of the office staff is responsible for deploying staff

in case of leave.

At present Verka Milk plant Gurdaspur has two Milk Booth, one in Gurdaspur city

for city supply and one is Pathankot.

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The overall delivery of milk is made through delivery trucks. The whole area is

divided into 9 routes for delivery of milk. These 9 routes involves 4 routes to

Pathankot, l to Gurdaspur city supply. 1 to Jammu 1 to Thene -Dam and 2 to

Batala cum Army.

Marketing of Milk products is done both by plant and the head office generally

these products are sold through dealers. The dealers supply the products to

different retailers and also sell them directly to consumer.

1.10 MARKETING MIX OF MILKFED

Product, price, place and promotion are the core components of marketing objective. So it

is essential to have complete knowledge of these aspects of an organization. So we

discuss these 4 points of Verka’s Marketing mix in detail.

1. Product Mix

There are 15 products of Verka Brand which are being manufactured at different Verka

Plant in Milk Plant Gurdaspur six Verka products are manufactured.

Milk, Ghee, Curd, Paneer, Kheer and Dry milk are being produced at Gurdaspur Milk

Plant other milk products like table butter. Processed Cheese, SFM, Lassi, Mango Rasela,

Ice Cream, etc. are being produced at sister concern plants of Mohali, Patiala and

Jalandhar.

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The following table shows various details of products composition products packing is

covered under price mix.

PRODUCT COMPOSITION

Product Composition

Full Cream Milk (FCM) 6.5% Fat + 9% S.N.F.

Standard Milk (SM) 4.5% Fat + 8% S.N.F.

Double Toned Milk

(DTM)

1.5% Fat 9% S.N.F.

Lassi Toned Milk + Water + Sugar = Curd

Kaju Pinni Milk+Fat+Wheat+Sugar+Sugi+Besan+Edible Oils +Flavor

Butter 80% (Min) Fat +16 Moisture+ 3% salt + 0.1% Max

Paneer 26.27% Fat + 45% Moisture + S.N.F.

Curd Toned Milk + S.N.F.

Pure Ghee 99-99.8% Fat 0.5% Moisture (Max)

Mango Rasela Water + Sugar + Mango Pulp + Citric Acid + Vitamin C.

S.F.M. Sugar + D.T.M.

W.M.P. 26%Fat + 26%Protein + 37%Lactose + 70%Mineral

S.M.P. Fat 0.5% (Max) + Moisture 5%

Milk Cake Fat (19%) (Min) + Sugar 26% (Max)

Ice Cream Fat 10% (Min) + Sugar 15% (Max)

2. Price Mix

Pricing Policy

The decision about the liquid milk pricing in taken by a Committee of the following

persons:-

1. Chairman of the Milk Union

2. One Board of Director

3. General Manager (Final Approval Authority)

4. Manager (Finance & Accents) and

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5. In-charge Sales & Marketing

The main criteria for pricing are the price charged by neighboring milk union &

profitability of the concern. The Gurdaspur market in quite price sensitive. Price payable

by market is also taken into consideration while fixing price is set in consonance.

Here under, the table is showing the prices of various products which are charged by

Verka milk plant Gurdaspur with basis rate, sales tax F.O.D. distributor margin retail

margin maximum retail price & milk bar price. Rates are listed according to packing in

the table.

3. Place Mix

Distribution channel

The Gurdaspur Milk Plant has a particular dispatch section which is response for

distribution of milk. The milk union has appointed private agencies who are also called as

dealers for supply of milk & milk production to ultimate customer. There are two types of

agencies one, which operate from structure.

Constructed & allotted by Municipal Corporation & second which operate from their own

shops. At present there are 24 dealers of Verka products in Gurdaspur city & 56 in

overall conferred.

Verka inspector or field sales representatives cover dealers. They visit different routes

everyday & collect demand of the dealers. These inspectors or field sales representative

distribution the Verka products directly to the dealer’s collection of payment for same are

also their reasonability.

Gurdaspur Milk Plant is increasing its private dealership and sale through it own milk bar

by providing good commission and competing with private dairies and other competitors

and by motivating its field staff. But some problems are undertaken to field staff.

1. Unsold milk is not accepted back in any case.

2. The spoilage if not genuine is not entertained.

3. The return of spoil milk will be accepted only if there is any mass compliant.

4. The leaked milk packets are taken only after quality check.

So the filed staff had to deal hardly in presence of old policies of sale and marketing.

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Transportations

Milk plant Gurdaspur use private transporters as well as union’s vehicle for supplying

milk products of Verka to dealers to the city Verka plant.

Floats a notice for hiring transportation. The tender which has least cost of transposition

is accepted. Dealers generally used their own transportation for supplying the Verka

products to different retailers though Auto Rickshaw etc.

4. Promotion Mix

Advertising

Being Government sector organization advertising is usually given a limited budget

which is 2 paisa by milk plant. Gurdaspur and 2 paisa by dealer. Some grant is given by

National Dairy Development Board (NDDB) also Verka dealers are provided with

banners, sign boards and Retail shops are painted as Verka Milk Products to advertise

Verka Products.

Sales Force

Field sales representatives or sales inspectors work as a sale force of the milk

plant Gurdaspur. They sell Verka products on their respective routes and also advertise

Verka product with their pained vehicles. Sales inspectors are also the eyes and ears of

Verka plant. They collect information about the demand of Verka products and Provide

useful information to sales department for boosting the sales of Verka product

Future Planing

In the future planning, there is a target to supply 90000 liters of Verka milk in Jammu and

its surrounding township. The same quantity of liquid pasteurized & vitaminsed milk is

also being supplied in the area of Chamba, Dalhousie and Dharamshala etc.

The future efforts are to improve for good production as well as manufacturing practices

which lead to milk no lead residue and less than I la/ml of SPM to meet the bench mark

specified in codex standard.

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An advertisement campaign is being organized though the followings for education and

awareness of Verka milk products to the consumers for quality in particulars:-

Animated advertisement boards at Batala and Gurdaspur.

Destruction of notebook stickers among children in school in public as well as

slum area to them aware of Verka milk & milk products.

Shop wall painting & glow sign boards are being affixed in various towns and

cities covered under the programme for public awareness.

1.11 DETAILS OF OPERATIONS

a) Procurement- The milk plant, Gurdaspur procure milk through co-operative

societies. At the present the plant has the 738 societies. Firstly milk is collected by

these societies then sent the milk to the milk plant Gurdaspur in two times, morning

and evening. The milk producers receive rate of milk from milk plant on the basis of

fat.There are three milk-chilling centers at Batala, Kahunwan, and Tugalwada. Firstly

milk is received at the chilling center and after chilling the milk. It is send to the milk

plant, the purpose to setup the center are that, the societies are for away from the milk

plant and milk is perishable in nature so to avoid the wastage of milk, the chilling

center were setup. Firstly milk is received in dock through tempo in higher basis of

routes.

There are 3 seasons of milk –

Flush, average and Lean.

The lean period is during April and July and this period supply of milk received

in less quantity.

The average is during August to November and in this period the supply of milk

received is average.

The flush is in winter and the milk is highly produced.

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b) Reception of milk- Reception of milk is done at the dock. Dock is like

a station. The milk plant has two Docks, firstly milk is reached in the huge

quantity, after this process milk is sent to the laboratory to find out fat and

S.N.F. contents, then milk cans are washed by the machines and again

these cans are kept in the carriers after this process tempo sheets are

prepared. The numbers of milk cans of buffalo and cows milk are recorded

on these sheets are sent to the societies for the information of quantity of

milk.

c) Processing All the received is passed on to the tank lying under the

weighing bowl. Then the milk is immediately chilled and pasteurized.

Pasteurization is a process which was found by Lous Pasteur. All the get

during pasteurization.HTST (High Temperature Short Time) technique is

followed where milk is immediately heated at 71’C, held for 16 seconds

and then chilled down immediately at 4’C. After regeneration to 17’C, or !

8’C, milk is sent to the required area for e.g. city supply, powder section,

ghee section etc. In fixed production where the cream is separated and

further process is carried on as required.

1.11.1 Market served Domestic/Foreign

The success of a concern lies not only in production, but also mainly in successful

marketing.

“Marketing is the process getting the right goods to the right consumers at

the right place at the right price”.

In Verka Milk Plant Gurdaspur three types of tetra packs and other products are

marked under the brand name “VERKA”, Gurdaspur milk plant is solely

responsible for the marketing of fluid milk products are marked by “the Punjab

state co-operative milk producers union ltd.”.

21

1.11.2 Marketing of tetra packs

In verka milk plant, Gurdaspur tetra packs are not manufactured here. The tetra

packs are making in the Chandigarh and also distribute by the verka milk plant,

Gurdaspur. All types of tetra packs are sale through distributors and any person

gets the supply direct from the verka milk plant Gurdaspur directly. There are two

only two distributors of tetra pack.

One distributor has to follows the followings rules:

1. He has to pay the all payment in cash. There is no any credit scheme.

2. The total margin is 8% for the distributor, 16 % for the retailers.

Return of tetra packs :Due to the expire time of tetra pack is 6 month, good

packing and fresh supply from Chandigarh there is no replacement of the tetra

packs.

Exports Milk union is famous all over the country and outside the country for its

quality of milk and milk products. It holds international quality certificates ISO

9002 and IS-15000 (HACCP). Due to these certificates its products are easily

acceptable in the international market. It export Ghee to Dubai but no any tetra

pack is export.

Other information

Products Manufactured and marketed by Milk Union, Gurdaspur

Milk plant, Gurdaspur produces a variety of products which are available in

different packing. Raw material for all these products is milk which procured

from milk producers.

Products manufactured by milk plant are:

1. Ghee

2. Butter

3. Skimmed Milk Powder(SMP)

4. Paneer

5. Dry milk

22

Besides these products milk plants sells various products procured from plants. It

charges commission on the sale of the products.These products are as under:

1. Flavored Milk

2. Flavored Lassi

3. Mango Rassila

4. Kheer

5. Kaju Pinni

6. Ice Cream

1.11.3 Aims of Milk Union

Every organization is formed for achieving some objectives. Setting of objectives and

aims serves as guidelines for excellent or smooth working of the concern. The verka milk

plant, GURDASPUR was constituted to fulfill the following aims.

1. To uplift social and economic status of the milk producers.

2. To develop dairy as an industry allied to agriculture.

3. To procure milk and execute marketing efforts so that milk producers get

good prices of their milk.

4. To provide better quality cattle feed at reasonable prices.

5. To increase the bargaining power of milk producers at their doorsteps.

6. To provide veterinary aids to animals of milk producers at their Doorsteps.

7. To create employment opportunities for rural youth by milk Production

activities.

1.12 MILK PLANT’S SALIENT FEATURES

Verka Milk Plant has certain salient features through which it is considered as top most

Milk Plant in Northern India. Some of the silent features are given below:

1. First Milk Plant In India to get ISO-9002 International quality Certification mark.

23

2. Milk procurement highest among all the Unions in the State.

3. Milk rate paid to the producers among all the unions highest in the state.

4. 100% Milk Producer’s Co-operative societies are in profit.

5. Milk procurement per society / per day highest among all the Unions in the state.

6. Aggregate profit of the societies in any year is the maximum among all the Unions in

the States.

7. Customer satisfaction and consistency in quality is the key thrust area of the

organization.

8. Number of A.I Cases maximum among all the Unions in the States.

9. Milk transportation cost lowest among all the Unions in the States

10. Number of sick animals treated highest among all the Union in the state.

11. Cattle feed sold to societies are maximum.

12. F.M.D vaccination maximum among all the Unions in the State,

13. Milk Chilling cost lowest among all the Unions in the State.

14. Capacity utilization is maximum on yearly basis.

15. Fuel cost per kg milk is lowest among all the Unions in the State.

16. Embryo transfer technology introduced in the field for the first time Northern India.

17. Electricity cost per Kg. Milk is lowest among all the Unions in the State.

18. Leading Unions to state cooperative development programmed to strengthen the

cooperative base at village level.

19. Annual profitability highest among all the Unions in the state.

ISO-9002, IS-15000(HACCP):- Milk Plant GURDASPUR is India’s first Milk Plant to

get this certificate of international quality standards. It is provided to a concern, which

has established specialization in quality and prices and able to use its full installation

production capacity.

24

IS-15000(HACCP):- Milk Plant GURDASPUR has also got these international quality

certificates, which allow it to sell its products at international levels. It actually called.

“International Standard-15000 (Hazard analysis and Critical Control Point).

1.13 ORGANIZATIONAL STRUCTURE

In the organization of milk plant, Gurdaspur, the test of management and direction of

subordinates of subordinates is divided according to the type of work involved. All

activities are grouped together according to the certain function like production,

marketing, finance, personal etc. and put under the charge of different persons. The

person in-charge of a function is a specialist in it and brings out the best in him.

The members of the milk societies select through the top management of Milk Plant.

Now the question arise that how the milk societies are formed. So firstly, the field staffs

of Milk Plant visits the various villages for encouraging people to make cooperative

department to purchase milk from villages. Minimum 35 members are required for

making a society. To become the member of the society a person has to pay Rs.10 as

membership fees and other purchase a share of Rs.1. At present there are 72500 members

of the milk societies. Organizational structure is a systematic combination of people

function and physical facilities. It constitutes a formal structure with defined authority

and clear responsibilities. Each and every person is given a job and then authority is

assigned to him for the job, he is made responsible for the job. The structure and process

by which a cooperative group of human beings the organizing structure aims at saying.”

EACH ONE FOR JOB AND JOB FOR EACH ONE” Organizational structure of milk

plant: Its board consists of 18 directors. They appoint General Manager and chairman.

Then there are different Departmental heads like Accounts Manager, Production

Manager, Marketing Manager & Purchase Manager etc. these heads have deputy

manager for there assistant. Then each department has different employees at

departmental level. Verka Milk Plant is well organized. It helps in efficient running of

concern.

25

Chapter II

Review of Literature

26

Review of literature

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 discussed

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 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 OGP

Chandersekaran (1996) 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

27

founded that favorable appreciation response was received from the customers. Study

also certifies that consumer behavior is unpredictable one in any kind of the market

Kathirvel (2007) 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

favorable appreciation response was received from the customers. Study also certifies

that consumer behavior is unpredictable one in any kind of the market.

Yadav (2008) 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.

Reddy (2009) 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.

28

Chapter - III

Need, Scope and Objectives

of the Study

29

3.1 Need of the study

In today’s time there is serve competition in every field and the milk industry is also

facing a lot of competition a we know competitor can pause some threats to the

organization as well as they provide us some opportunities. An organization can store

over its competition either by enhancing the quality of the products, reducing the price,

heavily spending promotional activities or having a effective distribution network.

The project was concerned to find out which were the other competitors of the verka in

Gurdaspur. The citizens having awareness regarding the tetra packs of the verka and

which were the products used by the consumers and how often consumer use the tetra

packs of the verka. How much they were satisfied with the tetra packs of verka? In which

factors the citizens had the complaints and want improvement?

3.2 Scope of the study

This study is limited to Gurdaspur and Pathankot city only.

3.3 Objectives of the study

Objectives of the study are as follows:

To analyze Market share of verka milk in comparison to competitor.

To study the perception of consumer at Distt. Gurdaspur regarding the

selected products of verka.

To study the preference of retailers regarding the selected products of

verka.

Selected products are:-

Flavored Milk

Flavored Lassi

Mango Rassila

Kheer

30

CHAPTER-4

RESEARCH

METHODOLOGY

31

.

RESEARCH METHODOLOGY

Research refers to a search for knowledge. This research defines the problems of retailers

and perception of citizens.Research comprises defining and redefining problems,

formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;

making deductions and reaching conclusions; and at last carefully testing the conclusions

to determine weather they fit the formulating hypothesis. It presents the research design,

sampling procedure, tools of investigation, collection of data and the limitations of the

study.

4.1 RESEARCH DESIGN

This research was descriptive and conclusion oriented research.

a) Descriptive Research:

The research was a descriptive research as it was concerned with specific predictions,

with narration of facts and characteristics concerning individuals, groups or situations.

b) Conclusion Oriented Research:

The research was conclusion oriented because this research aimed at determining the

perception of consumers and retailers preference towards verka products.

4.2 SAMPLING DESIGN

A sampling design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure the researcher adopts in selecting items for the

sample. The following factors have to decide within the scope of sample design:

4.2.1 Universe: Universe refers to the total of the units in field of enquiry. The universe

comprises of two parts as theoretical universe and accessible universe. The theoretical,

accessible and Target universe in the study is given below.

Theoretical Universe: It includes all the people who are using verka products

throughout the universe.

32

Accessible Universe: It includes all the people who are using verka products in

India.

Target Universe: Universe of the study included consumers and retailers in Distt.

Gurdaspur.

4.2.2 Sampling Frame: Sample frame refers from where the questionnaires are to be

filled. Our sample frame consists of consumers and retailers.

4.2.3 Sample Unit: In this research project sampling unit was the consumers and retail in

Gurdaspur district.

4.2.4 Sample Size: A sample of minimum respondents was selected. An effort was

made to select respondents evenly as regard their gender. The survey was carried out on

100 consumers and 50 retailers.

4.2.5 Sampling Techniques: The sampling techniques used are convenient technique

and simple random sampling technique.

Convenient Technique: A non-probability sampling technique that attempts to

obtain a sample of convenient elements. The selection of sampling units is left

primarily to the interviewer.

Simple Random Technique: A probability sampling technique in which each

element in the population has a known and equal probability of selection. Every

element is selected independently of every other element and the sample is drawn by

a random procedure from a sampling frame.

4.3 SOURCES OF DATA COLLECTION

There are two types of data sources. These were:

4.3.1 Secondary data:

Secondary data are those which have already been collected by someone else and which

have already been passed through the statistical process. In this research project

secondary source used were various books, magazines, journals and websites.

33

4.3.2 Primary data:

Primary data are those, which are collected afresh and for the first time, and this is

original in character. For the fulfillment of this research project the primary data was

collected through surveys. Survey was done personally with an appropriate structured

questionnaire consisting of close ended questions and statements based on likert scale.

4.4 DATA ANALYSIS

4.4.1 Tools of Presentation:

It means what all tools were used to present the data in a meaningful way so that it

becomes easily understandable. In this research tools used were tables and graphs.

4.4.2 Tools of Analysis:

In this research the tools of analysis used were Factor Analysis and Chi-Square Test

along with basic statistics i.e. Percentages and Average Mean.

4.5 LIMITATIONS OF THE STUDY

The present study has been carried out with the following limitations:

Inadequate Data: The data provided was not sufficient due to which the

generalizations cannot be made about the performance of verka.

Time and Cost factor: There was difficulty of timely availability of published

and relevant data which led to increase in cost.

Lack of Scientific Method: The lack of scientific training in methodology of

research was great impediment in the research program, which led to the delay of

research.

No Response by the Respondent: Problem occurred in some sensitive issues like

getting information about the financial position of the respondent.

These limitations were faced as they were an integral part of the research. However,

they did not affect the quality of analysis and presentation of the findings.

34

CHAPTER-5

DATA ANALYSIS

&

INTERPRETATION

35

Survey Results for the Consumer

Q1. Do you use the dairy products?

This question reveals how many respondents use dairy products.

TABLE 5.1- This table shows how many respondents use dairy products.

Attribute Number of Respondents Percentage (%)

Yes 100 100%

No 0 0%

Total 100 100%

Figure5. 1- Shows that all the respondents use dairy products.

Interpretation- Since only those respondents who use manufactured dairy products were

questioned, therefore number respondents who use dairy products was 100. A person who

was not using the dairy products was not considered.

36

Q 2- Which Company’s dairy products do you use? Please rank?

This question answer’s which company’s products are preferred by the consumers on first

number.

TABLE 5.2- This table answers which company’s products are preferred by the

consumers on first number.

Company Number of

Respondents

Percentage (%)

Verka 70 70%

Nestle 9 9%

Amul 7 7%

Reliance 14 14%

Total 100 100%

Figure 5.2- Answers which company’s products are preferred by the consumers on

first number.

37

Interpretation - This question was asked to know the market share of dairy company. In

which 70% of consumer have selected the Verka, 9% Nestle, 7% Amul and 14%

Reliance.

38

Q 3- Please tick the name of the products used by you?

This question reveals how many consumers use which type of tetra pack of verka.

TABLE 5.3- This table shows how many consumers uses which type of

Tetra pack of verka.

Product Number of Respondents Percentage

(%)

Flavored Milk 50 50%

Flavored Lassi 38 38%

Mango Rassila 7 7%

Kheer 5 5%

Figure 5.3- Shows how much consumer use which type of Tetra pack of verka.

Interpretation - The reason to ask this question was only to get the taste of the consumer

regarding the selected products of the Verka among above four most preferred tetra pack

is flavored milk 50% and least preferred is Kheer 5% only.

39

Q 4 – How often do you use the products of verka? Mentioned below

This question reveals how many consumers uses which type of tetra pack of verka how

often.

TABLE 5.4 - This table shows how many consumers uses which type of

Tetra pack of verka how often.

Products Once in

a week

More than once

in a week

Once in a

month

More than once

in a month

Occasi

-onally

Flavored milk 17 14 13 4 10

Flavored lassi 7 13 6 5 8

Mango rasilla 3 1 1 0 2

Kheer 0 0 1 0 3

Figure 5.4 - Shows how many consumers’ uses which type of tetra pack of verka

how often.

Interpretation - The reason to ask this question was to check the consuming pattern of

the consumer here again the flavored milk is most popular in a week 17 consumer want to

consume, 7 consumer flavored lassi, 3 mango rassila and nobody is interested in kheer. In

overall from this question we can conclude that flavored milk again most popular and

consumption is more in over all options.

Q 5- How much quantity do you use approximately in a month?

40

This question reveals how much quantity of tetra pack of verka used by the consumers in

the one month.

TABLE 5.5- This table shows how much quantity of tetra pack of verka used by the

consumers in one month.

Tetra pack 0-6

Packets

6-12

Packets

12-18

Packets

18-24

Packets

24--30

Packets

>30

Packets

F milk 45 10 2 3 2

F lassi 27 7 3 1 3

M Rassila 5 1 1

Kheer 4 1

Figure 5.5- Shows how much quantity of tetra pack of verka used by the consumers

in the one month.

Interpretation - The propose was to know about the exact quantity consumption of the

tetra pack by dividing into six different options starting from 0-6 to more than 30. 45

consumer were those who take 0-6 packets in a month, 27 were those who consume lassi,

5 were those who were interested in consuming mango rassila and only 4 consumer had

replied for kheer.

Q 6 What do you perceive of the verka products?

41

This question reveals satisfaction level of consumers with the factors, which were related

to buying behavior.

Table 5.6 Shows satisfaction level of consumers with the factors, which were related

to buying behavior.

FACTORS Response (%age)

Price 25

Quality 45

Brand 5

Taste 15

Availability 10

Figure 5.6 Shows satisfaction level of consumers with the factors, which were related

to buying behavior.

Interpretation - The purpose of asking this question was to check the important factor of

the satisfaction. In which 45 consumer were satisfied with the product because of quality,

25 with prices, and 15 with taste.10 with the availability and only 5 who were satisfied

due to the brand name of Verka.

42

Q 7 – How much are you satisfied with verka ‘s products mentioned below?

This question reveals satisfaction level of the consumers with the tetra pack of verka.

TABLE 5.7- This table shows satisfaction level of the consumers with the tetra pack

of verka.

Tetra packs Respondent Percentage (%)

Flavored milk 52 52

Flavored lassi 37 37

Mango rasilla 8 8

Kheer 3 3

Figure 5.7 Shows how many respondents were satisfied with of tetra pack of verka.

Interpretation - The propose of asking this question was to check the satisfaction level

regarding various selected by providing them five option out of only the high satisfied

was taken for the conclusion of the result product 52% were high satisfied, 37% with

lassi, mango rasilla 8% and with Kheer only 3%.

43

Q 8 – Do you have any complaint regarding the tetra packs of verka ?

This question reveals how many complaints respondents have regarding the tetra packs of

verka.

TABLE 5.8- This table shows how many complaint respondents have regarding the

tetra packs of verka.

Complaint regarding NO. OF

RESPONSES

Percentage (%)

Quality 4 16.6%

Packing 4 16.6%

Availability 13 54.1

Taste 3 12.5

Total 24 100%

Figure 5.8- how many complaint respondents have regarding the tetra packs of

verka.

Interpretation - The reason to ask this question was only to make the improvement in

the particular area where they have lacking but only 24 consumers had given their

complaints. 3% had complaint regarding taste, 4% consumer had complaint with Quality,

4% regarding packing and the having problem with the availability.

44

Survey Results for the retailers

Q 1 – How much old your business mention below?

This question reveals how many years old the business of the retailers.

TABLE 5.9- This table shows how many years old the business of the retailers.

Years NO. OF RESPONSES Percentage (%)

0 – 5 8 16

5 – 10 9 18

10 –15 11 22

15 –20 5 10

20 – 25 5 10

25 –30 7 14

=> 30 5 10

50 100%

Figure 5.9- Shows how many years old the business of the retailers.

Interpretation - The main purpose of asking this question was only to know for how

long a retailer was in business and the range starts from 0-5 years and goes upto 30 years

and the sample size of the retailer were 50 retailers

45

Q 2 – Do you prefer keeping dairy products?

This question reveals how many retailers are keeping the dairy products.

TABLE 5.10- This table shows how many retailers are keeping the dairy products.

Respondent’s response NO. OF RESPONSES Percentage (%)

Yes 50 100%

No --- ----

50 100%

Figure 5.10- How many retailers were keeping the dairy products.

Interpretation - The purpose of asking this question was to check the retailer was in a

business of dairy products. And only those retailers were being considered in this that

was in dairy business. The entire 50 retailer were in dairy business.

46

Q3. Do you sell the product of following brands

This question reveals how many retailers are keeping the products of other companies.

TABLE 5.11-This table shows how many retailers are keeping the products of other

companies.

Figure 5.11- Shows how many retailers are keeping the products of other

companies.

Interpretation - The purpose of asking this question was to know the competitors brands

of the verka in the market and how many retailers were selling the competitors brand 10

deals with nestle,15 deals with amul, 5 with britania, 5 with uttam, 10 with reliance, and

4 with milkfood.

Brand No of retailers Percentage (%)

Nestle 10 20

Amul 15 30

Bartiania 5 10

Uttam 6 12

Reliance 10 20

Milkfood 4 8

47

Q 4 – Do you keep the products of verka?

This question reveals how many retailers keep the products of verka.

TABLE 5.12- This table shows how many retailers keep the products of verka.

Respondent’s response NO. OF RESPONSES Percentage (%)

Yes 50 100

No 0 0

Total 50 100%

Figure 5.12– Show how many retailers keep the products of verka.

Interpretation - The purpose of asking this question was to know how many retailers

deal with the verka products. And only those 50 retailers were being taken for survey

who deals in verka products

48

Q 5 – Which of these products do you deal in?

This question reveals how many retailers keep the tetra packs of verka.

TABLE 5.13- This table shows how many retailers keep the tetra packs of verka.

.

Products NO. OF RESPONSES

Flavored milk 50

Flavored lassi 50

Mango Rasilla 15

Kheer 3

Others (milk, butter, dahi,

paneer etc.)

50

Figure 5.13– Shows how many retailers keep the tetra packs of verka

.

Interpretation - The purpose of asking this question was to know that how many retailer

deals in verka Tetra packs. Out of those 50, 33retailer deals in flavored milk and lassi, 12

deals in above two and also with mango rasilla and 3 were those who deals in all the

above four products of the Verka.

49

Q 6- Do you get the supply in time?

This question reveals how many retailers get the supply of tetra packs of verka in time.

TABLE 5.14- This table shows how many retailers keep the tetra packs of verka.

No. of responses Percentage (%)

Yes 33 66

No 17 34

Total 50 100%

Figure 5.14– Shows how many retailers keep the tetra packs of verka.

Interpretation - The purpose of asking this question was only to check out the retailer

was able to get the supply on time or not. Only 33 retailers were getting the supply of

tetra packs on time and rest 17 were not able to get the supply.

50

Q 7 – If no please tell how much time

This question reveals how much time retailers are get the supply late.

TABLE 5.15- This table shows how much time retailers are get the supply late.

Time in days No of respondents Percentage (%)

1-3 days 26 52

4-6 days 11 22

7- 9 days --- ---

Occasionally 8 16

Not coming 5 10

Total 50 100%

Figure 5.15– Shows how many retailers keep the tetra packs of verka.

Interpretation - The purpose of asking this question was to check how many retailers get

the supply of Tetra packs on the routine bases. Out of which only 26 were those who get

the supply on the routine, 11 are those who get supply in a week and 8 are those who get

the supply occasionally and 5 were those who never got supply by verka they always

purchase the tetra packs from the counter

51

Q 8 – How much you satisfied with verka‘s products mentioned below?

This question reveals satisfaction level of the retailers with the verka‘s products.

TABLE 5.16- This table shows satisfaction level of the retailers with the verka‘s

products.

Products Retailers Percentage (%)

Flavored milk 47 94

Flavored lassi 50 100

Mango rasilla 15 30

Kheer 3 6

Figure 5.16 – Shows how satisfaction level of the retailers with the verka ‘s products.

Interpretation - The purpose of asking this question was to check the satisfaction level

of the retailer in terms of sale 50 persons were satisfies with the lassi, 47 retailer were

satisfied with flavored milk 15 are satisfied with the mango rasilla and only three retailer

were those who were satisfied with the Kheer.

52

Q 9 – How much you are satisfied with verka’s selected products in the term of following

factors:-

This question reveals satisfaction level of the retailers with the factors that affect the

behavior of retailers.

TABLE 5.17 - This table shows satisfaction level of the retailers with the factors that

affect the behavior of retailers.

Products Retailer

Quality 18

Margin 15

Supply 16

Sales promotion 1

Figure 5.17– Shows how satisfaction level of the retailers with the factors that affect

the behavior of retailers.

Interpretation - The purpose of asking this question was to check that factor which

affects the behavior of the retailers to purchase the product again and again 18 prefer due

to quality, 15 due to margin, 16 due to supply and only 1 due to sales promotion.

53

Q 10 – Please tell the approximate sale of verka’s products according to the sale?

This question reveals approximate sale of the tetra packs of verka in the summer and

winter seasons.

TABLE 5.18- This table shows approximate sale of the tetra packs of verka in the

summer and winter seasons.

Season Percentage (%)

Summer 42

Winter 8

Figure 5.18– Shows approximate sale of the tetra packs of verka in the summer and

winter seasons.

Interpretation - The purpose of asking this question was only to know about the sales in

summer and winters. Out of these 50 retailers 42 sell the tetra packs in summer season

but 8 were those who sell the tetra products in winters also.

54

Q 11 – Why are you not selling the products of verka?

This question reveals reasons for not selling the tetra packs of verka.

TABLE 5.19- This table shows reasons for not selling the tetra packs of verka.

Reasons No of respondents

Awareness 15

Margin 7

Quality 2

Sales promotion scheme 25

Replacement 13

Figure 5.19– Shows reasons for not selling the tetra packs of verka.

Interpretation - The purpose of asking this question was to check why the retailers were

not using the selected products of verka. This question was asked to 62 retailers. Out of

15 was those who were no awareness, 7 due to margin, and 2 due to quality, 25 due to

sales promotion and 13 due to replacement.This question was only for those who was not

selling the verka products or Tetra packs of Verka.

55

Q 12 – Do you have any complaint regarding?

This question reveals complaints of the retailers.

TABLE 5.20- This table shows complaints of the retailers.

Complaints No of respondents Percentage(%)

Quality 0 0

Packing 5 10

Supply 25 50

Taste 5 10

Figure 5.20– Shows complaints of the retailers.

Interpretation - The purpose of asking this question was only to get the complaints of

the retailers nobody had complaints regarding the quality, 5 retailers having complaints

regarding packing and 5 regarding the taste and the most of the complaints were

regarding the supply.

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Chapter- VI

Findings of the Study

57

6.1 FINDINGS OF CONSUMER

Based on the detailed analysis and interpretation of the data collected, this above

presents a summary of the research through the following conclusions related to the area

of study: -

In the Gurdaspur city the citizen preferred the products of the verka. Verka had

good brand in the Gurdaspur city. Other brands like nestle, amul, reliance were

lower than the verka. Consumers prefer verka more than other brands because it is

a local company.

Flavored milk was a used more than flavored lassi, mango rasilla and kheer. It

was consumed by more than 50% consumers.

Flavored milk and flavored lassi consumers used daily, weekly and monthly. But

the consumers use mango rasilla and kheer occasionally.

Consumer were satisfied with price, quality, taste, availability and self-life of

product consumers were dissatisfied with the quantity.

Only some citizens were not use flavored milk and flavored for the reason of

awareness, packing, quantity and availability. Many citizens were not use mango

rasilla and kheer for the reason of awareness, packing, quantity and availability

and quality.

Consumers had more complaint of quality, packing and taste.

Consumers more buy the tetra packs verka from outside of milk plant Gurdaspur.

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6.2 FINDINGS OF RETAILERS

Based on the detailed analysis and interpretation done above the data collected, this

chapter presents a summary of the research through the following conclusions related to

the area of study: -

Many retailers sales products from when they open the shops.

The margin was offered by verka to retailers on the tetra packs was less than

others brands.

More than 45 retailers keep the flavored milk and flavored lassi of verka. Only 15

retailers keep mango rasilla and only 3 retailers keep the kheer,

Only 42% retailers get the supply in time.

Retailers were satisfied with the flavored milk and flavored lassi but they were

only satisfied with mango rasilla and kheer.

The sale of tetra packs was more in summer than winter.

The sale of the flavored milk and flavored lassi was very good. The sale of mango

rasilla was so-so and the sale of kheer was very poor.

The retailers were not keeping the tetra packs of verka for the mainly reason of

supply, replacement and sales promotion schemas.

Very less no of retailer want to sell the tetra packs

59

Chapter- VII

Conclusion&

Recommendations

60

7.1 CONCLUSION OF THE STUDY

From the above study it was clear that the in today’s time there is serve competition in

every field and the milk industry is also facing a lot of competition a we know competitor

can pause some threats to the organization as well as they provide us some opportunities.

An organization can store over its competition either by enhancing the quality of the

products, reducing the price, heavily spending promotional activities or having a effective

distribution network. In the Gurdaspur city the citizen prefer the products of the verka.

Verka has good brand in the Gurdaspur city. Other brands like nestle, amul, reliance are

lower than the verka. Consumers prefer verka more than other brands because it is a local

company. Consumer are satisfied with price, quality, taste, availability and self-life of

product. The margin offered by verka to retailers on the tetra packs is less than others

brands.

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7.2 RECOMMENDATIONS OF CONSUMER

The packing, price and quantity of the tetra packs of verka are less than the amul,

nestle.

Citizens have less awareness about the tetra packs of verka. So the advertisement

budget is to increase.

Increase the availability of the tetra packs.

The other products of verka should be fresh and well packed because the

production is daily.

Sales promotion schemes for the consumers should be making.

7.3RECOMMENDATIONS OF RETAILERS

Supply of the tetra packs is improved. It should be a twice in the week.

The replacement of the tetra packs is should be made.

The sales promotion schemes should gave to the retailers.

Retailers and citizens have less awareness about the tetra packs of verka. So the

advertisement budget is to increase.

Either increases the quantity or decrease the price it will increase sale.

62

REFERENCES

63

References

Websites

www. Altavista.com

www.dairyindia.com

www.google.com

www.indiandairyassociation.com

www.indiandairy.com

www.milkfed.nic.in

Reference books:

Kothari C.R – Research Methodology

Kotler Philip - Marketing Management

Prasad L.M- Principal & Practice of Management

64

ANNEXURE

65

QUESTIONNAIRE

Questionnaire for citizens of Gurdaspur.

Q1 Do you use the dairy products?

1 Yes ( )

2 No ( )

Q 2 Which Company’s dairy products do you use? Please rank?

1 Verka

2 Nestle

3 Amul

4 Reliance

Q 3 Please tick the name of the products used by you?

1 Flavored milk 1 Yes ( ) 2 No ( )

2 Flavored lassi 1 Yes ( ) 2 No ( )

3 Mango Rasilla 1 Yes ( ) 2 No ( )

4 Kheer 1 Yes ( ) 2 No ( )

Q 4 How often Do you use the products of verka? Mentioned below

Once in

a week

More than once

in a week

Once in a

month

More than once

in a month

Occasi

-onally

Flavored milk

Flavored lassi

Mango rasilla

66

Kheer

67

Q 5 How much quantity do you use approximately in a month?

0-6 6----12 12---18 18--24 24--30 >30

F milk

F lassi

M Rassila

Kheer

Q 6 What do you perceive of the verka products?

Excellent Good Average Fair Poor

Price

Quality

Brand

Self life of product

Availability

Quantify

Taste

Q 7 How much are you satisfied with verka ‘s products mentioned below?

Very

Satisfied

Satisfied Indifferent Dissatisfied Very

dissatisfied

Flavored milk

Flavored lassi

Mango rasilla

Kheer

68

Q 8 Do you have any complaint regarding?

Quality Yes ( ) No ( )

Packing Yes ( ) No ( )

Availability Yes ( ) No ( )

Taste Yes ( ) No ( )

Q 9 Any suggestion, if you have?

__________________________________________________________________

__________________________________________________________________

Personal information

Name_______________________Address____________________________

Ph.No. _______________ Thanks for sparing few minutes to fill the Questionnaire.

Children, Housewife, Young, Elder. Date…/ July. /. 2009

69

Questionnaire for the retailers.

Q 1 How much old your business mention below?

1 0-----5 ( )

2 5-----10 ( )

3 10----15 ( )

4 15----20 ( )

5 20----25 ( )

6 25----30 ( )

7 =>30 ( )

Q 2 Do you prefer keeping dairy products?

1 Yes ( ) 2 No ( )

Q 3 Do you sell the product of following brands?

1. Nestle

2. Amul

3. Britania

4. Uttam

5. Reliance

6. Milkfood

Q 4 Do you keep the products of verka?

1 Yes ( )

2 No ( )

If no than go to question no.13

If yes continue

70

Q 5 From how much time you are keeping the dairy products of verka mention below?

1. 0 - 5 ( )

2. 5 - 10 ( )

3. 10 - 15 ( )

4. 15 - 20 ( )

5. 20 - 25 ( )

6. 25 - 30 ( )

Q 6 Which of these products do you deal in?

1 Flavored milk 1 Yes ( ) 2 No ( )

2 Flavored lassi 1 Yes ( ) 2 No ( )

3 Mango Rasilla 1 Yes ( ) 2 No ( )

4 Kheer 1 Yes ( ) 2 No ( )

5 others 1 Yes ( ) 2 No ( )

Q 7 Do you get the supply in time?

1 Yes ( ) 2 No ( )

If no please tell how much time

1 1 - 3Days ( )

2 4-- 6 Days ( )

3 7- 9 Days ( )

4 Occasionally ( )

5 Not coming ( )

71

Q 8 How much you satisfied with verka ‘s products mentioned below?

Very

Satisfied

Satisfied dissatisfied Very

dissatisfied

Flavored milk

Flavored lassi

Mango rasilla

Kheer

Q 9 How much you are satisfied with verka’s selected products in the term of following

factors:-

Very

Satisfied

Satisfied Indifferent dissatisfied Very

dissatisfied

Quality

Margin

Supply

Sales promotion

Q 10 Please tell the approximate sale of verka’s products according to the sale?

Summer High 5 4 3 2 1 low

Winter Not know 5 4 3 2 1 low

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Q 11 Why are you not selling the products of verka?

1 Awareness Yes ( ) No ( )

2 Margin Yes ( ) No ( )

3 Quality Yes ( ) No ( )

4 Sales promotion scheme Yes ( ) No ( )

5 Replacement Yes ( ) No ( )

Q 12 Do you have any complaint regarding?

Quality 1 Yes ( ) 2 No ( )

Packing 1 Yes ( ) 2 No ( )

Supply 1 Yes ( ) 2 No ( )

Taste 1 Yes ( ) 2 No ( )

Q 13 Do you want to become a retailer of verka?

1 Yes ( ) 2 No ( ) If yes than signature and stamp.

Q14 Any suggestion, if you have?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

Personal information

Name_______________________Address_____________________________________

________________Ph.No. _________________________ Date……/June.July. /. 2009

Thanks for sparing few minutes to fill the Questionnaire.

73