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Presentation on Project Titled
“A Study on Changing Consumer Preference Towards Consumption of ‘Nandini’ milk in Dharwad City”
MR.NARAYAN(MBA Finance)
By
At
Dharwad Milk Union, Dharwad.
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INDUSTRY PROFILEINDUSTRY PROFILE
• Milk Dairy industry is of comparatively recent origin.
• Commercial dairying started in India with the establishment of military dairy farm and co-operative milk union’s.
• Dairy technology commenced in the year 1950, with functioning of Central Dairy of Aarey colony, Bombay and milk product technology in 1956,with establishment of Amul Dairy, Anand , Gujarat.
• In 1951 only 2 lakh ltrs/day milk being processed, the same presently handling 3 crore lpd in over 450 plants.
• The world’s largest liquid milk plant is located in Delhi, handling over 8,00,000 ltrs/ day.
• India’s first automated dairy located in Gandhinagar, Ahmedabad. Owned by Gujarat Co-operative Milk Marketing Federation in Anand, with annual turnover of more than Rs.23 crore.
• 65% of the world buffalo milk is produced in India.
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ORGANISATION PROFILEORGANISATION PROFILESTATUS A co-operative society registered under the Co operative
Act 1959.
YEAR OF EATABISHMENT 1986
NATURE OF BUSINESS Procuring & Marketing of Milk, Production & Sale ofMilk Products.
SHARE CAPITAL 3 Crores approx.
PLANT CAPACITY 2 Lakh liters/DayMilk Powder 12,000 T /DayButter 6,000 T /DayGhee 6,000 T /Day
MILK CHILLING CENTERS ANDCAPACITY
Gadag 20,000 LTDHaveri 20,000 LTDHirekerur 20,000 LTDNaragud 8,000 LTD Ron 10,000 LTDSirsi 20,000 LTD
PRESENT VALUME OFACTIVITY
Collection of Milk 85,000 LTDSale of Milk 70,000 LTD
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AREA OF OPERATION Dharwad, Haveri, Gadag, Karwar (DK).
TOTAL WORKERS 383 Workers (Including administrative employees)
LOCATION Lakamanahalli Industrial Area, Dharwad.
BRAND NAME NANDINI, SHUBHAM
CO-OPERATIVE SOCIETIES AT VILLAGE LEVEL
460 Societies
VISION STATEMENT Total quality ,Honesty, Discipline ,Cleanliness
Transparency, Sincerity and dedication
Co-operation free of politics, Sovereignty
Respecting each other's opinions, ideas & feelings.
MISSION STATEMENT To enhance milk production and procurement and
maximize returns to milk producers by finding
good market for milk and milk products there by
contribute towards viability of milk union.
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PRODUCT PROFILEPRODUCT PROFILE
Milk Milk Toned Milk(3% FAT and 8% SNF)Toned Milk(3% FAT and 8% SNF) Double toned Milk(1.5% FAT and 9% SNF) Double toned Milk(1.5% FAT and 9% SNF)
Standard Milk(4.5% FAT and 8.5% SNF) Standard Milk(4.5% FAT and 8.5% SNF) Shubham Milk( 6% FAT and 9% SNF)Shubham Milk( 6% FAT and 9% SNF)
Milk ProductsMilk Products Ghee, Butter, Butter Milk, Paneer, Lassi, Pedha, Ghee, Butter, Butter Milk, Paneer, Lassi, Pedha, Packed Curd, Pot Curd and Khove.Packed Curd, Pot Curd and Khove.
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RESEARCH DESIGNRESEARCH DESIGN
NEED FOR THE STUDY:NEED FOR THE STUDY: Milk business is highly competitive. Leading milk Milk business is highly competitive. Leading milk
suppliers like ‘Nandini’ need to understand the suppliers like ‘Nandini’ need to understand the consumer preference in selection of a particular consumer preference in selection of a particular brand.brand.
The present project work is expected to give The present project work is expected to give some insight with regard to consumer some insight with regard to consumer preference .This information can help the preference .This information can help the company to review this strategies to excel in the company to review this strategies to excel in the competitive business.competitive business.
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OBJECTIVES AND SUB-OBJECTIVES OF THE OBJECTIVES AND SUB-OBJECTIVES OF THE RESEARCH UNDERTAKENRESEARCH UNDERTAKEN
Objective:Objective: To find out the changing preferences of households buying milk in To find out the changing preferences of households buying milk in
Dharwad city .Dharwad city .
Sub ObjectivesSub Objectives 1) To understand the awareness level of respondents regarding1) To understand the awareness level of respondents regarding various brands of milk available in Dharwad City.various brands of milk available in Dharwad City. 2) To ascertain the various reasons contributing to the purchase2) To ascertain the various reasons contributing to the purchase of milk by respondents in Dharwad city.of milk by respondents in Dharwad city. 3) To find out the satisfaction level of respondents for Nandini 3) To find out the satisfaction level of respondents for Nandini milk.milk. 4) To analyze the role of the retailers in the sale of Nandini milk4) To analyze the role of the retailers in the sale of Nandini milk in Dharwad city.in Dharwad city. 5) To analyze the effect of promotional strategies used by Nandini 5) To analyze the effect of promotional strategies used by Nandini
milk. milk.
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RESEARCH METHADOLOGYRESEARCH METHADOLOGY
Primary and secondary data has been collected to carry out Primary and secondary data has been collected to carry out research work. research work.
There is separate well structured questionnaire for households There is separate well structured questionnaire for households and retailers, also made interaction with the managers and and retailers, also made interaction with the managers and employees of ‘Nandini’ Milk to get the data. employees of ‘Nandini’ Milk to get the data.
Non Probabilistic convenience based sampling is used by Non Probabilistic convenience based sampling is used by taking 75 households and 25 retailers as sample size. taking 75 households and 25 retailers as sample size.
Frequency distribution and MS-EXCEL software package is Frequency distribution and MS-EXCEL software package is used as analytical tools. used as analytical tools.
Study is restricted to Dharwad city. Study is restricted to Dharwad city. Time taken 60 days( 15-June-09 to 15-Aug-09)Time taken 60 days( 15-June-09 to 15-Aug-09)
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ANALYSIS AND INTERPRETATIONANALYSIS AND INTERPRETATION
1628%
611%7
13%
916%
1628%
24%
Nandini
Srikrishna
Barat Dairy
Arokya
Aditya
Others
Q No.1: Which all brands of milk do you sell?
76%
24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
Q No.2: Does the consumer ask you for a particular brand Milk?
FOR RETAILERS:
Interpretation:
Only 28% of the retailers are selling Nandini Milk, remaining 72% of them selling other brands.
Interpretation:
Most of the households are specific about the brands.
1010
Q.No.3: Ranking of preference of brands 11
1
2
3
2
1
3 3
0
3
4
2
4
1 1
2
3
1
0 0
1
0
5
00 0
1
0 0 00 0 0 0 0 00
2
4
6
8
10
12
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Complaint Handling:
0 0 0 0 0 0
7
3
4
3
10
2
6
1 1
3
5
0
3
2 2
3
1
00 0 0 0 0 00
2
4
6
8
10
12
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Interpretation:
Most of the households prefer Nandini Milk only.
Interpretation:
Aditya Milk is doing well in this attribute followed by Nandini, Bharat Dairy, Srikrishna and Arokya.
1111
0 01 1
0
7 7
221
01
0 00 0 0 0 0 00 0 0 0 0 0
3
11
5
15
0
2
4
6
8
10
12
14
16
Nandini SrikrishnaBharat DairyArokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Packaging:
0 0 0 0
1
0
3 3 3 3
5
1
3
2
0
2
4
0
9
1
4 4
6
11
0 0 0 0 00
1
2
3
4
5
6
7
8
9
10
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Credit Facility:
Interpretation:
Aditya is good in this attribute followed by Nandini, Arokya, Bharat Dairy and Srikrishna.
Interpretation:
Most of the Nandini retailers are not happy with this attribute.
1212
4
0 0 01
0
8
5 5
7
12
2
0 0
2
0
2
0
3
10
21
01
0 0 0 0 00
2
4
6
8
10
12
14
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Availability in Desired Qty.
9
5
4 4
11
1
7
1
3
5 5
1
0 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00
2
4
6
8
10
12
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Availability on Time:
Interpretation:
Aditya is doing well in this attribute compared to Nandini and others brands of milk.
Interpretation:
In this attribute also Aditya is doing well followed by Nandini, Arokya, Srikrishna and Bharat Dairy.
1313
3
1 1 12
0
12
56
4
13
21
0 01
0 00 0 0
3
100 0 0 0 0 0
0
2
4
6
8
10
12
14
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Service:
1
0
7
0
10
2
3
5
0 0
4
00 0 0 0 0 0
8
1
0
4
1
0
4
0 0
5
1
00
2
4
6
8
10
12
Nandini Srikrishna Barat Dairy Arokya Aditya Others
Highly Sat
Satisfied
Neutral
Not Sat
Highly Not Sat
Margin:
Interpretation:
Nandini and Aditya are doing well in this attribute compared to other brands of milk.
Interpretation:
Majority of the Nandini retailers are not satisfied with the margin given by the company.
1414
Q No.10: Promotional activities.
0 0 0 0
5
0
4
8
0
1
8
00
3
1 1 1 1
3
4
5
7
2
1
0
1
0 0 0 00
1
2
3
4
5
6
7
8
9
Srikrishna Nandini Bharat Dairy Arokya Aditya Others
Very High
High
Neutral
Low
Very Low
Q No.11: Ranks to highest selling brands.
9
4 4
2
6
0
4
3
0
2
6
0
1
2 2
1
4
1
2
0 0
2
0
1
0 0 0 0 0 00 0 0 0 0 00
1
2
3
4
5
6
7
8
9
10
Nandini Arokya Bharat Dairy Srikrishna Aditya Others
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Interpretation:
Promotional activities used by Nandini are not enough.
Interpretation:
Most of the retailers gave rank 1 to Nandini as highest selling brand in their retail outlets.
1515
Nandini60
Srikrishna35
Bharat Dairy30
Arokya45
Others24
10%
6%
4%
80%
Tea and Coffee
Preperation of Curds
Direct Consumption
All the Purposes
FOR households:
Q No.1: which are the Brands of milk you are aware of?
Q No.2: Tick the reasons for which you buy milk?
Interpretation:
Most of the households are aware of Nandini milk(80%).
Interpretation:
Most of the households use milk for all the purposes (80%).
1616
Q No.3 which of the brands you prefer or buy?
Srikrishna40%
Bharat Dairy20%Nandini
47%
Arokya32%
Others4%
Srikrishna Bharat Dairy Nandini Arokya Others
Q.No.4: what are the reasons for choosing the most preferred brand above?
55%
39%
7%0%
21%
0%6%
72%
0%0% 0% 0%
100%
40%39%
21%
0%
20%
40%
60%
80%
100%
120%
Quality Price Availability Others
Rank 1 Rank 2 Rank 3 Rank 4
Interpretation:
Only 47% of the households prefer or buy Nandini milk.
Interpretation:
Most of the households give importance to quality and price while purchasing Milk.
1717
Yes47%
No53%
Q.No.5: Do you buy Nandini?
52%
0%14%
34%Shubham
Goodlife
Double Toned
Toned
Q.No.6:which of the brands of Nandini milk do you prefer or buy?
Interpretation:
Only 47% of the households of the households buy Nandini Milk.
Interpretation:
Most of the households use Shubham Brand of Nandini milk.
1818
Q.No.7: How many ltrs of Nandini milk do you consume per day?
26%
37%
34%
3%
0%0
2
4
6
8
10
12
14
1/2 ltr 1 ltr 2 ltrs 3 ltrs More than 3 ltrs
Q.No.8: How did you come to know about Nandini Milk?
Advertisement7%
Pamphlets19%
Through Friends43%
Relatives and Neighbors
26%
Others5%
Interpretation:
Most of the households use 1 to 2 ltrs of Nandini Milk per Day.
Interpretation:
Only 7% of the households came to know about Nandini through Advertisements.
1919
17%
6%9% 9%
6%6%
29%
9%
51%
17%
9%
20%14%
9%
29%
63%
20%
57%
29%
40%
5%
26%
11%
2%8%
0%
10%
20%
30%
40%
50%
60%
70%
Tea and Coffee Preperation ofCurds
DirectConsumption
Usage on Specialoccation
Brand Name
Not at all Preferred Not Preferred Neutral Preferred Highly preferred
Q.No.9: Based on your experience tick the relevant answers with respect to Nandini Milk.
2 2 1
4 4
1 1 0
20
5
1614
22
53
12
46
12
42
108
68
17
5
12
7
16
13 14
1
5
1 1 0
3
0
3
0
5
10
15
20
25
Thikness ofmilk
Taste SpoilageRate
Smell Price Available inDesired
Qty
Availableon Time
Packaging
Not at all Sat Not Sat Neutral Sat Highly Sat
Q.No.10: Satisfaction level with respect to Nandini milk.
Interpretation:
Many of the Nandini users use milk for the preparation of Tea/coffee and for direct consumption.
Interpretation:
Many of the Nandini milk households are not satisfied with the Thickness of milk, Smell and Price of the Milk.
2020
Q.No.11: Does your Retailer accept Nandini Milk when it is returned back due to spoilage?
Yes14%
No86%
Q.N0.12:Does your retailer suggest other brand when you go to purchase milk?
Yes54%
No46%
Interpretation:
Most of the retailers does not accept back milk when it is spoiled.
Interpretation:
Most of the retailers suggest other brands of milk to households when they go to buy the milk.
2121
20%
50%
25%
5%
0
1
2
3
4
5
6
7
8
9
10
Arokya Aditya Srikrishna Others
Q.No.13: Which are the brands he suggests?
Interpretation:
Most of the retailers suggest Aditya brand milk to households when they go to buy Milk.
2222
RESEARCH FINDINGSRESEARCH FINDINGS Only 28% of the retailers sell Nandini Milk.Only 28% of the retailers sell Nandini Milk. Most of the households ask for a particular brand of milk.Most of the households ask for a particular brand of milk. Over all we can say that Nandini is highly preferred Over all we can say that Nandini is highly preferred
followed by Aditya, Arokya, Bharat dairy, Srikrishna and followed by Aditya, Arokya, Bharat dairy, Srikrishna and Others.Others.
Most of the retailers are not happy with the credit facility Most of the retailers are not happy with the credit facility given by Nandini and complaint handling by the company.given by Nandini and complaint handling by the company.
Most of the retailers are not happy with the margin provided Most of the retailers are not happy with the margin provided by Nandini.by Nandini.
Most of the retailers say promotional activities used by Most of the retailers say promotional activities used by Nandini are not enough. Nandini are not enough.
56% of the retailers gave rank 1 to Nandini as highest 56% of the retailers gave rank 1 to Nandini as highest selling brand in their outlets.selling brand in their outlets.
80% of the households are aware of Nandini milk (Brad 80% of the households are aware of Nandini milk (Brad Nane).Nane).
2323
• Most of the households give importance to Quality and price.• Most of the Nandini households buy Shubham brand of
Nandini.• Many of the households consume 1 liter to 2 liters of milk
per day.• Only 7% of households came to know about Nandini
through advertisements. • Most of the households use Nandini for all the purposes.• Most of the households are not happy with the thickness of
Nandini Milk. • Most of the Nandini households are not happy with the
spoilage rate and price of the milk.• More than 86% of the retailers do not accept Nandini milk
when it is returned back due to spoilage.• More than 54% of retailers suggest other brands to
households when they visit the outlets.• Majority of the retailers suggest Aditya.
2424
RECOMMENDATIONSRECOMMENDATIONSFrom the analysis of retailers surveyFrom the analysis of retailers survey:: Retailers are very important to sell the goods which are manufactured by the Retailers are very important to sell the goods which are manufactured by the
company, so the company should take at most care of the retailerscompany, so the company should take at most care of the retailers..
Only 28% of the retailers are selling Nandini in their outlets, so the company Only 28% of the retailers are selling Nandini in their outlets, so the company should engage some more retailers and open some more ATM’s, Day should engage some more retailers and open some more ATM’s, Day counters, milk parlors. This will help to attract more households and there by counters, milk parlors. This will help to attract more households and there by sales will increase.sales will increase.
Only 50% are happy with the complaint handling by Nandini, so company Only 50% are happy with the complaint handling by Nandini, so company should visit its retailers once in week and solve the complaints of its should visit its retailers once in week and solve the complaints of its retailers.retailers.
More than 50% of the retailers who sell Nandini milk are not satisfied with More than 50% of the retailers who sell Nandini milk are not satisfied with the margin given by the company, so the company should try to increase the margin given by the company, so the company should try to increase the margin and which should be competitive one. If the company gives the margin and which should be competitive one. If the company gives competitive margins then more number of retailers will come forward to sell competitive margins then more number of retailers will come forward to sell the Nandini milk.the Nandini milk.
Some of the retailers are not happy with the credit facility given by the Some of the retailers are not happy with the credit facility given by the company, so company should take some necessary actions to satisfy the company, so company should take some necessary actions to satisfy the retailers.retailers.
2525
From the analysis of households survey:
• Only 80% of the households are aware of Nandini milk (Brand Name). When households asked told that they came to know about Nandini through relatives and friends. Only 7% of the households are came to know about Nandini through advertisements, so company should give its effective ads in papers, TV channels, magazines and in internet. Company can give adds twice or thrice in a month.
•The good life and Double toned milk of Nandini are not performing well in market, so company should make more publicity about these two brands.
Most of the households give Rank 1 for quality, so Nandini should take some following steps.
•Most of the households are not happy with Thickness of milk, Spoilage Rate and Smell, so company should take care of these things.
2626
CONCLUSION
To excel in the highly competitive business the company needs to evolve their production, marketing and pricing strategies effectively. For doing this a clear perception about consumer preference with regard to product and service quality and price is of utmost important. The present project work provides some insight in this matter.
The study suggests that The packing is good.The company has to reinforce its sales promotional activities by enhancing advertisements in Television, newspaper and displays. All positive aspects of Nandini milk must reach the public.
The company needs to look for quality improvement with regard to thickness, smell and spoilage rate, pricing policy needs to be reviewed and made competitive. Retailers are expecting higher margin, hence pricing policy should be reviewed to keep the retailers satisfied and enthusiastic in the promotion of sales of Nandini milk.
These efforts may go a long way in providing adequate public satisfaction about Nandini milk. This well helps the company to excel in their businesses.
2727
