1

SUMMER TRAINING PROJECT REPORT

ON

CUSTOMER SATISFACTION

FOR

VERKA PRODUCTS

AT

VERKA MILK PLANT

CHANDIGARH (U.T.)

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(2011-2013)

PUNJAB TECHNICAL UNIVERSITY

UNDER THE GUIDANCE OF : SUBMITTED BY:

MS. HARLEEN KAUR GAGAN K .GOEL

ASSISTANT PROFESSOR,MBA MBA,3RD SEM

1172902

2

CERTIFICATE

This is to certify that Mr.GAGAN KUMAR GOEL has done the SUMMER

TRAINING PROJECT entitled ‘CUSTOMER SATISFACTION FOR VERKA PRODUCTS

’ under my supervision for the fulfillment of the degree of BACHELOR of Business

Administration. The work done by him/her has not been submitted elsewhere and is a

part for fulfillment of MBA degree.

NAME OF GUIDE :MS.HARLEEN KAUR

ASSISTANT PROFESSOR

MBA DEPARTMENT

CHANDIGAR GROUP OF COLLEGES

COUNTERSIGNED

MR. RAJIV KHOSLA

HEAD OF THE DEPARTMENT

MBA DEPARTMENT

3

ACKNOWLEDGEMENT

My training period from 8th may to 30th june 2012 has been a profile experience

and therefore am very pleased to present this report on my summer training in

Chandigarh.

I acknowledge with gratitude my thanks to MR. R.Deora,Manager marketing

,for accepting me as a summer trainee and for providing me with the expert

guidance during the course of my training.

I express my hearfelt gratitude to my project guide MS. Harleen kaur for

her consistent direction,guidance and supervision,which has led to the

succesfull completion of the project.It was a pleasure to have her as my

project guide.

My sincere thanks to MR. R.Deora,Manager Marketing

Also ,my special thanks to my institute for their constant help and

encouragement throughout the project.

Last but not the least ,I wish to thank all my respondents who spared there

precious time out of there busy schedules.

GAGAN K. GOEL

4

CONTENTS

SR.NO TABLE OF CONTENTS PAGE NO.

1.

Chapter –I- Introduction to Project 7

2.

Chapter -2- Review of literature 9

3.

Chapter-3- Research Design 37

4.

Chapter -4- Analysis & Findings 39

5.

Chapter-5- Conclusion 43

6.

Chapter-6- Recommendations 53

7.

BIBLIOGRAPHY 54

8. ANNEXURE 57

5

LIST OF TABLES

Sr.No Table name Table Number Page No.

1. Source of milk 5.1 45

2. Usage of verka products 5.2 46

3. Kind of Product used 5.3 47

4. Duration of usage 5.4 48

5. Affordability 5.5 49

6. Packing of products 5.6 50

7. Taste of products 5.7 51

8. Quality of products 5.8 52

9. Cream content of milk 5.9 53

10 Advertisement 5.10 54

11. Like to buy verka products 5.11 55

LIST OF FIGURES

6

Sr.No Figure Name Figure Number Page

No.

1. Source of milk 5(a) 45

2. Usage of verka products 5(b) 46

3. Kind of Product used 5(c) 47

4. Duration of usage 5(d) 48

5. Affordability 5(e) 49

6. Packing of products 5(f) 50

7. Taste of products 5(g) 51

8. Quality of products 5(h) 52

9. Cream content of milk 5(i) 53

10. Advertisement 5(j) 54

11. Like to buy verka products 5(k) 55

CHAPTER 1

INTRODUCTION TO MILKFED

7

The Punjab state co-operative Milk Producer’s Federation Ltd. Popularly known as

MILKFED Punjab came into existence on 1st December 1973 with the twin objective of

providing remunerative milk market to the milk producers in the state by value addition

and marketing of produce on one hand and to provide technical inputs to the milk

producers for enhancement of milk production on the other hand.

The setup of the organization is a Two-Tier system.Milk producers Cooperatice

Societies at the village level ,eleven Milk Unions at the District Level and the Federation

as an Apex Body at the State Level.Milkfed Punjab has continuously advanced towards

its covered objectives well defined in its byelaws.

Although the Federation was registered in 1973 but it came into its real self in the year

1979-1980 and at that time there were 448 Milk Producers Cooperative Societies at the

village level with membership of 310000.The average Milk Procurement during that year

was 70000 litre per day.

The State was covered under “Operation Flood” in the year 1983 to give the Farmers a

better deal and our valued customers better products.The turn over of the Federation

along with its affiliated District Co-op.Milk Union was Rs. 523crore during the year 1999-

2000.Today,the farmers are getting better prices because of increased turn over and

there by making increased profits.

2.1MILKFED’S PROMISE

Milk was always there in Punjab in plenty and lots to spare.So it flowed in to thousand of

homes but a price not so good for toiling farmers.Milk exchanged hands through those

of middlemen who took away a major part of the farmers profits.This was what made

MILKFED to step in.

We know that farmers deserve much more and the things could always be better with

little more planning,controlling and with the aid of modern technology.

8

2.2 IN THE INTEREST OF FARMERS

Milkfed with its network of 5800 village Milk Producers Cooperative Societies and over 3

lac milk producers from the strong network which not only provides assured market to

milk producers but also carries inputs to milk production enhancement at their

doorsteps.

2.3 EMPLOYMENT

Milkfed and its unit has a work force of about 5000 employees.Every morning and

evening milk is lifted from the village through private transport vehicles,which is

providing a regular employment to about 600 transporters ,most of whom are self-

employed people .Similarly, seminators and first aid workers are also finding

employment and at the same time providing input service to Milk Producers right in the

villages.More than 5000 village Cooperative societies are having 10000 workers to man

there milk procurement and technical inputs etc.

2.4 INPUT SERVICES TO MILK PRODUCERS

In addition to milk procurement ,processing and marketing of milk and milk products the

federation is also providing technical input services to the specific target group(Milk

Producers Cooperative Members).In order to save milk animals form heat stress Animal

cooling units have been provided to Milk Producers ,which have given good

results.Usual fall in milk production during summer months has been fairly checked and

controlled.

2.5 TECHNICAL INPUT PROGRAM

9

The federation and its affiliated Milk Unions are providing technical input services like

animal health care,artificial imsemination services ,supply of balanced cattle feed,supply

of quality fodder seeds and vaccination against diseases and prophylactics to the

specific target group (Milk Producers Cooperative Members) at their doorsteps with a

view to increase milk production and milk procurement.

2.6 BREED IMPROVEMENT PROGRAM

The federation has strengthened the Frozen Semen station with the financial

assistance from the Technology Mission on Dairy Development 986 elite buffaloes have

been selected from various milk sheds for breeding them with the semen of progeny

tested buffaloes.HI-Technology embryo transfer facilities have been produced.This

facility in long run will make substantial improvement in the breed ok milch animals,thus

contributing to the enhancement of milk production in the state.

2.7 FODDER SEED DEVELOPMENT

As a result of continuous extension of dairying,the farmer are fully convinced about the

importance of high yielding forages for increasing the milk production at low

cost,thereby getting a substantial margin for the trade.The fodder development activities

initiated by milkfed have created a good demand of improved fodder seeds in Punjab.

Milkfed established its own seed processing to grade fodder seed at production of 15-16

M.T. per day.

2.8 TECHNOLOGY INFORMATION,FORCASTING AND ASSESSMENT

COUNCIL(TIFAC) FOR IMPROVING QUALITY OF MILK

Milked Punjab on behalf of milk union Ludhiana has started a project has started a

project sponsored by Technology Information,forcasting and assessment council,a

10

Govt. of India body for improvement of milk quality and yielding through better milk farm

management in Punjab.A modern dairy demonstration and training center is also being

setup for practical training of the farmers at Punjab Agriculture University at a total cost

of Rs. One crore .Milkfed and its affiliated District Cooperative Milk Union,Ludhiana has

taken a bold initiative by signing an agreement for a combined project with capital outlay

of Rs.2 crore with TIFAC.The project has very fascinating possibilities ,as the project is

first of its kind in the country.It is likely to serve as a model and direction for the entire

country since we have to improve drastically,The productivity and quality in milk

production to be globally competitive in the changed environment.

It is a composite project aimed at improving dairy farm practices include better

housing,farm management and feeding to enhance the productivity of the live stock as

well as to provide a clean environment for cleaner milk production.

2.9 MARKETING ACTIVITIES

Milkfed is serving the nation and the consumers through its network or regional offices

and strong distribution channels.MILKFED markets a wide variety of products which

includes liquid milk,skimmed milk powder,whole milk

powder,ghee,butter,cheese,lassi,SFM,ice-cream etc.The annual turnover of verka has

crossed 600 crores.Verka is a brand leader in milk powders particularly in north eastern

sectors and the SMP marketed by competitors which includes multinational as well as

private trade and other cooperative federations.New Verka has has survived on the

sheer strength of its quality,freshness and purity and ofcourse its homemade taste nad

all this at the most affordable prices.To people today ,Verka is a part of there everyday

lives.

2.10 THE EXTENSIONS OF THE BRAND

11

After winning faith of countless customers.Verka did not stop,as there was scope for

more,changing times brought new trends,needs,tastes and hopes.Verka dymanic as

ever,too acquired newer forms,by adding value to milk to satisfy a quality-conscious

society.Milkfed is in its continuous effort to diversify from the traditional milk products to

more value added products namely frozen dessert ,spiced cheese spread ,the flavoured

fruit yogurt,processed cheddar cheese,cheese spread and there were milk powder like

dairy whitener,skimmed milk powder.Health drinks like verka vigor,verka

lassi,sweetened flavoured milk a mango frink called raseela.Then there were verka

curd,and a whole lot of different flavoured ice-creams.Milk had never meant so much

before.

2.11 EXPORT OF MILK PRODUCTS

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

made.MILKFED has established its ghee market in Middle East.Verka ghee reaches all

the Emirates and is available in almost all supermarkets.The penetration is so deep that

verka ghee is available in far off labour camps.In addition to ghee,SMP was also

exported to Asian countries like Philippines,Bangladesh and Sri Lanka.

2.12 ADOPTION OF INTERNATIONAL QUALITY

MANAGEMENT SYSTEMS

During the post liberalization period,MILKFED in order to keep a pace with all-round

development,decided to go in for certification of various Milk plants and Cattle feed

plants under International Standards.The Milk Plant Ludhiana was the first dairy plant in

12

the country to get an ISO-9002 certificate.Thereafter with the introduction of

HACCP ,decision was taken that besides taking certificate under ISO-9002 ans IS-

15000(HACCP).It is a matter of pride that till date six milk plants and two cattle feed

plants have already obtained this certification.Rest of the cooperative sector milk plants

are also in progress to get this honour.

2.13 PAYMENT OF DIVIDEND

Since 1993-1994 MILKFED is paying dividend to its share holders including the state

govt. for the year 2007-08 with the approval of the administrator.The federation has

already paid dividend@4% to its shareholders with the approval of the general body of

MILKFED.

2.14 ADOPTION OF INFORMATION TECHNOLOGY

The computerization in MILKFED was started during 1987-88 with the installation of two

main frame computer systems at Milk Unions,Jalandhar and Milkfed head office to

process the data of nearby Milk Unions.With the introduction of personal computer

during 1992-93 in milkfed,The data processing has been decentralized at milk unions

level.The activities like Milk billing,payroll,financial accounting,marketing of liquid

milk,sale of products through dealers/milk bars and different M.I.S reports to govt. and

other quarters have so far been computerized.

MILKFED is leading inn software development and providing training for handling the

software application and software packages.The office automation packages on window

based are being used in MILKFED and Milk Unions.More than 300 computers have

been installed at Milkfed and Milk Union.The computer have been interlinked under

local area network at Milkfed head office and Milk

union ,Ropar,jalandhar,Ludhiana,Amritsar.For the faster communication and transfer of

13

data,the computers at Milkfed and eight other Milk Unions have been interlinked through

Modem.

The federation has also executed implementation of entrepreneur resources planning

(ERP) solution on world’s one of the best software package SAP in Milk Unions,Mohali

and Ludhiana

2.15 PRODUCTS

Range of verka Milk Products:

MILK

CHEESE AND PANEER

GHEE AND BUTTER

MILK BASED DRINKS

MILK POWDER

ICE-CREAM AND SWEETS

14

CURD

FRUIT DRINKS

LASSI NAD WHAY DRINK

2.16 BRIEF HISTORY OF MILKPLANT AT CHANDIGARH

Milk plant ,Chandigarh was established in the year 1962 by Punjab Govt. to provide

hygienically prepared milk and milk products to the upcoming city of Chandigarh.The

activity of liquid milk supply was shifted to milk plant,Mohali during 1979-80 .Punjab

Dairy Development Corporation(PDDC) transferred the milk plant in the month of April

1983.Since then the history of Milk plant Chandigarh remained chequered one with the

setting up of aseptic packaging station.

In the month of march,1991 this milk plant was recommissioned and the production of

icecream was started with substantial enhanced capacity.In order to introduce the verka

Icecream in the market and to create awareness amongst the people of Chandigarh and

its satellite towns,Mohali and Panchkula,aggressive market campaign was started with

the planned marketing.Now position is that Verka icecream has become a favourite

brand.

2.17 PRESENT ACTIVITIES OF PLANT

15

The major activities at the plant are manufacturing of icecream sweetened flavoured

milk.Fruit drinks,lassi,raseela,manufacturing of large quantity of kajupinni and milkcake

and are also sweets,marketing of products of other plants like ghee,table butter and

processed cheese etc.

2.18 VERKA –IT’S NETWORK

Verka is having an apex body at the state land known as “Milkfed Punjab Chandigarh

”.To start with the function in various fields of different districts and to operate with

dairying and dairy fields i.e. Operation flood- with the assistance of national dairy

cooperation(NDC),delhi and later on it is launched to operation flood -2nd which is

affiliated to Punjab Milkfed.It helps to its affiliated district Milk cooperations .These

eleven District unions are:

1.Ropar

2.Patiala

3.Ludhiana

4.Faridkot

5.Ferozpur

6.Sangrur

7.Bathinda

8.Gurdaspur

9.Hoshiarpur

10.Jalandhar

16

11.Amritsar

The unions are in eleven district of the state carry out smooth functioning of

marketing ,procurement cattle breeding programmed through district Co-operation

Unions(DOC).

Milkfed is having two cattle-feed factories i.e.

1.Khanna

2.Ghaniyan ka Bangar,Gurdaspur

It has its one seed production and processing plant at bassi(Fatehgarh sahib).

Moreover it has got centralized exotic cattle farm and sperm stations at khanna which

distribute semen straws to its affiliated unions and adjoining states.

Under this programmed development in dairying and dairy technology i.e installation of

plant ,Milk chilling centers and impartation of dairy equipment’s as well as know how of

cattle breeding sytems was familiarized to the common man and advanced milk

producers.

So the whole development program is carried out through its own controlled factories

realte to various fields.All units are having well equipped to maintain its good quality of

products as par requirements laid down by ISI.

17

2.19 ORGANIZATIONAL NETWORK

For the smooth running of the plant ,various sections are managed by the

management.Each and every activity is delegated to particular section.It is impossible

for top management to take decisions on every problem,so various tasks are delegated

to various sections.These sections are interrelated to have frequent contacts with one

another and it’s easy to share the information they need to coordinate their jobs.These

integrated task teams handle there problems that makes the supervision easy.

The following are the sections in Verka:

a.Procurement section

b.Production section

c.Quality control section

d.Marketing section

e.Accounts section

f.Personnel section

g.Engineering section

h.Purchases section

i.Store section

2.20 PRODUCT RANGE

18

The milk Plant Chandigarh has the following line of products :-

Product Quantity

Milk

Tonned 500 ml

Skimmed 500 ml

Premium 500 ml

Standard 500 ml

Lassi

Plain 1 ltr

19

Namkeen 250 ml

Spicy 250 ml

Cheese

Cekatainer 250 gms

Bricks 1 kg

Kheer

250 gms

125 gms

Curd

200 gms

400 gms

20

Curd premium

400 gms

Paneer

200gms

1 kg

Ice-Cream

Kulfi

Lollies

Bricks 500gms,250gms

21

Gallons 5 ltr

Ghee

½ kg tin

1 kg tin

½ kg mom

1 kg mom

2kg tin

5 kg tin

15 kg tin

Gulab Jamun

½ kg tin

1kg tin

3.7 kg tin

Ras Gulla

½ kg tin

1kg tin

22

3.7 kg tin

Milk fruit Drink

Mango Raseela 200ml tetra pack

Pineapple 200ml tetra pack

Lichi drink 200ml pac

2.21 PROMOTERS OF VERKA

The company is promoted by two young entrepreneurs Gagan Matta and Garry Matta

under the visionary guidance of their respected father Mr. Kulwant Singh Matta. Gagan

Matta migrated to Canada in the year 1996 and with the support of his brother Garry

23

Matta back in India established a successful company “GLOBAL TRADERS” engaged

in the distribution of all types of Grocery, Food Products, Fruits & Vegetable and Articles

of Daily use all across Canada . With a very strong dealer and distribution network

Gagan Matta presently is the sole distributor of the products of various internationally

acclaimed Companies and Brands like Brooke Bond Red Label, Lipton, Taj Mahal from

Unilever/Hindustan Lever, Bikano Namkeens and Sweets from Bikanervala, Sohna

Saag from Markfed Punjab, World Famous Tilda Rice and Golden Temple Atta, Biscuits

from Britannia, Verka Ghee & Paneer, Mazza Mango Juice from Parle, Chetak

Cookware and many more.

These two enterprising young men have also successfully promoted a famous brand

“Mr. Orange”. It has become a national brand in just two years of its launch in

Dec. 2004.

Now they are poised to launch a famous Indian Food Chain in North America.

2.22 LEAD PLAYERS IN THE MARKET

Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro, Haryana Milk Foods, Mohan

Food, Modern Dairy, K Dairy

Amul, Sapan, Vijaya Spray, Meadow, Mohan, Parag, Shweta, Malkana, Gagan, White

Magic, Every Day.

Market Growth Rates

1990-91 - 1996-97 3.6%

1996-97 - 2001-02 10.1%

2001-02 - 2006-07 8.7%

24

2004-05 - 2009-10 8.3%

2009-10 - 2014-15 8.0%

 

The main thrust of proposals is on the improvement of animal health and adoption of

sanitary and phyto-sanitary specifications (SPS) for dairy products. Towards this end,

the Technology Mission on Dairy Development (TMDD) has initiated a wide-ranging

program.

Table 1: Milk Utilisation Pattern in India, 1943-2004

Year 1943* 1956 2004

Milk Production (million tones) 23.5 17.8 91

Mil Utilisation (Percentage) 100 100 100

Liquid Milk 28.0% 39.2% 46.0%

Traditional Products 72.0% 60.8% 50.0%

Ghee/Makhan (clarified butter) 58.7% 46.0% 33.0%

Dahi (Yogurt-like) 5.2% 8.8% 7.0%

Khoya (Partially desiccated Milk 5.0% 4.4% 7.0%

Chhana and Paneer (unprocessed cottage cheese) 3.1% 1.6% 3.0%

Western Products: Milk Powder, etc Neg Neg 4.0%

*Includes Pakistan and Bangladesh      

25

The upsurge in milk production has thrown up challenges in milk marketing. The country

is blessed with an enormous domestic market because of the following factors: Large

population and its continuous growth, low level of per capita milk consumption and

hence large size of potential, but latent demand, increasing purchasing power, which is

already in evidence, will transform the huge latent demand into real demand. The

groups of dairy products offering exciting marketing opportunities are liquid milk itself,

which accounts for a sizeable part of the milk consumption products, in which our dairy

industry already has demonstrated considerable expertise, like milk powders, butter and

ghee. The ability to manufacture the relatively new and sophisticated products like

cheese and ice cream alongside the traditional products like paneer, khoya and milk-

based sweets are now being manufactured on a large scale.

2.23 GOVERNMENT POLICIES FOR THE MILK INDUSTRY

Policies Influencing the Dairy Sector

Agriculture, including the dairy sector, is state controlled, and state governments are

primarily responsible for development of the sector. The central government

supplements the efforts of the state governments through various schemes for

achieving accelerated growth of the sector. Despite the importance of dairying in the

Indian economy, especially for the livelihoods of resource-poor farmers and landless

laborers, government policy toward this sector has suffered from the lack of a clear and

strong thrust and focus. The first attempt to conceive a set of policies for livestock

development in India was the Royal Commission on Agriculture (1928). We can divide

the government policies into three distinct phases; pre-Operation Flood, post-Operation

Flood, and post-reform period.

One of the indicators of a sector's importance is the budget allocation to that sector. The

investment pattern in animal husbandry and dairying during various plan periods is

26

given in Annex Table 2.4. The plan outlay (at current prices) of central and centrally

sponsored schemes under animal husbandry and dairying has increased from Rs. 22

crore in the First Plan to Rs. 1,545.64 crore in the Ninth Plan and Rs. 2500 crore in the

Tenth Plan. The outlay for dairying increased from Rs. 781 crore in the First Plan to Rs.

900 crore in the Eighth Plan and then declined in the Ninth Plan to Rs. 469.5 crore (all

figures are at current prices). The allocation to animal husbandry and dairying as a

percentage of total plan outlay varied from 0.98 percent during the Fourth Plan to about

0.18 percent during the Ninth Plan (Figure 2.5). However, in most cases the bulk of the

budget is eaten up by wages and other administrative costs of the government

departments. Although the dairy sector occupies a pivotal position and its contribution to

the agricultural sector is the highest, the plan investment made so far does not appear

commensurate with its contribution and future potential for growth and development.

The low productivity of Indian cattle has been the central concern of livestock policy

throughout the last century. In the First Five Year Plan, the Key Village Scheme (KVS)

was launched to improve breeding, feed and fodder availability, disease control, and

milk production. To meet urban areas' need for milk, the government promoted state-

owned dairy plants to handle milk procurement, processing, and marketing. In 1959, the

government Delhi Milk Scheme (DMS) was set up to supply milk to the urban population

of Delhi. This scheme adopted the method of departmental milk procurement from the

milk-producing areas around Delhi by setting up its own milk collection and chilling

centers. Though the collection was started from small milk vendors initially, it ultimately

ended up creating big contractors who purchased milk from the small vendors and

supplied it in bulk to the milk scheme. The same policies and strategies continued in the

Second Five-Year Plan. In 1976, the National Commission on Agriculture concluded

that the KVS could not meet its objectives because, due to a shortage of funds, it did

not stress feed and fodder development and marketing of milk. The Third Plan

emphasized the need to develop dual-purpose animals for milk as well as draft use;

crossbreeding of nondescript indigenous cattle was introduced during this plan. The

Intensive Cattle Development Programme (ICDP) was launched in areas with high milk

potential.

27

The disappointing performance of the dairy sector during the 1950s and 1960s

concerned policy makers, and the Government of India undertook a far-reaching policy

initiative. Dairy development through producers' cooperatives and milk production based

on milk sheds in the rural areas, modeled on the successful experience of dairy

cooperatives in Gujarat, became the cornerstone of the new dairy sector policy. This

policy initiative turned the Indian dairy sector around and led to all-around growth with

several unarticulated spread effects.

The Government of India launched a massive dairy development program popularly

known as Operation Flood (OF) from 1971 to 1996. The program was initially started

with the help of the World Food Program (WFP) and later continued with dairy

commodity assistance from the European Economic Community (EEC) and a soft

loan/credit from the World Bank. Under this program, rural producers were organized

into cooperatives so they would have an assured market, remunerative prices, and

inputs and services for milk production enhancement, such as better feed and fodder,

breed improvement through artificial insemination, and disease control measures. The

program was unique in its approach inasmuch as the gift dairy commodities received by

India under the program were not consumed by free distribution but were used to

manufacture liquid milk, and funds thus generated were reinvested in rural areas in milk

production enhancement activities. This coordinated and innovative effort has greatly

increased milk production and ushered in a "White Revolution," making India the world's

largest milk producer.

The program was implemented in three phases: OF-I (1970-1981), OF-II (1981-85) and

OF-III 1987-96). Operation Flood remained the pivot of government policy in the field of

dairy development in India, and the number of city milk schemes and milk colonies

begun in the 1950s and 1960s declined as the regional and national milk grids started

operating under OF. In metro areas, government milk schemes coexisted with the

Mother Dairies run under the control of the National Dairy Development Board (NDDB);

however, the former kept selling milk at subsidized rates for long time for political

reasons, and Mother Dairies introduced aggressive, modern milk marketing and

distribution systems.

28

An indicator of the success of Operation Flood is the amount of milk procured and

supplied to consumers. Average milk procurement increased from 2.56 million kg per

day during Phase I to 11 million kg per day during Phase III. However, there are

variations in the proportion of milk procured to total milk production across states. The

striking pattern that emerges is the predominance of cooperatives in Gujarat and

Maharashtra. Between Phase I and III, average liquid milk marketing increased from

27.8 lakh liters per day to about 100 lakh liters per day.

In 1989, the Government of India launched a Technology Mission on Dairy

Development (TMDD) to coordinate the input programs for the dairy sector, which

ended in March 1999. An Integrated Dairy Development Programme (IDDP) in non-

Operation Flood, hilly, and backward areas was launched as a Centrally Sponsored

Plan Scheme during the Eighth Plan and continued during the Ninth and Tenth Plans.

To promote domestic production, India adopted an import-substitution strategy and

protected the sector from external markets through means such as quantitative

restrictions on imports and exports and canalization (restricting imports and exports

through government or government designated agencies). Competition within the

organized sector was regulated through licensing provisions, which prohibited new

entrants into the milk-processing sector. Milk powder and butter oil were available in the

international market at lower prices, which made reconstitution of milk from these

products cheaper than collecting and selling fresh milk. It was therefore necessary to

restrict the availability of these cheap imports to encourage the indigenous production.

The third phase of Indian dairy policy started in the early 1990s, when the Government

of India introduced major trade policy reforms that favored increasing privatization and

liberalization of the economy. The dairy industry was delicensed in 1991 with a view to

encouraging private sector participation and investment in the sector. However, in

response to sociopolitical pressures, the government introduced the Milk and Milk

Products Order (MMPO) in 1992 under the Essential Commodities Act of 1955 to

regulate milk and dairy product production. The order required permission from

state/central registration authorities to set up units handling more than 10,000 liters of

milk per day or milk solids up to 500 tons per annum (TPA), depending on the capacity

29

of the plant. The order included sanitary and hygienic regulations to ensure product

quality. The status of registrations granted under the MMPO as of March 31, 2002, is

given in Annex Table 2.5.

However, concerns were raised about these government controls and licensing

requirements for restricting large Indian and multinational players from making

significant investments in this sector. The government has amended the MMPO from

time to time; the major amendment was made in March 2002, when restrictions on

setting up milk processing and milk product manufacturing plants were removed and the

concept of milkshed was also abolished. This amendment is expected to facilitate the

entry of large companies, which would definitely increase competition in the domestic

markets.

The second major development in Indian dairy sector policy came when India signed

the Uruguay Round Agreement on Agriculture (URAA) in 1994 and became a member

of the World Trade Organization (WTO), which made India open up its dairy sector to

world markets. The import and export of dairy products was delicensed and

decanalized, and trade in dairy products was allowed freely, with certain inspection

requirements. The first major step was taken in 1994-95, when the import of skim milk

powder (SMP) and butter oil was decanalized; restrictions on the remaining products

were removed in April 2002. Moreover, there was a significant reduction in the import

tariffs on dairy products after trade liberalization. However, India had bound its import

tariffs for dairy products at low levels in the Uruguay Round schedules.

2.24 ACHIEVEMENTS OF VERKA

IMPRESSIVE SALES GROWTH AND ATTAINED 13% CAGR FOR THE LAST 3

YEARS.

Milkfed achieved impressive Sales growth of 13% during the year 2009-10 in

comparison to previous year by increasing this from Rs.1110.32 Crores to Rs. 1253.20

Crores. 

30

Milkfed is expecting impressive growth in Sales turnover to continue during the year

2010-11 also which is a healthy sign and has a plan to achieve target of Rs. 1450.00

Crores. This will improve the financial position of Milk Unions with special reference to

reduction in ratio of Salary & Wages overhead to Sales turnover. Milkfed has been able

to achieve CAGR of more than 17.5% for the last 5 years and is determined to

maintain this rate of growth in the coming 4-5 years to achieve the target of Rs.

2600.00 Crores Sales turnover in the year 2014-15.

SIGNIFICANT IMPROVEMENT IN FINANCIAL POSITION

Milkfed as an Apex Body earned net profit of Rs.628.02 Lacs during the year 2009-10

in comparison to profit of Rs.558.78 lacs during previous year. If we put Milkfed & its

affiliated Milk Unions together there is net profit of Rs.2021.49 lacs during 2009-10

against net profit of Rs. 1462.02 lacs in previous year. This is ever highest profit since

inception and surpassed earlier highest profit of Rs.1462.02 lacs earned during the

year 2008-09. During the year 2009-10 seven out of Eleven Milk Unions earned net

profit. This ever highest profit has been possible by adopting various strategies to

increase Sales turnover, milk procurement, aggressive marketing, efficient fund

management, costs drive and mobilisation of additional resources.

VERKA'S PRODUCT RANGE 

Milkfed markers a wide range of products including different variants of Pasteurised

Packed milk, Ghee, Table Butter, Skimmed Milk Powder, Whole Milk Powder, Cheese,

Tetra Pack Products, Sweetened Flavored Milk, Ice Cream, Fresh Products like Lassi,

Paneer, Dahi, Kheer, Indigenous Sweets under the brand name of Verka. It also

markets Fodder Seed, Cattle Feed and mineral mixture for milk producers.

31

UPWARD TREND IN MILK PROCUREMENT 

Milk procurement of MILKFED was almost stagnant till 2006-07. By adopting various

focused strategies we were able to procure on an average 9.49 lac Kg. of Milk per day

during the year 2009-10 against procurement of 9.21 lac Kg. per day during the year

2008-09achieving an increase of 4%. 

If we see Milk Procurement scenario in Cooperative Sector at National level, Milkfed

Punjab was at 5th place in the year 1995-96 after Gujarat, Rajasthan, Maharashtra,

and Tamil Nadu and due to one reason or other it slipped down to 9th position in 2006-

07. In the year 2007-08 its position improved to 8th by overtaking Kerala. Further to 7th

position in 2008-09 by overtaking Uttar Pradesh. . During the current year 2010-11 the

Federation has attained growth of 15% over same period of last year.

IMPRESSIVE GROWTH IN PACKED LIQUID MILK SALES

Milkfed marketed 7.27 lac ltrs. of packed milk per day in different variants during the

year 2009-10 against 6.58 lac Ltrs. Per day during the year 2008-09 achieving

impressive growth of 10.4%.

Milkfed is expecting impressive growth rate in packed liquid milk sales to continue in

this year also and has achieved growth of 9% upto September,2010.

IMPRESSIVE SALE GROWTH IN FRESH MILK PRODUCTS

During the year 2009-10 more stress has been given to market fresh products like

Paneer, Kheer, Dahi, Lassi etc. which are value added products for Milk Unions.

Product-wise growth achieved during the year 2009-10 in comparison to 2008-09

32

SUBSTANTIAL IMPROVEMENT IN SALARY & WAGES OVERHEAD AS

PERCENTAGE OF SALES TURNOVER

In a sound commercial organization the ratio of salary & wages overhead to Sales

turnover should be below 5%. In case of Milkfed including its affiliated Milk Unions it

was 10.02% during the year 2005-06 which came down to around 7.5% during the

year 2009-10 by achieving good growth in sales turnover. The Federation has a plan to

bring it further down during the current year by carrying out the exercise of

restructuring of manpower in all the Milk Unions and Milkfed Units by giving more

emphasis on outsourcing number of activities and by automation at Plant level.

2.25 PROBLEMS OF THE MILK INDUSTRY

 

 

  Key success

factors

Business

concerns

Demand

drivers 

Liquid

milk

Sourcing

Distribution

Financial

distress of

co-

operatives

 

Packaging in

smaller units

Package

d milk

Technology Small market

size

Convenience

Health

concerns

Milk

products

Branding Inadequate

infrastructure

 Increase in

per capita

33

Refrigeration

 

  income

Infant mil Education

Marketing

 

Poor

penetration

Changing food

habits

 

Regulatory changes

Dairy sector was de-licensed in 1991

No industrial license is required fro dairy industry

Foreign equity participation permitted to the extent of 51 per cent in dairy

processing sector

Excise duty on dairy machinery has been fully waived off

 

Key legislations:

 

Milk and Milk Products Order 1992: With following controls

–        Collection areas/milk sheds specified

–        Processing capacity fixed

Revised MMPO in 2002: Controls stand withdrawn

 

The production, distribution and supply of milk products are controlled by the Milk

and Milk Products Order, 1992. The order sets sanitary requirements for dairies,

machinery, and premises, and includes quality control, certification, packing,

marking and labeling standards for milk and milk products.

 

The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production,

Supply and Distribution) Act, 1992 and Rules 1993

34

2.26 SWOT ANALYSIS

STRENGTHS

Minimum interference from the top management in day to day working.➢

Qualified, experienced and devoted workforce.➢

Brand name - Verka➢

Direct contacts with milk producers.➢

Own cattle feed plant and fodder seed grading station for supplying certified➢

fodder seeds.

Technical and financial guidance and support from Milkfed Head Office➢

Chandigarhand National Dairy Development Board.

Good corporate governance and socially responsible organization.➢

Emotional attachment of people to Verka as they consider it as brand of➢

Punjab. Such a status is not enjoyed by any of the other brands in the market.

WEAKNESSES

Highly competitive market.➢

Problems in research and development.➢

Fewer facilities for transportation of milk.➢

The plant is having very limited human resources and most of its departments➢

are falling short of work force putting extra burden on present work force.

Other brands of milk are giving tough competition, as it does not advertise its➢

products completely.

Although management is devoted to its work but they are traditionally educated➢

so theylearn by experience.

OPPORTUNITIES

35

Skimmed Milk Powder (SMP) is cheaply available to milk plant as it is prepared➢

when procurement is more than demand. This allows milk plant to give

competitive prices for  procuring milk and attract more and more dairy farmers.

Although Verka is having a broad range of products but still there are certain➢

niche products which Verka do not manufacture until now. Verka should make

efforts in developing such products like Skimmed Milk in tetra packs.

Milk plant is already exporting Ghee to gulf countries. It has received export➢

orders for Skimmed Milk Powder, Ghee and Raseela. Thus, it is expected that by

more exports, it will earn more precious exchange for country.

National Dairy Development Board is also helping milk union to increase➢

milk  procurement.

Health consciousness among people is increasing day by day and thus there is➢

hugemarket for pro-biotic milk and milk products

THREATS

Other big companies like Dairy Pure and Vita are foraying into milk business.➢

There is a possibility of this trend being followed by other Companies like Amul

and thus creating tough competition for Verka.

In the absence of strict quality parameters for private dairies, the entry barrier➢

for them is very low.

As it is a government organization any change in government means change in➢

its all policies.

  The cost for the raw material is continuously rising and this major cause➢

warning people from dairy farming

36

CHAPTER NO. 2

REVIEW OF LITERATURE

Dr. Arvind Kumar Yadav and Mr. Suman Yadav (2008)

Journal of IPM Meerut

The research on the on the topic “CONSUMER SATISFACTION IN SBI” the objective of

the study is to made analyse with regard to the assessment of services provided by SBI

37

to the customers. The research methodology used by researcher includes collection of

primary and secondary data. Primary data has been collected from the existing

customers of SBI. Data collected has been analyzed by researcher through tables,

graphs and pie charts. By the researcher found that the expectations of customers of

SBI are met to a limited extent.

Dr. N. Kathirvel and Dr. N Chandersekaran (2008)

Indian journal of marketing

The researcher research on the topic “CONSUMER BEHAVIOUR AND BRAND

PERFORMANCE TOWARDS THE ONIDA T.V” the objective of the research was to

study consumer satisfaction and brand loyalty of the respondents toward the Onida T.V.

For this researcher collected primary and secondary data from the sources. The

research methodology adopted by the

researcher includes chi-square test, percentage, arithmetic mean, correlation, and

variance. The researcher founded that favorable appreciation response was received

from the customers. Study also certifies that consumer behavior is unpredictable one in

any kind of the market.

J.V Rangeswara Reddy (2009)

Indian journal of marketing

The researcher research on the topic “CUSTOMER SATISFACTION OF NOKIA

MOBILE HANDSET USERS” the objective of the research is to study the satisfaction

level of the customers, awareness of customer about the products and to predict the

consumer behavior. For this researcher collected primary data and analyse it with the

help of tables, charts, bar graphs and pie charts. The researcher found that the product

awareness about the nokia product is high as compared to others. It is also concluded

that the consumer is influenced to buy nokia due to its brand image and also the

38

satisfaction level of customers of nokia is high as compared to the others handsets in

market.

Steen amp (1991) studied the Consumers' variety seeking tendency (intrinsic desire

for variety) is recognized as an important characteristic that influences consumers'

electronic choice behaviour. Empirical studies in economics and marketing have not

specifically focused on this consumer characteristic, but instead have approached the

issue from the overt behaviour side. Given the great many factors that may underlie

variation in behaviour, intrinsic desire for variety cannot be validly derived directly from

observed behaviour. Instead, a measure specifically tapping this consumer

characteristic is required. In this paper a scale (VARSEEK) for measuring consumers'

variety seeking tendency with respect to foods is developed. The construct validity of

this VARSEEK-scale is investigated extensively and managerial implications are

discussed

H.k mukharje (1995) studied that two-equation bivariate probit model was

formulated to analyze simultaneously consumers' preferences and attitudes toward

organically grown produce (OGP). Results suggest that consumers who are nutritionally

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

39

CHAPTER NO. 3

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

INSIGHT MARKETING RESEARCH PROCESS AN OVERVIEW- MAIN OBJECTIVE

The essence of research conducted by me is to analyze the customer satisfaction level

of the products supplied by verka and how do the customers rate the products and the

services given by verka. The eventual objective is to suggest some recommendations to

the company so as to enable them to increase the satisfaction level.

40

One in analyzing my samples follows no conventional method. The total analysis is

based on the internees from the question put on before my sample size. A research of

this can’t be done all once throughout large area in a limited time so CHANDIGARH

has been selected for research.

INTRODUCTION

According to Prof. Phillip Kotler,”Marketing research is the systematic, design,

collection, analysis and reporting of the data and finding relevant to specific marketing

situation facing the company”.

Marketing is restless, changing dynamic field. Since 1920 many important and dramatic

changes have taken place in marketing, thousands of new products including those of

entries of new industries such as automobiles, electronics and computer, textile, walk

product etc. have appeared in the market. The market orientations have changed from

production to market.

STEPS OF MARKETING RESEARCH PROCESS:-

DEFINING PROBLEM AND RESEARCH OBJECTIVES

DEVELOPING THE RESEARCH PLAN

COLLECTION OF DATA

PRESENTATION OF THE FINDINGS

The first step of marketing research is defining the problems and research objectives.

Following are the problems and objectives which are to be defined:

41

# To ascertain the frequency of using Verka product.

# To ascertain rescannable price of Verka products.

# To ascertain the best product of Verka brand. .

# why people prefer Verka kheer.

# To know about sales pattern.

# To know the competition level faced by Verka products in the

market

# To know the opinion of people about Verka products regarding

its

Taste,quality etc.

DEVELOPING THE RESEARCH PLAN

The second step of marketing research process calls for developing the most efficient

plan for gathering the needed information. While designing a research plan we have to

take decisions regarding data sources, search approached, search instruments,

sampling etc. There are two plan contact methods which are as follows:

1. DATA SOURCES

There are two types of data sources

a. primary data

b. Secondary data

a .Primary Data:-

Personal interviews are conducted which enable collection of oral verbal response.

This is face to face contracted with structured or sometimes even unstructured patterns.

This helps in obtaining indent information.

42

b. Secondary Data:-

Secondary data can be obtained from different Milkfed magazines and annual reports,

financial documents referred

2. RESEARCH APPROACH

Survey Method :

- Survey are best suited for descriptive research companies which undertake surveys to

learn about peoples’ knowledge, beliefs, preferences, satisfaction etc. to measure these

magnitude in the general population. While observation and tours are best suited for

exploratory research which is not the case of our study.

3. RESEARCH INSTRUMENT

Questionnaire A questionnaire is prepared and used to collect the information. The

majority of questions are close ended. Questionnaire is distributed to people to know

about their preferences, tastes, demands etc. This is one of the easiest methods of

collecting information.

4. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a sampling

plan. This plan calls for three decisions:

a. Sampling Unit:- Here we define what is to be surveyed i.e. the

target population that will be sampled. In our case the general public in cities and towns

come under the sampling unit.

43

b. Sample Size:- Large samples give more reliable results. In

our study 100 customers were surveyed in Chandigarh.

c. Sampling Technique :- Random sampling is used because it

is not practically possible to visit all places of Punjab therefore Chandigarh chosen for

survey.

5. CONTACT METHOD:-

In this decision is taken that how the object should be contacted i.e. whether by

questionnaire, interviews. In our research personal interview is the most convenient and

reliable method.

6. COLLECTION OF THE INFORMATION:-

The data collection phase of the marketing research is the most expensive and most

error prone process. There can be error as some respondent can give biased or

dishonest answer for the collection of the information. The researchers personally go to

customers to collect the reliable data. Here all knowledge of the researcher about that

field comes to test the ingenuity of the research.

Here I got the experience of working professionally and independently on the road

which gives some taste of practical marketing. I also got a lot of exposure about the

market. The present study undertaken is descriptive in nature and in this study

questioning people with regular expertise in that are being used.

44

CHAPTER NO. 4

ANALYSIS AND FINDINGS

ANALYSIS & INTERPRETATION

1.Kind/source of milk purchased?

Packed 34

45

Dairy 25

Milkman 41

Fig 5.1

Packed34%

Dairy25%

Milkman41%

Packed Dairy Milkman

Fig 5(a)

Interpretation: According to 100 respondents 34% people says that they use to use

packed milk, 25% says they use dairy milk and rest 41% says they use milk brought by

milkman.

2:How you ever used Verka Products?

Answer Percentage

Yes 60

No 40

Fig 5.2

46

60%40%

Percentage

Yes

No

Fig 5(b)

Interpretation: According to 100 respondents 60% people says that they use to verka

product and 40% people do not use verka product..

3:From the following which Verka products you have used?

Products Percentage

Milk 55

Ice-Cream 25

Lassi 5

All & Others 15

47

Fig 5.3

Fig 5(c)

Interpretation: According to 100 respondents 55% people says that they use to use

packed milk, 25% says they use ice cream and 5% says they use verka lassi and rest

are 15% used other product of verka.

4:Since when you are using Verka milk Product?

Time in Years Percentage

1 57

1-5 34

More than 5 9

Milk Ice-Cream

Lassi All & Others

0

20

40

60

Percentage

Percentage

48

Fig 5.4

57%34%

9%

Percentage

1

1-5

More than 5

Fig 5(d)

Interpretation: According to 100 respondents 57% people says that they are using the

milk product last one year, 34% from 1 to 5 year and 9%people using the milk more

than 5 year..

Q5:Do you think whether the price is reasonable for Verka milk products?

Answer Percentage

Yes 45

No 55

Fig 5.5

49

45%55%

Percentage

Yes

No

Fig 5(e)

Interpretation: According to 100 respondents 45% people says that the price of verka

milk product is reasonable and remaining 55% people says that the price is not

reasonable.

6: What do you think about the packing of the different Verka products?

Answer Percentage

Good 68

Ok 8

50

Satisfactory 9

Poor 15

Very poor 0

Fig 5.6

Good

Avera

ge

Satisf

acto

ryPoo

r0

20406080

Percentage

Percentage

Fig 5(f)

Interpretation: According to 100 respondents 68% people says that the packing of

verka products are good, 8% people says that packing is ok, 9% says satisfactory and

remaining 15% says that the packing of verka products are poor so according to this

analysis packing is good.

7:In your opinion taste of the Verka products are?

Answer Percentage

Good 64

Average 8

51

Satisfactory 18

Poor 10

Very poor 0

Fig 5.7

Good

Avera

ge

Satisf

acto

ryPoo

r0

20406080

Percentage

Percentage

Fig 5(g)

Interpretation: According to 100 respondents 64% people says that the taste of verka

product is good, 8% says that its taste is average, 18% people satisfactory with this and

10% people says that the taste is poor.

8.What is your opinion about the quality of the various Verka products?

Answer Percentage

Excellent 13

52

Good 51

Satisfactory 26

Poor 10

Very poor 0

Fig 5.8

Excellent Good Satisfy Poor0

102030405060

Percentage

Percentage

Fig 5(h)

Interpretation: According to 100 respondents 13% people says that the quality of verka

products are excellent, 51% people says that the quality is good, 26% people satisfy

with this and remaining 10% people says that it is poor.

9.Are you aware that full cream milk is the best for growing children & sports person as

it contain 6.0% of fats?

53

Yes 63

No 37

Fig 5.9

No37%

Yes63%

Yes No

Fig 5(i)

Interpretation: According to 100 respondents 63% people says that they are aware

about that full cream milk is the best for growing children & sports person as it contain

6.0% of facts and rest 37% says that they are not aware that full cream milk is the best

for growing children & sports person as it contain 6.0% of facts.

10:Have you ever seen the advertisement of the Verka Products?

54

Answer Percentage

Yes 24

No 76

Fig 5.10

24%

76%

Percentage

Yes

No

Fig 5(j)

Interpretation: According to 100 respondents 76% people says that they have not seen

the verka advertisement and 24% says that they have seen the advertisement. As clear

from analysis mostly people have not seen the verka advertisement.

11:When you like to buy verka products?

55

Answer Percentage

During Traveling 27

For Break 18

As a Health Tonic 35

For Enjoyment 20

Fig 5.11

Du

rin

g T

r...

Fo

r B

rea

k

As

a H

ea

l...

Fo

r E

njo

y

010203040

Percentage

Percentage

Fig 5(k)

Interpretation: According to 100 respondents 27% people says that they like to buy

verka products during traveling, 18% people buy during break time, 35% people buy as

a health tonic and remaining 20% buy verka products only for enjoy.

CHAPTER NO .5

56

CONCLUSION

Conclusion

Working at Verka Milk Plant, Chandigarh gave me an opportunity to apply my skills and

knowledge, which I had gained previously.

1. Based on the random questionnairs that were filled by the population in

Chandigarh we have come to the following conclusion.

2. We found out that more than 60% of the sample size taken has heard about the

products and has used the products at some point of time.

3. A considerable amount of population has seen the verka advertisement and

knows about the latest products and prices offered by the plant.

4. 50% of the population in sample size consider the quality of the verka products

to be good.

5. We conclude from the survey done that more than 50% of the population

considers the services and the quality of the products offered by verka plant good

and they customers are satisfies by it.

CHAPTER NO.6

57

SUGGESTION AND RECOMMENDATIONS

RECOMMENDATIONS REGARDING PRODUCT:-

1. Verka has presently four variants of liquid milk in market but still it is not able to

segment market according to consumers’ preferences. The only differentiation in

these variants is the color of the packs. Variants name should be printed on the

packs in such a way that they are clearly visible to the consumer.

2. Plain lassi which comes in one litre pack only should be available in smaller

packs like 250ml or 500ml.

3. Kheer is available in 125gm pack, which is quite small and is recommended to be

packed in larger pack like family size packs so that it can be consumed

conveniently as a sweet dish by whole family.

RECOMMENDATIONS REGARDING PLACE

1. Milk consumer values from delivery and a lot of distributors are already providing

this facility. Milk plant should think of giving extra commission to its dealers for

ensuring such facilities.

2. There is need to communicate regularly and taking feedback from agents.

Monthly meetings will help in improving the relation with dealers. The declaration

of the prices like “Fastest Growing Dealer” OR “Highest selling Dealer” can be

announced bi monthly or bi annually to motivate dealers to increase their sales.

3. Shortage of products is seen in Sunam so distribution network should be

improved for the same.

RECOMMENDATION REGARDING PROMOTION

58

The following steps can be taken in the field of promotion:

1) Using electronic and print media for information dissemination:

In recent days, there has been lots of new highlighting adulteration of food products that

is making people skeptical about packed food products. Special programs highlighting

supply chain of milk producers ‘ co-operatives can be screened and telecasted on TV

from time to time .news highlighting achievement of milk plant can also be published in

news papers which will help in creating favorable image for verka products.

2) Inviting people for plant visits on weekends:

Plant can be opened to general public for visit on Saturday and Sunday for a limited

time interval in order to win their trust on verka products. This can be done through

collaborating with Radio Fm channels where winners can get free visits and some

limited period coupons.

3) Toll free telephone for customer feedback:

Presently verka products have a telephone number printed on their packs but this is not

toll free. A toll free number should be there and printed in such a color or font that is

easily differentiable from the rest of the text on the pack.

Recommendations regarding pricing:

Following suggestions can be considered for improving pricing strategies of companies:

1) Introduction of coupon system;

Milk is the commodity that is daily bought and consumed within households. It is

cumbersome for consumers to make payment daily as change for currency is not

available at times. They are offered candies in return for change which many of the

59

consumers do not like. This problem can be solved by introducing milk coupon which

can be bought from agencies. Coupon system has been successfully implemented by

several individual distributors in their respective areas. It is needed to be implemented

in entire city.

2) Pricing in round figures:

Milk sellers often do not have fifty paise coin or change with them so they often sell milk

at higher prices .this problem can be curbed by keeping the prices in whole number

multiple of rupee. People buying milk using coupons can be this discount of fifty paise.

This will encourage more people to for milk coupon.

Limitations of research:-

1) Due to chandigarh being a large city, it was not possible to interact with people from

all over the city or even district.

2) Few consumers were reluctant to fill the questionnaire as they perceived us as sale

men and also shown reluctance in giving their contact numbers.

3) Time period for the project execution was less as ample time could not be given to

each customer and vice versa as they have to fulfill their other obligations also.

4) Interaction with dealers was also difficulty as they were busy with their customers

most of the time.

5) There is no measure to check out whether the information provided by the

consumers is correct or not.

BIBLIOGRAPHY

60

During the making of the project report various books are consulted:

The main books which helped me during the project are:

PRINCIPLES OF MARKETING BY PHILIP KOTLER, GARY ARMSTRONG,EDITION-

13TH EDITION(2010),PEARSON PRENTICE HALL(NOIDA)

SALES AND DISTRIBUTION MANAGEMENT BY KRISHNA K HAVALDAR AND

VASANT M CAVALE,EDITION-5TH EDITION (2008),TATA McGRAW HILL(NEW DELHI)

RESEARCH METHODOLOGY BY C.R.KOTHARI,EDITION-2ND EDITION(2009),NEW

AGE INTERNATIONAL PUBLISHERS(BENGALURU).

WEBLIOGRAPHY:-

www.milkfed.nic.in

www.milkfed.jp

www.milkfed.org

ANNEXURE

QUESTIONNAIRE

61

The activity is for the welfare of the Customers of verka product and collection of

information about quality,quantity and competitor products of verka.

Date________/Time_________

1.Name:- ______________________________________________________________

2.Address :-

________________________________________________________________

________________________________________________________________

3.Contact no.:-

______________________________________________________________

4. Kind/source of milk purchased?

Packed

Dairy

Milkman

5. How you ever used verka product?

Yes

No

6. From the following which verka products you have used?

62

Milk

Ice cream

Lassi

All & others

7. since when you are using verka milk products?

One year

1-5 years

More than 5 years

8. Do you think whether the price is reasonable for veka milk products?

Yes

No

9. What do you think about the packing of different verka products?

Good

Ok

Satisfactory

Poor

10. In your opinion taste of verka products are?

Good

63

Average

Satisfactory

Poor

11. What is your opinion about the quality of the various verka products?

Excellent

Good

Satisfy

Poor

12. Are you aware that full cream milk is best for growing children & sports

persons as it contains 6.0% of fats?

Yes

No

13. Have you ever seen the advertisement of verka products?

Yes

64

No

14. When you like to buy verka products?

During traveling

For break

As a health tonic

For enjoyment

Signature

65

66