Organisational Study & Marketing Distribution Channels Towards Karnataka Milk Federation (KMF)

Project On Organisational Study & Marketing Distribution Channels towards Karnataka Milk Federation (KMF)

Submitted in partial fulfillment of the requirements for f or Award of Master Program for Business Administration

With Specialization In Marketing

Submitted by Suresh Babu .P Reg No- MBA/08/62 or 151

Under the Guidance of Mr. ANAND BABALESHWAR. District sales head, “Dharwad Milk Union”

Indian Institute of Business Management Shivajinagar, Pune – 411 005

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CERTIFICATE

This This is to certif certify y that that the disser dissertat tation ion work work titled titled Organis Organisatio ational nal Stu Study dy & Marketi Marketing ng Distribution Channels towards Karnataka Milk Federation (KMF) is a bonafide work

carried out by Suresh Babu .P a candidate for the award of Master Program for Business Administration of Indian Institute of Business Management , Pune under my guidance and direction.

Date: ___________

Signature of guide

Place: ___________ Name: Mr. ANAND BABALESHWAR. Designation: District sales head. “Dharwad Milk Union”















ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning of the people who made it possible. So with gratitude I acknowledge who served as a s an “inspiration” and my efforts with success. I express my profound sense of gratefulness to my project coordinator and external guide for my project,

District sales head, “Dharwad Milk Mr. ANAND BABALESHWAR. BABALESHWAR. District

Union”, for giving me this opportunity to take up this study and his support, encouragement

and valuable timely advice.

I am also indebted to contribution of all the employees of Dharwad Milk Union in extending their support and co-operation giving shape to my project study.

Chairma man n Dr. Dr. Kh Khal alee eell Ahme Ahmed d Gu Gula lam m Hu Husse ssein in My spec specia iall than thanks ks to my Inst Instit itut utee Chair Kakamari who is kind enough in providing all the facilities and helped me in completing my

project.

I extend my sincere thanks to my internal guide Rohit Rohit .C. Kalaskar Kalaskar, Secretary General Academic Director who guided me throughout the project and kind and co-operative during

my training period.

I am greatly thankful to Indian Institute of Business Management, Pune for giving practical knowledge about the industrial sector by including this Major Concurrent Project for four months as a part of curriculum in the MBA course.















CONTENTS

Chapter 1

Rationale for the study

01-01

Chapter 2

Objective of the study

02-02

•

Title of the project

•

Objective of the study

•

Scope of the study

Chapter 3

Profile of the company

03-43

Chapter 4

Theoretical Perceptive

44-44

Chapter 5

Research Methodology

45-46

Research Design Data collection methods / sources Sampling plan which should include sampling un it, sampling size and sampling methods via questionnaire methods, interview methods, observations etc

Chapter 6

Data analysis and interpretations using various charts and

47-58

graphs Chapter 7

Findings

59-59

Chapter 8

Limitations if any

60-61















Chapter 1:- RATIONALE OF THE STUDY The project is three different stages. The objective of undertaking this project i.e. phase first is “To find out the requirements in the area of respective retailers” and “To work for expansion of retail distribution network” for implementation of a value driven retail chain for effective linkage between consumer and organization and to give suggestions for further improvement. This is the project has been completed with the help of primary data. A survey has been conducted to know that how the Distribution Network working and what are the problems being faced in distribution. As per objective I have find out the possible ways to improve the efficiency and effectiveness of distribution network. I found that there are some problems such as Lack of retail outlets, Supply problems, problems, improper supervision, supervision, which have to be improved improved and rectified rectified and hence we have proposed some recommendations also. The objective of second part is to know the relationship of sales with the advertisement & to know awareness of people towards new Nandini Milk and milk products Ad by marketing survey i.e.post Ad tracking focusing three segments (youth, children & house wives) The objective of third phase is to promoting of the nandini milk in Hubli City. As a part of our recommendation, I have proposed about maintaining product quality according to the sales. sales. Reason for selecting selecting dealers of Hubli as my respondents respondents is because Dealers of these places play as the major purchaser of various varieties of products of the company. The information required to gain insights regarding the Sales promotion activities these are the best available sources















Chapter 2:- TITLE OF THE PROJECT; Organisational Study & Marketing Distribution Channels towards Karnataka Milk Federation (KMF)

OBJECTIVE OF THE STUDY ➢

To find out the various strategies to be adapted by nandini sales.

➢

To find various ways to increase nandini milk sales in Hubli.

➢

To discover the various factors which hurdles people to take nandini milk.

➢

To identify various factors which motivates people to use nandini milk

➢

To get the retailer’s wants in terms of product selling.

➢

To know effectiveness of the marketing strategy and sales promotions in market.

➢

Ensuring the visibility of the product.

➢

Ensuring the availability of products in outlets.

➢

Analyzing the effect of scheme.

➢

Analyzing the effect of discounts.

SCOPE OF THE STUDY The research study will help to identify & analyzing analyzing the dealers dealers and customers perception perception towards the existing products of the company and the promotional activities undertaken by the organizations situated at Dharwad.

















KARNATAKA MILK FEDERATION

The first dairy in Karnataka is started in Kudige in Kodagu district district in 1955. Nandini milk product project is initially a government of India project established on 1st April 1973 and handed handed over to the Governm Government ent of Karnat Karnataka aka constit constitute uted d by KDDC KDDC (Karna (Karnatak takaa Dairy Dairy Develop Developmen mentt

Corpor Corporati ation) on) Furthe Furtherr in June 1974; an integr integrate ated d projec projectt is launched launched in

Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to arrange foundation for a new direction in dairy development. In 1975, 1975, the the Worl World d Bank Bank aide aided d dairy dairy deve develo lopm pmen entt was was init initia iate ted. d. The The pres presen entt Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnat Karnataka aka Dairy Dairy Develo Developme pment nt Co-ope Co-operat ration ion,, small small co-ope co-operat rative ivess and Karnat Karnataka aka Milk Milk Production Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants are been set-up to supply nitrogen, which is used for refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases, three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation

















•

To build build villag villagee level level instit instituti utions ons in co-ope co-operat rative ive sector sector to manage manage the dairy dairy activities.

•

Providing Hygienic Milk to Urban Consumers.

•

To eliminate the problems of duplicating and over lapping.

•

To expand the market.

•

To ensure ensure Milk Milk Produc Productio tion n for self-e self-empl mploym oyment ent at villag villagee level level prevent preventing ing migration to Urban Areas introducing cash economy and opportunity for regular Income.

•

The philosophy of Dairy Development is to eliminates middle men and organize institution to be owned and managed by the milk producers themselves, achieving economics of scale to ensure maximum return to milk producers at the same time providing wholesale Milk at lowest possible price to urban Consumers.

Units of KMF:

KMF has the following units function directly under its control: • • • •

Mother Dairy, Yelahanka, Bangalore Nandini Milk Products, KMF, Bangalore Cattle Feed Plants at Rajakunte / Dharwad/ Hassan Nandini Sperm Station at Hessaraghatta

•

Pouch film plant at Munnekolalu, Marathahalli

•

Central Training Institution at KMF Complex, Bangalore.

















3)

Mysore & Cham hamaraja Na Nagar Milk Un Union

4)

Mandya Milk Union

5)

Tumkur Milk Union

6)

Hassan Milk Union

7)

Dharwad Milk Union

8)

Belgaum Milk Union

9)

Bijapur Milk Union

10)

Gulbarga Mi Milk Un Union

11)

Dakshi kshin na Ka Kanna nnada Mi Milk Un Union

12)

Shimoga Milk Union

13) 13)

Raic Raichu hurr – Bell Bellar ary y – Kopp Koppal alaa Mil Milk k Uni Union on

Achievements:

1)

Bang Bangal alor oree Milk Milk Union Union,, Daksh Dakshin inaa Kanna Kannada da Milk Milk Uni Union on and and Mothe Motherr dairy dairy hav havee obtain ISO 9001-2000

2)

92% of fun funct ctio ioni ning ng mil milk k produ produce cers rs coco-ope opera rati tive ve soc socie ieti ties es ear earni ning ng pro profi fitt

3)

At pres present ent on aver averag agee of Rs. Rs. 205 205 lak lakhs hs is is pai paid d per per day day to milk milk prod produce ucers rs

4)

Esta Establ blis ishm hmen entt of ice ice cre cream am plan plantt of capa capaci city ty 300 3000 0 LPD LPD at a cost cost of of Rs. Rs. 3 crore croress which is being expanded.

5)

Esta Establ blis ishm hment ent of mil milk k powd powder er pla plant nt at at Moth Mother er dai dairy ry of 30 30 MT’s MT’s cap capac acit ity y per per day day at a cost of Rs. 22 crores.

















Dire Direct ctor or Dire Direct ctor or Dire Direct ctor or Dire Direct ctor or Add’al HRD Anl HusMarketing Marketing Director bandry R&D

Joint Dir Finance/ M/s

Joint Dir Purchase

Dire Direct ctor or STEP

Add’a Add’all DDIL

Qty. Control

Joint Dir co-operative Audit

MD Bangalore

MD Mandya

MD Belgaum

MD Mysore

MD Bijapur

MD Bellary

MD Dakshina Kannada

MD Shimoga

MD Dharwad

MD Tumkur

MD Gulbarga MD Hassan MD Kolar

Director Director

















Personal

Assistant Director

Superintendent

Superintendent

Translator Administrative Administrative Asst I Senior Typist Administrative Administrative Asst. II Administrative Administrative Asst. III Attenders

Introduction:

Human Resource Management is a part of management. This part is concerned with the people and their relationship within an organization.



















1)

To empl employ oy the the ski skill llss and and abil abilit itie iess of the the wor work k for force ce effi effici cient ently ly..

2)

To pro provi vide de the the org organ aniz izat atio ion n with with wel welll tra train ined ed and and wel welll mot motiv ivat ated ed emp emplo loye yees es..

3)

To incre increas asee the the empl employ oyee eess sati satisf sfac acti tion on and selfself-ac actu tual aliz izat atio ion n to the the comp comple lete te extent.

4)

To deve devellop and and mai maint ntai ain n a qua quali litty of of wor work k lif life. e.

Functions :

1)

Asse Assess ssin ing g and and recr recrui uiti ting ng staf stafff base based d on the the need needss spec specif ifie ied d by the the depa depart rtme ment nt..

2)

Sel Select ecting ing the the requi equire red d cand candiidate datess as per per the requ requiiremen ementt by fol followi lowing ng prepredetermined procedures.

3)

Enla Enlarg rgin ing g the the jobs jobs of the the emp emplo loye yees es if nece necess ssar ary. y.

4)

Desc Descri ribi bing ng the the job jobss by iss issui uing ng the the job job cha chart rt to to empl employ oyees ees to to carr carryo yout ut the the spe speci cifi ficc work.

Human Resource Planning



















pool of recruitment candidates for the final selection. These 10 candidates are selected by mainly two tests: a) Qual Qualiifying ying Test Test b) b) Writ ritten ten Test est After the candidates cross the 2 tests the best 10 candidates for each post are selected and sent for the final interview which is an oral interview. In the final interview the required candidates are selected.

Orientation & Placement

Here basically whenever a new employee is selected, the supervisor of that particular division introduces the new employee to the staff and assigns work to the employee. The supervisors not only assigns work to the employee but also inform him about the procedures to be followed by him to report to his immediate supervisor, his duties, responsibilities, his rights and his limitations in the federations.

Training and Development:



















Incentive Payments:

Employees are paid bonus once in every year depending on profits done on festive season.

Employee Welfare

KMF has implemented many methods to help the employee’s. The employees are given: a.

Pension Scheme

b.

Group gratuity Scheme

c.

Group Pe Personal Ac Accident In Insurance

d.

Grou Group p Insu Insura ranc ncee Sche Scheme me (de (deat ath h of the the empl employ oyee ee his his nom nomin inee ee wil willl be benef benefit ited ed). ).

Safety and Health:

The measures followed for the protection of employees are:



















Disputes and their Resolution:

KMF has never faced any problems with the trade unions. Whenever any person of the union approaches the management care is taken to see through that their problem is heard and solved.

CENTRAL TRAINING INSTITUTE

Director

Additional Director

Senior Deputy Director

Doctors



















of the members of milk unions and KMF and also the staff and representatives of allied govt. depot. The objectives are:

1)

To hum humbl blee objec objecti tive ve of trai traini ning ng in the the memb member erss of the the vil villa lage ge lev level el coco-op oper erat ativ ivee and field staff undertaking extension works. The objective today is largely oriented towards human resource department.

2)

Trai Traini ning ng prog progra rams ms are are taken taken in key key areas areas such such as fina financ nce, e, mark market etin ing, g, prod produc ucti tion on and operation management. & technical program.

Mode of Training:

1)

Who are Trainers? The trainers are usually doctors or highly qualified employed professors.

2)

Who are the Trainees? Farmers or employees appointed by the KMF.





















Canteen:

A fully equipped canteen facility exclusively for the purpose of the trainers residing at the hostel

Transportation:

The institution has 2 mini buses and a jeep for transport of the trainees for visits to institutions for in plant exposure training. Recreation:





















Senior Typist





















1)

To upda update te the the inf infor orma mati tion on abo about ut proc procur urem emen ent, t, sal sales es,, cost cost,, exp expens enses es etc. etc.

2)

To col colle lect ct the the inf infor orma mati tion on at at mini minimu mum m cost cost at at the the rig right ht tim timee from from the the mil milk k unio unions ns,, milk units and chilling centers.

3)

To sto store re the the dat dataa in a con conve veni nien entt patt patter ern n whic which h can can be ret retri riev eved ed

Functions :

1)

Peri Periodi odica call (dail (daily, y, week weekly ly,, month monthly ly,, yearl yearly) y) coll collec ecti tion on of data data in pres prescr crib ibed ed form format atss from all over 13 milk union and an d 9 milk units of KMF

2)

Aft After col collect ecting the the infor nform mati ation we cons consol oliidate date,, ver verify ify and and comp compiile var various ous





















Accountant Assistant

Grade - I

Grade - II





















•

Providing services to the member milk unions and its societies and in the process making profit.

“No Organization can survive without Profit”. Though the objective of the federation is not to make absolute profit, the profits are incidental to the business.

Functions:

The functions of raising funds, investing them in assets and distributing returns earned from assets to shareholders are respectively known as financing: •

Co-ordination with units and member milk union for easy flow of funds.























Application of Funds Fixed assets Investments Current Assets, Loans & Advances Cash & Bank Balance

5 6

521900250.25 72555700.00

529244015.86 72553450.00

7

271905861.16

260511530.09























Expenditure

Opening Stock

12

168775053.39

204147815.09

Purchases

13

2015762855.73

1682906815.21























Expenditure:

Salaries wages & other benefits 20%

16

32206862.67

36545710.99

Administrative expenses-Rent, Rates, Taxes

20

57596279.01

3610665.01























Debit:

Reserve Fund

104488743.89

Building Fund

20164875.00























Purchase department is also called as “Integrated Materials Management”. It mainly contain containss buying buying of raw materi materials als,, invent inventory ory planni planning, ng, and store store keeping keeping and materi material al planning.



















































































































































































































































































































































































































































































Organisational Study &amp; Marketing Distribution Channels Towards Karnataka Milk Federation (KMF)

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