ORGANISATIONAL ORGANISATIONAL STUDY OF MITHILA DUGDH UTPADAK SAHKARI SANGH LTD Submitted in partial fulfillment of the requirements of The M. B. A. Degree Course of Bangalore University
Submitted By
Priyadarshi Kundan Under The Guidance Supervision OF
P.K.Sinha
Mr. B.Srinivasion
(Incharge (Mktg)cum Assistant Manager) (External Guide)
Professor, MPBIM (Internal Guide)
M. P. BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan # 43 Race Course Road, Bangalore-560001 2006-08
Executive Summa Summa ry The training at MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) IN SAMASTIPUR
helped us gain the practical experience and the study conducted by me
centers around the importance and position of different dairy industries. A thriving dairy sector is of vital importance to every person specially farmers. It provides milk, Ghee, Cheese other products to every person. It provides a source of income to rural and urban enterprises and productive individuals and also a way for the farmers to make their living standard high. During my summer training in MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA),the
basic focus of my training was on comparative analysis of pouched liquid
milk of SUDHA. Under this project I had to find out the different players carrying on business of liquid milk in Samastipur and also their market share in the same region. After that we had to make comparative analysis so that we can recommend suggestion to the MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) to increase its share in the market in Samastipur. The training was quite a comprehensive one in itself, it helped us to have the knowledge in the following:-
Executive Summa Summa ry The training at MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) IN SAMASTIPUR
helped us gain the practical experience and the study conducted by me
centers around the importance and position of different dairy industries. A thriving dairy sector is of vital importance to every person specially farmers. It provides milk, Ghee, Cheese other products to every person. It provides a source of income to rural and urban enterprises and productive individuals and also a way for the farmers to make their living standard high. During my summer training in MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA),the
basic focus of my training was on comparative analysis of pouched liquid
milk of SUDHA. Under this project I had to find out the different players carrying on business of liquid milk in Samastipur and also their market share in the same region. After that we had to make comparative analysis so that we can recommend suggestion to the MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) to increase its share in the market in Samastipur. The training was quite a comprehensive one in itself, it helped us to have the knowledge in the following:-
Declaration I Priyadarshi Kundan do hereby declare that the ORGANISATIONAL STUDY IN MITHILA DUGDH UTPADAK SAHKARI SANGH LTD . has been accomplished by me under the eminent guidance of Prof.B.Srivinasion,Faculty, M.P. Birla Institute of Management, Bangalore.
I submit this report in partial fulfillment of the requirements for the awarding of Master of Business Administration degree of Bangalore University during the academic year 2006-2008, and not for the award of any degree of another University or Institute.
Place: Bangalore. Date:
Priyadarshi Kundan
PRINCIPAL.S CERTIFICATE
This is to certify that the internship report titled .”ORGANIZATION STUDY”. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR has been prepared by Mr. Priyadarshi Kundan , under my guidance. This has not formed a basisfor the award of any Degree/ Diploma by Bangalore University or anyother university.
Place: Bangalore Date:
Mr. Nagesh Malavalli (Principal)
GUIDE.S CERTIFICATE
This is to certify that the internship report titled .ORGANIZATION STUDY. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR has been prepared by Mr. Priyadarshi Kundan , under my guidance. This has not formed a basisfor the award of any Degree/ Diploma by Bangalore University or anyother university.
Place: Bangalore Date:
Mr. B.Srinivasion (Project Guide)
PREFACE I feel my selves very grateful that we have got an opportunity to do the summer training in SUDHA where the management and working culture are quite excellent. It gives us immense pleasure to have successfully undergone training in the FMCG sector, which is the upcoming sector in the industry. This training was quite a comprehensive one in itself, it helped us have the first hand experience in: -
•
Identification
•
Data collection
•
Analysis
•
Recommendation/Suggestion
Identification-It is the process of defining the marketing problem and marketing research problem Data collection and management- it mainly involved maintaining a list of prospects with details and classifying on certain basis thus providing the required database. Analysis-.It is the process of editing, tabulating, and interpreting the data so that recommendation for action can be effectively made. Recommendation- It is the last step which involves the feedback, and suggestion for the project
ACKNOWLEDGEMENT I am privileged that I have successfully completed my training with the highly acclaimed organization- MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR I am indebted to Mr.P.K.Sinha (Asst..Manager),Mr. Ashok Kumar Singh and Mr.C.B.Mishra (Administration), my project guide under whose guidance I was able to take the initial steps into the corporate world and also have the experience of the market. Their selfless service has made this journey quite interesting and a feeling to go a long way. Their training and guidance, support and inspirations, and the brand name of SUDHA were quite effective in helping me to successfully complete the project . The talented and experienced staff in the field job of MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) IN SAMASTIPUR
All Staff in Sudha Dairy subordinates deserve praise for imparting information necessary for the project and helped me for completing the training successfully. Special thanks to other batch mates who were cooperative all through the training and also to my parents who gave me the much needed encouragement to go on.
INTRODUCTION Milk is the nutrient-rich liquid secreted by the mammary glands of female mammals . The female ability to produce milk is one of the defining characteristics of mammals. It provides the primary source of nutrition for newborns before they are able to digest other types of food. The early lactation milk is known as colostrums, and carries the mother's antibodies to the baby. It can reduce the risk of many diseases in the baby.
Contents 1. Executive Summary 2Objective of the Study 3 Scope of Study 4 Limitation of Study 5 Methodology 6 Introduction to the problem 7 Hiostory of Mithla diary 8 Department & their Executives 9 History of Comfed 10 Background 11 Area of Operation 12 Physical performance 13 Marketing of Milk & Milk products 14 Process infrastructure 15 Milk procurment of Mithla Milk Diary 16 Graph 17 Milk marketing at Samastipur town 18 Marketing of Mithla Dugdh utpadak Sakari Sangh ltd Samastipur 19 Graph 20 Demand and its variations 21 Distribution system at Samastipur Diary 22 Products profile 23 Distribution Strategy 24 Process flow chart of milk 25 Consumer behavior 26 Data analysis of Consumer behavior 27 Platform : Test of milk 28 Research Methodology 29 Conclusion 30 Suggestion 31 Questionaire
Objective of the Study
Objective of Internship Training:
To know the organization structure of the company.
To know functions of various department .
To understand the work culture.
To help student to develop necessary interpersonal and managerial Skills.
To gain well rounded view of Management operations.
To gain first hand experience from industry.
To make assessment of the organization in the industry. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.
Scope of the study
The scope is limited to the extent of the place, time, organization and their information collected during the project. It is done as a part of academic study. The scope o f the study limited to information supplied by the Department Head and information collected by standing order and settlement copies of the company. The information collected is limited to the academic knowledge gained by the student during the study of the course. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.
Limitation of the Study The study is not proposed to be an expert study as it was done by a student for the purpose of a partial fulfillment of the course in the in plant training, which is an integral part, in completion and reward of MBA. The Study was conducted in a short period of six weeks, and so the finding cannot be generalized for all times. Some of the information's being confidential was not included in the study. The scope of the study by and large is very vast. It is difficult to satisfy all the areas; therefore an attempt is made to cover as much as possible. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.
Methodology
The data colleted for this report is as follows: Primary data Secondary data Primary data: The primary data is collected through: 1. Personal observation. 2. Interview with: Consumers • • Marketing Department Account Department • • Procurement Department
Secondary data: The secondary data has been collected with reference to various records of the company, Such as: 1. Website: www.compfed.co.in 2. Files
AN INTRODUCTION TO THE PROBLEM Now a days most sensitive problem is better solution of problem in the world of marketing management consumer wants better solution of any problem. Benefits and satisfaction the consumer are getting from goods manufacturing to service generation since the concept of marketing management has changed and now it becomes as consumer oriented. The marketing managers are suppose to perform multidimensional responsibility. Must of the company tries to develop the technology to improve there products and services to satisfied the customer. To satisfy the consumer demand by supplying the right product to right place and on the right time. By globalisation and information revaluation where free trade is imposed in all over the world. For any company to service in the market its distribution channel should be storng. If the distribution channel of any organization would be sound than only it can be complete with its competitors. As for this particular organization is concern it produces milk and milk products which are so perishable in nature. So much products requires minimum time reach in the hands of customers beginning from their manufacturing. So managing sound distribution network is always a crucial job of marketing manager of the concern organization. Because it is the time factor that counts the effectiveness of the manager. Overall distribution strategy involves two things:I.
Decision regarding physical movement of goods.
II .
Decision regarding route of channel of distribution.
But before the decision regarding physical movement of goods it is necessary to decide the route through which the products will move. The longer the distribution channel the more time and money will be invested. So managing an appropriate sound distribution channel is always an important job of marketing manager.
As a student of marketing management I have also tried to understand the mechanism of distribution channel of Samastipur Dairy. After getting an opportunity to apply my theoretical knowledge to the real situation in the Samastipur Dairy ( a unit of Mithila Milk Utapadak Sahkari sangh Ltd.)
During my study I studied the overall marketing practices but specially in the light of Distribution Network and Consumer Behaviour.
HISTORY OF MITHILA DAIRY Sudha dairy , Samastipur is the dairy that suffices the milk requirement of the city and also near by Villages. Samastipur dairy is a main unit of Mithila Dugdh Utpadak Sahkari Sangh Ltd.
Samastipur Dairy is an ISO 900 – 2000 Co – operative dairy. It is situated in Harpur Alwth, Industrial Area Samastipur. All dairies in the state taken over by the Bihar State Co-operative milk producers fedration Ltd(COMFED) in 1983-84 Initially this dairy started a small milk chilling center at Tajpur in 1978 with a handling capacity of 10000 LPD. In 1994 it becomes full fledged Dairy at the industrial area Harpur Alowth, Samastipur . The Mithila Milk Union Comprising the saves milk shed with its area of operation covering Samastipur, Darbhanga and Madhubani districts care th into existence on 14 September 1987. Under the operation “FLOOD” programme of Govt of India . This dairy was registered by the Bihar State Co-operative Societies Act 1935 as Mithila Dugdh Utpadak Sahkari Sangh Ltd. At present approx 160000 LPD of milk is processed in the Samastipur Dairy . Mithila Dugdh Utpadak Sahkari Sangh Ltd today manage the milk chilling center at Rosera (10000 LPD) and the packing station cum chilling center at Darbhanga (20000 LPD). The union is managed by an elected board of directors and the 11 farmer members belonging to the DCS at village level. The union is comprises of 700 samiti now. Now dairy is arranging milk collection at village level and paying remunerative price on the basis of quantity and quality (as% kg SNF / FAT), enhancing milk production by supplying of balance cattle feed and fodder seeds, mineral mixtures , ca etc to the door – steps of the farmers daily on no loss – no profit basis through the milk transport vehicles. At present Samastipur Dairy Selecting appropriate cost effective and eco- friendly process and technology , producing high quality products and safe food and delighting its customers.
DEPARTMENT AND THERE EXECUITIVES IN SAMASTIPUR DAIRY Account Section: Accountant – Sri Manadeo Ram Administration – Sri C.B.Mishra Marketing – Sri P.K.Sinha Store – Sri B.K.Singh Procurement – (I)-Sri Ganauri Prasad (II)-Sri V.K.Jha A.I.Store – Smt. Pratibha Kumari Feed (Sudha) for Cattle. (Store) (from Ranchi) – Sri B.K.Singh Plant – Md. Zamiruddin Quality Control – Mr. P.K. Sinha cum Lab Engineering – Sri Sanjay Prasad
HISTORY OF COMFED 1 2 3 4
Backgorund Area of Operation Physical Performance Marketing A . Liquid Milk Marketing B . Milk Products Marketing 5 Processing Infrastructure
HISTORY OF COMPFED ( BIHAR STATE CO-OPERATIVE MILK PRODUCERS’ FEDERATION LTD.)
1 Background The Bihar State Co-operative Milk Producers’ Federation Ltd. (COMPFED) came into existence in 1983 as the implementing agency of Operation Flood (OF) programme of dairy development on Anand pattern in the State. All the operation or erstwhile Bihar State Dairy Cooperation were handed over to COMPFED. 2 Area of operation Five-district level Milk Producers’ Coop. Unions affiliated to the Milk Federation were covering eighteen districts till the end of Programme in March 1997 (end of Eighth Plan). Number of districts being covered by unions at present has risen to twenty four and in addition, five districts are being covered by the Federation. Further work is being initiated in six districts more. Different milk unions, which are organizing the DCS network in these districts, are listed below: i. Vaishal Patliputra Milk Union, Patna - Patna, Vaishali, Nalanda, Saran and Siwan districts. ii. Barauni Milk Union, Barauni - Begusarai, Khagaria, Lakhisarai, Shekhpura and some villages of Munger and Saharsa districts. iii. Tirhut Milk Union, Muzaffarpur - Muzaffarpur, Sitamarhi, Sheohar, E. Champaran and W. Champaran districts.
iv. Shahabad Milk Union, Arrah
-
v. Mithila Milk Union, Samastipur
-
Bhojpur, Buxar, Kaimur and Rohtas districts. Samastipur, Darbhanga and Madhubani districts.
The Milk Federation has already taken up organization of Dairy Cooperative Societies (DCS) in the districts of Gaya, Jehanabad, Bhagalpur and GOI has approved a proposal for dairy development in Supaul, Madhepura and Saharsha districts. The districts of East and West Singhbhum, Ranchi, Bokaro and Dhanbad are being covered by the dairies directly under the control of Milk Federation for the supply of milk and milk products to the urban consumers in these cities. Procurement of milk has been taken up in Ranchi district only. 3 Physical Performance
Because of initial teething troubles and the set back caused by the natural vagaries, the progress was impeded. Regaining of confidence of the milk producers in the cooperative dairying system shattered due to poor management by erstwhile Bihar State Cooperation earlier was also of one of the major reasons for sluggish growth. Lack of functional infrastructure in the sphere of animal husbandry, especially in breed improvement, artifical insemination (AI) and animal health cover also contributed to the torpid progress. Policy decisions taken six to seven years ago have changed the trend of growth in all quarter’s of cooperative dairying in Bihar. In the earlier years, the emphasis was on the horizontal of dairy cooperative network. Now the strengthening / consolidation of the dairy cooperatives is being done to make them viable and gradual expansion of area is also being done. Achievements under different activities are summarized in the following pages.
4 Marketing A. Liquid Milk Marketing
In the initial years, the emphasis of Compfed was on organising DCS and educating farmers. In the initial years the milk sale moved at snail's speed from Later, marketing was given a boost by considering it a thrust area.About five to 100.55 thousand litres per day in 1987 to 106.54 thousand litres per day (TLPD) in 1992-93. However, stratgegies adopted in 1993-94, changed the trend completely. Year 2003 was declared as "Market Development Year". The daily average milk marketing has now reaced a level of about 531 TLPD showing a continued increase which is depicted below.
Milk Union/Unit Patna Jamshedpur Ranchi Bokaro Muzaffarpur Gaya Bhagalpur Barauni Samastipur Shahabad Total
1987-88 31.54 21.91 7.09 10.84 22.91 3.88 2.47 100.55
1997-98 68.84 53.41 30.02 26.26 27.49 6.78 3.75 6.85 21.55 0.04 245.02
2002-03 89.77 67.85 44.17 36.79 49.58 11.12 6.89 17.27 42.98 12.72 379.13
2004-05 102.68 75.01 52.83 45.71 53.81 13.56 6.77 51.29 52.00 13.27 466.86
2005-06 115.27 81.52 58.55 50.59 53.20 13.45 7.44 47.34 56.19 12.85 496.40
2006-07* 125.71 88.00 64.67 52.29 55.42 15.55 8.51 47.86 54.79 14.73 530.53
*Till Jan 2007. Marketing of milk and milk products is being in about 80 to 85 towns / cities through 5197 (393) outlits in Bihar / Jharkhand / West Bengal. It is being marketed in areas as far as Guwahati and Calcutta besides in cities like Varanasi and Siliguri. In order to boost the sale of liquid milk, the daries adopted the following strategies:i.
Continual improvement in the quality of milk. It was achieved as a result of taking up taking up Dairy Plant Management (DPM) and Quality Assurance Programme (QAP) by all the dairies with technical and kfinancial
assistance from NDDB / Compfed. Nine out of ten dairies of Compfed, namely, Patna, Muzffarpur, Ranchi, Bakaro, Gaya, Bhagalpur, Jamshedpur, Barauni and Samastipur dairy have already been accredited with ISO : 9001:2000 and HACCP : ISO and HACCP certification. Bihar is one of the few States in the country which has been permitted by the National Dairy Development Board to use the “Mnemonic” symbol on the confirming the quality standards fixed by NDDB.
ii.
Reaching close to the consumers by expanding the retail network and establishing new whole day milk booths. Strengthening of door-delivery system.
iii.
Strengthening of marketing teams by inducting professionals and better supervision.
iv.
Service to retailers and redressal of consumer complaints.
v.
Liberalising the terms for appointment of retailers viz. reduction in the security deposits, facility for cash collection, increased commission, etc.
vi.
Creating consumer awareness and education.
B. Milk Products Marketing
With a view to improve the financial viability of dairies, broaden the product mix to serve a larger section of the population and improve the disposal of milk procured by the DCS, the dairies have resorted to the production of long shelf –life, value added and fresh milk products (indigenous milk based products / sweets). The product mix comprises of Ghee, Table Butter, Ice Cream, Dahi (Mishti and Plain), Lassi (in sachets and Tetra Bricks), Flavoured Milk, Peda, Kalakand, Gulabjamun, Rasogulla, Paneer (vacuum-packed), Milk Cake and Khoa. Besides these products, surplus milk is conserved in the form of white butter, skim milk powder
(SMP) and whole milk powder (WMP), which are mainly consumed by own dairies. Dairies are in the process of mechanising the production processes for having better hygiene, improved sheltel life and commercial production . All the products are sold under ‘SUDHA’ brand name. Quantities of different products market table below:
Milk Products Ghee Table Butter Ice-cream Lassi Misti Dahi Peda Paneer Sudha Spl. Plain Curd Kalakand Rasogulla Gulabjamun *Till Sept,06
Marketing of Different Milk Products Units 2002-03 2003-04 2004-05 MTs 1025.6 991.18 942.2 MTs 81.9 44.79 91.9 MTs 255.3 257.53 229.1 MTs 1070.9 1615.13 1703.0 MTs 492.6 538.69 534.0 MTs 409.9 413.12 536.1 MTs 570.5 679.79 796.5 MTs 240.7 224.19 259.2 MTs 647.8 790.61 814.4 MTs 81.7 66.99 115.5 MTs 78.7 95.23 105.6 MTs 75.6 98.51 107.7
2005-06 1870.3 106.4 263.5 2519.0 563.5 614.2 970.3 278.5 1285.1 161.7 186.0 164.8
2006-07* 602.4 70.9 204.2 1983.5 339.0 385.5 619.4 196.4 993.2 79.6 153.6 123.1
MILK PROCUREMENT OF MITHLA MILK UNION
Milk procurement of Mithla milk union is done from the farmers at the village level. In each village or block level a samity is formed. Each samity at the block or village level has an elected president who has the responsibility of supplying the fixed volume of milk. The total procurement of milk in Mithla milk union is: -
(Table3) Sl.No.
MONTH
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
1
APRIL MAY
1280.75 42.69 1374.42 44.34 1733.90 57.80 1838.74 59.31 1828.01 58.97 1826.01 60.87 1716.14 55.36 1750.02 58.33 1957.34 63.14 1535.24 49.52 1831.71 65.42 1918.92 61.90
1772.56 59.09 1750.03 56.45 2050.66 68.36 2132.49 68.79 1821.06 58.74 1794.57 59.82 2064.12 66.58 1802.54 60.08 1974.65 63.70 1700.15 54.84 1921.77 68.63 2047.87 66.06
1894.19 63.14 1978.24 63.81 1982.08 66.07 2511.26 81.01 2082.26 67.17 2401.47 80.05 2012.19 64.91 2095.00 69.83 2153.18 69.46 1931.69 62.31 2211.31 76.25
74.73
2277.69 2277.69 75.92 2194.70 70.80 2303.65 76.79 2138.51 68.98 2471.22 79.72 2485.53 82.85 2229.27 71.91 2145.65 71.52 2561.98 82.64 2488.50 80.27 2597.33 92.76 2881.18 92.94
2547.32 84.91 2814.50 90.79 2852.53 95.08 3313.39 106.88 3425.32 110.49 3384.33 112.81 3601.13 116.17 3338.79 111.29 3620.15 116.78 3394.77 109.51 3291.43 117.55 3190.32 102.91
3198.12 106.60 3613.66 116.57 3628.82 120.96 3661.88 118.13 3702.76 119.44 4240.48 141.35 4359.21 140.62 4527.64 150.92 4620.72 149.06 3943.96 127.22 3940.36 140.73 3978.28 128.33
3718.56 123.95
2
1383.99 46.13 1379.36 44.50 1646.46 54.88 1965.52 63.40 1860.28 60.01 1775.14 59.17 1519.49 49.02 1554.28 51.81 1674.84 54.03 1533.43 49.47 1662.18 59.36 1770.27 57.11 1972 19725. 5.24 24
2059 20591. 1.21 21
2283 22832. 2.47 47
2556 25569. 9.46 46
2877 28775. 5.22 22
3877 38773. 3.98 98
4741 47415. 5.89 89
3718 3718.5 .56 6
54.04
56.41
62.55
69.86
78.84
106.23
129.91
123.95
3
JUNE
4
JULY
5
AUGUST
6 7 8
SEPTEMBER OCTOBER NOVEMBER
9
DECEMBER
10
JANUARY
11 12
FEBRUARY MARCH
TOTA TOTAL L
2316.57
Bold figure indicates average milk procurement per day IN THOUSAND LITRE/DAY
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Graph 3
MILK PROCUREMENT YEARWISE 50000.00 40000.00 G K30000.00 0 020000.00 0 '
10000.00 0.00 2000- 2001- 2002- 2003- 2004- 2005- 200601
02
03
04
05
YEARS
06
07
3.4 MILK MARKETING OF MITHLA MILK UNION :Milk and milk products marketing in Mithla milk union is done through proper supply chain management. Here one distributor is appointed at each district level. Under this distributor several retailer works .so products to the consumer is reached through retailer only. No direct sale of milk and milk product is being made. In Mithla milk union totally there are 15 distributors and about 600 retail outlets. Totally they cover the population of 7,49,870 consumers. Here per capita consumption is about 150ml per consumer. From the data it becomes clear that about 1549consumers are covered through single outlet. From the factory milk reaches to the distributor and from their it reaches to retailer and finally to consumer.
FACTORY
DISTRIBUTOR
DISTRIBUTOR
RETAILER
RETAILER
CONSUMER
Milk marketing of Mithla milk union can be seen from this table: (Table 4) SL.NO.
MONTH
1
APRIL
2
3
4
MAY JUNE JULY
5
AUGUST
6
SEPTEMBER
7
8
9
10
11
12
OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
TOTAL
20002001
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
560.86 18.70 568.85 18.35 473.75 15.79 466.05 15.03 537.03 17.32 506.39 16.88 543.83 17.54 488.91 16.30 569.12 18.36 547.17 17.65 514.74 18.38 638.69 20.60 6415.39 17.58
648.98 21.63 653.35 21.08 466.89 15.56 428.48 13.82 488.88 15.77 419.05 13.97 480.09 15.49 492.37 16.41 509.12 16.42 501.95 16.19 459.68 16.42 602.64 19.44 6151.48 16.85
643.05 21.44 735.26 23.72 550.90 18.36 422.24 13.62 509.52 16.44 481.15 16.04 424.00 13.68 471.95 15.73 482.27 15.56 480.08 15.49 450.84 16.10 543.65 17.54 6194.91 16.97
536.98 17.90 719.11 23.20 533.05 17.77 442.20 14.26 554.68 17.89 489.66 16.32 551.26 17.78 558.24 18.61 514.36 16.59 567.35 18.30 607.16 20.94 652.57 21.05 6726.61 18.38
525.54 17.52 633.14 20.42 710.97 23.70 271.56 8.76 487.18 15.72 568.73 18.96 602.36 19.43 724.83 24.16 589.98 19.03 655.78 21.15 534.82 18.44 645.94 20.84 6950.84 19.04
717.56
817.60
23.92
27.25
973.92
832.50
31.42
26.85
739.94
707.32
24.66
23.58
483.49
604.63
15.60
19.50
476.17
605.24
15.36
19.52
545.28
486.56
18.18
16.22
590.50
613.69
19.05
19.80
594.34
474.61
19.81
15.82
541.80
512.62
17.48
16.54
608.24
705.73
19.62
22.77
590.56
737.45
20.36
25.43
764.12
742.47
24.65 7625.90 20.89
23.95 7840.41 23.47
Amount in thousand liters. Bold figure denotes average consumption in thousand liters per day.
Graph 4 MILK MARKETING YEARWISE
8000
7000
6000
5000
SALE OF MILK IN '000 LTRS
4000
3000
2000
1000
0 YE AR
2 00 0- 20 01
2 0 01 -0 2
2 00 2- 03
2 00 3- 04
YEARS
2 00 4- 05
2 00 5- 06
2 00 6- 07
MILK MARKETING IN SAMASTIPUR TOWN In’000ltrs (Table 5) SL.NO.
MONTH
1
APRIL
2
3
4
MAY JUNE JULY
5
AUGUST
6
SEPTEMBER
7
8
9
OCTOBER NOVEMBER DECEMBER
10
JANUARY
11
FEBRUARY
12
MARCH TOTAL
200020001
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
113.89 3.80 115.23 3.72 83.56 2.79 80.37 2.59 88.45 2.85 70.96 2.37 82.58 2.66 79.06 2.64 83.03 2.68 107.32 3.46 72.53 2.59 86.42 2.79 1063.41 2.91
92.10 3.07 139.63 4.50 73.69 2.46 57.93 1.87 73.39 2.37 48.96 1.63 59.36 1.91 72.90 2.43 75.88 2.45 87.97 2.84 60.12 2.15 81.39 2.63 923.32 2.53
113.16 3.77 180.33 5.82 97.82 3.26 51.50 1.66 41.89 1.35 52.81 1.76 47.89 1.54 64.49 2.15 58.66 1.89 74.49 2.40 55.81 1.99 70.49 2.27 909.33 2.49
97.58 3.25 222.65 7.18 140.15 4.67 32.67 1.05 63.42 2.05 40.84 1.36 65.98 2.13 55.12 1.84 57.49 1.85 90.02 2.90 79.62 2.75 89.57 2.89 1035.12 2.83
67.13 2.24 133.91 4.32 215.29 7.18 56.38 1.82 59.58 1.92 73.25 2.44 70.15 2.26 88.60 2.95 63.43 2.05 97.53 3.15 55.86 1.99 69.47 2.24 1050.56 2.88
85.97
147.59
2.87
4.92
351.14
242.86
11.33
7.83
201.10
187.06
6.70
6.24
82.47
72.55
2.66
2.34
60.83
76.68
1.96
2.47
65.66
45.68
2.19
1.52
59.35
63.97
1.91
2.06
73.97
37.12
2.47
1.24
55.66
41.67
1.80
1.34
84.06
82.97
2.71
2.68
59.30
63.34
2.12
2.26
82.54
81.70
2.66 1262.04 3.46
2.64 1143.18 3.42
(Table 6)
MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR YEAR WISE PHYSICAL PROGRESS OF MILK UNION Sl.No. PARTICULARS 1 2
Incr/Cum Unit
Avg. Milk Incr. Marketing Sudha Milk product Marketing a. Peda Incr. b. Paneer Incr. c. Dahi Incr. d. Lassi Incr. e. Butter Incr. f. Sudha Incr. Special/Surabhi g. Ghee Incr. h. Kalakand Incr. I. Rasogulla Incr. j. Gulabjamun Incr. k. Milk Cake Incr. l. Khoa/Khoa Incr. Mithai m.Balusahi Incr.
00-01 01-02 02-03 03-04 04-05 05-06
06-07
TLPD 42.29 41.45 43.20 54.43 51.98 56.22
56.96
272.41 457.80 537.65 842.80 953.08 1319.94 1242.72
MTs MTs MTs MTs MTs MTs
37.30 36.78 37.56 50.07 2.27 38.93
40.58 50.72 51.69 64.83 54.91 68.50 115.03 98.58 3.07 3.22 59.51 88.15
68.22 76.13 91.97 99.10 106.04 124.61 60.83 44.33 38.47 141.97 171.90 230.17 4.09 5.00 5.51 84.40 94.34 108.40
129.49 170.60 43.27 201.55 5.23 122.47
MTs 25.90 MTs 22.93 MTs 9.31 MTs 9.19 MTs 2.17 MTs 0.00
57.45 54.54 219.60 238.18 413.14 105.84 28.18 37.53 47.95 57.18 72.01 87.76 17.31 23.37 39.23 60.42 95.53 170.79 20.42 29.38 55.79 71.01 100.73 166.56 7.86 11.25 13.37 11.35 14.44 13.51 1.79 7.58 8.25 7.65 10.36 11.09
MTs 0.00
0.00
0.00
0.00
9.55
14.59
14.56
Graph 5 Milk mktg in samastipur town 1400
1200
1000 S R T L D N A 800 S U O H T N I 600 T N U O M A 400
200
0 2001-02
2002-03
2003-04
2004-05
YEAR
2005-06
2006-07
GRAGH SHOWING VARIATIONS OF DEMAND OF MILK IN Samastipur DISTRICT Graph 6 2006-07
300
250
s r e t i 200 l d n a s u o h t 150 n i k l i m f o 100 e l a s
50
0
L I R P A
Y A M
E N U J
Y L U J
T R Y Y R R R E R E R E E U S B B B B G O U A U A M M M T U N R E E E A C B T V J A O E P E C F E D N O S
MONTHS
H R C A M
4. DEMAND AND ITS VARIATIONS Now as per my topic “seasonal variation in demand of sudha milk and milk products in samastipur district and how to coupe it” Here we should first know -what is demand, what are the factors affecting it? If we turn around our eyes we will find there are many firms which are facing the problem of seasonal demand variations .For example woolen clothes are sold only in winter, rain coats and umbrellas are sold only in rainy season and so on. But there is a big difference between these industries and the milk industries. These industries products are not perishable .They can even manufacture for whole year and sell them only in their favorable seasons. But in case of milk these demand variations create a bigger problem in fulfilling the demand of the consumer. From the analysis of the past data it has been found out the demand of milk and its product of Sudha rises to such a extent in some festivals and some occasions like marriage, upnayan etc that it becomes impossible for the firm to meet the demand of the consumers completely. Demand variation cannot be stopped completely. Efforts can be made to minimize the demand variation which we should discuss later.
4.1 DEMAND Demands are wants for specific products backed by an ability to pay. So here in the case of milk if a consumer have the enough money to pay for the milk and its product they want it becomes their demand.
4.2 FACTORS AFFECTING DEMAND FOR A PRODUCT For any products their demand depends upon the following two factors:1. Environmental factors
2. Personal factors 1.Environmental factors:- companies and their suppliers, marketing intermediaries, customers, competitors and publics all operate in the same environment of forces and trends that gives opportunity and pose threats. These forces represent “noncontrollables”’ to which the company must monitor and respond. It includes the following factors:1. Demographic factors 2. Economic factors 3. Technological factors 4. Political-Legal factors 5. Social-Cultural factors 1. Demographic factors: - Demand for any product depends a lot upon the demographic factors. Some of the demographic factors which affect the demand are:a) Population growth: - world population shows an explosive growth and similar is in the case of population growth in Samastipur, Darbhanga and Madhuvani Districts. We know that the Population is directly proportional to the demand for any commodity. So as the population will grow the demand will also grow automatically under normal conditions. b) Population age mix: - National populations vary in their age mix. At one end there is Mexico, a country with a very young population and rapid population growth. At the other extreme is Japan, a country with one of the world’s oldest populations. Milk demand would be more in Mexico as compared to that of Japan. So the demand of milk in Samastipur also depends upon the population mix of the District. c) Educational groups: - the population in any society falls into five educational groups: They are – illiterates, high school dropouts, high school degrees , college degrees , and professional degrees. So the demand for any products depends upon these educational groups. d) Household patterns: - The “ traditional household “ consists of husband, wife and children (and sometimes-Grand parents). But in today’s
scenario most of the households are ”diverse” or “non traditional “ and single live-alones, adult live together of one or both sexes, single-parent families, childless married couples etc. hence the demand for milk and other products also depend upon this factors. 2. Economic factors: - Markets require purchasing power and people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. So demand for any product depends upon this all factors. 3.Technological factors: - Technological up gradation also affects the demand of the consumer to a greater extent. Technology has released such wonders such as penicillin, open-heart surgery, and the birth control pill. It has released sucg horrors as the hydrogen bomb, nerve gas etc. Every new technology is a force for “creative destruction”. Television hurt the demand for newspapers; xerography hurt the demand for carbon paper and so on. 4. Political-legal factors: - Market demands are strongly affected by developments in the political and legal environment. This factor is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. 5. Social and cultural factors: - Demand for any commodity depends upon the social and cultural factors. In the case of milk and its product this is the main factor, which causes the variation in the demand. A household who consumes a liter of in a day requires at least ten liters in any special occasion like Diwali, Dussehra etc. because it is their culture and they will follow it in any circumstances. So in this region (i.e. Samastipur, Darbhanga and Madhuvani district ) the variation in demand as per the analysis of data is due to this factors.
Personal factors In addition to the above factors there are certain personal factors, which affect the demand for any commodity. Some of them are: -
1.Income of individuals: - Demand for any commodity depends upon the income of the individuals to a greater extent. We can see that the family whose earning is good demands sufficient quantity of milk and milk products daily but the family whose earning is not good demand the milk and its product occasionally. 2.psychological factors: - Generally the demand for any products also depends upon the psychological factors. The four major psychological factors are – motivation, perception, learning, and beliefs and attitude. So the demand for milk depends upon all such factors. 3. Availability of the substitutes: - Demand of any products depends upon the availability of its substitute. If a consumer gets same product at lesser price the demand of the demand of original product will fall. If their will not be any substitute whatever be the price the demand remains nearly the same. In the case of milk the main substitute is the local vendors milk who does not have any fixed rate and it varies according to the situation. 4.Family: - Demand also varies with the size and age of the family. If the family is small lesser quantity of milk is required. If any family have younger generations they require more milk compared to the older generations family.
5. How to cope the seasonal demand variations As per the analysis of the previously recorded data and by utilizing several research techniques it has been found out that their is a great seasonal variation in the demand of milk and milk products in Samastipur district and its nearby districts like Darbhanga and Madhuvani which comes under Mithla milk union. This demand of milk and milk products mainly rises in festival season and in the special occasions like marriage, upnayayan etc.
The demand during these special occasions rises even to 4-5 times of the general demand. So it creates a major problem for the firm to fulfill these demands. So sometimes firm becomes unable to meet this demand. Since the product of the firm (i.e. milk and its product) is highly perishable so the firm has to manufacture the product on the same day basis. Hence this demand variation is even more critical for this firm. If we take the example of several firms we can see that several researches have been made to stop the demand variation. But it is of no use. We cannot stop the demand variation completely. We can only take certain measures to minimize this demand variation some of the measures, which I feel to be undertaken to minimize this demand variations are: 1. Increasing the number of milk Parlors : - By analyzing the data it has been found that at present there is one milk parlor in approximately 1000 consumers. So the retailer has only the relationship with the consumer as a seller. They don’t have any personal relationship. If we increase the number of milk parlor i.e. 300 consumers per retailer or 500 consumers per retailer, the retailer can develop a personal relationship with the consumer. They can know each consumer personally and they can know their demands beforehand as they will be directly associated to them. 2. Rural marketing: - If we analyze the marketing of Sudha milk and its product we will find that its parlors are mostly in the town areas. Though in the recent years it has opened several parlors in villages also and also fulfills the demand of milk of the villagers through samities. But still it lacks behind in marketing in the remote villages. Villagers who don’t receive the milk daily in their village by Sudha parlor meet their daily requirement of milk by local vendors but when they require this milk and its product in bulk they move to their district headquarters and purchase it from their. So this creates a huge variation in demand. 3. Consumer awareness program: - This huge variations of Sudha milk and its product in this region is due to the social and cultural factors. Here in whole mithlanchal (i.e. in Samastipur, Darbhanga & Madhuvani) they don’t purchase the milk on daily basis or very little milk just for tea. But in any occasion they need milk in huge quantity. It is their customs. They take the milk for making rasogulla or for making curds. So through various awareness programs they can be said to take the milk and its product on daily basis rather than occasionally. 4. Duel pricing policy : - Sudha firm can make a policy of duel pricing. A consumer who is a customer of Sudha firm on daily basis can be given the
milk and its product at the normal price on any special occasion also. And for other’s it can be fixed little higher. So this can motivate the consumers to become a regular Sudha customer and hence it can help in coping the unusual rise in demands. 5. More emphasis on sale of bulk milk products : - Awareness programme should be launched to make aware the consumers for purchasing the bulk milk products like dahi, rasogulla etc. in bulk packs of 50 kg and so on. Milk products life is comparatively longer than the life of the milk , hence this can solve some problem of meeting the demand. These bulk packages should be available in rural or interior areas also. 6. Increase in the number of chilling centers :-If small or mobile cold storage is made available in the sub-division or block level then the life of the milk and its product can be increased to some extent and thus this could help in coping the unusual rise in demand. 7. Fast information system: - If the information system between the consumer to retailer, retailer to distributor and distributor to the firm becomes faster then the demand can be known in time and thus this will also help in coping the demand variations. 8. Packaging: - today if we turn around our eyes we will find that milk and its product are available in tetra packs, which increases the self life of the product. Packaging is new trend and best concept in marketing in fulfillment of consumer demand particularly for the perishable food products. 9. Transportation: - Better and fast transport system gives an edge to the manufacturer to make available of products and services to the consumer right on time. Better delivery system eases out any misconception from the consumer and thus reduces the over demand or false demand from the market. 10. Advertising / presentation: - To meet the challenges poised by the market through heavy demand from the consumers and the retailers. It can be tackled by proper and advanced planning. Organization may plan for cent percent fulfillment of market demand through proper and advanced management of entire internal and external system. This had to be informed right in advance to the perspective consumers through advertisement and confidence building measures should be adopted with the retailers and distributors as they are the vital part of our distribution channels.
DISTRIBUTION SYSTEM IN SAMASTIPUR DAIRY The distribution mechanism of Samastipur dairy is unique. The Marketing of milk id done by dairy itself. The dairy vehicles takes the milk from the dairy and directly distributed them to the milk from the dairy and directly distributed them to the parlour, retailers but the milk produces are sent to the retailers through C/F agents who takes order from various retailers and then takes the products from the dairy and distributes then to the parlour retailers. All the orders are taken in cash payment or in bank drafts. To what system may be shown like this.
Samastipur Dairy
↓ C/F Agents
↓ Parlour/Retailers
↓ Consumers
AREA COVERED In Samastipur – Samastipur , Darbhanga , Madhubani . TARGET GROUP Distributors, Stockiest, Retailers
PRODUCT PROFILE Samastipur dairy supply two types of products1. Liquid Milk 2. Milk product i.e. product from milk. 1. LIQUID MILK
Presently dairy markets two types of milk namely toned milk (TM) and standard milk (SM) is also known as full cream milk. Besides two types of milk dairy also produces other kinds of milk time to time as per demand. Milk is categorized on the basis of the percentage of fact and solid Not Fat (SNF) present in the milk. The percentage of these combinations that are Fat and SNF includes water (87%) protein (3.55%) lactose (4.6-5%) mineral (0.7-8.8%), carbohydrate (4-5%) etc. Liquid Milk is sold at a brand name of “SUDHA”, Thus standard milk is as follows:
1. 2. 3. 4. 5.
Particulars Full cream Milk Standard Milk Toned Milk Doubled toned Milk Skimmed Milk
Fat % Not less than 6 Not less than 4.5 Not less than 3.0 Not less than 1.5 Not less than 0.5
SNF % Not less than 9 Not less than 8.5 Not less than 8.5 Not less than 9 Not less than 8.7
2. MILK PRODUCTS
Following are the various types of milk products produced by the dairy. 1. Ghee 2. Peda 3. Kalakand 4. Rasogoulla 5. Gulab Jamun 6. Dahi ( Plain & Misti ) 7. Lassis 8. Sudha special 9. Milk cake 10. Khoa 11. Paneer 12. Milk Powder
BRAND
Identification is essential to competition because without a means for identification there is no way of making a choice. Brand name facilitated in making choice. Branding is and important aspect. A brand is a name term symbol or design or a combination of them. Which is intended to identify the goods or services or a seller or a group of sellers and to differentiate than from these of competitors. Brand name is a part of a brand consisting of word, letter, group of words or letters comprising a name, which is intend to identify the goods, or services of a seller and to differentiate them from those of competitors. The brand name of Samastipur Dairy is “SUDHA”, All the products including liquid milk and milk products are marketed as a brand name “SUDHA”, It is family brand name, which is limited to one line of product, It has secured very good popularity irrespective of the area/market.
DISTRIBUTION STRATEGY
• • • • •
Concept of Distribution Importance of Channel of distribution Evolution and Development of Marketing channels Distribution Channel Practised at Samastipur Dairy Process Flow Chart for Milk
DISTRIBUTION STRATEGY CONCEPT OF DISTRIBUTION The main function of the marketing is to place right product to the right place at right, time. The distribution strategy is concerned with the product or service placement. Broadly speaking the overall distribution strategy is concerned with two catergories of issues and decisions which need to be handled. These are-Management of marketing channel and -The management of physical supplied. Channel decisions refers to the managerial decisions or the selection of best routes or paths for moving goods from the producer to consumer. Channel of distribution are concerned not only with the physical distribution of goods but also with their promotion, selling and marketing channel. The term channel of distribution is used to refer the various intermediaries who help in moving the product from the producer to consumer. These intermediaries bear a verity of names such as sole selling agent, marketers, Whole sellers, Distributors, Stockiest, Dealer, Retailer etc. All such marketing intermediaries used by the producers to continue the distribution channel. According to PHILIP KOTLER “Marketing channels are sets of interdependent organizations involved in the process of marketing a product or service available for use or consumption.”
IMPORTANCE OF CHANNEL OF DISTRIBUTION
Channel of distribution are the most powerful element among marketing mix elements. Many products which are intrinsically sound died in their never found the right way to the market on the other hand by developing a sound distribution network and handling aggressive advertisement, campaigns a company can earn much for itself. It plays a very important role in achieving the marketing objectives of a firm undoubtedly value utility is created by the manufactures of the product or service but time and place utilities in created of Distribution channel.
According to DRUCKER “ Both the market and Distribution channel are option more crucial than the product.” Why marketing Intermediaries are used:Intermediaries normally achieve superior efficiency in making goods widely available and essential to the target markets. Through their contacts, experiences, specialization and scale of operations. Intermediaries usually after the firm more than it can achieve on its own.
EVOLUTION AND DEVELOPMENT OF MARKETING CHANNELS : ECONOMIC AND BEHAVIOUR DIMENSIONS Function of Middleman The function of middleman in the marketing channel is to create utilize. Place Utility Carry things from the produced to place where they are needed. Time Utility Put the goods at the disposal of the consumers when they are needed. Purpose & Importance of Distribution Channel The justification of the middleman rests on specialised skills in a variety of activities. Transaction Costs Transaction costs can be carried of at lower cost through the distribution channel than through direct exchange. Process Efficiency The intermediaries can increase the efficiency of exchange process. Matching Segments Given heterogenecity of demand and supply, the marketing channels match segments of demand with segments of supply. Structure of distribution Channel The concept of functional spin-off is relevant to evaluate and analyse changes in the distribution structure. Few of the hypothesis founded on the functional spin-off concept are: 1. A producer will spin off a marketing function to a marketing intermediary(s) if the later can perform the function more efficiently. Than he will spin-off that sub-function to the latter. 2. If marketing intermediaries characterise an industry,their nature will be determined by the mix of function and sub-functions spin-off.
3. The greater the market size is relation to optimum scale size, (at each channel level), the greater the number of channel numbers that will come into being. 4. With a change in technology and the growth of optimum scale size,firms may be expected to leave the channel if there is no corresponding change in market size and vice-versa. The above institutional perspective of distribution channel release heavily on economic concepts related to efficiency. The other institutional perspective is to understand distribution channel on behavioural standing of channel structure and performance. The behavioural to be helpful in explaining variations in structures. Power Relationships The Power is pervasive in the channel because each member is dependent at least to some extent, on the other. The concept of dependency and commitment are key to power relationships in marketing channels. Concept of Conflict The actions or behaviour of output (major in terms of individual goals) achieved by other. Concept of Co-operation The Co-operation stems from effort (joint action) and that underlying this section is the exception of a balanced exchange. The above concepts indicate that the marketing channel theory is fragmented into two seemingly desperate disciplinary orientation : an economic approach and a behavioural approach.
DISTRIBUTION CHANNEL PRACTISED AT SAMASTIPUR DAIRY
In the Samastipur Dairy Marketing of milk and milk products start before production. At first the marketing manager collets order and demand from the customers and on the basis of demand they communicate the production department for production of goods according to the demand. Since its products may be risky. So it is the responsibility or the marketing department to get orders from the customers or from their channel members and insure the production of milk/product. Samastipur Dairy is a co-operative sector so its raw material (milk) comes from different societies, which are generally situated in rural areas. And the colleted milk is carried by the milk van (Tanker or Jeep). The employees of quality control departments ensures and verified their seal of packing and also about the quantity of milk and after that they starts the process of quality aspects. In case of milk and milk products retailer ask about their demand to dealer and dealer informed the marketing division of dairy. TYPES OF INTERMEDIARIES The channel of Samastipur dairy is not so large dairy used the following channel for marketing of the milk and the milk product.
DIRECT SALES
It is not a general way of marketing of Samastipur Dairy but sometime this method is used. Dairy sale the product/milk through society on special demand at the time of Lagan and Festivals. RETAILERS
Milk parlour is the main selling point of Dairy’s products. In the parlour the availability of refrigerator also be insured by the dairy, for making 24 Hrs. availability of milk and milk products. In its original quality in the rural areas sale point or booth are functioning well. For getting license for retailership interested party have to full fill some criteria and a fixed amount.
DISTRIBUTOR
For the distribution milk certain routes has been selected. Separate vans used for different routes for the distribution of milk. The staff of Dairy unload the milk and at the same time they gets an order from the concern retailers, in case of milk products distributor of concern area get demand of milk products and full fill the demand by their own transport facility. MODE OF PAYMENT
In the whole marketing process the payment for milk and milk products can be down by- Cash - Bank pay in slip - Demand Draft. CASH Cash payment may be made by retailers along with cash pay in slip duly in filled up in format. This cash pay slip can be used for milk as well as other products also. BANK-PAY-IN-SLIP For this purpose the retailer fills up printed slips.The bank pay in slip contents party code no. Details of products and quantity time and date. DEMAND DRAFT It is the most popular and safety way of payment. RECORDS MAINTENANCE The main records that have to the maintained by marketing / account section for accounting of marketing operations are as-
A. DAIRY MILK DISTRIBUTION SHEET CUM GATE PASS This is prepared rout wise separately for each morning and evening for sale of milk and milk product.
B. MILK DELIVERY CHALLAN Milk delivery challan given by marketing division of dairy to the transporter.
C. DAIRY MILK SAKE REGISTER This is a crucial multi purpose record which is to be maintained by the account section.
D. SUMMARY MILK SALE REGISTER This registers some rises the milk sale activities of each month and it maintained the daily figure and also the monthly figure. DAIRY CRATES/CANS ACCOUNT REGISTER As milk supply to the retailers is issued in plastic crates. It becomes necessary to ensure that proper account is kept in this regard. So dairy maintains register for carets and cans. Samastipur Dairy recently started the programme in which the retailers have to keep their own carets which is given by dairy. MILK PRODUCT SALE REGISTER The counter clerk/marketing section on a milk product sale register will record the detail of each milk products sales.
As mentioned earlier, the aim of marketing is to meet and satisfy customers’ needs and wants. The field of Consumer Behaviour studies how individuals, groups, and institutions select, buy, use, and dispose of goods, services, ideas or experiences to satisfy their needs and desires. Understanding consumer behaviour and ‘knowing customers’ are never simple. Customers respond to influences that change their mind.
Major Factors Influencing Buying Behaviour: A consumer’s buying behaviour is influenced by cultural, social, personal, and psychological factors. Cultural factors exert the broadest and deepest influence. 1. Cultural Factors: 2. Culture – set of values, perceptions, preferences etc. Subculture – nationalities, religions, racial groups, and geographic regions Social class – relatively homogenous divisions in a society • • •
3. Social Factors: • • •
Reference groups – family, friends, neighbours, co-workers, etc. Family Roles and Statutes
4. Personal Factors : • • • •
Age and Stage in the Life Cycle Occupation and Economic Circumstances Lifestyle Personality and Self-Concept
5. Psychological Factors: • • • •
Motivation Perception Learning Beliefs and Attitudes
DATA ANALYSIS OF CONSUMERS
As we surveyed customers/House hold and asked some questions question to get their opinions relating to liquid milk and after analyzing their opinions we arrived at the following results:-
1. Consumption of milkTable no 1.1 Given below shows the percentage of customers who consumes milk.
Table no.1.1 Yes,Occassionally Yes,Regularly 87%
12%
No 1%
100 Yes
75 50
Yes,Occassiona ly
25
No
0 1 Graph No. 1.1
2. From of liquid milk purchased:-
Table no1.2 Unbranded
Branded
76%
80
24%
76
60 40
24
20
Unbranded Branded
0 Graph No –1.2
It is clear from the graph that the most of the person in the area of Samastipur purchases branded liquid milk from the market.
PLATFORM TESTS OF MILK The tests which are performed to judge the quality of milk at milk reception dock / platform are known as platform test: Various platform tests are as follows:1. Organoleptic Tests:- Judging the quality of milk by its taste and smell requires considerable skill and experiency. a) Smell:- Open the lid of the Can / Container and immediately smell. If any abnormal odour is detected, then milk may be rejected or kept for confirmatory test, otherwise accepted as good milk. b) Colour:- Colour of milk can change only if extraneous matter ids added to it. Hence, if abnormal colour is observed, it may be rejected, other- wise accepted. c) Taste:- If the milk does not smell fresh, but its taste is normal, it can be accepted or if it tastes sour or bitter, it should be rejected. 2. CLOT-ON-BOILING (C.O.B.) TEST :- This is a quick test to determine developed acidity and suitability of milk for processing. Apparatus:- a) Test tube, preferably with a mark of 5ml. b) Water bath. Procedure :- Transfer 5 ml. of the milk sample to the test tube and place the tube in a boiling water bath and hold for about 5 minutes and smell for any acidic flavour. Remove the tube and rotate it in an almost horizontal position and examine the film of milk or side of the test tube for any precipitated particles. The formation of clot is indicative of a positive test. Interpretation:- The principal features of the tests are speed and definiteness of results. Milk either remains unchanged or coagulates. Milk which gives a positive C.O.B. Test has an acidity generally above 0.17 percent ( as lactic acid ) and is not suitable for distribution as liquid milk or for processing. 3. ALCOHOL TEST :- This test is used for rapid assessment of stability of milk to processing , particularly for condensing and sterilization. The alcohol test is useful as an indication of the mineral balance of milk and not so much as and index of developed acidity. This test aids in detecting abnormal milk such as colostrums milk, milk from a animals in late lactation. In milk mineral balance has been disturbed. Apparatus:- a) Test tubes: 150 x 19 mm, preferable with graduation marks at 5 and 10 ml. b) Measure for Alcohol at 5 and 10 ml. Reagents:- Ethyl Alcohol ( 68 % by weight or 75 % by volume, Density at 27 Digree C is 0.8675 kg / ml.) Procedure :- Place 5 ml. of milk in a test tube add an equal quantity of alcohol. Mix the contents of the test tube by inverting several times. Note any flakes or clot. The presence of a flake or clot denotes a positive test.
Interpretation:- A negative test indicates low acidity and good heat stability of the milk sample. Milk showing positive test is not considered suitable for the manufacturing of evaporated milk which has to be sterilized to ensure its keeping quality.
RESEARCH METHODOLOGY Types of Research descriptive Research Data Source
To achieve the objective any source are used primary as well as secondary for collecting required data. Primary sources includes the consumers retailers and organisation’s office. Secondary data includes past record of organization. The technique adopted for collection of data and sampling limit size 100 mainly are:1. Questionnaire Method. 2. Interview Method. 3. Observation Method 1. Questionnaire Method A set of relevant questions according to the requirement for collection of appropriate data for study a questionnaire is formed. It is first tested of small sample, then is modified and developed according to the environmental situations and affecting factors. Each questionnaire is framed with systematic and modern techniques so that it can be help in achieving the objective to a maximum possible limit. The respondent is personally contacted . He is requested to answer the questions. The questions are made clear. The questionnaire is filled with response of the respondent. 2. Interview It is face to face interacting the direct question are asked to the respondent. During the time at interview the requisite any modify or change the questions according to situation only the relevant points are noted own need. 3. Observation Personal Interview to ask question to respondent is face to face interaction. 4. Sampling Method and Size Among the finite universe 100 retailers are selcted on the basis of probability or Sample Random Sampling Method. 5. Tools of Data Collection The tools used in the data collection are a quite popular tool for gathering the Primary data i.e. questionnarie. The questionnaire gives us the exact view of all the respondents and hence it is more dependable and reliable if is the heart of the entire survey as on analysis and interpretation depends upon the questionnaire.
CONCLUSION After the study of Samastipur Dairy I saw all activities after that I found the dairy do work well: • • •
Pricing are very reasonable for the product. The distribution of the products are systematic. I am satisfy to see this network system and customers are also satisfied. In rural area also this dairy do work properly.
SUGGESTION
The above study elicit the fact that sales department and distribution channel should have some changes like. - Organisation should adopt automatic and computerized quality control system to keep the products pure and hygienic. - The organization has to improve in the production and quality. - To boost the sale of the Sudha Milk and Products commission of the retailer should be increased. - The promotional incentives should be increased and distributed among all the members of the distribution channel. - To ensure availability for 24 hrs. - If possible please available 200 ml pack.
QUESIONAIRE ON CONSUMERE BEHAVIER WITH RESPECT TO SUDHA PART A:- INTRODUCTION 1. Name of the consumer :a) Age :b) Sex :-
c) Qualification :d) Occupation :-
2. Address of consumer:3. Contact number :PART B 4.what is your monthly house hold income (in Rs) ? (a)below 5000 (b) 5000-10000 (c) 10000-20000 (d)above 20000 5. Do you purchase liquid milk ? a) Regularly (b) Ocassionally
(c) No
6. In what form do you purchase liquid milk ? a) Loose (b) Fat (c) Both 7. Which brand of milk do you use ? a) Sudha (b) Amrit
(c) Loose
8. How much quantity you purchase daily ? Ans:9. What are the sources of purchasing milk ? a) Vendor (b) Retail shop (c) Parlour 10. What is your opinion about a) Quality (b) Supply timing / avaliability c) Price (d) Taste 11. Weather SUDHA price is reasonable or not ? a) Yes (b) No 12.How much distance you purchase to purchase liquid milk ? (a) 0.5 km (b) 0.5 – 1 km (c) More than 1 km
13. Who purchase the milk ? a) Self (b) Son / Daughter c) Husband (d) Home delivery 14. Why do not you purchase liquid milk ? a) quality milk not available (b)Can not afford c) House hold producing milk (d) Other COMPLAINTS :-
SUGGESTION :-
SIGNATURE
s
