I.T. POINT 11, H.I.G.

DOUBLE STOREY, RATAN LAL NAGAR KANPUR (LC CODE- 00918)

A PROJECT SYNOPSIS ON

A Study of Indian Dairy Industry

Mrs. Reema Saxena Submitted By ANOOP KUMAR REG.NO. 521130842 in partial fulfillment of the requirement for the award of the degree Of

Master of Business Administration

Project Management
SIKKIM MANIPAL UNIVERSITY Directorate of Distance Education Syndicate House, Manipal - 576104
www.smude.edu.in (2012-2013)

ACKNOWLEDGEMENT

It is with real pleasure that, I record my indebtedness to my academic Guide, Lecturer Mrs. Reema Saxena for his guidance during the preparation of this project. I am grateful to (Director) Mr. S.K. Arora and my sincere thanks to all faculty members of The SMU, IT Point Kanpur (LC Code: 00918)

Place: Kanpur Date:

(ANOOP KUMAR)
REG.NO: 521130842

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CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction to Indian dairies with its general review Introduction of Pass dairy Establishment formation & Management of Co-operative societies Aims & Objects Organization structure Organization set up of pass dairy Introduction to marketing Marketing Pass dairy Market share of Milk products

10. Types of Pass milk products 11. Task 12. Daily schedule 13. Main Task & Targets 14. Strategy 15. Problems/constructions/Limitations 16. Learning In The Executive Training 17. Research Analysis along with pie chart, key finding & suggestions 18. Analysis of survey 19. My observation of Pass Dairy 20. Recommendations

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21. Conclusions 22. Questionnaire 23. Bibliography

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INTRODUCTION TO INDIAN DAIRIES Lot of Indian people start day with tea and milk. Milk is an essential factor of our daily life. In India milk business is very old. Dairy business adopt modern concept in 197 with the help of National Dairy Develop Board through Operation Flood Plan. In first section of this plan, selected ten states ,In which Mother Dairy was setup in Delhi, Mumbai, Chennai and Kolkata Our country is on first position in production of milk. But in filed per capita availability of milk is almost 900 gm while in INDIA it is almost 200 gm. The ideal average per capita availability of milk should be least 250gm.

GENEREAL REVIEW Indian Dairy emerging as sunrise industry and contributes significantly in generating small and marginal farmers of rural INDIA, besides providing food security INDIA is blessed with huge bovine population of 196 million cattle and 80 million buffaloes accounting for 51% if Asia and 19% of world bovine populationthe largest in the World. Milk production in INDIA has increased from 20 MILLON tones to during 1970 TO 77 million in 1999 which accounts for 20% of the world`s milk production and stood first in the world`s milk production and registering growth rate of 5% per year. Indias dairy industry generates an annual business of nearly Rs 88,000 Crore Dairy sector provides regular employment to 9.8 million people principal status and 8.6 million people in subsidiary status, which together constitute 5 percent of total work force Dairy development owes much to the Anand pattern of Co-operative The Dairy infrastructure now comprises 25 states federation 170 district milk unions and around 1,00,00 village cooperative societies, through which rural milk production and procurement system have been effectively linked to urban markets consumption centers. Operation flood brought milk revolution in the country by transforming dairying into a core economic activity. The main challenge before Indian dairy sector
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improving quality, developing international accepted products and stepping up global marketing strategy. The future of Indian Dairy industry is promising since its de-licensing in 1992. The interest of multinational and Indian corporate in the industry has been growing, and the industrys growth potential is high as there is sufficient domestic demand and good scope for exports of milk products. India is emerging as one of the largest and fastest growing consumers market in the world with high income elasticity of demand of dairy products. Indian dairying is energy efficient labor incentive and ecological sound. Over 80% of milk sold in urban and semi urban areas is non-pasteurized from unorganized sector. THE overall market for liquid milk is growing 4 percent per annum.

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INTRODUCTION The Feeder Balancing Dairy Jodhpur is located on the out skirts of Jodhpur city in Heavy Industrial Area. A uniform piece of 25 acres of land has got road on its front side two sides of this piece of land are free and at the back long way away is Central Arid Zone. Paschimi RajasthanDugadh Utpadak Sahakari Sangh, (Jodhpur PRDUSS) was established in the year 1972, under the Operation Flood Programmed finds from D.P.A.P. were utilized for the construction of plant at Jodhpur, and later on the establish various chilling centers. Initially five districts of Jodhpur, Pali, Jaislmer, Barmer and Nagore were included under PRDUSS. But Pali was hived off later and was made into an independent union.

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Under Jodhpur Union the production of milk is one lack per day while consumption of milk is 73 thousand liters per day. The excess of milk (60 thousand liters) is send to the central dairy Delhi and Gujarat. At present 485 co-operative societies and 347- milk collection canter are functioning where average production of milk is one lack thirty three thousand liters coming in Jodhpur dairy through 53,198 milk productions. Through increase milk production can fight with famine. Man district of Marwar faces with famine in every year but through increase in milk production they do earn money and get relief from famine. There is only source of earning money is selling of milk to DCS. They get payment in cash or bank account after days. According to dairy officers whenever falling famine in western Rajasthan, in dairy collection of mill increase. During the famine in Barmer and Jaisalmer district the collection of milk is increase 45,000 liter. In the last year, December the total collection of milk was 72,000 liter while this year it is reached 1, 17000 liter. Dairy provides animal food at cheap rate for maximum production of milk. In Barmer and Jaislmer village almost 24 bulk cooler through this the problem of farmer is eliminate. Whenever dairy vehicles reach late, milk keep in these bulk cooler. In the year November, 2005 after setup new milk centre at Bilara, the collection of milk was between 30 to 40 thousand liters.

WHAT IS CO-CPERATIVE SOCIETY? Co-operative means mutual working. In simple words it is an organization of weaker section to face exploitation of rich persons. In other words co-operative form of organization is an association of persons where by people of ordinary means unit voluntarily to protect their economic and social interests. Thus it is protective mean adopted b such persons. It is based on principal Each for all and all for each Formation & Management of Co-Operative Societies Co-operative Societies can be formed and registered under the India Co-operative Act. The following conditions are essential for of the society. 1. There must be at least minimum ten members.
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2. Every member should be adult or major. 3. The members should be resident of that village or the city, where society is setup. 4. All documents of co-operative societies should be submitted to the registrar of cooperative society The Management of co-operative societies is based on democratic Aspect. Registrar of co-operative societies departments checks the accounts of society. All the members of the co-operative society elect a working committee that looks after the work of the society. No remuneration or salary is paid by the co-operative society to its members.

AIMS & OBLECTS The scheme aims to achieve the following objects: To Improve the Social & Financial Status of Milk Producers. To organizing dairy co-operative societies & Producers Marketable surplus milk. To provides remunerative price to milk producers at the door step. To undertake milk production enhancement activities by promoting breeding / feeding and hygienic milk production practices. To undertake training and awareness programmed against milk producers.
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 Market quality processed milk and milk products to the consumers. Development of Co-operative milk procurement system in the rural areas covered under the milk collection routes of the scheme in order to provide raw milk a channel which is more remunerative than the tradition channel of conversion of surplus milk into un-economic ghee. Establishment of milk processing-cum-manufacturing plant for supplying pasteurized milk primarily to Jodhpur City.

ORGANIZATION STRUCTURE

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Organization is the structure framework of duties and responsibilities required of personal in performing various within the company. It is essentially a blue-print for action resulting in a mechanism for carrying out function to achieve the goals setup by the company.
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An organization structure shows the authority and responsibility relationship between various position in the organization and also clarifies who reports to whom. It is a set of planned relationship between groups of related functions and between physical factors. And personnel required for the achievement of organizational goals. The organizational structure is generally shown on organization chart. It represent authority relationship between various position in the organization by showing who reports to who me. It is a set of planned relationships between groups of related junctions and between physical factors and personnel required for the achievement of organizational goals. An organizational chart is a diagrammatical form which shows important aspects of an organization including the major function and their respective relationship. It is graphic portrayal of position in the enterprise and of the formal line of accountability among them. It provides a bird eye-view of the relationship between different departments or division of an enterprise as well as the relationship between the executives and the subordinates at various levels. An organization cannot work cutting a detents structure. The first step in designing the structure of an organization is to insetting and group the activities involved, whichs expressed as departmentation, because of the intimate connection between the felonry over time and cost accounts it is necessary into which the factories are usually divided the manner in which they are linked and way in which they are managed.

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DEPARTMENTS

Marketing Department According to Peter Drucker, The aim of marketing is to make selling superfluous.

Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers.

Marketing department is responsible for the sale of liquid milk. It decides the routes by which the milk is supplied as well as decides the number of booths in district and up country. It also appoints distributors for supply of milk from dairy plant to different areas of district and up country market., Jodhpur is also marketing various fresh milk products in pass brand like chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder and whole milk powder. Various sales promotion techniques are used by marketing department to increase the sale of pass products like It mainly includes the management related with:a.) Sales and Marketing b.) Advertisement Hoardings Glow sign board Gift hampers Banners Advertisement through local cable Wall paintings c.) Cost Fixation d) Distribution of Product
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 It also cares: e.) Production and distribution based on consumer needs f.) Transportation Management g.) Import Export management h.) Packaging i.) Sales Expansion etc. j) Incentive schemes to dealers k.) Consultancy and hiring of marketing agency

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ORGANIZATION SET-UP Organization is mainly based on three-tier system. 1. Rajasthan co-operative Dairy Federation (R.C.D.F.) 2. Paschimi Rajasthan Dugdh tpadak Sahakari Sangh Ltd.(PRIDUSS Ltd.) 3. Primary Dairy or Co-operative Society. 1.) Rajasthan Co-operative Dairy federation (R.C.D.F.) is a registered co-operative body. This milk plant is not managed by the Government but is direct under the federation. The authority has been delegated equally to the entire member & technical person can give the technical suggestion to the higher authority.

2.) Paschimi Rajasthan Dugdh Utpadak Sahakari Sangh Ltd. (PRDUSS Ltd.)is at present collecting milk through primary samities in districts jodhpur, Barmer, Nagore and Jaisalmer. The samities of rest of the district give their milk to repective chilling centers at: Barmer, balotra, Nagore, Merta, and pokaran & phalodi.

3.) Primar Dairy or Co-operative Society at village level: a) Total registered co-operative societies 732 b) Active Societies ---342 c) Milk Collection Centers 249

There are mainly 7 section as departments in the organization as shown in the organization structure like :1. Farmer Organization 2. Purchases Section

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3. Production Section 4. Quality Control Section 5. Finance Section 6. Marketing Section 7. Personnel & Administration Section

INTRODUCTION TO MARKETING In the previous one decade. We have taken some efforts particularly in the management of milk and products. Particularly the pass has brought a revolutionary change in the management of milk. The skimmed milk powder, pannier in attractive packagers have received positive responses not only in the domestic market but also in the overseas market. However we need qualitative-cum-quantitative improvements on almost all the forms. In the respect the key managerial decision areas are the following:-

Farming the product mix Structuring the distribution channel Managing the pricing Designing the promotion mix?

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PROCUREMENT AND SALES

Milk from the DCS is collected and brought to the six chilling at Balotra, Barmer, Phalodi, Pokaran, Merta city and Naguar as well as directly to the plant at jodhpur. From these chilling centers, milk is brought to the plant at jodhpur by milk tankers. From a mere thirty-eight Dairy Co-operative Societies (DCS) at the village level in 1974, the union has been able to establish and organize 782 DCS, out of which 375 are functional as in 2003-04. The total memberships of all these DCS stand at 51797. There has been a remarkable increase in procurement during the Ist five years, from an average of 39987 LPD in 1999-2000 to 63293 LPD in 2003-04, an increase of 58 percent.

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MAIN TASKS AND TARGETS Targets are defined as goal, which has to be fulfilled and sounds compulsiveness. Without setting target it is difficult for anybody to achieve his/her objective. The targets that are set for me during the training are:1) To make maximum people aware to pass 2) To interview 100 homes to know their views and opinions about pass products. 3) To conduct a comparative study of the growth of pass (PRDUSS Ltd., JODHPUR) 3) To conduct survey of pass parlours and booths to know their problems and sort them out. To get feedback from pass parlours and booths. 4) To get feedback from customers and find their problems, satisfaction level, take their suggestions and help PRDUSS Ltd., JODHPUR to implement those suggestions. 5) To take responses from people who do not use pass products and find the answer to the question, Why they are not using pass products.
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6) To Learning Technique increase the sale of products.. STRATEGY A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase self and achieve a sustainable competitive advantage. A marketing strategy is effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the markets Arena for success. It is partially derived from broader corporate strategies, corporate mission, and corporate goals. They should follow from the firms mission statement. They are also influenced by a range of micro environment factors. SURVEY RESEARCH A survey research is defined as the method of collecting information by asking a set of pre formulated question in a predetermined sequence in a structured questionnaire to a sample of individuals drawn so as to be representative of a defined population. These questionnaires are administered to an individual or a group of individual through interview. Typical survey objectives involved describing or learning from an ongoing activity by studying the changes in behavioral pattern of the subjects of interest of the researcher.

Method of survey research used by me: Door to Door interview.

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PROBLEMS / CONSTRUCTIONS / LIMITATIONS Any research in any field topic gives some new results, discovering new areas etc. but there are always some limitations thereof. The limitations that I came across during the course of my training at Saras Dairy, Jodhpur are: The data collected is totally depended on respondents view which could be bias in nature. Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer. During the survey I came across unfavorable weather condition like scorching heat and dust storm.

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There is the limited time available each day and lots of tasks have to complete in a day like preparing a reports conducting surveys.

Transfers given by the respondents are not always correct and may be misleading.

It is a very time consuming to go Door to Door in order to conduct a survey of various homes and find their views and study their buying behavior.

Sometimes it becomes very difficult to convince people as many of them are not at all aware of pass products and some are very stubborn. It becomes slightly difficult to convince such people but it is challenging task and a good learning experience.

Being trainee, non confidential information about the organization is available. This sometimes becomes a hurdle during the training.

In some cases the respondent is not present at home. Sometimes the respondent are not executed, personal interviews are successful only when the respondents are educated.

The limitations that pass Dairy comes across are: 1) Low availability of raw milk in summers. 2) Dependence on milk producers. 3) Milk can be produced not manufactured. 4) Increasing competition in dairy industry.

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RESEARCH DESIGN/METHODOLOGY Resarch design is defined as a systematic and objective process of gathering, recording and analyzing data that provides information to guide business decisions. The process of business strategy can be divided into three phases planning, execution and report preparation. The planning phase begins from problem/opportunity identification and leads to selection of the sampling procedure. Data collection and evaluation can be described as the execution phase of the business research process, while report generation can be considered as the last phase.

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Steps in the research design process Identifying and Defining Problem/Opportunity

P L A N N I N G

Planning the strategy

Selecting the method of strategy

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Selecting a Sampling Procedure

E X E C U T I O N

Data Collection

Evaluating the Data

REPORT PREPRATION

Preparing and Presenting the Report

MY OBSERVATION OF DAIRY Now I have completed my 45 days as an intern in pass Dairy, Jodhpur and during these 45 days as training I carefully observed various aspects of the organization. Here I am presenting my observation and findings using the Constant Sum Scale. I have divided a total of 100 points into various attributes that I observed. The maximum that can be allotted to the factor are 10. The various attributes that I observed and the point I allocated to each observation are presented below in the tabular format:Seria l 1 2 Characteristics of Pass Dairy Variety of milk provided by pass Dairy Prices are affordable Number of Points 9 7
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3 4 5 6 7 8 9 10 11 12 13

Quality in hygiene Enough range of FMP Round the clock availability Staff is corporative Customer awareness Employee Satisfaction Market reputation Advertisement and Publicity New project and development Channels of marketing Give weightage to suggestions Total

10 8 4 9 8 8 9 5 5 8 10 100

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RECOMMENDATIONS On careful observation of pass Dairy during the training period I have the following suggestion for pass Dairy, Jodhpur which on proper implementation may provide a big boost to it. All information regarding pass Dairy and its products should be available on internet. Increase in advertisement and publicity. Motivation program for booth and parlor owners. Marketing department should be well furnished and attractive. Jodhpur Dairy should give milk products competitive prices and facilities. Glow sign boards should be provided to booth and parlor owners. New product should be launched like ice-cream. To popularize Shrikhand free sample may be distributed at some public place. Inspection and frequent check of booth and parlors. Good co-ordination between marketing department and booth, Parlor owner. New technology should be adopted from national and international Company Experts in the Field.

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CONCLUSION The project marketing strategies of milk a product with special reference to Dairy in Jodhpur has been undertaken during the training period gave an opportunity to study the system in detail and have an insight into the organization marketing. The organization has a very well thought out organizational structure, streamlined procedure and well-motivated workforce. The objectives are very clear and unambiguous. The motivation levels very high and everyone seemed to be highly satisfied with marketing strategies as well as the attitude of the management. As we know that PASS is very big organization and market leader in dairy products. It has maximum market share in Milk, As we know pass is a co-operative organization, With the help of research, company can find out its week points in Dairy product and can increase its market share through rectify mistakes. People have believed in PASSS product and they will accept The survey resulted into following conclusions: PASS must come up with new promotional activities such that people become aware about Ice-cream,

Quality is the dominating aspect which influences consumer to purchase PASS product, but prompt availability of other brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.

In comparison to PASS Products, the other players such as Amul, Krishna provide a better availability and give competition to the hilt.

and

People are mostly satisfied with the overall quality of PASS Products, but for the existence in the local market PASS must use aggressive selling techniques.
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BIBLIOGRAPHY BOOKS Marketing management-philip kotler Marketing Management in Indian perspective- jha & Singh Pamphlets and information from SARAS Dairy Learning % observation from SARAS Dairy

1. www.sarasdairy.com 2. www.google.com
3. www.marketresearch.com

4. www.dairy.com 5. Research Methodology. ( Harper W.Boyd, C. R. Kothari )

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