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A STUDY ON

PROJECT REPORT
CONSUMER PERCEPTION TOWARDS NANDINI MILK

Submitted for the partial fulfillment of the requirement for the award
Of
BACHELOR OF BUSINESSS ADMINISTRATION
2013-16

SUBMITTED TO SUBMITTED BY
MISS TOSHAM SINGH NAMAN CHAUDHARY
(HOD of management department) BBA VI SEMESTER
ROLL NO.8327548

MAHAVEER INSTITUTE OF TECHNOLOGY, MEERUT

1
DECLARATION

I hereby declare that the dissertation CONSUMER PERCEPTION


TOWARDS NANDINI MILK submitted for the BBA Degree at CCS
University Department of Business Management is my original work and
the dissertation has not formed the basis for the award of any degree,
associate ship, fellowship or any other similar titles.

NAMAN CHAUDHARY
ROLL NO.8327548

ACKNOWLEDGEMENTS

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In the first place, I thank the CCS University, Department of Business
Management for giving me an opportunity to work on this project. I
would also like to thank Miss TOSHAM SINGH for having given me his
valuable guidance for the project. Without his help it would have been
impossible for me to complete the project.
I would be failing in my duty if I do not acknowledge with a deep sense
of gratitude the sacrifices made by my parents and thus have helped me in
completing the project work successfully.

NAMAN CHAUDHARY
ROLL NO.8327548

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PREFACE
We are the student of B.B.A programmed. It is necessary to have the knowledge
and managing skills of the business. We gain theoretical knowledge in college
but are not enough for development, but also to have the practical knowledge.

We are presenting this report on the industry NANDNI MILK This report has
all information which starts from the origin to until the date. It helps in better
developing of knowledge about the industrial management.

The main object of preparing this report is to develop the skill, practical
knowledge about industrial attitude and ability to perform specified job in
industrial in systematic and modern way.

What follows is a comprehensive analysis of the NANDNI MILK made


possible due to joint efforts of our professors and all of us.

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CONTENTS

SL.NO TITLE PAGE NO

EXECUTIVE SUMMARY 04-06

ABOUT INDUSTRY 07-13

COMPANY PROFILE 14-37

RESEARCH METHODOLOGY 38-42

DATA ANALYSIS 43-63

FINDINGS 64

SUGGESTIONS 65

CONCLUSION 66

APPENDICES 67-72

BIBLIOGRAPHY

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EXECUTIVE SUMMARY

RBKMUL is one of the member milk unions among 13 unions in the


Karnataka state and functioning at Middle level between the Dairy Co-
operative Societies (DCS) member and Karnataka Milk Federation (KMF)
where the milk procurement, pasteurization, processing and marketing is
taking place.

It was a great experience to undergo summer in-plant training on A Study


on Consumer Perception towards Nandini Milk. During the study I tried
my best to know the various departments of the company, from production to

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the marketing of milk. In the first half of my study i.e. Organizational study I
found that Marketing department plays key role in the company.

In this report I tried to know the Consumer Perception towards Nandini


milk which may help the Marketing department of the company as well as to
the company. The study focused on how exactly consumer perceived the
Nandini milk. And does the consumer perceived according to the company?
In the findings and suggestion part I tried to find the answers to the above.

Industrial Profile:

Introduction

On considering the diary industry in India has developed and developing as


large industry and as per the certification of the International Dairy Industry
India is the worlds largest milk producer and large numbers of industries are
engaged in routine commercial production of pasteurized milk and milk
products.

Origin of the Milk Industry:


Milk is the natures idea of food for infants and growing children in our
country, except in rare cases of lactose intolerance. The importance of milk

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occupies in our diet has been recognized since Vedic time, and all modern
research has only supported and reinforced this view. In fact, milk is now
considered not only desirable but very much essential to person from his
childhood.

In early days the household have to produce their milk by maintaining their
family cows or buffalos or they should secure from their neighbors. As the
urbanization develops only few households are able to keep a cow for private
use. The high production cost, problem of sanitation etc.., restricted the
practice, gradually the family cow in the city was eliminated and cattle were
sent back to the rural areas, as a result farmers began to deliver milk over
routs in the cities. This was the beginning of the fluid milk sheds which are
surrounding the large cities now a day.

As we know milk is having short span of time in normal condition after that
which is not possible to consume, in addition to this lack of suitable
transportation and refrigeration facilities were major draw backs for the milk
producers of early days. Meanwhile the rapidly increasing population caused
an imbalance between the demand and supply of milk. The production and
marketing of milk has been considered as a profitable business.

To utilize the above environmental and marketing conditions, the processing


and maintenance units were established by the name of MILK DAIRIES to
bridge the s imbalance between high demand and less supply.

Thus dairying started in India, where the production of milk and its products
takes place. The process of Collecting, Chilling, Pasteurizing the milk and
preventing it from the micro bacteria and packing is called dairying. The
Indian dairy industry has grown after 1960s then the large number of modern

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milk plants and factories has been established. India is the worlds largest
milk producing country.

After the independence dairy and animal husbandry taken vital importance.
For this lot of development programs made by the government through Five
year plans. This leads to formation of National dairy Development Board in
1965 and thus in 1970 decided to bring a White Revolution through out the
country. Mr.Verghese Kurien is called as Father of White Revolution.

Verghese Kurien: born on November 26, 1921 at Kozhikode, Kerala is called


the father of the White Revolution in India. He is also known as the Milkman
of India.

He was the chairman of the Gujarat Co-operative Milk Marketing Federation


Ltd .(GCMMF). GCMMF is an apex cooperative organization that manages
the Amul food brand. He is recognized as the man behind the success of the
Amul brand. Amul had revenue of $1b USD in 2006-07. In addition to
Kurien, people like Shri Dalaya, VH Shah, Madhukar Shah, Dr.AR Seth,
Dr.Shabnis and Shri Tribhuvandas Patel have also played a significant role in
the progress and development of Amul.

He is credited with being the architect of Operation Flood -- the largest dairy
development program in the world. Kurien helped modernise Anand model of
cooperative dairy development and thus engineered the White Revolution in
India, and made India the largest milk producer in the world. Milk co-
operatives were already extant when Kurien came to Anand and were
managed by Tribhuvandas Patel. His uncle, John Mathai, was an economist
who served as India's first Railway Minister and subsequently as India's
Finance Minister.

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According to Charaka, the father of Ayurveda system of medicine explains
the importance of the milk as, milk has ten properties viz, Sweetness,
Coldness, Softness, Unctuousness, Density, Smoothness, Heaviness,
Slowness and Charity

National Dairy Development Board

Introduction:

The government of India constituted the National Dairy Development


Board in the year 1965 Shri: - Lalbahadur Shastry initiated the setting up of
NDDB. The board is registered under the societys registration act and public
trust at the head office is at Anand and is organization in to 9 functional
divisions.

Objectives of National Dairy Development Board

To sponsor, promote, manage, acquire, construct control any plant or work


which promotes or advances the projects of general public utility reactions to
dairying.
1. To make available on request, information services to increase production
development to released to production and marketing of agricultural and
food products.

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2. To provide international liaison with other national dairy boards and
international agencies in order to facilitate exchange of information and
personnel as well as to assist in development of dairying in other
countries.

Company Profile
Introduction to RBKMUL:
RBKMUL is one of the member milk union among 13 unions in the
Karnataka state and functioning at Middle level between the Dairy Co-
operative Societies (DCS) member and Karnataka Milk Federation (KMF)
where the milk procurement, pasteurization, processing and marketing is
taking place.

Karnataka Milk Federation


Karnataka Milk Federation (KMF) sells products by the name of Nandini.
They are famous for taste and quality. Nandini sweets like pedha, jalebi,
paneer, curds and milk are consumed by thousands of people in India. As the
name suggests it is the federation of milk producers association working on
cooperative principles. Almost every district in state of Karnataka has milk
producing co-operatives. The milk is collected from farmers who are its
members, processed and sold in the market by the brand of Nandini.

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HISTORY OF KMF
The Karnataka diary development corporation was established in the year
1975 under the World Bank assistance. The main objective was to organize
the Anand pattern milk co-operative societies and there by helping the
farmers to increase the milk production by getting technical input services
and procuring the milk, procured by them around the year. In order to process
and market the milk so collected, diaries and chilling centers where
established in the southern part of Karnataka subsequently I the year 1984. It
was converted into Karnataka milk federation (KMF). The KMF is the apex
body according to National Development Board (NDDB).

Objectives:

1. To propose plan & organize programs for the purpose of the development
of dairy & their agriculture based & attired & biological on an intensive
& national wide basis & to render assistance in the implementation of
such program.

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2. To adopt the co-operative strategy a more affective manner on an
intensive manner on an intensive & national wide basis and to take such
steps as may be a necessary for the purpose before said.
3. To facilitate research & promotional activities in the field of dairying
immensely animal husbandry, agriculture & horticulture.
4. To import technological know how to such organization in the co-
operative or public sector as are engaged in the production preservation or
milk marketing of milk products.

5. To function as a channelising agency for the import & export of the milk
& milk production & of the milk animals or bulls.

Karnataka Cooperative Milk Producers' Federation Limited:

Karnataka Milk Federation is the Apex Body in Karnataka representing Dairy


Farmers' Co-operatives. It is the third largest dairy co-operative amongst the
dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is
marketing of Milk and Milk Products. The Brand Nandini is the household
name for Pure and Fresh milk and milk products.

KMF has 13 Milk Unions throughout the State which procure milk from
Primary Dairy Cooperative Societies (DCS) and distribute milk to the
consumers in various Towns/Cities/Rural markets in Karnataka.

The first ever World Bank funded Dairy Development Program in the
country started in Karnataka with the organization of Village Level
Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives
started functioning in Karnataka from 1974-75 with the

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Financial assistance from World Bank, Operation Flood II & III. The
dairy co-operatives were established under the ANAND pattern in a
three tier structure with the Village Level Dairy Co-operatives forming
the base level, the District Level Milk Unions at the middle level to take
care of the procurement, processing and marketing of milk and the
Karnataka Milk Federation as the Apex Body to co-ordinate the growth
of the sector at the State level.

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OBJECTIVES OF KMF:
The Karnataka Milk Federation is a co-operation apex body in the state
of Karnataka for representing diary farmers organization and also
implementing diary development activities to achieve the following
objective.
Providing assured and remunerative market for all the milk produced by
the farmer members
Providing hygienic milk to urban consumers.
To build village level institution in cooperative sector to manage dairy
activity.
To ensure providing of milk production inputs processing facilities
disseminations up know how.
To facilitate rural development by providing opportunities for self
employment at village level preventing migration to urban areas
introducing cash economy and opportunity for steady growth.

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Milk Unions of KMF
1. Bangalore Milk Union
2. Belgaum Milk Union
3. Bellary Milk Union
4. Bijapur Milk Union
5. D K Milk Union
6. Dharwad Milk Union
7. Gulbarga Milk Union
8. Hassan Milk Union
9. Kolar Milk Union
10.Mandya Milk Union
11.Mysore Milk union
12.Shivmogga Milk Union
13.Tumkur Milk Union

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14.

THE GROWTH PROCESS

The growth over the years and activities undertaken by KMF is


summarised briefly hereunder:

1976-
2007-2008
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Dairy Co-operatives Nos 416 11063
Membership Nos 37000 1956163
Milk Procurement Kgs/day 50000 3025940
Milk Sales Lts/day 95050 2129790/:1.77LKPD
Cattle Feed Consumed Kgs/DCS 220 3010
Daily Payment to Farmers Rs.Lakhs 0.90 342
Turnover Rs.Crores 2707.00

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World Bank Study Observations

The World Bank, in its study on the effect of Co-operative dairying in


Karnataka, has pointed out that:

The villages with Dairy Co-operative Societies are much better


off than those without.
The families with dairy cattle are economically better than
those without dairy cattle.
Women who had no control on the household income have
better control in terms of Milk Money
A single commodity MILK has acted as a catalyst in the
change in the Socio-Economic impact of the rural economy.
There is a positive impact on those at the lower end of the
economic ladder both in terms of landholding and caste.

PERSPECTIVE PLAN 2010

After the closure of OF-III project. Government of Karnataka and NDDB


signed an MOU during February 2000, for further strengthening the Dairy
Development Activities in Karnataka with an outlay of Rs.250 Crores.
Consequent to the announcement of new lending terms and conditions by
NDDB through an evolution of an action plan - Perspective 2010 to enable the
dairy cooperatives to face the challenges of the increased demand for milk and
milk products by focusing efforts in the four major thrust areas of Strengthening
the Cooperatives. Enhancing Productivity, Managing Quality and building a

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National Information Network, plans are under implementation. The 4
Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were having
accumulated losses were included for rehabilitation program under the Centrally
Sponsored Scheme "Assistance to Cooperatives" which is also under
implementation.

UNITS OF KMF:

KMF has the following Units functioning directly under its


control:
Mother Dairy, Yelahanka, Bangalore.
Nandini Milk Products, KMF Complex, Bangalore.
Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan
Nandini Sperm Station (formerly known as Bull Breeding
Farm & Frozen Semen Bank) at Hessaraghatta
Pouch Film Plant at Munnekolalu, Marathhalli
Central Training Institute at KMF Complex, Bangalore.
Quality Control Lab at KMF Complex, Bangalore.

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CATTLE FEED PLANTS

To supply 3 varieties of balanced Cattle Feed & Mineral Mixture,


Karnataka Milk Federation owns Four Cattle Feed plants with installed
capacity of 500 MTs per day and is manufacturing 10,000 MTs Cattle Feed

on an average per month. Present utilisation of the plants on an average


is 80%.

The plants are located at Rajanukunte, Gubbi, Dharwad and Hassan


which are all ISO Certified Plants.

DEMPO DAIRY INDUSTRIES LIMITED:

The Dempo Dairy Industries Limited, a sick unit Under the BIFR with
a dairy at Aasangi, was taken over by KMF in 1993 under financial assistance
from NDDB and GOK. The Plant is today an ISO-2000 certified plant.

The Dairy has a Powder Plant with a capacity of drying 1.0 Lakh litres
per day. The plant mainly produces Butter, Skimmed Milk Powder and Ghee.

Apart from selling the products under the Nandini brand, it still sells
products under the brand name Bounce (of the erstwhile Dempo Dairy
Industries Ltd.) in Goa and Bombay.

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MOTHER DAIRY
(An ISO - 9002 and HACCP IS 15000 Certified Only Dairy in South
India)
Mother Dairy, Bangalore, a Unit of KMF, is set up by NDDB on
7.12.1984. The Dairy has a unique nature of homogenizing the milk and
selling to its consumers through 92 Automatic Bulk Vending Booths and 92
FRP tanks. The Dairy also caters Milk in sachets and Milk Products through
its 289 retailers.
The average sale of milk per day is 2.08 Lakh litres during the year
2005-06. The entire requirement of milk is procured from Kolar Milk Union.
The Dairy produces Butter, Ghee, Curds, Ice Cream & Skim Milk Powder.
The activities of all the Departments at Mother Dairy are being carried out
through an on-line computer system.

ICE CREAM PLANT:


Mother Dairy has an Ice Cream Plant of 3000 Litres per day capacity
which was expanded to 10000 liters. Day during Feb.2006. The plant started
functioning from October 1997, producing Ice cream under Amul brand name
as well as Nandini brand name.
An Ice Cream sale on an average during 2006 is 8000 liters per day.

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POWDER PLANT:
Mother Dairy has a Powder Plant with a capacity of 30 Tons/day
commissioned on 16.10.2002. Surplus milk from Bangalore, Kolar, Mysore,
Mandya, Tumkur, Hassan is received for conversion.

NANDINI MILK PRODUCTS (NMP):


With the main objective of supplying nutritious milk to the under-
privileged through the Women and Child Welfare Department, the erstwhile
Miltone Project was started during

the year 1973 under assistance from Government of Karnataka. Out of


80,000 beneficiaries, mainly children, more than 70% belonged to Scheduled
Caste and Scheduled Tribe. The production of Groundnut protein enriched
Miltone, which was started in year 1973, was discontinued and Sterilized
Flavored Milk was introduced in its place during the year 1992.

The Miltone Project was renamed as "Nandini Milk Products" in the


year 1995 with specialized production of sweet-based milk products,
Sterilized Flavored Milk, Paneer, Khova etc.

Mysore Pak, Premium Cashew Burfi, Premium Badam Burfi are very
popular with the consumers who are highly appreciative of these quality milk
products at a reasonable cost.

Nandini Badam Powder, introduced during January 2000, is being


exported to Singapore in 200 gm packs. Badam Powder in 10 gms pouches
was also introduced during September 2002.

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POUCH FILM PLANT:
During the year 1995-96, due to inconsistency in terms of supplies and
qualities of Milk Packing Film by suppliers, KMF decided to establish a
Pouch Film Plant as backward integration.

The Project Report was prepared by Institute of Rural Management,


Anand. The project was established during 1997 with the help of National
Co-operative Dairy Federation of India and Central Institute of Plastics
Engineering & Technology (CIPET), Mysore, as technical consultant.

The Project investment made was Rs.393.36 lakhs.

Pouch Film Plant is situated in Marathally, HAL Road which is about 15


kms from Bangalore Bus Station.
Present demand for Pouch Film of KMF Units and Member Unions is 3600
MTs per annum.
The Pouch Film Plant began its commercial production since 1997-98.

The Total Plant capacity is 1200 tons per annum.


The film is being supplied to all the Member Unions & KMF Units
based on their requirement & schedule.

MILK - ESSENTIAL FOR NOURISHMENT:


Milk is nature's ideal food for infants and growing children in our
country, except in rare cases of lactose intolerance. The important place milk
occupies in our diet has been recognized since Vedic times, and all modern
research has only supported and reinforced this view. In fact, milk is now
considered not only desirable but essential from the time the child is born.

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The baby is recommended to be breast-fed until it is weaned and thereafter
given cow/buffalo/goat/sheep or similar domesticated mammal's milk till he
or she reaches 12 years of age.
The National Institute of Nutrition has recommended a minimum of 300 Gms
daily intake of milk for children between 1-3 years of age and 250 Gms for
those between 10-12 years, if they are vegetarian, and 250 Gms and 200 Gms
for the same age groups of non-vegetarian children. In our country, most such
adults consume milk only as whiteners for tea and coffee, some dahi or
buttermilk.

WHAT IS MILK?
Milk may be defined as the whole, fresh, clean, lacteal secretion
obtained by the complete milking of one or more healthy milky animals,
excluding that obtained within 15 days before or 5 days after calving or such
periods as may be necessary to render the milk practically colostrums-free
and containing the minimum prescribed percentages of milk fat and milk-
solids-not-fat. In India, the term 'milk', when unqualified, refers to cow or
buffalo milk, or a combination of the two.

CHEMICAL COMPOSITION OF MILK (%):


Wat Fat Prote Lacto A
Sl.No. Species
er in se sh
0.
1 Cow 86.6 4.6 3.4 4.9
7
Buffalo 0.
2 84.2 6.6 3.9 5.2
es 8

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Future Vision of KMF:
To consolidate the gains of Dairying achieved in the state of Karnataka
and with a view of efficiently chill, process and market ever developing and
increasing milk procurement with an utmost emphasis on the quality and in
the process conserve the Socio-Economic interest of rural milk producers.
Mission Statement of RBKMUL:
The Mission of RBKMUL is to provide timely technical facilities to members
of Dairy Co-operatives Society and collection of good quality milk from the
members by paying remunerative price and holds the responsibility of
Supplying good quality milk and milk products to its customers by
maintaining the Economic stability of the Union.

Objectives of the Organization:


To improve the customer satisfaction index.
Conservation of Natural Resources and energy by adopting energy
management system for cost effectiveness.
Improve the quality of milk received from chilling centre bulk coolers.
To provide assured technical support to members of Dairy Co-operative
Societies.
To provide good quality of milk and milk products to consumers.
To build village institution Co-operative sector to manage the Dairy
activities.

Areas of Operation:
RBKMUL is one of the well established Dairy; the Dairy operates its
business in three Districts at north side of Karnataka.

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1. Raichur District.
2. Bellary District
3. Koppal District

PRODUCT MIX OF KMF

Sl No. Product Name Maximum Price of


Sale
1. Toned Milk / Liter 17.00
2. Standard Milk 19.00
3. Subham Milk 20.00
4. Subham Milk 5 liter in pack 100.00
5. Standard Milk 200 Ml pack 4.00

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6. Double Toned Milk 16.00
7. Curd 200 gm 5.00
8. Curd 500 gm 10.00
9. Pot Curb 250 gm 7.00
10. Bulk Curd 16.00
11. Sweet Lassi 5.00
12. Masala Lassi 4.00
13. F.M. 200ml 4.00
14. SMP per kg 145.00
15. SMP per ltr 140.00
16. Pedha per kg 108.00
17. Khoa per kg 100.00
18. Paneer 200 gm pack / kg 120.00
19. Paneer Bulk 114.00
20. Ghee 200 Ml Pack / Liter 195.00
21. Ghee 500 Ml Pack / Liter 189.00
22. Ghee 1000 Ml Pack / Liter 185.00
23. Ghee 15 kg tin/Kg 180.00
24. Butter 100 gm Pack / Kg 160.00
25. Butter 500 gm Pack / Kg 154.00
26. Butter 50 gm (WDC) Pack / Kg 138.00

OTHER PRODUCTS

Sl No. Product Name Maximum Price of


Sale
1. Badam Powder 200 gm Tin/Kg 210.00

Badam Powder 200 gm Tin/Kg 42.00

Badam Powder 10 gm Tin/Kg 250.00


2. Mysore Pak 250 gm/Kg 220.00
Mysore Pak 250 gm pack 55.00
3. Jamoon Mix 200 gm / Kg 160.00
Jamoon Mix 200 gm / pack 32.00
4. SFM Bottles 12.00

5. Milk 200 Ml Pack (Tetra Pack) 10.00

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Details about Raichur District:

No. of No of Milk Collection


Talukas of Registered Functional in Kgs (Per
Raichur Societies Societies Day)
Raichur 20 10 1047
Manvi 49 36 5497
Sindhanoor 85 43 13597
Devadurga 06 00 00
Lingasugur 01 00 00
Total 161 89 20141

Bellary District:

Talukas of Regd. Societies No.of Milk collection


Bellary functional in Kgs/day
Societies
Bellary 58 26 412

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Siruguppa 59 24 2266
Hospet 24 05 529
14 01 206
Sandur

Kudligi 51 30 4558
H.B halli 36 34 6693
H. Hadagli 42 25 4876
Total 284 145 19540

Koppal District:

Taluks Regd. Societies No. of Milk collection


Functional in Kgs/day
Societies
Koppal 36 19 2206
Gangavati 61 37 9765
Yalburga 21 27 2006
Kustagi 17 07 542
Total 135 90 14519

Bellary Milk Union is marketing milk in Bellary, Koppal, and Raichur


Districts through a network of 500 agents, 11 milk parlors and 21 govt.
institutions. The average sale during the year 2008-09 is 90568 LPD. The
total demand for liquid milk in the urban areas of milk union has been
estimated at 1.90 lakhs LPD based on population, the unions market share is
around 47.7%. The private brand share is around 39% in the packet milk
share. Loose milk sale is estimated approximately 0.75 lakhs LPD by vendors
sourcing milk from near by villages.

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The different types of milk different in quality are

TYPES OF MILK FAT SNF


Full Cream Milk 6% 9%
Toned Milk 3% 8.5%
Standardized milk 4.5% 8.5%
Full Cream Milk 6% 9%
Shubham milk 6% 9%
.

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Organization chart of production department:

MANAGER

Deputy
Office staff
manager
Assistant Assistant Assistant
manager (stores) (account)

Technical officer Clerk Typist

Senior
supervisor

Junior
supervisor

Dairy operation

Dairy technician

Dairy worker

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The structure of production department in RBKMUL. Raichur Unit
Dairy Supervisor
Senior technician
Quality control dept
Packing dept

PRODUCTION PROFILE:

The Raichur Bellary Koppal Milk Union Limited Raichur is producing the
Milk and curd products.
Nandini Toned milk
Shubham Milk
Nandini curd
In RKBMUL the raw milk is processed to form the good quality of milk
during the processing the milk is differentiating depending on the content of
fat and SNF (solids not fat).
The different types of milk with difference in quality are:

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TYPES OF MILK CONTENT
Fat (in %) SNF (in
%)

Toned milk 3.0 8.5

Shubham Milk 5. 9.

OBJECTIVES OF THE PRODUCTION DEPARTMENT:

1. Maintain the standard quality of the product.


2. Keep the customer satisfaction by qualified products.
3. Cleanliness.
FUNCTIONS OF PRODUCTION DEPARTMENT:
1. Chilling the milk.
2. Pasteurizations of milk.
3. Package & store the milk in the stores at 4C

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FLOW CHART OF PRODUCTION PROCESS

COLLECTION OF MILK

CHILLING OF RAW MILK

CHILLED MILK STORAGE

PASTEURIZATION

STANDARDIZATION

PACKING

STORAGE

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MARKETING DEPARTMENT AND FINANCE DEPARTMENT
NUMBER OF EMPLOYEES DESIGNATION
01 Deputy Manager
01 Marketing Officer
01 Account assistant
01 Administration Assistant
01 Marketing consultant
01 Security guard
01 Computer operator

Functions:
Checking daily sales as per the respective agents.
Finding new areas where there is demand for milk
Issue tenders and receiving application for opening for new parlors and
agencies.
Fixing/organizing milk distribution routs
Sending of milk/milk products are per the indents.
Attending complaints from the agents.
Meeting agents to solve their problems.
Maintaining up date records of milk/milk products sale agents
arise/institutional wise.
Draws new advertising strategy.
Financial department Collect the cash from dealers.

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Annual Marketing Plan:
The Annual Marketing plan (AMP) 2009-10 is aiming at achieving the
sales target of 1.01 Lakhs LPD by way of market coverage, market
penetration and milk marketing extension work by field marketing staff with
assumption that the quality of market milk will be improved on a continuous
basis.
Annual marketing plan is prepared in order to achieve the sales target
by various marketing strategies, market interventions and sales promotional
efforts with financial implications to be evolved in the form of an annual
marketing plan to be implemented by the marketing staff of RBKMUL.

Objectives of Annual Marketing Plan:

a. The basic objectives of preparation of AMP is to evolve the


Unions sales and marketing strategies during year 2009-10 with
the ultimate aim of increasing the sales volume by fulfilling
customer satisfaction, customer relation and loyalty. The greatest
challenge of sales and milk marketing of the union is to keep up
wit the inevitable and constant changes in market place with the
continuous entry of competitors and with the customers changing
needs and wants in terms of milk product quality and services
associated with its delivery and availability. It provides an insight
into apply the best milk marketing practices in developing sales
and marketing strategies and translating market changes into
business opportunities.

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Priorities and key objectives of RBKMUL during 2009-10

1. To keep a close watch on the customer needs and expectations on a


continuous basis.
2. Studying as to what affects the RBKMUL in the outside marketing
environment.
3. Re positioning milk and its products and redefining services in the
market.
4. Managing advertisement campaign, direct marketing, publicity, special
events etc..
5. Satisfying, retaining and building loyal customer through Customer
Relationship Management
6. Motivating the field marketing team through training.
7. Developing appropriate and area specific channel of distribution of milk
and milk products
8. Controlling and measuring the financial implications of sales and
marketing extension activities.

37
Major Competitors of the RBKMUL:
As per Business market major players in this region are, Arokya,
Vijaya, TejaGold, Ksheera, Krishna and local loose milk sellers.

According to the survey I made in Maddipet area of Raichur, most of


the customers are using Non Nandini brands either Arokya, Teja or loose
milk. The common reason I found that Nandini milk is containing excess
amount of water compare to others. When I discussed about this with
marketing manager, he told that most of the Nandini retailers are not loyal
and they are promoting other brands because they offer more margin to them
than Nandini and its variants.

38
Title of the Project:
The Study on Consumer Perception towards Nandini Milk

Objectives of the Study:


1. To know the consumer perception towards Nandini milk.
2. To know the customers awareness level.
3. To find the competitors effect on Nandini sales.

Statement of the problem:


Declining Nandini sales due to heavy competition in the market and the lack
of loyal retailers. .
Sources of Data:
1. Primary Data
2. Secondary Data

1. Primary Data: The information is collected from the personal interaction


with the Employees of RBKMUL.
2. Secondary Data: this has been collected through company reports,
manuals. And
Information form the internet sources
Information from the materials provided by the concern

Has done marketing survey to know the consumer perception towards


Nandini milk.

39
Research Methodology:

Topic Of the study:


Consumers perception towards Nandini milk
.
Research Objectives:

To determine Consumers perception towards Nandini milk.


To Study the effectiveness of service offered by Nandini. ( Quality,
Price, Door delivery)
To know the awareness level of Nandini
To understand consumer buying behavior of consumers.
To understand and study the impact of competitors on customers of
Nandini milk.

Need of the study:


Try to know the reasons for declining Nandini sales although having good
brand name in the market and to understand the consumers changing
buying behaviour which may help the company to promoting its sales
through new and effective strategies hence repositioning milk and milk
products and re defining services in the market.

40
Scope of the study:
The scope of the project is to know the consumers perception towards
Nandini in recent trends.
The study will help the company to understand the behavior of
individual while purchasing milk.
The study will help the company to know the expectation of company.
The study will help the company to make strategies to improve their
services to meet customers expectation.
Scope of my study is restricted only to Raichur city

Limitations of the study:


Time limitation of 3 weeks.
Limited area of survey.
Customers lack of interest while giving true feedback.

Sampling and the Testing of hypothesis:

For this research study I have chosen 100 customers as a sample size,
among these 30 for pilot study. My sample unit will be 2 to 3 areas of
Raichur city. My sampling elements will be existing and non existing
customers.

Review of earlier projects:


In many earlier projects the competitors effect and excess content of water
in the Nandini milk were the major reasons for decreasing its sales. As per the
previous surveys, irregularity in delivery of milk, bad smell and

41
availability of small pouches i.e. 100 ml in Non Nandini brands made them to
shift their brand from Nandini to others.

Data Collection Methods:


The information necessary for this research study is collected
by tapping primary and secondary sources. The sources are as follows:
Primary Sources:
a) Questionnaire
b) Personal interaction

Secondary Sources:

a) Company Websites.

b) Related Information from Internet

c) Company Reports.

42
SAMPLING PROCESS:
Population: Customers from the Raichur city.
Sampling frame: Nijalingappa colony, Venkateshwar colony,
Mouleshwar chowk areas in Raichur.
Sampling unit: House wives, Professionals.
Sampling size: 100 units.
Sampling method: Convenience Sampling

Measurement and Analysis Techniques Using SPSS software


The measurement and evaluation of the data is done using
statistical tools and techniques such as:-
Simple percentage method
Graphical representation Using data code sheet.

43
Hypothesis testing:
For this Survey I have chosen 100 as a sample size, among this 30 as a
pilot study and in this sample size of the consumers Feel Nandini will
enhance richness to Tea/Coffee
30% of 100 sample size is considered for pilot study.

100*30/100=30
Out of 30 respondents 18 respondents feel that Nandini will enhance richness
to Tea/Coffee

18/30= 0.60
0.60*100= 60%

Then My Null and alternative hypothesis are,

H0>= More then are Equal to 60% of respondent may say it will enhance
richness.

H1<. Then 60% of respondent may not say it will enhance richness.

N=total sample size is 100.

P= .60
.60 (1-.60)
Standard error= 100-1

= .60 X . 40

44
99

S = 0.049
Po= 57/100
= 0.57

Z= Po-P/S

0.57-0.60/0.049
= 0.612

Conclusion: Accept Ho because it falls under the confidence level i.e. 1.64 it
states that more than 60% of respondents feel Nandini will enhance richness
to Tea/Coffee.

45
Data analysis and interpretation:
Frequencies

Statistics

Are you aware of Nandini products


N Valid 100
Missing 0

Are you aware of Nandini products

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 100 100.0 100.0 100.0

Are you aware of Nandini products


120

100

80

60

40
Frequency

20

0
yes

Are you aware of Nandini products

Analysis: 100% of the respondents are aware of Nandini milk.

Interpretation: From the above data it can be said that almost all know about
Nandini milk.

46
Frequencies
Statistics

How do you come to know about Nandini milk


N Valid 100
Missing 0

How do you come to know about Nandini milk

Cumulative
Frequency Percent Valid Percent Percent
Valid Televison 19 19.0 19.0 19.0
Newspaper 16 16.0 16.0 35.0
Banners 16 16.0 16.0 51.0
Friends and others 49 49.0 49.0 100.0
Total 100 100.0 100.0

How do you come to know about Nandini milk


60

50

40

30

20
Frequency

10

0
Televison Newspaper Banners Friends and others

How do you come to know about Nandini milk

Analysis: Nearly 50% of respondents came to know Nandini milk by


friends and others, 19% by T.V and 32% by both banners and news
papers.

Interpretation: We can say half of the respondents know Nandini by


Friends and relatives.

47
Frequencies
Statistics

Which brand of milk yor are consuming


N Valid 100
Missing 0

Which brand of milk yor are consuming

Cumulative
Frequency Percent Valid Percent Percent
Valid Arokya 8 8.0 8.0 8.0
Nandini 45 45.0 45.0 53.0
Teja Gold 18 18.0 18.0 71.0
Vijaya Gold 12 12.0 12.0 83.0
Any other 17 17.0 17.0 100.0
Total 100 100.0 100.0
I

Which brand of milk yor are consuming

Arokya
Any other

Vijaya Gold

Nandini

Teja Gold

Analysis: Out of the 100 respondents 45 are consuming Nandini milk,


remaining 55 are using other brands like Teja (18), Vijaya (12), Arokya (8)
and 17 others.

Interpretation: A major part respondents are using Nandini milk.

48
Frequencies

Statistics

Which of the following factors influences to choose the brand ?


N Valid 100
Missing 0

Which of the following factors influences to choose the brand ?

Cumulative
Frequency Percent Valid Percent Percent
Valid Price 12 12.0 12.0 12.0
Quality 55 55.0 55.0 67.0
taste 22 22.0 22.0 89.0
Availability 11 11.0 11.0 100.0
Total 100 100.0 100.0

Which of the following factors influences to choose the brand ?

Availability

taste
Price

Quality

Analysis: The quality factor of 55%, taste factor 22%, price 12% and
availability 11% influences in choosing the brand.

Interpretation: Quality and taste factors (77%) play the major role while
choosing a brand

Frequencies

49
Statistics

have you ever used nandini milk ?


N Valid 100
Missing 0

have you ever used nandini milk ?

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 96 96.0 96.0 96.0
no 4 4.0 4.0 100.0
Total 100 100.0 100.0

have you ever used nandini milk ?


120

100

80

60

40
Frequency

20

0
yes no

have you ever used nandini milk ?

Analysis: 96% of respondents are used Nandini milk. Only 4% of them


have not used Nandini yet.

Interpretation: Out of 100 respondents 55 are not consuming Nandini


milk, in that 55 more than 50 have used Nandini once.

Frequencies

50
Statistics

What is your opinion about Nandini milk ?


N Valid 100
Missing 0

What is your opinion about Nandini milk ?

Cumulative
Frequency Percent Valid Percent Percent
Valid Costly 15 15.0 15.0 15.0
cheap 18 18.0 18.0 33.0
Very costly 5 5.0 5.0 38.0
Average 62 62.0 62.0 100.0
Total 100 100.0 100.0

What is your opinion about Nandini milk ?

Costly

cheap

Average

Very costly

Analysis: 62% of respondents feel Nandini price is average, 18% feels it


as cheap and remaining 20% feels it as a costly.

Interpretation: About 80% of respondents feel Nandini price is OK.

Frequencies

51
Statistics

Quality of Nandini
N Valid 100
Missing 0

Quality of Nandini

Cumulative
Frequency Percent Valid Percent Percent
Valid Good 24 24.0 24.0 24.0
Average 56 56.0 56.0 80.0
Poor 20 20.0 20.0 100.0
Total 100 100.0 100.0

Quality of Nandini

Poor
Good

Average

Analysis: 24% of respondents feel Quality of Nandini is good, 56% feel


its average and 20% feel its poor.

Interpretation: 56% of respondents feel its not bad.

Frequencies

52
Statistics

How do you rate Nandini milk in


comparison with other brands ?
N Valid 100
Missing 0

How do you rate Nandini milk in comparison with other brands ?

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Poor 5 5.0 5.0 5.0
Bad 12 12.0 12.0 17.0
Average 51 51.0 51.0 68.0
Good 28 28.0 28.0 96.0
Better 4 4.0 4.0 100.0
Total 100 100.0 100.0

How do you rate Nandini milk in comparison with other brands ?


60

50

40

30

20
Frequency

10

0
Very Poor Bad Average Good Better

How do you rate Nandini milk in comparison with other brands ?

Analysis: 51% says its average, 32% feel well and 17% says its not up to
the mark.

Interpretation: It shows that more than 65% of respondents not feels too
good with comparing others.

Frequencies

53
Statistics

Do you feel nandini milk enhance the richness of Tea/Coffee


N Valid 100
Missing 0

Do you feel nandini milk enhance the richness of Tea/Coffee

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 57 57.0 57.0 57.0
No 43 43.0 43.0 100.0
Total 100 100.0 100.0

Do you feel nandini milk enhance the richness of Tea/Coffee


60

50

40

30

20
Frequency

10

0
Yes No

Do you feel nandini milk enhance the richness of Tea/Coffee

Analysis: 57% of respondents say Nandini will enhance richness to


Tea/Coffee and 43% says its not.

Interpretation: More than 57 respondents agree Nandini will enhance


richness to Tea/coffee.

Frequencies

54
Statistics

How much are you satisfied with the taste of Nandini milk ?
N Valid 100
Missing 0

How much are you satisfied with the taste of Nandini milk ?

Cumulative
Frequency Percent Valid Percent Percent
Valid 0 to 30 H.dissatisfied 1 1.0 1.0 1.0
40 to 70 Satisfied 59 59.0 59.0 60.0
80 to 100 H.satisfied 40 40.0 40.0 100.0
Total 100 100.0 100.0

How much are you satisfied with the taste of Nandini milk ?

80 to 100 H.satisfie 0 to 30 H.dissatisfi

40 to 70 Satisfied

Analysis: 40% of respondents are highly satisfied of Nandini and 59%


feel its average.

Interpretation: Most of responses fall within highly satisfied and satisfied


range.

Frequencies

55
Statistics

Thickness
N Valid 100
Missing 0

Thickness

Cumulative
Frequency Percent Valid Percent Percent
Valid Very bad 2 2.0 2.0 2.0
bad 22 22.0 22.0 24.0
Average 62 62.0 62.0 86.0
Good 13 13.0 13.0 99.0
better 1 1.0 1.0 100.0
Total 100 100.0 100.0

Thickness

better
Very bad
Good

bad

Average

Analysis: 62% of respondents say thickness of Nandini milk is average,


22% of them says its bad and 2% feels its too bad.

Interpretation: Only about 13% of respondents feel thickness of Nandini


is good.

Frequencies

56
Statistics

Smell
N Valid 100
Missing 0

Smell

Cumulative
Frequency Percent Valid Percent Percent
Valid Very bad 5 5.0 5.0 5.0
Bad 34 34.0 34.0 39.0
Average 46 46.0 46.0 85.0
Good 12 12.0 12.0 97.0
Better 3 3.0 3.0 100.0
Total 100 100.0 100.0

Smell

Better
Very bad
Good

Bad

Average

Analysis: 46% feels smell of Nandini is average, 39% says its bad and
only 15% feels its good.

Interpretation: Most of the customers are not happy with the smell of the
Nandini.

Frequencies

57
Statistics

Availability/Delivery
N Valid 100
Missing 0

Availability/Delivery

Cumulative
Frequency Percent Valid Percent Percent
Valid Very bad 1 1.0 1.0 1.0
Bad 5 5.0 5.0 6.0
Average 52 52.0 52.0 58.0
Good 33 33.0 33.0 91.0
Better 9 9.0 9.0 100.0
Total 100 100.0 100.0

Availability/Delivery
60

50

40

30

20
Frequency

10

0
Very bad Bad Average Good Better

Availability/Delivery

Interpretation: 52% of respondents say availability of Nandini is average,


33% feels its good 9% says better only 6% says its poor.

Analysis: the above data shows that availability factor is not a problem for
Nandini.

Frequencies

58
Statistics

packing
N Valid 100
Missing 0

packing

Cumulative
Frequency Percent Valid Percent Percent
Valid Bad 16 16.0 16.0 16.0
Average 49 49.0 49.0 65.0
Good 30 30.0 30.0 95.0
Better 5 5.0 5.0 100.0
Total 100 100.0 100.0

packing
60

50

40

30

20
Frequency

10

0
Bad Average Good Better

packing

Analysis:49% of respondents says packaging is average, 30% feels its


good 16% of them says it is poor and 5 0f them feels its too good.

Interpretation: More than 80% of the respondents are do not have


complaint in packaging of Nandini.

Frequencies

59
Statistics

For health
N Valid 100
Missing 0

For health

Cumulative
Frequency Percent Valid Percent Percent
Valid Bad 4 4.0 4.0 4.0
Average 50 50.0 50.0 54.0
Good 41 41.0 41.0 95.0
Better 5 5.0 5.0 100.0
Total 100 100.0 100.0

For health

Better Bad

Good

Average

Analysis: 50% feels Nandini milk is average for health and 41% feels its
good for health. 5% says its too good and only 4% not agree with it.

Interpretation: Only 4% of respondents completely not agreed that


Nandini is good for health.

Frequencies

60
Statistics

Totaly are you satisfied with Nandini milk ?


N Valid 100
Missing 0

Totaly are you satisfied with Nandini milk ?

Cumulative
Frequency Percent Valid Percent Percent
Valid very bad 3 3.0 3.0 3.0
Bad 17 17.0 17.0 20.0
Average 47 47.0 47.0 67.0
Good 27 27.0 27.0 94.0
Better 6 6.0 6.0 100.0
Total 100 100.0 100.0

Totaly are you satisfied with Nandini milk ?

Better

Good very bad

Bad

Average

Analysis: 47% of respondents neither satisfied nor dissatisfied with


Nandini milk where 33% of them are satisfied remaining 20% not
satisfied.
Interpretation: about 67% of them are not completely satisfied with
Nandini milk. 33% are totally satisfied.

Frequencies

61
Statistics

Which size of packaging do you prefer more ?


N Valid 100
Missing 0

Which size of packaging do you prefer more ?

Cumulative
Frequency Percent Valid Percent Percent
Valid 250 ml 8 8.0 8.0 8.0
500 ml 79 79.0 79.0 87.0
1 Ltr 13 13.0 13.0 100.0
Total 100 100.0 100.0

Which size of packaging do you prefer more ?

1 Ltr
250 ml

500 ml

Analysis: 79% of respondents prefer 500ml size, 13% prefers 1000 ml


and only 8% prefers 250 ml size.

Interpretation: Major portion of respondents i.e. 79% prefers half liter


size and remaining prefers 1 liter and 250 ml.

Frequencies

62
Statistics

Hoe do you differentiate with other brand in terms of


N Valid 100
Missing 0

Hoe do you differentiate with other brand in terms of

Cumulative
Frequency Percent Valid Percent Percent
Valid Quality 22 22.0 22.0 22.0
Service provide 15 15.0 15.0 37.0
Customer relation 9 9.0 9.0 46.0
Health conscious 43 43.0 43.0 89.0
Any other 11 11.0 11.0 100.0
Total 100 100.0 100.0

Hoe do you differentiate with other brand in terms of


50

40

30

20
Frequency

10

0
Quality Customer relation Any other
Service provide Health conscious

Hoe do you differentiate with other brand in terms of

Analysis: 43% of respondents differentiate Nandini as health conscious


with other brands 22% differentiates it by quality, 15% by service
provided remaining with other reasons.

Interpretation: most of the respondents differentiate Nandini milk by


health conscious 43% and by quality 22%

Frequencies

63
Statistics

At what extent the technology has


influenced your buying behavior
N Valid 100
Missing 0

At what extent the technology has influenced your buying behavior

Cumulative
Frequency Percent Valid Percent Percent
Valid Most 8 8.0 8.0 8.0
Somewhat 25 25.0 25.0 33.0
Don't Know 63 63.0 63.0 96.0
Not 2 2.0 2.0 98.0
Any other 2 2.0 2.0 100.0
Total 100 100.0 100.0

At what extent the technology has influenced your buying behavior

Any other
Not Most

Somewhat

Don't Know

Analysis: 63% of respondents do not know whether technology has


changed their buying behaviour, 25% feels some what it does and
8%says it influenced the most.
Interpretation: Technology has not influenced buying behavior of the
most of the customers.

Frequencies

64
Statistics

Which brand comes to your mindwhen you think of milk ?


N Valid 100
Missing 0

Which brand comes to your mindwhen you think of milk ?

Cumulative
Frequency Percent Valid Percent Percent
Valid Arokya 11 11.0 11.0 11.0
Nandini 65 65.0 65.0 76.0
Teja gold 13 13.0 13.0 89.0
Vijaya 6 6.0 6.0 95.0
Any other 5 5.0 5.0 100.0
Total 100 100.0 100.0

Which brand comes to your mindwhen you think of milk ?


Any other

Vijaya
Teja gold
Arokya

Nandini

Analysis: For 65% of respondents says Nandini brand comes to their


mind when they think of milk.

Frequencies

65
Statistics

Reasons for the alternative brand.


N Valid 100
Missing 0

Reasons for the alternative brand.

Cumulative
Frequency Percent Valid Percent Percent
Valid Same price 9 9.0 9.0 9.0
Same quality 34 34.0 34.0 43.0
Same taste 16 16.0 16.0 59.0
Any other 40 40.0 40.0 99.0
5 1 1.0 1.0 100.0
Total 100 100.0 100.0

Reasons for the alternative brand.

5 Same price

Any other

Same quality

Same taste

Analysis: 34% respondents reason for alternative brand other than Nandini is

same quality, 16% is same taste and 40% are other reasons like thickness,

availability etc.

Findings:

66
The customer awareness level towards Nandini milk is excellent
because all the 100 respondents are aware of it.
From the aware respondents 45% of respondents are using Nandini
milk.
Factors like Quality, taste and price influences more while choosing a
brand respectively.
Only 24% of respondents feels quality of Nandini milk is good where
56% of are in- between good and bad.
Only 32% 0f respondents say Nandini milk is better with comparison of
others.
47% of respondents do not agree to that Nandini will enhance richness
to Tea/coffee.
40% of respondents feels that Nandini taste is good where 59% feels
its average.
Only 13% of respondents are totally satisfied with the thickness of
Nandini.
39% of respondents feel Nandini milk is having bad smell.
More than 80% do not have any complaint regarding packaging of
Nandini.
Only 4% feels Nandini is not good for health.
Only 33% of respondents are totally satisfied with the performance of
Nandini milk.
Most of the respondents prefer 500 ml. size of packaging i.e. nearly
80%.
43% of respondents differentiate Nandini as health conscious milk with
other brands.
Out of 100 Nandini comes to 65 respondents mind when they think of
milk.

67
More thickness, same taste and availability are the key reasons for
alternative brand other than Nandini.

68
FINDINGS:
The customer awareness level towards Nandini milk is excellent because
all the 100 respondents are aware of it.
From the aware respondents 45% of respondents are using Nandini milk.
Factors like Quality, taste and price influences more while choosing a
brand respectively. Out of 100 Nandini comes to 65 respondents mind
when they think of milk.
More thickness, same taste and availability are the key reasons for
alternative brand other than Nandini

SUGGESTIONS:

o The Nandini brand is having trust name in the market where it


operates and still the market is open for acquire, Company may
take advantage of it through advertisements.
o The company may convince customers that due to less fat
thickness of Nandini is less and that is good for health through
advertisements/banners.
o The company may keep one employee as Customer Relationship
Executive. Who will co ordinates between customers and
company and also with retailers who may promote Nandini milk
effectively on regular basis.

69
LIMITATION OF THE STUDY:
I. This study covers only Raichur Unit, the part of RBKMUL.
II. The study is restricted for only 4 weeks.
III. The survey made in only 2 to 3 areas of Raichur city
The study only focuses on consumer perception towards Nandini milk only

SUGGESTIONS

o The Nandini brand is having trust in the market where it operates and
still the market is open for acquire, Company may take advantage of it
through advertisements.
o The company may convince customers that due to less fat thickness of
Nandini is less and that is good for health through
advertisements/banners.
o The company may keep one employee as Customer Relationship
Executive. Who will co ordinates between customers and company and
also with retailers who may promote Nandini milk effectively on regular
basis.
o Like Bangalore Union they may open Coin milk parlors at suitable
places.
o It will be better if the company takes some necessary actions to reduce
bad smell
o In addition to above these company can have close watch on customers
to know their changing needs and wants. And also on competitors for
benchmarking.
.

70
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

STRENGTHS:
Demand profile: Absolutely optimistic.
Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing equipment, you
can keep on adding to your product line.
Availability of raw material: Abundant. Presently, more than 80 per cent
of milk produced is flowing into the unorganized sector, which requires
proper channelization.
Technical manpower: Professionally-trained, technical human resource
pool, built over last 30 years.

WEAKNESSES:
Perishability: Pasteurization has overcome this weakness partially. UHT
gives milk long life. Surely, many new processes will follow to improve milk
quality and extend its shelf life.
Lack of control over yield: Theoretically, there is little control over milk
yield. However, increased awareness of developments like embryo transplant,
artificial insemination and properly managed animal husbandry practices,
coupled with higher income to rural milk producers should automatically lead
to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But with the
overall economic improvement in India, these problems would also get
solved.

71
Problematic distribution: Yes, all is not well with distribution. But then
if ice creams can be sold virtually at every nook and corner, why cant we sell
other dairy products too? Moreover, it is only a matter of time before we see
the emergence of a cold chain linking the producer to the refrigerator at the
consumers home!
Competition: With so many newcomers entering this industry,
competition is becoming tougher day by day. But then competition has to be
faced as a ground reality. The market is large enough for many to carve out
their niche.

OPPORTUNITIES:
"Failure is never final, and success never ending. Dr Kurien bears out this
statement perfectly. He entered the industry when there were only threats. He
met failure head-on, and now he clearly is an example of never ending
successes! If dairy entrepreneurs are looking for opportunities in India, the
following areas must be tapped:

Value addition:

There is a phenomenal scope for innovations in product development,


packaging and presentation. Given below are potential areas of value
addition:
Steps should be taken to introduce value-added products like shrikhand,
ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead
to a greater presence and flexibility in the market place along with
opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the
market place.

72
A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export
opportunities
Yet another aspect can be the addition of infant foods, geriatric foods
and nutritional.

Export potential:

Efforts to exploit export potential are already on. Amul is exporting to


Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new
GATT treaty, opportunities will increase tremendously for the export of
agri-products in general and dairy products in particular.

THREATS:
Milk vendors, the un-organized sector:

Today milk vendors are occupying the pride of place in the industry.
Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.

The study of this SWOT analysis shows that the strengths and
opportunities far outweigh weaknesses and threats. Strengths and
opportunities are fundamental and weaknesses and threats are transitory. Any
investment idea can do well only when you have three essential ingredients:
entrepreneurship (the ability to take risks), innovative approach (in product
lines and marketing) and values (of quality/ethics).

The Indian dairy industry, following its delicensing, has been attracting a
large number of entrepreneurs. Their success in dairying depends on factors
such as an efficient yet economical procurement network, hygienic and cost-
effective processing facilities and innovativeness in the market place. All that

73
needs to be done is: to innovate, convert products into commercially
exploitable ideas. All the time keep reminding yourself: Benjamin Franklin
discovered electricity, but it was the man who invented the meter that really
made the money!

74
CONCLUSION:

After interacting with the marketing officer and other employees of


RBKMUL and the survey I made in Raichur city, Milk adulteration, lack of
loyal retailers and unethical competitors who use harmful chemicals to
increase thickness and durability to promote sales are the big threat to the
Nandini milk. Although still Nandini is having good reputation and brand
image for its factors like less price, health conscious and experienced player
in the market.

75
APPENDICES:

Questionnaire on Marketing Survey.

PERSONAL INFORMATION OF CUSTOMER

Name: .

Age: ..

Gender: Male Female:

Qualification:

Occupation:

Income:

Family size:

No of Children below 12:

Address

Contact No:

76
QUESTIONNAIRE

1) Are you aware of Nandini milk?

Yes No

If Yes

2) How did you come to know about Nandini milk?

Televison

Newspaper

Banners

Friends and others

3) Which brand of milk are you consuming?


Arokya Nandini Teja gold Vijaya gold any other

4) Which of the following factors influences you to choose the brand?


Price Quality Taste Availability
Packaging Any other ..

77
5) Have you ever used Nandini milk?
Yes No

6) What is your opinion about Nandinis price

Costly Cheap
Very costly Average

7) Quality of Nandini milk


Good Average Poor

8) How do you rate Nandini milk in comparison with other brands?

Very poor Bad Average Good


Better

9) Do you feel that Nandini milk enhance the richness of Tea/coffee?


Yes No

10) How much are you satisfied with the taste of Nandini Milk?

78
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
Highly Satisfied
High
Dissatisfied
satisfied

11) Rate the following factors with respect to Nandini milk.

Thickness

Very bad Bad Average Good


Better

Smell

Very bad Bad Average Good


Better

Availability/Delivery

Very bad Bad Average Good


Better

Packaging

Very bad Bad Average Good


Better

79
For Health

Very bad Bad Average Good


Better

13) How do you rate Nandini milk with consideration of Durability?

Very bad Bad Average Good


Better

14) Totally are you satisfied with Nandini milk?

Very bad Bad Average Good


Better

15) Among the following which brand you prefer in Nandini & other brands
rate the factors

Rating Tast Quality Thickness Price Packaging


Features e
Nandini
Any other
brand

80
Excellent =5 Very good =4 Good =
3
Bad = 2 Very bad =1

16) Which size of packaging do you prefer more?

1)100 ml 2) 250 ml 3) 500 ml 4) 1 liter.

17) How do you differentiate Nandini with other brand in terms of, (Mark
any One)
1) Quality 2) Service provided 3) Customer relation 4) Health
conscious
5) Any other .

18) At what extent the technology has influenced your buying behavior
Most Somewhat dont know Not Not
at all

19) Which brand comes to your mind when you think of milk?
Arokya Nandini
Teja Gold Vijaya Any other ..

81
20) Which will be your alternative brand of milk?

21) Reasons for the alternative brand.


Same price same quality same taste any other .

22) Any suggestions for Nandini milk?


..
...
..

Thank you

82
Bibliography
Books:

(a) R.C. Kothari Research Methodology

(b) Philip Kotler Marketing Management

Magazines

(1) Pepsi & Coke Journals


(2) Business Today
(3) Business India
(4) Business World

Newspaper

(1) Times of India


(2) Economic Times

Websites:
WWW.Kmfnandini.com
WWW.NDDB.com

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