CHAPTER-I

COMPANY PROFILE

Overview to Tara Health Food Ltd.

The Company was incorporated in 1977 and was acquired in 2004 by our
Promoters, including S. Balwant Singh, our Managing Director, who is a first-
generation entrepreneur with approximately nine years of experience in the
compounded cattle feed industry. We are amongst few organized players of the
oil and cattle feed industry in India, catering to the needs of both human and
animal nutrition through our products with a present capacity of 120 TPD
refining capacity, 250 TPD of solvent extraction and 250 TPD of cattle feed
manufacturing each at Punjab Unit, Jammu unit, Sitarganj unit and
Hanumangarh unit.

The future will see us emerging as an even bigger player as we plan to setup
300 TPD of refining capacity and 250 TPD of cattle feed manufacturing
facilities at Bihar, Gujarat and 400 TPD of cattle feed at Punjab unit. Our group
has been growing at an unexceptional rate since 2004 due to the combined
efforts of our promoters and the team.
 1.1 Vision & Mission

 VISION
We envisage capitalizing on our understanding of customer's needs, distribution
and business acumen to reach the zenith of success. We envision a healthy
tomorrow where people live life to its fullest. We are determined to be the
India's number one manufacturer of cattle feed and edible oil.
 MISSION
We believe in contributing our commitment to excellence in every aspect of
production and distribution of healthy products. We aspire to discover newer,
bigger and brighter horizons for ourselves, our partners and above all for our
consumers. Focus of our company while offering any product to the customer is
health with value.

1.2 Business Policy

 We believe that we are amongst the few organized players in the

compounded cattle feed industry with a well established dealer network
We believe that we are one of the few organized players in the compounded
Cattle feed industry, with manufacturing units across various states in northern
India, a solvent extraction plant and a well-established dealer network. We
believe that we have been able to create a market for our products and expand
our operation to achieve economies of scale that other unorganized producers
of cattle feed are unable to do.
 Proximity of manufacturing facilities to areas with high raw materials
resources and consumer demand
We are able to effectively procure raw materials for our cattle feed business and
edible oil production, and at the same time, have access to a considerably large
consumer base especially in relation to our compounded cattle feed business. As
we have established our operations in northern India over the period since our
inception, we believe that we can exploit our established dealer network and the
expertise gained from our cattle feed business in expanding our edible oil
business and consolidating our compounded cattle feed business.
 Stringent quality control measures for raw materials and other inputs
Achieving high quality standards in our products has been one of our primary
goals. We endeavor to utilize only quality raw materials, whether it be rice bran
for compounded cattle feed production or crude oil procured for our edible oil
refineries.
 Involvement of senior management team in research and development
Our senior management team, including certain Directors, has substantial
involvement in the R&D center at Jitwal Kalan in the state of Punjab that
verifies the quality of raw materials along with undertaking research to develop
new products and determine a cost-effective formulae for production of our
compounded cattle feed and edible oils products.

1.3 Business Strategy

Our aim is to strengthen our position as an established producer of cattle feed

and enhance our production capacity and increase our geographical reach in
India. In addition, we aim to improve the brand recognition and positioning of
our edible oil products in the Indian market.

Increase our production capacity

As part of our growth strategy and with a view to take advantage of emerging
business opportunities and the expansion of present manufacturing facilities and
refinery we will be able to manufacture our planned portfolio of products and
tap emerging business opportunities and markets in the cattle feed industry and
edible oil.
Strengthen our brand recognition

We have been conducting awareness campaigns at regular intervals to educate

our existing and prospective customers regarding the health of cattle and
humans and the importance of wellness as a key to enhancing productivity.

Continue focus on research and development

Our R&D center is engaged in developing new products and verifying the
quality of raw materials being procured for our cattle feed and edible oil
production prior to our Company placing bulk orders for raw materials. We
believe that our in-house R&D abilities will further enable us to expand our
product offerings in both the cattle feed and edible oil segments which, we
believe, have potential for continued growth.

Expand our dealer network

We have an established and wide network of dealers for our compounded cattle
feed business and of distributors and are continually focusing on exploring
opportunities to further penetrate into remote areas of such and other states. We
plan to consolidate our presence across the northern regions of India and will
continue to assist our existing dealers and distributors in enhancing their
performance and improving their sales.

Expand geographical reach

We seek to expand and enhance our presence in our existing business segments
of compounded cattle feed and edible oil by identifying markets where we can
provide cost-effective and quality products to prospective consumers. In the
domestic market, we seek to capitalize on our existing experience, established
contacts with dealers, distributors and suppliers and familiarity with local
working conditions. We are also actively seeking opportunities to market our
edible oil products in the international market, particularly in Europe.
Focus on manufacturing edible oil products to cater to demand by health-
conscious consumers

Our edible oil products target the growing demand for olive oil in health-
conscious consumers. Consumer preference for non-traditional edible oils, such
as olive oil, has witnessed a substantial increase as non-traditional edible oils
are considered to be low in cholesterol and fatty acids thereby making them
healthier than traditional cooking oils. We believe that increased consumer
interest and demand in ‘healthy’ edible oils will lead to an increased demand for
our olive oil products and blended oil offerings.

1.4 Research & Development

Since inception, we have placed a strong emphasis on developing our in-house

R&D abilities, which we believe, has been instrumental in our growth. In the
cattle feed segment, we commenced commercial operations in 2005 with the
introduction of ‘Tara Feed’, followed by ‘Raath Gold’. In the cattle feed
segment, we have added four products, premium and low-cost, including a feed
supplement, since commencing commercial production in 2005. In the edible oil
segment, we have developed seven products, including two blended oils and
olive oil, since commencing commercial production in 2008 through our own
development initiatives and efforts. We believe that our in-house R&D
initiatives have resulted in the expansion of our product portfolio, maintaining
the quality of our products and translating feedback received from customers,
dealers and distributors into concrete results.

Our research and development activities emphasize designing and developing

new products keeping in mind market standards, customer requirements, cost of
production and compliance with applicable standardization norms. Our R&D
centre is located near our manufacturing facilities and refinery at Jitwal Kalan in
the state of Punjab.
In 2008, we forayed into refining and processing olive oil and through the
consistent efforts of our in-house R&D team have been able to develop what we
believe is an ideal blend of olive oil and rice bran oil. Such blended oils have
negligible cholesterol and negligible trans-fatty acids that are widely-accepted
to be the primary causes of heart related diseases. This allows us to cater to the
growing demand for health-conscious edible oil. We are developing and intend
to launch, upon successful completion of the tests being conducted by our R&D
center. We plan to expand our product-portfolio in both the cattle feed and
edible oil segments, by continuing to utilize our in-house R&D abilities
optimally with a special focus on developing products to meet specific
requirements of our customers.

1.5 Manufacturing & Production

 Solvent Extraction

Solvent Extraction use oil-cake as their raw material and produces the oil
through a chemical process. They chemically remove oil from the oil cake.
Solvent Extraction Plant: Following is the process we follow.
Preparatory Section - In the preparatory section of the solvent extraction plant,
rice bran that is in a powder form is converted into pellet form.

Extraction Section - The pellets obtained from the preparatory section are
subjected to extraction. Residual is known as “Miscella”.

Distillation Section - The miscella obtained after the extraction process is

distilled in vacuum distillation process where it is heated and steamed, So as to
obtain the Hexane- free rice bran oil which is transferred to storage section and
other liquidified hexane is re- circulated in the extraction process.

De-Solventization Section - The residual material from the extraction process

leaves behind de-oiled rice bran enriched with hexane solvent. This material is
again heated and steamed so as to get the hexane free De-Oiled rice bran. Dried
and hexane free de-oiled rice bran is transferred to a cattle feed facility and
excess material is stored in storage go down. Residual hexane again re-
circulated for extraction process.

 Compounded Cattle Feed

Process for Compounded Cattle Feed: Following is the process of

manufacturing the Compounded Cattle Feed.
Compounded cattle feed refers to formulated feed with specific ingredients,
such as rice, bran, maize, soya bean extracts and molasses.

Grinding - Maize is ground into flour of specific size prior to its use as an
ingredient.

Batching - The different ingredients are put into a weighing hopper, a

measuring scale and separator, in a specific ratio. The weighing hopper is
equipped with a strong magnet so that iron particles and other impurities that
are harmful to cattle and have iron content, present in the ingredients may not
enter the hopper. The material is then put in a batching hopper, a scale that is
utilized to measure and collect materials from weighing hopper.

Hammer Milling - From the batching hopper, the batch material is transported
by a conveyor to the hammer mill, so that the ingredients may be grinded into a
powdered form of a specific size.

First Mixing - From the hammer mill, the powdered material is transferred to a
mixer where cane molasses is mixed with the material. Cane molasses is
considered to be a source of energy and enhances the taste of the feed.

Collection Hopper - The material is then transferred the second mixer to

complete the mixing process and to ensure that, the material is transferred to a
collection hopper.

Second Mixing - In the second mixer, the material is thoroughly mixed to

ensure that all the ingredients have adequately blended.

Blending - From the collection hopper, the material is transferred to a blender

where the material is mixed thoroughly.
Packaging - From the blender, the final product is directly filled into bags or it
is first pelletized, as described below and then filled into bags of a specified
quantity.

Pelletization - This is the process of compressing or moulding material into the

shape of a pellet. The pellets are also filled into bags of a specified quantity.

1.6 Marketing & Supply

Our sales team has consistently performed well with the assistance of our
dealers, distributors, C & F Agents with a wide range of excellent quality
products to cater the growing customer requirements.

We believe that our dealers & distributors should grow profitably with us by
ensuring that they earn fair return on their efforts while providing our customers
with high value products at reasonable prices.

We market and sell our compounded cattle feed products through a network of
dealers in the states of Punjab, Haryana, Uttarakhand, Himachal Pradesh,
Jammu & Kashmir, Uttar Pradesh, Rajasthan and Delhi NCR and our edible oil
products through a network of distributors in the northern states of Punjab,
Jammu & Kashmir, Haryana, Himachal Pradesh and Delhi NCR. Further, we
have appointed a few sales officers in relation to our compounded cattle feed
business and edible oil business, a few Clearing & Forwarding (“C&F”) agents
and consignee agents in relation to our edible oil business. Such agents are
responsible for assessing and monitoring the demand for and sale of our
compounded cattle feed and edible oil products by our dealers and distributors.

To cater to the less organized and unorganized retailers, we have appointed a

few C&F agents and consignee agents in the states of Delhi, Himachal Pradesh,
Haryana and in the union territory of Chandigarh.
We have been conducting awareness campaigns at regular intervals so as to
interact and educate the farmers regarding the animal health and nutrition. We
also conduct the Programs for identifying and assessing the needs of the
customers, dealers and distributors and communicating, thereby aiding us in
customizing and developing products to cater to specific customer requirements.
We believe that these campaigns provide an effective method of one-on-one
interaction with existing and prospective customers regarding our products and
their utility in enhancing animal or human health.

We endorse our products via advertisements on radio and wall paintings.

Brochures and Pamphlets are also distributed for this purpose.

Awareness campaigns generally involve our employees, including members of

the senior management, traveling to various villages, towns and cities in various
north Indian states. We believe that these campaigns provide an effective
method of one-on-one interaction with existing and prospective customers,
dealers and distributors regarding our products and their utility in enhancing
animal or human health. Such awareness campaigns also help us in identifying
and assessing the needs of the customers, dealers and distributors and
communicating, thereby aiding us in customizing and developing products to
cater to specific customer requirements. Along with the proposed increase in
our manufacturing facilities, we plan to continue conducting such awareness
campaigns in the areas where we intend to establish such manufacturing
facilities to increase our customer base and consolidate our presence in the
compounded cattle feed business.

In relation to edible oil, we are also concentrating on increasing our market

share, especially in relation to ‘Zaitoon Tara’ and ‘O’ Pure’. We are currently
involved in increasing the visibility of our edible oil brands in the backdrop of
the increasing awareness amongst consumers about the health enhancing
properties of olive oil and rice bran oil by conducting door-to-door awareness
campaigns in certain northern states. We intend to continue and gradually
augment our marketing efforts for our edible oil products in the future.

1.7 Product List

a) Edible Oil:
 Zaitoon Tara Cooking Oil
 Tara Gold Rice Bran Oil
 Tara Lite Rice Bran Oil
 Tara Kotton Cooking Oil
 Tara O’ Pure Cooking oil
b) Cattle Feed:
 Tara Cattle Feed
 Raath No. 1
 Raath No. 2 / Raath Special
 Raath Gold
 Raath No. 3 / Raath Panjiri
 Tara Mineral Mixture
 Tara Feed Chambal
 Tara Amol feed
 Tara Glomin
 Tara-Immuno365
 Tara Silage Enhancer
 Tara Hooves Care
 Tara Amol 8000
 Tara Amol Dry-off
 Tara Close Up
 Tara Calf Starter
 Tara Amol 10000
 Tara Cattle Feed 2000
 Tara Cattle Feed 3000
 Tara Cattle Feed 8000
 Tara Feed
 Cattle Feed Calf Grower
 Tara Cattle Feed Haifer
 Tara Buff Feed 3000
 Tara Buff Feed 4500
 Tara Buff Feed 6000
 Tara Amol 8000

1.8 Unit of the Company

PUNJAB UNIT

Jitwal Kalan Unit -Tehsil Malerkotla, District Sangrur, Punjab- spread over 27
acres of land.

 Cattle Feed Plant: We have a facility of 250 TPD of cattle feed at Village
Jitwal Kalan, Malerkotla plan
 Solvent Extraction Plant: We have solvent extraction plant operating at
production capacity of 250 Tons per Day
 Refinery: 120 TPD of refining capacity at this plant

UTTRAKHAND UNIT
Sitarganj Unit - Plot A-2, E.S.I.P, U S Nagar, Uttranchal operating at the
production capacity of 250 Tons per Day
JAMMU UNIT
We have a facility of 250 TPD of cattle feed at Jammu plant.

HANUMANGARH UNIT

We have a facility of 250 TPD of cattle feed at Hanumangarh plant

1.9 Capacity Summary

Total Compounded Cattle Feed Capacity- 1250 TPD

Solvent Extraction Capacity- 250 TPD
Refinery Capacity- 120 TPD

PROPOSED CAPACITY
At Jitwal Kalan, Punjab: Projected 400 TPD of cattle feed manufacturing
facility.
At Gujarat: Projected 250 TPD of cattle feed manufacturing facility.
At Bihar: Projected 250 TPD of cattle feed manufacturing facility.
 CHAPTER-2
INTRODUCTION TO CONSUMER BEHAVIOUR
2.1 Definitions:

“The process whereby individuals decide whether, what, when, where, how and
from whom to purchase goods and services.”
-Professor Walter C.G. & Professor Paul G.W
“Consumer Behaviour refers to the actions and decision processes of people
who purchase goods and services for personal consumption.”
-James F.Engel, Roger D.Blackwell & Paul W.Miniard
“The dynamic interaction of affect and cognition, behavior, and environmental
events by which human beings conduct the exchange aspects of their lives.”
-AMA
2.1.1 IMPORTANCE OF STUDYING CONSUMER BEHAVIOUR
1. Modern Philosophy:
It concerns with modern marketing philosophy – identify consumers’
needs and satisfy them more effectively than competitors. It makes
marketing consumer-oriented. It is the key to succeed.
2. Achievement of Goals:
The key to a company’s survival, profitability, and growth in a highly
competitive marketing environment is its ability to identify and satisfy
unfulfilled consumer needs better and sooner than the competitors. Thus,
consumer behavior helps in achieving marketing goals.
3. Useful for Dealers and Salesmen:
The study of consumer behavior is not useful for the company alone.
Knowledge of consumer behavior is equally useful for middlemen and
salesmen to perform their tasks effectively in meeting consumers needs
and wants successfully. Consumer behavior, thus, improves performance
of the entire distribution system.
4. More Relevant Marketing Program:
Marketing program, consisting of product, price, promotion, and
distribution decisions, can be prepared more objectively. The program can
be more relevant if it is based on the study of consumer behavior.
Meaningful marketing program is instrumental in realizing marketing
goals.
5. Adjusting Marketing Program over Time:
Consumer behavior studies the consumer response pattern on a
continuous basis. So, a marketer can easily come to know the changes
taking place in the market. Based on the current market trend, the
marketer can make necessary changes in marketing program to adjust
with the market.
6. Predicting Market Trend:
Consumer behavior can also aid in projecting the future market trends.
Marketer finds enough time to prepare for exploiting the emerging
opportunities, and/or facing challenges and threats.
7. Consumer Differentiation:
Market exhibits considerable differentiations. Each segment needs and
wants different products. For every segment, a separate marketing
program is needed. Knowledge of consumer differentiation is a key to fit
marking offers with different groups of buyers. Consumer behavior study
supplies the details about consumer differentiations.
8. Creation and Retention of Consumers:
Marketers who base their offerings on recognition of consumer needs find
a ready market for their products. Company finds it easy to sell its
products. In the same way, the company, due to continuous study of
consumer behavior and attempts to meet changing expectations of the
buyers, can retain its consumers for a long period.
 9. Competition:
Consumer behavior study assists in facing competition, too. Based on
consumers’ expectations, more competitive advantages can be offered. It
is useful in improving competitive strengths of the company.
10. Developing New Products:
New product is developed in respect of needs and wants of the target
market. In order to develop the best-fit product, a marketer must know
adequately about the market. Thus, the study of consumer behavior is the
base for developing a new product successfully.

2.1.2 THE CONSUMER BUYING DECSION PROCESS

The buying decision process is the decision making process used by

consumers regarding market transactions before, during and after the
purchase of good or service. It can be seen as a particular form of cost-
benefit analysis in the pressure of multiple alternatives.
Steps in Buying Process:
1. Need Recognition
2. Information Search
1. Evaluation and Intention
2. Purchase Decision
3. Post Purchase Reaction
1. Need Recognition: The starting point of buying process is the perceived
want or a desire. Need recognition is the awareness of the want or a desire
or a consumption problem without whose satisfaction the consumer feels
restless and tension-charged. That is, he or she feels that a desire or want
has arisen which has to be satisfied. Needs or wants either arises due to
internal stimulus or external stimulus.
2. Information Search: A need aroused and recognized can be satisfied
only when the product or service is available. Consumer interest is
indicated in the consumers’ willingness to seek further information about
product or satisfaction, he searches relevant information. Consumers has
many alternatives sources of information to tap such as friends, relatives,
neighbors, salesmen, dealers, advertisements, packages and above all
consumer organizations. Consumer tries to get up-to-date adequate
information regarding the products and services he wants to go in for.
3. Evaluation and Intention: At this stage, consumers evaluate different
products/brands on the basis of varying product attributes, and whether
these can deliver the benefits that the customers are seeking. This stage is
heavily influenced by one's attitude, as "attitude puts one in a frame of
mind: liking or disliking an object, moving towards or away from it".
Another factor that influences the evaluation process is the degree
of involvement.
4. Purchase Decision: It is the positive intention of the consumer that leads
to a purchase decision. Decision to purchase implies consumer
commitment for a product or service. Practically, it is the last stage in the
buying process because, it completes the exchange process. Such a
purchase may be a trial or adoption.
5. Post Purchase Reaction: Post purchase behavior or reaction stands for
the behavior of a consumer after a commitment to product has been made.
This post-purchase experience may be a set of positive or negative
feelings. Positive or satisfaction will result in repeat sales or at least
recommending the products or services to other; on the other hand,
dissatisfaction or negative feelings Creating anxiety and doubts.
 2.2 DETERMINANTS OF CONSUMER BEEHAVIOUR

1. Economic Determinants: It includes Personal Income, Family Income,

Consumer Income Expectations, Consumer Liquid Assets, Consumer
Credit, Standard of Living.
2. Psychological Determinants: Motivation, Perception, Learning.
3. Sociological Determinants: Family, Reference Groups, Opinion Leaders,
Social Class and caste, Culture.

Determinants of Consumer Behaviour

Economic Psychological Sociological

Determinants Determinants Determinants

 Income  Motivation  Family

 Liquid Assets  Perception  Reference
 Credit  Learning Groups
 Standard of  Opinion
living Leaders
 Social Class
 Caste
 Culture

2.3 INTRODUCTION TO RETAILING

Retailing includes all the activities involved in selling goods or services directly
to final consumers for personal, non business use. It embraces the direct-to-
customer sales activities of the producer, whether through his own stores by
house-to-house canvassing or by mail-order business.
-Kotler
2.3.1 Retailer:
A retailer is a merchant or occasionally an agent or a business enterprise, whose
main business is selling directly to ultimate consumers for non business use. He
performs many marketing activities such as buying, selling, grading, risk
trading and developing information about customer’s wants.

2.3.2 Functions of Retailer/Retailing:

1. Providing assortments: Offering an assortment enables customers to

choose from a wide selection of brands, designs, sizes, colors, and prices
in one location. Manufacturers specialize in producing specific types of
products.
2. Sorting: Manufacturers make one single line or multiple product lines
and will always prefer to sell their entire output to few buyers to reduce
their costs. Final consumers will prefer to choose from a large variety of
goods and services and then usually buy in smaller quantities. Retailers
have to strike a balance between demands of both the sides, by collecting
a combination of goods from different producers, buying them in large
quantities and selling them to individual consumers in smaller quantities.
The above process is called sorting and under this process, the retailer
undertakes activities and performs functions that add value to the
products and services while selling them to consumers.
3. Breaking Bulk: Retailers offer the products in smaller quantities tailored
to individual consumers and household consumption patterns. This
reduces transportation costs, warehouse costs and inventory costs. This is
called breaking bulk.
4. Rendering Services: Retailers render services that make it easier for
customers to buy and use products. They provide credit facilities to the
customers. They display products, which attract the customers. Retailers
keep ready information on hand to answer queries of the customers. They
 provide services by which the ownership can be transferred from
manufacturer to the end consumers with convenience. They also provide
product guarantee from owner’s side, after sales service and also deal
with consumer complaints. Retailers also offer credit to consumers and
develop hire purchase facilities to enable them to buy a product
immediately and pay the price at their ease. Retailers also fill orders,
promptly process, deliver and install the product at customer point. Retail
sales people answer the customer complaints and demonstrate the product
for the customer to evaluate before making a choice. They also help in
completing a transaction and realizing the sale.
5. Risk Bearing: Retailers bear a different kind of risk to the manufacturers
and wholesalers. Even the customers can come back to the retail point
and return the product. In that case, the risk of product ownership many
times rests with the retailers. Many companies have buy back schemes
and return schemes whereby the retailers can always return the unsold
items to the manufacturer.
6. Holding Inventory: A major function of Retailer is to keep the inventory
so that the Product will be available for consumers. Thus, consumer can
keep a much smaller inventory of products at home because they can
easily access more the nearby retailers. Retailer’s inventory allows
customers instant availability of the products and services.
7. Channel of Communication: Retailers are the bridge between the
manufacturer or his representative and the end customers. They serve as a
two-way channel of communication. The manufacturer collects customer
choice and preference data and provides information about existing and
new products through the retailers. The point of purchase displays
provide serve as advertisements that provide information about new
products and many times retailers inform the consumers about likely date
of availability of a product or entry of variants into the market. The
 shoppers get a chance to learn about products and services from the stores
and even acquire trial habits by seeing others buying a product or service
in the store. The manufacturer too collects customer data, data on gaps in
demand and supply cycles and customer satisfaction from retail points.
8. Transportation: Retailers also help in transport and advertising function.
The larger assortments are transported from wholesaler’s point to retailers
point by retailer’s own arrangements and many times, the retailer delivers
the goods at final consumer’s point. So, retailers provide assistance in
storage, transportation and prepayment merchandise.

2.3.3 Strategic Retail Planning Process

For the purpose of developing retail strategies, retailers are required to follow a
step by step procedure or planning process. The planning process discusses/
involves the present stage of business, the formulation, list of available strategic
options, and the implementation of the selected strategies. Considering the
importance of strategic decisions for the future success of the business, a
systematic approach is essential.

The strategic Retail Planning Process involves following steps:

1. Deciding the store philosophy, mission & objectives: The retail

strategic planning process starts with the identification of store’s mission for
its existence & hence the scope of the retail store. The mission of the store
entails identifying the goods and services that will be offered to the
customers. It also deals with the issue that how the resources and capabilities
of a store will be used to provide satisfaction to customers and how the store
can compete in the market vis-à-vis its competitors.
 The mission also involves the way of store’s functioning. How a store will
work and accomplish its day to day operations? What is the emergency
planning? All are answered in store’s mission statement.
Once the organization mission has been determined, its objectives, desired
future positions that it wishes to reach, should be identified. Store’s
objectives are defined as ends which the store seeks to achieve by its Unique
Selling Preposition and operations.
The store’s objectives may be classified into two categories:
a. External store objectives
b. Internal store objectives
External objectives are those that define the impact of stores on its
environment e.g. to develop high degree of customer confidence by
providing quality goods at lower prices. Internal objectives are those that
define how much is expected to be achieve with available resources, e.g. to
raise the store turnover by 15% in the coming year.
2. Situational Analysis (SWOT Analysis):
The objective of doing store’s situation analysis is to determine where the
store is at present and to forecast where it will be if formulated strategies are
implemented. The difference between current and future position is known
as planning or strategic gap. Under organizational analysis, normally store
studied their external and internal environments.
a. External Analysis:
The purpose of examining the store’s external environment is to study the
opportunities and threats in the retailing environment. The external analysis
studies factors that affect the macro-environment of retailing industry and
the task environment.
Under external analysis, retailer studies these parameters:
1. Economic Environment of Retailing
2. Political Environment of Retailing
 3. Legal Environment of Retailing
4. Socio-Cultural Environment of Retailing
5. Technological Environment of Retailing
6. International Environment of Retailing
b. Internal Analysis:
The objective of studying internal environment of its store is to identify the
store’s strengths and weaknesses. The store will try to increase its
capabilities and outcome the weakness that deter the business profit. While
doing the internal analysis, store examines the quality and quantity of its
available resources and critically analyzes how effective these resources are
used.
These resources for the purpose of examining are normally grouped into
human resources, financial resources, physical resources (assets) and
intangible resources (goodwill, image etc)
3. Formulation of Retail Strategy:
In this stage, after analyzing the store’s capabilities in terms of HR, finance,
physical and intangible resources, a store manager formulates retail strategy
with regard to marketing, retail positioning and retail mix. Marketing is the
way to achieve the set objectives. Therefore, marketing strategy should be
devised according to store’s primary and secondary objectives. Generally,
marketing strategy is developed on the basis of product and/or market
segmentation instead of the market as a whole.
4. Strategy Implementation and Control:

It is concerned with the designing and management of retail systems to

achieve the best possible combination of human, financial, physical and
intangible resources of a retail store to achieve the formulated objectives,
without timely and effective implementation also requires scheduling and
coordination of various retail activities. For example, the coordination
 between the marketing and sales promotion department is a must for sales
promotion to make success.

Further, the spirit of team work is an essential part for the success of strategy
implementation. If the retail store’s strategies are competitive, marketing
efforts are as per demand but the sales promotion employees are not taking it
seriously or are ineffective, result will not be up to the mark.

The implementation of new retailing strategies sometimes require changes in

the way of functioning and duties that can lead to resistance from employees.
Therefore, stores should take positive steps to reduce this resistance to change
and to convince the employees that it in a long term will be beneficial for
both the store and employees.

The positive steps include the following:

i. Inspection
ii. Detection
iii. Correction
 CHAPTER-III

REVIEW OF LITERATURE

John et al, (2000) compiled a questionnaire stating the taste of home-made and
commercial dairy ice-cream between various participants. It was concluded that
out of 100% participants 56% participants was in favor of homemade ice-cream
due to superior taste, quality and proper knowledge of ingredients.
K.M.Millar et al. (2002) studied two dairy tech neologies, bovine somatotropin
and automatic milking system to evaluate the consumer's attitude towards these
2 dairy technologies. It was concluded that automatic milking system served as
an ethical and an acceptable dairy system as compared to bovine smote trephine
which served as a miner side.
Andrew et al, (2003) studied consumer response to the dairy sector in the UK.
Stress was paid on factors that affect consumer purchasing and consumption
behavior across wide range of dairy products.
Elaine et al. (2005) studied determine the level of acceptance of a hypothetical
genetically modified dairy spread in a particular country (Ireland). He
concluded that genetically modified product was rejected by most of the
mentioned countrymen. Such information provided immense knowledge to the
existing market players and to company's considering opportunities in the
market.
Jane et al. (2006) studied the consumption patterns of fresh milk. Among
yogurt drinks and flavor of milk and milk products are the main area of
consumer's satisfaction consumer. Who purchased larger quantities of milk and
milk products are those who have relatively higher household incomes.
John et al. (2008) investigated various factors affecting of milk perception in a
country (Scotland). He studied various marketing campaign and its
effectiveness in portraying milk as an effective healthy product. He concluded
that there was a high recognition and positive attitude towards the campaign
health benefits from the milk was viewed – but they did not appear to be
instrumental.
Deepa ingavale et al. (2012) observed that the change in purchase decisions
was due to marketing-related factors such as availability, advertisement, product
quality, and price of the products. Multinational companies have created a brand
preference for branded milk products such as branded butter, paneer, chees,
milk powder and proper market segmentation will help to manufacture these
products as per the requirements of the customers. All Companies are required
to build their brands with the help of packaging, point of purchase advertising,
delivery vehicles, retail outlets, marketing communication and sponerships etc.
S.Sivasankaran et al. (2013) determines how far the consumers are satisfied
with the overall performance of the branded milk producers. Now the dairy
industry is facing tremendous competition with many private companies enter
into this field. In order to sustain in the market by giving better service, a
company should always try to find out the satisfaction level of the consumers
and should take all necessary steps and measures to retain the customers. Today,
almost all the people are consuming milk and milk products. Whereas Brand
preferences of the rural and urban consumers are differ. Some buyers are totally
brand loyal, buying only one brand in a product group. Most of the buyers
switch over to other brands.
D. Nidhyananth et al. (2013) depicts that Aavin milk has a good reputation
among the customers so it can be extended supplying product towards the
customer demand for and availability in markets must maintained for the
consumer to stay in the same Aavin brand.
T. Ravi chandran et al. (2013) the researcher indicated that the majority of the
milk consumers prefer fresh milk. There is the high demand for Arokya milk in
Nagercoil town and it is a positive sign for Local and National brands. They can
promote their products by effective advertising, improved quality and by
keeping a check on the price.
C. Jothi Mary et al. (2013) said that marketing concept starts with the
consumer needs and behavior in meeting these needs. Therefore every person
depends on basic needs. The real problem is to learn what a customer takes into
consideration when he chooses a particular brand. Such a study is concerned
with consumer behavior. A consumer is not someone to argue or match with the
needs and satisfaction levels differ from individual to individual and no
company can satisfy the needs of consumers. Consumer oriented thinking helps
the marketer to define consumer needs from the consumer’s point of view. The
present study attempts to bring out the factors leading to the purchase behavior
and perception of consumers in buying Aavin milk.
CHAPTER-IV OBJECTIVES OF THE STUDY
 CHAPTER-V RESEARCH METHODOLOGY

Research refers to a search for knowledge. This Research defines the problems
of retailers and consumers and their perception towards Verka products and
services. Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing & evaluating data;
making deductions and reaching conclusions and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis. It presents
the research design, sampling procedure, tools of investigation, and collection
of data.

5.1 Research Design

This research was descriptive and conclusion oriented research

a) Descriptive Research:
The Research was a descriptive research as it was concerned with specific
predictions, with narration of facts and characteristics concerning
individuals, groups or situations.
b) Conclusion Oriented Research:
The research was conclusion oriented because this research aimed at
determining the perception of consumers and retailers preference towards
verka products.

5.2 Sample Design

A sampling design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher adopts in
selecting items for the sample. The following factors have to decide within the
scope of sample design:

5.2.1 Universe:

Universe refers to the total of the units in field of enquiry. The universe
comprises of two parts as theoretical universe and accessible universe. The
target Universe in the study is given below:

 Target Universe: Universe of the study included consumers and retailers

from Cities Chandigarh and Mohali.

5.2.2 Sample Unit:

In this research project sampling unit was the consumers & retailers from
Chandigarh & Mohali.

5.2.3 Sample Size:

A sample of minimum respondents was selected. An effort was made to select
respondents evenly as regard their gender. The survey was carried out on 50
consumers and 50 retailers.
5.2.4 Sampling Technique
The sampling techniques used are convenient technique and simple random
sampling technique.
 Convenient Technique: A non-probability sampling technique that
attempts to obtain a sample of convenient elements. The selection of
sampling units is left primarily to the interviewer.
 Simple Random Technique: A probability sampling technique in which
each element in the population has a known and equal probability of
selection. Every element is selected independently of every other element
and the sample is drawn by a random procedure from a sampling frame.

5.3 Sources of Data Collection

Primary Data: The primary collected from the respondent by administering a
structure questionnaire and also through observation, interview and discussion
with management.
Secondary Data: The secondary data collected through text books, the records
of plant, Academic reports & internet is used for the study.

5.4 Data Analysis

5.4.1 Tools of Presentation:
Table and Pie charts
5.4.2 Tools of Analysis:
The data is analyzed through simple analysis technique. The data tool is
percentage method.
4.1 Objectives of the Study