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Vita Reportt

This document is a project report submitted by Aanchal Sood to Chitkara University for their MBA program. The report focuses on studying the supply, distribution, and marketing of products by Vita Milk Plant in Ambala, India. Vita Milk Plant operates under the three-tier cooperative system of Haryana Dairy Development Cooperative Federation. The plant procures milk from dairy cooperative societies and processes it into products like milk, ghee, paneer, and lassi. The objectives of Vita include providing a marketplace for milk producers, giving remunerative prices to farmers, and making quality dairy products available to consumers at reasonable prices.

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Tamanna Goyal
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0% found this document useful (0 votes)
2K views84 pages

Vita Reportt

This document is a project report submitted by Aanchal Sood to Chitkara University for their MBA program. The report focuses on studying the supply, distribution, and marketing of products by Vita Milk Plant in Ambala, India. Vita Milk Plant operates under the three-tier cooperative system of Haryana Dairy Development Cooperative Federation. The plant procures milk from dairy cooperative societies and processes it into products like milk, ghee, paneer, and lassi. The objectives of Vita include providing a marketplace for milk producers, giving remunerative prices to farmers, and making quality dairy products available to consumers at reasonable prices.

Uploaded by

Tamanna Goyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 84

A PROJECT REPORT

ON

“Study of SUPPLY,DISTRIBUTION AND


MARKETING OF
VITA products”

Submitted to Chitkara University in partial fulfillment


of
The requirements for the degree of

MASTERS OF BUSINESS ADMINISTRATION


(2018-2020)

Submitted By:
AANCHAL SOOD
Roll no-1820983501
Chitkara University, Rajpura
ACKNOWLEDGEMENT

I would like to thank CEO Vita Milk Plant, Ambala, for


providing me this wonderful opportunity to work with
‘Haryana Dairy Development Cooperative Federation
Ltd.’

I am extremely thankful to In-marketing and entire


marketing division for their invaluable support and inputs
in this project.

I extend my sincere gratitude to various respondents and


citizens of Ambala who spared their valuable time and
contributed to consumer survey.

AANCHAL SOOD
DECLARATION

I undersignedhereby declare that the winter training project


report submitted to my college CHITKARA
UNIVERSITY,RAJPURA. In partial fulfillment for the
degree of master of business administration on “Study of
supply,distribution and marketing of Vita products” is
a result of my own work under continuous guidance and
kind co-operation of our college faculty members. I have
not submitted this training report to any other university for
the award of degree.
CERTIFICATE OF COMPLETION

This is Certify that Ms. Aanchal Sood(1820983501) has


successfully completed her project titled “Study of
SUPPLY,DISTRIBUTION AND MARKETING OF Vita
products”(VITA) under the guidance of MR.AK Singh. This
is in the partial fulfillment of her MBA curriculum (2018-
2020).

Dated:

Mr. ……………

(Project guide)
EXECUTIVE SUMMARY

Customers today are more informed and more demanding than


ever. They know quality service when they get it and they aren’t afraid
of taking their business elsewhere if they don’t get it. Most
manufacturers have taken this fact to heart because a refusal to
acknowledge this reality can spell - failure - rejection by the one who
holds the purse strings and the key to profits.

Satisfaction of customer needs, in fact, provides a rationale for the firm’s


existence. Therefore consumer behavior lies at the heart of modern
marketing and its knowledge is vital for a firm’s existence, growth and
success. An understanding of the motives underlying the consumer
behavior helps a firm to seek better and more effective ways to satisfy
consumers.

Consumer behavior, however, is a complex system where there is


an interaction of various social, economic and psychological factors.
Buying decision process incorporates all the activities that individuals go
through in their role as consumers. It starts right from the time when
there is a state of deprivation and goes through a point when a means of
need satisfaction has been obtained. It ends at a juncture when the
product has been used for a sufficiently long period of time to judge the
level of satisfaction. Satisfaction is the key to generate repeat business.
TABLE OF CONTENTS

Chapter Contents Page No.


No.
A. PART 1
1. Introduction and History

2 Objectives , Achievements
3 Company profile,
Geographical location
4 Working of all Departments,
Distribution Channel
5 SWOT analysis , Competitors
6 Political environment
,Strategies
B. PART 2
1. Details of Actual work done

2. Suggestions and
Recommendations
3. Limitations of reseach

4. Interpretation

5. Analysis, Conclusion ,
Bibliography
PART. 1

INTRODUCTION

VISION

PROVIDE QUALITY DAIRY PRODUCTS LIKE GHEE, PANEER,


DAHI, LASSI, PACKED MILK, FLAVOURED MILK TO
CUSTOMERS AT AFFORDABLE PRICES WHILE ENSURING
FAIR RETURNS TO THE PRODUCERS,
PURCHASEPOOL,PROCESS,MANUFACTURE,DISTRIBUTERS
AND MARKET COMMODITIES OF THE MEMBERS AND OTHER
WITHOUT AFFECTING THE INTEREST OF THE MEMBERS.

MISSION

AIMS TO GROW WITH PROFITABILITY AND CONTINUOUSLY


IMPROVE PRODUCT QUALITY AND SERIVICES THROUGH
EMPLOYEE INVOLVEMENT, ADOPTION OF BEST-IN-CLASS
MANUFACTURING SYSTEMS AND PROCESSES. BY FORGING
MUTUALLY BENEFICIAL RELATIONSHIP WITH ALL STAKE
HOLDERS WE WANT TO ACHIEVE

 CUSTOMER CONFIDENCE

 BENCH MARK LEVEL OF RETURN ON INVESTMENT

 GROWTH IN REVENUE IN LINE WITH OUR LONG TERM


STRATEGY
1.1 VITA MILK PLANT

INTRODUCTION

The company was established as a cooperative that would collect milk


from farmers in rural areas and sell them in urban areas of
Bangladesh. Products manufactured by the company include liquid
milk, Dahi, Cream, Power Milk ,Butter and ghee. The company was
founded in 1974. In 2016 a government report found 12 private milk
producers in Bangladesh were imitating the packaging of Milk Vita.
The Dairy industry involves processing, raw milk into products such
as Consumer milk, Butter, Cheese, Dahi, Condensed Milk, Dried Milk
(milk powder) and ice cream, using processes such as Chilling,
Pasteurization and Homogenization.

DEFINITION: “A building or room for the processing,


storage and distribution of milk and milk products.”

HISTORY : Haryana Dairy Development Cooperative


Federation :
The Dairy cooperation was formed in 1970 which continued active
functioning till 31.3.1997. Thereafter its business was taken over by
Federation to set up THREE TIER SYSTEM based on Anand Pattern.
Since 1.4.1992 the federation has leased out the Plants to the Milk
Unions.

 Anand Pattern:The anand pattern is an integrated


cooperative structure that procures, processes in markets
produce. Supported by professional management,
producers decide their own business policies adopt
modern production and marketing techniques and receive
services that they can individually neither afford nor
manage.
 Haryana is one of the most progressive states of Republic
of India. In the domains of dairy development it is well
known for its productive milk cattle particularly the
‘Murrah’ Buffaloes and Haryana Cows.
 The economy of the state is predominantly based on
agriculture. People rear and breed cattle as a subsidiary
occupation. The essence of variousprogrammes launched
in the state has been to adopt the Anand pattern of milk
cooperatives.
 Under this system, all the functions of dairying like milk
procurement, processing and marketing are controlled by
the Milk Producers themselves.
 Haryana dairy development federation Ltd register under
Haryana dairy cooperative societies Act came into
existence APRIL 1, 1977. Its authorized share capital is
Rs 4000 lakh.
 It was established with the primary aim to promote
economic interest of the milk producers of Haryana
particularly those belonging to weaker section of village
community by procuring and processing milk into milk
products and marketing thereof by itself or through its
unions .
 Federation undertakes different number of activities such
as establishment of milk plants, marketing of the milk
unions. Its turnover during 2010-11 is Rs 840 crore. It also
extends technical guidance to the unions. In all spheres of
personnel,technical, marketing and financial management
as well as makes them quality conscious, through use of
modern methods of laboratory testing of various product
quality.
VITA MILK PLANT,AMBALA

The company has three tier system comprising milk producers’ societies
at the village level, milk producers co-operative union at the district
level and the state milk federation as an apex body at the State level.
Its tagline is “VITA the Hallmark of Quality”. As part of the stringent
quality measures, milk required for processing VITA products is
procured from Dairy Cooperative Societies only. It is ensured that the
milk is transported to chilling centers and plants in clean and sterilized
milk cans as quickly as possible. All quality measures as per standard of
bureau of Indian standards are being applied before the products are
marketed. Vita is the endorsement of quality, a commendation we are
proud of . The entire labor is on daily wages (as per labor law) and they
work round the clock 24 hours a day. The new administrative staff is
recruited on contractual basis. They don’t give any credit facilities to
their suppliers and distributors .They purchase milk from the farmers
and the total milk capacity of the plant is 9.45 LLPD (Lakh liter per day)
and the milk capacity of milk plant AMBALA is 1.40 LLPD.

OBJECTIVES OF VITA

1. A readymade market to milk producers at their doorstep.

2. To give remunerative prices to the milk producers for milk.

3. To collect and transport milk efficiency to chilling centre’s / milk


plants.

4. To process milk and convert the same into milk and milk products.

5. To make good quality milk & milk products available to the


consumers at reasonable price.

6. To purchase / erect buildings, plant & machinery etc. to carry out


the business and assist the milk unions in such matters.
7. To procure milk by forming village level milk cooperative
societies or through dairy farms.

8. To arrange transportation of milk from village cooperative


societies to bulk milk chilling centers and further to milk plant.

9. To sell milk and milk products to public through milk


booths,distributors, retailers and societies.

10. To provide ghee, cattle feed , mineral mixture and seeds etc to
village level milk cooperative societies for further sale to producer
members.

11. To provide training (by outsourcing) to staff and milk producers.

ACHIEVEMENTS OF VITA MILK PLANT


19 MARCH, NEW DELHI

NATIONAL PRODUCTIVITY AWARDS 2004-05Presented


for the first best productivity performance in dairy processing industries
(small units after) by SH.SUBODH KANT SAHAI , HON’BLE
MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES to
the Ballabgarh co-operative milk producers union ltd Ballabgarh SH
BHOPAL SINGH , CHIEF EXECUTIVE OFFICER OF MILK UNION
received the award from HON’BLE MINISTER in awards distribution
function at SCOPE CONVENTION CENTRE, NEW DELHI.
19 MARCH, NEW DELHI

NATIONAL PRODUCTIVITY AWARDS 2004-05 Presented


for second best productivity performance in dairy processing industries
(small units after) by SH.SUBODH KANT SAHAI , HON’BLE
MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES to
the Hissar – Jind co-operative milk producers union Ltd Jind SH. GR
GROVER , CHIEF EXECUTIVE OFFICER OF MILK UNION
received the award from HON’BLE MINISTER in awards distribution
function at SCOPE CONVENTION CENTRE, NEW DELHI.

1.2 COMPANY PROFILE (VITAAMBALA)


GENERAL FEATURES OF MILK PLANT AMBALA
NAME: Vita Milk Plant.

ADDRESS: Vita Milk Plant, Jasmeet Nagar

Ambala City, Haryana, 134003.

RAW MATERIAL: Milk.

PRODUCTS: Pasteurized milk, Special milk,

Ghee, Dahi, Paneer, Lassi, Sweet

Flavored milk, Vita Kaju Pinni

WORKING HOURS: 24 hours (3 shifts).

TOTAL WORKERS: 275 (Approx)

CAPACITY:1.40 LLPD ( LAKH LITRE

PER DAY)
GEOGRAPHICAL LOCATION OF MILKPLANT

LOCATION AND LAYOUT

In the milk plant there are hard receiving departments: Production and
Engineering. The location of the stores department is carefully planned
out and it is housed in a position which is very near to production
department so that transportation charges are minimum. It is also easily
accessible to all other departments like engineering, boiling,
refrigeration, powder plant and workshop.
The layouts of plants store are properly planned. There are shelves,
racks, admirals and handling devices for keeping the material and
equipments properly. The store is divided into racks which are further
sub-divided into small spaces allocated. Special attention is paid to
storage of material which is liable to leakage or evaporation and
deterioration.

SELECTION OF ROUTES:

Routes are selected for the delivery of MILK through these societies.
Shortest milk routes are preferable so that MILK reach to target market
in same condition, otherwise MILK can become sour . The societies
which are far away from milk plant, the four milk chilling centers are
established for them. Societies send milk directly to milk plant or
through chilling centers. These chilling centers chill milk at 4 degree
Celsius which keeps the milk in good condition for 24 hours. After
chilling the milk these centers send milkto the milk plant.

REGISTRATION OF THE SOCIETY AND THE


MEMBERS:
When a society is fully formed for the collection of milk it is registered
under the registration act of societies. Its members are also registered
and given members pass books and share certificates. A copy of rules
and regulations are also given to them. Then the actual milk collection
starts.

Year saver age milk procurement per day (in liters) total milk handling.

MAIN CENTRES AND THEIR BRANCHES:

About 300 milk producing societies come under Milk Plant ambala
which is operating in the whole ambala district. Milk Plants are divided
into six main centers which are as under:

Installed
Year of
No. Milk Plants Products Capacity
establishment
(LLPD)
Liquid Milk, Ghee, Powder, Paneer, Dahi,
1. Jind 1970-71 1.50
Lassi, Kaju Pinni Jaljeera, Mango Drink.
Liquid Milk, Ghee ,Paneer , Dahi, Lassi,
2. Ambala 1973-74 Sterilized Flavored Milk, Kheer, Milk 1.40
Cake, Ice Cream.
Liquid Milk, Ghee, Paneer, Dahl, Lassi
3. Rohtak 1976-77 4.00
,Table Butter.
4. Ballabgarh 1979-80 Liquid Milk, Ghee, Paneer, Dahi, Lassi. 1.25
Liquid Milk, Ghee, Powder, Paneer,Dahi,
5. Sirsa 1996-97 1.10
Lassi, Kaju Pinni.
6. Kurukshetra 2013-2014 Liquid Milk     0.20
      Total 9.45

MAIN PRODUCTS MANUFACTURED BY MILK PLANT


The main products which are manufactured by the milk plant AMBALA
are as under:

1. Pasteurized Milk.

2. Packed milk.

3. Milk

4.SweetenedFlavoured Milk (PIO).

5. Kaju Pinni

6.Paneer.

7.Dahi.

WORKING OF ALL DEPARTMENTS

MARKETING DEPARTMENT

MARKETING MEASURES FOR DOMESTIC MARKET:

For domestic market following measures are taken up by marketing


personnel:

A. Dealers” meeting is called once in every six months.


B. The plant has own distribution network for the sale of products.

C. Milk products are marketed to bring up country markets


throughout INDIA on consignment basis.

FOR INTERNATIONAL MARKET:

For Export following measures are taken into consideration:

A. Requirement is given by customers in the letter of credit.

B. Quality should be mentioned.

DOMESTIC MARKETING ACTIVITIES

The domestic marketing activities are performed on the basis of Demand


and Supply.

for milk and milk products are received in two ways:

Through Telephone-

Any demand or change in demand is received between 9:30 am and 2:00


pm.
Through Supply-

Milk booths collect demand according to milk supplied to the agencies.


About 70% of milk is distributed in the morning and remaining 30% is
distributed in the evening.

PAYMENT AND BALANCE SYSTEM

Since agency is required to deposit one day advance payment separately


for morning and evening, if any cash balance remains with the union that
is admitted in the meant supply payment.

For institutions 45 days of advance payment against their demand is


collected union.

RETURN OF MILK

If milk is found leaked. It is taken back from dealers only at the time of
delivery. One entire tray is provided for replacement of leakage of every
truck or other vehicle through which milk is supplied to the dealers.
Marketing is a comprehensive term and it includes all resources and a
set of activities necessary to direct and facilitate the flow of goods and
services from producers to consumers in the process of distribution.
Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to
exchange that satisfy individual and organizational objectives..

ADVERTISEMENT AND SALES PROMOTION


The advertisement and sales promotion of every product is necessary.
Without this, nobody comes to know about the product. Every
organization whether it is small, medium or big has to do some type of
advertisement. Vita milk plant has also adopted some policies for the
sale of its products. It has its own Vans, Trucks, and Jeeps etc. for
selling its products. There are also some benefits which are being
provided to the dealers. There is a facility of free training of testing milk
to the societies so as to make more customers. With the adoption of such
policies sales have increased inAmbala and all the nearby areas. For
doing advertisement the shops of retailers have been painted showing
various Vitaproducts and various types of banners are also given to them
which are to be displayed.
DISTRIBUTION CHANNEL

MILK PLANT AMBALA

DISTRIBUTOR

RETAILER
CUSTOMER

PRODUCTS OF VITA

VITA has formulated specifications for its milk & milk products to
provide standard and quality of products to  consumers.

PRODUCTS PACKING
VITA GHEE
1lt Pkt. ,15lt.

VITA PANEER
100gm(313kcal), 200gm, 1kg pkt
VITA BUTTER 100gm, 500gm
VITA KHEER 200gm Cup
SWEET LASSI 200ml Cup

NAMKEEN LASSI 200ml pkts, 250ml, 500ml, 1000ml

FULL CREAM MILK 1lt


MILK CAKE 450gm, 900gm Pkts
DOUBLE TONNED
100gm
 

VITA DAHI 200gm ,400gm,250 gm,1kg, 5kg Jar

VITA KAJU PINNI 150gm pkts, 450 gm pkts, 900 gm


pkts
VITA ELAICHI MILK 200ml
VITA BUTTER SCOTCH
200ml

INDUSTRY ENVIRONMENT

SWOT ANAYSIS
STRENGTHS:
1. Demand profile is quite high. People all the year consume the
milk and milk products.
2. Margins are Quite reasonable, even on packed liquid milk
because the packet liquid milk’s demand is very high.
3. Flexibility of product mix: The people always know the milk is
milk they not even think the flavour with the milk. The children
are very much like to get the flavoured milk. With balancing
equipment, can keep on adding to product line
4. Abundant Availability of raw material: Presently, more than 85
per cent of milk formed is flowing into the unorganized part, which
requires correct canalization.
5. Technical manpower: Professionally-trained, practical human
resource puddle, built over previous 35 years.

WEAKNESS:
1. Perish ability: Pasteurization has conquered this weakness partly.
UHT gives exploit long life. Surely, a lot of new processes will go
after to improve milk excellence and extend its shelf life.
2. Lack of control above yield: Theoretically, there is little manage
over milk yield. However, greater than before consciousness of
developments like origin transplant, false insemination and
properly managed animal husbandry follows, coupled with senior
income to rural milk producers ought to automatically guide to
development in milk yields.
3. Logistics of procurement: Because of bad roads and insufficient
transport facility creates milk procurement difficult. But with the
overall financial improvement, these harms would also get solved.
4. Problematic sharing: All is not well by means of allocation. But
then if ice creams container be sold almost at every nook and
corner. Moreover, it is merely a matter of occasion before see the
appearance of a cold sequence linking the producer to the
refrigerator at the consumer’s residence!
5. Competition: With so a lot of newcomer entering this
manufacturing rivalry is becoming tougher day by day. But then
rivalry has to be faced as a earth reality. The marketplace is great
sufficient for many to slice their niche.
OPPORTUNITIES:
If Vita industrialists are looking for opportunities, the subsequent areas
must be tapped:

1. Health consciousness is increasing day by day , so there is a huge


market scope for PRO-BIOTIC MILK and milk products.
2. New product Development should be adopted- for eg- SKIMMED
MILK IN TETRA PACK
3. Efforts to develop export possible are by now on.

THREATS:
1. Milk vendors, the un-organized sector: Today exploit vendors are
occupying the arrogance of place in the industry. Organized
dissemination of information about the harm that they are doing to
creators and clients should make out a stable decline in their
significance.
2. Big MNCs like Reliance etc. are ready to being in milk business
which leads to a big competition for Vita.

MARKET COMPETITORS OF VITA:

1.AMUL

As Amul — the brand that spurred the White Revolution in the country

— is trying to make inroads into the market here, haryana vita, ‘till-now-
undisputed’ indigenous brand of milk and milk products, has decided to

take the giant head on.

Amul has started supplying about 25,000 litres milk per day in the state

which is considered a strong market for Haryana State Co-operative

Milk Producers’ Federation Limited (HDDCFL) that owns brand Vita.

Feeling the heat, Vita has rolled out an aggressive marketing strategy.

As a result, the billboard war is on between the two giants in the state

with vita promising “hallmark of quality”, while Amul offering the

“Taste of India” at competitive rates.

 MOTHERDAIRY
 LOOSEMILK (MAIN COMPETITOR)

MARKET TREND OF MILK INDUSTRY FOR LAST TEN


YEARS
Dairy activities have traditionally been integral to India’s rural economy.
The country is the world’s largest producer of dairy products and also
their largest consumer. Almost its entire produce is consumed in the
domestic market and the country is neither an importer nor an exporter,
except in a marginal sense. Despite being the world’s largest producer,
the dairy sector is by and large in the primitive stage of development and
modernization. Though India may boast of one of the world’s largest
cattle population,the average output of an Indian cow is significantly
lower compared to its American counterpart. Moreover, the sector is
plagued with various other impediments like shortage of fodder, its poor
quality, dismal transportation facilities and a poorly developed cold
chain infrastructure. As a result, the supply side lacks in elasticity that is
expected of it.

On the demand side, the situation is buoyant. With the sustained growth
of the Indian economy and a consequent rise in the purchasing power
during the last two decades, more and more people today are able to
afford milk and various other dairy products. This trend is expected to
continue with the sector experiencing a robust growth in demand in the
short and medium run. If the impediments in the way of growth and
development are left unaddressed, India is likely to face a serious supply
- demand mismatch and it may gradually turn into a substantial importer
of milk and milk products.

Fortunately, the government and other stakeholders seem to be alive to


the situation and efforts to increase milk production have been
intensified. Transformations in the sector are being induced by factors
like newfound interest on the part of the organized sector, new markets,
easy credit facilities, dairy friendly policies by the government, etc.
Dairy farming is now evolving from just an agrarian way of life to a
professionally managed industry - the Indian dairy industry. With these
positive signals, there is hope that the sector may eventually march
towards another white revolution.

POLITICAL ENVIRONMENT
 REGULATORY FRAMEWORK
The dairy industry was delicensed in 1991 with a view to encourage
private investment and flow of capital and new technology in the
segment. Although delicensing attracted a large number of players ,
concerns over issues like excess capacity , sales of contaminated milk
etc induced the govt. to cause the MMPO(milk and milk product
order) in 1992.
Plants producing over 75000 lt per day or more then 3750 tonnes per
year of milk solids have to be registered with central govt. However
the stringent regulations and govt contracts through MMPO and
licensing requirement for new capacities have restricted large indian
and MNC players from making significant investments in this product
category.
Most of the private sector players have restricted themselves to
manufacture of value added milk products like baby food , condensed
milk etc.
However , with the process of liberlization , the product category
offers tremendous opportunities for branding .

 GOVERNMENT POLICIES TO PROMOTE MILK


INDUSTRY

 Liberalisation of the Dairy Sector, the cornerstone of India’s milk


revolution, has been the cooperative dairy sector which was
protected from cheap subsidized imports through quantitative
restrictions and by strict control over exports and imports through
the State-owned Indian Dairy Corporation. The competition from
private sector was controlled through licensing under the Industrial
Development and Regulation Act of 1951, which discouraged new
entrants into the dairy processing sector. A suitable price-
environment was created and is considered as a key for the
impressive growth in this sector. All this changed in the early
nineties when major financial and trade policy reforms were
initiated in all sectors of the Indian economy including the dairy
sector

 The first step was to encourage private participation and the dairy
industry was de-licensed in 1991. That dairy is a lucrative business
became obvious when within a year of de-licensing, more than 100
privately-owned milk processing plants came up in the major milk
producing states.

 The MMPO reintroduced licensing and also required private


players to set up their own zones of procurement (milk- sheds) that
were beyond the existing milk-sheds of cooperatives. This was
done to check private players from poaching on milk-sheds of the
cooperative sector. However, swept by the wave of liberalization,
the government again amended the MMPO in 2001 and allowed
State governments to grant a one-time license to the private sector,
and also abolished renewal of license.

 In 2003, restrictions on setting up milk processing and milk


product manufacturing plants and also the concept of milk-sheds
were eliminated. The amended order emphasized sanitary, hygiene,
quality and food safety of milk and milk products.
REGULATORY REFORMS TO PROMOTE
SMALL SCALE INDUTRIES
Since Independence, India has several Industrial Policies to her credit.
So much so that Lawrence A. Veit tempted to say that “if India has as
much industry as it has industrial policy, it would be a far well-to-do
nation.” With this background in view, in what follows is a review of
India’s Industrial Policies for the development and promotion of small-
scale enterprises in the country.

1. Industrial Policy Resolution (IPR) 1948:


The IPR, 1948 for the first time, accepted the importance of small-scale
industries in the overall industrial development of the country. It was
well realized that small-scale industries are particularly suited for the
utilization of local resources and for creation of employment
opportunities.

However, they have to face acute problems of raw materials, capital,


skilled labor, marketing, etc. since a long period of time. Therefore,
emphasis was laid in the IPR, 1948 that these problems of small-scale
enterprises should be solved by the Central Government with the
cooperation of the State Governments. In nutshell, the main thrust of
IPR 1948, as far as small-scale enterprises were concerned, was
‘protection.’

2. Industrial Policy Resolution (IPR) 1956:


The main contribution of the IPR 1948 was that it set in the nature and
pattern of industrial development in the country. The post-IPR 1948
period was marked by significant developments taken place in the
country. For example, planning has proceeded on an organised manner
and the First Five Year Plan 1951-56 had been completed. Industries
(Development and Regulation) Act, 1951 was also introduced to
regulate and control industries in the country.

The parliament had also accepted ‘the socialist pattern of society’ as the
basic aim of social and economic policy during this period. It was this
background that the declaration of a new industrial policy resolution
seemed essential. This came in the form of IPR 1956.

The IPR 1956 provided that along with continuing policy support to the
small sector, it also aimed at to ensure that decentralised sector acquires
sufficient vitality to self-supporting and its development is integrated
with that of large- scale industry in the country. To mention, some 128
items were reserved for exclusive production in the small-scale sector.
Besides, the Small-Scale Industries Board (SSIB) constituted a working
group in 1959 to examine and formulate a development plan for small-
scale industries during the, Third Five Year Plan, 1961-66. In the Third
Five Year Plan period, specific developmental projects like ‘Rural
Industries Projects’ and ‘Industrial Estates Projects’ were started to
strengthen the small-scale sector in the country. Thus, to the earlier
emphasis of ‘protection’ was added ‘development.’ The IPR 1956 for
small-scale industries aimed at “Protection plus Development.” In a
way, the IPR 1956 initiated the modem SSI in India.

3. Industrial Policy Resolution (IPR) 1977:


During the two decades after the IPR 1956, the economy witnessed
lopsided industrial development skewed in favor of large and medium
sector, on the one hand, and increase in unemployment, on the other.
This situation led to a renewed emphasis on industrial policy. This gave
emergence to IPR 1977.
The Policy Statement categorically mentioned:
“The emphasis on industrial policy so far has been mainly on large
industries, neglecting cottage industries completely, relegating small
industries to a minor role. The main thrust of the new industrial policy
will be on effective promotion of cottage and small-scale industries
widely dispersed in rural areas and small towns. It is the policy of the
Government that whatever can be produced by small and cottage
industries must only be so produced.”

The IPR 1977 accordingly classified small sector into three


broad categories:
1. Cottage and Household Industries which provide self-employment on
a large scale.

2. Tiny sector incorporating investment in industrial units in plant and


machinery up to Rs. 1 lakh and situated in towns with a population of
less than 50,000 according to 1971 Census.

3. Small-scale industries comprising of industrial units with an


investment of upto Rs. 10 lakhs and in case of ancillary units with an
investment up to Rs. 15 lakhs.

The measures suggested for the promotion of small-scale and


cottage industries included:
(i) Reservation of 504 items for exclusive production in small-scale
sector.

(ii) Proposal to set up in each district an agency called ‘District Industry


Centre’ (DIC) to serve as a focal point of development for small-scale
and cottage industries. The scheme of DIC was introduced in May 1978.
The main objective of setting up DICs was to promote under a single
roof all the services and support required by small and village
entrepreneurs.

What follows from above is that to the earlier thrust of protection (IPR
1948) and development (IPR 1956), the IPR 1977 added ‘promotion’.
As per this resolution, the small sector was, thus, to be ‘protected,
developed, and promoted.’

4. Industrial Policy Resolution (IPR) 1980:


The Government of India adopted a new Industrial Policy Resolution
(IPR) on July 23, 1980. The main objective of IPR 1980 was defined as
facilitating an increase in industrial production through optimum
utilization of installed capacity and expansion of industries.

As to the small sector, the resolution envisaged:


(i) Increase in investment ceilings from Rs. 1 lakh to Rs. 2 lakhs in case
of tiny units, from Rs. 10 lakhs to Rs. 20 lakhs in case of small-scale
units and from Rs. 15 lakhs to Rs. 25 lakhs in case of ancillaries.

(ii) Introduction of the concept of nucleus plants to replace the earlier


scheme of the District Industry Centres in each industrially backward
district to promote the maximum small-scale industries there.

(iii) Promotion of village and rural industries to generate economic


viability in the villages well compatible with the environment.

Thus, the IPR 1980 reemphasized the spirit of the IPR 1956. The small-
scale sector still remained the best sector for generating wage and self-
employment based opportunities in the country.
5. Industrial Policy Resolution (IPR) 1990:
The IPR 1990 was announced during June 1990. As to the small-scale
sector, the resolution continued to give increasing importance to small-
scale enterprises to serve the objective of employment generation.

The important elements included in the resolution to boost


the development of small-scale sector were as follows:
(i) The investment ceiling in plant and machinery for small-scale
industries (fixed in 1985) was raised from Rs. 35 lakhs to Rs. 60 lakhs
and correspondingly, for ancillary units from Rs. 45 lakhs to Rs. 75
lakhs.

(ii) Investment ceiling for tiny units had been increased from Rs. 2 lakhs
to Rs. 5 lakhs provided the unit is located in an area having a population
of 50,000 as per 1981 Census.

(iii) As many as 836 items were reserved for exclusive manufacture in


small- scale sector.

(iv) A new scheme of Central Investment Subsidy exclusively for small-


scale sector in rural and backward areas capable of generating more
employment at lower cost of capital had been mooted and implemented.

(iv) With a view, to improve the competitiveness of the products


manufactured in the small-scale sector; programmes of technology up
gradation will be implemented under the umbrella of an apex
Technology Development Centre in Small Industries Development
Organisation (SIDO).
(v) To ensure both adequate and timely flow of credit facilities for the
small- scale industries, a new apex bank known as ‘Small Industries
Development Bank of India (SIDBI)’ was established in 1990.

(vi) Greater emphasis on training of women and youth under


Entrepreneurship Development Programme (EDP) and to establish a
special cell in SIDO for this purpose.

(vii) Implementation of delicencing of all new units with investment of


Rs. 25 crores in fixed assets in non-backward areas and Rs. 75 crores in
centrally notified backward areas. Similarly, delicensing shall be
implemented in the case of 100% Export Oriented Units (EOU) set up in
Export Processing Zones (EPZ) up to an investment ceiling of Rs. 75
lakhs.
FINANCING SCHEMES BY FINANCIAL INSTITUTIONS
DAIRY PLUS SCHEME FOR FINANCING DAIRY UNITS
PURPOSE
For construction of shed, purchase of milK animals, milking machine,
chaff cutter or any other equipment required for the purpose.
Who are eligible?
 Individual farmers who are members of the milk procuring
societies or located on milk route.
 They should be less than 65 years of age.
 Individual dairy unit having less than 10 animal - should own
minimum 0.25 acre of land for every 5 animals for growing fodder and
be in a position to procure the balance requirements locally.
 Individual dairy unit having 10 animals and above - should own or
lease a minimum of one acre of land for cultivation of fodder for every
5 animals.
Other terms
 Only buffaloes producing more than 7 litres of milk per day and
cows producing more than 8 litres of milk per day are financed
 Animal purchase should be in 2 batches
Animals in first and second lactation alone are eligible for finance
LOAN AMOUNT:
 100% of the cost for loans upto Rs 100,000/
 90% of the cost for loans above Rs 100,000/ with a maximum of Rs 5
lakhs as Term loan

WORKING CAPITAL: A working capital @ Rs.2500/- per animal per


year may be Sanctioned for purchase of feed, fodder and medicine along
with the term loan

Security
 Hypothecation of assets created out of bank finance for loans upto
Rs 1.00 lac .
 For loans Over Rs.1 lac -Mortgage of landed property (or) third
party guarantee
 Worth for loan amount (or) group guarantee of other 2 dairy
farmers.

How do you repay


The loan should be repaid in monthly installments over a period of 5
lactations.
How to apply for this loan
You may contact our nearest branch or talk to the marketing officers
visiting your village.

STEPS FOR CREATING GLOBAL PRESENCE

 All players, private companies like Nestlé or the Amul cooperative,


can now invest into the development of the dairy sector by providing
services, extension and inputs, regardless of the former restricted
milk.

 The export of milk products from India has increased from Rs.2.49
crores in 1990-91 to Rs.1018.63 crores during 2007-08 despite the
fact that there are no special incentives for export except those that
are generally available to all exports. Skimmed Milk Powder, Ghee
and Cheese are the major products being exported from India. The
major destinations of exports were Bangladesh, USA, UAE, Egypt,
China, Algeria, Morocco, Thailand, Philippines, Nepal, Syria,
Singapore, Oman, Yemen and Saudi Arabia. The European Union,
New Zealand, Australia and USA are the four major players in the
export market, which account for nearly 85% of the world’s total
exports. Russia, African countries besides the SAARC countries are
emerging markets for Indian dairy products. Strategy to Promote
Dairy Exports from India Physical infrastructure and logistics remains
a key concern for exports of dairy products from India. An integrated
approach for overall enhancement of export logistics in terms of
creating cold chain facilities for transportation and storage needs to be
adopted. Besides, India needs to focus upon exports of value added
products with increased shelf-life and improved packaging to
compete in international markets. Concerted efforts should be made
in building global brands and establishing international marketing
channels. India needs to address effectively the emerging challenges
under the new trade order affecting exports of dairy products.
Moreover, as import tariffs have considerably declined and quota
restrictions fast disappearing in international markets, there is a strong
fear that high income countries are increasingly making use of quality
standards as a formidable barrier to dairy exports from India and other
developing countries. The research institutions and scientists in India
need to keep a close vigil on such mandatory quality specifications in
international markets so as to overcome the newly emerging
international trade barriers

STRATEGIES
MARKETING STRATEGIES

MARKETING MEASURES FOR DOMESTIC MARKET:

For domestic market following measures are taken up by marketing


personnel:

A. Dealers” meeting is called once in every six months.

B. The plant has own distribution network for the sale of products.

C. Milk products are marketed to bring up country markets


throughout INDIA on consignment basis.

FOR INTERNATIONAL MARKET:

For Export following measures are taken into consideration:

A. Requirement is given by customers in the letter of credit.

B. Quality should be mentioned.

FINANCIAL STRATEGIES
SOURCES OF FINANCE

 GOVERNMENT OWNED COMPANY SO FINANCED BY


GOVERNMENT

HUMAN RESOURCES

RECRUITMENT PROCESS

GOVT.OWNED SO RECRUITMENT BY WRITTEN TEST . NO


INTERVIEW IS TAKEN.

PART 2

DETAILS OF ACTUAL WORK DONE

SUGGESTIONS AND
RECOMMENDATIONS

LIMITATIONS OF RESEARCH
ANALYSIS

INTERPRETATION

ACTUAL WORK DONE:

 SAW THE PROCESSES OF MILK PLANT

 ELEMENTS OF SUPPLY CHAIN

 VISIT TO DIFFERENT BOOTHS


PROCESS OF PACKED MILK :

Usually milk is collected from the villages and then sent to the
societies .The raw milk flows through stainless steel or glass pipes to a
chilling centre called BULK MILK COOLING. It is cooled to above 4.4
degree
Milk is sent to laboratories for testing .

Heat treatment of milk

Heat treatment may be classified as:

 pasteurization

 standardization

 UHT (ultra-high-temperature) treatment integrated with aseptic


packing.

Pasteurization HTST (high-temperature short-time - heating at 72°C for


15 seconds) fulfils the following main objectives:

 to safeguard public health by destroying all pathogenic bacteria

 to extend the keeping quality of liquid milk by destroying most of


the milk-souring micro-organisms

 to ensure a product with a good keeping quality.

Standardization : It refers to the adjustment which means rising or


lowering of fats and solids , not fat levels of milk.The standardization of
milk is commonly done in case of market milk supply and also in case of
manufacture of milk products . Eg. Condensed milk , milk powder ,
cheese etc. Standardization of milk is categorized as FAT / STANDARD
MILK / DTM (Double toned milk) / TM (Toned milk) , FCM (Full
cream milk) .

Sterilization (in bottle) is the term applied to a heat treatment process


which has a bactericidal effect greater than pasteurization. Although it
does not result in sterility, it gives the processed milk a longer shelf life.
This is achieved partly by using a more severe heat treatment (about
110°C for 20–30 min) and partly by applying the treatment after the
bottle is filled and sealed which eliminates the risk of contamination
during packaging. As a result of the long holding time at this elevated
temperature, the product has a cooked flavour and a pronounced brown
colour.

PROCESS OF MAKING DAHI


Process on the basis of scientific lines has been developed for dahi
making in the organized sector. Fresh, sweet, good quality milk is
received, pre-heated and subjected to filtration and clarification. The
milk is standardized to 2.5 to 3.0 percent fat and 10 percent solids not
fat, pre-heated to 60oC and homogenized single-stage at a pressure of
176-kg/sq cm. The milk is heated to 85– 90oC for 15-30 minutes, cooled
to 22-25oC and inoculated with 1-2 percent of specific dahi starter
culture. It is then filled in suitable packaging containers of the
appropriate size and incubated at 22-25oC for 16-18 hours. After proper
setting of the dahi, the acidity of dahi reaches 0.6 to 0.7 percent and a
firm curd is formed.The curd is cooled by circulating chilled water or air
around the containers and then transferred to cold room maintained at
about 4-5oC. The flow diagram for manufacture of dahi is presented
here under (Fig.)
PROCESS OF MAKING PANEER

The pasteurized milk is heated at 85 degree C . Then again the milk is


cooled at 80 degree C (BY STIRRING) . Acid named as citric acid is
added to make that milk converted into paneer . All the unnecessary
whey is wasted and all is drained . Manually the paneer is set in square
typed containers and a 6 kg pressure is applied by a machine onto them
to make the paneer dry and to remove the remaining whey present in
there.
Second picture depicts that the whey which is certainly called the waste
out of the making of Paneer is unused which is one of the main
drawbacks of the organisation as whey can be reused in making of
Protein which is very costly affair outside. If the organisation finds a
way out or the technology to use this whey in making of protein then it
will really be a huge advantage in terms of money. As we can clearly see
that whey is getting waste and there is no technological advancement
through which it can be used.

ELEMENTS OF SUPPLY CHAIN :

TRANSPORTATION : The milk is brought by the tankers of the plant


but when it is sent to the retailers then distributors are appointed to do
the job . They have their own vehicles which they use for taking the
delivery from the milk plant itself and then take the products through
their channels to the retailers . Hence it is reached to the final consumer .

PROFIT MARGIN OF DISTRIBUTOR AND RETAILER : It is


obvious that the distributor keeps its share for the delivery at the right
time to the right place and so is applicable for the retailer . So in VITA
milk plant transporter ( distributor ) have the share of 60 paise per lt and
75 paise per lt which sums up to 135 paise .And the retailer keeps the
share of 2.25 rs per lt. 2% is the percentage of distributor and 5% is the
commission of the retailer. It depends upon the distributor once it takes
the order from the plant that on what rate the distributor gives it to
retailer . for eg 46 rs is the rate of a packet of milk then by cutting the
amount of the profit i.e 3.60 the billing will be done (which includes the
profit margin of the retailer ) . The billing will be done at 42.40 paise .
So by this profits are distributed.

INVENTORY CONTROLLED : The milk is stored in the warehouses


according to the shelf life of the milk. The distributor when he delivers
the milk in the morning asks for the demand for the evening in daily
basis. Likewise the process is done in the evening for the morning.
Hence the demand is also forecasted and the supply is done accordingly.

VISIT TO DIFFERENT BOOTHS :

As a supply chain student , I visited to different booths of vita in ambala


city to see the demand, supply and the sales. I found that Vita has a
strong supply chain system as there is no delay in the supply of products.
If there is any leakage in the product it is there and then exchanged.

DRAWBACKS :

1.The position of the booths were not upto the mark as they were not
properly painted and advertisement was not properly done .
2.Sometimes the distributor cuts the supply of products from one retailer
and gives to the other which is not satisfactory for any retailer. Hence
delays the consumption which is to be done by the ultimate consumer.

RESEARCH METHODOLOGY
INSIGHT MARKETING RESEARCH PROCESS AN
OVERVIEW

The essence of research conducted by me is to analyze the

 Present market position of Vita products among its


competitors and the problems which are being faced by
customers, wholesalers, retailers.

 Distribution channel

The eventual objective is to suggest some recommendations to the


company so as to enable them to increase their market share.

One analyzing my samples follows no conventional method. The total


analysis is based on the internees from the question put on before my
sample size. A research of this can’t be done all once throughout large
area in a limited time so AMBALA has been selected for research.

TO KNOW THE PRESENT MARKET


CONDITION OF VITA
STEPS OF MARKETING RESEARCH PROCESS:-

 DEFINING PROBLEM AND RESEARCH OBJECTIVES

 DEVELOPING THE RESEARCH PLAN

 COLLECTION OF DATA

 PRESENTATION OF THE FINDINGS

The first step of marketing research is defining the problems and


research objectives. Following are the problems and objectives which
are to be defined:

# To ascertain the frequency of using Vita product.

# To ascertain rescannable price of Vita products.

# To ascertain the best product of Vita brand. .

# why people prefer Vita milk.

# To know about sales pattern.

# To know the competition level faced by Vita products in the


market
.# To know the opinion of people about Vita products regarding its
taste, packing etc.

DEVELOPING THE RESEARCH PLAN

The second step of marketing research process calls for developing the
most efficient plan for gathering the needed information. While
designing a research plan we have to take decisions regarding data
sources, search approached, search instruments, sampling etc. There are
two plan contact methods which are as follows:

1. DATA SOURCES

There are two types of data sources

a. primary data

b. Secondary data

a.Primary Data:-

Personal interviews are conducted which enable collection of oral


verbal response. This is fact to face contracted with structured or
sometimes even unstructured patterns. This helps in obtaining indent
information.

b. Secondary Data:-

Secondary data can be obtained from different Milk plant magazines and
annual reports, financial documents referred.

2.

RESEARCH APPROACH

Survey Method :

- Survey are best suited for descriptive research companies which


undertake surveys to learn about peoples’ knowledge, beliefs,
preferences, satisfaction etc. to measure these magnitude in the general
population. While observation and tours are best suited for exploratory
research which is not the case of our study.

3. RESEARCH INSTRUMENT

Questionnaire
A questionnaire is prepared and used to collect the information. The
majority of questions are close ended. Questionnaire is distributed to
people to know about their preferences, tastes, demands etc. This is one
of the easiest methods of collecting information.

4. SAMPLING PLAN

After deciding on the research approach and instrument, we must design


a sampling plan. This plan calls for three decisions:

a. Sampling Unit:-

Here we define what is to be surveyed i.e. the target population that will
be sampled. In our case the general public in cities and towns come
under the sampling unit.

b. Sample Size:-

Large samples give more reliable results. In our study 100


customers were surveyed in Ambala

c. Sampling Procedure:-
Area sampling is using because it is not practically possible to visit
all places of India therefore Ambala chosen for survey.

5. CONTACT METHOD:-

In this decision is taken that how the object should be contacted i.e.
whether by mail questionnaire, telephone, interviews. In our research
personal interview is the most convenient and reliable method.

6.COLLECTION OF THE INFORMATION:-

The data collection phase of the marketing research is the most


expensive and most error prone process. There can be error as some
respondent can give biased or dishonest answer for the collection of the
information. The researchers personally go to customers to collect the
reliable data. Here all knowledge of the researcher about that field
comes to test the ingenuity of the research.

Here I got the experience of working professionally and independently


on the road which gives some taste of practical marketing. I also got a
lot of exposure about the market. The present study undertaken is
descriptive in nature and in this study questioning people with regular
expertise in that are being used.
Marketing strategies, consumer awareness and
the perception towards the products of VITA.

Parameters Of The Study

The study attempts to accomplish its objectives by making cross


sectional and inter-temporal analysis on the basis of 11 indicators. These
indicators are as follows:

* Awareness * Consuming/using * Consumption * Quality * Packing *


Taste * Advertisement * Price * Easy to Carry * Plus Point

LIMITATIONS OF RESEARCH

 Due to ambala being large geographically and being divided into


two parts i.e. ambala cantt and ambala city, therefore it was not
possible to interact with every individual responsible for the supply
chain and logistics management.
 Few consumers were reluctant to interact as they perceived us as
sales person and showed disinterest in communicating.
 It was not possible to interact with each distributor and dealers due
to the shortage of time and their hard to reach approach.
 There is no measure as to check whether the information gathered
by us on field trip is genuine or not.
 Time period for the project execution was less as ample time could
not be given to each customer and vice versa as they have to fulfill
their obligation also.
 There are certain aspects of working element which are out of
reach of a researcher and limit the access to a certain limit during
research as we are not fully given access to each and every bits and
pieces of the working cycle.
 Limited access to the upper level management of the plant for
interaction.

DATA ANALYSIS AND


INTERPRETATION
ANALYSIS & INTERPRETATION
1. Are you Aware about VITA products?

Answer Percentage
Yes 95
No 5

Percentage
Yes No

5%

95%

Figure 1

Interpretation:

The maximum no. of people in Chandigarh region are aware about vita
product’s due to its good quality . Only 5% out of 200 people are not
aware about vita product’s..

2.Do you like Vita Milk ?


Answer Percentage
Yes 70
No 30

Percentage
Yes No

30%

70%

Figure 2

Interpretation:

According to 200 respondents 70% says that they like the vita milk and
rest 30% says that they don’t like it.

3. Do you aware about brands of Milk?

Answer Percentage
Yes 85
No 15
Percentage
15%

Yes
No

85%

Figure 3

Interpretation:

According to 200 respondents 85% says that they aware about the
brands of milkand else 15% says that they only use loose milk.

4.Are you satisfied with packing quantity 200gm?

Answer Percentage
Yes 40
No 60
Percentage
Yes No

40%

60%

Interpretation:

According to 200 respondents out of 60 % says that satisfied with


packing quantity 200gm and else says 40% that they don’t satisfy with
that.

5. Do u want to vary the size.

Answer Percentage
300gm 15
500gm 20
1 kg 25
All 40
Percentage

45
40
35
30 Percentage
25
20
15
10
5
0
300gm 500gm 1kg All

6. From where you purchase VITA Milk?

Answer Percentage
Agency 55
Distributor 15
whole seller 10
Retail Store 20

60 Percentage

50

40

30 Percentage

20

10

0
Agency Distributor whole seller Retail store
7. Are you satisfy with supply of Vita Milk?

Answer Percentage
Yes 98
No 2

Percentage

120

100
Percentage
80

60

40

20

0
yes no

Interpretation-
According to the survey the supply of Vita milk is good and does not
default on demand estimation. Most of the customers were quite
satisfied with the availability of vita milk at almost their nearby
shopping stores or small shops or any retailer.

8. Are you satisfied with quality of Vita Milk?


Answer Percentage
Yes 95
No 5

Percentage
Yes No

5%

95%

9. Do you want additional flavor?

Answer Percentage
Yes 75
No 25

Percentage
Yes No

25%

75%
10. Do you want fruit and nuts in Milk?

Answer Percentage
Yes 92
No 8

Percentage
Yes No

8%

92%

11. Do you satisfy with price of Vita Milk ?

Answer Percentage
Yes 85
No 15
Chart Title
yes no
15%

85%

12. DO you have good experience with Vita?

Answer Percentage
Yes 97
No 3

Chart Title
yes no
3%

97%

14. DO you want any change in Vita products?

Answer Percentage
Yes 96
No 4
Chart Title
yes no
4%

96%

15. Are you satisfy with Vita?

Answer Percentage
Yes 94
No 6

Chart Title
yes no

6%

94%

Conclusion
Working at Vita Milk Plant, AMBALA gave me an opportunity to apply
my skills and knowledge, which I had gained previously.

It gave me an opportunity to see working an organization and to be a


part of it. Supply chain and Marketing Research Project on Rural
Marketing gave me an opportunity to be exposed to the farmers who
were the members of various Milk Producers’ Co-operative Societies
and to know about them.

It was an amazing experience with learning all the way, which helped
me to brush up my knowledge and skills.

SUGGESTION
AND

RECOMMENDATION

RECOMMENDATIONS REGARDING PRODUCT:-

 Vita has presently five variants of liquid milk in market but still it
is not able to segment market according to consumers’ preferences.
The only differentiation in these variants is the color of the packs.
Variants name should be printed on the packs in such a way that
they are clearly visible to the consumers. Different punch lines
should be designed for different variants. This will help in
formulating advertisement strategy and reaching the targeted
customers. For example, vita double toned milk is offered
recommended by doctors to heart patients. It can be targeted in
health conscious people.

 Plain lassi which comes in one liter pack only should be available
in smaller packs like 250ml or 500ml.

 Vita kheer is available in 125gm pack, which is quite small and is


recommended to be packed in larger pack like family size packs so
that it can be consumed conveniently as a sweet dish by whole
family.

RECOMMENDATIONS REGARDING PLACE


 Milk consumer values from delivery and a lot of distributors are
already providing this facility.

 Milk plant should think of giving extra commission to its dealers


for ensuring such facilities. This scheme can be implemented in
few areas and if there is an increase in consumption of milk then it
can be extended to all other areas catered by milk plant.

 There is need to communicate regularly and taking feedback from


agents. Monthly meetings will help in improving the relation with
dealers.

 The declaration of the prices like “Fastest Growing Dealer” OR


“Highest selling Dealer” can be announced bi monthly or bi
annually to motivate dealers to increase their sales.

RECOMMENDATION REGARDING PROMOTION

The following steps can be taken in the field of promotion:

1) Using electronic and print media for information dissemination:

In recent days, there has been lots of new highlighting adulteration of


food products that is making people skeptical about packed food
products. Special programs highlighting supply chain of milk producers
co-operatives can be screened and telecasted on TV from time to time
.news highlighting achievement of milk plant can also be published in
news papers which will help in creating favorable image for vita
products.

2) Inviting people for plant visits on weekends:

Plant can be opened to general public for visit on Saturday and Sunday
for a limited time interval in order to win their trust on vita products.
This can be done through collaborating with Radio Fm channels where
winners can get free visits and some limited period coupons.

3) Toll free telephone for customer feedback:

Presently vita products have a telephone number printed on their packs


but this is not toll free. A toll free number should be there and printed in
such a color or font that is easily differentiable from the rest of the text
on the pack.
Recommendations regarding pricing:

Following suggestions can be considered for improving pricing


strategies of companies:

1) Introduction of coupon system;

Milk is the commodity that is daily bought and consumed within


households. It is cumbersome for consumers to make payment daily as
change for currency is not available at times. There are offered candies
in return for change which many of the consumers do not like. This
problem can be solved by introducing milk coupon which can be bought
from agencies. Coupon system has been successfully implemented by
several individual distributors in their respective areas. It is needed to be
implemented in entire city.

2) Pricing in round figures:

 Milk sellers often do not have fifty paisa coin or change with them
so they often sell milk at higher prices .this problem can be curbed
by keeping the prices in whole number multiple of rupee. People
buying milk using coupons can be this discount of fifty paisa. This
will encourage more people to for milk coupon.
BIBLOGRAPHY

Brochure/booklet/magazine Vita milk Plant, Ambala

Websites:-

https://www.vitaindia.org.in/index.php

https://en.wikipedia.org/wiki/Milk_Vita

ANNEXURES

QUESTIONNAIRE

1.For how long you have been purchasing vita Products?


 0-2 Years
 2-5 Years
 5-10 Years
 More than 10 Years

2.Are you purchasing other Product instead of vita ?


 YES
 NO

3.Among them , which brand you, prefer most?


 Only vita
 Amul
 Verka
4.Do you collect any information while purchasing the products ?
 YES
 NO

5.Do you have any suggestion to make better promotion of


product ?
 Yes
 No

6.If yes, which sources are used?


 Magazines
 Dealers
 Sales Executives
 Operators Reference
 Pamphlets and Catalogue
 Reference from friends and relatives

7.What are the features you look in a product before making


purchase decision? Give preferences (1-Highest, 6-Least)
 Brand credibility
 Price and Discount
 Better taste
 Value for money
 Good quality
 Add on features or ergonomics of design

8.How would you rate the experience with Brand?


EXCELLE GOO AVERA BELOW
NT D GE AVERAGE

9. Which of the following marketing/ sales schemes attracts you


while purchasing any connection?
 Good taste
 Discount scheme
 Service package
 Any other

10. If you have to purchase a new product in near future, which


Brand will you go for and why?

11. Are you aware of various promotional activities being run by


Vita if yes then how ? Are you satisfied with these promotional
activities?

Very Satisfi Somewhat Not


satisfied ed Satisfied satisfied
12. How many different product providers have you had in past?
1
2
3
 None

13. If you are permitted to retain the current product that you
have would you change your product.
 Yes
 No

14. If so, which brand would you select (select only one )
 Amul
 Nestle
 Mother dairy

15. What are you suggestions for improving the product quality,
service availability and parts availability?

PERSONAL INFORMATION:- NAME:-


GENDER :-MALE FEMALE

ADDRESS :-
THANK YOU.

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