Project Shimul
Project Shimul
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A STUDY ON CUSTOMER SATISFACTION TOWARDS
BAMUL
Project submitted in partial fulfillment of the requirements for the award of
the degree of
MASTER OF BUSINESS ADMINISTRATION
Of
BANGALORE UNIVERSITY
By
ALFAHAD HASHMI
Reg.No.14ACCMA006
I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any University or Institution for the award of any
Degree/Diploma.
Signature
Seal
CERTIFICATE OF ORIGINALITY
DATE: DATE:
Bangalore Dairy
A STUDY ON CUSTOMER
SATIFACTION TOWARS
‘BAMUL’
1. INTRODUCTION
The Bangalore Milk Union Ltd., (Bamul) was established during 1975 under Operation Flood II
by keeping “Amul” as its Roll Model. At present Bamul has Bangalore Urban, Bangalore Rural
& Ramanagara Districts of Karnataka State as its area of operation for Milk Procurement and
selling Milk in part of Bruhath Bangalore Mahanagara Palika (BBMP) area. Since its inception
the Union is constantly striving further for dairy development and marketing activities in its milk
shed area.
OBJECTIVES:
To organize Dairy Co-operative Societies at Village level and dissemination of
information like good dairy animal husbandry and breeding practices & Clean Milk
Production through Extension Services.
To provide assured market & remunerative price for the milk produced by the farmer
members of the co-operative societies.
To provide technical input services like veterinary services, artificial insemination,
supply of balanced cattle feed & Fodder seed materials etc., to milk producers.
To facilitate rural development by providing opportunities for self-employment at
village level, thereby preventing migration to urban areas, introducing cash economy
& opportunity for steady income.
To provide quality Milk and milk products to urban consumers at competitive prices.
1.1 BACKGROUND
On January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department of Animal
Husbandry, Government of Karnataka was started Milk processing facilities & Veterinary
Hospitals at National Dairy Research Institute (NDRI). Later in 1962, The Bangalore Milk
Supply Scheme came into existence as an independent body. With the great efforts by the then
Hon’ble Minister for Revenue & Dairying, Government of Mysore Sri M V Krishnappa, A joint
venture of UNICEF, Government of India & Government of Mysore was dedicated Bangalore
Dairy to the people of Karnataka State on 23 rd January 1965 by the then Hon’ble Prime Minister
Late Sri Lal Bahadhur Shastriji. The Bangalore Dairy scattering over an area of 52 Acres of
land, the Dairy had an initial capacity to process 50,000 liters of milk per day. Bangalore Dairy
underwent a structural change in December 1975, handed over to Karnataka Dairy Development
Corporation (KDDC). Rural Milk Scheme of Mysore, Hassan & Kudige Districts was started
under Operation Flood-II and then transferred to Karnataka Milk Federation (KMF) in May 1984
as a successor of KDDC. To cater to the growing demand for milk by the consumers of
Bangalore City, the capacity was increased to 1.5 lakh liters per day under the Operation Flood-
II during 1981 and later increased to 3.5 lakh liters per day under Operation Flood-III during
1994.
As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy was
handed over to Bangalore Milk Union Ltd., (Bamul) on 1 st September 1988. The Union is
capable of processing the entire milk procured, by timely implementation of several
infrastructure projects like commissioning of New Mega Dairy state-of-the-art technology with a
processing Capacity of 6.0 Lakh liters per day, new chilling centers, renovation of product block
etc.,The milk shed area of Bamul comprises of 2611 revenue villages. As of now the Union has
organized 2046 Dairy Co-operative Societies (DCS) in 2388 villages, thereby covering 86 % of
the total villages in these three districts. In these DCSs, there are 3,44,176 milk producer
members. Among them 1,18,193 members are women and 58,427 members belong to Schedule
Caste and Schedule Tribes.
Bamul has been registered under MMPO by Central Registration Authority. Today, the Union
has become the biggest Milk Co-operative Union in Southern India. Bamul has been certified
for ISO 22000:2005 & ISO 9001-2000 for quality management and Food Safety Systems.
In recognition to these efforts and achievements, the National Productivity Council (NPC) of
Government of India has conferred “Best Productivity Award” FIVE TIMES and “Energy
Conservation Award” by Bureau of Energy Efficiency (BEE) to the Union.
Organization Chart
Bamul has been certified for ISO 22000:2005 & ISO 9001-2000 for
quality management and Food Safety Systems. The National
Productivity Council (NPC) of Government of India has conferred "Best
Productivity Award" for FIVE TIMES
Bureau of Energy efficiency, Govt of India conferred BAMUL has been
awarded 2nd place for the achievement in Energy conservation for the
year 2005 in Dairy sector.
2. COMPANY PROFILE
Procurement & Input
Inhabited Villages 2388
Milk Producer Members 3,44,176
Dairy Co-operative Societies 2004
Milk Procurement Routes + BMC Routes 127+32
Artificial Insemination Centers Single 262
Cluster 127
Processing Plants Capacity/Day (In Lakhs) Procurement/Day (In
Lakhs )
Bangalore Dairy 6.00 13.30
Anekal Chilling Center .60 0.84
Byrapatna Chilling Center .60 1.60
Doddaballapura Chilling Center .60 1.20
Hosakote Chilling Center 1.50 1.32
Solur Chilling Center .60 1.80
Vijayapura Chilling Center 1.00 1.74
Kanakapura Chilling Center .60 1.50
Bulk Milk Coolers 3.50 3.33
Marketing & Sales
Number of Distribution Routes 292
Retailers 1720
Whole Sale Dealers -
Franchisee Outlets 77
Milk Parlors 33
Transporter Cum Distributor -
Finance 2014-15
Total Share Capital (Rs in Lakhs) 2494.51
Annual Turnover (2014-15) (Rs in Lakhs) 124450
Net Profit (2014-15) (Rs in Lakhs) 3203
2.2 Milestone
16th November 1976.
After the bifurcation of the above Union, into two separate union for Bangalore Districts
(Urban and Rural) and Kolar District, Bangalore Urban and Rural District Co-operative Milk
Producers Societies Union Ltd. (BAMUL) was formed.
Bangalore Dairy ISO 22000-2005 & ISO 9001-2000 Certified by Standard Australia
International (SAI) Global Ltd., a reputed Australian based company during 2006.
Main Dairy
Milk Processing capacity was 60,000 Liters per day (LPD) at the time of establishment of the
dairy on 23rd January 1965.
Milk Processing capacity was expanded to 1.5 lakh LPD on 1st February 1981.
Milk Processing capacity was expanded to 3.5 lakh LPD during 1994.
Milk Condensing plant 3 Metric Tons per day.
Milk Processing capacity of 6,00,000 Liters per day (LPD) fully automated Mega Dairy
started functioning from 17th December 2000.
Anekal Chilling Center was started on 12th September 1964 with a milk chilling capacity of
20,000 LPD.
Later the milk chilling capacity was expanded to 60,000 LPD on 28th February 1999.
Byrapatna Chilling Center was started on 19th May 1962 with a milk chilling capacity of
20,000 LPD.
Doddaballapur Chilling Center was started on 5th January 1967 with a milk chilling capacity
of 20,000 LPD.
Vijayapura CC was established on 1st February 1995 with a milk chilling capacity of 1 lakh
LPD.
Solur Chilling Center
Solur Chilling Center was established on 31st January 1999 with a milk chilling capacity of
60,000 LPD.
Hoskote Chilling Center was commissioned on 29th March 2000 with a milk chilling
capacity of 1.5 lakh LPD.
Kanakapura Chilling Center was commissioned on 1st October 2004 with milk chilling
capacity of 60,000 LPD.
The Bangalore Milk Union is marketing milk and milk products in the brand name of “Nandini”
through 1668 retailers, 70 Franchisee Outlets, 33 Milk Parlors, 286 distribution routes. The key
success factor of Bamul in becoming a market leader is the narrow price spread maintained
between purchase & sales, marketing higher volumes of milk. The volume of sales plays a
critical role in determining costs. Hence, the market strategy of Bangalore Milk Union is to
regard selling of market milk as its core marketing activity and to concentrate its efforts in this
direction to increase the volume of milk sales. The impressive growth in the sale of milk by
Bamul over the years is due to the persistent efforts to maintain timely supply, maintaining
quality and attending to the complaints of consumers and agents with prompt follow-up action.
Homogenised Toned
Milk:Nandini Homogenized
Toned Milk is the pure milk
which is homogenized &
pasteurized containing 3.0% Fat
& 8.5% SNF. Consistent right
through, it gives you more cups
of tea or coffee and is easily
digestible. Available in 250ml,
500ml and 1ltr packs.
Definition: SWOT analysis is a method of looking at various factors that may influence the
success of an organization or a project. A "SWOT" analysis is divided into four quadrants (or
areas) that are typically charted to understand what effect each area may have on the results. The
areas charted, and from which the abbreviation "SWOT" is arrived, are Strengths, Weaknesses,
Opportunities and Threats.
SWOT Analysis
Competition
DEFINITIONS:
• Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations.
• Customer satisfaction is the perception of the customer that the outcome of a business
transaction is equal to or greater than his/her expectation.
Customer satisfaction is a marketing term that measures how products or services supplied by a
company meet or surpass a customer’s expectation.
Customer satisfaction is important because it provides marketers and business owners with a
metric that they can use to manage and improve their businesses.
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses.
Here are the top six reasons why customer satisfaction is so important:
The research problem selected for the analysis is entitled “A study of customer satisfaction’’
this topic is selected to know the customer behavior towards BAMUL.
Sometimes companies are misguided by the notion that customers depend on them. The truth of
the matter is that we very much so depend on them. Many researchers and academia have
highlighted the importance of customers in today’s market.
The level of satisfaction a customer has with a company has profound effects. Studies have
found that the level of customer’s satisfaction has a positive effect on profitability.
The study intends to know the relationship that exists between the customer’s satisfaction and the
services offered. It has to satisfy the customers by providing them good quality product and
services. It can happen only when the organization has proper knowledge about marketing and
marketing activities. Tracking customer satisfaction is of dire importance because, “customer is
the king, he can throw anyone from the chair by simply spending his money somewhere else”.
The management should know each and every problem of their customers. So that they can know
that their customers are satisfied or not satisfied.
The scope of the study is confined to BAMUL, in Dairy Circle, Bangalore. The present study is
an attempt to ascertain the extent of benefits, satisfaction of the customers, Bangalore. The scope
of the study focuses on evaluation of employee’s job satisfaction and deals with intrapersonal
relationship of employees and also motivation in BAMUL, Bangalore.
3.5-Methodology:
Data Collection: Primary and secondary data collection is been used for collecting the data The
data for the analysis will be collected from different sources which can be divided into two parts
named as:
Primary Data: The respondents are interviewed personally at the place with the help of:
Questionnaire
Personal interaction with customers
Observation
Secondary Data: Secondary data is taken from following resources.
Internet
Company manual and journals
Newspapers
Books
Mainly, the analysis of the study would be based on the data collected through the questionnaire
and personal interaction with the employees as it will help in getting the accurate data needed for
the analysis.
a-Sampling:
Customers of BAMUL organization are the sampling unit.
b-Sampling Technique:
The sampling technique to be used for this study is simple random sampling .The data
Collected for the analysis will be taken from Dairy Circle Bangalore BAMUL unit
c-Sample size:
The sample size for this study is 25 respondents.
3.7-Plan of analysis:
The primary data which is collected from customers is tabulated and analyzed by using statistical
tools like percentage, charts and diagram.
This study is limited to customers of BAMUL as their taste and preferences changes
frequently
Lack of interest and cooperation among a few respondents is another limiting factor
for collecting the data.
Different education background of the respondents is another limiting factor.
Only 25 respondents are considered.
4. Data Analysis and Interpretation:
In order to extract meaningful information from the collected data, analysis of the data is carried
out. The data has been edited, coded, tabulated and interpreted in this chapter. For analysis and
interpretations of the primary data, statistical tools and pie chart have been used.
This chapter deals with the analysis and interpretation of data collected in the process of the
study on customer satisfaction towards BAMUL. A survey was conducted based on the
questionnaire prepared. Respondents obtained were from different age group, both from
managerial and non-managerial category.
Yes 21 84
No 04 16
Total 25 100
Analysis:
The above table responded that 84% of customers like the nandini milk products and the other
16% don’t like the product as said on.
Respondents
NO
16%
YES
84%
Interpretation:
From the above pie chart it is clearly defined maximum customers prefer nandini milk products.
But they have some problems about quality.
Yes 19 76
No 06 24
Total 25 100
Analysis:
The above table responds that 76% of customers think that prices are frequently increases for the
milk products.
Respondents
Percentage
76
24
YES
NO
Interpretation:
From the above graph the Company should reduce their product amount as many customers’
uses nandini milk products if this case continues then the customer will think to use different
company’s product as majority think that the company frequently increases their product prices.
Table showing the BAMUL nandini milk products used by the customers:
The above table responds that the majority of the customers use the product monthly that is 48%
and then 32% of them use the product daily.
Respondents
Percentage
48
32
16
4
Interpretation:
From the above bar diagram majority customers use the nandini products weekly by these
customers the does not reach to the level of his satisfaction. Only 32% of the customers use the
product daily and many of them monthly. So the company should attract their customers towards
their by which the level of customers satisfaction will be improved
Table showing the satisfaction of the customers towards BAMUL nandini milk products:
Overall No of respondent 01 15 06 05 01 25
Quality+ Percentage (%) 04 60 24 20 04 100
Value [price] No of respondent 01 08 11 03 02 25
Percentage (%) 04 32 44 12 08 100
Purchase No of respondent 03 08 07 04 04 25
experience Percentage (%) 12 32 28 12 16 100
First use No of respondent 03 06 06 04 06 25
experience Percentage (%) 12 24 24 16 24 100
Usage No of respondent 03 06 04 04 08 25
experience Percentage (%) 12 24 16 16 32 100
Analysis: From the above table the overall quality is unsatisfied as 60% of the customer doesn’t
like the quality of the product, and the price of the product is neutral and also purchase
experience, the first use experience lies between unsatisfied and neural and the usage
experience is very much satisfied by the customers.
Respondents
Overall Quality Value [price] Purchase experience
First use experience Usage experience
60
44
32 32 32
28
24 24 24 24 24
20
16 16 16 16
12 12 12 12 12
8
4 4 4
Interpretation: From the above graph many customers are unhappy with the quality of the
product by which the company should change the quality of the product and the other things
mostly the customer did not satisfied with the value of the product, purchase and other things
but the usage experience mostly satisfied to the customers
Table showing the comparison of BAMUL nandini products with other companies:
The above table responds that the customers prefers that the company is about the same compare
to other companies as well as somewhat better also both clashes to 28% of the customers.
Showing the comparison of the BAMUL nandini products with other company products:
Respondents
Much worse
4% Much better
20%
Somewhat worse
12%
Somewhat
better
About the same 32%
32%
Interpretation:
From the above pie chart the customers are very much prefer that the company is about the same
taste and preference with other companies.
Table showing weather the customer use or purchase the nandini milk products again:
Analysis:
From the above table the majority of the customer’s things that they may use the nandini
products probably respond to 32% and 28% response that they may purchase the product.
Showing the response of customers on their use and purchase of nandini milk products:
Respondents
Percentage
32
28
24
12
Interpretation:
From the above column cone diagram the customers are very much not sure to purchase the of
nandini milk products mostly the customers the may use the product probably. The company
should influence their customers they should produce good quality of products and their value, so that
the customer may definitely purchase the product.
Table showing customers experience with nandini milk products would prefer to purchase with
other companies milk products:
Yes 11 44
No 05 20
Cannot say 09 36
Total 25 100
Analysis:
From the above table 44% of the want to change their products and 36% of the customer unable
take up their decision.
Showing customers experience with nandini milk products would prefer to purchase with other
companies products
Respondents
Yes No Cannot say
36%
44%
20%
Interpretation:
From the above pie chart it is clearly defined that customer want to change their product and
purchase the product of other company. In this situation the company should know the reason
why the customer want to change their product they should find some solution.
Table showing problems resolved towards the customers when they contact with BAMUL:
From the above table majority 40% of the customer solves their problem by himself or someone
and 32% of the customer did not have any contact with customer service.
Showing problems resolved towards the customers when they contact with BAMUL:
Percentage
No, no contact with customer service 32
Yes, by company 20
0 5 10 15 20 25 30 35 40 45
Interpretation:
From the above bar diagram the more number of customers resolve their problems by themselves
or by someone else; more over 32% of the customers didn’t have any contact with the customer
service. The company should know the problem of their customer so that they can resolve it
quickly. And at most 24% of the customer’s problem has not been solved by the company this
makes the customer to change their products.
Summary of Findings
Majority of respondent i.e. 84% of the customers like the BAMUL nandini milk products
but not satisfies their level..
Customers are not much satisfied with the BAMUL nandini milk products due to quality
of product.
Most of the respondents i.e. 76% of them are not satisfied with price of the nandini milk
products.
Majority of the respondents, 70% feel that their feedback has been taken by the
department to make improvements.
It is found that, 64% of them feel that, BAMUL milk products are same or much better
with other company products.
Majority of the respondents, say 60% of them are unsatisfied with the quality of the
products.
Very less respondents i.e. 32% of them feel that the first use experience of the product or
satisfied.
Only 32% of customers say that they may probably purchase or use the nandini milk
products.
Majority of the respondent’s i.e. 42% say that they want to change their milk products.
Only 20% of the respondent customer’s problems has been solved by the company and
the other 32% of the respondent customers have not yet solved because they don’t have
contact with customer services.
Conclusion
The project was planned in order to study the level of customer satisfaction towards BAMUL in
Bangalore Milk Union.
Customers play an important role in any of the organization as they have always contributed
their share in the form of purchasing using in the form of organization for the growth of the
organization. So it is an important duty of the organization to provide good quality of the milk
products and reasonable price to their customers. The research has proved that the majority of the
respondent’s customer is unsatisfied with the product. Organization has to take up various steps
to renovate their product so that they can perform in a better way. Depending upon customer’s
knowledge, skill, attitude, taste and preference the organization has to allot the products on their
specification. Organization has to identify the most valuable customers who purchase the
company’s product daily and should encourage them to participate in the decision making
process of new product development.
By this, it can be concluded that the level of customer’s satisfaction is very important and it
depends on the facilities provided to the company to their customers. If the facilities like good
quality of the product, reasonable price, and good taste are provided to their customers, it
motivates them to purchase more and more products, which results in the better production and it
also improves the industrial relations between the customers and the customers increases the
level of his satisfaction.
Suggestions
Customers are the KING of any organization. They are the key asset to the organization. Their
involvement and commitment towards the purchase or use of product is very important. To gain
this involvement, behavior of the retailers towards their customer plays an important role. These
customers may lead to their satisfaction level. The suggestions given below are based on the
analysis and observation. It can be taken into consideration to improve and enhance customer
satisfaction towards BAMUL.
Management should communicate with their customers about the quality of the products.
Evaluate the price for the product. Find ways to cut the cost.
Management should motivate the customers to purchase their products.
Majority of the customers respondent that they want to change their product may be due
their problems may have not been solve, the organization should suggest their customers
problem, try to solve their problems so that they may reached to their satisfaction level.
Timely products should be reached to their customers.
Management should provide good faculties to their customers.
Enlightening the customers about their new innovation of the products.
Improvement in customer service.
Customer relation management should be increased.
Explore new markets for the products.
Learning Experience
Every human being learns hence only out of experience and experience is the way of life. In life,
a person enhances his knowledge only when exposed to real world situations, and by being
exposed to the real conditions in a systematic manner.
In this summer project, the researcher could understand the concepts more clearly than before
and could visualize them properly and became aware of the day to day activities that were
carried out in the organization. Interacting with an organization that has existed since long was
an experience of a life time. The customers towards BAMUL, had been of tremendous support
to researcher in doing the project work. They guided in every step and gave all the necessary
information for doing the project. This has made to learn that the people towards organization
are accommodative in Marketing. Without their support, it would have been highly difficult.
The working of the dairy is well planned, especially the production department, quality control
and the packing section. Organization was adopting various strategies like producing good
quality of products and services and creating advertisement campaigns over the region. After the
experience in BAMUL, the researcher understood that milk is not a simple thing to be just
procured, packed and sold to consumers. It involves lot of procedures, efficiency in maintaining
the quality and overall a commitment to sell the best to the consumers for whom it is an
important drink to consume directly or indirectly.
The researcher has understood how important it is to have quality in work life. Systematic and
committed working is the most important lesson that the researcher have learnt by studying the
organization.
The researcher’s experience from the project has been an important source of practical
knowledge. It has been understood that, organization do not exist only to make profit but to serve
the society by producing the quality goods.
ANNEXURE
QUESTIONNAIRE
RESPECTED SIR/MADAM,
1. Date:
Name:
Age:
Place:
Mobile no:
Work:
Gender: Male[ ] Female[ ]
2. Do you like nandini milk products?
YES [ ] NO [ ]
YES [ ] NO [ ]
Daily
Weekly
Monthly
Yearly
5. How satisfied are you with BAMUL nandini milk products on each item?
Definitely
Probably
Maybe
Probably not
Definitely not
8. Based on your experience with nandini milk products would you like to purchase another
companies milk products?
9. If you have contacted BAMUL [KMF] customer service, were all the problems resolved to your
complete satisfaction:
Yes, by company
Yes, by you or someone
No, not resolved
No, no contact with customer service
10. What would you like to tell BAMUL [KMF] about your satisfaction nandini other product that was
not already asked in a survey?
Bibliography:
AUTHORS BOOK EDITION PUBLICATION
Reference:
Websites:
www.kmf.com
www.nandiniproducts.coop
www.wikipedia.com
www.indiandairy.com
www.mmbamul.com