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Customer satisfaction on KMF

EXECUTIVE SUMMARY

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INDUSTRY PROFILE
INDUSTRIAL BACKGROUND Dairying prior to operation flood: The earliest attempts of dairy development can be traced back to British rule, when the Defiance Department established military dairy farms to ensure the supply of milk and butter to the colonial army. The first of these farms was set up in Allahabad in 1913; subsequent facilities were established at Bangalore, Ootacamund and Karnal. These farms were well maintained. As animals were reared under farm conditions, some herd improvement was made using artificial insemination. This approach did not have any impact on the supply of milk to urban consumers, which was of major concern to civilian authorities but less important to the military. With the growth of the population in urban areas, consumers had to depend on milk vendors who kept cattle in these areas and sold milk, often door-to-door. As a result several cattle sheds came into existence in different cities. To some extent, the Second World War gave impetus to private dairies with modestly modernized processing facilities. In the cities like Bombay, Calcutta, Madras, and Delhi and in some large townships, processed milk, table butter and ice-cream were available. Polsons, Kelventers and the Express Dairy were some of the pioneer urban processing dairies. These dairies were not concerned with improving the breed of milk animals but were content with contracting milk supplies through middlemen or their own staff. Milk producers as well as consumers were exploited to a large extent. Despite modernized processing facilities, dairying remained unorganized. With the initiation of Indias first five-year plan in 1951, modernization of the dairy industry became a priority of the government. The goal was to provide hygienic milk to the countrys growing urban population. Initial government action in this regard consisted of organizing milk schemes in large cities. To stimulate milk production, the government implemented the Integrated Cattle Development Project (ICDP) and the Key Village Scheme (KVS), among other similar programmes. In the absence of a stable and remunerative market for milk producers, however, milk production remained more or less stagnant. During the 1960s, various state governments tried out different strategies to develop dairying, including establishing dairies run by their own departments, setting up cattle colonies in urban areas and organizing milk schemes. Almost invariably, dairy processing plants were built in cities rather than in the milk sheds where milk was produced. This urban orientation to milk production led to the JSSATE-BANGLORE Page 2

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establishment of cattle colonies in Bombay, Calcutta and madras. These government projects had extreme difficulties in organizing rural Milk procurement and running milk schemes economically, yet none concentrated on creating an organized system for procurement of milk, which was left to contractors and middlemen. Milks perishable nature and relative scarcity gave the milk vendors leverage, which they used to considerable advantage. This left government-run dairy plants to use large quantities of relatively cheap, commercially imported milk powder.

All these factors combined left Indian dairying in a most unsatisfactory low-level equilibrium. The establishment and prevalence of cattle colonies emerged as a curse for dairying in the rural hinterland as it resulted in a major genetic drain on the rural milk animal population, which would never be replaced. City dairy colonies also contributed to environmental degradation, while the rural producer saw little reason to increase production.

Operation flood: The strategy for organized dairy development in India was actually conceived in the late 1960s, within a few years after the National Dairy Development Board (NDDB) was founded in 1965. It rested on the Operation Flood programme, which was conceived by the NDDB and endorsed by the government. Operation Flood is a unique approach to dairy development. During the 1970s, dairy commodity surpluses were building up in Europe. The chairman of NDDB saw those surpluses as both a threat and an opportunity. The threat was massive exports of low-cost dairy products to India, which had it occurred, would have told the death-knell for Indias staggering dairy industry. The large quantities that India was already importing had eroded domestic markets to the point where dairying was not viable. The opportunity, on the other hand, was built into the Operation Flood strategy. Designed basically as a marketing project, Operation Flood recognized the potential of the European surpluses as an investment in the modernization of Indias dairy industry. With the assistance of the World Food Programme, food aid in the form of milk powder and butter oil was obtained from the countries of the European Economic Community (EEC) to finance the programme. Operation Flood is a programme designed to develop dairying by replicating the An and Model for dairy development, which has stood the test of time for almost half a century. The first phase of Operation Flood was launched in 1970 following an agreement with the World Food Programme, which undertook to provide as aid 126000 tonnes of skim milk powder and 42000 tonnes of butter oil to finance the programme. JSSATE-BANGLORE Page 3

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The programme involved organizing dairy co-operatives at the village level; creating the physical and institutional infrastructure for milk procurement, processing, marketing and production enhancement services at the union level; and establishing dairies in Indias major metropolitan centres. The main thrust was to set up dairy co-operatives in Indias best milk sheds, linking them with the four main cities of Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk market was to be captured. In achieving that goal, the first phase of Operation Flood laid the foundation for Indias modern dairy industry, an industry that would ultimately meet the countrys need for milk and milk products. The second phase of the programme was implemented between 1981 and 1985. Designed to build on the foundation laid in the first phase, it integrated the Indian Dairy Association-assisted dairy development projects being implemented in some Indian states into the overall programme. The current third phase of Operation Flood aims at ensuring that the co-operative institutions become self-sustaining. The programme envisages substantial expansion of the dairy processing and the marketing facilities; an extended milk procurement infrastructure; increased outreach of production enhancement activities and professionalization of management in the dairy institutions.

National Dairy Development Board (NDDB) National Dairy Development Board was established in 1965 under the Societies Registration Act, the Charitable Trust Act and the Public Trust Act, to fill the vacuum of national-level organization to replicate An and Model dairy co-operatives throughout the country and to make available multidisciplinary, professional dairy expertise to dairies in the public and co-operative sectors. During its initial stages, NDDB was assisted financially by the Government of India, the Danish Government and by AMUL. It also received aid from the United Nations Childrens Fund (UNICEF) in the form of teaching material and equipment. In 1969, when the Government of India approved the Operation Flood programme and Its financing through the monetization of World Food Programme-gifted commodities, it was found that the statutes under which NDDB was registered did not provide for handling of government funds. Therefore, in 1970 the government established a public-sector company, the Indian Dairy Corporation. The IDC was given responsibility for receiving the projects donated commodities; testing their quality; their storage and transfer to user dairies and receiving the dairy payments. Thus it served as finance-cum-promotion entity while the entire Operation Flood technical support was provided by NDDB. To avoid any duplication in their activities or overlap of functions, the IDC and JSSATE-BANGLORE Page 4

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NDDB were eventually merged into a newly constituted NDDB by an Act of Parliament passed in October 1987.

KARNATAKA MILK FEDERATION Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 milk unions in the state and thus forming the state level apex organization. As a co-operative apex body of the state of Karnataka, it represents dairy farmers organization and also implements dairy development activities to achieve the following objectives: Provides assured and remunerative market for the milk produced by the farmer members. Provide quality milk to urban consumers. To build village level institutions in co-operative sectors to manage the dairy activities. To ensure provision of milk production inputs, processing facilities and dissemination of know-how. To facilitate rural development by providing opportunities for self employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for steady income.

List of co-operative milk producers under Karnataka Milk Federation:

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2 COMPANY PROFILE INTRODUCTION:
MYSORE DAIRY, a unit of Mysore Chamrajanagar District Co-Operative milk producers Union Limited (MYMUL) registered under Karnataka co-operative act has been commissioned in the year 1976. It is fully owned and managed by Mysore and Chamrajanagar districts of Karnataka state. The philosophy of this co-operative milk producers organisation is to eliminate middlemen and organize institutions owned and managed by milk producers, by employing professionals. Achieve economies of scale of rural milk producers by ensuring maximum returns and at the same time providing wholesome milk at responsible price to urban consumers. Ultimately, the complex network of co-operative organisation should build a strong bridge between masses of rural producers and millions of urban consumers and achieve a socio-economic revolution in the village community.

2.1 Background and inception of the company Under the World Bank aided Karnataka Dairy Development Projects, the activities on Dairy Development were taken up in the year 1975. The Mysore Coop Milk Producers Societies Union Ltd was established on 23.11.1976, having the jurisdiction extended to the entire Mysore District and Five Taluks of Mandya District. The Union undertook the work of organization of Milk Cooperatives in AMUL Pattern with the main objective of socio-economic reformation of the farmers in the rural areas through Dairying as main subsidiary occupation. Later the Union was bifurcated into Mysore and Mandya District Co-Operative Milk Producers Societies Union Ltd from 01.04.1987. Consequent to the bifurcation of Mysore District into Mysore and Chamrajanagar Districts, this Union is renamed as

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Mysore-Chamrajanagar District Coop Milk Producers Societies Union Ltd. Main functions of this union: To provide remunerative market for the milk produced by the rural farmers throughout the year irrespective of the quantity supplied by them. First Aid facility at the Society level. Emergency visits to treat the animals on a nominal fee to be collected from the producer. Cross breeding facility through Artificial Insemination service. Supply of balanced Cattle Feed to the farmers of the Coop Societies at subsidized rates. Technical guidance and supply of root slips/seeds for Fodder cultivation by the members of the Coop Societies Effective supervision/extension services through field executives of the Union. Intensive Co-Operative education programmes to the women members of the Dairy Coop Societies through Coop Development Programme.

Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the control of the Department of Animal Husbandry and Veterinary Services of Karnataka State, which was transferred to Karnataka Dairy Development Corporation in the year 1974. The capacity was expanded to 60 TLPD in 1980 and transferred to the Karnataka Milk Federation in 1984. The capacity was expanded to 100 TLPD under the Operation Flood II and further expanded to 150 TLPD under OF III Programme. As per the Government policy the Dairy and its Chilling Centres were handed over to MYMUL on 01.06.1987

2.2 VISION AND MISSION: Vision: The vision of MYMUL is to provide quality milk products to the consumers and emerge as one of the top milk union of the co-operative dairy industry in the country.

Mission: MYMUL is committed to provide maximum possible price for the milk supplied by its members and provide necessary inputs to enhance milk production while ensuring economic viability of the union. JSSATE-BANGLORE Page 8

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2.3 Qualitypolicy: MYMUL is committed to producers welfare through customers delight by adopting continuous improvement and ensure pure and hygienic milk and milk products. Values: Honesty Discipline Quality Cost control Co-operation Team spirit Service motive

PRODUCTS DETAILS:

MILK PRODUCTS

Pasteurised Toned Milk

Shubha

Nandini Double Toned Milk

Samrudhi

Homogenised Cow's Pure Milk JSSATE-BANGLORE

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Goodlife Slim Milk

Sampoorna Standardised Milk

Smart Double Toned Milk

Goodlife UHT Long Life Milk

Curds & other fermented products

Yoghurt

Real Thick Curd

Curd

Butter Milk

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Premium Curd Large

Set Curd

Sweet Lassi

Milk powder

Dairy Whitener

Skimmed Milk Powder

Badam-Powder

Ghee & butter

Ghee in Standy Pouches

Butter Salted & Unsalted

Ghee In Bag

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Ghee in Pet Jar

Ghee in Sachet

Icecream & Frozen Desserts

Crazy Cone Ice Cream Scotch Chocolate

Nandini Magic Strawberry

Pista Kulfi

Butter

Chocobar

IceCream Tasty Anjir

IceCream TastyChocolate

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Ice Cream Delightfully Tasty Vanilla and Strawberry

Ice Cream Delightfully Tasty Kaju Draksh

Ice Cream Delightfully Tasty Mango

Ice Cream Delightfully Tasty Kesar Pista

Ice Cream Delightfully Tasty Black Currant

Casatta Ice Cream

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Nandini Sugar Free Pro Biotic Frozen and Strawberry

Matka Kulfi Food

Vanilla

Ice Cream Delightfully Tasty Butter Scotch

Ice Cream Delightfully Tasty Pineapple

Dolly Stick Ice Cream Raspberry & Orange

Ice Candy Mango

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Sundae Ice Cream Strawberry

Sundae Icre Cream Butter Scotch

Ball Ice Cream Vanilla Strawberry

Milk Sweets

Mysore Pak

Khova Jamoons

Dry Fruits Burfi

Rossagolla

Assorted sweets gift box

Coconut Burfi JSSATE-BANGLORE

Vermicelli Payasa Mix Page 15

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Chocolate Burfi

Nandini Bite

Premium Badam burfi

Premium Besan Ladoo Kesar Peda

Premium Cashew Burfi

Pure Milk Elachi and

Pure Milk Peda

Other Products

Nandini Cream

Process Cheese Spread JSSATE-BANGLORE

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Nandini Sugar Free Peda

Diced Paneer

Dharwad Peda

Flavoured Milk Pista Mango Strwaberry

Flavoured Milk Coolchoco Milk Shake

Flavoured Milk

Gulab Jamoon Mix

Khova

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Paneer

Kunda

Chocolate

creamy bite

Eclairs

Goodlife

Chit Chat

PRICE OF PRODUCTS : Sl.No. 1 2 3 4 5 Product Assorted Sweets Badam Milk Mix Butter Butter Butter Packing Gift Box Pouch Carton Carton Carton JSSATE-BANGLORE Pack Size 1 Kg 500-Gm 100-Gm 500-Gm (Salted) 500-Gm MRP per Pack Rs.400.00 Rs.150.00 Rs.29.00 Rs.145.00 Rs.147.00 Page 18

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(UnSalted) 6 7 8 9 Butter Milk Cheddar Cheese Cheddar Cheese Dairy Whitener Tetra pack Pouch Pouch Pouch Pouch Bag Tetra pack Tetra pack Tetra pack Pouch PP Jar Pouch PP Jar Tin Pouch 200-ML 200 Gm 1000 gm 500-Gm 1Kg 25kg 200-Gm 200 ml 200 ml 500-ML 1000-ML 1-Ltr 5-Ltr 500-Gm 200-Gm 1250 ml Buy 1 Get 1 750 ml 5000 ml 5000 ml Rs.10.00 Rs.65.00 Rs.270.00 Rs.115.00 Rs.220.00 Rs.5000.00 Rs.17.00 Rs.17.00 Rs.17.00 Rs.157.00 Rs.320.00 Rs.310.00 Rs.1525.00 Rs.80.00 Rs.50.00 Rs.130.00 Rs.136.00 Rs.525.00 Rs.525.00

10 Dairy Whitener 11 Dairy Whitener 12 Flavoured Milk Badam 13 Flavoured Milk Pista 14 Flavoured Milk Strawberry 15 Ghee 16 Ghee 17 Ghee 18 Ghee 19 Gulab Jamoon Cont.RTE 20 Gulab Jamoon Mix 21 Ice Cream Anjir 22 Ice Cream Anjir 23 Ice Cream Anjir 24 Ice Cream Anjir / Black Current

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25 Ice Cream Black Current 26 Ice Cream Black Current 27 Ice Cream Black Current 28 Ice Cream Butter Scotch 29 Ice Cream ButternScotch 30 Ice Cream ButterScotch 31 Ice Cream Chocolate 32 Ice Cream Chocolate 33 Ice Cream Chocolate 34 Ice Cream Kesarpista 35 Ice Cream Kesarpista 36 Ice Cream Khajudraksh 37 Ice Cream Khajudraksh 38 Ice Cream Mango 39 Ice Cream Mango 40 Ice Cream Pineapple 41 Ice Cream Pineapple Ice Cream Probiotic Sugar Free Frozen Food Buy 1 Get 1 Buy 1 Get 1 Buy 1 Get 1 1250 ml 750. ml 5000 ml 750 ml 1250 ml 5000 ml 1250 ml 750 ml 5000 ml 1250 ml 5000 ml 1250 ml 5000 ml 1250 ml 5000 ml 1250 ml 5000 ml Rs.130.00 Rs.136.00 Rs.525.00 Rs.115.00 Rs.110.00 Rs.425.00 Rs.105.00 Rs.110.00 Rs.425.00 Rs.145.00 Rs.550.00 Rs.115.00 Rs.450.00 Rs.100.00 Rs.425.00 Rs.95.00 Rs.350.00

42

500 ml

Rs.60.00

43 Ice Cream Strawberry

1000 ml

Rs.85.00

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44 Ice Cream Strawberry 45 Ice Cream Vanilla 46 Ice Cream Vanilla 47 Khova Pouch Outer (44 Bars) Outer ( 24 Slabs) Jar (550 pcs) Jar (220 pcs) Outer (44 Bars) Pouch PP Jar PP Jar Pouch 1kg 200-Gm 400-Gm 500-Gm 5000 ml 1000 ml 5000 ml 200-Gm Rs.350.00 Rs.85.00 Rs.350.00 Rs.52.00

48 Nandini Chit Chat Chocolate

Rs.195.00

49 Nandini Creamy Bite Chocolate

Rs.220.00

50 Nandini Eclairs 3.2 Chocolate 51 Nandini Eclairs Chocolate 4.5

Rs.275.00 Rs.200.00

52 Nandini Good Life Chocolate

Rs.195.00

53 Panner-bulk 54 Set Curd 55 Set Curd 56 SMP

Rs.206.00 Rs.15.00 Rs.27.00 Rs.125.00

57 SMP

Pouch

1kg

Rs.225.00

58 Sterlized Flavoured Milk Badam

Bottles

200-ML

Rs.16.00

59 Sterlized Flavoured Milk Pista

Bottle

200 ml

Rs.16.00

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60 Sugar Free Peda Box 100-Gm Rs.34.00

61 Sweet - Badam Burfi

PP Box

250-Gm

Rs.130.00

62 Sweet - Belgaum Kunda

Tin

250-Gm

Rs.60.00

63 Sweet - Cashew Burfi

PP Box

250-Gm

Rs.120.00

64 Sweet - Dharwad Peda

Duplex Carton

250-Gm

Rs.60.00

65 Sweet - Dry Fruits Buri

PP Box

250 gm

Rs.140.00

66 Sweet - ElaichiPeda

Duplex Carton

250-Gm

Rs.75.00

67 Sweet - Kesar Peda

Duplex Carton

250-Gm

Rs.80.00

68 Sweet - Mysorepak

PP Box

250-Gm

Rs.80.00

69 Sweet - Mysorepak

PP Box

500-Gm

Rs.155.00

70 Sweet - Peda

Duplex Carton

250-Gm

Rs.75.00

71 Sweet- Besan Ladu

PP Box

250-Gm

Rs.75.00

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72 Sweet-Chocolate Burfi PP Box 250 gm Rs.80.00

73 Sweet-Coconut Burfi

PP Box

250 gm

Rs.80.00

74 UHT Good Life

Fino

200 ml

Rs.9.00

75 UHT Good Life

Brick

200 ml

Rs.8.00

76 UHT Good Life

Fino

500 ml

Rs.20.00

77 UHT Good Life

Brick

1000 ml

Rs.40.00

Objectives of MYMUL: To provide a guaranteed remunerative milk market round the year for all the marketable surplus of member producers in their villages. To procure milk, process into good quality milk/milk products and market it most economically and efficiently to give maximum overall net-returns to the producers and general satisfaction to the consumers. To provide essential technical inputs and services to the producers at their door-steps in an economic and efficient manner and also in a way most acceptable to them. To build village level institutions co-operative sector to manage the dairy activities.

In order to fulfil these objectives, the union is constantly engaged in working towards improvements of business as well as the welfare of the producers. This has resulted in greater performance on commercial as well as in institutional fronts.

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2.4 MYSORE Dairy, complex facts at a Glance.

1 General Area of the Dairy Handling capacity Estimated cost of Building Number of employees : 45 acres : 4.80.00 LPD : 2.89crores : 320

2 .Milk procurement Dairy co-operative societies functioning Dairy societies registered Procurement routes Chilling centres Districts covered Taluks covered Villages covered : 895 : 936 : 71 :3 :2 : 11 : 2005

3 Milk Distributions Distribution routes Districts covered Selling agents in urban Selling agents in rural Milk parlours : 47 : 2 : 510 : 450 : 68

City of Palaces and Banana: Here was initiated by the Maharaja, the artificial insemination concept. This union reciprocated by organizing Cluster Artificial Insemination (AI) Centres covering 11 talukas and more than 1288 functional DCSs. It has chilling centers at Chamarajanagar-60 TLPD, Hunsur-60 TLPD and Kollegala-20 TLPD .Total chilling capacity 140 TLPD. There is Bulk Milk Collars -49, Automatic Milk Collection-232 and community milking parlor-15 in the union JSSATE-BANGLORE Page 24

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The union procures on an AVG 5.63 lac kg/day of milk and sales 2.35 lac litres/per Speciality of the Union: Union has launched ground level water storage tanks during drought for cattle in more than 600 DCS. Mysore-Chamarajanagar Dist.Co-op.Milk Producers' Societies' Union Limited

2.5 AREA OF OPERATION


MYMUL not only operates in Mysore districts, but, also operates in some parts of Chamrajanagar District. It operates 502 distribution centres, concerning all the agents besides, there are 2 milk parlour maintained by the dairy. The area of operation is as under:

Mysore Tq. T Narasipura Tq. Nanjanagudu Tq. H.D.Kote Tq. Hunsur Tq. Piriapatana Tq. K.R. Nagar Tq.

Chamrajanagar District Gundlupete Tq. Kollegala Tq. Yalandoor Tq.

Chamrajanagar Tq.

2.6 COMPETITORS INFORMATION

The major competitors of the MYMUL are as follows: JSSATE-BANGLORE Page 25

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>Jersey >Dodla >Arogya >Gomatha >Thirumala >Swastika >Loose milk vendors >Heritage JERSEY

*Plant at Andhra Pradesh *Sale in Union Jurisdiction 45 TLPD (Thousands litre per day) (100 TLPD in City) *M.R.P. rate Rs. 20.00 per litres- seller rate Rs. 22 to based on quantity. *Commission ranges from 40-70 per litre (good incentive scheme) *Quality perception-thick and longer shelf life. *Flexible distribution-retailers, wholesalers or anyone willing to sell. *Payments cash and carry or while collecting empty crates on return trip. *Availability mostly retail outlets and now capturing institutional sales by any means. * Vigorous advertisement especially at the point of purchase.

DODLA: * Plant at Nellore. *Availability of raw material at cheaper rate. *Sale in union Jurisdiction 18 TLPD (Thousands litre per day in city) *M.R.P rates Rs. 19 per litre- seller rate 22. *Commission ranges from paisa 40-50 *Quality perception-thick and long shelf life. *Flexible distribution-retailers or anyone willing to sell *Returns will be accepted. *Payment- cash and carry or which collecting empty on return trip. JSSATE-BANGLORE Page 26

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*Channel members are playing critical role in boosting the sales. *Packing is attractive with multicolour pricing on sachets *Consumers perceives that milk is good for making curds.

AROGYA:

*Plant at Bangalore *Sale in union jurisdiction 10 TLPD (Thousands litre per day) (25 TLPD in cities) *MRP Rates Rs. 18.00 per litre. *Commission ranges from 60 paisa per litre. *Availability mostly retail outlets like bakeries. Condiments and departmental stores *Packing is attractive with multicolour printing on sachets. *Concentrating on value added products and not much on milk.

INFRASTRUCTURE FACILITIES:
Infrastructure facilities in MYSORE MILK UNION LIMITED are in this way. 1. MILK PROCUREMENT Milk collection from farmers. Dairy co-operative society. Bulk milk products.

2. TRANSPORTATION; They have procurement group contract vehicles. EG; Milk tanker

3. MILK PROCESSING: Row milk reception dock Cream separators Milk pastures Stored tanks JSSATE-BANGLORE Page 27

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Electronic milk tester and milk scan.

4. PACKING: Milk packing machine Curd packing machine Lassi, masala majjige packing machine Flavored milk packing machine Ghee packing machine

5. ENGINEERING: Reformation equipments Boiler equipment Effluent treatment plants Electronic generation

6.MARKETING: Distribution network Agents Parlors Depots Franchise

7. DISTRIBUTION TRANSPORT: Trunks Auto Mobile van

Following is the general information of MYSORE MILK UNION LIMITED plant in Mysore:
Area of the Dairy : 45 acres Page 28

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Handling capacity Estimated cost of Building Number of employee : : : 2, 74,000 LPD 2.89 crores 380

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ACHIEVEMENT /AWARD:
80 Nandini sales and distribution camps have been arranges. 5850 cattle have been purchased for milk producers under different schemes to the government. Producers are being paid their amount every week without delay. Cost reduction has been purchased for minimizing the electricity and oil. 24 hours service has been provided at the main entrains of the dairy. ISO9001-2000 has certified it. MYSORE MILK UNION LIMITED bags the prestigious National Energy Conservation Awards 2005 Mr. A. S. Premnath Managing Directors MYSORE MILK UNION LIMITED received the award from his Excellency president of India on 14TH December 2000. MYSORE MILK UNION LIMITED has got two awards: they are 1. ISO 2001-2000 2. National Energy Conservation award from president of India in 2005.

ENERGY CONSERVATION ACHIEVMENT: during 02-05, Mysore dairy has implemented Energy saving projects through engineers, initiatives, sub section team suggestion and innovative ideas by officers and has achieved savings of RS.28.2 lakh with a resulting in 14.37% reduction in specific electrical energy consumption and 17.58 % in specific thermal energy consumption.

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J)WORK FLOW MODEL Primary Milk Producers
: Milking Villages dairy co-op. society

Transportation

Dairy/Chilling centers

Security check

Milk reception dock

Quality check of incoming milk . Good milk received

Quality check (fat SNF)

Chilling milk

Processing Production section Packing section

Dispatch through transport vehicle

Security check, Agents and consumers

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FUTURE GROWTH AND PROSPECTS:
1.Milk procurement enhance activities like introduction of new societies formation of BMCs (bulk milk coolers) providing, training on various production enhancement activities, clean milk production, good animal husbandry.

Marketing: Allotting more agencies opening new parlors and depot, conducting various comparative like children drawing Competition, then arranging dairy visits for school, college children consumers and farmers.

Dairy plant: Expansion of processing capacity, installation of new equipment, making processing and packing facilities at chilling centers.

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Mckensys 7 Frame work theory applied to K.M.F.
INTRODUCTION: The 7-s model is better known as McKenzie 7s. This was developed by Tom Peters and Robert Waterman who had been consultants at the firm McKenzie. They published their 7-S model in their article structure Is Not Organization (1980) and in their books The Art of Japanese Management91981) and In Search of Excellence (1982). Just as the 7wonders of the world serve as the mirror to worlds beauty, so does these 7elements constitute the entire company as a whole. The model starts on the premise that an organization is not a Structure but consists of seven elements namely: 1. STRUCTURE 2. SYSTEM 3. STRATEGY 4. SKILLS 5. STYLE 6. STAFF 7. SHARED VALUE

These seven elements are distinguished as, so called, hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and documentation.

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The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values, and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore, it is much more difficult to plan or to influence the characteristics of the soft elements.

DESCRIPTION THE HARD Ss Strategy: Actions of company plans in response to or anticipation of changes in its

external environment. Structure:Basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity. System: Formal and Informal procedures that support the strategy and structure. THE SOFT Ss Style/culture: the culture of organization consists of two components: 1. Organization culture: the dominant values and beliefs, and norms, which develop features of organizational life. 2. Management style: Fundamental responsibility of managers. Staff:Human Resource Management-processes used to develop managers, ways of basic values of management cadre and ways of introducing young recruits to the company. Skills: The distinctive competencies and ways of expanding or shifting competencies. Shared Value:Guiding concepts, fundamental ideas around which a business is builtmust be simple, have great meaning inside the organization even though outsiders may not see or understand them.

1. STRUCTURE: A structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational charts. An organizations structure can be deemed as the skeleton of the whole concern. A clearly defined or designed organizational structure goes a long way in shaping the hierarchy, authority-responsibility relationships between the personnel of the concern. JSSATE-BANGLORE Page 34

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Organizational structure in MYSORE MILK UNION LIMITED can be viewed as having an established pattern of relationship among the components of the organization. The organizational structure in MYSORE MILK UNION LIMITED is well planned. The function and objective of the organization are brought to the notice of the employees. The authority and responsibility are properly assigned and therefore the rest is carried on smoothly.

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Organization Chart:
Board of Directors

President

Managing Director

Administr ative Officer

Finance manager

Manager Dairy

Marketing manager

Manager Procurem ent

MIS manager

Deputy Plant mgr

Deputy Mgr Quality

Distribution Wing

Development

wing

Deputy Mgr Procurement

Deputy Mgr Input

Employee

Employee

Employee

Employee

Employee

Employee

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2. SKILLS:

Definition: A skill is the ability, knowledge, understanding and judgement to accomplish a task. Skills may be defined as what the company does best; the distinctive capacities and competencies that reside in the organization. It can be deemed as the lubricant which keeps the wheels of the organization running. The skills expected from employees may vary according to the job. There is certainly a sea level of difference between the skills of an employee at the milk reception desk and the deputy manager at any of the departments. For recruiting and selecting the manpower required by the production department the criteria would be, B.Tech (Dairy Technology) and Bachelor of engineering(B.E) for maintenance of boilers who have the capabilities and competencies to handle the functioning of work smoothly.

3. STYLE:
Definition: Style is the leadership approach of top management and the organizations overall operating approach. It is also the way in which the organizations employees present themselves to the outside world, to suppliers and customers. Style expresses the nature of an organization. It is the face of organization and its functioning. Style of leadership or relationship is the manner in which an individual is given importance to his or her talents, values, knowledge, judgment and attitude to lead and relate to others. The organization believes in placing the employees in the right jobs. The organization believes in giving the employees authority and confidence in decision-making. The organization believes in seeing to it that the employees are able to grow to meet both their own needs and the needs of MYSORE MILK UNION LIMITED group.

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MYSORE MILK UNION LIMITED has followed top to bottom or top-down style system. The styles of the organization is said to follow the participative type that is the management cadre follow the participative type of administration. MYSORE MILK UNION LIMITED has a three-tier structure. Three-tire structure depicts the flow of authority in the organization.

THREE TIER STRUCTURE


TOP MANAGEMENT

MIDDLE MANAGEMENT

FUNCTIONAL LEVEL MANAGEMENT

TOP MANAGEMENT-Board

of directors (policy making) Director (implementation of policies)


FUNCTIONAL

MIDDLE MANAGEMENT - Managing LEVEL MANAGEMENT- Workers

(execution of the policy)

4. STRATEGY: Definition: Strategy, in simple terms can be understood as the course of action. It is a plan that an organization formulates to gain a sustainable advantage over the competitors. Strategy is an art of devising and employing a system of activities that mobilizes all resources towards the goal.

A strategy is the determination of the basic long-term goals and objective of an enterprise and the adoption of the course of action and allocation of resources necessary for carrying out these goals. Below mentioned are a few strategies followed at MYMUL:-

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Pricing Strategy: The activity of fixing the price of the product is done by the KMF. It fixes a common price for the products through out the state on obtaining the approval from the government. MYMUL follows only that price to sell its products. Promotional Strategy: The promotional activities done by MYMUL are Wall paintings, advertisement through cable network, awareness programmes and door to door campaign. Customizing the products with respect to their package, quantity and price in tune with the demands. Providing incentives to the retailers who bring required sales during the flush season(20paise) Round the clock availability of the products is ensured through anytime parlors. School children and other students are encouraged to visit the plant to gain an insight into the operations Getting brand recognition through popular modes of advertising (cine star upendra as brand ambassador). .

5.SYSTEM
A system is defined as a process, or a set of processes, that links activities and goals to be achieved. System in simple words is the formal and the informal procedure, including compensation system, management information system, performance management system, and capital allocation system that govern everyday activities. Systems maintained at MYMUL are:

Inventory Control System: o MYMUL maintains the FIFO (first in first out) method to control the inventory in the plant. As MYMUL being a dairy processing industry whose products have a shorter shelf life, it makes no sense to follow LIFO or any other system. o

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Milk Billing System: o MYMUL maintains a weekly milk billing system. It has four cycles in a month. They are from 1-7, 8-15, 16-23 and 24 to the end of the month. Accounting System: o Currently MYMUL is using Tally 7.2 version as the accounting software with VAT

6. STAFF:
Definition: Staffing is nothing but keeping the positions fixed in the structure. Staffs, the people in the organization are treated in two ways. Pay scales, Appraisal systems, Manpower Planning systems etc and at the soft end it refers to morale, attitude of the people towards their work and the company .The top manager does not pay attention for the development of the general staff, but is concentrates more on the development of managers for performing more efficiently.

Classification of staff in MYSORE MILK UNION LIMITED is as follows:


Technical Officers Clerical Officers -------------- Studies dairy technology

Supervisory Officers -------------- Look after the job done by workers -------------- Carry out the paper work

Benefits provided by the MYSORE MILK UNION LIMITED to its employees


Housing facilities for technical officers near the plant Traveling facilities Bonus once in a year. Medical facilities Primary education for the employees children. Canteen facility full meals for Rs 3. Coffee and tea for 60 Ps and Break fast for just 1.20 Rs. Twice the year, ghee is given free for the employees DA for permanent employees as per State Govt. Uniform for employees once in a year JSSATE-BANGLORE Page 40

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Free training programme is conducted Subsidy milk to the workers

At present there are around 380 workers as against the permitted limit of 450 workers, employed on both regular and contract basis.

7. SHARED VALUE: Shared value or super ordinate goals refers to a set of value and aspirations that goes beyond the conventional formal statement of corporate objective. There are the fundamental ideas around which business is built. They are the identity by which a company is known throughout its business area. These values must be explicitly stated as both corporate objectives and individuals values. A shared value is an essential characteristic or attribute promoted by the organization to motivate the behavior of members of the organization. Some of the shared values in MYMUL are: Honesty Discipline 4. Trust 5.Cost effectiveness.

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SOWT ANYSIS

Strengths:
Nandini enjoys good brand image. mysore milk union is one the leading producer of milk products & it has wide area of Market, Nandini is a trusted house hold brand name, more than two lakhs farmer members were supplying milk. It has large procurement system. Huge infrastructure for processing. Competitive prices for all products. Wide distribution network leads to regular and timely supply. It enjoys highest market shares in the packed milk segment. Provides excellent veterinary, vaccination, Extension facilities, Feeds and Fodder seeds supply etc., in the field, which cannot be thought off by any private operator. Hence earned lot of goodwill from member producers, who patronize the union throughout the year. Has earned the distinction of not failing to deliver the milk to market on time throughout the year. There are days with no power supply, no water supply; but there is no day without NANDINI milk supply. MYMUL is giving highly remunerative and timely payment to its producers & this has a good on suppliers and made Union to be in good financial position. ISO 9001-2000 certificate. Good institutional support from KMF, NDDB, by giving financial support and guidance to the MYMUL. MYMUL is equipped with fully automatic systems which ensure total quality maintenance.

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Weaknesses:
Lack of flexibility in deciding about its operation. No authority over issues like pricing, offering volume discounts etc. The president of KMF and the Board of directors MYMUL decides it. Perishable commodity. Milk is Perishable commodity it cannot be store in long. Lack of professional manpower. In MYMUL department heads are not based on qualification. Bureaucratic method of functions. Lacking quality consistency because of seasonal changes in the supply of milk. Less buffalo milk. Because of which customers preferring buffalo milk may get attracted to other brands. Inadequate sales promotional activity. Due to bad smell that persists causes low sales. Some private dairies are selling homogenized milk, which appears rich. The union cannot homogenize all its huge quantity of milk due to lack of homogenizing capacity and increase in processing cost. MYMUL Organizational structure does not permit incentive/ reward for good performance of an employee. MYMUL Company should distribute their product directly to sellers without keeping any middlemen and agents because part of profit is divided between middlemen and agents. About 65-70% of the marketing is done directly the rest of 35-40% is done using middle men.

Opportunities: There is a phenomenal scope for innovation in product development, packing and presentation. Steps to taken to introduce value added products like shrikhands, ice-creams, paneer, khoa, flavored milk, dairy sweets etc. this will lead to a greater presence and flexibility in the market place along with the opportunities in the field of brand building. Yet another aspect can be the addition of infant foods and nutritionals. JSSATE-BANGLORE Page 43

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Increasing market demand for milk and milk products. There is scope for developing in unexplored areas for milk processing as Nandini can extend its equity of brand. Addition of buffalo milk will improve market share. Since the MYSORE district is under Cauvery basin, perennial greens are available to the cattle. This makes the farmers to rare the cattle easily from this MYMUL is getting huge amount of milk. Institutional markets, bakeries, hotels etc., are not fully tapped and these can be captured preferably by direct marketing. Diversification of milk products like Peda, Mysore Pak, cashew burfi, lassie, milk powders, masala majjige. Exploit the Human Face, by positioning in the market as an organization with social responsibilities of serving the milk produced by paying remunerative price and serving customer by offering hygienic quality product at a reasonable price throughout the year. Union is not in the business to maximise the profit as in the case of private dairies and is acting as price stabilizing force in the market. Projecting these to the customers will reinforce the positive image of the organization in customers minds as a caring organization which service to them as its motto. MYMUL is SELLING its products to different states like Tamilnadu, Kerala and Andrapradesh Threats: Increase of competitor's milk vendors in organized sector. Flexibility in commission structure by competitors may attract the distributors. No entry barriers for private players. Low level of consumer awareness in MYSORE and surrounding areas. After liberalization, entry barriers in the dairy industry eased for new entrants. The competition from Co-operatives like Dodla, Heritage, Kamadenu, they producing different milk products which are giving a good competition to the MYMUL, etc. JSSATE-BANGLORE Page 44

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Private dairies procure milk at low cost from producers and sell milk resorting to unethical trade practices. It is a marketing war in which union has to fight by rules and other private dairies do not fight by rules. Hence, there is no level playing field for organization with social responsibilities to compete with organizations with purely profit motive. Plans of major companies like Reliance, ITC to enter into milk market in future.

FINACIAL STATEMENT ANALYSIS

KMF

Balance Sheet

------------------in Rs. Cr. -----------------Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves

11.1

10.77

10.77

11.1

10.77

10.77

0 -7.91

0 -9.25

0 -9.25

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Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

0 3.19 0 1.29 1.29

0 1.52 2.09 0.65 2.74

0 1.52 3 0 3

4.48 Mar '12

4.26 Mar '11

4.52 Mar '10

12 mths

12 mths

12 mths

Application Of Funds Gross Block 0.1 0.07 0.07

Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance

0.04 0.06

0 0.07

0 0.07

0 0.87 0 1.08

0 0 0 1.19

0 0 0 1.19

0.02

0.24

0.1

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Total Current Assets

1.1

1.43

1.29

Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions

2.95 0

2.8 0

3.17 0

4.05 0

4.23 0

4.46 0

0.49 0.01

0.02 0.02

0 0.02

Total CL & Provisions Net Current Assets

0.5

0.04

0.02

3.55

4.19

4.44

Miscellaneous Expenses Total Assets

0 4.48

0 4.26

0 4.51

Contingent Liabilities Book Value (Rs)

0.16

0.16

2.87

1.37

1.37

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THEORITICAL BACKGROUND

Customer satisfaction
The current global business environment is extremely competitive. Todays consumers are more than willing to switch from supplier to supplier in search of better service or courtesy, or better product availability features or for any other variety of reasons. To attract and retain customers, effective organization need to focus on determining and then providing what there customer wants and values. Advertisement market positioning, product/service imaging, discounting, crisis handling, and others methods of attaching the customer attention are not enough. Understanding the customers needs and expectation is essential to winning new business and keeping existing business. An organization must give its customer a quality product or service that meets their needs at a reasonable price. Which includes on time delivery and outstanding service? To attain this level, the organization needs to continually examine their quality system to see if it is responsive to ever changing customer requirements and expectation.

DEFINITIONS OF CUSTOMER SATISFACTION Philip kotler defines customer satisfaction as follows: Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation Brown defines customer satisfaction as the state in which customer needs. wants and expectation throughout the product or service life are met or exceeded resulting in repeat purchase, loyalty and favorable word of mouth

Customer satisfaction is a difficult concept to define. However, the following ideas are usually considered to be fundamental in achieving customer satisfaction. The product or service must meet customer needs, wants and expectation for quality and functionality. It doesnt matter how much advertisement is done or after sales support

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provided. A shoddy product that doesnt work or falls apart will disappoint. Service delivered by an unenthusiastic, moody employee will leave the customer feeling let down. Sales and promotional activities need to create a positive experience for the customer. For example, the attitudes of employee who make contact with customer should be positive and professional. After sales service should also be positive and appropriate (e.g. user training, help lines, servicing). Customer often needs reassurance after they have bought something that they have made the right choice, or help in using a product properly.

Customer satisfaction seems simple enough, and yet it is far from simple. Customer satisfaction is not an objective statistic but more of a feeling or attitude although certain statistical pattern can be developed to represent customer satisfaction, it is best to remember that peoples opinion and attitudes are subjective by nature.

Because customer satisfaction is subjective, it is hard to measure. There are so many facts to a customers experience with a product and service that need to be measured individually to get an accurate total picture of customer satisfaction. Whether or not a customer is satisfied cannot be closed as a yes or no answer. Errors can occur when customer satisfaction is simplified too much.

Since customer satisfaction is hard to measure, the measurement often is not precise. As with most attitudes, there is variability among people, and often within the same person at different times. Often due to the difficult of measuring feelings, customer satisfaction strategies are developed around clearly stated, logically customer opinions, and the emotional issues of a purchase are disregarded, this can be a costly mistake.

Customer satisfaction should not be viewed in a vacuum, for example, a customer may be satisfied with a product or service and therefore rate the product or service. highly in a survey. And yet that same customer may buy another product or service. It is of little benefit to understand a customer views about a product service. It is of little benefit to understand a customer views about a product service if the customers views about competitors product or service are not understood. The value customer place on one product compared to another may be a indicator of customer

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loyalty. Customer loyalty can be sustained only by maintaining a favorable comparison when compared with competitors.

DELIVERING CUSTOMER VALUE AND SATISFACTION Given the importance of customer value and satisfaction what does it take to produce and deliver it? To answer this, we need to introduce the concepts of value chain and value delivery systems.

Customer satisfaction is the level of persons felt state resulting from comparing a products perceived performance (or outcome) in relation to the persons expectations. Thus the satisfaction level is a function of the difference between perceived performance and expectations. If the performance exceeds expectations, the customer is delighted. Customers who are just satisfied will find it easy to switch suppliers when a better comes along. On the other hand, customers who are delight are much less ready to switch as delight creates an emotional affinity with the brand and just rational preference, and this creates high customer loyalty.

After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction. The marketers job does not end when the product is bought. Marketers must monitor customer satisfaction What determines whether the buyer will be highly satisfied, somewhat satisfied, or dissatisfied with a purchase? The buyers satisfaction is a function of the closeness between the buyers expectation and the product perceived performance. If performance falls short of expectations, the customer is disappointed, if it meets the expectation, the customer is satisfied; if it exceeds expectations, the customer is delighted. These feelings make a difference in whether the customer buys the product again and talks favorably or unfavorably about the product to others. Consumers from their expectation on the basis of message received from sellers, friends and other information sources. The greater the gap between expectation and performance the greater the consumers dissatisfaction. Here the consumers coping style comes into play some consumers magnify the gap When the product is not perfect and they are highly dissatisfied. Other consumers minimize the gap and are less dissatisfied. JSSATE-BANGLORE Page 50

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The importance of post-purchase satisfaction suggests that product claims must truthfully represent the products likely performance. Some sellers might even understate performance level so that consumer experience higher than expected satisfaction with the product The consumers satisfaction or dissatisfaction with the product will influence subsequent behavior. If the consumer is satisfied, he or she will exhibit a higher probability of purchasing the product again. The satisfied customers will also tend to say good things about the brand to others.

IMPORTANT OF CUSTOMER SATISFACTION

The modern business environment is characterized by increasing competition and therefore increasing customer choice due to the trends such as: Greater freedom of international trade and globalization makers Are no longer the preserves of local or national companies who can afford to be complacent about their customers E - Commerce and interest marking- business can reach customer around the world every minute of the day. Increasingly customer confidence in complaining. De-regulation of market (i.e, allowing new entrants to markets previously run by monopolies).

Here are some principles given by Steve smith.


The goal is to exceed customer expectation. The more the employee satisfaction, the more the customer satisfaction. Customer satisfaction is necessary, but not sufficient how many times do satisfied customer switch brands? Answer, a lot. All initiative must be derived from defined problems. For instance, dissatisfied customers dont buy. Thats an example of a clear problem. Initiative must produce either measurable or conceptual benefits. Distinguish between the two benefits types.

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Rather than blanket initiatives for everyone, outline initiatives for each level of management. Keep expectations in line with the managers span of control. Distinguish between goals and objectives. The plan must be resonate with the VP and at least a minority of managers who agree with the objective and initiative. The plan must be clear and congruent The following items amplify customer satisfaction given by Steve smith Quality of a companys product and services. Quality of the relationship between the co agent the customer. Responsiveness Thoroughness Creativity Demonstrations of the companys value to someone whose opinion counts.

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2.1 ANALYSIS AND INTERPRETATION Table No.4.3 Showing the distribution of respondents, according to Gender Gender Male Female Total
42 58 100

No of Respondents
42 58 100

Percentage

NO OF RESPONDENT PARTICIPATED IN SURVEY


60 50 40 30 20 10 0
Male Female

INTERPRETATION From the above table indicates that 42% male respondents and 58% female respondents are involved in survey.

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1.How did you know about Nandini products?

PRODUCTS

No OF RESPONDENTS

PERCENTAGE

Advertisements
22 Recommended by family 45 Company promotional schemes Agents 20 20 13 13 45 22

50 45 40 35 30 25 20 15 10 5 0 No OF RESPONDENTS
INTERPRETATION

Advertisements

Recommended by family

Company promotional schemes

Agents

From the above table 9% of the respondents are 13% of the aware of nandini milk and milk and products through company promotion, 22% advertisements, 45% through family, 20% agents.

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2) Which Nandini milk products are you presently using? No OF RESPONDENTS Milk Peda Masala majjige Ghee 62 15 11 12 PERCENTAGE 62 15 11 12

No OF RESPONDENTS
70 60 50 40 30 20 10 0 Milk Peda Masala majjige Ghee No OF RESPONDENTS

INTERPRETATION From the above table 62% of respondents are using milk, 15% are using peda, 11% are using masala majjige, 12% are using ghee.

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3) Since how many years you have been the customer of Nandini?

No OF YEARS 1 YEAR 3 YEARS 5 YEARS 8 YEARS

No OF RESPONDENTS 9 22 38 31

PERCENTAGE 9 22 38 31

No OF RESPONDENTS
40 35 30 25 20 15 10 5 0 1 YEAR 3 YEARS 5 YEARS 8 YEARS No OF RESPONDENTS

INTERPRETATION From the above table 9% of the respondents are using from 1 year, 22% of the respondents are using from 3 years, 38% of respondents are using from 5 years, 31% of respondents are using more than 8 years,

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4) Which type of Nandini milk you are using?

TYPES OF MILKS

NUMBER OF RESPONDENTS

PERCENTAGE

Standardized milk Toned milk Samurudhi milk Homogenized milk Good life milk

19 42 11 20 8

19 42 11 20 8

50 40 30 20 10 0
NUMBER OF RESPONDENTS
Standardized milk Toned milk Samurudhi milk Homogenized milk Good life milk

INTERPRETATION From the above table, 19% of the respondents are using standardized milk, 42% are using toned milk, 11% are using samurudhi milk, 20% are using homogeneous milk, and remaining 8% of the respondents are using full cream Good life milk.

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5) How do you feel about the taste of Nandini milk products?

SATISIFACTION LEVELS ON TASTE Excellent Very good Good Average

NUMBER OF RESPONDENTS 18 26 52 4

PERCENTAGE

18 26 52 4

60 50 40 30 20 10 0 NUMBER OF RESPONDENTS

Excellent Very good Good Average

INTERPRETATION From the above table, according to the satisfaction level, 52% of the respondents were satisfied with Nandini milk and milk products and dissatisfaction level is 2% only.

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6) Why do you prefer Nandini products?

Comparison with other Products Taste Price Quality Hygiene packaging No OF RESPONDENTS 24 28 38 10 PERCENTAGE 24 28 38 10

40

35
30 25 20 15 10 5 0 No OF RESPONDENTS
Taste Price Quality Hygiene packaging

INTERPRETATION From the above table it is clear that 24% of the respondents consider taste, 38% quality to purchase Nandini products against other brand, 28% were consider price and remaining 10% of people prefer to hygiene packing services.

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7) How do you perceive about the quality of Nandini milk products?

SATISIFACTION LEVELS IN QUALITY Excellent Very good Good Average

NUMBER OF RESPONDENTS 22 19 48 11

PERCENTAGE

22 19 48 11

50 45 40 35 30 25 20 15 10 5 0 NUMBER OF RESPONDENTS

Excellent Very good Good Average

INTERPRETATION From the above table it is clear that level of quality 22% are felt excellent, 19% are felt very good, 48% are felt good, only 11% are felt average.

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8) What do you think about the pricing policy of the Nandini milk products?

RESPONSE ON MILK PRICING Expensive Moderate Reasonable low cost 40 35 30 25 20 15 10 5

NUMBER OF RESPONDENTS 22 38 36 4 22 38 36 4

PERCENTAGE

Expensive Moderate Reasonable low cost

0
NUMBER OF RESPONDENTS

INTERPRETATION From the above tableresponses of consumer on price policy 22% feel expensive, 38% are feel moderate, 36% are reasonable and low cost feel are 4%.

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9) HOW do you feel about the packaging of Nandini milk products?

SATISIFACTION LEVELS IN PACKAGINIG Excellent Very good Good Satisfactory

NUMBER OF RESPONDENTS 18 26 42 14

PERCENTAGE

18 26 42 14

45 40 35 30 25 20 15 10 5 0 NUMBER OF RESPONDENTS
Excellent Very good Good Satisfactory

INTERPRETATION From the above table it express It clear that, 18% are response packaging of milk is excellent, 26% are think very good, 42% are feel good and 14% are satisfied with packages.

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10) Do you feel the packaging of Nandini milk products is attractive?

Package appearance Yes No

No OF RESPONSE 56 44

PERCENTAGE 56 44

60 50 40 30 20 10 0 No OF RESPONSE
Yes No

INTERPRETATION From the above table and graph it is clear that 56% of respondents are influenced by outer appearance of the product while remaining 44% are not influenced.

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11) Which of the following Nandini milk products do you prefer?

Preferences Curd Lassie Badam powder Peda Masala majjige Ghee Mysore pak 27 7 9 17 18 10 12

No OF RESPONSE 27 7 9 17 18 10 12

PERCENTAGE

Curd

30 25 20 15 10

Lassie

Badam powder

Peda

Masala majjige

5 0 No OF RESPONSE
Mysore pak Ghee

INTERPRETATION From the above table clears 17% of the consumer purchase peda and 27% of curd while masala majjige is 18% &12% of Mysore pak, 9% of badam powder, 7% lassie is the least preferred product. JSSATE-BANGLORE Page 64

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12) Are you satisfied with Nandini milk products? Discounts and other schemes Yes No No OF RESPONDENTS 82 18 PERCENTAGE 82 18

100 80 60 40 20 0 No OF RESPONDENTS
Yes No

INTERPRETATION From the above table 82% are satisfied with Nandini milk products and other 18% are still not satisfied.

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13) Which other brands do you prefer?

Other brands Jersey Arogya Thirumala Other

No OF RESPONDENTS 42 15 10 33 42 15 10 33

PERCENTAGE

45 40 35 30 25 20 15 10 5 0 No OF RESPONDENTS

Jersey Arogya Thirumala Other

INTERPRETATION Above table show the, if other than Nandini 42% jersey, 15% arokya, 10% Thirumala and remaining 33% others.

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Customer satisfaction on KMF 2.2 SUMMARY OF FINDINGS:FINDINGS: In this survey being undertaken, 58% respondents are female while remaining 42% of them are male. Majority of them are customer of Nandini since 82% of consumers satisfied with Nandini products due to the taste, fresh.

1. It indicates 13% of the aware of nandini milk and milk and products through company promotion, 22% advertisements, 45% through family, 20% agents. 2. It indicates 62% of respondents are using milk, 15% are using peda, 11% are using masala majjige, 12% are using ghee. 3. It indicates 9% of the respondents are using from 1 year, 22% of the respondents are using from 3 years,38% of respondents are using from 5 years, 31% of respondents are using more than 8 years, 4. It indicates 19% of the respondents are using standardized milk, 42% are using toned milk, 11% are using sammrudi milk, 20% are using homogeneous milk, and remaining 8% of the respondents are using good life milk. 5. It shows satisfaction level of taste 18% are felt excellent, 26% are felt very good, 52% are felt good, only 4% are felt average. 6. In this regard it is possible to infer that 24% of consumers purchase the product based on taste. 10% Hygiene packaging. 28% price. 38% quality. 7. It shows satisfaction level of quality 22% are felt excellent, 19% are felt very good, 48% are felt good, only 11% are felt average. 8. As per responses of consumer on price policy 22% feel expensive, 38% are feel moderate, 36% are reasonable and low cost feel are 4%. 9. It clear that, 18% are response packaging of milk is excellent, 26% are think very good, 42% are feel good and 14% are satisfied with packages. 10. It is clear that 56% of respondents are influenced by outer appearance of the product while remaining 44% are not influenced. 11. From the above table 17% of the consumer purchase peda and 27% of curd while masala majjige is 18% &12% of Mysore pak, 9% of badam powder, 7% lassie is the least preferred product. JSSATE-BANGLORE Page 67

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12. According to survey 82% of people are satisfied with Nandini products and remaining 18% are not satisfied. 13. As per the response received the consumer prefers other than Nandini that 42% jersey, 15% arokya, 10% Thirumala and remaining 33% others.

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CONCLUSION AND RECOMMENDATIONS:-

SUGGESTION AND RECOMMENDATION:

1. As per survey being made popularized of Nandini products is more than compared to other existing in order to survive in the market aggressive advertising has to be undertaken. 2. Nandini sweet products like peda, mysorepak can be promoted in school by undertaking special campaign. 3. Special offer may be provided to dealer and retailer in order to motivate to them sale more. 4. Can open special counter inside supermarkets like Bigbazer, Loyal world, more. 5. Can open new parlors due to increase availability. 6. Give more offers and discount to attract the customer. 7. Modification in advertisement department. 8. Increasing the quality of the product.

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CONCLUSIONS:

Nandini brand has a good image in the market. Majority of the consumer are using Nandini milk. Nandini milk products available on time to the customer for daily use. In the market best quality milk is Nandini. Nandini brand is having good position in the market. Customers have good opinion about Nandini milk products hence. Customer satisfaction towards Nandini milk products holds good. Majority of respondents have seen Nandini milk advertisement in television. Advertising plays a major role in creating a brand image and it helps in increasing the sales. Majority of respondents are loyal to Nandini products through number of other brand are available in the market.

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QUESTIONNAIRE
Dear sir/ madam As a part of MBA curriculum, a survey on the K.M.F. Nandini product has been undertaken to understand the profit of customer satisfactory. NANDISH.H.N of Final year MBA student from the College of JSS ACADEMY OF TECHNICAL EDUCATION,BANGLORE (Marketing) request you to co-operate in responding in this questionnaire. The information collected will be confidential and used for the academic purpose only. Please fill this questionnaire, which, will be helpful for my project work. Name Address Age Number of household Qualification Occupation Monthly income : : : : : : :

1) How did you know about Nandini products? a) Advertisements ( ) c) Company promotional schemes ( )

b) Recommended by family ( d) Agents ( )

2) Which Nandini milk products are you presently using? a) Milk ( ) b) Peda ( ) c)Masala majjige ( d) Ghee ( ) e) Other ( ) 3) Have you heard and used Nandini brand of milk products?

JSSATE-BANGLORE

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Customer satisfaction on KMF


a) If yes, since how long you are using Nandini products? a) 1year ( ) b) 3 years ( ) d) 8 years ( )

c) 5 years ( )

b) If no, what is the reason for not using Nandini brand? a) Never heard of Nandini ( ) c) Irregular supply ( ) b) Poor quality ( ) )

d) Not available at right price (

4) Which type of Nandini milk you are using? a) Standardized milk ( ) c) Samurudhi milk ( ) e) Good life milk ( ) b)Toned milk ( ) d) Homogenized milk ( )

5) HOW do you feel about the taste of Nandini milk products? a) Excellent ( ) c) Good ( ) b) Very good ( ) d) Average ( )

6) Why do you prefer Nandini products? a) Taste ( ) c) Price ( ) b) Hygiene packaging ( ) d) Quality ( )

7) HOW do you perceive about the quality of Nandini milk products?) a) Excellent ( ) c) Good ( ) b) Very good ( ) d) Average ( )

8) What do you think about the pricing policy of the Nandini milk products? a) Expensive ( ) c) Reasonable ( ) b) moderate ( ) d) low cost ( )

9) HOW do you feel about the packaging of Nandini milk products? pa) Excellent ( c) Good ( ) JSSATE-BANGLORE ) b) Very good ( ) d) Satisfactory ( ) Page 72

Customer satisfaction on KMF


10) Do you feel the packaging of Nandini milk products is attractive? a) Yes ( ) b) No ( )

11) Which of the following Nandini milk products do you prefer? a) Curd ( ) b) Peda ( ) e) Lassie ( ) f) Flavoured milk ( ) g) Mysorepak ( ) h) Badam powder ( )

c) Masala majjige ( ) d) Ghee ( )

12) Are you satisfied with Nandini milk products? a) YES ( ) 13) Which other brands do you prefer? a)Jersey ( ) c) Thirumala ( Any Suggestions ............................................................................................................................... ............................................................................................................................... Thank you ) b)Arogya ( ) d) Other ( ) b) NO ( )

Date of interview ...........................

Signature

..................................

JSSATE-BANGLORE

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BIBLIOGRAPHY:
PHILIP KOTLER Marketing Management Asoke.K. Ghosh , prentice Hall of India Pvt Ltd 11th Edition , 2004 Dr.C.B.Gupta , Dr.N.Ranjan Nair Marketing Management sultan chand and sons , 6th Edition 2001 Nayar Marketing Management S Chand and company limited 1981 New Delhi. P.S.V. Rao Marketing Concept Knonork Publication Private Limited 1987 New Delhi.

Websites
http://www.nandinimilk.com http://www.dairyindia.com

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