An Exploratory Study On Competitive Milk Brands With Reference To Pathanamthitta District

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INTRODUCTION

This project is being carried out as a part of the academic curriculum, Master of Commerce, under Mahatma Gandhi University. This work is submitted in partial fulfillment of the requirements for the award of the degree of Master of Commerce. As per the curriculum the final project work should be a specialization in any one of the areas viz Finance and Human Resource Management. A report based on the project done is to be submitted and this is treated as a course carrying marks. The organization selected by me is MILMA, PATHANAMTHITTA. The period of study is for __ days, from ___ __th to ____ __th. Survival of the fittest as in the case of war had ever been the trend that ruled the markets. To be the fittest in the Market, being the aim of each and every company, competition becomes inevitable and unavoidable part of every business. Privatizations and Globalization being the slogan of the day, companies cannot survive by simply doing a good job. They must do an excellent job if they are to succeed in the increasingly competitive global market place. With the recent liberalization of economy and the globalization of markets, the business atmosphere in India has gone through a sea change. Restapism and beurocracy which has been the ban of our country, has now vanished from the scene.

RELEVANCE OF PRESENT RESEARCH


Though Milma have been in the milk market for a quite long time, it does not know is detail about the other milk brands in Pathanamthitta dairy. This marketing research tries to highlights the threats and the position of the other milk brands. Though the Milma is in a strong position compared to the other milk brands it is useful to Milma, to know about details of the other milk brands for improving its provision. The stringent competition in the milk market urged the organization for an independent view of the market and compels them to find out why people prefer other brands, and how can they be made loyal customers of Milma.

INDUSTRY PROFILE DAIRY INDUSTRY


The dairy industry is recognized as one of the largest and most important of food industries. The dairy industry exists for one purpose to provide, at a reasonable cost, milk and milk products that satisfy the consumers needs and fulfills his nutritional requirements. The industry means different things to the different participant- the producers, the dairy handlers and consumers. The word Dairy was derived from the Middle English word, deirie meaning day or maid servant worked. Dairy now connotes a wide range of activities starting with the production of milk in the farm to the point it reaches the consumer in the form of liquid together by a diverse field of disciplines such as dairy science, animal husbandry, crop husbandry, and dairy engineering. Management science is applicable in each of these

disciplines and integrates them, to achieve the objective of providing milk to the consumer by making an optimum use of Earths renewable resources for production of milk. The importance of dairying stems from the role of milk in human nutrition. Food serves two major functions in human nutrition, to provide energy and to furnish the elements essential for growth and replacement of body tissues. All the three main forms of foodcarbo-hydrates, fats and proteins provide the energy, but only proteins can supply nitrogen and amino-acids essential for growth and replacement of tissues. In planning for human nutrition, there are two possible stages the first has a limited objective of holding back hunger while the second is achieved by providing a balanced diet which includes a certain quantity of animal protein to include the essential amino-acids in the diet. The developed countries have achieved the second stage. The developed countries need to plan their agriculture for providing adequate balanced nutrition from the available resources with in the country. The relevance of the dairy industry, at this stage of planning for food, is in promoting supply of balanced diet to the population. In terms of biological value human nutrition egg protein is the most important, followed by the protein from milk. Egg or milk protein can furnish all the amino-acids essential for normal growth and healthy life processes, provided that they are consumed in adequate amounts. Fish, meat and poultry products are also high in the scale of biological value. Vegetable protein from wheat, maize, rice, beans and nuts are of low biological value,

particularly when it represents the only source of protein. The essential amino-acids are not provided in sufficient quantities. In many of the developing countries, more so in India, milk may form the only source of animal protein. One quart (approximately on litre) of milk furnishes approximately all the fat, calcium, phosphorus and riboflavin; half the protein; one third of the vitamin A, acetic acid and thiamin; one fourth the calories and with the expectation of iron, copper, magnesium and manganese, all the minerals needed daily considerable amounts of nicotinic and choline are also provided. Milk is the secretion of mammary glands, produced primarily for feeding the young. All mammals produce milk. However, milk is obtained for commercial consumption purposes from domestic animals, particularly the cow. The milk of different species essentially contains the same constituents. The composition may, however vary from species to species in minor proposition. The

variation in milk composition is likely to occur within the species due to a number of factors like breed, age, stage of lactation, individual variation, seasonal variation, variation from lactation to lactation, interval between milking, first and last milk, fitness of the animal and feed provided to the animal. Milk and cream are the main products of dairying. The other products are derived from these principle products. The industry faced with some general characteristics peculiar to dairying. The production of milk is seasonal mainly because of the nature and purpose of milk production. Milk is produced for the young calf and is, therefore, depended on the calving season. However, the demand for milk and milk products remain the same throughout the year. Milk is bulky and highly perishable. The milk handlers, therefore, have to process the milk and store it under refrigeration or reduce the bulk by drying before storage. Agriculture and allied industries account for nearly half the gross national income of India, one fourth of which is from dairy. The national economy of certain European countries like Denmark and Sweden are depended almost entirely on animal husbandry of which dairying is a major industry. In the US, dairy industry alone contributes to one fifth of the total agricultural income. Moreover, the consumer spends a fifth of his food expenses on milk and milk and milk products. Apart from the contribution, dairing needs to the economy and nutritional status of any country, the industry provides employments to thousands of people. In the US, over a quarter million people were employed by the diary industry in 2000. In the tropics, where dairying is less developed, millions earn there income either partly or wholly from the dairy industry.

DAIRY INDUSTRY IN INDIA


In India, dairying has been practiced as a rural cottage industry since the remote past. Semi-commercial dairying started with the establishment of military dairy farms and cooperative milk unions throughout the country towards the end of the nineteenth century. During the earlier years, each household in those countries maintained its family cow or secured milk from its neighbor who supplied those living close by. As the urban population increased, fewer households could keep a cow for private use. The high cost of milk production, problems of sanitation etc., restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers within easy driving distance began delivering milk over regular routes in the cities. This was the beginning of the fluid milk-sheds which surround the large cities of today. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. The industry is still in its infancy and barely 10% of our total milk production under goes organized handling.

HISTORY OF INDIAN MARKET MILK INDUSTRY


Beginning in organized milk handling was made in India with the establishment of Military Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the country on a small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945 Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963). Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk.

DAIRY INDUSTRY IN KERALA


Milk is an unavoidable element in the life of Keralites. In olden days, Kerala was far ahead in production of milk. But due to several reasons the production of milk is defined. Milk producers in Kerala are in the grip of a major crisis following the flow of large quantity of milk from outside the State at lower prices. According to a survey, the state produces 20.61 lakhs tons of milk per annum. The production, according to market sources, is insufficient to meet the demand of the states population. As a result, Kerala has become a major market for milk produced in neighboring States. Supplies from Tamil Nadu meet around 60% of the daily demand milk. Rapid increase in milk processing and marketing companies has resulted in tough competition leading to cut in prices. Thus, availability of milk at low prices from other States has created a crisis for the milk producers in the State farmers said. A dairy expert told Business Line that the only solution to the crisis was production of good and pure milk by which the Kerala milk producers could compete and recapture the market Dairy Development Board was created in 1962. The livestock Development and Milk Marketing Board for milk procurement and marketing was set up, followed by the Kerala Co-operative Milk Marketing Federation. But all these have failed to save the dairy sector and the farmers. One of the major problems being encountered is the non-availability of modern facilities to process and stock the entire milk produced during the peak season (in the rainy months). As a result, during these months, not only are restriction imposed on the quantity procured but there is a cut in the prices by the co-operatives. The State has over 2,972 milk marketing their functioning unfavourable to the development of the sector. When the

societies run by NGOs procure milk at Rs.1o per litre from the farmers by providing subsidy for cattle feeds, in Kerala they were being discouraged with taxes. Kerala requires 68.5 lakh tons of cattle fodder, of which they only 40 tons are available within the State. Nonavailability of land and improved variety of fodder grass has become major impediments.

COMPANY PROFILE
"Milma" is the popular name given to Kerala Co-operative Milk Marketing Federation (KCMMF). Milma started its operation in 1980 with its head office at Pathanamthitta. It was started under the Indo-Swiss project. The project was launched in 1963 on the basis of a bilateral agreement executed between the Swiss Confederation and the Government of India. The project has made great strides in the improvement of livestock farming in the state. One of them is the development of Swiss Brown, a cross breed suited for the state's conditions. The project is now managed by the Kerala Livestock Development and Milk Marketing Board. It main motive was to implement the Operation Flood programme started by the National Dairy Development Board (NDDB) in Kerala. The project impact was so widespread that close to about 83 % of the adult cattle of the state got converted to the new breed Sunandini-, the milk production increased by over ten times and the per capita availability of milk increased by over 7 times with over a million families dependant on milk production. The project has succeeded in integrating better technology and management to the traditional small holder production system. It also demonstrated how the high productive, semi stall fed cows led to a spontaneous decline in the total bovine population of the state from 34.6 lakh in 1977 to 21.86 lakh in 2003 when the total bovine population of India went through an upsurge. This contributed immensely to environmental sustainability. By demonstrating a growth model for productivity enhancement, the project not only impacted the million small livestock holders in Kerala, but also millions outside the state. The project demonstrated revolutionary institutional changes beginning with the Indo Swiss project of Kerala, an autonomous institution under the govt. of Kerala to the Livestock Development and Milk Marketing Board and then to the present autonomous company - the Kerala Livestock Development Board, with the formidable dairy cooperative system under the Kerala Cooperative Milk Marketing Federation (MILMA), under the able guidance of its first managing director S. Nagarajan IAS, spun off as successful an independent entity.

The name milma represents:

2,702 primary milk co-operative societies. 7.78 lakhs farmer members. Three Regional Co-operative Milk Producers' Union. Eleven Dairies capable of handling 9.90 lakhs litres of milk per day. Thirteen Milk Chilling Centers. Two Cattle Feed Plants with cumulative capacity of 600MT per day. One Milk Powder Plant of 10MT per day capacity. A well established Training Centre. 5,200 retail outlets. Over 32,000 people working either directly or indirectly for the functioning of milma.

Apart from these we serve millions of consumers day-in and day-out.

MISSION
Farmers prosperity through consumer satisfaction

OBJECTIVES

To channelize marketable surplus milk from the rural areas to urban deficit areas to maximize the returns to the producer and provide quality milk and milk products to the consumers.

To carryout activities for promoting Production, Procurement, Processing and Marketing of milk and milk products for economic development of the farming community.

To build up a viable dairy industry in the State. To provide constant market and stable price to the dairy farmers for their produce.

NETWORK
The Motto of Co-operation of "of the people, by the people and for the people" is the foundation of the "three tier system" followed by the organization. At the village level we have the Village Milk Co-operative Societies which have the local milk producers as its members. These Village Co-operatives unite at the Regional level and form Regional Co-

operative Milk Producers' Unions. These Unions are federated at the State level to form State Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF).

ASSOCIATES
Milma is in constant touch with other organizations in this sector. It is only through this active exchange that milma grew from a small dairy co-operative to the position it holds in Kerala today. The Companys Chief Associates are: NATIONAL DAIRY DEVELOPMENT BOARD (NDDB): NDDB, under Dr.V.Kuriens guidance set up KCMMF in 1980. Ever since then, there has been a very close co-operation between NDDB and the Federation. NDDB are the originators of the Operation Flood Programme and have been our funding agent for the Operation Flood Projects in Kerala. AMUL: The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a vast network of dairy co-operatives in Kerala. Among the cooperatives in Gujarat, the Kaira District Co-operative Milk Producers Union (AMUL) is the fist in this sector. Our Co-operatives are called Anand Pattern Co-operative Societies following the illustrious lineage of AMUL.

GOVERNMENT OF KERALA: The phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved, without the foundation of animal husbandry activities, led by the Animal Husbandry Department, Dairy Development Department and Kerala Livestock Development Board, of the Government of Kerala.

KERALA COOPERATIVE MILK MARKETING FEDERATION FOLLOWS A THREE TIER SYSTEM

KERALA CO-OPERATIVE MILK MAREKTING FEDERATION

THIRUVANANTHAPURAM REGIONAL CO-PERATIVE MILK PRODUCERS UNION

ERNAKULAM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION

MALAPURAM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION

THIRUVANANTHAPURAM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION, KOLLAM, PATHANAMTHITTA, ALAPPUZHA

ERNAKULAM, KOTTAYAM, THRISSUR, IDUKKI

POVAKOD, KOZHIKODE, KANNUR, WAYANAD

SOCIETIES (APCOS)

FARMERS

MILK PROCESSING
The milk which is being collected from the primary societies is tested before the milk is sent to the chilling centre or to the dairy. The tests are: 1. Organoleptic tests 2. Fat% 3. SNF% At the chilling centre that is in the dairy the sample of individual co-operative society is tested for the following tests: 1. Organoleptic 2. Temperature 3. Cloton Boiling 4. Acidity% (as lactic acid) 5. Fat% 6. SNF% It is essential to check acidity and temperature of pooled milk before dispatching to the dairy plant. At milk plant the sample of each society is testes for following tests.

1. Organoleptic tests 2. Temperature At raw milk reception dock

1. Fat% 2. SNF% 3. Acidity% 4. COB The Toned Milk having 3.00% fat and 8.50% SNF, sugar and cardamom/Cocoa powder/Coffee powder as flavoring agents. After dong all the tests which s essential, the milk is pasteurized. After pasteurizing the milk is packed and stored in freezers. According to the demand from the market, it is distributed. In Laboratory

FLOW DIAGRAM OF MILK PROCESSING


RAW MATERIAL

DUMP TANK

CLARIFICATION

COOLING AND STORING

PREHEATING

STANDARDIZATION

LIQUID MILK CREAM HOMOGENIZATION

(OPTIONAL) BUTTER

GHEE

PASTEURIZATION PACKING COLD STORAGE DISTRIBUTION WHOLE MILK STANDARD MILK TONED MILK DOUBLE TONED MILK

DEPARTMENTS

KCMMF HEAD OFFICE Provides Staff Management functions to support its Units & Regional Milk Unions. KCMMF Head Office has well established Marketing, Purchase, Quality Control, Finance, Project, Systems and HRD departments. MARKETING

Brand Management Lean Flush Management Bulk trading of surplus products Institutional supply contracts Co-ordinate promotional activities Packaging & Product Development Procurement & Consumer Pricing

PURCHASE

Centralized purchase of Dairy consumables Purchase of Raw Materials for Cattle Feed Plants Purchase functions of KCMMF Head Office

QUALITY CONTROL

Render technical & legal assistance to primary dairy co-operatives and Regional Milk Unions

Liaison and maintain quality of milk and milk products as per the standards Liaison with statutory authorities for bringing in suitable amendments in statutes Attend to consumer complaints on quality problems

FINANCE

Financial management of KCMMF and its units Liaison with financial institutions for availing loan for creation of infrastructure. Liaison with Government for availing Government financial assistance Long term repayment and scheduling of loans Capital Management Schemes for primary co-operative societies Recommend remuneration of APCOS employees

PROJECTS

Planning and execution of projects for creating infrastructure for Regional Milk Unions and KCMMF

Providing consultancy for execution of projects Liaisoning with statutory authorities like Factories and Boilers, Electrical Inspectorate, Dept.of Explosives etc for obtaining approval and implementation of projects

Liaisoning with Government for land allocation, water, power and other amenities Estate management and assistance in maintenance of Plant & Machinery of KCMMF Units

COMPUTER

Maintenance of Systems at KCMMF, Units and Regional Milk Unions Development of softwares to support various functions. Purchase of Hardware & Software Support Management Information System Networking Conducts Training programs for development of computer skills

HUMAN RESOURCE DEVELOPMENT

Milma family has 2098 skilled, efficient and qualified personnel and has an excellent labour relationship

Takes active role in framing personnel policies and service rules Finalize long term wage settlement, bonus etc. Placement and career development activities

COMPANY FUTURE AIMS


The dairy industry in the country is exposed to various challenges. The management of lean-flush periods has always been a matter of major concern to Milma and it still continues to be a key problem to be addressed on top priority. We have to re-dedicate ourselves to uphold our oft-repeated slogan "Farmers' Prosperity through Consumer Satisfaction". To keep farmer and consumer contended and happy in chorus is a difficult task. We have to formulate strategies and plans to accomplish the aforesaid task. Though a quarter century has elapsed since the drawn of Operation Flood programme we are yet to achieve self-sufficiency in milk production. At the same time we can be proud of our achievements in the area of infrastructure development, milk consumption enhancement and economic and social development of rural dairy farmers. A joint concerted effort of Milma and other Government agencies in Dairy Development and Animal Husbandry will go a long way in fulfilling our dreams. We have to strive to wipe off the accumulated losses and to improve the performance both on the physical and financial fronts. Your trust, your confidence and your encouragement will further energize and motivate us in this pursuit. Food crisis is a major threat now faced by the world and being the 2nd largest populated country we are forced to bear the brunt more than others. Our Government is giving priority to ensure food security to the citizens. To ensure food security we have to enhance domestic production of agricultural commodities including dairy products. This can only be achieved through ensuring remunerative prices to their produce and encouraging them to produce more milk and other agriculture products. We have to strengthen the hands of our farmers by enhancing their capability to produce more and thereby ensure the prosperity of our nation.

MARKETING ACTIVITES OF COMPETITORS

KSHEERA MILK
Ksheera milk is a product of Maranallor Ksheera Vyavasaya Sahakarana Sangam Ltd. It comes under the Dairy Development Department. The plant of Ksheera is located in Kuvalassery in Thiruvananthapuram District. They processes and markets milk in their own plant. They markets milk in all areas of Thiruvananthapuram District. They procure the milk from the local milk farmers and milk societies. TYPES OF MILK 1. Toned Milk 2. Double Toned Milk

TYPES OF PACKET 1. 500 ml

THE COMPOSITION OF FAT & SNF 1. Toned Milk 2. Double Toned Milk 3.0% 1.5% 8.5% 9.0%

MAXIMUM RETAIL PRICE (MRP) Rs.10.00/-

COMMISSION STRUCTUR 40 Ps per Packet

No. OF VEHICLES 28 number of Vehicles.

SUPPLY OF MILK They supply milk during Morning and Evening Session.

QUANTITY OF MILK SUPPLY 10,000 lit/day

SYSTEM OF COLLECTION OF MONEY The Ksheera collects money in advance. That is one day before issuing the milk they have to pay the money. CRITERIA FOR AGENCY The agent has to pay Rs.1000/- in advance for getting Ksheera milk agency. The presence of refrigerator is needed. They should have interest in selling milk. No. OF DEALERS They have 800 dealers in Thiruvananthapuram.

SALES PROMOTION For the sales promotion they are using boards, banners and even newspapers for advertisement. OTHER PRODUCTS 1. Ksheera Sambharam. 2. Ksheera Curd. 3. Ksheera Ghee.

AMBADI MILK
The company has a processing plant in Vellanad, Thiruvananthapuram District. They collect milk from local farmers and they have a procurement plant in Thenkashi, Tamil Nadu and they collect milk from their also. They pack and market milk in Thiruvananthapuram Dairy itself. In Thiruvananthapuram they have 11 main routes. And they use private vehicles for the supply of milk on a contract basis.

TYPES OF MILK 1. Toned Milk 2. Double Toned Milk (is called KANNAN)

TYPES OF PACKET 1. 500 ml

THE COMPOSITION OF FAT & SNF 1. Toned Milk 2. Double Toned Milk 3.0% 1.5% 8.5% 9.0%

MAXIMUM RETAIL PRICE (MRP) Rs.10.00/-

COMMISSION STRUCTUR 75 Ps per Packet

No. OF VEHICLES 11 number of Vehicles.

SUPPLY OF MILK They supply milk during Morning and Evening Session.

QUANTITY OF MILK SUPPLY 1300 lit/day

SYSTEM OF COLLECTION OF MONEY They follow the ready cash payment basis. They have credit facility only for the institutions.

CRITERIA FOR AGENCY The agency is given to the people who are interested and experienced in selling milk. No. OF DEALERS They have 500 dealers in Thiruvananthapuram.

SALES PROMOTION For sales promotion they are using boards, banners and even newspapers for advertisement.

MAIN CLIENTS 1. Big Bazaar. 2. Reliance. 3. Gokulam Hospital.

OTHER PRODUCTS 1. Ambadi Sambharam. 2. Ambadi Curd. 3. Ambadi Ghee.

A ONE MILK
The company processes and packs milk in its plant Patharam, Kollam District. They collect milk from the farmers and also from outside the district. The company mainly focuses on the interior places of Thiruvananthapuram District, where there is no reach for Milma. That means direct reach to the customer. TYPES OF MILK 1. Toned Milk 2. Double Toned Milk

TYPES OF PACKETS 1. 250ml 2. 500ml

THE COMPSITION OF FAT & SNF 1. Toned Milk 3% 1.5% 8.5% 9.0%

2. Double Toned Milk -

MAXIMUM RETAIL PRICE (MRP) 250ml 500ml Rs.5.00/Rs.10.00/-

COMMISSION STRUTURE 250ml 500ml NO. OF VEHICLES 10 number of vehicles 25Ps per Packet 50Ps per Packet

SUPPLY OF MILK They supply milk during Morning and Evening. In the morning their 95% of supplies are done. QUANTITY OF MILK SUPPLY 1,200 lit/day SYSTEM OF COLLECTION OF MONEY They follow ready cash payment basis. CRITERIA FOE AGENCY The agency is given to the people who are interested and experienced in selling the milk.

NO. OF DEALERS They have 450 dealers in Thiruvananthapuram. SALES PROMOTION For the sales promotion they are using boards, banners for their advertisement. OTHER PROUCTS 1. A One Sambharam. 2. A One Curd.

ROYAL MILK
The company processes and markets milk in its plant near to Eramalloor, Alappuzha District. In Thiruvananthapuram District they have no plant, they have only the distribution. They procure milk from local milk farmers as well as other states.

TYPES OF MILK 1. Toned Milk 2. Double Toned Milk

TYPES OF PACKET 1. 500 ml

THE COMPOSITION OF FAT & SNF 1. Toned Milk 2. Double Toned Milk 1.5% 1.5% 8.5% 9.0%

MAXIMUM RETAIL PRICE (MRP) Rs.10.00/-

COMMISSION STRUCTUR 75 Ps per Packet

No. OF VEHICLES 8 number of Vehicles.

SUPPLY OF MILK They supply milk during Morning and Evening Session.

QUANTITY OF MILK SUPPLY 1000 lit/day

SYSTEM OF COLLECTION OF MONEY They follow ready cash payment basis.

CRITERIA FOR AGENCY The agency is given to the people who are interested and experienced in selling the milk.

No. OF DEALERS They have 400 dealers in Thiruvananthapuram.

SALES PROMOTION For the sales promotion they are using boards, banners and even newspapers for advertisement.

OTHER PRODUCTS 1. Royal Sambharam 2. Royal Kattimoru 3. Royal Ghee

HERITAGE MILK
The company has production plant in Dindigul, Tamil Nadu. In Thiruvananthapuram District they have only milk distribution. They procure milk from Andhra Pradesh and Karnataka. In Thiruvananthapuram District they mainly focus on Thiruvananthapuram City. And also they focus the Bakery, Tea shop etc. TYPES OF MILK 1. Toned Milk 2. Double Toned Milk

TYPES OF PACKET 1. 500 ml

THE COMPOSTIOTN OF FAT &SNF 1. Toned Milk 2. Double Toned Milk 3.0% 1.5% 8.5% 9.0%

MAXIMUM RETAIL PRICE (MRP) 1. Rs.10.50/-

COMMISSION STRUCTURE Rs.1/- per Packet

NO. OF VEHICLES 4 Numbers of Vehicles

SUPPLY OF MILK They supply milk during Morning and Evening sessions.

QUANTITY OF MILK SUPPLY 1000 lit/day SYSTEM OF COLLECTION OF MONEY They follow ready cash payment basis

CRITERIA FOR AGENCY The agency is given to the people who are interested and experienced in selling the milk.

No. OF DEALERS They have 300 dealers in Thiruvananthapuram.

SALES PROMOTION For the sales promotion they are using boards, banners.

OTHER PRODUCTS 1. Heritage Curd 2. Heritage Ghee

MILMA BID TO COUNTER COMPETITION

The Kerala Cooperative Milk Marketing Federation (Milma) here is gearing up to face the competition put up by private dairies by introducing new products and improving its marketing activities. The cooperative is now going about strengthening its monopoly in the liquid milk market by launching milk in varying constitutions and also flavoured milk. Milk in 200 ml packs to cater to the low-income group, long-life curd, ice cream mixes are also in the offing. In Pathanamthitta city, Milma's sale is around 1.1 lakh litres daily, its market share being more than 65 per cent, while the private dairies sell around an estimated 30,000 litres. In the district alone, there are several brands of milk available, such as A1, Royal, Ambadi, Shakthi, Soorya, Kairali, Penta, Heritage and Ksheera.
Dairying is an important source of subsidiary income to small and marginal farmers and agricultural labourers of Kerala. Being a balanced food, it is an essential part of the diet of the children and invalids. The changing food habits of the people have increased the demand for milk and milk products. As per the recommendations, the per capita consumption of milk will be 240 gm/day, which means that the 333 lakh people of Kerala need 79.92 lakh litres of milk per day. It is estimated that the States production of milk during 2007 is only 58 lakh litres per day. The demand production gap is nearly 22 lakh litres, which is being met by milk-import from neighbouring States by Milma as well as by private traders. Out of 58 lakh litres of milk produced within the State, the organized sector handles only 18 percent. The rest is marketed either directly by the producer or vendor in the unorganized sector. The major factor affecting enhanced milk production in the State is the high cost of production compared to that of the neighbouring States. It is difficult to establish equilibrium between the procurement and selling prices without hurting both rural producers and urban consumers. The high cost of production calls for a higher price for the product, but enhancing the selling price will affect the common mans budget. Further it will result in the flooding of cheaper milk from neighbouring States that creates problem for our producers .Milma was formed with a view to over come the issues pertaining to milk production in the State. Now the Government has taken earnest steps to reorganize Milma to achieve the goals. The main function of Milma is procuring milk from the Primary Cooperative Societies and its distribution. It is only a marketing process. Unfortunately, Milma has no role in production sector. Gradually Milma became a trader. The availability of milk at cheaper rates from Karnataka and Tamil Nadu federations prompted Milma to collect it, as it was profitable than local procurement. Now the decrease in production and conversion of bulk quantity to milk powder has led to a shortage of milk and price hike in the State. This has put Kerala Cooperative Milk Marketing Federation in a critical state that made it to incur heavy loss on account of bringing milk from distant places

PRODUCT PROFILE
Milma has a range of products. A marketing chain consisting of nearly 4000 retail outlets, across the state ensures availability of milma's products to consumers. Milma with its motto your health is our concern has become synonymous with assured quality of milk and milk products. Milma's spectrums of products adhere to the PFA rules and are released for distribution only after stringent quality checks. Some of the main products that Milma has are:-

1. PASTEURASIZED MILK: Milma market liquid milk in pasteurized form. The pasteurized milk contains vitamin A. This pasteurized milk contains vitamin A. This enriched milk comes in three varieties. Fat free milk Toned milk which contains 3% fat and 8.5% of SNF Standardized milk which contains .5% fat 9% SNF Conveniently packed in 500 ml and 1 litre sachets, the fat content range of Milmas Milk has made it the popular health drink of young and old alike. 2. ICE-CREAM Milma ice-cream is available in a range of lip smacking flavours: vanilla, chocolate, mango, strawberry and fruit & nut. In addition, our Ernakulam Union also produces and distributes delicious "kulfi" and cream rolls. The only ice-cream in Kerala market which is manufactured in a dairy and hence most fresh ice cream. 3. SAMBHARAM Sambharam (butter milk) a favorite beverage of Kerala. Milma Sambharam, the only product of its kind in the market, is very popular throughout the State. It comes in convenient 200ml throw away sachets.

4. CURD It is a fermented product prepared from pasteurized skim milk using Curd Culture from National Dairy Research Institute (NDRI). It is delicious, tasty, free from cholesterol and available in 500ml and bulk. 5. LASSI It is a sweetened and flavored product prepared from curd. It is available in 200ml pack and is a very good health drink for all age group. 6. GHEE Ghee is a key ingredient in most Indian delicacies. Milma produces good quality, pure ghee from butter or cream at all dairies. The ghee is available in convenient packs of 100gm to 15Kg. 7. BUTTER Milma Butter prepared from the cream of milk contains 81% fat and less than 15.6% water. This is available in convenient 100gm, 200gm and 500gm family packs. Available in salted and unsalted varieties. 8. TETRAPACK FLAVOURED MILK Milma offers a range of flavoured health drinks in hygienic tetrapacks. Cardamom milk has already captured the market and are available at all milma outlets. 9. REFRESH In addition to milk drinks, milma also has a mango drink in the market. Refresh, milma's mango drink is a favourite in the fruit drink sector.

10. PEDA An indigenous milk product manufactured by evaporating water content from wholesome cow's milk and sweetened with cane sugar. It is a nutritious and delicious sweet bite for children. It is available in 25gm and 250gm cartons. 11. CREAM ROLL Mixture of tasty ice-cream and tooty fruity encircled with oven fresh spong cake. It is a delicious snack rich in milma cream. 12. MILMA SIP Made from pasteurized skim milk, sweetened and flavoured. Available in 25ml polyethylene tube in flavours like vanila, pineapple, strawberry, mango, and rose etc... And served in chilled condition. It is a safe and nutritious substitute to all other sip-ups. 13. CATTLE FEED Balanced cattle feed is the major input provided to the dairy farmers of the State from the Federation. There is a high level of acceptability for this product in the market. Milma is now producing 600MT cattle feed a day. It produces both mash and pellet form of cattle feed. In addition to augment the balanced feed and to support vitamin level in milk animal, milma has come out with milma mineral mixture - "milma min". The cattle feed is distributed to farmers at reasonable rate through Apcos, Dealers and Government.

REVIEW OF LITERATURE
Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and business. According to Duddy and Revzan, Marketing is the economic process by which goods and services are exchanged and their values determined in terms of money prices. Traditionally a market was a physical place where buyers and sellers gathered to exchange goods. The term market is derived from the Latin word Marcatus which means Merchandise, trade or a place where actual buying and selling take place or where buyers and sellers personally meet together to effect purchase and sales. This clearly means that a market is a geographical area where commodities are exposed for sale. Market is the sum total of the situation or environment in which the resources, activities, attitudes of the buyers and sellers, affect the sale for the product in a given area. Economists now describe a market as a collection of buyers and sellers who transact over particular product or product class. But the marketers view the sellers as constituting the industry and the buyers as constituting the market. Now a days, the market has become buyers market. In the new sense, marketing means satisfaction of consumer needs. To apply marketing concept, an organization must meet three basic needs. First, it must truly believe in the customers importance. All marketing activities are focused on providing satisfaction on the customers. Second, marketing efforts must be integrated, specific and measurable goals should be set; all marketing activities should be co-ordinated. Finally, management must accept the assumption that profit goals will be reached through satisfied customers.

The marketing concept (Achieve goals by meeting customers needs)

Customer orientation

Integrated marketing

Profit follows customer satisfaction

Key assumptions of the marketing concept Brand positioning and overall customer attitude: Branding: A brand is a name, term, symbol or design or a combination of them which is intended to identify the goods or services of one seller or group of sellers and to difference them from those of the competitors. Branding refers to decisions about names, including brands, brand names, brand marks and trade marks. A brand name is the part of a rand that can be verbalized; it includes letters word and numbers. A brand name is sometimes a products only distinguishing characteristics. A brand mark is a symbol, design or other element of brand that cannot be spoken. When a brand name or brand mark is registered and legalized. It becomes a trade mark. Advantages of branding (Consumers) a) When a product is distinguishable by its brand, consumer has an assurance of quality and consistency in the products attributes being offered. b) Certain brands provide status and prestige to consumers, which endow them, a some what conspicuous psychological satisfaction otherwise not normally available. c) These are a considerable saving of time and energy in shopping for goods because a brand renders product identification much better. d) Price of ranted goods is uniform throughout the country. Disadvantages: a) Popularity of brand renders them out of the common mans reaches because the y command a premium price. b) Brand royalty helps save time and energy in product selection but it discharges the consumer from trying out other new brands, which may possibly be more satisfying. c) Quality is not assured under all circumstances.

Important functions of branding are below: 1) It helps in product identification and gives distinctive to product. 2) Indirectly it indicates the quality or standard of the product. 3) It eliminates the imitation of the product. 4) It ensures legal right on the product. 5) It helps in advertising and packing activities. 6) It helps to create and sustain brand loyalty to particular product. 7) It helps in price differentiation of the products.

Brand Positioning: Brand positioning refers to target consumers reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy; and it focuses at all points of contact with the consumer. Brand positioning must make sure that:

Is it unique/distinctive vs. competitors? Is it significant and encouraging to the niche market? Is it appropriate to all major geographic markets and businesses? Is the proposition validated with unique, appropriate and original products? Is it sustainable - can it be delivered constantly across all points of contact with the consumer?

Is it helpful for organization to achieve its financial goals? Is it able to support and boost up the organization? In order to create a distinctive place in the market, a niche market has to be

carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customers views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customers mind. For instance-Kodak Mahindra positions itself in the customers mind as one entity- Kotak which can provide customized and one-stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of Think Investments, Think Kotak. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and its similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight. Customers attitude towards a particular brand: The direct formation of attitudes is linked to the experiential perspective. For forming attitude directly, the following elements are considered. - Classical conditioning/associative learning--positive affect is attached to object - Mere exposure--frequent exposure to stimulus increases liking for it. Derived from Butterfly effect. - Moods--mood at the time of exposure to object influences feelings about object. There are three major factors that are predictive of attitudes. They are Salient Beliefs Strength of the Belief Evaluation

There exist two types of influences regarding the consumers attitude. They are internal and external influences. Internal influences: Customer attitude is influenced by demographic factors, psychographic factors, personality, motivation, knowledge, attitude, beliefs and feelings. Customer attitude concerned with consumer need, consumer actions in the

direction of satisfying needs leads to thus behavior of every individual depend on thinking process. In simple terms attitude refers to what a person feels or believes about something. Additionally, attitude may be reflected in how an individual acts based on his or her beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative attitude toward a particular issue it will take considerable effort to change what they believe to be true. Marketers facing consumers who have a negative attitude toward their product must work to identify the key issues shaping a consumers attitude then adjust marketing decisions (e.g., advertising) in an effort to change the attitude. For companies competing against strong rivals to whom loyal consumers exhibit a positive attitude, an important strategy is to work to see why consumers feel positive toward the competitor and then try to meet or beat the competitor on these issues. Alternatively, a company can try to locate customers who feel negatively toward the competitor and then increase awareness among this group. External influences: Customer attitude or consumer behaviour is influenced by culture, sub-culture, locality, family, social class, reference group and marketing mix factors.

It also includes perception and learning. Perception: It is a process of attaining awareness or understanding of sensory information. Learning: It is acquiring new knowledge, behaviour, skill, values, preferences or understanding and may involve synthesizing different types of information. The ability to learn is preceded by humans, animals and machines. Marketing Research Marketing research may be defined as the objective and systematic design, collection, and analysis and reporting of data and findings relevant to a specific marketing situation facing the company. According to G.B Giles, Marketing research may be defined as the objective and systematic collection, recording analysis, and interpretation and reporting of information aboutExisting potential markets Marketing strategies and tactics Interaction between markets Marketing methods and Current or potential products or services. Scope of Marketing Research The marketing research aids the marketers in ascertaining various factors. Some of them are, 1. Aids in manufacturing by of aids the manufacturers in product planning, product pricing etc. 2. Aids in the distribution of the product through ascertainment market conditions, understanding the market policies and strategies etc.

Marketing research process: The following are the different steps in marketing research. 1. Define the problem and research objectives. The researcher must know what the management wants him to do. So the problem must be defined carefully and precisely. The research objectives are also to be set out in this page. 2. Develop the research plan. The second stage of marketing research calls for developing the most efficient plan for gathering the needed information. The cost of plan also specified in this stage. 3. Collect the information. This is the most expensive phase in marketing research. The data may be collected through survey method, interviews etc. The data may be collected by way of primary data collection or secondary data collection. 4. Analyze the information. It is the important stage in the research process. Correct analysis and interpretation of the data makes the research meaningful and purposeful. Various statistical tools may be used for the research analysis. So investor should have an adequate knowledge of various techniques like correlation, measures of central tendency, averages etc are a must. 5. Present the findings At the last step, the research should present findings that are relevant to the major marketing decisions facing management. 6. Make the decision. The manager knows that the findings could suffer from variety of errors. If their confidence is low they may decide against the research findings. They may even decide to conduct a further study. Limitations of marketing research. 1. Marketing research cannot predict future market behaviour accurately in many areas. In fact, many predictions go wrong and become untrue. 2. Lack of qualified personnel is another problem related to market research.

3.

Marketing research using the technique of science, but it itself is not an exact science, therefore the result obtained are not very accurate as compared to physical and chemical science.

4.

Market research is carried out in open market place where so many variables are acting on the research setting. It is not comparable to the controlled laboratory situation as available in physical and other exact science.

5.

Marketing research is carried out on consumers, dealers etc who are human beings. Human beings have a tendency to behave artificially when they know that they are being observed, so the attitudes, opinion, believes etc are being studied. This aspect of human behaviours distorts the market research results.

6.

The marketing research projects take generally long period than other ones. The time by which the research results are represented market situations also undergoes changes. Hence the time gap affects the successful implementation of research results.

7. 8. 9.

Relatively a few business personal are competent to undertake research projects. Lack of appropriate training to search leads to misrepresentation of data collection. In India, research is taken as time wasting and resource wasting activity. Time and money remain the major limitations worth mentioning in all sorts of marketing research studies. This discourages the researches and in term them do not give their to the organization.

OBJECTIVES OF STUDY To identify the competitors of Milma in Pathanamthitta Dairy. To determine the factors which affect the competitiveness in the dairy industry. To analyze the influence of Sales Promotion on sales of milk. To ascertain the influence of Commission on sales of milk.

RESEARCH METHODOLOGY
Research is defined as human activity based on intellectual application in the investigation of matter. The primary aim for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us.

METHODS OF DATA COLLECTION

PRIMARY DATA
Primary data was collected through personnel interview and seeks answer to a set of preconceived questions in a structural way. (Primary data are the actual information, which are received by researcher for study from the actual field of research). The data collected through interview and observation called primary data because the researcher attains them from the field of research directly and for the first time. For this research the researcher uses the following methods: Personal Interview Schedule

SECONDARY DATA
Secondary data are the information, which are attained indirectly. The researcher does not attain them himself or directly. Secondary data are generally attained from published and unpublished materials. They can gathered from public documents such as diaries, letters or they can gathered from public documents such as books, manuscripts, records and census reports. Secondary data were collected also from the other sources like company journals, company web site, company brouchers and internet.

SAMPLE UNIT
The sample unit consists of milk dealers of Pathanmthitta Dairy

SAMPLE SIZE
A sample size of 100 milk dealers of Pathanamthitta Dairy.

SAMPLING METHOD
The sampling method adopted was Simple random sampling.

RESEARCH TOOL
Pie Diagram and Bar Charts Simple Percentage Analysis

SIMPLE PERCENTAGE ANALYSIS


Percentage refers to a special kind of ratio. Percentages are used in making comparison between two or more variables to find the efficacy of each variable. Percentages are used to describe relationships among them replacing the common base say (100) so that comparisons can be made easy and meaning full.

PERCENTAGE =

NO. OF RESPONDENTS 100 TOTAL NO OF RESPONDENTS

1) TABLE SHOWING THE BRANDS THAT DEALERS DEAL

Table : 1

BRANDS MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE

NO.OF DEALERS 100 30 26 18 14 12

PERCENTAGE 100 30 26 18 14 12

Interpretation: The above table reveals that all the dealers are dealing the Milma milk. Along with the Milma milk they are dealing the other brands milk also. In the other milk brands 30% of dealers are dealing the Ksheera milk, 26% of dealers are Ambadi milk, 18% of dealers are A one milk, 14% of dealers are Royal milk and the last 12% of dealers are dealing the Heritage milk.

Chart : 1

THE BRANDS THAT DEALERS DEAL


120 100 100 80 60 40 20 0 MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE BRANDS

PERCENTAGE

30

26 18 14 12

2) SALES OF MILK BRAND IN A DAY

Table : 2

SALES PER DAY BELOW 150 150-200 200-250 250-300 300-350 ABOVE 400

NO. OF DEALERS 12 26 20 18 14 10

PERCENTAGE 12 26 20 18 14 10

Interpretation:

The above table reveals the dealers sales per day. In the table 12% dealers sales below 150 packet, 26% dealers are selling between 150 200 packets, 20% dealers are selling 200 250 packets, 18% dealers are selling 250 - 300 packets, 14% dealers are selling the 300 350 packets and only 10% dealers are selling the above 400 packet per day.

Chart : 2

THE SALES OF MILK BRAND IN A DAY

PERCENTAGE

26 20 12 18 14 10

BELOW 150

150-200

200-250

250-300

300-350

ABOVE 400

SALES PER DAY (IN PACKETS)

3) TABLE SHOWING THE RANKING OF ATTRIBUTES Table : 3

VARIABLES PRICE QUALITY BRAND IMAGE ADVERTISING AVAILABILITY PACKAGING Interpretation:

RANK 1 5 24 2 26 43 0

PERCENTAGE 5 24 2 26 43 0

The above table reveals that the dealers given importance to the attributes in order of availability, advertising and quality while the brand preference. In the ranking the 43% dealers are rank the availability, 26% dealers are rank the advertising and 24% dealers are the rank the quality.

Chart : 3

THE RANKIG OF ATTRIBUTES

0% 5% PRICE 24% 43% QUALITY BRAND IMAGE ADVERTISING 2% 26% AVAILABILITY PACKAGING

4) THE MOST SELLING MILK BRAND Table : 4

BRANDS MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE

NO. OF DEALERS 26 23 16 14 12 9

PERCENTAGE 26 23 16 14 12 9

Interpretation: The above table reveals the most selling milk brand. In this table Milma is the most selling milk brand, 26% dealers are selling this milk. After Milma, Ksheera in the second selling milk brand, 23% dealers are selling this milk. Then after comes the other milk brand.

Chart : 4

THE MOST SELLING MILK BRAND

9% 26% MILMA KSHEERA AMBADI 14% A ONE ROYAL HERITAGE 23% 16%

12%

5) FACTORS THAT INFLUENCE THE CUSTOMER

Table : 5

FACTORS PRICE QUALITY AVAILABILITY BRAND IMAGE ADVERTISING PACKAGING

NO. OF DEALERS 8 28 32 6 20 6

PERCETAGE 8 28 32 6 20 6

Interpretation: The above table reveals the factors that influence customer to purchase the particular milk brand. In 32% of dealers saying that the availability of milk brand is the most important factor that influences the customer. Then 28% of dealers say that the quality of the milk brand is also another factor for the purchase of the milk brand. The 20% dealers say the advertising is the other factor for the purchase of the milk brand

Chart : 5 THE FACTORS THAT INFLUENCE THE CUSTOMER

6% 20%

8% 28% PRICE QUALITY AVAILABILITY BRAND IMAGE

6%

32%

ADVERTISING PACKAGING

6) THE MOVEMENT RATE OF MILMA MILK Table : 6

RESPONSE GOOD AVERAGE POOR

MOVEMENT RATE 29 42 29

PERCENTAGE 29 42 29

Interpretation: The above table reveals the movement rate of Milma milk. In this table 42% of dealers response that the Milma milk movement is average. 29% of dealers response that good, 29% of dealers repose that poor.

Chart : 6

MOVEMENT RATE OF MILMA MILK

PERCENTAGE

42 29 29

GOOD

AVERAGE RESPONSE

POOR

7) THE BRAND WHICH GIVES HIGH COMMISSION Table : 7 BRANDS MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE NO. OF DEALERS 10 20 25 15 18 12 PERCENTAGE 10 20 25 15 18 12

Interpretation:

The above table reveals the brand which gives the high commission. In this table 25% of dealers opinion that Ambadi milk gives the high commission. 20% of dealers opinion that the Ksheera mik is second in high commission gives milk brand. 18% of dealers opinion Royal milk is third place in high commission milk.

The commission of Milma milk is very low compare to any other milk brands.

Chart : 7

THE BRAND WHICH GIVES HIGH COMMISSION


30 25 20 15 25 10 5 0 MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE BRANDS 10 20 15 18 12

PERCENTAGE

8) THE SATISFACTION LEVEL OF COMMISSION GIVEN BY MILMA Table : 8

RESPONSE YES NO

NO. OF DEALERS 60 40

PERCENTAGE 60 40

Interpretation: The above table reveals the satisfaction level of commission given by Milma. From the 100 dealers 60% of dealers are satisfied by the commission given by Milma. And 40% dealers are not satisfied with the commission given by Milma.

Chart : 8

SATISFACTION LEVEL OF COMMISSION GIVEN BY MILMA

PERCENTAGE

60 40

YES NO RESPONSE

9) THE RECOMMENDATION OF DEALERS Table : 9

BRANDS MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE

NO. OF DEALERS 15 22 20 18 14 11

PERCENTAGE 15 22 20 18 14 11

Interpretation:

The above table reveals the dealers recommendation of milk brand to the customer. 22% dealers are recommended the Ksheera milk, 20% of dealers are recommended the Ambadi milk and 18% dealers are recommended A one milk.

Chart : 9

THE RECOMMENDATION OF DEALERS

HERITAGE ROYAL A ONE AMBADI KSHEERA MILMA

11 14 18 20 22 15 PERCENTAGE

BRANDS

10) THE SATISFACTION LEVEL OF SALES PROMOTION GIVEN BY MILMA

Table : 10 RESPONSE YES NO NO. OF DEALERS 58 42 PERCENTAGE 58 42

Interpretation: The above table reveals the satisfaction level of sales promotion given by Milma. From the 100 dealers 58% of dealers are satisfied by the sales promotion given by Milma. And 42% dealers are not satisfied with the sales promotion given by Milma.

Chart : 10

SATISFACTION LEVEL OF SALES PROMOTION GIVEN BY MILMA

70 60 58 50 PERCENTAGE 40 30 20 10 0 YES RESPONSE NO

42

11) THE BRAND WHICH GIVES HIGH SALES PROMOTION

Table : 11

BRANDS MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE

NO. OF DEALERS 18 25 20 15 12 10

PERCENTAGE 18 25 20 15 12 10

Interpretation:

The above table reveals the milk brands which gives the high sales promotion. On this table 25% of dealers opinion that the Ksheera milk is providing the high sales promotion. Then 20% of dealers opinion that Ambadi milk is providing the sales promotion . Only 18% dealers are opinion that Milma milk providing the sales promotion

Chart : 11

THE BRAND WHICH GIVES HIGH SALES PROMOTION

30 25 20 25 20 18 15 10 5 0 MILMA KSHEERA AMBADI A ONE ROYAL HERITAGE BRANDS 15 12 10

PERCENTAGE

12) TABLE SHOWING THAT MILMA IS THE TOP MOST MILK BRAND IN THE DAIRY PRODUCT

Table : 12 RESPONSE AGREE DISAGREE NO. OF DEALERS 68 32 PERCENTAGE 68 32

Interpretation:

The above table reveals that Milma is the top most milk brand in the dairy product. 68% dealers are agreeing with the opinion because of the brand image of the company. Just 32% of dealers are not agreeing with the opinion because they saying that other dairy products also available in the market.

Chart : 12

MILMA IS THE TOP MOST MILK BRAND IN THE DAIRY PRODUCT

32% AGREE DISAGREE

68%

13) TABLE SHOWING THE SALES PROMOTIONAL SUPPORT EXPECTED FROM THE MILK BRANDS

Table : 13 RESPONSE PRICE OFFS CREDIT FACILITY DISPLAY ALLOWANCE FREE GOODS NO. OF DEALERS 13 53 27 7 PERCENTAGE 13 53 27 7

Interpretation: The above table reveals the dealers expectation of sales promotional support from the milk brand. In the 100 dealers 53% of dealers are normally expected the credit facility from the part of milk brands. 27% of dealers are expected the display allowance. 13% of dealers are expecting price offs and rests of 7% dealers are expecting free goods.

Chart : 13

THE SALES PROMOTIONAL SUPPORT EXPECTED FROM THE MILK BRANDS

FREE GOODS

RESPONSE

DISPLAY ALLOWANCE

27

CREDIT FACILITY

53

PRICE OFFS

13 PERCENTAGE

14) TABLE SHOWING THE SATISFACTION LEVEL OF TIMELY MILK SUPPLY OF MILMA

Table : 13

RESPONSE YES NO

NO. OF DEALERS 22 78

PERCENTAGE 22 78

Interpretation: The above table reveals the timely milk supply of Milma. In 100 dealers 78% of dealers are not satisfied the timely supply of Milma milk. 22% of dealers are satisfied the timely supply of Milma milk.

Chart : 14

THE SATISFACTION LEVEL OF TIMELY MILK SUPPLY OF MILMA

PERCENTAGE

78

22

YES RESPONSE

NO

15) TABLE SHOWING THE SUGGESTIONS TO IMPROVE THE SALES OF MILMA MILK Table:14 RESPONSE SUGGESTIONS NO SUGGESTIONS NO. OF DEALERS 32 68 PERCENTAGE 32 68

Interpretation: The above table reveals the suggestions from the dealers for the improvement of sales of Milma milk. From the 100 dealers 68% dealers have no suggestion and 32% of dealers have suggestion.

Chart : 15

SUGGESTIONS TO IMPROVE THE SALES OF MILMA MILK

PERCENTAGE

78

22

YES RESPONSE

NO

FINDINGS
The sales promotional activities to the dealers are not effective. Though the brands awareness is 100%, the sale of the Milma milk is very poor in some regions. The availability is the main factor that influences the dealers and customers to prefer a particular milk brand. The dealers are not satisfied with the replacement of damaged milk. The commission structure to the dealers is very low compared to the all other brands. The dealers are not satisfied with the quality of the Milma milk. The dealers are not satisfied the timely supply of Milma milk. The dealers expect the sales promotion support like credit facility, display allowance but they are not getting it. The dealers facing the shortage of Milma milk.

SUGGESTIONS
The commission to the dealers is less compared to the all other brands in Pathanamthitta Dairy. So Milma has to increase the commission for getting more sales. The Milma milk brand has to give attention for the timely supply of milk. The availability of Milma milk in the rural area is very less. So the Milma has to concentrate in the rural area too. Milma should offer incentive schemes to dealers for motivating sale of Milma milk. There is a growth potential in the market regions like Kozhenchery, Adoor and Pandalam, so Milma should also concentrate on these regions. To ensure the prompt replacement of damaged milk. To give the credit facility to the regular dealers of Milma milk. Ensure the good quality milk to the dealers.

LIMITATION OF STUDY

Since the research study has to be completed within a specified period, a small segment of the dealers has been taken. The data were collected from respondents directly. The respondents have answered the questions based on their state of perception at that point of time. This could have led to slight variations in the data. Hesitations from the part of respondents to give information.

CONCLUSION

Milma, The goodness Kerala wakes up to has good image in the minds of people. Milma is the first and inimitable organization which created a revolution in Procurement, Processing, Marketing and Distribution of pure milk in the state. Your health our concern has now becomes a synonym for assured quality. The name Milma is now familiar with each and every house in Kerala. Though Milma have been in the milk market for a quite long time, it does not know is detail about the other milk brands in Pathanamthitta Dairy. This marketing research tries to highlights the threats and the position of the other milk brands. Though the Milma is in a strong position compared to the other milk brands it is useful to Milma, to know about details of the other milk brands for improving its provision. The stringent competition in the milk market urged the organization for an independent view of the market and compels them to find out why people prefer other brands, and how can they be made loyal customers of Milma. Even though much efforts have been taken to ensure the credibility of this report it may be worth while to say that the more areas of this topic could be used for further research studies.

BIBLIOGRAPHY

PHILIP KOTLER

MARKETING MANAGEMENT PRENTICE HALL OF INDIA (P) LTD, NEW DELHI. BUSINESS RESEARCH METHODS AKASH PUBLISHING HOUSE, NEW DELHI.

WILLIAM G. ZIKMUND

S.C.GUPTA V.K.KAPOOR : FUNDAMENTALS OF APPLIED STATISTICS SULTAN CHAND & SONS, NEW DELHI.

INTERNET SOURCE

www.indiandairy.com www.milma.com www.google.com www.wikipedia.com

SCHEDULE Dealers Name:... Location:.

1. What are the brands that you deal with? a) Milma d) A One b) Ksheera e) Royal c) Ambadi f) Heritage

2. Sales of milk brand in a day? a) Below 150 d) 250 - 300 b) 150 - 200 e) 300 - 350 c) 200 - 250 f) Above 400

3. Rank the milk brands on the following attributes? Brand Name Price Quality Brand Image Advertising Availability Packaging Milma Ksheera Ambadi A One Royal Heritage

4. According to you which are the most selling milk brand? a) Milma d) A One b) Ksheera e) Royal c) Ambadi f) Heritage

5. The most important attribute that influence the customer? a) Price d) Brand Image b) Quality e) Advertising c) Availability f) Packaging

6. Identify the Unique Selling Proposition (USP) on each milk brands? a) Milma b) Ksheera c) Ambadi .. d) A One e) Royal f) Heritage .

7. How do you rate the sales movement of Milma milk? a) Good b) Average d) Poor

If less than average specify the reason............................................................

8. Which milk brand gives the high Commission? a) Milma d) A One b) Ksheera e) Royal c) Ambadi f) Heritage

9. Are you satisfied with the Commission provided by Milma? Yes No

If no specify the reasons 10. Which milk brand do you recommend to the customer? a) Milma d) A One b) Ksheera e) Royal c) Ambadi f) Heritage

11. Are you satisfied with the Sales promotion activities given by Milma? Yes No

If no specify the reason......................................................................................

12. Which milk brand gives the high sales promotion? a) Milma d) A One b) Ksheera e) Royal c) Ambadi f) Heritage

13. Milma is the most top milk brand in the dairy product? Do you agree? Agree Disagree

If disagree specify the reason

14. What kind of Sales promotional supports do you normally expect from the milk brands? a) Price offs c) Display allowance b) Credit facility d) Free goods

15. Are you satisfied with the timely milk supply of Milma? Yes No

16. Any other suggestions to improve the sales of Milma milk? ..

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