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INDUSTRY PROFILE
DAIRY INDUSTRY IN INDIA
Dairy enterprise is an important occupation of farmer. In India nearly
70% of the people depend on agriculture. It is the backbone of India. Dairy
is linked with agriculture industry to a large extent. Animal husbandry in
India is an essential part of agriculture. It is mainly a rural occupation
closely associated with agriculture.
The dairy and Animal Husbandry received serious attention after the
independence. There were lot many of progressive steps taken by the
government through five year plans. This led to the formation of National
Dairy Development Board in 1965 & thus in 1970 he decided to Bring a “
White Revolution” through out the country, Initially 10 states were selected
were for this purpose excluding Karnataka.
In Karnataka in 1974 an integrated project was launched to restructure
and reorganize the dairy industry on Co-operative principle of AMUL and to
lay foundation for new direction in dairy industry.
The Growth
NDDB began its operations with the mission of making dairying a
vehicle to a better future for millions of gross roots milk producers. The
mission archived helped to launce ‘’Operation Flood’’, a programme
extending over 26 years and with the help of World Bank Loan India
become the world’s largest milk producing country. As per March 2001
India’s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-
operative structure. The Anand pattern, which is owned by more than 10
million formers, procures an average of 1605 million liters of milk everyday.
The milk is processed and marketed by 170 milk producers co-operative
unions which, in turn own 15 state co-operative milk marketing federation.
Since its establishment the dairy development board has planned and
spearheaded India’s Dairy programmer by placing dairy development in the
hands of milk producers and the professionals they employ to manage their
co-operatives. In addition, NDDB also promotes other commodity based co-
operative, allied industries and veterinary biologically on an intensive and
nation wide basis.
Objectives of NDDB:
To sponsor, promote, manage, acquire, construct or control any
relation to dairying.
international agencies.
FUNCTIONS OF KMF
Co-ordination of activities between the unions.
Developing the markets for the increasing in milk production.
To make the brand ‘’Nandini’’ as a house hold name.
Excellence in quality is to be maintained to lay a solid foundation
for wide
Spread acceptance of ‘’Nandini’’ products.
To increase the market share of ‘’Nandini’’.
COMPANY PROFILE
Belgaum Milk Union
Today the union is procuring milk from over 435 DCSs (District Co-
Operative Societies) of which 319 are functional. Their Functional DCSs of
which 319 are functional. Their functional DCSs has shown steady increase
over the past few years with the member starting at 71787 in November
1997. The effort of the union on the procurement side has lead to its
procuring in an average of 461846 of its milk everyday.
Functions of BEMUL
• The main function of is to procure milk from villagers and pay them
the right price.
• To educate the villagers about milk and its quality
• To make’Nandini’ as a part of daily life.
• To provide good quality of cattle feed, fodder, veterinary properly and
in an efficient manner.
• To see that the DCS’s are carrying out their activities properly and in
an efficient manner.
• To see that the milk is brought from DCS’s to the chilling centers in
the prescribed time.
• To look the account of the DCS’s supervise the purchase process and
market the milk and milk products.
Objectives of BEMUL:
Providing hygienic and good quality of milk to the consumers.
To build the economic strength of the milk products in villages.
To eliminate middlemen’s in the business so that the milk products
receive there appropriate share of bread.
To educate the villages about the adulteration of milk and its harmful
effect on the body.
To see that every citizen becomes healthy by consuming good quality
of milk.
• Total quality
• Honesty
• Discipline
• Cleanliness
• Transparency
• Sovereignty
Belgaum Milk Union 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 and is also committed to provide quality
milk products to consumers and emerge as one of the top most milk union of the co-
operative dairy industry in the country.
Belgaum Milk Union (BEMUL) came into existence on 3-3-1986 BEMUL was
established under co-operative act on 3-3-1986 at Belgaum. And Gadag, Haveri, Uttar
Canara and Belgaum come under its operation.
Further in 1988, the Riapur Dairy and Chilling Center, setup in 1968, also came
under the union. In 1989, the training center, which was controlled by KMF, came under
Belgaum Milk Union.
BEMUL was Rs.7 crore Projects of which Government has Rs.2Crore of share
capital and authorized capital of BEMUL is Rs.5crore.
The production capacity of BEMUL is 2 lack litres of milk per day and also has
the capacity to produce 12tones of milk powder, 10tones of butter, and 6tones of ghee per
day.
BEMUL is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing milk
products.
ESTABLISHMENT:
The Nature of Belgaum Milk Union is that procuring the Milk from societies. And
that milk will be brought through tankers for various chilling centers those, which are
near and convenient to various societies.
The Union processes the milk and market in urban area through various agents.
The Union is providing services to milk producers with technical inputs like veterinary
services, seeds, fodder etc. and also by giving training to farmer and induction program.
The Union also owns and operates the dairy plant cattle feed plant; fodder and
bull mother forms, semen collection station, and herd quarter center for animal husbandry
activities.
The Union also takes research, development and also other promotional activities
for the overall benefit of the farmer.
The Union providing various product to market like toned milk, standard milk,
full creamed milk, double toned milk, homogeneous standard milk, along with cheese
curd, ghee, pedha.
FUNCTIONS OF BEMUL:
• The main function of BEMUL is to procure milk from villagers and pay them the
right price.
• To provide good quality of cattle feed, fodder, veterinary aid seeds, etc., to the
villagers.
• To see that the DCS's are carrying out their activities properly and in an efficient
manner.
• To see that the milk is brought from DCS's to the chilling centers in the prescribed
time.
• To look the accounts of the DCS's supervise the purchase process and market the
milk and milk products.
OBJECTIVES OF BEMUL:
• To eliminate middlemen's in the business so that the milk producers receive their
appropriate share of bread.
• To educate the villagers about the adulteration of milk and its harmful effect on
the body.
• To see that every citizen becomes healthy by consuming good quality of milk.
ORGANIZATION CHART
Presidents
Managing director
Dy Dy Dy Dy Sr. Dy
Manager Manager Manager Manager Supervisor Manager
Workers
BIET MBA Programme Davangere 16
Belgaum Milk Union Ltd
OTHER PRODUCTS
MARKETING DEPARTMENT.
Marketing of milk and products is done under brand name “Nandini”. Except
loose milk other products are marketed by KMF, the marketing agency.
Before pre-liberalization (July 21st 1991) the BEMUL enjoyed a monopoly due to
co-operative organization and other benefits received from the state government. But
after July 21st 1991 the scenario totally changed, new private diaries started grounding
like mushrooms with entrance of private diaries the BEMUL facing a tough competition
resulting into major loss of market share gradually over the years. Today BEMUL has
only 23 % of total market share. BEMUL operates in 17 cities/ towns having a total
population of 1.05 million.
The closest competitors with regard to market share quality of milk, price
and goodwill are,
• Local vendor
• Arokya
• Sphurti
• Datta
• Sri Krishna
• Gokul
• To prepare the marketing plan at the beginning of every year, taking into
generate sales.
Promotional activities are the activities conducted by the company which helps
the company to keep its customers informed about the product, any developments, and
advancement in the products. The promotional activities help the company to place its
brand or product on the top of the mind of the customers. These activities depend on the
nature of the product, the target customers, the message that the company wants to
convey to its customers etc…
KMF found the need for adopting the promotional activities in order to create
awareness about the product which intern lead to increase in sales and help the company
to increase its market share. The company has undertaken various promotional activities
in order to increase the market share of its Milk and Milk products.
The following are the major promotional activities carried over by KMF:
Advertisements
• Magazines
• Hoardings
• Ad boards
• Banners
• Dealer displays
• Television
• Radio etc…
Awareness campaigns
• Door to door
• Mass campaigns
ADVERTISEMENTS:
Now a day’s advertisement is the well known, most effective, and common means
of promotional activity. Advertisement is a complex form of communication that operates
with objectives and strategies leading to various types of impact on consumer thoughts,
feelings and actions. It is the best way to keep your customer updated and give an
introduction to the new customers. Also it helps the company in keeping its brands or
products on the top of the minds of the customers.
proportionate manner. The company is making use of different media vehicles like Print
media, electronic media, and others also
The following are the media vehicles used by the company for advertising its
products.
• MAGAZINES:
All the leading Kannada magazines are used by the company for advertising.
Especially the weekly and monthly magazines are used to a greater extent. The special
edition magazines like Deepawali edition, New year edition are also used. The main
advantage of this print media is we can give bit detailed information about the products.
• HOARDINGS:
These are also very effective ads, where in the large hoardings with the ad
message are put in the much clustered areas or on the sides of the roads. These are
designed in such a way that just to remind about the brands. Usually this doesn’t give the
detailed information about the brand but to remind about the brand and to show the
availability.
These types of advertisements are made by inserting the printed pamphlets in the
leading local news papers. The target customers from a particular geographical area are
selected and the printed insertions will be given to the news paper agents. The agents
insert those pamphlets in the said news papers. From this the company can reach to the
majority of customers who purchase that particular news paper in the whole area. This is
a very economical means of advertisement.
• BANNERS:
Banners are also play important role in creating awareness. They are the one
which carry the message of the product or brand and catches the eye of consumers very
easily. They are so compatible in nature that you can use them at any place. For ex, the
banners can be used at dealers or outlets, can be tied in a crowded area, can be used in a
promotional campaigns etc…
• DEALER DISPLAYS:
The dealer displays are the display boards given by the company for displaying
the product information. They are exclusively given to dealers only which contain
lighting facility which make them clearly visible at the night also. These boards displays
the products that are available and also to make separate identity for the dealers.
The company also making the publicity through the most popular media i.e.:
electronics media. We can see and hear the advertisement of Nandini in radio channels
and in various television channels also. At the same time KMF is doing some kitchen
programs like NANDINI ADUGE MANE in private Kannada channels which are
exclusively sponsored by KMF, which are also creating awareness about NANDINI
products and increasing the brand image of NANDINI.
• AD BOARDS:
These are the tin boards and hard plastic boards which carry the information about
individual products and of all products. There are two types of ad boards, namely
Rectangle boards, cone boards. Usually these are used to advertise on public transport
systems (back of city bus) and to display at the dealer outlets. These are more
informatory compared to the hoardings.
AWARENESS CAMPAIGNS:
Awareness campaigns are the campaigns organized by the KMF for promoting the
Nandini Milk and Milk products. The awareness campaigns are organized by the
marketing department of the company in which the company officials try to make the
consumers aware about all the products available at Nandini counter. Also the officials try
to convey the parameters which have to be looked while purchasing the milk and milk
products. The consumers are given knowledge of the steps taken by KMF in order to
provide them the healthier products which are processed with hygiene.
The company officials also give knowledge to the consumers that how they are
cheated by the private suppliers by doing adulteration and how that will affect their and
their children’s health.
In total the awareness campaigns never force the consumer to purchase the
Nandini products but help them in decision making by comparing Nandini products with
that of other private branded products.
Usually this kind of awareness campaigns are organized in developing market and
in the areas where the sales is less, and in the area where comparatively less educated
people are there. Because the less educated consumers are week in decision making so
these campaigns gives them a platform to think and decide.
There are two types of awareness campaigns practiced by the company. They are:
The door to door awareness campaigns are done in the area where there are less
existing customers are there and more potential customers are observed. Here the
company officials personally visit every house and provide the information to the
individual households. Generally it is carried over in such place where the customers
need detailed knowledge about the products.
These door to door campaigns are too much time consuming and also need to
incur more expenses. But the results are more favorable.
• MASS CAMPAIGNS:
Mass campaigns are carried over where there is a crowd. In such areas the
officials take opportunity to make the crowd understand about the quality of the product,
the factors to be looked after while purchasing the milk products. And also educate the
crowd about the product mix of Nandini.
ANALYSIS
INTERPRETATION AND ANALYSIS
Keeping in view of the objectives, the data so collected from various
sources and were analyzed with the help of appropriate techniques. The
results of the study are presented in this chapter under the following
headings.
Valid Cumulative
Frequency Percent
Percent Percent
Yes 100 100.0 100.0 100.0
120
100
100
80
60
40
Frequency
20
0
Yes
Figure 1: Number of respondents aware about NANDINI Brand of Milk and Milk
products
From the above table and graph we can observe that there is 100% brand
awareness of Nandini. Out of 100 respondents surveyed all the 100 says they are aware of
Nandini brand of milk and milk products. This shows only brand awareness but not about
products in depth.
60
50
40
Respondents
30
Series1
20
10
0
TM
SM
SHBM M
DTM
Brands
As the graph depicts among the milk brands of Nandini Standard milk carries
highest of 60% of awareness, the next is Shubham Milk which carries the 58% of
awareness. Toned milk is also in the queue with 46% of awareness and the Double Toned
Milk is showing very poor awareness with only 15% of respondents are aware of it.
80
70
60
50
40 Series1
Respondents
30
20
10
0
Curd P Curd S lassy M lasy Pedha Khova Paneer Butter Ghee
products
80
70
60
50
40 Series1
30
20
10
0
Quality Thickness Fat Cont price Taste Avai'ty
Fig 4: Table 4: factors looked while purchasing the Milk and Milk Products
When we tried to know what are the parameters which are looked while
purchasing the milk and milk products the overall quality was given more importance
with 74% then the next importance is given for taste with 52% response. Availability
thickness and price comes next with 31%, 26% and 26% where as the fat content carries
very less importance with only 17% looking for that.
Yes No Total
Dealers 30 (30%) 70 (70%) 100 (100%)
Campaigns 09 (09%) 91 (91%) 100 (100%)
Banners 36 (36%) 64 (64%) 100 (100%)
Wall paintings 42 (42%) 58 (58%) 100 (100%)
T V ads 55 (55%) 45 (45%) 100 (100%)
Radio ads 21 (21%) 79 (79%) 100 (100%)
Magazines 22 (22%) 78 (78%) 100 (100%)
Note : Figures in the parenthesis indicate % to the total
60
50
40
30 Series1
20
10
0
Dealers Cam's Banner Wal paint Tv ads Radio ads Magzine
The learning about the products is happened to the great extent by Television
55% and wall paintings 42%. The banners and dealers also contributed in learning
process by 36% and 30% respectively. 22% and 21% people came to know about the
product s through magazines and radio ads, and only 9% of respondents learn about the
products through campaigns which is the least.
Cumulative
Frequency Percent Valid Percent
Percent
Yes 96 96.0 96.0 96.0
No 4 4.0 4.0 100.0
Total 100 100.0 100.0
120
100
96
80
60
40
Frequency
20
0
Yes No
Cumulative
Frequency Percent Valid Percent
Percent
Yes 77 80.0 80.0 80.0
No 19 20.0 20.0 100.0
Total 96 100.0 100.0
100
80
77
60
40
20
Frequency
19
0
Yes No
Yes No Total
Banners 34 (44%) 43 (56%) 77 (100%)
Ad boards 30 (39%) 47 (61%) 77 (100%)
Campaigns 10 (12%) 67 (88%) 77 (100%)
Wall paintings 29 (38%) 48 (62%) 77 (100%)
Television ads 58 (75%) 19 (25%) 77 (100%)
Radio ads 15 (19.5%) 62 (80.5%) 77 (100%)
Magazines 16 (21%) 61 (79%) 77 (100%)
70
60
50
40
Series1
30
20
10
0
Banners Ad boards Cam's w al paint TV Radio Magzine
When we asked which of the ads were more informatory 58% felt television, 34%
says Banners, 30% felt ad boards, and 29% felt wall paintings were more informatory.
Radio ads, magazines, and campaigns were felt less informatory with 15%,16% and 10%
response.
Cumulative
Frequency Percent Valid Percent
Percent
Yes 11 11.0 11.0 11.0
No 89 89.0 89.0 100.0
Total 100 100.0 100.0
100
89
80
60
40
Frequency
20
11
0
Yes No
Only 11 persons out of 100 have attended awareness campaigns which show the
company has failed to reach to maximum number of customers through campaigns.
Yes No Total
Freshness 07 (64%) 04 (36%) 11 (100%)
Hygiene in prod’n 04 (36%) 07 (64%) 11 (100%)
Reliability of brand 05 (45%) 06 (55%) 11 (100%)
No adulteration 02 (18%) 09 (82%) 11 (100%)
4 Series1
0
Freshness Hygin in prodct'n Reliablity of brnd No contamin
Out of 11 customers who attended the campaigns , freshness of the product was
learnt by 7 people, reliability of the Nandini brand was learnt by 5 people, hygiene in
production by 4 and no adulteration in Milk and its products by 2 respondents.
Cumulative
Frequency Percent Valid Percent
Percent
Yes 72 72.0 72.0 72.0
No 28 28.0 28.0 100.0
Total 100 100.0 100.0
80
72
60
40
28
20
Frequency
0
Yes No
Out of 100 respondents 72% purchase Nandini Milk and Milk products. And 28%
do not purchase Nandini Milk and Milk products.
60
50
40
30
Series1
20
10
0
Quality Fat Taste Pro
content activity
Fig 12: Factors influencing for repetitive purchase NANDINI Milk and Milk
Products
Out of 72 respondents who purchase Nandini Milk and Milk products 74% feels
quality is great it is the main factor which influence them for repetitive purchase. Then
27% says taste, 23 % feels availability, 17% says thickness, 16% feels price which
influence them in making purchase decision. Very less importance was given by the
customers to fat content (15%) and promotional activities (6%).
18
16
14
12
10
8 Series1
6
4
2
0
Quality Fat Taste Pro
content activity
Fig13: Reasons which forces for not purchasing NANDINI Milk and Milk
Products :
Out of 28 respondents who do not purchase Nandini Milk and Milk products
price was said as the major factor with 64% response which influence their purchase
decision. Second and third importance was given to availability and taste by 32% and
29%. Quality 07%, Fat content 11%, thickness 07% and promotional activities 11% are
not major factors which prevents them for not being the customers.
FINDINGS
Findings of the study:
• Nandini Standard milk carries highest of 60% of awareness, the next is Shubham
Milk which carries the 58% of awareness. Toned milk is also in the queue with
46% of awareness and the Double Toned Milk is showing very poor awareness
• Curd, Ghee, Pedha and Butter are having the greater awareness i.e.76%, 62%,
55% and 54% of awareness respectively. The Pot curd, Masala lassi and Sweet
lassi carry little less awareness as compared to the first 4 products with a response
of 43%,48% and 44%. Among all products Khoa and Paneer are the 2 products
with very less response of 33% and 29%.
• Quality was given more importance with 74%, then the next importance is given
for taste with 52% response. Availability thickness and price comes next with
31%, 26% and 26% where as the fat content carries very less importance with
only 17% looking while purchasing milk and milk products
• The learning about the products is happened to the great extent by Television
55% and wall paintings 42%. The banners and dealers also contributed in learning
process by 36% and 30% respectively. 22% and 21% people came to know about
the product s through magazines and radio ads, and only 9% of respondents learn
about the products through campaigns
• Out of 11 customers who attended the campaigns, freshness of the product was
learnt by 7 people, reliability of the Nandini brand was learnt by 5 people,
hygiene in production by 4 and no adulteration in Milk and its products by 2
respondents.
• Out of 100 respondents 72% purchase Nandini Milk and Milk products.
• Out of 72 respondents who purchase Nandini Milk and Milk products 74% feels
quality is great it is the main factor which influence them for repetitive purchase.
Then 27% says taste, 23 % feels availability, 17% says thickness, 16% feels price
which influence them in making purchase decision. Very less importance was
given by the customers to fat content (15%) and promotional activities (6%)
• Out of 28 respondents who do not purchase Nandini Milk and Milk products
price was said as the major factor with 64% response which influence their
purchase decision. Second and third importance was given to availability and taste
by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and
promotional activities (11%) are not major factors which prevents them for not
being the customers.
SUGGESTIONS
• As there is very less awareness about Double toned milk the company should try
to promote this product.
• The products like pot curd, Masala lassi, Sweet lassi has a great potential to grow
in the market but the awareness is little less. So the company must take
appropriate steps in order to increase the awareness. And much effort is needed to
promote Khoa and Paneer.
• During the study I came to know that the availability of the milk products other
than milk is very less. So the other milk products also made available to customer
where ever the milk is available. That certainly increase the sales volume of milk
products
• Consumers say they learnt about the product mainly through Television, wall
paintings and banners. And feels television ads, banners, ad boards were more
informatory. So the efforts of the company are going in a right direction. But only
suggestion is to increase the frequency television ads and ad boards
• The customers expect Quality, taste and availability while purchasing the milk
and milk products and the company has reached the expectation in case of quality
and taste but a small effort is needed to increase the availability.
• The non customers of Nandini says price is the major reason for not being. So the
company should make an attempt to make them understand the value for money
what they get from Nandini in terms of quality, and healthiness of the products.
• Awareness campaigns have failed to reach majority of customers. So the number
of campaigns to be increased and to be made in such a place that the maximum
number of customers are covered.
CONCLUSION
After analysing the data of the study I conclude that the Toned milk is also in the
queue with 46% of awareness and the Double Toned Milk is showing very poor
awareness with only 15% of respondents are aware of it 29% felt wall paintings were
more informatory. Radio ads, magazines, and campaigns were felt less informatory to
about 15%, 16% and 10% respectively. Second and third importance was given to
availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness
(07%) and promotional activities (11%) are not major factors which prevents them for
not being the customers.
Questionnaire
Dear Sir/ Madam,
Name: ____________________________________________
Address: ___________________________________________
a. Yes b. No
a. Toned Milk
b. Standard Milk
c. Shubham Milk
d. Double Toned Milk
a. Curd
b.Pot curd
c.Sweet lassy
d. Masala lassy
e. Pedha
f. Khoa
g. Paneer
h. Butter
i. Ghee
4. What factors you look while purchasing the Milk and Milk Products?
a. Quality
b. Thickness
c. Fat content
d. Price
e. Taste
f. Availability
a. Dealers
b. Campaigns
c. Banners
d. Wall paintings
e. T.V advertisements
f. Radio Advertisements
g. Magazines
h. Others
a. Yes b. No
a. Yes b. No
a. Banners
b. Ad Boards
c. Campaigns
d. Wall paintings
e. T.V advertisements
f. Radio Advertisements
g. Magazines
h. Others
a. Yes b. No
10. What you came to know about the NANDINI products in Awareness
Campaigns?
a. Yes b. No
If Yes
12. Which of the following factors made you to repetitive purchase NANDINI
Milk and Milk Products :
a. Quality
b. Thickness
c. Fat content
d. Price
e. Taste
f. Availability
g. Promotional activities
If No
13. Select the following reasons due to which you are not purchasing NANDINI
Milk and Milk Products :
a. Quality
b. Thickness
c. Fat content
d. Price
e. Taste
f. Availability
g. Promotional activities
“THANK YOU”
BIBLIOGRAPHY
REFERENCE BOOKS: