Bijapur and Bagalkot co-operative milk producers societies union Ltd.

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ACKNOWLEDGEMENT
I am the student of BASAVESHWARA ENGINEERING COLLEGE
(AUTONOMOUS), DEPARTMENT OF MANAGEMENT STUDEIS, MBA III
SEM very grateful to all the people who have provide their precious time and advice
making this project successful.
Firstly I am very grateful to BIJAPUR AND BAGALKOT CO-OPERATIVE
MILK PRODUCERS SOCIETIES UNION LTD. for providing me an
opportunity to conduct this project in their organization.
I am heartily thankful to my organizational guide Mr. S.S.Kumbar sir & all other
staff members for their valuable guidance and for supporting me by sharing their
experience, as well for guiding me in completing In- plant training successfully.
I am heartily thankful to my internal guide Prof. Sanjay Hanji and all faculty
members of my institution for their valuable guidance in completing in plant training
successfully.

Mr. Arun S Karishankari









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Declaration
I Mr. Arun S Karishankari the undersigned with USN 2BA13MBA02 hereby declare
that the project report organization study and marketing related aspects at Bijapur
and Bagalkot co-operative milk producers societies union Ltd. has been prepared
by me under the supervision and guidance of Prof Sajay Hanji faculty member of
B.V.V.Sanghas Basaveshwar Engineering college, Department of Management
Studies Bagalkot. The report is submitted to VTU Autonomous in the partial
fulfillment of the Degree of Master of Business Administration in marketing
specialization, under the external guide Mr.S.S.Kumbar [BIMUL]

Date: Signature
Place: Bagalkot (Arun S Karishankari)
USN NO-2BA13MBA02











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LIST OF CONTENTS

Sl no Particulars page. No
1 Introduction about Industry 4
2 Objectives of studying the Organization
3 Over view of the Organization 10-15
Brief History
Nature of the organization
Business Volume
Profile of employees
Product lines

4 Organizational structure 16-23
Main offices
Marketing operations
5 Structure of Marketing department 24-25
Number of employees working in the marketing department.
Marketing operations
6 Functions of Marketing department 26-34
Marketing strategy
Product planning, development and management
Pricing strategy
Distribution strategy
Promotional strategy
7 Success and failure of the products 35
Major competitors of the organization
Future prospectus of the organization
8 Weakness of marketing department 36
9 Conclusion 37
10 References and sources used 38
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INTRODUCTION
History of Milk
Animal milk was first used as beverage at the beginning of animal domestication.
Goats and sheep were domesticated in the Middle East in 9000BC. Goats and sheep
were one of the first animals to be domesticated. Around the year 7000 BC, cattle
were being herded in parts of Africa and Turkey. Milk was also consumed in the
British Isles during the Neolithic period. Dairy products were first made in the Roman
Empire around 100 BC. The use of cheese and butter spread in Europe, parts of Asia
and parts of Africa. Cattle were then introduced to European colonies after the Age of
exploration.
Background Milk
Is a nutritive beverage obtained from various animals and consumed by humans. Most
milk is obtained from dairy cows, although milk from goats, water buffalo, and
reindeer is also used in various parts of the world. In the United States, and in many
industrialized countries, raw cows milk is processed before it is consumed. During
processing the fat content of the milks adjusted, various vitamins are added, and
potentially harmful bacteria are killed. In addition to being consumed as a beverage,
milk is also used to make butter, cream, yogurt, cheese, and a variety of other
products.
History
Cattle were first brought to the United States in the 1600s by some of the earliest
colonists. Prior to the American Revolution most of the dairy products were
consumed on the farm where they were produced. By about 1790, population centres
such as Boston, New York, and Philadelphia had grown sufficiently to become an
attractive market for larger-scale dairy operations. To meet the increased demand,
farmers began importing breeds of cattle that were better suited for milk production.
The first Holstein-Friedens were imported in 1795, the first Airsides in 1822, and the
first Guernseys in 1830.With the development of the dairy industry in the United
States, a variety of machines for processing milk were also developed.
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One of the first glass milk bottles was patented in 1884 by Dr. Henry Thatcher, after
seeing a milkman making deliveries from an open bucket into which a Childs filthy
rag doll had accidentally fallen.
NMPF provides a forum through which dairy farmers and their cooperatives
formulate policy on national issues that affect milk production and marketing. This
helps to improve the Economic well being of dairy farmers and assure the nation's
consumer an adequate supply of pure, wholesome milk and dairy products. However,
policy is just one area of the industry. NMPF also works with organization dedicated
to other areas of the industry, such as processing, consumer relations, research, trade,
and more. Learn about some of these organizations in the list below to see how their
roles support the nations dairy industry
DAIRY PRODUCTION
Milk has certain features that distinguish it from other agricultural products and shape
its production, processing and trade. As opposed to grains, milk is a bulky and heavy
commodity which requires high-cost storage and transportation as it spoil quickly
without cooling. Due to the fact that even the largest dairy farms cannot provide
adequate quantities to supply a processed the dairy industries in many countries are
organized along co-operative lines. Milk producer co-operatives bundle the interest
and supply of a large number of dairy farmers and strengthen their bargaining power
towards processors or even run their own processing plants. Over the last 24 years,
total words milk production has increased by 32 %, whereas per capita world milk
production has declined by nine percent which indicates that world milk production
has not kept pace with the increase in world population.
The decline in global milk production per capita can be attributed to falling
production in the developed countries where as per capita milk production in the
developing countries as slightly risen over the last 24 years as opposed to the trend
towards intensification of milk production in developed countries, production growth
in developing countries is to a large part due to increasing numbers of milk animals
and only to a small part due to productivity gains


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DAIRY INDUSTRY
Dairy companies all over the world face a number of changes and challenges which
are forcing them to reconsider their strategies. The most important challenges are a
growing demand for dairy products, with world demand growing by 2% a year or a
growing demand for dairy products with world demand growing by 2% a year or a
quantity equal to the entire annual production of Australia, coupled with concerns
about the milk supply growing at a slower pace than demand. Furthermore, dairy
companies face an increasing number of consumers requirements in combination with
increasing customer power food retailers, the food services industry and the food
processing industry are the key customers for dairy products.
The leading companies in the sector tend to be significantly larger than the players in
the dairy industry and the ongoing global consolidation process is further increasing
their market power. Consequently the concentration process by means of mergers,
acquisitions and strategic aliens in the dairy industry as been very pronounced and is
accepted to continue. As demand in dairy products is not rising and equal rates all
over the world but hardly at all the developed and strongly in some developing
reasons the challenges dairy companies face vary depending on the market they
operate in. companies operating in the big but mature dairy markets of Europe and
the US face limited market growth opportunities in voltmeters as per capita
conception levels are among the highest in the world and growth can only occur by
increasing market shares or suiting to higher value added products due to this limited
market opportunities in developed countries, multinational dairy companies are often
attracted by strong growth markets in developing countries. To benefit from the
growth of their own domestic markets, local companies while have to rice product
quality and efficiency to be able to with stand foreign computations.





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INDUSTRIAL 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.

India: World's Largest Milk Producer
India has become the world's No. 1 milk producing country, with output in 1999-
2000 (marketing year ending March 2000) forecasted at 78 million tonnes. United
States, where the milk production is anticipated to grow only marginally at 71 million
tonnes, occupied the top slot till 1997. In the year 1997, India's milk production was
on par with the U.S. at 71 million tonnes. The world milk production in 1998 at 557
million tonnes would continue the steady progress in recent years (see the below
Table). Furthermore, the annual rate of growth in milk production in India is between
5-6 per cent, against the worlds at 1 per cent. The steep rise in the growth pattern has
been attributed to a sustained expansion in domestic demand, although per capita
consumption is modest - at 70 kg of milk equivalent.
NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)
The National Dairy Development Board.( NDDB) was founded in 1965, with the
mission of organizing poor milk producers, thereby transforming dairying NDDB
stemmed from the vision of the prime minister of India, the late Lal Bahadur Shastri,
to extend the success of the caira cooperative milk producers union to other parts of
India. NDDB began its operations with the mission of making Dairying a vehicle to a
better future for millions of grass roots milk producers. The mission achieved trust
and direction with the lunching of Operations flood in 1970, a programmed
extending over 30 years and which used world bank loan to finance Indias
emergence as the worlds largest milk producing nation. During this period, dairy
commodity surpluses where building up in Europe imports from Europe had already
adversely affected the dairy industry in India. Individual players in India would have
resulted in a market glut and a fall in the prices throughout the country. With the
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backing of government policy, with the assistance of the World Food Program,
NDDB imported food aid in the form of milk powder and butter oil, and marketed it
under its own brand name. The surplus from these sales was invested in the expansion
of the cooperative movement in the dairy industry. Operation Floods third phase was
completed in 1996 and has to its credit a number of significant achievements. Since
its inception, the dairy board has planed and spare headed Indias dairy programmes
by placing dairy development in the hands of milk producer and the professionals
they employee to manage their cooperatives in additions, NDDB also promotes other
commodity Based cooperatives, allied industries and veterinary biological on an
intensive and nation-wide bases. NDDBs subsidiaries include Mother Dairy, Delhi.
THE GROWTH OF NDDB
NDDB has begun its operations with the mission of making dairying a vehicle to a
better a future for millions of gross roots milk producers. Since its establishment the
dairy development board has planned and spare headed Indias dairy programmer by
placing dairy development in the hands of milk producers and the professionals they
employee to manage their co-operative, allied industries and veterinary biologically
on and intensive and nationwide basis.
OBJECTIVES OF NDDB
To sponsor, promote, manage, acquire, construct or control any plant or work, which
promote projects of general public utility relation to dairying.
To make information available on request to technical services to increase
production of milk.
To prepare initial feasibility studies of dairying and other dairy related projects and
undertaken subsequent designing planning and start up those projects.
To undertaken research and development programme related to production and
marketing of milk and milk products.
To provide assistance for exchange of information to other international agencies





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SERVESES RENDER BY NDDB
Planning dairy and rural development projects.
Organization of former cooperative societies.
Setting up of dairy and cattle feed plants.
Manpower planning and training.


Objective of the study
To know the overall functioning of the organization.
To know the types of milk and how can it will be stored in the cold storage.
To study their marketing strategies and sales promotional activities.
To gain knowledge by practical exposure to the working environment in the
organization

SCOPE OF THE STUDY
This study is attempt to understand the organization as a whole and to study the
different departments in detail. The study is directed towards the understanding
of functions of different department.







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OVERVIEW OF THE ORGANIZATION
HISTORY

Karnataka co-operative milk producers federation limited (KMF) is the Apex Body in
Karnataka representing dairy formers co-operatives. It is the second largest dairy co-
operative amongst the dairy cooperatives in the country. In south India it stands first
in terms of procurement as well as sells. One of the core functions of the federation is
marketing of milk and milk products. The brand NADINI is the house hold name for
pure and fresh milk and milk products. KMF has 13 milk unions throughout the state
which procure milk from primary dairy co-operative societies and distribute milk to
the consumers in various Towns-Cities-Rural markets in Karnataka.
The first ever World Bank funded dairy development programmer in the country
started in Karnataka with the organization of Village Level Dairy Cooperative in
1974. The AMUL pattern of dairy cooperatives started functioning in Karnataka from
1974-75 with the financial assistance from World Bank, operation flood II & III. The
dairy cooperatives where established under the ANAND patter in a three tier structure
with the Village Level Dairy Cooperatives forming the base level, the district milk
unions at the middle level to take care of the procurement, processing and marketing
of milk and the Karnataka milk federations as the Apex body to coordinate the growth
of the sector at the state level. Coordinations of activates among the unions and
developing market for milk and milk products is the responsibility of KMF.
Marketing milk in the respective jurisdiction is organized by the respective milk
unions. Surplus- deficit of liquid milk among the member milk unions is monitored by
the federation. While the marketing of all the milk products is organized by KMF,
both within and outside the state, all the milk and milk products are sold under a
common brand name NANDIN.

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COMPANY PROFILE
Name : Bijapur and Bagalkot co-operative milk producers
Societies union Ltd.
Chairman : Shankar Gouda B Patil
Managing Director : Abdul Aziz Mulla
Address : Bijapur and Bagalkot co-operative milk producer
Societies union Ltd.
Bijapur Dairy, Bhutanal, Bijapur-586103
Phone: 08352-260060/260949
Fax: 08352-260061
E-mail: www.kmfnandini.coop
Registration Number : J.R.L9073:D.A.Y 1986-87/12-07-1986
Type of unit & constitution : Small Scale Co-operative unit
Main raw material : Milk
Manufacturing products : Toned Milk, Standard Milk, Full Cream Milk, Curd,
Ghee etc.
Company Bankers : BDCC bank Bijapur, Canar bank, corporation
Basaveshwar bank Bagalkot and Axis Bank

Co-operative Auditors : Assistant Director of Co-operative Audit.
Organization setup : 36 acres
Website : www.kmfnandini.coop
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VISION AND MISSION OF THE COMPANY
VISION
The company aims to produce world class quality thus adding value to the money
spent towards provisions of sustainable employment and contributes towards growth
of nation.
MISSION
Heralding economic, social and cultural prosperity in the lives of our milk producer
members by promoting vibrant, self-sustaining and holistic cooperative dairy develop.
strive hard to maximize the return to its members and to supply the quality milk and
milk product to the consumers to their satisfaction and provide necessary technical
inputs to enhance the milk production to ensure the financial viability of the union and
their by take the union into top most position in the cooperative dairy of Karnataka.
At BIMUL endeavor to satisfy the taste and nutritional requirement of the customers.
Through excellence in the marketing BIMUL are committed to offering quality
products that provide best value of money.
NATURE OF THE ORGANIZATION
The nature of the Bijapur and Bagalkot co-operative Milk producers societies union
Ltd.[BIMUL] is that procuring the milk from societies. And that milk will be bringing
through tankers and cans for various chilling centers those, which are near and
convenient to various societies.
The union processes the milk and market in urban area through by various agents. The
union providing services to milk producers technical inputs like veterinary services,
seeds, fodder etc. and also by giving training to former and also induction program.
The union strengthening of milk cooperative moments, organization of extension
activities and the rural development services.
The union also owns and operates the dairy plant cattle feed plant fodder and bull
others forms, semen collection station, and herd quarter center for animal husbandry
activities.
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The union also takes research, development and also other promotional activities for
the overall benefits of the former.
The union providing various product to market like toned milk. Full creamed milk,
along with cheese curd, ghee, pedha also providing.

BUSINESS VOLUME: 130 CORERS


NUMBER OF EMPLOYEES















SECTIONS EMPLOYEES
Production 10
Procurement and Input 25
Engineering Section 14
Transportation 1
Purchase department 2
MIS department 1
Store department 6
Marketing 16
Finance 8
Administrative 4
Security 6
New recruitment 36
Total 129
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PRODUCT LINE.



Karnatakas most favorite milk is Nandini toned fresh and pure
milk contains 3% fat available in 500 ml and 1 liter packs.
Quantity BIMUL
Distribution
Price
Distributors Margin
Price
Total
Price
500ml 30.72 1.28 32.00
1000ml
29.76 1.24 31.00
1. Pasteurized Toned Milk


Buffalos milk 100%pure pasteurized processed and packed
hygienically this milk has 5%fat available in 500ml and 1000ml
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
1000ml 36.50 3.50 40.00
500ml 34.56 1.44 36.00

2. Shubham Milk


Nutritious Creamy Milk with 4.5% fat and 8.5% SNF. Suitable for
all purpose. Available in 500ml and 1Litre pouches.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
1000ml 37.44 1.56 39.00
500ml 38.40 1.60 40.00

3. Samrudhi

Lassi is product of Nandini prepared out of curd and for it sugar
and flavor is added and it is available in all sessions. Available in
200 ml sachet.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
200ml 7.50 1.50 9.00

4.Sweet Lasssi
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Mango Lassi is product of Nandini prepared out of curd and for it
sugar and Mango flavor is added and it is available in all sessions.
Available in 200 ml sachet.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
200ml 10.00 2.00 12.00

5. Mango Lassi

Fresh curd that tastes just like traditional home-made curd. Can be
Consumed as such or in Combination with cooked rice or added as
an ingredient in certain dishes. Available in 200gm and 500 gm
Pouches.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
500ml 33.12 2.88 36.00
200ml 36.25 3.75 40.00

6. Curd

Attractive packing with a stand-alone bottom surface. Easy to store
in racks. Available in 200ml Standby Pouches and 15Kg Tin.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
500ml 329.36 33.64 364
200ml 36.36 33.64 74.00
15Kg Tin 3470 170.00 3640

7.Ghee in Standy Pouches

Nandini peda is made from pure milk. Scored at room temperature,
Approximately 7 days. Available in 250 gms. Pack containing 10
pieces each.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
100gm 267.86 32.14 300.00

8. Pure Milk Peda

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ORGANIZATION STRUCTURE OF WHOLE FIRM






















Chairman
Managing director
Procurement
department
Production
departmen
t
Finance
department
Administration
department
Marketing
department
Deputy
Manager
Deputy Manager
Deputy Manager Manager
Accounts
superintend
Superintenden
t
Assistant
manager
Deputy
Manager
Assistant
manager
engineering
Clerks and
computer
operators
Assistants
Marketing
superdent
Assistant
manager
Mechanical
assistant
Marketing
assistant
Clerks and
computer
operators

Extension
officer
Clerks and
computer
operators
Clerks and
computer
operators.
operator
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Chairman
Managing director
Purchase department Stores department Engineering
department
MIS department
Assistant
Clerks & computer
operators
Stores superintendent
Helpers
Assistant manager
Supervisor
Technician
In-charge officer
Clerk
Helpers
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PROCUREMENT DEPARTMENT
Procurement is an important department in the organization. It deals with procurement
of milk and takes. It as input for final production. The demand for milk and milk
products as been increasing and to meet for the same, only procurement of milk
through societies is not sufficient

The Union has Adopted Sources of Procurement like
1. Milk procured from societies 100%
2. The milk collected at district cooperative societies are picked by milk vans and
brought to the main unit that is, BIMUL in 40 liters cans.

FUNCTIONS:
First aid facility provided to the animals freely from the organization.
They provide cattle feed / quality fodder to the farmer animals like cow and
buffalo to feed those animals at subsidized rate.
Opening of new dairy cooperative societies.
To procure good milk at dairy cooperative societies
To check the record maintained at dairy cooperative societies..
To organize meetings at dairy cooperative societies level.









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4
PRODUCTION DEPARTMENT
Production is the conversion of raw material in to finished products. At BIMUL,
Production department is well planed and adequately equipped manufacturing set up
where the entire necessary infrastructure is available. In BIMUL, the raw milk is
processed to form the good quality of milk. During the processing, the milk is
differentiated depending on the contract of fat and SNF (solids not fat)
Production process has the following workflow chart












Formula for finding fat
Solid net fat= CLR+0.35xFAT+0.25





DCS
Fresh Liquid Milk
Chilling
Storing
Pasteurization
Storing
Sample
Testing
Fat and SNF
Separation
Homogenization

Packing
Dispatching
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Ghee Making Process Chart








Peda Making Process Chart








FUNCTIONS:
To convert input into out put
Conducting various test for milk brought from district cooperative societies by milk
vans to BIMUL and storing the milk brought from district cooperative societies at
BIMUL in SILOS (storing tank).
Pasteurization of milk and others process carried out.
Packing of milk.
Store the packed milk packets in which are maintained at 5 degree centigrade.
Butter
Storage
Ghee
Boiler
Butter
Melting
Ghee
Settling
Ghee
Package
Dispatch
Steam
Peda Vat
Milk
Packing
FGS
Distribution
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STORES DEPARTMENT
It is a department where all the raw materials, semi finished and finished products are
stored. Apart from these stationary and other goods are also stored. In BIMUL at store
department various good, which are required daily, are stored .the goods include
books, packing materials, raw materials etc .every department is in touch with the
stores department for obtaining materials which they require .it is maintained by
stores officer, stores department uses codex (coded control systems).

Functions:
1. Maintaining all the records of goods.
2. Maintain that all the raw materials and packing materials which have to be there in the
particular time after the order is given.
3. Maintainers all the records of goods and use the necessary details to the
administration.
4. Checking all the materials before storing godown.
5. Proper classification of materials.
6. To see the maximum and minimum level of goods.


MANAGEMENT INFORMATION SYSTEM (MIS) DEPARTMENT:
Management information System is called MIS at BIMUL has been installed recently.
This department through having the capacity to help in decision making process; it is
kept as a separate department where in all the information is available.
MIS at BIMUL is working smoothly by gathering daily information from the entire
department, like procurement of milk, marketing of milk, administration, store,
finance, etc. It is a computer based information system.
Functions:
1. To maintain daily reports.
2. To maintain information regarding input and output.
3. Maintain town wise sales report.
4. Report regarding procurement and input.
5. Maintaining accounts of daily purchasing.

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ADMINISTRATIVE DEPARTMENT:
It covers all the section of the Co-operative in case of overall administration. This
department acts as the HR department and takes care that the employees are satisfied
with their present work and are working efficiently with their respective authority and
accountability. It looks after the welfare schemes of the employees of the whole dairy.
The employees are given a pair of shoes, uniform, etc. Once in a year. All these kind of
allowances act as a source of motivation to the employees. At BIMUL, there are
permanent workers and labours and also contract labours are paid daily wages and a
separate register is maintained for them. The general shift of the dairy is from 9.30am to
5.30 pm and there are 3 shifts per day and 8 hours working for a person as per the shifts.

Functions
1. Recruit the candidates and select the suitable candidates for the job.
2. Conduct the training to the new employs as well as to the existing employees.
3. Maintain shift timing ,etc
4. Maintains of attendance and service records.
5. Establishment of billing.
6. Establishment officer maintains all records of all departments.

Security department
Bijapur Milk Union occupies 36 acres of land the whole premise is been guarded by
the security personnel. The security people work in three shifts. All the vehicles are
checked before entering the premise. The departments is also maintains separate
registers like Store-in Register, Attendance register etc.






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FINANCE DEPARTMENT
Every organization has main aim to maximize its profits by selling better quality goods at
good rates and achieve consumer satisfaction. Finance is an important aspect of business
which helps in smooth functioning of activities of business if there is proper cash flow.
The main activity of the finance department is to keep all the account of the financial
transaction. It is responsible for maintaining up to date accounts. BEMUL is a co-
operative dairy which maintains good accounting system, they use tally software for
computerized accounting.
Functions:
1. Finance head with the assistance of his staff maintains all the records required to be
maintained as per rules.
2. Cashier collects the amount/ cheques and deposit in bank on day to day basis.
3. Paying taxes and insurance in time.
4. Maintain liquidity of assets properly to earn maximum profit.
5. Maintain proper accounts for milk purchased and sold every day.
6. Maintaining of general ledgers and store books etc.
7. Taxation work i.e. payment of taxes as per law and filling returns regularly.
8. Liaison with internal auditors, govt auditors, KMF, taxation authorities, ESI,EPF,LIC
and other authorities.
PURCHASE DEPARTMENT
Purchase department is most essential department in every organisation which is required
to carry out all purchase activities of the organisation. Purchase department purchases all
materials required by the organisation. Its main function is to purchase good quality milk
at competitive rates. First the search for good suppliers, who can supply better quality
milk and other requirements of the organisation at lower price.

Functions
1. Proper selection of suppliers.
2. Placing order for purchase.
3. Follow up with suppliers for delivery dates.
4. Obtaining milk at the best price.
5. Conducting market research for purchase.

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MARKETING DEPARTMENT
Marketing department occupies a important position in the organization. It is the
process of discovering and translating consumer wants into products and services. In
BIMUL marketing department functioning the best one and has reached all most all
areas under Bijapur district, this department at BIMUL looks on to supply quality
milk to customers of Bijapur district.
The marketing department of BIMUL is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational goals. It covers an area namely,
Bijapur, Bagalkot dist. , and Jamakhandi

ORGANISATION STRUCTURE OF MARKETING DEPARTMENT









Marketing Operations at BIMUL
1. Checking daily sales as per the respective agents.
2. Finding new areas where there is demand for milk.
3. Issuing tender and receiving application for opening new parlors and agencies.
4. Fixing/organizing milk distribution routes.
5. Sending of milk / milk products as per the indent.
6. Keeping in track of the timing of vehicles and timely supply of milk.
7. Collection of cash from agents and depositing the same to the milk.
8. Attending complaints from the agents.
9. Meeting agents to solve their problems.
10. Draw new advertising strategy.
Deputy Manager Bijapur Deputy Manager Bagalkot
Assistant manager Accountant
Marketing superdent
Marketing assistant
FGS
Marketing superdent
Marketing assistant
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BEC- Department of Management Studies Page 25

Number of employees working in marketing department-16

Functions:
1. To prepare the marketing plan at the beginning of every year, taking into
consideration the demand, sales, production capacity.
2. To undertake promotional activities in order to create awareness and to generate the
sales, to ensure proper supply chain management.
3. Manager prepares the marketing and advertising plans, product price, etc.
4. Clerk and helpers check on the sales, money transaction from their customers, to
increase market share of Nandini.
5. To be responsive to consumers and the channel members.
6. Proper distribution, maintaining good relation with the dealers.
7. Maintains of complaint book and suggestion book and forecasting new area where
there is need of milk.
8. Issue tender and receive applications for opening new parlours and agency.
9. Getting feedback from customers and agents.















Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 26

Functions of marketing department
Marketing strategy
Marketing strategy is defined by David Aaker as a process that can allow an
organization to concentrate its resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive advantage. Marketing
strategy includes all basic and long-term activities in the field of marketing that deal
with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies and therefore contributes to the
goals of the company and its marketing objectives.
Improving the market in the Bijapur district and Improve visibility and availability of
milk they first collect the milk from different societies through agents. Adds
hoardings, wall paintings and setting up parlous. Assigning sales target for field
officer Facilitate door delivery of milk through milk retailers. Penetrate the new
markets by rescheduling the existing milk distribution routes. Concentrate more on
institutional milk supplies like hotels, marriage and function hall. Proposed to
reschedule milk distribution routes to cover the uncovered area in both cities. To
improve their market they mainly concentrate more on advertisement and offers in all
festivals to attract customers, conducting consumer awareness programs and womens
associations.

PRODUCTION PLANNING DEVELOPMENT AND MANAGEMENT
Product Planning is the ongoing process of identifying and articulating market
requirements that define a products feature set.
Product planning serves as the basis for decisions about price, distribution and
promotion. Product planning is the process of creating a product idea and following
through on it until the product is introduced to the market. Additionally, a small
company must have an exit strategy for its product in case the product does not sell.
Product planning entails managing the product throughout its life using various
marketing strategies, including product extensions or improvements, increased
distribution, price changes and promotions.
Bijapur and Bagalkot co-operative milk producers societies union Ltd.
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Phases of product planning
Developing the product concept
The first phase of product planning is developing the product concept. Marketing
managers usually create ideas for new products by identifying certain problems that
consumers must solve or various customer needs.
Studying the market
The next step in the product planning process is studying the competition. Secondary
research usually provides details on key competitors and their market share, which is
the percent of total sales that they hold in the marketplace. They also do a SWOT
analysis (strengths, weaknesses, opportunities and threats, which will help them
compare their strengths and weaknesses against those of key competitors. The
business can then determine places in which it has an advantage over the competition
to identify areas of opportunity.
Market research
A small company should consider doing both qualitative and quantitative marketing
research for the awareness of the products.
While working I observed that they dont did any survey or research. The ISO
[INDIAN STANDARD ORGANISATION] met the BIMUL and order that must
conduct the survey and keep all record, and do it once in a year or twice.
Product introduction
If the survey results prove favorable, the company may decide to sell the new product
on a small scale or regional basis. During this time, the company will distribute the
products in one or more cities. The company will run advertisements and sales
promotions for the product, tracking sales results to determine the products potential
success. If sales figures are favorable, the company will then expand distribution even
further. Eventually, the company may be able to sell the product on a national basis.
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Product life cycle
Product planning must also include managing the product through various stages of its
product life cycle. These stages include the introduction, growth, maturity and decline stages.
Sales are usually strong during the growth phase, while competition is low. However,
continued success of the product will pique the interest of competitors, which will develop
products of their own. The introduction of these competitive products may force a small
company to lower its price. This low pricing strategy may help prevent the small company
from losing market share. The company may also decide to better differentiate its product to
keep its prices steady. For example, a small cell phone company may develop new, useful
features on its cell phones that competitors do not have.
Product management is an organizational lifecycle function within a company
dealing with the planning, forecasting, and production, or marketing of a product or
products at all stages of the product lifecycle.
The role may consist of product development and product marketing, which are
different efforts, with the objective of maximizing sales revenues, market share, and
profit margins. The product manager is often responsible for analyzing market
conditions and defining features or functions of a product. The role of product
management spans many activities from strategic to tactical and varies based on the
organizational structure of the company. Product management can be a function
separate on its own, or a member of marketing or engineering.
While involved with the entire product lifecycle, the product management's main
focus is on driving new product development. According to the Product Development
and Management Association (PDMA), superior and differentiated new products
ones that deliver unique benefits and superior value to the customer are the number
one driver of success and product profitability.

Product management often serves an inter-disciplinary role, bridging gaps within the
company between teams of different expertise, most notably between engineering-
oriented teams and commercially oriented teams. For example, product managers
often translate business objectives set for a product by Marketing or Sales into
engineering requirements (sometimes called a Technical Specification). Conversely
they may work to explain the capabilities and limitations of the finished product back
Bijapur and Bagalkot co-operative milk producers societies union Ltd.
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to Marketing and Sales (sometimes called a Commercial Specification). Product
Managers may also have one or more direct reports who manage operational tasks
and/or a Change Manager who can oversee new initiatives. Where manufacturing is
separate from the research function, the product manager has the responsibility to
bridge the gaps if any exist.

Pricing strategy
Pricing strategy is very crucial part in BIMUL. Usually do not set a single price, but
rather develop a price that reflect various geographical demand and costs, market-
segment requirements purchase timing and order levels, delivery frequency, and other
factor. So here we examine several price-adoption strategies.
Cost plus pricing: The most common way for businesses to decide on a price. Add
up the cost of the raw materials and labor that have gone into making the product to
determine its cost. Then add on an element of profit over and above the cost mark up.
They are following cost of production method. According to raw material
price, agents, commission, electricity bill, expenditure, variable and fixed overheads
transportation, the price will be fixed.
Price Strategy
According to quality of the product and after considering all fixed and
variable expenses, the final price is arrived







Bijapur and Bagalkot co-operative milk producers societies union Ltd.
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Distribution strategy
The milk is obtained from farmers by their cows and buffalos and then reaches the
dairy co-operative societies where milk is taken from them and amount is paid to
farmers for procuring milk and from dairy co-operative societies milk is brought to
main dairy in milk vans or other hired vehicles and milk passed to various processes
until it is packed and stored in coiled room maintained at 5 degree centigrade and
even the milk products pass through various process and are packed and ready for
dispatch and from there it is transported by milk vans or hired vehicles to their
respective dealers or agents who are appointed . From the agents the packed milk and
its are sent to the retail outlet/milk parlours for sales which are purchased by
customers.

Promotional strategy
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.
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The following are the major promotional activities carried over by KMF:

Advertisements
Magazines
Hoardings
Ad boards
Banners
Dealer displays
Television


Awareness campaigns
Door to door
Mass campaign




Door to door campaigns
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.
These types of campaigns are organized in Melas, Fairs, and in sponsored programs
like Mahila Mandal programs, functions in school and colleges etc... Compared to
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door to door campaign, the mass campaigns are less expensive and less time
consuming. But the results of mass campaigns are not so favorable as of door to door
campaigns.
BRAND AMBASSADORS
Puneet Rajkumar
Ragini

PRODUCT LINE



Karnatakas most favorite milk is Nandini toned fresh and pure milk
contains 3% fat available in 500 ml and 1 liter packs.
Quantity BIMUL
Distribution
Price
Distributors Margin
Price
Total
Price
500ml 30.72 1.28 32.00
1000ml
29.76 1.24 31.00
1. Pasteurized Toned Milk


Buffalos milk 100%pure pasteurized processed and packed
hygienically this milk has 5%fat available in 500ml and 1000ml
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
1000ml 36.50 3.50 40.00
500ml 34.56 1.44 36.00

2. Shubham Milk


Nutritious Creamy Milk with 4.5% fat and 8.5% SNF. Suitable for
all purpose. Available in 500ml and 1Litre pouches.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
1000ml 37.44 1.56 39.00
500ml 38.40 1.60 40.00

3. Samrudhi
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Lassi is product of Nandini prepared out of curd and for it sugar and
flavor is added and it is available in all sessions. Available in 200
ml sachet.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
200ml 7.50 1.50 9.00

4.Sweet Lasssi

Mango Lassi is product of Nandini prepared out of curd and for it
sugar and Mango flavor is added and it is available in all sessions.
Available in 200 ml sachet.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
200ml 10.00 2.00 12.00

5. Mango Lassi

Fresh curd that tastes just like traditional home-made curd. Can be
Consumed as such or in Combination with cooked rice or added as
an ingredient in certain dishes. Available in 200gm and 500 gm
Pouches.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
500ml 33.12 2.88 36.00
200ml 36.25 3.75 40.00

6. Curd

Attractive packing with a stand-alone bottom surface. Easy to store
in racks. Available in 200ml Standby Pouches and 15Kg Tin.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
500ml 329.36 33.64 364
200ml 36.36 33.64 74.00
15Kg Tin 3470 170.00 3640


7.Ghee in Standy Pouches

Bijapur and Bagalkot co-operative milk producers societies union Ltd.
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Nandini peda is made from pure milk. Scored at room temperature,
Approximately 7 days. Available in 250 gms. Pack containing 10
pieces each.
Quantity BIMUL
Distribution
Price
Distributor
Margin Price
Total Price
100gm 267.86 32.14 300.00

8. Pure Milk Peda

SUCCESS & FAILURES OF PRODUCTS
Major competitors
Dudh Pandari
Arogya
Shivam
Shri Krishna
Govinda
Swabhiman
Warana
Dolda
Aditya
Saras
Basava milk



FUTURE PROSPECTS OF THE ORGANIZATION
Expansion of market to Sholapur city to Maharashtra state
Implementation of new dairy to 50TCPD at Bagalkot
Proposed to establish 50TCPD UHT milk plant at Bijapur
Enlarging milk procurement from 1KLPD to 1.5KLPD
Enlargement of milk sales 55KLPD to 1lakh TLPD



Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 35

WEAKNESSES OF MARKETING DEPARTMENT
Majority of the Nandini dealers are not loyal.
Sales based on agents intent.
Perishable commodity. Milk is perishable commodity it cannot be store in long
time.
Learning experience:
It was great experience to work in the manufacturing industry, which is my area of
interest and it was great experience working in the Bijapur and Bagalkot co-
operative milk producers societies union Ltd. where I have learnt many things
about the functioning of an organization.
Practically what I learnt in In-plant training is extremely gives me pleasure. The
marketing concept like advertising and promotional strategy these are my practical
experiences in In-Plant training. And also learnt the organization structure of
marketing department. Duties and responsibilities of area development councilor,
Root agents. I worked with Customer executive officer konnalli sir and collect the
information about competitor for 3days in the Bijapur city. It helps me lot to how to
behave with the customers.
1] Got complete knowledge of quality testing of milk.
Milk is collected from the all milk societies and from villages. Samples of milk are
taken from farm vats prior to collection and from the bulk milk tanker upon arrival at
the factory. Samples from the bulk milk tanker are tested for antibiotics and
temperature before the milk enters the factory processing area. Farm milk samples are
tested for milk fat, protein, bulk milk cell count and bacteria count. If milk does not
meet quality standards it is rejected. Most farmers are paid on the quality and
composition of their milk.
Whole milk, once ready for use, is pumped into storage silos where it undergoes
pasteurization, homogenization, separation and further processing.

Pasteurization: Involves heating every particle of milk to a specific temperature for a
specified period of time and cooling it again without allowing recontamination.
Bijapur and Bagalkot co-operative milk producers societies union Ltd.
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Homogenization: Involves pushing the raw milk through an atomizer to form tiny
particles so that the fat is dispersed evenly throughout the milk, stopping the fat from
floating to the top of the container.
Separation: Involves spinning milk through a centrifuge to separate the cream from
the milk. After separation, the cream and remaining milk are remixed to provide the
desired fat content for the different types of milk being produced.

2] Learn about the various packing system of milk and its products
Now the milk is ready to be packaged for delivery to the stores. The milk travels
through pipes to the automatic packaging machines that fills and seals the milk into
paper cartons or plastic jugs. As the containers move through the assembly line, a date
is printed on each of them to show how long the milk will stay fresh.
3] Learnt about the marketing strategy and sales promotion.
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
BIMUL found the need for adopting the promotional activities in order to create
awareness about the product. The company has undertaken various promotional
activities in order to increase the market share of its Milk and Milk products. Like,

Advertisements
Magazines
Hoardings
Ad boards
Banners
Dealer displays
Television

Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 37


4] Learnt about distribution channels it contains wide area of networking
The milk is obtained from farmers by their cows and buffalos and then reaches the
dairy co-operative societies where milk is taken from them and amount is paid to
farmers for procuring milk and from dairy co-operative societies milk is brought to
main dairy in milk vans or other hired vehicles and milk passed to various processes
until it is packed and stored in coiled room maintained at 5 degree centigrade and
even the milk products pass through various process and are packed and ready for
dispatch and from there it is transported by milk vans or hired vehicles to their
respective dealers or agents who are appointed . From the agents the packed milk and
its are sent to the retail outlet/milk parlours for sales which are purchased by
customers.
There is a good relationship between management and the employees and among the
co-worker which is very important and it is plus point to the organization.












Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 38

SUGGESTIONS
1] Organization should try to improve the packing of the product to prevent leakage
I observed that in BIMUL there is leakage in packaging and daily about 20-30leeters of
milk is going to waste without use. So by using or adopting proper technology they can
prevent the leakage and it helps to improve production to survive in this competitive
market.
2] Award annually to encourage employees and agents/dealers
In BIMUL they adopted sales on agents/dealers indents, so if the company provides some
awards like offers in case of sales is more, discount on sale, and allowances.
The retailer and dealers should be satisfied. To some extent commission and credit
facility is to be given to retailers and dealers so that they can be satisfied improve the
sales in the market. And also the Company should provide some attractive scheme for all
regular consumer as well as seller.
3] There is a scope for improvement of quality and brand image as there is a huge
competition in the market.
Comparing to other brands BIMUL has very well goodwill in the market. Even though it
is facing some problems because of good wills and other brands, it tries to create
awareness, provide good service with good quality milk as well as it should motivate
dealers.
4] Try to maintain the cleanliness in production department because of bad smell
and also concentrate on wastage of milk.
5] To create awareness about the products in the market. Company has to
concentrate not only on the advertising of milk but also on other products like
butter milk, gee, peda.



Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 39

Conclusion:
Lastly to conclude it was a great experience to work at BIMUL. I got the meaning about
real market. I came to know about the marketing strategies of BIMUL.
Comparing to other brands BIMUL has very well goodwill in the market. Even though it
is facing some problems because of good wills and other brands, it tries to create
awareness, provide good service with good quality milk as well as it should motivate
dealers.
I have found that BIMUL is a good producer of milk in the Bijapur. All workers and staff
of the union have encouraging nature which helps to reach their goals.















Bijapur and Bagalkot co-operative milk producers societies union Ltd.
BEC- Department of Management Studies Page 40

References and sources used
WWW.Kmfnandini.com
WWW.NDDB.com
Google.com