Professional Documents
Culture Documents
Summer Internship Project On
Summer Internship Project On
At
1
ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the
project would be incomplete without the mention of the people who made it
possible.
I would also thank my Institution and my faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to
my family and well-wishers.
2
BONAFIDE DECLARATION
I hereby declare that this project report on, “Understanding of Home Delivery
Milk Sales through Card System” at Mother dairy Fruit and Vegetable Pvt Ltd.,
Hyderabad, which is being submitted in partial fulfilment of the requirements
for the award of the Post Graduate Diploma in Management 2012-14, is the
result of the work carried out by me, under the mentorship of to Mr. Srinivasa
Raju (DGM, Sales) and guidance of Mr. Mohammad Shuyeb (Regional Brand
Manager ) of Mother Dairy Fruit &Vegetables Pvt. Ltd.
I further submit that this project work has not been submitted to the Mother
Dairy Fruit &Vegetable Pvt. Ltd before or after for any other purpose.
---------------------------------
--------------------------
Self – Signature
-------------------------------
Date--/--/2013
3
EXECUTIVE SUMMARY
This project focuses on finding out right awareness, percentage of milk sales on
Card, benefits and challenges of Card system to consumers, agents and
development of SOP for the same. The project was started on 15th of ay, 2013
after knowing all the relevant information about the milk sales through card
system, and distribution channels, under the guidance of Mr. Srinivas Raju
(DGM Sales) and Mr. Mohammad Shuyeb (Assistant Brand Manager). The
summer internship project includes the study of retailers (agents) and consumers
in the Hyderabad region to know their awareness, understanding, perception of
agents and consumers towards sale of milk on card system with home delivery
and through retail. For this I used the method of personal interviews and
questionnaires both for agents as well as the consumers. The sample size of
consumers and agents were 300 and 200 respectively to carry out the personal
interview.
The second part of my project involves the study of agents, dealing in mother
dairy as well as competitor brands through the scope of home delivery & Card
System and their problem areas in context with the card system.
4
TABLE OF CONTENT
5. Research Methodology 22
6. Data analysis results and Interpretation 25
7. Findings & Recommendations 40
9. Conclusion 50
10. Bibliography & Webliography 51
11. Annexure 52
5
INTRODUCTION
Milk production in India has doubled and has reached the 116.2 million tonnes
a year thus becoming India’s No.1 farm commodity. The current market size of
the dairy industry is INR 2.6 trillion and is estimated to grow up to INR 3.7
trillion by 2015. So there is stiff competition among the business organizations
dealing with milk and milk products in Hyderabad to become the market leader.
The players are putting their strenuous efforts to retain the existing consumers
and capture the new market and for this milk sale on Card System is one of the
method. Mother Dairy is not far behind in the competition and hence the
objective of this project is understanding of milk sales on card system with
home delivery as well as through retail.
This project will help the company in getting idea about the awareness of Card
System to consumers and retailers and to analyse the factors which influence
consumer to buy or not buy milk on Card System. This project also reveals the
benefits and problem faced by retailers and consumers on Card System. This
project provides a clear picture to company about Card System and by taking
help of this project company can make strategies to retain their existing card
holder consumer and make new consumers.
6
INDUSTRY AND COMPANY OVERVIEW
The dairy industry in India has been on a steady path of progression since
Indian independence. It has grown from producing 17 million tonnes of milk in
1951 to producing 121 million tonnes in 2011. Today, India is one of the largest
milk producing countries in the world. This solid progress is primarily
attributable to structural changes in the Indian dairy industry brought about by
the advent of dairy cooperatives.
The Indian dairy industry reported a market size of USD 48.5 billion in
FY2011. With a Compound Annual Growth Rate (CAGR) of 16 percent, it is
anticipated to reach USD 118 billion in 2017. On the back of a rise in
disposable income, coupled with strong demand for dairy products, the Indian
dairy industry is all set to experience high growth rates in the next five years.
Despite being the one of the largest milk producing countries in the world, India
accounts for a negligible share in the worldwide dairy trade. The ever increasing
rise in domestic demand for dairy products and a large demand-supply gap
could lead India to be a net importer of dairy products in the near future.
Beginning of organized milk handling was made in India with the establishment
of Military Dairy Farms. Handling of milk in Co-operative Milk Unions
7
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) etc.
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.
Per capita availability of milk presently is 290 grams per day, up from
112 grams per day in 1968-69.
2.2.2 Innovation
The annual value of India's milk production amounts to about Rs. 900
millions.
8
Dairy Farming is the single largest contributor to the economy(4% of
GDP & 26% of agricultural GDP).
Ensuring Quality
9
2.3 COMPANY PROFILE
Mother Dairy was set up in 1974 under the Operation Flood Programme, a
wholly owned subsidiary of the National Dairy Development Board (NDDB).
Mother Dairy markets approximately 3.2 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy milk has a
market share of 66% in the branded sector in Delhi where it sells 2.5 million
liters of milk daily and undertakes its marketing operations through around
1400 retail outlets and over 1000 exclusive outlets of Mother Dairy.
It is Mother Dairy’s constant endeavour to: Mother Dairy milk has a market share of
66% in the bra
Ensure that milk producers and farmers regularly and continually receive
market prices by offering quality milk, milk products and other food
products to consumers at competitive prices. To ensure this Mother
Dairy operates such that the farmer gets 85% of the total cost of sales.
Safal is the market leader in the organized fruit & vegetable retail business in
Delhi NCR where it sells an average of 300 MT/day through a network of 350+
exclusive retail outlets under brand name Safal/ Safal Pure Veg, supported by a
state-of-the-art large and ultramodern Central Distribution Facility located in
Delhi with an annual capacity to handle and process 2,00,000 MT of fresh fruits
and vegetables. Safal today operates the largest number of F&V Stores in Delhi
10
NCR and has further expansion plans in place. Retail Outlets are also present in
Bangalore under the brand name Safal Daily Fresh.
Safal has a prominent presence in Export market spread across 40 countries viz.,
USA, Europe, Russia, Middle East, Asia and Africa and exports Fresh Fruits &
Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp & Concentrate,
Frozen Fruits & Vegetables, etc. A state-of-the-art fruit processing plant of fruit
handling capacity of 15,000 MT annually, setup in 1996 at Mumbai supplies
quality products in the international market. With increasing demand another
state-of-the-art fruit processing plant has been set up at Bangalore with fruit
handling capacity of around 50,000 MT annually.
The Dhara range of edible oils is marketed by Mother Dairy. Today it is one of
the leading brand of edible oils and is available across the country in over 2,
00,000 outlets. The brand is known for its PURITY and focuses on the
indigenous oil. The brand is currently available in the following variants:
Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined
Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil
The main stakeholder of Mother Dairy was the farmer member for whose
welfare it existed. Unlike other organizations, their objective is not to maximize
the profit. They are more interested in giving the best price for the farmers for
their milk than in making a large profit. Thus they look at the price given to
their suppliers as not a cost but as an objective.
Mother Dairy had, as its main objective, “carrying out activities for the
economic development of agriculturists by efficiently organizing marketing of
milk and dairy produce, agricultural produce in raw and/or processed form and
other allied produce”. This was to be done through:
Common branding
Centralized marketing
11
Ensure that milk producers and farmers regularly and continually receive
market prices by offering quality milk, milk products and other food
products to consumers at competitive prices and;
The biggest strength of Mother Dairy was the trust it had created in the minds of
its consumers regarding the quality of its products. NDDB, and its brand Mother
Dairy, stood for guaranteed purity of whatever products it had produced.
Adulteration was simply not done in any of its products. In India, where such
trust was hard to come by, this could provide a central anchor for Mother
Dairy’s future business plans. For more than 40 years' Mother Dairy helping to
create a national network has been adapted and extended to other commodities
and areas. Their constant effort to learn and to enrich experience is central to
their approach and capacities. In times to come, Mother Dairy shall strive to
become a leading player in the food industry in India.
12
2.4 MOTHER DAIRY, HYDERABAD
Mother Dairy started its operation in Hyderabad in the year 2005 as a part
of Andhra Pradesh Dairy Development Cooperative Federation Ltd
(APDDCF)
Mother Dairy has launched milk and curd in Hyderabad market with milk
having three variants namely Full Cream Milk (FCM), Toned Milk (TM),
and Double Toned Milk (DTM). They are available in the size ranges of
200ml, 500ml, and 1liter.While curd is available only in the range of
200ml.
13
Mother Dairy defines its sales in three different regions namely
Hyderabad, Secunderabad and Upcountry region.
14
2.4.1 DISTRIBUTION CHANNEL OF MOTHER DAIRY:-
Nallagunda Ranga-Reddy
District District
Milk Milk
NARMAC
PLANT
Processed milk
Transporter cum
Distributors (TCD)
RA SH MB RA SH MB
RA SH MB
AA BB
A
END CONSUMERS
15
OBJECTIVE AND SCOPE OF STUDY
• To find out the awareness of retailers and consumers about Card System.
• To analyze the consumers and retailer’s perception about the card system.
• To find out factors which influence a consumer to buy milk through Card
System(Retail and home delivery)
• To analyze the reasons for not buying milk on Card System inspite of
the awareness.
16
LITERATURE REVIEW
The dairy industry involves processing raw milk into products such as consumer
milk, butter, cheese, yogurt, condensed milk, dried milk (milk powder), and ice
cream, using processes such as chilling, pasteurization, and homogenization.
Typical by-products include buttermilk, whey, and their derivatives. While most
countries produce their own milk products, the structure of the dairy industry
varies in different parts of the world. In major milk-producing countries most
milk is distributed through wholesale markets. In developing countries, the past
practice of farmers marketing milk in their own neighbourhoods is changing
rapidly. Notable developments include considerable foreign investment in the
dairy industry and a growing role for dairy cooperatives. Output of milk is
growing rapidly in such countries and presents a major source of income growth
for many farmers. Dairy plants process the raw milk they receive from farmers
so as to extend its marketable life. Two main types of processes are employed:
heat treatment to ensure the safety of milk for human consumption and to
lengthen its shelf-life, and dehydrating dairy products such as butter, hard
cheese and milk powders so that they can be stored.
17
Asia-Pacific is projected to increase at a compounded annual growth rate of
about 5.0% over the years 2007 through 2015.
Programme implementation:
Operation Flood was implemented in three phases.
Phase- I
Phase I (1970-1980) was financed by the sale of skimmed milk powder and
butter oil gifted by the European Union then EEC through the World Food
Programme. NDDB planned the programme and negotiated the details of EEC
assistance.
During its first phase, Operation Flood linked 18 of India's premier milk sheds
with consumers in India's four major metropolitan cities: Delhi, Mumbai,
Calcutta and Chennai.
Phase- II
Operation Flood's Phase II (1981-85) increased the milk sheds from 18 to136;
290 urban markets expanded the outlets for milk. By the end of1985, a self
sustaining system of 43,000 village cooperatives covering 4.25 million milk
producers had become a reality. Domestic milk powder production increased
from 22,000 tons in the pre-project year to 140,000 tons by 1989, all of the
increase coming from dairies set up under Operation Flood. In this way EEC
gifts and World Bank loan helped to promote self-reliance. Direct marketing of
milk by producers’ cooperatives increased by several million liters a day.
Phase-III
Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the
infrastructure required to procure and market increasing volumes of milk.
Veterinary first-aid health care services, feed and artificial insemination services
for cooperative members were extended, along with intensified member
education.
Operation Flood's Phase III consolidated India's dairy cooperative movement,
adding 30,000 new dairy cooperatives to the 42,000 existing societies organized
during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of
women members and Woman’s Dairy Cooperative Societies increasing
significantly.
From the outset, Operation Flood was conceived and implemented as much
more than a dairy programme. Rather, dairying was seen as an instrument of
development, generating employment and regular incomes for millions of rural
18
people. "Operation flood can be viewed as a twenty year experiment confirming
the Rural Development Vision" (World Bank Report 1997c.)
The National Dairy and Development Board was founded in 1965, with the
mission of organizing poor milk producers, thereby transforming dairying into
an instrument for the economic development of India’s rural people. The
formation of the NDDB stemmed from the vision of the then Prime Minister of
India, the late Lal Bahadur Shastri, to extend the success of the Kaira
Cooperative Milk Producer’s Union (in the state of Mother) to other parts of
India.
NDDB began its operations with the mission of making dairying a vehicle to a
better future for millions of grassroots milk producers. The mission achieved
thrust and direction with the launching of "Operation Flood" in 1970, a
programme extending over 30 years and which used World Bank loan to
finance India's emergence as the world's largest milk producing nation. During
this period, dairy commodity surpluses were building up in Europe. Imports
from Europe had already adversely affected the dairy industry in India. Imports
by individual players in India would have resulted in a market glut and a fall in
the prices throughout the country. With the backing of government policy, and
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 Flood's third phase was completed in
1996 and has to its credit a number of significant achievements.
Since its inception, the Dairy Board has planned and spearheaded India's dairy
programmes by placing dairy development in the hands of milk producers and
the professionals they employ to manage their cooperatives. In addition, NDDB
also promotes other commodity-based co-operatives, allied industries and
veterinary biological on an intensive and nation-wide basis.
19
3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
20
4.4 SLAB RATE TABLE OF CARD SYSTEM SALES OF MOTHER
DAIRY & COMPETITORS
201 - 300 2.40 151 - 200 1.35 201 - 300 2.75 201-300 2.75
301 - 400 2.50 201 - 250 1.40 301 - 450 2.85 301-400 2.80
401-500 2.55 251 - 300 1.45 451 - 600 2.90 401-500 2.85
801-1000 2.65 351 - 400 1.55 750 & 3.00 801-1000 2.95
above
21
RESEARCH METHODOLOGY
The research was conducted from June 2013 to July 2013. The research
includes meeting with retailers, distributors and consumers. It includes
preparation of the questionnaire to be answered by above people for knowing
the awareness and understanding of consumers and agents towards the card
system of mothers dairy and competitors in Hyderabad market. The views of the
above parties were recorded in the research as per the questionnaire made.
The data is primary data collected through face to face interview. Here data
required for the understanding of home delivery of milk through card system is
from the Hyderabad city and in current time frame hence I cannot go for
secondary source of data as it is published previously.
The research instrument was the structured questionnaire formulated for the
respondents. Respondents were milk retailers and consumers and there was a
separate questionnaire for retailers and consumers.
22
5.6 TYPES OF QUESTION
1. Open-ended question
2. Dichotomous question
3. Multiple-choice Question
Both the questionnaire consists of all three types of question. Mostly all
questions are multiple type questions. Dichotomous and open ended questions
are few in number.
Following factors were taken into account while phrasing the questions:
Language:
The first and foremost question we have to ask as a researcher is: what language
is the respondent is going to understand and respond in?
My questionnaire were printed in English and administered to the respondents
in the languages he understand i.e. Hindi and English.
Fatigue:
Increasingly, consumers are getting weary of answering questions for market
research. As I also have to ask questions from the agents and they are too busy
in their business. Hence I made my questionnaire as short as possible by
avoiding unnecessary questions so that it did not take much time to get the
information.
Sequencing of question:
I arranged the questions in a sequence starting from introductory question and
then proceed to main body of question.
Scale of measurement used in questionnaire:
1. Ordinal scale
2. Interval scale
23
5.8 SAMPLING PLAN
Sample Size:
The sample size was 200 for agents (retailers) and 300 for consumers (including
mother dairy and competitors)
Sampling Technique:
Milk is a basic commodity which is used by almost every household hence the
sample taken to conduct research does not require any strata or segment of
population. So, a simple random sampling technique was used to conduct the
research.
Personal Interview:
Card System is a method to sale milk by taking advance for a month from buyer
and giving discount of 65 paisa on per liter of milk provided by Mother Dairy.
Out of this 65 paisa 50 paisa goes to buyer and 15 paisa goes to retailers on per
liter of milk sales.
The areas of operation were the research was done are as follows.
HYDERABAD CITY
SECUNDRABAD CITY
24
DATA PROCESSING AND ANALYSIS
The data collected from the survey is compiled in excel sheet and the
interpretation after analysing each question from questionnaire is given below.
25
6.1.2 Customer awareness about card system:
The analysis of data shows that out of 300 respondents 171 respondents are
aware of card system and 129 respondents do not know about card system i.e.
57% consumers are aware and 43% are unaware of card system.
But it’s very important to know that what type of awareness consumers have
about card system i.e. what is card system according to a consumer? The answer
to this is studied with the help of the following analysis:
26
6.1.3 Card system according to consumer’s point of view:
22% 22%
8%
48%
a) Making advance payment to the agent and getting a discount on per liter
purchase.
b) Making advance payment to the agent and not getting a discount on per
liter purchase.
c) Using cards to note down the milk purchases and pay money at the end of
the month with a discounts from agent.
d) Using cards to note down the milk purchases and pay money at the end of
the month without any discounts from agent.
From pie chart we can see that out of total aware respondents, 70% of
them do not know that there is a discount given on per liter of milk
purchase by company, and the benefits and discount they get from card
system.
The 8% people who have chosen option “c”, are those who have good
relation with the agent and been his customer over a long period of time,
and thus, getting discount benefit from the agents own end.
27
6.1.4 Do you buy milk through card system?
Interpretation:
As seen above 57% consumers from the sample of 300 consumers are aware of
card system.
From fig. we can see that 23% consumers buy milk through card system
from retails which means “counter sales” according to the agents. These
23% people bring their cards to the agent everyday while purchase of
milk, and each day is marked on their cards by the agents. This is how
they keep a record of the purchase.
17% consumers buy milk through card system with home delivery. This
means that out of total aware consumers 40% consumers buy milk
through card system and 60% consumers buy milk without card system.
Out of total 171 aware consumers only 68 consumers buy milk through
Card System and 103 do not buy milk on Card System.
28
6.1.5 Factors which influences a consumer to buy milk through card system
(From retail):
3%
8%
23%
66%
Interpretation:
We can see that the factors which influence a consumer to buy milk
through card system are mostly surety of milk packet available with the
agent, i.e. 66% consumers buy milk through card system because of
surety of getting milk packet available with agent.
23% consumers buy milk through card system because some milk sellers
charge rs. 2 more than MRP if they purchase it on counter sales.
8% consumers buy milk on card system because of discount given on per
liter of milk purchase.
3% consumers buy milk because they face money change problem
frequently and faith on agent/retailers, good relation with milk seller etc.
29
6.1.6 Factors which influnce a consumer to buy milk through home
delivery card system.
41% Discount
Interpretation: It can be analysed through the pie chart that 41% of the
consumers prefer card system due to delivery on time, 42% due to convenience,
15% to just not down daily milk purchase and only 2 % due to discount passed
on to them.
30
6.1.7 Why you do not buy milk through card system?
17% 19%
64%
Interpretation:
Earlier we have seen that out of total card aware consumers 60% do not buy
milk through card system. Hence our intension is to know that why card system
aware consumers do not buy milk on card system and the reasons are:
From pie chart we can see that 64% consumers don’t buy milk on card
system because they are not a consistent buyer of milk.
19% consumers don’t buy milk because they do not want to pay in
advance to agents.
17% consumers don’t buy milk on card system because the quantity of
milk they buy is not fix, they buy milk while returning from office, they
buy milk in morning and this meant for morning walk, they do not want
to buy same brand of milk daily etc.
Out of 103 consumers who do not buy milk on Card system 66
consumers don’t buy milk on Card System because they are not a
consistent buyer of milk and 20 consumers do not buy on Card because
they don’t want to pay in advance to agent.
31
6.1.8 Getting discount on milk purchase through card system:
no
77%
Interpretation:
Earlier we have seen that out of total aware consumers only 40% consumers use
card system to buy milk. But all of them were not getting the discount on per
liter of milk they purchase.
From pie chart shown above we can see that only 23% consumers are
getting discount on per liter of milk they purchase and 77% consumers
buy milk on card system but they are not getting any benefit.
Total number of consumer who buys milk through Card System is 68 out
of total sample and only 16 consumers are getting discount on per liter of
milk purchase.
32
6.1.9 Problem faced by consumers in using card system:
91%
Interpretation:
91% of consumers who are using card system are not facing any problem
in card system.
8 % consumers say that they have problem in giving advance payment to
the agents for the cards.
Other 1 % states that they have problem in adjusting the amount while
their absence in taking milk.
33
6.1.10 Suggestions from card holder consumers on card system:
8%
17%
75%
Interpretations:
When it was asked to card holder consumers that give suggestion on card
system only 25% consumers have given their suggestion.
34
6.2 ANALYSIS OF AGENTS:
YES
99%
Interpretation: It has been found that 99% of the agents are aware that mother
dairy provides its own card for milk sales, only 1% of the agents are unaware
that company provides card from its own end. This is a negligible percentage.
We have seen that 99% agents are aware of Card System. But there is a need to
know that what type of awareness is with Agents in context of Card System.
Making advance payment to the company and getting a discount on per liter purchase and
passing that benefit to the consumer by taking advance payment from them
Using cards to note down the milk purchases and collect money at the end of the month without
any discounts from consumers. 15% 10%
75%
Interpretation:
From pie we can see that 75% of the agents know that what exactly card
system is.
25% Agents who are aware of Card System do not know what exactly
Card System provided by Mother Dairy and other companies is.
35
6.2.3. Procurement of card:
42%
58%
Interpretation:
It’s clear from the pie chart that 58% agents sell milk on their own card and
only 42% agents sell milk on card provided by company.
14%
8%
78%
Interpretation:
It has been asked to agents what the current status of card holder consumers is
and the answers are.
78% agents are saying that number of card holder customers is constant, 14%
agents are saying that card holder consumers are increasing and according to
rest 8% agents card holder customers are decreasing.
36
6.2.5 How do you make your consumers aware of Card System?
45%
55%
Interpretation:
We can see that 55% agents are saying that they aware their consumers about
card system and 45% agents saying that consumer are aware of card system by
other means or promotional activities by companies.
37
6.2.6. Benefits to Agents on Card System:
2%
18%
50%
30%
Interpretation:
50% agents are saying that benefit of the card system is retention of
consumers.
30% agents are saying that they are getting more margin on milk when
they sale milk through cars system.
According to 18% agents benefit of card system is more sales and brand
loyalty.
And rest 2 % agents say that because of card system they can sale other
products along with milk and their customers are fixed and they can use
this customer base for some other business.
38
6.2.7 Challenges faced by Agents to sale milk on Card System:
Interpretation:
39
FINDINGS AND RECOMMENDATIONS
7.1 FINDINGS
Mostly all Agents are aware of the Card System but consumer awareness
is very low.
Agent inspite of awareness and knowledge about the card system, does
not pass the benefits to consumers in majority of the cases.
In most of the cases advance payment is being taken by the agents.
Card has become just a tool to track daily purchase of milk.
The only benefit of the card is to make sure that milk is available with the
agents and to avoid overpricing on MRP.
Major benefit of card system to agents is retention of consumers followed
by more margins on sales through card system.
Major Challenge faced by agents on Card System is lack of awareness
followed by customer resistance to pay in advance, maintaining the
records of consumer card, absence of card consumer and competitor card
pricing policy respectively.
In areas of Hyderabad, like Barkatpura, Himayath nagar, YMCA,
Hyderguda, Begumpet, S.R Nagar and many more there are rarely any
agents supplying mother dairy milk. In these areas the consumers are
unaware of mother dairy brand existing in Hyderabad.
Local dairies like Venkateshwara provide more margins on commission.
More than Rs. 5. Thus these agents keep that brand and promote it,
whenever a customer walks in and asks for milk packet.
In quantitative term:
Out of to total sample 57% consumers are aware of Card System but
there awareness is not exactly as the Card System provided by Mother
Dairy or any other competitors companies.
Out of these 57 % Card System aware consumer only 22% consumers
knows that what exactly Card System provided by the company is.
This means that 12.6 % of the total sample is aware of Card System
provided by Mother Dairy or any other competitors companies.
40
Out of these 57% Card System aware consumers 23% consumers buy
milk on Card System through retail and 17 % buys milk on Card system
with home delivery.
Out of total aware consumers only 40% consumer buys milk on card
system and 23% consumers are getting discount on per liter of milk
purchase.
Out of total sample 23 % consumers use card system to buy milk and 5.5
% consumers are getting discount on per liter of milk purchase.
Most influential factor to buy milk on card system through retail is surety
of milk packet available for buyer every day with Agent followed by
overpricing on MRP and discount.
Delivery on time is the most influential factor to buy milk on card system
with home delivery. 15% of consumers use card system for home
delivery to just note down the daily milk purchase.
Not a consistent buyer of milk is the major reason of not using card
system followed by problem in advance payment on time and variability
in quantity of milk purchase.
Out of total sample of agents 99% of them are aware of Card system.
Out of total aware agents 75% are familiar with the Card System
provided by company.
Those agents who are aware about the companies card system, 58% of
them sale milk on their own card. While interviewing them, they said, that
own printed card eliminates the hassle of timely payment of advance
collected amount from the consumers to the company. They are taking
advance payment from the consumers on their own printed card as well as
company card but not depositing that to the company.
55% agents provide awareness about card system to consumers.
41
7.2 RECOMMENDATIONS
The recommendation for the company for further growth and more sales and
capture of market through card system are as follows:
42
STANDARD OPERATING PROCEDURE TO INCREASE
MILK SALES THROUGH CARD SYSTEM
.
• Selection of locality---Gachibowli
.
• Developement of infrastructure
8.2 EXPLANATION:
43
8.2.2 STATISTICS OF MILK SALES AT GACHIBOWLI
• 20 agents whom we surveyed sell about 5000 LPD. Out of which fifty
percent and are Home Delivery. Home Delivery is being done by either
taking advance or payment by the end of the month.
Volume
Homed
Homed delivery,
Retail , 1200, 24% delivery
2535, 51%
Retail
Counter sales,
365, 7%
Counter sales
Commercial sale,
900, 18%
In Gachibowli the milk being sold through home delivery is 2535 liters which is
51 percent of the entire market. This base sale forms the potential market for
card system.
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Volume
Late payment,
1020, 40%
Advance
Late payment
Advance , 1515,
60%
Sixty percent of the population pays advance to the agents which can be the
potential for card system sales
8.3.2 RETAILING
To ensure the availability of product for the consumers in retail markets as well,
retailing has to be done rigorously. 20 retail outlets in selected areas are to be
selected and the supply has to be maintained through the agents. The agent sells
with a margin of Rs1.50.
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8.3.3 FINANCIAL FLOW
The executive phone number is shared during the Campaigning and he would be
the point of contact for new consumers to avail prepaid cards. Once an
executive receives a call he would guide the existing agent to the new customer.
The consumer will pay money to company representative and company
representative will submit the money to company. The margin on per liter of
sales will be provided by company to agents. The flow of money is given
below.
Supply of milk
The time frame to avail cards or to renew the existing cards is from 1 st of every
month to 12th. This time frame ensures effective supervision on card sales as
well as the accounts.
8.4.1 ADVERTISING:
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aware the consumer about the Mother Dairy offerings. There are various modes
of advertising but most effective mode will be wall painting and posters.
Pamphlets
Wall Painting
Newspaper inserts
Advertising is a non personal presentation of goods and services and only non
personal mode to communicate the consumer about Card System is not
sufficient. Hence campaigning is required
Creating brand and Card awareness & generating trail rate is the prime objective
of Campaigning. It can be done through temporary kiosks. These kiosks can be
made at different localities. To ensure the customers coming to the kiosk and to
increase the trail pamphlets will be distributed through the newspapers a day
prior to the campaign. Before campaigning the housing society manager or
influencer person of that particular area or society will be contacted and
communicated about the activity to promote the campaign. The pamphlet
consists of products list and as well as it communicates about the redemption
coupons given at the kiosk.
Free samples of milk will be distributed and awareness about Card System can
be done through these kiosks. The executives on kiosk will provide information
on schemes and also about the Card System to consumers. Card will also be
made available to these kiosks and those consumers who will be interested can
immediately buy the Card.
The cards are sold by the company in the kiosks and the money as well as the
contact points of the customers is given to the agent in that region.
At the end of the third day if customer avails all the redemption coupons and
buys a monthly card for two months, the customer would get a free dental
check up.
Redemption of money.
Gift coupons of Big Bazaar.
The discount on the second day and third day are only available for
customers if they redeem the coupons continuously. To ensure this the
redemption coupon has unique number on it so that the executive can track
the purchase by the consumer.
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8.5 OTHER CAMPAIGNING ACTIVITIES:
Mother Dairy will sponsor a gathering of 15-20 women's. In that event Snacks,
Tea ,Cold drinks will be provided and at the end of the event information about
Mother Dairy and Card System will be provided.
• Prize will be given to that house hold who will conduct this event.
• At the end of the event information about Mother Dairy and its offerings
as well as Card System will be provided.
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CONCLUSION
The final outcome of the project is that the awareness about the Card System
provided by companies is very low to the consumers and the percentage card
holder consumers are also very low. So the company should take every step
possible to convert the buyer who buys milk without card system to card holder
consumer.
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BIBLIOGRAPHY & WEBLIOGRAPHY
10.1 WEBSITES
www.agricultureinformation.com
www.motherdairy.com
www.nddb.org
www.indiandairy.com
www.wikipedia.com
www.indianmilkproducts.com
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ANNEXURE:
For collecting the data a structured questionnaire is prepared to get detailed and
structured information regarding the project. Given below is the questionnaire:
1) Name –
2) Occupation –
3) Address –
• Loose……………..
• Packed ……………
If yes go to Q.No-8
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b) Making advance payment to the company and not getting a discount on
per liter purchase.
c) Using cards to note down the milk purchases and pay money at the end of
the month with a discounts from company.
d) Using cards to note down the milk purchases and pay money at the end of
the month without any discounts from company.
(a) Discount (b) surety of milk packet available for you every day with the
agent (c) to avoid overpricing on MRP (d) others…
12) What influences you to buy milk through home delivery card system?
13) Are you getting any discount on MRP if you buy milk through card
system?
(a)Yes (b) No
15) Card system which you are using is company owned or agent owned?
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16) What is your monthly household income?
• Up to Rs.10000
• Rs.10000 to 15000
• Rs.15000 to 25000
• Above Rs.25000
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11.2 QUESTIONNAIRE FOR AGENTS
Name –
Address –
Yes no
If yes q2
Q.4 How much liters of each brand of milk you sale daily?
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Q.6 What is the status of card holder customers?
Q.7 How do you make your consumer aware of the card system
a) I communicate it myself
Q.8 Please rate the challenges you are facing on card system on a 5 point
scale
Q.9 What are the benefits you are getting through card system?
Q.10 How much you charge to customer for home delivery of milk through
card system? .....................
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