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Tejas Govind Dessertation
Tejas Govind Dessertation
Milk is one product that generates cash income to farmers almost on a daily basis, unlike
sugarcane or wheat. Besides being a source of liquidity and insurance against crop failure, milk
is the only crop where the farmer realizes 60-70 per cent of consumers’ price as against 20 per
cent or so in fruits and vegetables, the annual value of India's milk production amounts to more
than Rs. 1,232 billion in 2007-08. Dairy cooperatives generate employment opportunities for
around 13.4 million farm families. Livestock contributes about 25.4 per cent to the GDP from
agriculture and in the total GDP of the country it contributes 4 per cent.
Dairy is a facility for the extraction and processing of animal milk, mostly from buffalo
or cows and also from goats, sheep for human consumption. It is a place where handling of milk
and milk products is done and technology refers to the application of scientific knowledge for
practical purposes. Dairy technology has been defined as the branch of dairy science, which
deals with the processing of milk and the manufacture of milk products on an industrial scale. As
an attributive, the word dairy refers to milk-based products, derivatives and processes and the
animals and workers involved in their production for example dairy cattle, dairy goat. A dairy
farm produces milk and a dairy factory processes it into a variety dairy products. These
establishments constitute the dairy industry, a component of the food industry also it is a part of
the livestock sector of the country.
Global milk production is estimated to expand by 2.5 per cent to almost 710 million tones
in 2009, a far slower pace than in recent years. Growth prospects have been affected by a number
of factors as international markets have been responding to the historically high international
price levels of the past two years. The worldwide production of buffalo milk is estimated at 83
million tones constituting around 13 percent of the total world milk production which was
increased on an average by more than 3 per cent annually during the last ten years. Almost 90
per cent of the total volume of buffalo milk is produced in India and Pakistan.
In Asia milk production is now expected to rise by only 3.5 per cent, this reduced rate of
growth is largely caused by a sharp slowdown in China. India is a largest producer of milk with
the production of 104.8 million tone (2007-08) and has 283 million cattle which is largest in the
world. But based on the comparative analysis of milk yield in various countries, for instance,
shows that milk yield per cattle in major milk producing countries is 6-12 times higher than
India. It is largely due to the presence of large number of unproductive cattle, scarcity of feed
resources.
Global exports of key milk products, in milk equivalent terms, may reach 40.4 million
tones in 2008, up almost 3 per cent from the previous year. The turnaround in trade is largely due
to strong increases in exports from the United States, which may grow by over 50 percent, to 4.5
million tones. The India's share in world trade of dairy product is negligible i.e. 0.2%, the current
export of dairy products from India during the 2007-08 is around 178 million dollars.
Regional trade shares are changing, and this may mark the new emerging structure of the
world dairy market. Europe’s role as a major source of supplies for trade has diminished
significantly as has that of Oceania, while those of the America and Asia have grown (Figure
1.1). The United States may export more than 5 million tones of product in milk equivalent in
2008, increasing its trade share to 12 per cent, its highest level in recent history. Conversely, the
trade share of the Europe is set to fall to 15 per cent, its lowest level in recent history.
Fig.1.1 changing world export shares in milk for 2008 and 2017
(Source: Website: http://www.fao.org/)
India is a first milk producer in the world, in the 1968-69 milk production was
only 21.2 million tone it increase to 104.8 million tone in 2007-08. This to course must
be attributed in great measure to Operation Flood and the historic Co-operative
movement. NDDB launched Operation flood in 1970; Operation Flood has helped dairy
farmers direct their own development, placing control of the resources they create in their
own hands. A National Milk Grid links milk producers throughout India with consumers
in over 700 towns and cities, reducing seasonal and regional price variations while
ensuring that the producer gets a major share of the consumers' rupee. The main
objectives of ‘Operation Flood' were to increase the milk production ("a flood of milk")
and augment of rural income.
The main aim of ‘Operation Flood' was been village milk producer’s cooperatives,
which procure milk and provide inputs and services, making modem management and
increasing milk production technology available to members.
Above fig 1.2 shows the milk production and per capita availability in India from
the year 1950-51 to 2016-17. From the graph we can observed that there was a
continuous growth in the both milk production and in the per capita milk availability.
Dairy sector contribution is around 65-70 per cent to livestock sector. The goals of
the 11th five year plan for the livestock sector are expected to achieve an overall growth
between per cent to 7 per cent per annum for the sector as a whole and the milk
production growth is estimated to 5 per cent per annum from 100 million tones from
2008 to 126.42 million tones by 2011-12.
The co-operative dairies are the back bone of whole dairy industries, at present
there are 177 milk unions in India operate over the 346 district. Cooperative dairies
covers all around 1, 28.799 village level societies, these societies owned by around 13.4
million farmer members of which 3.7 million were women.
In 2007-08, average dairy cooperative milk marketing stood at 189.21 lac litres; annual
growth has averaged about 6.6 per cent compounded over the last five years. Dairy Cooperatives
now market milk in all metros, major cities and more than 800 towns/cities. Milk travels as far as
2,200 kilometers to deficit areas, carried by innovative rail and road milk tankers. During 1991-
2007 the daily milk supply by Cooperatives to each 1000 urban consumers has increased from
37.3 to 66.3 litres.
Dairy cooperatives generate employment opportunities for around 13.4 million farm
families. There are new innovations were take place in the co- operative sector like Automatic
Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at grass root level - preserve
quality and reduce post-procurement losses.
The National Dairy Development Board was created in 1964 in response to the Prime
Minister Lai Bahadur Shastri's call to "transplant the spirit of Anand in many other places". The
Board's creation was routed in the conviction that our nation's socio-economic progress lies
largely on the development of rural India.
The National Dairy Development Board has replaced exploitation with empowerment,
convention with modernity, stagnation with growth and transformed dairying into an instrument
for the development of Indian farmers. Thus National Dairy Development Board mandate is to
promote, finance and support producer-owned and controlled organizations. The programmes
and activities seek to strengthen farmer cooperatives and support national policies that are
favourable to the growth of such institutions. Fundamental to National Dairy Development
Board efforts are cooperative principles and the Anand Pattern of Cooperation. A commitment to
help rural producers help themselves has guided the Dairy Board's work for more than 30 years.
This commitment has been rewarded with achievements made by cooperative dairies in milk
production, employment generation, per capita availability of milk, foreign exchange savings and
increased farmer incomes.
Company Profile
Govind Milk and Milk Products Pvt Ltd was established in the year 1995 with an
intention to help the farmers who were suffering at the hands of local vendors, situated in
Phaltan, district Satara, Maharashtra. Govind Milk in a few years has emerged as a renowned and
quality conscious brand for milk and milk products not only in the state of Maharashtra but also
in other adjoining states as well.
The production facility at Phaltan is a prime milk shed area, resplendent with abundant
water, fodder and power supply. This feature adds to Govind’s in-built efficient milk processing
systems.
At Govind, the best procurement and processing systems are practiced to process milk
and produce milk products. A well planned system functions perfectly in tandem with the cattle
farmers for fresh milk procurement There is excellent connectivity between the farmers and bulk
coolers to transport and store the collected milk.
The state of the art machinery helps processing the milk and manufacturing milk products
like ghee, butter, shrikhand, amrakhand, lassi, skimmed milk powder etc. A fully integrated dairy
processing unit with the capacity to process 2.5 lac litres, at par with international standards is
currently used at our facilities in Phaltan.
An efficient front end of our dairy unit is supported with an equally robust back end.
Well maintained and harmonious relations with the cattle farmers, providing them timely
veterinary guidance and services and imparting the required knowledge on latest techniques
helps to increase the yield.
In the recent past we have educated farmers on loose housing, calf rearing, balanced feed
production, thereby achieving extraordinary results. Govind’s symbiotic association with cattle
farmers is reciprocated in every upgrade of technology or process benefiting the community at
large.
The procurement capacity of the existing facility is 2.5 lac litres of milk of which around
1.9 lac litres of milk is sold in retail form through an established distribution channel. The
balance milk is used for production of milk products like skimmed milk powder, ghee, butter
milk, butter, paneer, shrikhand and amrakhand etc
The sale of milk in pouch packing started in the year 1999 with around 2000 litres/day. The
present sale is around 1.9 lac litres per day. This growth is the result of delivering the best quality
at a reasonable cost Govind entered the Karnataka market in September 2009 and in Goa market
in March 2010 has seen a steady growth since then. Govinds milk products have also received a
good response.
2.2 Vision:
To enhance living standards of the farmers by encouraging them for dairy farming by
partnering with them on various fronts.
implement best dairy farm management systems by adopting loose housing bam method thus
ensuring healthy animals resulting in lowering of production cost and increase in productivity.
To implement the best feeding systems for animals through
2.3 Mission:
We will endeavor to improve living standards of Indian cattle farmers, by reducing the
cost of production through efficient use of technologies and systems. We will provide premium
quality products at a reasonable price to end customer.
Manjari Govind Dairy started buffalo milk procurement from Karnataka on 3rd April
2009. In order to meet the increased market demand for the milk products, milk was procured
through bulk coolers from various locations in Karnataka like Ghataprabha, Gokak, Sankeshwari
2.5 Careers:
Leverage your experience and explore a career sans boundaries at Govind Milk and Milk
Products Pvt. Ltd. We promote innovative thinking, democratic leaders who can spearhead the
growth of Govind along with the individual achievements. Govind is a reputed name in dairy
industry in India and located in Phaltan. Govind Milk has ambitious and innovative plans to
expand for which it looks forward to enrich its team with young and enthusiastic individuals with
or without experience depending on the need of the time.
2.6 Future Plans:
Govind Milk and Milk Products Pvt. Ltd. look forward to enhance their capabilities with
a fully automated world class plant for milk processing and SMP production. This new facility
has a capacity of over 6, 00,000 litres with fully a centralized automatic CIP system and should
be operational soon.
Laden with state-of-the-art facilities like Deodorizer, 30MT powder plant, and
machineries procured from leading international dairy manufacturers like Alfa Laval, Tetra Pak
and Stork, it would increase the production capacity manifolds and reduce costs. Milk tanker
cleaning system is also an additional feature in this new plant. The stringent quality norms of US
FDA and international export agencies would also be easily met at this new plant.
Govind Milk and Milk Products are also in the process of obtaining the coveted ISO
9001: 22000 certification and HACCP quality system. With a single minded focus of
establishing ourselves as the one of the most quality conscious dairy in Maharashtra, we seek the
best of technology and processes related to dairy and dairy processing. The new facility in the
extended campus would help us produce the best quality milk and milk products which could be
exported worldwide along with aiding the small milk chilling units and farmers. We are in the
process of setting up 30 tons capacity Milk Powder plant, which will commence from June 2010.
Processed cheese, baby foods, ice-creams and Indian sweets (Indian Mithai) would also be added
to the existing product range and have a huge demand in international market.
(a) 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;
(b) Uphold institutional structures that empower milk producers and farmers through Processes
that is equitable.
At Govind milk, processing of milk is controlled by process automation whereby state-of the- art
microprocessor technology is adopted to integrate and completely automate all Functions of the
milk processing areas to ensure high product quality/ reliability and safety.
CHAIRMAN
MD
STAFF PROFILE:
VICE PRESIDENT
GENERAL MANAGER
ASSISTANT MANAGER
(PROCUREMENT AND INPUTS)
2.9MARKEHNG CHANNEL
MANUFACTURER
WHOLESALER/DISTRUBUTER
RETAILER
CONSUMER
2.10 PRODUCT PROFILE
Govind Dairy s has a varied range of products. The different products categories are
explained below
2.10.1M1LK:
Packaged Milk is available in 3 different variants:
Govind cow milk- milk fat 3.5 % and8.5%, SNF toned
milk-milk fat 3% and SNF 8.5% Thick milk (double
tonned milk)-milk fat 1.5%, SNF 9%
Milk products of Govind Dairy
As Govind milk and milk product pvt. ltd. is nearly 25 years down(old) the line company
in the market. In other words, it is old brand in Phaltan market and due to this, lot many people
know about Govind milk. In order to survive in deadly competition in market which is
surrounded by lot many local brands like Golden, Shivprasad, Santkrupa, and Hutatma etc. We
have to play the game safely and steadily. And for that we have to make so many innovative
marketing strategies along with nullifying the drawbacks or weaknesses which are perceived by
the existing customers as well as the customers which are interested in buying Govind milk.
Along with this, we also have to find out changing tastes and preferences of the milk
market. When we talk about milk market, following parameters are taken into consideration
while purchasing milk - Brand Name, availability, quality, price ,scheme ,awareness .we
prepared questionnaires based on above parameters and tried to find out the performance of
Govind milk as compared to competitors present in the market. In this way, we conduct the
research to find out potential market for Govind milk.
What are various preferences of retailers while selling of milk and factors which
consumer consider while purchasing of Govind milk than other brand. The price of Govind milk
is high compared to other local brands in market.
Statement of the Problem is “To Study Market potential of Govind milk in Phaltan region.”
OBJECTIVES AND SCOPE
Above objective is related with the study of market potential of Govind milk and
awareness about Govind milk in retailers and consumers toward milk purchasing, findings of the
study will help Govind milk to make the preference of retailers more efficient and also help in
understanding the factors which consumers consider while purchasing Govind milk and
competitors brand.
Consumer consider various factors like consumer price quality, availability, brand, and
scheme etc, information on these factors will facilitate Govind milk in formulating the marketing
strategies.
The dairy industry is going through rapid changes; competition in the market is
increasing day by day. New and big players are entering in the market with the innovative ideas.
In this scenario two aspects are very important to study market potential and marketing channel
of Govind milk and milk products private ltd, Phaltan” is selected for the study.
METHODOLOGY
The earlier chapter deals with the literature and the conceptual facts that are needed to be
understood to have clarity on this project’s topic. In that chapter various terms and concepts were
explained, this chapter deals with the methodology that was used while carrying out the project.
This chapter would give the detailed process how appropriate methods were chosen and
designed, what were the target sample and the method that was used for it, various parameters
and also the data that was collected.
5.1 Research:
A scientific search for pertinent information on specific topic. It is moment from known
to unknown.
The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet.
> To gain familiarity with phenomenon or to achieve new insight into it.
> To portray accurately the characteristics of particular indivisibly, situation, group.
> To determine the frequency with which something occurs or with which it is associated with
something else.
Marketing research plays an important role in the process of marketing. It helps the firm
to acquire a better understanding of the consumers, the competition and the marketing
environment.
5.2. IDEFINTTION
“Marketing research is a systematic problem analysis, model building and fact finding for
the purpose of important decision making and control in the marketing of goods and services.
Phillip Kotler.
5.3 RESEARCH PROCESS:-
Analysis of information
Make decision
5.4 SAMPLE
All items in any field of inquiry constitute a universe .A complete enumeration of all
items in the population is known as census inquiry. The respondents should be the representative
of total population. The selected respondent called as sample.
A) Probability sampling
1. Convenience sampling.
2. Judgment sampling.
3. Quota sampling.
A) Probability sampling
Every item of the universe has an equal chance of inclusion in the sample. Simple
Random, Systematic, Stratified Random, Cluster, Multistage.
Researcher assigns each member of the sampling frame a number, then selects sample
units by a random method, either by lottery or by using random number table.
Disadvantage: Knowledge of the population if inadequate, important units may be eliminated.
Advantage: Unbiased.
2) Systematic sampling:-
Researcher uses natural ordering or order of sampling frame, selects an arbitrary' starting
point, then selects items at a reselected interval.
3) Stratified sampling:-
Researcher divides the population into groups and randomly selects subsamples from
each group. Variations include proportional and disproportional and optimal allocation of
subsample sizes.
4) Cluster sampling:-
Researcher selects sampling units at random, then does complete observation of all units
in the group.
1) Convenience sampling;-
2) Judgment sampling:-
It is the first hand information gathered .primary data are those which are collected first
time.
Primary data can collected through experiment and survey.
In case of survey data can be collected through,
Observation
Personal interview
Telephone interview
Questionnaire
Primary data was collected directly from the retailers through a questionnaire.
It means data which is already available. This data is produced & analyzed by someone.
This data you may get through various journals published by government agencies or by
company. You can get it also by website or newspapers.
Website:www.govindmiIk.com this website information collected like the company profile,
market, various products, competitors, companies’ objectives & welfare activities of company.
5.6 RESERCH METHODOLOGY OF THE STUDY
This research has been designed in a standard pattern using market survey method analyzing the
data through surveyed sample of retailers. A brief description has been given in the following
table.
Sample size 54
Data collection
After identifying problems and sources of data the next step is to prepare a research
design. It facilitates research to be efficient as possible yielding maximum information.
The questionnaire based survey of consumers is used to collect data. The primary data is
collected by filling questionnaire Around 100 retailers were interviewed.
To understand their preferences & factors they consider while buying milk. Finally data
were analyzed with the help of simple statistical techniques like percentage, pie charts & graphs.
The data, which was collected earlier was summarized and tabulated in MS excel for
further analysis. Following statistical analytical tools are used for further analysis.
1) Bar Graph
2) Pie Chart
3) Tables
Data analysis was done mainly from the data collected through the retailers. The data collected
from secondary sources is also used to analyze on one particular parameter.
Qualitative analysis was done on the data collected from the primary as well as secondary
sources.
Total 54 100 %
(Source: Survey)
12%
88%
Chart- 1
INTERPRETITION:
In the survey it was found that, 88 % i.e. 47 retailers were already aware about Govind milk
products and remaining 12% i.e 7 retailers in Phaltan region are unaware.
It means company penetration in Phaltan region is very good there is more scope for expansion.
8%
9%
Good
Average
Poor
83%
Chart-2
INTERPRETITION:
The data on the awareness of Govind milk is presented in table 2.The fig shows that it has been
observed that awareness about Govind milk in consumers is good i.e. 83% Only 9% consumers
are unaware i.e. average consumers.
3. No. of Retailers keep Govind milk in their outlet
Table No.3 :
Response of retailers for
keep Govind milk in No. of retailers Percentage
their outlet
Yes 46 86%
No 8 14%
Total 54 100%
(Source: Survey)
14%
Yes
No
86%
Chart- 3
INTERPRETITION:
In the survey it was found that, 86 % i.e. 46 retailers were already keeping Govind milk and
remaining 14% i.e 8 retailers were not keeping govind milk in their outlet in Phaltan region It
means company penetration in Phaltan region is very good there is more scope for expansion.
4. Preference of retailers for sale of particular brand:-
Table No. 4:
Brands No. of respondents Percentage
Govind 39 72%
Golden 5 9%
Shivprasad 3 5%
Santkrupa 2 4%
Hutatma 3 5%
Swaraj 1 3%
Other 1 2%
Total 54 100%
(Source: Survey)
70
60
50
40
72
30
20
10
9 5 5
0 4 3 2
Govind Golden Shivprasad Santkrupa Hutatma Swaraj Other
Chart - 4
INTERPRETITION:
The data collected on the preference of retailers for sale of particular brand is presented in the
table-4 From the diagram we can say that Govind is most preferred brand among the retailers.
Golden and Shivprasad are also preferred by retailers. Preference for Govind milk is very high.
(Source: Survey)
70
60
50
No, of retailers
40
65
30
20
10
15
11 9
0
High margin Consumer Scheme Service
demand
Factors
Chart - 5
INTERPRETITION:
The data collected on the reasons for the preference for particular brand is presented in the table
5 From above graph it has been observed that 65% retailers give preference for selling for
particular brand because of high consumer demand. 11% retailers gives preference for sale of
brand because of high margin.
It means that most retailers are preferring consumer demands brand.
70
60
50
40
75
30
20
10
7 8 6 4
0
Price Quality Availability Brand Scheme
Chart - 6
INTERPRETITION:
The data on the factors considered by the consumer is presented in the Table- 6 From above
graph it is observed that the retailers point of view 75% of consumers are conscious about
quality, while very less i.e. 7% consumers give importance to price.
5
10
Good
Average
Poor
85
Chart - 7
INTERPRETITION:
The data about the marketing channel of Govind milk is presented in the Table- 7 From
above graph it has been observed that marketing channel of Govind milk is good as said
by 85% retailers. Only 10% of retailers say it is average.
13
Chart - 8
INTERPRETITION:
The data on the retailers complaint about Govind milk is presented in the table- 8 The
graph shows that only 13% retailers have complaints about company and 87% retailers
have no complaints about the company.
FINDINGS
1. Awareness of Govind milk in retailers is 88%, but 12% of retailers are not aware of Govind
milk.
2. As far as awareness about Govind milk in consumers is good i.e.83%and preference is also
good.
3. Govind milk has reached 91% outlets in respected area.
4. In the market Govind is leading brand among the available brands.
5. Most of the consumers are more conscious about quality. About 7% of customers are price
conscious.
6. About 13% of retailers are having complaints about Govind milk.
7. Govind milk has a nice brand image in the minds of out of state consumers.
8. Advertisement of Govind milk is not impressive in different Medias. Advertisement is
negligible.
9 .Some consumers complaint about the very less cream formation takes place.
10. Some retailers suggest for schemes and credit facilities to be started by the company.
11. Some retailers complaint about less margin of profit.
SUGGESTIONS
The advertising should be done effectively with all the Medias and banner of
advertisement of company product should be provided to increase sale of products.
The company should increase margin for the retailers.
Effective marketing channel should be developed.
Replacement facility should be provided to the retailers.
An exclusive distributor should be appointed for a particular area.
Schemes at regular interval should be provided in the market
The milk should be processed in such a way that it can be stored for more than one day.
Availability of die milk should be regular whatever the condition there is.
The cream percentage is increased in milk.
CONCLUSION
It is concluded that the Govind milk i.e. cow milk is though known to its consumers and
its acceptance is high as compared to other local brands present in the market. Therefore
measures in terms of reach & availability and efficient sale promotion are to be initiate to
enhance sales and acceptability among the end user. Introduction of 250ml pouch of milk can
help in increase in sale. There is greater awareness of Govind milk to customers there should be
proper advertisement, banner of advertisement should be provided to the retailers and sales
promotions activities by the company to capture good market potential for Govind milk and its
awareness
level, which is high among the customers as well as retailers.
As far as customers are concerned with area it can predicted that customers give
emphasize on price, quality, availability, brand and scheme. As far as retailers complaints are
concerned about likage problems and less schemes.
References
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Donald R. Cooper and Pamela S. Schindler, 2007. Marketing research concepts and cases. Tata
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Karvathlkar, N.G., S.R. Patil, D. H. Kankhare, R. J. Desale and S. H. Mane, 2007.
Nawale, S.K., 1995. Economics of milk production and marketing in Ahmednagar
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Websites:
www.thedairvsite.com
www.govindmilk.com
Retailer Questionnaire
Name of Outlet___________________________________
Address__________________________________________