A STUDY ON CUSTOMER SATISFACTION OF AAVIN MILK PRODUCTS

KRISHNAGIRI
Madhan kumar.R

S.NO PARTICULARS PAGE NO

LIST OF TABLES

1 CHAPTER - I

1.1 Introduction 2
1.2 Theoretical background of the study 3
1.3 Review of literature 6
1.4 Statement of problem 9
1.5 Objectives of the study 9
1.6 Scope of the study 9
1.7 SWOT Analysis 10

2 CHAPTER - II

2.1 Organisation profile 13

2.2 Details and Structure 14
2.3 Product Profile 16
2.4 Market Potential 20
2.5 Procurement data 22

3 CHAPTER - III

3.1 Research Methodology 30

4 CHAPTER - IV

4.1 Data Analysis and Interpretation 32

5 CHAPTER – V

5.1 Findings 39
5.2 Suggestions 40
5.3 Conclusion 41

6 BIBLIOGRAPHY 43
ANNEXURE 44
 LIST OF TABLES

Table Page
Name of the Table
No No

1 Present status of the industry 20

2 The rate of production of the milk products per month are as follows 20
According to the varying needs of the consumers the products the
3 20
products are solid in different quantities
4 Sales data during 2011(March) – 2012 (April) 21

5 Procurement detail April – 2012 22

6 Procurement detail April – 2013 22

7 Milk procurement 26

8 Input activities 26

9 State cooperatives and its Offerings 28

10 Demographic Profile of the Customers 32

11 Age of the Customer 32
12 Gender of the Customer 32
13 Marital status of the Customer 32
14 Educational status of the Customer 32
15 Income/Month 33
16 Mode of Awareness 33
17 Consumption of Milk per day 33
18 Awareness towards Aavin products 34
19 Usage of Aavin Milk 35
20 Purchase of Aavin Products 35
21 Satisfaction 36
22 Recommedation of Aavin Milk products to others 37
23 Experience of problems with Aavin Milk 37
CHAPTER 1
INTRODUTION

1.1 INTRODUCTION TO THE CONCEPT OF THE STUDY

Customer satisfaction research is that area of marketing research which focuses on customers'
perceptions with their purchase experience. Customer satisfaction is a measure of how
products and services supplied by a company meet or surpass customer expectation

Many firms are interested in understanding what their customers thought about their purchase
experience, because finding new customers is generally more costly and difficult than
servicing existing or repeat customers.

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals."

It is also defined as Process of discovering whether or not a company's customers are happy
or satisfied with the products or services received from the company. May be conducted face
to face, over the phone, via email or internet, or on handwritten forms. Customer answers to
questions are then used to analyze whether or not changes need to be made in business
operations to increase overall satisfaction of customers.

Customer satisfaction is one of the most essential elements of customer retention, customer
loyalty, and product repurchase. The art and science of customer satisfaction involves
strategically focusing on creating and reinforcing pleasurable experiences.A well executed
customer satisfaction survey is the first step toward gathering the baseline insights for
creating and reinforcing pleasurable experiences.

From these insights, companies can start understanding the core experience of their
customers, reflecting their liking of a company’s business activities, including
products/services, and calibrating big business decisions off of data, instead of guessing.
1.2 THEORETICAL BACKGROUND OF THE STUDY

Customer satisfaction matters. It matters not only to the customer, but even more so to the
business because it directly impacts a co mpany's bottom line profits. Furthermore, it is one
of the most important components of a company's positive brand image.

The reason why customer satisfaction directly affects bottom line profitability is quite simple:
it costs far less to retain a happy client than it does to find a new client. Businesses that
have been successful retaining the business of their loyal clients have shown over time to
consistently increase profits from their installed client base. The impact of customer loyalty is
impossible to overlook. This white paper will examine not only the significance of customer
satisfaction, but also some of the factors that businesses need to consider in order to
accurately define, measure, and integrate this concept into practice.

1.2.1 Purpose

Figure 1.1

A business ideally is continually seeking feedback to improve customer satisfaction.

"Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty." "Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:"
 1. "Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the company’s goods and services.”
2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers
will make further purchases in the future. Much research has focused on the
relationship between customer satisfaction and retention. Studies indicate that the
ramifications of satisfaction are most strongly realized at the extremes." On a five-
point scale, "individuals who rate their satisfaction level as '5' are likely to become
return customers and might even evangelize for the firm. (A second important metric
related to satisfaction is willingness to recommend. This metric is defined as "The
percentage of surveyed customers who indicate that they would recommend a brand
to friends." When a customer is satisfied with a product, he or she might recommend
it to friends, relatives and colleagues. This can be a powerful marketing advantage.)
"Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.
Further, they can hurt the firm by making negative comments about it to prospective
customers. Willingness to recommend is a key metric relating to customer
satisfaction.

1.2.2 Types of research in customer satisfaction

Descriptive or documentary research

Many customer satisfaction studies are intentionally or unintentionally only "descriptive" in

nature because they simply provide a snapshot in time of customer attitudes. If the study
instrument is administered to groups of customers periodically, then a descriptive picture of
customer satisfaction through time can be developed (this is a type of "tracking" study).
Inferential or models-based research

Beyond documentary types of work are studies that attempt to provide an understanding of
why customers have the perceptions they do and what may be done to change those
perceptions. While models-based studies also provide snapshots of customer attitudes, the
results of these studies are more powerful because they present the firm with
recommendations on how to improve customer satisfaction. Frequently, these studies also
provide firms with a prioritization of the various recommended actions. Inferential studies
can also be conducted as tracking studies. When this is done, the firm can gain insight into
how the drivers of customer satisfaction are changing in addition to documenting the levels
and areas of customer satisfaction.

1.2.3 Significance

A business can be successful only if the end customers are satisfied. Customers are the real
kings of business so it is very important to keep them happy and give them real value for
money they spend.

It has been proved from various researches and practical experiences that there is increase in
customer dissatisfaction with an increase in the number of products and services offered by a
company. The prime reason of dissatisfaction can be the increased expectations in terms of
customer support.
1.3 REVIEW OF LITERATURE

A group of researches of the “Centre for the study of social policy (2007)”conceptualize that
satisfaction is based on the customer’s experience of both contact with the organisation (the
moment of truth) and personal outcomes. According to these researchers, satisfaction can be
experienced in variety of situations and connected to both goods and services. To another
extent, these researchers defined satisfactions as a “highly personal assessment” that is
greatly influenced by “individual expectations”. The definition view “individuals” element as
powerful force to create satisfaction.

“Oliver,1981;Brady and Robertson, 2001” Conceptualize customer satisfaction as an

individual feeling of pleasure or disappointment resulting from comparing a product’s
perceived performance(or outcome) in relation to his or her expectations.

“Boulding et al(1993)and Yi and La(2004)” Conclude satisfaction into two general

conceptualizations: transaction-specific satisfaction and cumulative satisfaction.

“Crocin and Taylor, 1992; Boshoff and gray, 2004”Transaction-specific satisfaction is a

customer’s evaluation of his or her experience and reactions to a particular service encounter

“Jones and Suh 2000” Cumulative satisfaction refers to customers overall evaluation of
consumption experience to date

___________________________________________________________________________
_________________

The centre for the study of social policy(2007)-“Customer satisfaction: Improving quality and
access to services and supports in vulnerable neighbourhoods”-yearly research

Brady, M.K, and Robertson, C.J(2001). Searching for consensus on the antecedent role of
service quality and satisfaction: an exploratory cross-national study. Journal of business
research,51(1),53-60

Oliver, R.l(1981) Measurement and evaluation of satisfaction processes in retail settings.

Journal of retailing, 57(3), 25-48

Boulding, W.,Kalra,A.,Staeling,R., and Zeithaml,V.A(1993). A dynamic process model of

service quality: from expectation to behavioural intentions. Journal of marketing
research,30(1),7-27
Y,Y.J., and La,S.N.(2004). What influences the relationship between customer satisfaction
and repurchase intention? Investigating the effect of adjusted expectations and customer
loyalty. Psychology and marketing, 21(5),351-373

Jones,M.A.,and Suh,J.(2000). Transaction-specific satisfaction and overall satisfaction: An

empirical analysis. Journal of services marketing,14(2),147-159

Alvin Ab-rahan and Anil Nain (2003) in their title “Customer statement redesign” Improving
customer satisfaction and reducing cost. Utility companies always target to provide better
services and solutions to their customers. Customer statements in the utilities industry act as
direct interfaces with which the industry interacts with its customers. This paper provides
how the customer statements were redesigned to provide customer satisfaction through a
better look and feel while in the process proving cost savings to the company

Kelly Whitney (2006), Customer advocacy and customer satisfaction the typical
measurements around customer satisfaction of service delivery are customer advocacy or
customer loyalty is typically very different and there are questions around willingness to
repurchase and willingness to recommend you others. You can make a customer satisfaction,
but they will really recommend you to others, and will they really repurchase from you
again? Unless you ask these questions, you don’t know. There is nothing like the voice of
customers

Smith Marshal (2000), Customer satisfaction measures the customer perceptions of how well
the company delivers on the critical success factors and dimensions of the business. These
usually include factors like services promptness, staff responsiveness, and understanding the
customer problem

Frank Huber, Andreas Herrmann, Martin Wricke(2006), The goal of this current study is to
extend customer satisfaction research in two important ways. First, it attempts to demonstrate
the relationship between customer satisfaction and price acceptance. Second, as Voss,
Parasuraman and Grewal claim that only a small proportion of the existent satisfaction
research focuses on services, we empirically analyse the relationship between customer
satisfaction and price acceptance in the food industry. Finally, the implications of the study’s
findings for research into purchasing patterns and pricing policy are discussed
Alvin ab-rahan and anil nain(2003) Customer statement redesign” in research works

Kelly whitney(2006)” Customer advocacy and customer satisfaction” in journal of marketing

vol 3, pg-45-48

Smith marshal(2000)” Dimensions of the business” in journal of marketing, vol 3, pg- 67-79

Frank Hubber, Andreas Herrmann, Martin Wricke”Journal of product&brand

management”2006

Edward U.Bond III, Ross l.Fink(2003), Despite long standing interest in the quality
movement by marketing scholars, marketing managers have not cantered attention on
customer satisfaction. Significant corporate investments in quality programs suggest that the
recent revision of the ISO 9000 standards to focus on collection and use of customer
satisfaction data may provide marketing managers an invitation to meaningfully enter the
quality dialogue. Collaboration between marketing and quality management is problematic
because the two functions are highly differentiated. This article draws on work in
organizational learning and organizational behaviour to identify criteria for successful
collaboration between marketing and quality management and to propose a process for
meeting the new ISO 9000 requirements

M.Mellin, A.Spiller and A.Zuhlsdorf(1997):The importance of direct marketing for high

quality farm products has increased in the last few years. This paper analyses the impact of
customer satisfaction and its driving forces for farmer-to-consumer direct marketing and is
based on a customer survey in 30 organic and conventional on-farm stores in Germany. The
results emphasize the role of the store atmosphere and customer service as the main
influencing factors on customer satisfaction

Michael Conklin, Ken Powwaga, Stan Lipovetsky GFK(2004) “Customer satisfaction

analysis: Identification of key drivers European journal of operational research,2004” a
problem in identifying key drivers in customer satisfaction analysis is considered in relation
to Kano theory on the relationship between product quality and customer satisfaction using
tools from cooperative game theory and risk analysis. We use Shapley value and attributable
risk techniques to identify priorities of key drivers of customer satisfaction, or key dissatisfies
and key enhancers

__________________________________________________________________________
Edward U. Bond III, Ross l.Fink” Journal of business and industrial marketing”2003

M.Mellin,A.Spiller and A.Zuhlsdorf,(1998)”Farmer to consumer direct marketing for organic

and regional products” Wissens chaftstagung Okologischer Landbau. Beitrag Archiviertuner
http:/orgprints.org/view/projects/wissenschaftstagung-2007

Michael Conklin, Ken Powaga, Stan Lipvetsky GFK(2004) Customer satisfaction analysis:
Identification of key drivers European journal of operational research,2004

1.4 STATEMENT OF THE PROBLEM

Today companies are facing their toughest competition of winning the customers and their
satisfaction. Due to stiff competition within the milk industry as new private milk production
are emerging. In the past years AAVIN is serving good to the customers. Creating awareness
is more important to attain more sales. To know the actual satisfaction of AAVIN with regard
to milk in Krishnagiri district this survey is conducted

1.5 OBJECTIVE OF THE STUDY

1. To identify the level of satisfaction of the customers
2. To analyse the awareness level of the customers
3. To understand the main factors influencing the purchase of Aavin

1.6 SCOPE OF THE STUDY

The study is mainly intended to ascertain customer satisfaction and factors influencing
product selection. It is believed that such a study will throw light on the strength and
weakness of the dealer on one hand. The scope is mainly focused on giving information to
the company about what to do or what are the pitfalls or weakness that the company is
presently having. These weaknesses can be studied in detail and good remedies can be taken
to improve the company’s well being. The scope also extents about to know what are
people’s opinion about the company’s service and product, their awareness, likes and dislikes
and the company can take into consideration the suggestion made by them. Thus findings and
other study may help the service provider to analyse the needs of the people and bring before
them what they needed and moreover to attain a competitive edge over its rival
1.7 COMPETITIVE STRENGTH OF THE COMPANY

STRENGTH:

It is a co operative unit, contains more human resource

Products are first class quality, agmark and ISI certified
It gives life to the 430 employees as well as the farmers through the co operative
societies
It has the leading position in the market
It is a public sector it is a service based organization
Organization contains 55 acres, with plant and machineries, storage, and
official buildings etc

WEAKNESS:

It runs in loss for a long time, it is not good for the future of the organization,
It sells its own products for the federation for very low cost though it has very big
market share in its own region.
Though there is more demand for aavin products in its own region it cannot supply
the needs and fulfill the demand because it sends all the products to the federation. It
is a public/ service sector though heavy loss was not considered as a big or important
issue, but traveling in this position leads to heavy loss and comes to decline stage in
very short term, and the objectives of organization cannot be fulfilled.
The organization runs with loss it is not good for the employees and the farmers
in rural areas.
It is a service sector but the production cost is more than its competitors products

OPPORTUNITIES:

Aavin has more opportunities to develop the organization

Aavin can extend its parlor throughout the district including rural
areas Aavin can focus on domestic engineers to develop the sales
The management can take steps for development activities like visual and attractive
advertisements and door deliveries of the products
The agents should be appraised according to their performance to develop the sales
 Aavin can introduce its parlors with coffee wending machines and refrigerators in
educational institutions, companies, hospitals, and offices etc., to develop the sales.
Aavin can take steps to advertise its products in visual medias like internet,
televisions etc
Aavin can introduce offers for bulk purchase of its products by this it can develop its
sales

THREATS:

The organization doesn’t supplies the actual needs of the customers, though it
has very big market share
Aavin doesn’t satisfy the and expectations of the customers
The packaging was not attractive and eye catching it is very simple, the
packaging should be colour full and attractive for all age groups
There is no advertisements to develop the sales
There is no offers to its products at purchase
It supplies its own product to its federation for very low cost this is not good for the
organization’s development
The organization contains additional staffs then the required
The organization’s profit was not even enough to the salaries of the employees
though it is a service sector so it is not considered as an important issue, but the
production cost is very high when compared to its competitors.
CHAPTER 2
ORGANISATION PROFILE

2.1 HISTORY OF THE ORGANISATION

The word co-operation comes from the Latin word Consensio which means working
together for a common purpose. Milk is the standard one of the living of the farmers. Since
the prevailing drought condition push them to go for another source of loving. Another one is
ensuring prompt payment by the co-operation organization which attracts the milk producers
to produce more milk with good quality.

The Dharmapuri District Co-operative Milk Producers Union Ltd, has registered under Co-
operative societies on 29-05-1982 and started its functioning with effect from 01-06-1982.
The Tamil Nadu Co-operative Milk Producers Federation Limited Chennai has handed over
the assets and liabilities to the union on 16-11-1982.

The union consists of three milk chilling centers one is at the own plant (1,50,000 liters per
day) and the other two are respectively in Dharmapuri (50,000 liters per day) And
Denkanikottai (10,000 liters per day). The unit is a feeder balancing diary with the capacity
of 1,50,000 liters per day.

Aavin milk started its loose milk supply to the customers in 1977, by government under the
control of dairy development corporation. In the year 1982, it reached its maturity with the
establishment of co operative milk producers union.

The supply of packet milk is introduced in 1986, which had a good welcome among the
customers. Besides the supply of milk to fulfill the needs of the public it also produces and
supplies good quality of ghee, Milk khoa, Skimmed milk powder,flavoured milk etc.

In dharmapuri district 15,000 liters of milk is supplied to the consumers per day. About
1,40,000 lts of milk have been collected from the dharmapuri district. And about 75,000 lts
of milk have been delivered to Chennai daily from the krishnagiri Aavin ltd.

2.1.1 ORIGIN OF THE ORGANIZATION:

Aavin , krishnagiri ( Dharmapuri district co operative milk producers union limited) was
started in the year 1982 and they follow the principles of co operative laws. It is a feeder
balancing diary and it is located at outskirts of krishnagiri.
The Dharmapuri district co operative milk producers union ltd., has been the Tamilnadu co
operative milk producers federation limited. It has handed over the assets and liabilities in the
union on 16-11-1982.

At the beginning 310 village co operative societies were the members of the union now it was
raised up nearly 860 societies.

The union purchase milk if the following percentage of FAT and SNF present in the milk.

The milk should contains 4.5% of FAT and 8.5% of SNF(solid non fat).

2.2.1 ORGANISATION DETAILS

1. Date of Registration of the DDCMPU ltd, krishnagiri : 29-05-1982

2. Date of Starting of DDCMPU ltd, kishnagiri : 16-11-1982

1. Area of Operation : Dharmapuri and Krishnagiri Revenue Districts

2. Dairy Cooperative Society Status
a) No. of DCS organized : Dharmapuri District 461

b) No. of DCS Functional : Dharmapuri District 357

: Krishnagiri District 222
Total 579
3. Share Capital
a) Authorized Capital : Rs. 50,00,000
b) Paid up Capital : Rs. 24,34,800
4. Present milk procurement/ day : 1,10,778 liters
5. Through BMCC Procurement : 53,816 liters
6. Average milk Dispatch to Chennai for FBD/CC/BMCC/day : 77,157 liters
7. Present Average local sales / day : 22,300 liters
8. By-products manufactured : Butter, Ghee, SMP, Khoa, Butter Milk, Curd,
Badam Mix
9. At present 430 employees are working in the krishnagiri Aavin ltd
 2.2.1 ORGANISATION STRUCTURE

CHAIRMAN (ELECTED)

GENERAL MANAGER

DEPUTY GENERAL
MANAGER (PRODUCTION)

ASSISTANT GENERAL ASSISTANT GENERAL ASSISTANT GENERAL MANAGER

MANAGER (DAIRY) MANAGER (ENGINEERING) (QUALITY CONTROL)

MANAGER (DAIRY)
MANAGER (ENGINEERING) MANAGER (QUALITY

MANAGER JM (D) LAB ASSISTANT

TECHNICAL OPERATORS SENIOR FACTORY ASSISTANTS SENOR FACTORY ASSISTANTS

(SFA) (SFA)
2.3 PRODUCT PROFILE

2.3.1 PRODUCTS

To satisfy the varying needs of the consumer it is supplied in different quantities like 250 ml
and 500 ml. Milk is delivered to consumers daily at the number of Aavin parlours both in
morning and evening. The cost of one month requirements of milk has to be remitted as a
advance in this office.

Apart from their milk it also produces milk products like Ghee, Butter, Milk khoa, Skimmed
Milk Powder. They are hygienically packed and easy to handle. Due to its good quality it can
attain top place in the market if necessary steps are taken.

Raw materials for the firm are purchased from urban and rural areas of local district that
get reasonable price for their pains. Aavin not only supplies the needs of the consumer but
also provides employment (full time, part time) for a number of people.

1. MILK:

Milk is collected from various places with varying fat and nonfat content. So it is
necessary to process the milk to make the fat and nonfat content uniform. There is an
instrument known as cream separator it is used to separate cream from milk which as high fat
content. Based on usage of milk there are various kinds of milk. Different kinds of milk are
produced by altering the fat content.

2. MILK KHOA:
3. CURD:
Milk is heated and cooled. It is added with starter culture is left undisturbed until
curd is obtained. It is packed and sold.

4. BUTTER MILK:
Milk is heated and cooled and inoculated with starter culture. After curdling the
curd is churned and then flavoured with coriander leaves, ginger and salt.

5. SKIMMED MILK POWDER:

The skimmed milk is sent in to the drying plant. At first the milk is sent to the
evaporation plant. Here excess of water is removed and a concentrate is
obtained. The concentrate is sent through the spray drying plant. Here milk is
sprayed through a nozzle as fine droplets. Heat air is blowed in to the chamber
by the radiators. Solid materials settles down and at the bottom the water vapour
is sent out to the exterior. The powder is sent through the vaccum chamber and
then packed.
 6. GHEE:
A part of butter is taken and melted. During this process butter milk is obtained. It is
removed to quicken heating. Then it is passed in to another furnace and heated up to
120 degree C. it is cooled and filtered and packed and then stored in tins.

7. BUTTER:
Butter is a mixture of milk fat, butter milk and water. Cream is separated from milk.
It is then sent in to the churner for churning the fat particles gather as a mass and it is
butter. After removal of butter the remaining is called as the skimmed milk. It is
separated and again the butter is churned with chlorinated water. After washing the
butter is removed from the churn, packed and stored in cooling cells.

The union is conducting marketing survey with the help of field supervisors and office
staff then and there to know about the customers satisfaction about the “AAVIN”
products. DDCMPU Ltd also sale the products from other diaries and which is not
produced in its krishnagiri plant. Some of those products are:
FLAVOURED MILK:

Double toned milk is used for production of flavoured milk. The fat level is 1.5% S.N.F.
is 8.5% it is added with the desired flavour and 12% sugar. The contents are boiled and
cooled and are bottled.

Flavoured milk is not produced in krishnagiri diary though it has a good market in this
area so it is imported from the other unions and marketed by the krishnagiri union.
Flavoured milk can be available for various flavours according to the customers need,
like venila, strawberry, carrot, apple, banana, pineapple,badam, pista, chocolate, etc

CONDENSED MILK:

AAVIN SWEETS:

Aavin also markets the sweet items from the other union producers during the festival
season to satisfy the needs of the customers, some various aavin sweet products are
mysore paa, gulab jamun, barfees(with variety of flavours), ice creams, chocobars etc.,
2.4 MARKET POTENTIAL

Table 2.1 Present status of the industry:

CHILLING PLANTS CAPACITY

Krishnagiri Aavin ltd 1,50,000 lts per day

Dharmapuri 50,000 lts per day

Denkanikottai 10,000 lts per day

Table 2.2 The rate of production of the milk products per month are as follows:-

PRODUCTS RATE OF PRODUCTION (per month)

GHEE 1376 kg
BUTTER 602.5 kg

MILK 376 kg
SKIMMED MILK POWDER 1243 kg

Table 2.3 According to the varying needs of the consumers the products the products
are solid in different quantities.

PRODUCTS QUANTITIES

MILK ½lt, ¼lt packets.

GHEE 200gms, 500gms, 1kg, 5kg, 15kg Tins.

BUTTER 500gms, 20kg To other states.

MILK KHOA 50gms, 100gms, 500gms, 1kg packets.

SKIMMED MILK POWDER 500gms, 1kg, 25kgs.

It occupies the reputed place in the market for its quality, compared to the other players in the
market.

The union selling the milk and milk products in the following major areas:

‘ BANGALORE
‘ HOSUR
‘ KRISHNAGIRI
‘ DHARMAPURI

SALES DATA:

Table 2.4 Sales data during 2011(March) – 2012 (April)

S.NO ABSTRACT SALES IN Rs.

1 MILK SALES 1035536506.80
2 MILK PRODUCT SALES 204973180.98
TOTAL 1240509687.78

PARTICULARS : 2011-2012

MILK (in lakhs) : 513

MILK POWDER (in tons) : 1920

BUTTER (in tons) : 2050

GHEE (in tons) : 1410

Table 2.5 Procurement detail April – 2012

SL.NO NAME OF THE TARGET ACHIVEMENT SHORTFALL %

TEAM
1 KRISHNAGIRI 53000 38590 14410 27

2 DHARMAPURI 77000 61242 15758 20

3 DENKANIKOTTAI 5000 3357 1643 33

TOTAL 135000 103189 31811 23

Table 2.6 Procurement detail April – 2013

SL.NO NAME OF THE TARGET ACHIVEMENT SHORTFALL % TEAM

1 KRISHNAGIRI 69000 52824 16176 23

2 DHARMAPURI 84200 70161 14039 17

3 DENKANIKOTTAI 6800 5573 1227 18

TOTAL 160000 128558 31442 20

2.6 DESCRIPTION OF VARIOUS FUNCTIONAL AREAS

2.6.1 SALES DEPARTMENT

.The union selling the milk and milk products in the following major areas:

‘ BANGALORE
‘ HOSUR
‘ KRISHNAGIRI
‘ DHARMAPURI

The Union Makers

• Card Sales
 • Cash Sales
• Credit Sales

CARD SALES:

Under the credit sales system one month advance payment received before and a milk
card containing 500ml, 250ml, 750ml, and 1 liters as desired by the consumers.

CREDIT SALES:

Under the credit sales milk is supplied on credit based to the major institution and
colleges particularly at HOSUR and another two marketing areas DHARMAPURI and
KRISHNAGIRI.

CASH SALES:
Under cash the cash is issued on the basis of milk supplied.

2.6.2 ACCOUNTS DEPARTMENT

The various books maintained by the concern are:

¾ Cash Chitta book

¾ Pay book
¾ Sundry debtors
¾ Sundry creditors
¾ Receipt bill
¾ Bank payment
¾ Voucher
¾ Journal
¾ Bank reconcillation statement
¾ Credit note
¾ Debit note
¾ Casual labour engagement register
¾ Salary book
¾ Purchase book
¾ Sales book
AUDITING:

st
Accounting year was 01-04 of every year to 31-03 of the next year (ie ., year ending 31
march). The government and internal auditors sincerely audited accounts of the every and
signed by the auditors.

2.6.3 QUALITY CONTROL DEPARTMENT:

QUALITY CONTROL LAB:

Quality Control Lab plays a vital role in the diary for producing pure milk and milk products
without and contamination and defaults. The products which are made in krishnagiri diary is
tested here for good quality. The products of “THE DHARMAPURI DISTRICT CO –
OPERATIVE MILK PRODUCERS UNION LIMITED” Krishnagiri is recognized by
“INDIAN STANDARD INSTITUTE” (ISI).

DESCRIPTION OF MILK BY A CHEMIST:

Milk is an emulsion of fat in a watery solution of sugar and mineral salts and with protein in a
colloidal suspension.

COMPOSITION OF MILK:

Water - 87.25%

Dry matter - 12.75%

Fat - 3.80%

Protein - 3.50%

Sugar - 4.80%

Ash - 0.65%

MINERAL CONTENTS OF AAVIN MILK IN 100 ml OF MILK:

Calcium - 125 mg

Sodium - 50 mg

Magnesium - 10 mg
Potassium - 150 mg

Phosphate - 210 mg

Citrate - 200 mg

Chloride – 100 mg

Bicarbonate – 20 mg

Sulphate – 10 mg

2.6.4 PROCUREMENT AND INPUT SECTION

PROCUREMENT AND INPUTS:

The main process of P & I section in krishnagiri aavin limited is collecting the milk from the
co operative societies to the farmers motivation. These procurements has been done by
some specified routes. It has divided into three teams as

Dharmapuri

Krishnagiri

Denkanikottai.

Under the milk production process these section collects and sales the milk to the diary.

The other main duties of this section are:

Arranging for new societies to the farmers

Maintaining the quality of milk in all societies
Expanding the production of milk
Buying the best quality of milk and selling for diary
Fixing a target to increase the performance in all the activities
Weekly counseling, meetings and other activities are done by this section

There are number of doctors are working and separating the areas and doing their works
like caring the cattle, supplying good quality of tested cattle feeds, and medical activities
like injecting supplying medicines for cattle etc.,
Table 2.7 Milk procurement

Krishnagiri Dharmapuri Total

Diary chilling 1 1 2
centers
Functioning BMCCs 1 13 15
Functional DCS 216 278 494
Members in co 68210 123956 192166
operative
Pouring members 11067 13268 24335
Milk 60698 69701 130399
procurement(LLPD)
Average local sales 18336 5072 23408
(lts)
Total milk 19 10 29
procurement routes

Table 2.8 Input activities:

Krishnagiri Dharmapuri Total

Input routes 6 6 12
DCS covered under 216 278 494
animal health cover
Artificial 54 137 191
insemination
centers
Artificial 3256 8205 11461
insemination
done/month
Causes treated 1852 3031 4883
The Structure of Indian Dairy Industry

Indian Dairy
Industry

Organized Unorganized
(20%) (80%)

Private Cooperatives Government

dairies Societies
State cooperatives and its Offerings

Milk Butter Ghee Buttermilk Lassee Dahi Ice

Cream

Amul – Gujarat       

Vijaya – Andhra     
Pradesh

Nandini ‐       
Karnataka

GokulKholhapur       

Verka ‐ Punjab      

Milma ‐ Kerala     

Mahanand –     
Maharashtra
CHAPTER 3
 RESEARCH METHODOLOGY

3.0 METHODOLOGY

3.1 Type of study

The type of study undertaken is descriptive study

3.1.1 Sampling technique

A convenient sampling technique is used

3.1.2 Sample size

The sample size is 150

3.1.3 Tools for data collection

Primary method of data collection is done through questionnaire administered to the

respondents. Secondary method of data collection id done through the websites, books,
journals

3.1.4 Tools for analysis

1. Simple percentage analysis
2. Mean score

3.2 LIMITATIONS
1. The study is limited to customers in Krishnagiri city only
2. The study is done only for short period/span of time
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 Demographic Profile of the Customers

4.1.1 Age of the customers

Age No. of respondents Percent

Below 20 26 17.3
21 to 30 64 42.7
31-40 38 25.3
41-50 16 10.7
Above 50 6 4
Total 150 100

42.7% of respondents belong to the age group 21-30. 4% of respondents belong to the
age group above 50
4.1.2 Gender of the customers

Gender No. of respondents Percent

Male 88 58.7
Female 62 41.3
Total 150 100

58.7% of respondents are male and 41.3% of respondents are female

4.1.3 Marital status of the customers

Marital status No. of respondents Percent

Married 86 57.3
Unmarried 64 42.7
Total 150 100

57.3% of respondents are married and 42.7% of respondents are unmarried

4.1.4 Educational Status of the customers

Educational Status No. of respondents Percent

HSC 36 24
UG 70 46.7
PG 23 15.3
Others 21 14
Total 150 100

46.7% of respondents are under graduates

 4.1.5 Income/ Month

Monthly income No. of respondents Percent

Below Rs. 10000 46 30.7
Rs. 10001 to 20000 45 30
Rs. 20001 to 30000 33 22
Rs. Above 30001 10 6.7
None 16 10.7
Total 150 100

30.7% respondents monthly income is below 10000 and 30% of respondents monthly income
is between Rs.10001 to Rs.20000

4.2 Mode of awareness

Factor No. of respondents Percent

Word of mouth 47 31.3
Retailers 68 45.3
Internet 30 20
Others 5 3.3
Total 150 100

45.3% of respondents are aware through retailers

4.3 Consumption of milk per day

Factor No. of respondents Percent

250 ml 5 3.3
500ml 54 36
1 lt 75 50
2 lt 15 10
more than 2lt 1 0.7
Total 150 100

50% of respondents are purchase 1lt of milk per day

 4.4 Awareness towards Aavin products

Sl Factors Very Much Aware Aware Not

No
Aware
No of % No of % No of %
respondents respon respo
dents nden
ts

1. Standardized 116 77.3 27 18 7 4.7

milk
2. Toned milk 31 20.7 103 68.7 16 10.7
3. Double toned 56 37.3 52 34.7 42 28
milk
4. Full cream milk 63 42 36 24 51 34
5. Flavored milk 31 20.7 74 49.3 45 30
6. UHT milk 23 15.3 29 19.3 98 65.3
7. Ghee 106 70.7 54 16 20 13.3
8. Cheese 80 53.3 48 32 22 14.7
9. Butter milk 62 41.3 52 34.7 36 24
10. Butter 93 62 32 21.3 25 16.7
11. Ice creams 86 57.3 53 35.3 11 7.3
12. Sugar free ice 13 8.7 65 43.3 72 48
creams
13. Curd 85 56.7 43 28.7 22 14.7
14. Aavin sweets 78 52 51 34 21 14
15. Skimmed milk 12 8 39 26 99 66
powder

Majority of the respondents are very much aware of standardized milk and butter
 4.5 Usage of Aavin milk

Factor No. of respondents Percent

Less than 1yr 21 14
1- 3yrs 71 47.3
4 - 7yrs 42 28
above 7 yrs 16 10.7
Total 150 100

47.3% of respondents use Aavin milk for 1-3yrs

4.6 Purchase of Aavin product

Sl Factors
Regular Occasional Never
No
No of % No of % No of %
respondents respon respo
dents nden
ts

1. Standardized 128 85.3 17 11.3 5 3.3

milk
2. Toned milk 29 19.3 98 65.3 23 15.3
3. Double toned 39 26 42 28 69 46
milk
4. Full cream milk 58 38.7 44 29.3 48 32
5. Flavored milk 45 30 68 45.3 37 24.7
6. UHT milk 13 8.7 35 23.3 102 68
7. Ghee 96 64 34 22.7 20 13.3
8. Cheese 71 47.3 52 34.7 27 18
9. Butter milk 46 30.7 52 34.7 52 34.7
10. Butter 91 60.7 30 20 29 19.3
11. Ice creams 64 42.7 67 44.7 19 12.7
12. Sugar free ice 18 12 48 32 84 56
creams
13. Curd 84 56 43 28.7 23 15.3
14. Aavin sweets 57 38 67 44.7 26 17.3
15. Skimmed milk 10 6.7 29 19.3 111 74
powder
Majority of the respondents buy standardized milk and ghee regularly
 4.7 Satisfaction

Sl Factors Highly Satisfied Neutral Dissatisfied Highly Mean Ra

No satisfied dissatisfied nk
No of % No % No % No % No %
respon of of of of
dents resp resp resp resp
ond ond ond ond
ents ents ents ents

1. Price 81 54 46 30.7 19 12.7 3 2 1 0.7 4.353 1

2. Quality 59 39.3 80 53.3 6 4 4 2.7 1 0.7 4.280 2

3. Taste 70 46.7 39 26 31 20.7 6 4 4 2.7 4.100 3

4. Availabili 24 16 31 20.7 36 24 50 33.3 9 6 3.073 6

ty
5. Package 36 24 27 18 36 24 35 23.3 16 10.7 3.213 5

6. Delivery 14 9.3 27 18 25 16.7 36 24 48 32 2.489 9

at home

7. Brand 32 21.3 26 17.3 48 32 34 22.7 10 6.7 3.240 4

Image
8. Payment 9 6 32 21.3 28 18.7 41 27.3 40 26.7 2.526 8
terms
9. Variety 31 20.7 27 18 24 16 47 31.3 21 14 3.000 7

Majority of respondents are satisfied with price, quality and taste. Respondents are neutral in
opinion with availability package brand image and variety. Respondents are dissatisfied with
delivery and payments terms
 4.8 Recommendation of others Aavin milk to others

Factor No. of respondents Percent

Yes 63 42
Maybe 58 38.7
No 29 19.3
Total 150 100

42% of respondents recommend Aavin milk to others

4.9 Experience of problems with Aavin milk

Factor No. of respondents Percent

Yes quite often 20 13.3
Yes quite rarely 46 30.7
No 84 56
Total 150 100

56% of respondents don’t face any problem with Aavin milk

CHAPTER 5
5.1 FINDINGS

1. 42.7% of respondents belong to the age group 21-30. 4% of respondents belong to the
age group above 50
2. 58.7% of respondents are male and 41.3% of respondents are female
3. 57.3% of respondents are married and 42.7% of respondents are unmarried
4. 46.7% of respondents are under graduates
5. 30.7% of respondents monthly income is below 10000 and 30% of respondents
monthly income is between Rs.10001 to Rs.20000
6. 45.3% of respondents are aware of Aavin milk through retailers
7. 50% of respondents are purchase 1lt of milk per day
8. Majority of the respondents are very much aware of standardized milk and butter
9. 47.3% of respondents use Aavin milk for 1-3yrs
10. Majority of the respondents buy standardized milk and ghee regularly
11. Majority of respondents are satisfied with price, quality and taste. Respondents are
neutral in opinion with availability package brand image and variety. Respondents
are dissatisfied with delivery and payments terms
12. 42% of respondents recommend Aavin milk to others
13. 56% of respondents don’t face any problem with Aavin milk
5.2 SUGGESTIONS

1. More awareness should be created about the products of Aavin

2. Advertisement can be done to promote products of Aavin
3. Payment terms and delivery of Aavin milk can be improvised
4. Products of Aavin should be reached to customers in easy way
5. All products should be available in Aavin booth so that customers may be aware of
other products of Aavin
5.3 CONCLUSION

Aavin plays a vital role in dairy products. But the competitor the promotions do not
match or equal with the Aavin. Even the aavin products are less in price to comparing the
competitors products. Eventhough the competitors create more competition in the market.
Aavin parlours acquires very less in all the areas. But the competitors even supply the
products by door delivery. So aavin can also do this facility to satisfy the customers and to
make their time as a valuable one. Aavin should increase the coustomer relationship by more
visual and attractive advertisements.

The competitors and aavin all contains milk products like ghee, curd, etc but the
products of the competitors are well known by the customers, most of the customers are not
aware of aavin products this is the major barrier to aavin. And it should be recovered
immedietly. The products of aavin is more related to domestic engineers so aavin should
focus on these peoples. So it should increase the visual advertisements. In all areas aavin has
market but there is no supply, due to the federation and the agents sells other products by de-
motivating the aavin products.

The overall job satisfication is good in DDCMPU Ltd. DDCMPU Ltd provides good
institutional climate for the employees and to make the product as a pure and good. The water
used for machineries was not good it contains more salt so the machineries becomes spoiled
regularly. Most of the machineries are form abroad.it causes very high unexpected expenses
to the organization. So the management should take steps to avail the supply of RO water to
the machineries.
CHAPTER 6
REFERENCES / BIBLIOGRAPHY

REFERENCE BOOKS:

MODERN DAIRY products by Lincoln.M.Lampert (1970)

Milk and products by Clarence Henry Eckles willes barner combs, Harold Macy, IV Edition

(1984) Indian Standards Part 11

Indian Standards IS: 5401 - 1966

Indian Standards IS: 5402 – 1969

REFERENCE WEBSITES:

WWW. TNGOV/AAVIN.COM

WWW.AAVINDHARMAPURI.COM

www.aavinmilk.com
ANNEXURE
QUESTIONNAIRE

1. Name :

2. Age (In Years)

a) Below 20 b) 21 to 30 c) 31 to 40 d) 41 to 50 e) Above51

3. Gender
a) Male b) Female

4. How did you come to know about Aavin products?

a) Word of mouth b) Retailers c) Internet d) others please specify____

5. Marital Status
a) Married b) Unmarried

6. Educational qualification
a) HSC b) UG c) PG d) others

7. Monthly Income

a) Les than 10000 b) 11000‐20000 c) 21000‐30000 d) above 30000

8. How much milk do you consume per day?

a) 250 ml b) 500ml c) 1lt d) 2lt e) more than 2lt
9. Please mention the level of awareness regarding Aavin products

Products Very Much Aware Not Aware

Aware
Standardized milk

Skimmed milk

Ghee

Butter milk

Butter

Yoghurt/curd

Condensed milk

Aavin sweets

Skimmed milk
powder

10. Which of the following Aavin product you have been purchasing.

Products Regular Occasional Never

Standardized milk

Skimmed milk

Ghee

Butter milk
 Butter

Yoghurt/curd

Condensed milk

Aavin sweets

Skimmed milk
powder

11. How long are you using this brand?

a) Less than 1yr b) 1- 3yrs c) 4 - 7yrs d) above 7 yrs

12. Rank the factors which influenced you to go for Aavin milk. (1‐Highly Influencing to
9‐Least Influencing)
Factor Rank
Price

Quality

Taste

Availability

Package

Delivery at home

Brand Image

Payment terms

Variety
13. Mention your level of Satisfaction with regard to Aavin Milk

Factor Highly Satisfied Neutral Dissatisfied Highly

satisfied dissatisfied

Price

Quality

Taste

Availability

Package

Delivery at

home

Brand

Image

Payment

terms

Variety

14. Would you like to recommend others to buy the product of Aavin milk?

a) Yes b) No

15. Have you experienced any problems with Aavin milk?

a) Yes quite often b) yes quite rarely

c) no