DECLARATION

I,Mr.SAGAR PUROHIT (REG NO. MBA09003087) hereby declare that the project
report entitled “CUSTOMER SATISFACTION TOWARDS HATTARKI FEEDS ”” at
HATTARKI FEEDS, Belgaum has been prepared by me, under the supervision and
guidance of Prof. Deepa More, I.M.E.R., Belgaum and now being submitted to Karnatak
University Dharwad in his partial fulfillment of the University Regulation for the award of
the degree of Master of Business Administration.

I further declare that this project report is based on the original study undertaken
by me and has not formed a basis for the award of any other degree / diploma of any
other University.

Date:

Place: Belgaum

SAGAR.G.PUROHIT
 ACKNOWLEDGMENT

This project bears the imprint of many distinguished personalities. The Employees at
HATTARKI FEEDS, Belgaum, during my research period have played a vital role in
showing me what the corporate life actually is all about. They also made an impact on
my mind as to how one should work in an industry. I will be intended to them forever.

I take this opportunity to my deepest gratitude to Mr. RAJEEV HATTARKI, Mr. M.R.PATIL
and all the staff at HATTARKI FEEDS for permitting me to do my project in their
esteemed organization.

I am extremely thankful to Dr.A.B.Kalkundrikar, Principal Institute of

management education and research College of Management and Prof Deepa More,
Lecturer and Internal Guide for letting us to go through this experience.

I would like to thank my family and friends for their unconditional support during
the making of this project.

SAGAR.G.PUROHIT
 INDEX

S No. PARTICULAR Page No

1 Executive Summary 2

2 Organization Profile 10

3 Introduction to Project Work 24

4 Research Methodology 27

5 Data analysis & Interpretation 29

6 Finding 39

7 Suggestions 40

8 Conclusion 41

9 Bibliography 42

10 Annexure 43
 The Indian feed industry is about 35 years old. It is mainly restricted to dairy and poultry
feed manufacturing. The quality standards of Indian feeds are high and up to international levels.
Raw materials for feed are adequately available in India. The industry's production is about 3.0
million tonnes, which represents only 5 percent of the total potential, and feed exports are not
very high. The feed industry has modern computerized plants and the latest equipment for
analytical procedures and least-cost ration formulation, and it employs the latest manufacturing
technology. In India, most research work on animal feeds is practical and focuses on the use of
by-products, the upgrading of ingredients and the enhancing of productivity.
The country has entered into a period of liberalization and this is bound to influence the
livestock industry. The per capita consumption of milk, eggs and broiler meat will grow. The
Indian feed industry is undergoing a very exciting phase of growth for the next decade.
Feed manufacturing on a commercial and scientific basis started around 1965 with the
setting up of medium-sized feed plants in northern and western India. Feed was produced mainly
to cater to the needs of dairy cattle.

Cattle feeding practices are very traditional. Farmers choose their own ingredients and
prepare their own formulations, believing that by these means they are able to pay more
individual attention to their cattle. The productivity of the cattle is limited because of their poor
genetic make-up, so high-quality compound feed (industry feed) may not necessarily generate a
significant improvement in productivity and this has hampered growth of the cattle feed industry
because most farmers are reluctant to use compound feed fully. Instead they compromise by
using such feed in proportions of 5 to 60 percent, making up the balance with their own
formulations. It is only in the case of highly productive animals that compound feed has been
able to show its real potential and the importance of technology has been demonstrated.
 The share of compound cattle feed manufactured by the industry, in relation to the overall
potential, is low for the following reasons:
• The cattle population is fragmented and spread over large parts of the country. Farmers'
low level of education and strong traditional beliefs mean that there is generally little
awareness of compound cattle feed.
• More than 50 percent of the country's total milk production comes from a very large
number of low-yielding cows and buffaloes. A further 25 percent of milk production
comes from buffaloes and only the remaining 25 percent of the total is produced by cross-
bred and improved cows.
• Industrially manufactured compound cattle feed has proved its value for cross-bred cows
and buffaloes but not for low-yielding cattle because of their genetic limitations. Home-
mixed feed is very frequently used for buffaloes and low-yielding cattle.

India's animal wealth is quite large in terms of its populations of cattle, poultry, sheep and
goats, camels, horses and pets. Recently, aquaculture has also been growing in importance in
India.

Livestock population in India

Livestock type Population (Millions)

Cattle 204.5
Buffaloes 84.2
Sheep 50.8
Goats 115.3
Pigs 12.8
Horses/ponies 0.8
Mules 0.2
Donkeys 0.9
Camels 1.0
Yaks 0.06
Mithuns 0.15
Total livestock 470.86

Source: Directorate of Economics and Statistics, Ministry of Agriculture.

 Worldwide, India is number one in milk production, at 78.0 million tonnes per annum,

and the dairy industry is spread across the whole country. India has one of the largest populations
of cattle and buffalo in the world. In a total of 288 million head, there are 10 million cross-bred
cows, 15 million good milch cows of local varieties and 36 million buffaloes of good milch
varieties .The remainder of the cattle population is of a non-descript variety and a sizeable
proportion consists of bullocks.

Cattle indicators
Dairy
Cross-bred cows (millions) 10.0
Improved cows (millions) 15.0
Improved buffaloes (millions) 36.0
Milk production (million tonnes) 78.0
Per capita consumption (g/day) 240
Annual growth
Dairy industry 5%

Source: CLFMA studies assembled from published reports in Indian dairy and
poultry journals.

India is currently self-sufficient in livestock feeds and does not depend on imports. Instead, the
country exports large quantities of solvent extracted meals, which are a major source of foreign
exchange earnings.

Maize, sorghum and bajra (a type of millet) are commonly used in animal feeds. Wheat and rice
are mainly retained for human consumption.
Commonly used commodities of this kind are soybean, groundnut, rapeseed, sesame and
sunflower meals in poultry feed. In cattle feed, in addition to these meals, others such as
cottonseed and copra are used as premium ingredients.

Some by-products are very nutritious and palatable to cattle, and these products form the bulk of
cattle feed. They include wheat bran, rice bran and oil-extracted rice bran, tapioca, guar meal,
safflower meal, maize gluten and molasses. A special mention should be made of Indian cattle
feed's unique use of hulls or shells, popularly known as chunis in the local language. These shells
come from pulses: horse gram, black gram, mung bean and pigeon pea.

Cattle feed is necessarily enriched with vitamins A and D3, and trace minerals such as iron, zinc,
manganese, copper, cobalt and iodine. Calcium and phosphorus are also included. Poultry feed is
enriched with all of these and all of the B complex vitamins.

Feed additives and supplements have played a very important role in enhancing the performance
of dairy animals and, even more so, poultry. Today they are necessary in any feed formulation
and essential for the formulation of a balanced diet. The additives and supplements used are
antibiotic growth promoters (their usage is not banned in India), prebiotics, probiotics, enzymes,
mould inhibitors, toxin binders, anti-coccidial supplements, acidifiers, amino acids, by-pass fat,
by-pass protein, non-antibiotic growth promoters, milk boosters, antioxidants, feed flavours and
herbal preparations of Indian origin. A number of these products are imported from developed
countries.
For cattle nutritional standards have been prepared with respect to the genotype, environment,
and quality of available raw materials, maintenance methods, production and reproduction
requirements, production capacity and phase of production.
The Bureau of Indian Standards (BIS) is a central government organization that facilitates
discussion between scientists and industry and prepares guidelines and specifications. Table 5
shows the BIS specifications for dairy cattle and Tables

BIS standards, dairy feed requirements

Characteristic
Moisture (maximum %)
Crude protein (maximum
%)
Crude fat (minimum %)
Crude fibre (maximum %)
Acid-insoluble
ash (maximum %)
Type I (IS: 2052, 1979, Type II (IS: 2052, 1979,
reaffirmed 1990) reaffirmed 1990)
11 11
22 20
3 2.5
7 12
3 4

Source: Bureau of Indian Standards, New Delhi, India.

In India, the term "compound feed" refers to feed that is nutritionally balanced and has been
manufactured using the facilities of an analytical laboratory and under the supervision of
nutritionists. There are also a large number of small-scale feed mixers who produce feed for local
consumption. Such feed is termed "self-mixed feed" or "home-mixed feed".
 Given the importance of feed ingredients, Indian scientists have worked on various
aspects of research and development in the field of animal feeds and feeding. In the 1960s, all
Indian raw materials were analyzed for their proximate composition, metabolizable energy
values and deleterious factors. During the 1970s, the government sanctioned special projects to
study the use of by-products in animal feeds. Various by-products were considered and their
nutritional parameters studied (a list of the various by-products available in animal feeds. Indian
scientists analyzed ingredients for their chemical values and studied their biological values, and
this information was useful to the industry in the initial stages of growth. In the 1970s and 1980s
subsequent research was conducted on the energy-protein and energy-amino acid ratios and the
vitamin and mineral requirements of animals. During the next phase of research, the main focus
was on bypass fat and bypass protein utilization in ruminants, and on the role of various feed
additives in enhancing milk, egg and broiler meat production. Research and development work
has been conducted on least-cost formulations and usage of synthetic amino acids.
HATTARKI FEEDS is dedicatedly involved in the manufacturing of Cattle Feed. They have
catered to industries and have established a prominent presence in the market.
Established in the year 1990, Hattarki Feeds and Concentrates are reckoned as one of the leading
cattle Feed Manufacturers and Suppliers from Karnataka. Due to strong-willed & cumulative
efforts of CEO, Mr. Rajeev .N. Hattarki and have achieved a competitive edge in the market.

Quality is the primal objective of the organization. They manufacture products using high quality
ingredients to assure clients of our credibility. In addition to this, conduct stringent quality tests
under our well-equipped laboratories on various quality parameters like ingredients and the
finished products.

Have a state-of-the-art infrastructure that forms the foundation stone of the company. Its large
manufacturing unit is equipped with advanced machines and testing equipments. Besides this, is
also backed by a team of talented workforce who incorporate their experience to produce healthy
feed for cattle. Also possess in-house qualified nutritionists & doctors who have expertise in feed
formulation and professional advice to customers. Moreover, have qualified professionals that
isassures to provide best services and also seminars on quality.
Customer Satisfaction is the chief objective of the company. With an ardor to live up to the
expectations of customers, make continual efforts to provide quality products followed by timely
deliveries. Additionally, they also received various accolades that have assisted in stretching base
in Maharashtra, Karnataka, and Goa.
Furthermore, believe in establishing long-lasting relationships with clients. With perseverance
and competence to lead the competition, also integrated new technology and innovative business
strategies in organization. Moreover, outpaced many of our rivals and have achieved a
competitive edge.
 As purchases of Raw Materials is depended on season as the major crop is during the
Kharif season (June to October), which accounts for 90 percent of the total. The remaining 10
percent is harvested in the Rabi season (November to February).

The main work of this department is to purchase various materials required by different
department. After ascertaining the stock position by stores department and indent is sent by
different department duly approved by the Managing Director. This department act to purchase
materials.

It also maintains records of all the suppliers calls for quotations. Quotations with lowest rate are
sanctioned. Purchase up to 50,000 can be made by Purchase Department. If the purchase amount
is more than 50,000, then the approval of Managing Director.

The 94% of raw materials used in cattle feed are agro based products and by-
Products. They are not available through the year. They store the material, which are Available
seasonally depending upon plant’s capacity from various sources. Most of these by-products are
used in cattle feed. They are regional and seasonal and used, always fresh, in small quantities

Different stages of Cattle Feed production are as follows;

Finished feed is being packed in 50Kg/60Kg H.D.P.E bags and they are stored in
Finished Material Godown. The capacity of the godown is 350 M.Ts. After getting
Clearance from quality controls section feed will be dispatched.

Product Range
Unit has fully equipped laboratory has got equipments glass wares, Chemicals. Quality control
Division has got qualified trained and experienced staff. In laboratory, raw materials,
finished feed and packing materials are being analyzed. Quality control Division
has got computer. Conforming to quality specifications is fixed by Licensing Authority.

Cattle Feeds is prepared from maize flour, rice barn, molasses, vitamins and minerals. It is
prepared by mixing an appropriate proportion of flour and clean water.

Cattle Feeds is manufactured from fresh flour of good quality, free from foreign materials,
substances hazardous to health, excessive moisture, insect damage and fungal contamination and
shall comply with all relevant national food laws and standards. Feeds must be stored under dry,
ventilated and hygienic conditions. Only safe insecticides (i.e.phosphine) may be used for
fumigation control. Where needed, fumigation must be performed by certified operators.

Shelf life: it shall retain above qualities for at least 3 months from date of manufacture when
stored dry at ambient temperatures prevalent in the country of destination.
 Total No of Staff in Administrative Block – 68

The Marketing Division at Hattarki has a workforce of 6 staff. They are concerned with effective
delivery of Feed and work round the clock for the procurement and marketing in state of
Karnataka, Goa and Maharashtra. Marketing Division also consists ensure that every order is
fulfilled and feed is dispatched on time.

This Department is responsible for keeping all the inward and outward flow of money of
union. It prepares budget every year and financial rules for receipts all payments are framed.

The functions of these departments are:

• To prepare monthly accounts (Receipts and payment account P & L account and Balance
Sheet).
• To prepare quarter financial statement.
• To prepare integrated business plan.
• To prepare year ending financial statements.
• To get accounts audited from statutory books of accounts.
Types of auditing followed:

1. Pre-Audit System - done by Finance and Account Department every year.

2. Statutory System - Done by charted accountants every year.

The structure of finance Department is as shown:

 A Survey was conducted by me regarding CUSTOMER SATISFACTION with reference to
HATTARKI FEEDS. So that company can produce & distribute the products & services to satisfy the
targeted customers.

This study is conducted for consumers in selected places of Belgaum only.

This gives more emphasis on the selected consumers for gathering the information about
CUSTOMER SATISFACTION with reference to HATTARKI FEEDS. The research of this kind helps
to put the theoretical aspects in practice.

The research aims to give information about HATTARKI FEEDS, name of the study used, and
findings of the investigations. Recommendations inferred from the findings.

CUSTOMER SATISFACTION towards HATTARKI FEEDS Products.

 Whether the buyer is satisfied after purchase depends on the oilers performance in
relation to the buyer’s expectations in general.

"Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a

products perceived performance (or outcome) in relation to his/her expectations.

As this definition makes clear, satisfaction is a faction of perceived performance and expectation.
If the performance fails short of expectations, the customer dissatisfied, highly many companies
are aiming for high satisfaction, because customers who are just satisfied still find it easy to
switch when a better offer comes along. Those also are highly satisfied are much less ready to
switch high rates faction or delight creates unemotional bond with the brand, net just a rational
preference the result is high customer loyalty.

A customer decision to be loyal or to default is the sum of many small encounters with the
company, consulting firms Etc. Corporation says that in order to convert all the small encounters
to customer loyalty, companies need to create a "Brand Customer Experience".

Customer oriented thinking requires the company to define customer needs from the customer
point of view not from its own point of view. Every product involves tradeoffs, and management
cannot know what these are without talking to and researching customers. The aim, after all, is to
make a sale through meeting the customer’s need.

The main objective of the study is to know the customer satisfaction of HATTARKI FEEDS.

• To know the expectations of consumers among Hattarki Feeds products.

• To know the factors affecting while purchasing a particular Feeds.
• To know the consumers problems with Hattarki Feeds.
• To understand the customer loyalty towards the product.
• The study was done for a short period of time, which might not hold true in the long run.

• The study is limited only to Belgaum.

Hypothesis

H0: less than equal to 95% of the customers are satisfied with the overall product provided by
Hattarki Feeds. (<=95%)

H1: More than 95% of the customers are not satisfied with the overall product provided by
Hattarki Feeds. (>95%)

Primary data: Through survey method by using questionnaire. Primary data was collected from
100 Customers in Belgaum.

Secondary data: Secondary data’s collected from the Company records.

Research approach : Survey method

Research Instrument : Questionnaire

Sample plan : Personal Interview

Sampling method : Convenience sampling

Sample Size : 100 customers

Sample Unit : Company customers

Area of survey : Belgaum.

• Good brand image

• Unique Product

• Strong relationship with customers

• Consistent growth

• Employee’s commitment.

• High quality product and service.

• Distribution channels.

• Market Limited to Dairy’s only.

• Introduction feed for other animal.

• High potential in international market for feeds.

 • Developing dairy market.

• Research and Development.

• Global companies entering state.

• Substitute products.

Q.1 How long have you used our product?

Interpretation – Maximum users of Feeds are Brand Loyal retaining them for more than 5
years. As we can see 63% of the Customers are using Hattarki Feeds from above 5 years. This
show that Hattarki feeds have strong customer base.

Q.2 Which type of feed do you purchase?

Interpretation – Maximum customer preferred Jodnandi as it yields high from cattle. Of our
total customer base 57% of them purchase Jodnandi. Jodnandi is Hot Cake in market because it
gives maximum yield from cattle.

Q.3 How often do you order our products?

Interpretation – We have most customers who frequently order feeds in lots around 3-6 times
per month. Around 36% of the customer purchase around 3-6 times per month. As feeds is a fast
moving good.

Q.4 Overall, how satisfied were you with our product?

Interpretation – We can clearly see that most of our Customers are Very Satisfied with the
product. Around 96% of our customers are satisfied with the attributes of Hattarki feeds. Making
them our frequent buyer.

Q.5 How important are the following characteristics while purchasing feeds?
Interpretation – Most of the customer emphasize on Quality and Price at the time of purchase.
Considering other factors such as Packaging, Timely delivery and Credit Period as Secondary. So
it is clear that customers focus more on quality and price.

Q.6 How satisfied are you with the following characteristics of our product?

Interpretation - Customer is very much satisfied with the yield which is around 91% and
followed by credit period which is 71% this is because Hattarki Feeds Provides optimum credit
facilities to consumers.

Q.7 Thinking of your most recent experience with our product how much do you agree with
the following statements?

Interpretation – Almost all the consumers agree that it does what it claims i.e. 88%. Followed
by 65% does “what is needed” i.e. increase the yield substantially. Hattarki Feeds needs to focus
on its pricing as it can penetrate the market well.

Q.8 Thinking of similar products offered by other companies, how would you compare our
product offered to them?

Interpretation – Around 83 % of the customer expressed it is very clearly that Hattarki Feed’s
Products are much better than competitors.

Hypothesis

H0: less than equal to 95% of the customers are satisfied with the overall product provided by
Hattarki Feeds. (<=95%)
H1: More than 95% of the customers are not satisfied with the overall product provided by
Hattarki feeds (>95%)

Respondents = 100

P =95/100 = 0.95

=0.95*(1-0.95)/100-1

=0.95*0.05/99

=0.0475/99

=0.0004

Take root value p^ = 0.022

Critical value = p+Z at 95% *p^

0.95+1.96*0.022

Z = 0.99

Here we accept H0 as p=0.96 lies in the acceptance region .

• 63% of users of Feeds are Brand Loyal retaining them for more than 5 years. Adding to
our knowledge that Hattarki Feeds have large Loyal Customers. Remaining Concentrated
to 1-5 years of being a prominent purchaser.

• Maximum customer preferred Jodnandi as it yields high from cattles. Jodnandi claims
that it increases the yield of milk by the cows by 2 liters/day and is satisfactory. So
customer prefers buying it even though it is charged much.

• We have most customers who frequently order feeds in lots around 3-6 times per month.
This shows Hattarki feeds products have consistent demand in market.

• 96% of our Customers are satisfied. This shows products are good overall.

• Feeds Customer look for quality and price competiveness.

• Packaging is crucial because dairy farmers Re-Use it for domestic purposes.

• Product is a Fast Moving Good and sufficient storage is available. So delivery period is
not very crucial.

• As feeds products have more bulk buyers, they ask for credits for convenience. Which
Hattarki Feeds is able to provide as they have good Capital Support.

• Price is considered when Diary Farmers are concerned, but Large Dairy farms consider it
reasonable.

• Customer finds it convenient to use. As Cattles consumes it readily or sometime along

with regular fodder without much difficulty.
• Marketing by educating farmers to understand the use of Feeds for better Yields.

• Promote the Brand by use of Attractive Banners with details about the product content
and advantages.

• More promotional campaigns must be started such as providing free samples and
introductory prices.

• Price of the Feeds should be reconsidered to make it more competitive.

• Improve on Distribution Channels by providing incentives for Middlemen and sellers.

• Provide discounts schemes on bulk purchases to have competitive edge over other.

• Use A-Grade Preservatives so as to increase Shelf Life and which eventually can help
sales on National and Global level.

• Use local media such as news papers to promote the product at least once a month.
 Hattarki feeds started in the year 1990. Since then it is able to provide one of the best
quality products in the market. Now Hattarki Feeds is slowing growing its potential in
Maharashtra and Goa too. Taking into picture Customer Satisfaction we can see that they have
been meet the customer demands satisfactorily.

The main emphasis was laid on Quality and Delivery. Use of best quality Raw Materials
and State-of –the-Art Production system has made it happen.

It was a very learning experience for me working with Hattarki Feeds for 2 Months. The
staff was very much excited and co-operative in providing the help I needed. I came across many
practical situations where in I can implement my theoretical knowledge for the betterment of
Hattarki Feeds.
 • www.hattarkifeedsbelgaum.co.in

• www.mottmac.in

• www.rajamb.com/agro-based-industries.shtml

• www.indiaagronet.com/indiaagronet/agrobased_industry.htm

• Marketing Management – Philip Kotler

• Marketing an Introduction – Gary Armstrong and Philip Kotler

Questionnaire for the Customer of Hattarki Feeds

Dear Sir/ Madam,

I am Mr. Sagar Purohit a student of MBA 2 ndsem studying at KLS IMER. As per
the course requirement we need to undergo a project. My project topic is
“Customer Satisfaction toward Hattarki Feeds”. It would be great pleasure for
me if you spend precious time in answering this questionnaire.

1. How long have you used our product?

Less than 6 months More than 6 months but less than 1 year

1-5 years over 5 years

2. Which type Feed do you purchase?

High protein Jodnandi Superme

3. How often do you order our product?

Once per month 2 to 3 times per month

3-6 times per month more than 6 time per month

4. Overall, how satisfied were you with our product?

YES No

Please tell us why you feel that way?

_______________________________________________________________

5. How important are the following characteristics while purchasing feeds?

5 - Very satisfied 4 - Somewhat 3 - Neither satisfied 2 - Somewhat 1 - Very

satisfied nor dissatisfied dissatisfied dissatisfied
Quality
Price

Packaging
Delivery of product on
time
Credit period

6. How satisfied are

you with the following
characteristics of our
product/service?

Quality
Price
Packaging

Delivery of product on
time

Yield

Credit period

7. Thinking of your most recent experience with our product how much do you agree with the following
statements?
3 - Neither agree nor 2 - Somewhat 1 - Strongly
5 - Strongly agree 4 - Somewhat agree
disagree disagree disagree
Product was worth the
purchase price
Product does what it
claims
Product does what I need
Product is easy to use
Product is competitively
priced
8. Thinking of similar products offered by other companies, how would you compare our product offered
to them?

Much better Somewhat worse

Somewhat better Much worse

About the same

9. What suggestions do you have to improve our product/service?

Please fill the below Information

 Name :_____________________________________________________________________

 Address: __________________________________________________________________

__________________________________________________________________

 Contact No: ________________________________________________________________