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Anilkmf final
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  • 1. “Distribution Effectiveness in Hubli-Dharwad for KMF” CONTENT CHAPTER NO TITELE PAGE NO PART-A EXECUTIVE SUMMARY INTRODUCTION INDUSTRIAL PROFILE KARNATAKA MILK FEDERATION COMPANY PROFILE DISTRICT CO-OPRATIVE SOCITIES PART-B PROJECT OVERVIEW DISTRIBUTION CHANNEL PROMOTION COMPETETAR PROFILE SWOT ANALYSIS ANNEXERE ANALYSIS AND INTERPRETATION SUGGESTION & FINDINGS LIMITATION, CONCLUTION & RECCMANDATION QUATIONNAIERE BIBLIOGRAPHYADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 1
  • 2. “Distribution Effectiveness in Hubli-Dharwad for KMF” EXECUTIVE SUMMARY Karnataka milk federation was setup in 1974 on the AMUL pattern it is the thirdlargest co-operative federation in India and first in south India. There are 17 unions inKarnataka. The project is conducted to know the “distribution effectiveness in Hubli-Dharwadfor K.M.F” in Dharwad. As present market is highly competitive, if one not reaches toultimate customer other reaches and grabs the opportunity. So an effort made by the companylike manufacturing, promotion etc. are gets wasted. So it becomes important to reach ultimatecustomer at right time and right place, by knowing the requirement of the market. In 1960‟s & 70‟s the product dominated the market, but presently the scenario haschanged because of the competition (man players in market).Secondly the customer has manychoices to choose a single product, immediately he/she shifts to the other product. After the liberalization many organizations entered the new markets or expandingbusiness into new areas and they have set up the plants in different regions in the country.Hence it has become vital important to local player to compete with them in quality, pricing,distribution etc. under such condition plays very important to grab even small of the smallopportunities. It becomes important to update to the market requirement to compete in competitiveworld. So to know the market requirement we should have proper information from themarket. So I selected this project, which can serve the specified information, which couldhelp to the organization to improve the distribution channel effectively in the market. So toserve better from the existing oneADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 2
  • 3. “Distribution Effectiveness in Hubli-Dharwad for KMF” INTRODUCTIONHistory of MilkAnimal milk was first used as beverage at the beginning of animal domestication. Goats andsheep were domesticated in the Middle East in 9000BC. Goats and sheep were one of the firstanimals to be domesticated. Around the year 7000 BC, cattle were being herded in parts ofAfrica and Turkey. Milk was also consumed in the British Isles during the Neolithic period.Dairy products were first made in the Roman Empire around 100 BC. The use of cheese andbutter spread in Europe, parts of Asia and parts of Africa. Cattle were then introduced toEuropean colonies after the Age of exploration.Background MilkIs a nutritive beverage obtained from various animals and consumed by humans. Most milk isobtained from dairy cows, although milk from goats, water buffalo, and reindeer is also usedin various parts of the world. In the United States, and in many industrialized countries, rawcow‟s milk is processed before it is consumed. During processing the fat content of the milksadjusted, various vitamins are added, and potentially harmful bacteria are killed. In additionto being consumed as a beverage, milk is also used to make butter, cream, yogurt, cheese, anda variety of other products.HistoryCattle were first brought to the United States in the 1600s by some of the earliest colonists.Prior to the American Revolution most of the dairy products were consumed on the farmwhere they were produced. By about 1790, population centres such as Boston, New York,and Philadelphia had grown sufficiently to become an attractive market for larger-scale dairyoperations. To meet the increased demand, farmers began importing breeds of cattle that werebetter suited for milk production. The first Holstein-Friedens were imported in 1795, the firstAirsides in 1822, and the first Guernsey‟s in 1830.With the development of the dairy industryin the United States, a variety of machines for processing milk were also developed.One of the first glass milk bottles was patented in 1884 by Dr. Henry Thatcher, after seeing amilkman making deliveries from an open bucket into which a Childs filthy rag doll hadaccidentally fallen.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 3
  • 4. “Distribution Effectiveness in Hubli-Dharwad for KMF” CHAPTER-1 INDUSTRIAL PROFILE DAIRY INDUSTRY IN INDIA Dairy enterprise is an important occupation of farmer. In India nearly 70% of the peopleDepend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry toa large extent. Animal husbandry in India is an essential part of agriculture. It is mainly arural occupation closely associated with agriculture.DEVELOMENT OF DAIRY INDUSTRY IN INDIA During the Pre-independence year there was no serious stress given to dairy industry. In1886 the Department of Defence of the British Government established the dairy farms forthe supply of milk to the British troops in Allahabad. Later, in 1920 serious steps were takenby Mr. William Smith, an expert in dairy forming to improve the milk production There wasdiscrimination done to the Indians hence this led to the rise of the first milk union in India. InLuck now in 1937 called the Luck now milk producer‟s Co-operative union Ltd.In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economicstability of villagers. When the farmer Prime Minister Lal Bahaddur Shastri visited thefunctioning as it was rendering a social service to the society, which helped the villagers tocome in the national economic stream. The dairy and Animal Husbandry received serious attention after the independence. ThereWere lots many of progressive steps taken by the government through five year plans, Thisled to the formation of National Dairy Development Board in 1965 & thus in 1970 he decidedto bring a “White Revolution” throughout the country, Initially 10 states were selected forthis purpose excluding Karnataka. In Karnataka in 1974 an integrated project was launched to restructure and reorganizethe dairy industry on Co-operative principle of AMUL and to lay foundation for newdirection in dairy industry.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 4
  • 5. “Distribution Effectiveness in Hubli-Dharwad for KMF” India: Worlds Largest Milk Producer India has become the worlds No. 1 milk producing country, with output in 1999-2000(marketing year ending March 2000) forecasted at 78 million tonnes. United States, wherethe milk production is anticipated to grow only marginally at 71 million tonnes, occupied thetop slot till 1997. In the year 1997, Indias milk production was on par with the U.S. at 71million tonnes. The world milk production in 1998 at 557 million tonnes would continue thesteady progress in recent years (see the below Table). Furthermore, the annual rate of growthin milk production in India is between 5-6 per cent, against the worlds at 1 per cent. The steeprise in the growth pattern has been attributed to a sustained expansion in domestic demand,although per capita consumption is modest - at 70 kg of milk equivalent.World’s Top milk Producers.Following is the list of Top 10 Countries by Milk Production as per US Department ofAgriculture, 2011: S. No. Country Production (1000 MT) 1 EU-27 140,620.00 2 India 121,500.00 3 United States 88,768.00 4 China 31,780.00 5 Russian Federation 31,200.00 6 Brazil 30,846.00 7 New Zealand 18,049.00 8 Mexico 11,228.00 9 Argentina 11,070.00 10 Ukraine 10,812.00ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 5
  • 6. “Distribution Effectiveness in Hubli-Dharwad for KMF” THE FATHER OF “WHITE REVOLUTION” IN INDIAADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 6
  • 7. “Distribution Effectiveness in Hubli-Dharwad for KMF” Dr. Verghese Kurien Born on 26th November 1921 Died 9thSeptember 2012Dr. Kurien graduated with Physics from Loyola College, Madras in 1940 and then did B.E.(Mech) from the Madras University. He was very good at cricket, tennis, and boxing, andrepresented his college at state level. After passing out of the University, he joined the TataSteel Technical Institute, Jamshedpur from where he graduated in 1946 Instead of taking the charted course of managerial career at Jamshedpur, Dr.Kuriencompeted and qualified at the all India level selection for specialized studies in USA undergovernment scholarship and passed the Master of Science in Mechanical Engineering fromthe Michigan State University with distinction. When he came back to India, he was posted as a Dairy Engineer at the governmentcreamery, Anand, in May 1949. Around the same time, the infant cooperative dairy, KairaDistrict Cooperative Milk Producers Union Limited (KDCMPUL), now famous as AMULwas fighting a battle with the Polson Dairy which was privately owned. Young Kurien, fedup with being at the government creamery which held no challenge, volunteered to help ShriTribhuvandas Patel, the then Chairman of KDCMPUL, to set up a processing plant, whichmarked the birth of AMUL. The rest is history. Dr. Kurien is a manager and institutional builder par excellence. He has built dozens ofinstitutions including the Institute of Rural Management, Anand of which he is the founderChairman. He is also the founder Chairman of the National Dairy Development Board(NDDB) which designed and implemented the world‟s largest dairy development programmethe Operation Flood. Dr.Kurien may rightly be called the architect of India‟s modern dairyindustry and the father of White Revolution ushered in by the Anand-pattern dairy co-operatives established under the Operation Flood. Dr.Kurien in his impressive career spanning over almost five decades has beenhonoured by several national and international organisations. He has been conferred honorarydoctorate degrees by several universities in India and Abroad. He has been decorated with thePadmashri (1965) Padmabhushan(1966), Krishi Ratna Award (1986) and Padma Vibhushan(1999) by the President of India. He has won many awards including the prestigious RamonMagsaysay Award for Community Leadership (1963), the Wateler Peace Prize Award ofADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 7
  • 8. “Distribution Effectiveness in Hubli-Dharwad for KMF”Carnegie Foundation (1986), the World Food Prize Award (1989) and the InternationalPerson of the Year Award (1993) by the World Dairy Expo, Madison, Wisconsin, USA and"Ordre du Merite Agricole" by the Government of France (in March 1997). Some of the other major awards he has won are:- Regional Award 2000 from the Asian Productivity Organization, Japan The first Rochdale Pioneers Prize by the international Co-operative Alliance (ICA), Seoul, Korea 2001 Dr. Paulos Mar Gregorious Award 1999, New Delhi The Economic Times Lifetime Achievement Award for the Corporate Excellence, Mumbai 2001 Lifetime Achievement Award for Translating Excellence in Corporate Governance into Reality, from the Institute of Company Secretaries of India, New Delhi (November 2001) Lifetime Achievement Award for Social Service for the Tenth Red & White awards, New Delhi (January 2002) Yashwantrao Chavan Natioanl Award for National Integration, Democratic Values, Social and Economic Development for the year 2001. (Mumbai) "Lokmanya Tilak Award" by the Lokmanya Tilak Smarak Trust, Pune (August 2002) "Lifetime Achievement Award" by the Bombay Management Association, Mumbai (Jan. 2003) "Rotary Lifetime Achievement Award" by the Rotary Club of Palghat East (Feb. 2003) I Too Had a DreamADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 8
  • 9. “Distribution Effectiveness in Hubli-Dharwad for KMF” I Too Had a Dream I Had to a dream Category: Non-Fiction Author: Dr Verghese Kurien as told to Gouri Salvi Publisher: Roli Books Architect of Operation Flood, the largest dairy development programme in the world,Dr Verghese Kurien has enabled India to become the largest milk producer in the world. Aman with a rare vision, Dr Kurien has devoted a lifetime to realising his dream – empoweringthe farmers of India. He has engineered the milk cooperative movement in India. It was a sheer quirk of fate that landed him in Anand where a small group of farmerswere forming a cooperative, Kaira District Cooperative Milk Producers‟ Union Limited(better known as Amul), to sell their milk. Intrigued by the integrity and commitment of theirleader Tribhuvandas Patel, Dr Kurien joined them. Since then there has been no lookingback. The Anand pattern of co-operatives were so successful that, at the request of theGovernment of India, he set up the National Dairy Development Board to replicate it acrossIndia. He also established the Gujarat Cooperative Milk Marketing Federation to market itsproducts.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 9
  • 10. “Distribution Effectiveness in Hubli-Dharwad for KMF” In these memoirs, Dr Verghese Kurien, popularly known as the father of the whiterevolution, recounts, with customary candour, the story of his life and how he shaped thedairy industry. Profoundly inspiring, these memoirs help us comprehend the magnitude of hiscontributions and his multifaceted personality."I have often claimed that I have had but one good idea in my life: true development is thedevelopment of women and men. This idea took such a hold of me that I remained in thissmall, sleepy town of Anand for over fifty years as an employee of farmers. I was never ableto give this up for what many call "a better life". These years have, without an iota of doubt,been the most rewarding years of my life. Over the years I have spoken ceaselessly of thisidea, hoping to Enthuse young women and men to adopt my passion as theirs. I have beenfortunate that there have been many who took up the challenge."Phases in BriefPhase 1 (1970 – 1980)  Financed by skimmed milk and butter oil gifted by EEC through WFP  NDDB planned the program and negotiated EEC assistance  Linked 18 premier milk sheds in India with consumers in metros – Mother Dairies established in metrosPhase 2 (1981 – 1985)  Number of Milk sheds increased from 18 to 136  Self sustaining system – 43,000 village co-ops, 4.25 million milk producers  Domestic milk powder production – increased from 22,000 tons earlier to 1,40,000 tons in 1989  Direct marketing of milk by co-ops increased manifoldPhase 3 (1985 - 1996)  Expand and strengthen the infrastructure for procurement and production  Vet first-aid, health care, feed, artificial insemination services introduced  Intensified member education  Large number of new co-ops added Increase in participation of women and women co-ops Emphasis on R & D, Innovations, Productivity increase.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 10
  • 11. “Distribution Effectiveness in Hubli-Dharwad for KMF” NATIONAL DAIRY DEVELOPMENT BOARD About NDDBThe National Dairy Development Board was created to promote, finance and supportproducer-owned and controlled organizations. NDDBs programmes and activities seek tostrengthen farmer cooperatives and support national policies that are favourable to the growthof such institutions. Fundamental to NDDBs efforts are cooperative principles and the AnandPattern of Co-operation.NATIONAL DAIRY DEVELOMENT BOARD:HistoryThe NDDB was founded to replace exploitation with empowerment, tradition withModernity, Stagnation with growth, transforming dairy into and instrument for thedevelopment of Indian‟s rural people.The NDDB was established in 1965; the board is registered under the Societies RegistrationAct and the public Trust Act, fulfilling the desire of the Prime Minister of India – the late LalBahaddur Shastri to extend the success of the Kaira Co-operative Milk producers union,AMUL to other parts of India. Dr Vergese Kurien was the founder chairman.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 11
  • 12. “Distribution Effectiveness in Hubli-Dharwad for KMF”The Growth NDDB began its operations with the mission of making dairy a vehicle to a betterfuture for millions of gross roots milk producers. The mission archived helped to launch“Operation Flood‟‟ a programme extending over 26 years and with the help of World BankLoan India become the world‟s largest milk producing country. As per March 2001 India‟s96000 Dairy Co-operative are integrated through a three Tier Co-operative structure. TheAnand pattern, which is owned by more than 10 million formers, procures an average of 1605million liters of milk every day. The milk is processed and marketed by 170 milk producers‟co-operative unions which, in turn own 15 state co-operative milk marketing federation.Since its establishment the dairy development board has planned and spearheaded India‟sDairy programmer by placing dairy development in the hands of milkServices rendered by NDDB:NDDB provide the following services. a. Planning dairy and rural development projects. b. Organization of farmer co-operative societies. c. Setting up of dairy and cattle feed plants. d. Manpower planning and training. e. Applied research and development. Implementation of milk production enchantment programme.Objectives of NDDB: 1. To sponsor, promote, manage, acquire, construct or control any plant or work, 2. Which promote projects of general public utility relation to dairying, 3. To make information available on request to technical services to increase Production of Milk, 4. To prepare initial feasibility studies of dairying and other dairy related projects And undertake subsequent designing planning and start up those projects. 5. To undertake research and development programme related to production and Marketing of milk and milk products, 6. To provide assistance for exchange of information to other international agencies.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 12
  • 13. “Distribution Effectiveness in Hubli-Dharwad for KMF” PHILOSPHYCo-operation is the preferred form of enterprise, giving people control over the resources theycreate through democratic self-governance.Self-reliance is attained when people work together, have a financial stake, and both enjoythe autonomy and accept the accountability for building and managing their own institutions Progressive evolution of the society is possible only when development is directed by thosewhom it seeks to benefit. All beneficiaries, particularly women and the less privileged must be involved incooperative management and decision makingTechnological innovation and the constant search for better ways to achieve our objectives isthe best way to retain our leading position in a dynamic marketWhile our methods change to reflect changing conditions, our purpose and values mustremain constant.CONSTITUTIONThe National Dairy Development Board has been constituted as a body corporate anddeclared an institution of national importance by an Act of India‟s Parliament.The National Dairy Development Board -- initially registered as a society under the SocietiesAct 1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed andregistered under the Companies Act 1956, by an Act of India‟s Parliament - the NDDB Act1987 (37 of 1987),with effect from October 12, 1987. The new body corporate was declaredan institution of national importance by the Act.The general superintendence, direction, control management of NDDBs affairs and businessvests with the Board of Directors.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 13
  • 14. “Distribution Effectiveness in Hubli-Dharwad for KMF” PERSPECTIVE 2010 PLANThe Perspective 2010 plan of the Dairy Board maps the future of dairying in India, settingrealistic goals for Strengthening Cooperative Business, Production Enhancement, AssuringQuality, and creating an Information and Development Research. The plan was realized withthe successful completion of the Operation Flood Programme and has been developed by theState Milk Marketing Federations and the Milk Producers Cooperative Unions inconsultations with the Dairy Board. The Perspective 2010 goals and strategies to meet themhave been drawn by its actual implementers - Federation and Unions and supported byNDDB.DAIRY CO-OPERATIVESDairy Cooperatives account for the major share of processed liquid milk marketed in thecountry. Milk is processed and marketed by 170 Milk Producers Cooperative Unions, whichfederate into 15 State Cooperative Milk Marketing Federations. The Dairy Boards programmes and activities seek to strengthen the functioning of DairyCo-operatives, as producer-owned and controlled organizations. NDDB supports thedevelopment of dairy cooperatives by providing them financial assistance and technicalexpertise, ensuring a better future for India‟s farmers.Over the years, brands created by cooperatives have become synonymous with quality andvalue. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that haveearned customer confidence.HEAD OFFICENational Dairy Development BoardP.B. No. 40Anand - 388 001GujaratINDIATelephone: 91-2692-260148/260149/260159/260160Fax: 91-2692-260159/260165ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 14
  • 15. “Distribution Effectiveness in Hubli-Dharwad for KMF” KARNATAKA MILK FEDERATIONThe first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June1974, an integrated project was launched in Karnataka to restructure and reorganize the dairyindustry on the co-operative principle and to lay foundation for a new direction in dairydevelopment. In 1975, the World Bank aided dairy development was initiated. The presentKarnataka Milk Federation (KMF) came into existence in 1984 as a result of merging ofKarnataka Dairy Development Co-operation, small co-operatives and Karnataka MilkProduction Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies(DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 30Districts of Karnataka, There are 13 Milk Unions and Dharwad Milk Union (DMU) is oneamong them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants andProduct dairies for chilling, processing, conservation and marketing of milk. To supply cattlefeed there are 4 cattle feed plants. To ensure supply of quality germ plasma, Bull breeding farm and frozen semenbank are also available.KARNATAKA MILK CO-OPERATIVE UNITS & UNIONSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 15
  • 16. “Distribution Effectiveness in Hubli-Dharwad for KMF”KARNATAKA CO-OPERATIVE MILK PRODUCERS’ FEDERATIONLIMITED (KMF):KMF is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largestdairy co-operative amongst the dairy co-operatives in the country. To impart training,institutes at Bangalore and regional training institutes at Dharwad and Gulbarga arefunctioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5CPM) are been set-upto supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers havebeen set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodaguhave been set-up to supply good quality of fodder and seed production farm at Shahpur hasbeen set-up.The federation giving details of the latest technology in dairy industry etc is published“Ksheer Sagar‟‟ magazine monthly.KMF is a co-operative apex body in the state of Karnataka for representing dairyOrganizations and also implementing dairy development activities to achieve the Followingobjectives. 1) Providing assured and remunerative market for all the milk produced by the farmer members. 2) Providing hygienic milk to urban consumers. 3) To build village level institutions in co-operative sector to manage the dairy activities. 4) To ensure provision of milk production inputs, processing facilities and dissemination of know-how. 5) To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, etc.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 16
  • 17. “Distribution Effectiveness in Hubli-Dharwad for KMF” The growth process…… The growth over the years and activities undertaken by KMF is summarized briefly here under:KEY ITEMS 1976- 2011-2012(Up to 2012-13(Upto OCT12) 77 Mar12)Dairy Co-operatives No’s 416 13006 REGED / 13340 REGED /11870 11568 Funct FunctMembership No’s 37000 21.51 Lacs 21.96 LacsAvg. Milk Kg’s/day 50000 Avg.42.85 Avg.50.05Procurement Peak Proc.46.49(No Peak Proc.54.56(Nov12LKPD) v11) LKPDMilk Sales Lt’s/day 95050 28.90 LLPD / 29.83 LLPD / Curd:3.05 LKPD Curd:2.74 LKPD / / Good life 2.33 LLPD Good life 2.19 LLPDCattle Feed Kg’s/DCS 220 2958 2766ConsumedDaily Payment to Rs.Lakhs 0.90 785 990FarmersTurnover Rs.Crores 5823.69 ---------- FUNCTIONS OF KMF  Co-ordination of activities between the unions.  Developing the markets for the increasing in milk production.  To make the brand „‟Nandini‟‟ as a house hold name.  To increase the market share of „‟Nandini‟‟. FUTURE VISION To consolidate the gains of dairying achieved in the state of Karnataka and with the view of to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on quality and in process conserve the socio-economic interests of rural milk producers, the government of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB. ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 17
  • 18. “Distribution Effectiveness in Hubli-Dharwad for KMF” THE DISTRICT CO-OPERATIVE SOCIETY (DCS)It is basic organization unit, functioning at the village level, by training local people toorganize and manage the activities village level institution building and development of localleadership is promoted.FUNCTIONS  It functions daily and acts as a marketing outset for the milk produced in the village.  Input facilities are also canalized to the dairy farmers through these societies and include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds, Seedling and Provisions of Mobile Veterinary Health Care etc.  Payment for the milk is done through society.THE MILK UNION Milk union is a channel of District Co-Operative Societies in organized form for milkProcurement, The procurement route is linked to chilling center or a dairy. Dharwad MilkUnion is one of such Milk Unions. It is the middle tier of the complex co-operativeorganization network. Unions are formed by federating the societies in locating geographicalarea. The milk unions are organized to make them economically viable and the jurisdictionextends from one district to 3 Districts. There are 5 Milk Unions who‟s Jurisdiction covers asingle district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union‟sterritory extends to 4 District. All Unions own their own Milk Processing Facilities.FUNCTIONSThese Unions help to organize new Primary Dairy Co-operative Societies. The Union alsohelps in managing these DCS by assisting in accounts, purchase, process and marketingliquid milk. The Union helps in providing all the input facilities to DCS and channelizes thedairy farmers through DCS. The Union provides the following facilities.  Providing Balanced Cattle Feed.  Providing Animal Health Care.  Providing Artificial Insemination facility for breed improvement.  Providing Training for breeding, feeding management.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 18
  • 19. “Distribution Effectiveness in Hubli-Dharwad for KMF” MILK FEDERATION: The main objective of the federation is to help in formation of Milk Unions through the state and thus forming the state level ape‟s organization. The Federation implements all the project activates. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions:  The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases  The Federation also manages surpluses and deficiencies of liquid of milk among the milk union and help in disposing milk and milk product at reasonable price  The Federation also manages to market the milk and milk products outside the state.  Provides Balanced cattle feed, mineral mixture, frozen semen semen straws and liquid nitrogen are produced and distributed to Unions Excellence in quality is maintained to lay a solid foundation for widespread acceptance of the milk and milk products.  Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms. Karnataka Milk Federation consists of: UNITS NO Milk units 13 Dairies 17 Liquid Nitrogen Silos 6 Product Plant 3 Training centre 3 Sperm Station 1 Cattle Feed Plant 4 Pouch Film Plant 1Achievement: Bangalore Milk union, Dakshin kannada Milk Union Mother Dairy has obtained ISO 2000 92% of functioning milk producer‟s co-operative societies earning profit. At present on an average of Rs. 205 lakhs is paid per day to milk producerADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 19
  • 20. “Distribution Effectiveness in Hubli-Dharwad for KMF” CHAPTER-2 PROFILE OF THE COMPANY DHARWAD MILK UNION (DMU) Dharwad Milk Union (DMU) came into existence on 3-3-1986.DMU was establishedunder co-operative act on 3-3-1986 at Dharwad and Gadag, Haveri, Uttar kannada andDharwad come under its operation.Establishment:The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF.The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It islocated in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent tothe Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.History:A group of experienced officers, appointed by the Karnataka Milk Federation surveyed thewhole of Dharwad districts (includes two newly formed district Gadag and Haveri) and UttarKarnataka. Further they found out there as a need for a Milk Dairy. They travelled theSurrounding villages educated the villagers about Milk and Milk products and the benefitsthey would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge market theFederation decided to setup the Milk Union in 1984, known as theADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 20
  • 21. “Distribution Effectiveness in Hubli-Dharwad for KMF”DMU MISSION STATEMENT:At DMU we Endeavour to satisfy the taste and nutritional requirements of the customers.Through excellence in marketing by DMU committed team, DMU are committed to offeringquality products that provide best value for money.DHARWAD DISTRICT CO-OPERATIVE MILK PRODUCERS SOCIETIES UNIONLIMITED:Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under theUnion. In 1989, the training center, which was controlled by KMF, came under DharwadMilk Union.DMU was Rs.7 Crore Projects of which Government has Rs.2Crore of share capital andAuthorized capital of DMU is Rs.5crore.DMU formed 760 milk producer‟s co-operative societies in Dharwad, Gudag, and Haverialso Uttar Kannada districts.The production capacity of DMU is 2 lack litters of milk per day and also has the capacity toproduce 12 tons of milk powder, 10 tons of butter, 6 tonnes of ghee per day.DMU is collecting 70thousand litters of milk per day from its societies and sells 60 thousandlitters of milk per day and the remaining milk is used for producing milk products.Functions of DMU The main function of DMU is to procure milk from villagers and pay them the right price. To educate the villagers about milk and its quality To make ‟Nandini‟ as a part of daily life. To provide good quality of cattle feed, fodder, veterinary properly and in an efficient manner. To see that the DCS‟s are carrying out their activities properly and in an efficient manner.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 21
  • 22. “Distribution Effectiveness in Hubli-Dharwad for KMF”Objectives of DMU:  Providing hygienic and good quality of milk to the consumers.  To build the economic strength of the milk products in villages.  To eliminate middlemen‟s in the business so that the milk products receive there appropriate share of bread.  To educate the villages about the adulteration of milk and its harmful effect on the body.  To see that every citizen becomes healthy by consuming good quality of milk.  To make villagers self-viable and build self image.Process at DMUThe milk collected at DCS‟s is brought to the center thought carries trucks etc. The Qualityand quantity of milk bought is checked at the Reception center by a supervisor.A sample of milk is taken and is tested in a laboratory for fat content, Solid Not fat (SNF)acidity etc. As the milk is at room temperature is to be brought down to 40 c to 50 c. so that it maycheck the growth of bacteria. To ensure this milk is passed through a chilling chamber wherethe milk is chilled. Its temperature is bought down and then the milk is stored in a tank called as ‟Ram MilkTank‟ From this tank milk is pumped to a pasteurizing cell where the milk is heated up to 720c and 15 seconds, so that all the bacteria and microorganisms may be killed and then the milkis simultaneously cooled to 40 C to 5o C and is store in a „Pasteurized Milk Tank‟ From herethe milk is separated according to the requirement of production of different types of milkand the remaining milk is used for manufacturing milk products.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 22
  • 23. “Distribution Effectiveness in Hubli-Dharwad for KMF”Nature of business carriedProcuring and marketing of milk production and sale of milk products.VISION OF THE DMU: Cleanliness Total quality maintenance Discipline Co-operation. Transparency.QUALITY POLICY OF DMU:To ensure pure, hygienic milk and milk products through continuous improvement of qualitystandards, MILK DEFINITION AND ITS COMPOSITIONMilk may be defined as the whole, fresh, clean, lacteal secretion obtained by completemilking of one or more healthy milk animals, excluding that obtained within 15 days beforeor 5 days after calving or such periods as may be necessary to render the milk practicallycolostrums-free and containing the minimum prescribed percentages of milk fat and milk-solids-not-fat. In India, the term milk, when unqualified, refers to cow or buffalo milk, or acombination thereof. Milk SNF means Milk Solids-not-Fat, comprising protein,carbohydrates, vitamins, minerals, etc in milk other than milk fat.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 23
  • 24. “Distribution Effectiveness in Hubli-Dharwad for KMF”1. Pasteurization – The term Pasteurization has been coined C or below. In this process,pathogenic and spoilage organisms are destroyed. Normally pasteurized milk is packed insachets and shall be stored under refrigeration conditions, so as to prevent the growth ofremaining organisms in milk. Pasteurized milk has a shelf life of 2 days when stored andtransported under refrigeration conditions. This milk is boiled and consumed in Indianhomes. C for 15 seconds (or to any temperature-time combination which is equally efficient),in approved and properly operated equipment. After pasteurization, the milk is immediatelycooled to 6 after its inventor, Louis Pasteur of France. Pasteurization refers to the process ofheating every particle of milk to at least 72.2. Sterilization - C for minimum period of 15 minutes. After heating, sterilized milk bottlesare gradually cooled to room temperature. Due to economic disadvantages and browning ofmilk, this process is used only for bottled flavored milk. This Sterilized milk has a shelf-lifeof not less than 3 months, even at room temperature, and can be consumed directly. Sterilizedmilk is manufactured by filling into bottles and heating bottled milk to not less than120º.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 24
  • 25. “Distribution Effectiveness in Hubli-Dharwad for KMF” PRODUCT PROFILE KMF, Dharwad product the following milk and Milk Products. HOMOGENIZED TONED MILKKarnataka‟s most favourite milk, Nadine Toned FreshAnd pure milk containing 3.1% FAT and 8.5% SNF, Available in500ml and 1tr packs.Price-29 Rs per litre SHUBHAMBuffalo‟s milk, 100% pure pasteurized processed and packedHygienically, this milk has 4.6%fat and 8.5%snf. Available in 5ooml and1ltr, and also Available in 5ltrs packs for marriages,and other Functions.Price-34 Rs per litre FULL CREAM MILKFull cream milk, containing 6% fat and 9% SNF, Rich, creamiertastier milk, ideal for preparing home-made sweet & savories.Available in 500ml and 11trs packs. HOMOGENIZED COW MILK Nandini homogenized milk is pure milk. This is homogenizedAnd pasteurized, consistent right through, it gives you more cupsOf tea or coffee and is easily digestible. Available in 500ml and 1 litre packs.Price- 30 Rs per litre Fat 3.6% and SNF 8.5%.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 25
  • 26. “Distribution Effectiveness in Hubli-Dharwad for KMF” NANDINI SET CURDSA Nandini curd made from pure milk, its thick delicious giving youall the goodness of homemade curds. Available in 200gms and500 gms sachet. MILK POWDEREnjoy the taste of pure milk! Skimmed milk powder made formpure milk, processed and packed hygienically. Available in100gms,200mgs, 500 gms, 1kg& 25kg Pack. BUTTERRich, smooth and delicious, Nandini butter is made out of freshPasteurized cream, rich taste, smooth texture and the rich purityof cow‟s milk makes any preparation a delicious treat. Available in100gms (salted), 200gms and 500gms cartons both salted andUnsalted PEDHANo matter what you ate celebrating! Made from pure milk,Nandini peda is a delicious treat for the family. It will be store atRoom temperature approximately 7days, Available in 250gms packcontaining 10 pieces each. GHEEA state of purity, Nandini ghee made from pure butter. It is freshand pure with a delicious flavor, hygienically manufactured andpacked in a special pack to retain the goodness of pure ghee. Shelflife of 6 months at ambient temperature. Available in 200ml,500ml, 1000ml sachets, 5ltrs tins and 15kegs tins..ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 26
  • 27. “Distribution Effectiveness in Hubli-Dharwad for KMF” GOOD LIFE MILK Cows pure milk, UHT processed bacteria free in a tamper-proof tetra-fino pack which keeps this milk fresh for 90 days without refrigeration until opened. Available in 500ml Fino and in 200ml Bricks at premium stores across the state. SMART Cows pure milk, homogenized, double toned UHT processed milkbacteria free in a tamper proof tetra fino pack which keep the milk fresh for60days without refrigeration until opened. At present the milk is beingdirectly home delivered on request. Available in 500ml pack. SLIMCows pure milk, homogenized, Skimmed. UHT processed milk bacteriafree in a tamper proof tetra-fino pack which keep the milk fresh for 60 dayswithout refrigeration until opened. Nandini Good life slim skimmed milk is99.5% fat free.Available in 500ml Fino and in 200ml Bricks at premium stores acrossthe state. BUTTER MILK Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chillies, green coriander leaves, asafoetida and fresh ginger. Nandini spiced butter promotes health and easy digestion. It is available in 200 ml packs and is priced at most competitive rates, so that it isaffordable to all sections of people.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 27
  • 28. “Distribution Effectiveness in Hubli-Dharwad for KMF” MYSORE PAKFresh and tasty, Nandini Mysore Pak is made from quality BengalGram, Nandini Ghee and Sugar. Its a delicious way to relish a sweetmoment.Available in 250gms, 500 gms. PP container shrink packed to preservefreshness. Can be kept for 7 days.Advised to consume fresh to enjoy its excellent taste. GULAB JAMOON MIXGreat way to those soft and juicy jamoon treats at home! NandiniGulab Jamoon Mix is made from Nandini skimmed milk powder,maida, soji and Nandini Special Grade Ghee.Available in 100gms and 200gms standy pouch with a five layer foil lamination. Shelflife of 6 months. PANEERPure and tasty dishes with Nandini Paneer! A fresh, nutritive productmade by coagulating pure milk, it is an excellent source of milkprotein. Nandini paneer is ideal for vegetarian dishes such as mutterpaneer, sag paneer and various other dishes.Refrigerated storage is preferable. Available in 200gms pack, specially packed in a fivelayer film and vacuum packed to preserve its quality. Bulk packings are also available. FLAVOURED MILKSterilised flavoured milk, a nutritious and healthy drink and an all-season wholesome drink available in five different flavours - pineapple,rose, badam, pista and natural orange. A part from refreshing energy. Available in 200mlADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 28
  • 29. “Distribution Effectiveness in Hubli-Dharwad for KMF” ICE CREAM Nutritious, delicious creamy ice cream is manufactured at ISO9002/HACCP certified Mother Dairy modern plant. The range includesVanilla, Strawberry, Pineapple, Mango, Chocolate, Butter scotch,Kesar Pista, Orange & Mango Candies, Mango & Raspberry Dollies,Chocobar and Ball varieties Vanilla, Strawberry, Sundae. Available in 500ml and 1ltr packs. BADAM POWDER A delicious beverage with hot or cold milk, It can be used forkheer, kesaribath, desserts or ice cream. Its the goodness of Badammixed with almond, edible starch, saffron, skimmed milk powder andcane sugar to give you the ideal Badam delight.Available in 200 gms. PP boxes cover shrink wrapped to offerbetter quality and also to prevent pilferage Shelf life of 6 months under room temperature. KHOVAKhova is prepared out of fresh milk. It is an ideal base to preparedelicious sweets at home like peda, Gulab Jamoon, Kalakand, Burfi,Gajar Halwa and the like. Nandini Khova gives you a high nutritivevalue with large quantities of muscle building proteins, boneforming minerals and energy giving fat and lactose.To be kept under refrigerationAvailable in 200 gms vaccum packed in a special five layer pouch filmKhova is also available in bulk pack for marriages and other functions CURDNandini Curd made from pure milk. Its thick and delicious.Giving you all the goodness of homemade curds.Available in 200gms and 500gms sachet.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 29
  • 30. “Distribution Effectiveness in Hubli-Dharwad for KMF” Area of operation - Regional Ownership patternDMU builds and runs under the co-operative institutions such as District Co-operative Society.(DCS) National Dairy Development Board.(NDDB)Competitor’s of information.DMU has various competitors in the milk products market such as Krishna Arokya Spurthi Adhitya Bharath DairyInfrastructural facilities,Infrastructural facilities of DMU are as follows. Security facilities. Canteen facilities. Shifts facilities-3shifts per day. Heat allowance Cold allowanceAchievements or awards DMU has got ENERGY SAVING award for the production activities.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 30
  • 31. “Distribution Effectiveness in Hubli-Dharwad for KMF”Future growth and prospects  Procuring and selling 1 lack litters per day.  Preparing for ISO-9001 certification.  Marketing quality improvement.  Developing HACCP-hazards Analysis and Critical Control Points.  Getting export Grade milk powder.Input required per day:  Milk procurement up to 155000 litres  5 to 6 lakh litres of water  10,000 units of electricity  4 to 5 tons of coal  Generator in case of electricity failure and manpowerDepartment of DMU1. Purchasing Department2. Quality Control Department3. Production Department4. Procurement and Input Department (P & I)5. Finished goods and materials storage Department (FGS)6. Stores Department7. Sales and Marketing Department8. Finance and Accounts Department9. Administration DepartmentADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 31
  • 32. “Distribution Effectiveness in Hubli-Dharwad for KMF” Organization structure President Director Director Director Director Director (Govt) (Govt) (DCS) (NDDB) (Society) MANAGING DIRECTORProcurement Product process Marketing Admn Finance Dept Dept Dept Dept DeptTransport Quality FGS & Account & MIS Control Stores Purchase ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 32
  • 33. “Distribution Effectiveness in Hubli-Dharwad for KMF”Dharwad Milk Union:STATUS A Co-operative society registered under the Co- operative Act 1959.NATUREOF BUSINESS Procuring & Marketing of Milk Production & Sale of Milk Products.SHARE CAPITAL 3 crore Approx.PLANT CAPACITYMILK CHILLING CENTER GadagAND CAPACITY Haveri Hirekerur Rona SrisiKARWAR PACKING The milk in bulk is sent for packing and distribution atUNIT Karwar which supplies and need of karwar, Gokarna, Honnavar, bhatkal, Murudeshwar.SALES OF MILK 90,000 LPDAREA OF OPERATION Dharwad,Haveri,Gadag, Uttar Karnataka,BOARD OF DIRECTORS Elected Member 8 Ex-Officers 5 By Govt 3TOTAL WORKERS 289 WorkersLOCATION Lakkamanahalli Industrial Area,DharwadDEPARTMENT 9BRAND NAME NandiniPRODUCTS Milk Toned Milk, Standard Milk, Shubam Milk Milk Product Butter,Ghee,Pedha,Curd,Lassi,Panner,Milk Powder CO-OPRATIVE SOCIETIES 760 SocietiesAT VILLAGE LAVELADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 33
  • 34. “Distribution Effectiveness in Hubli-Dharwad for KMF” PROCUREMENT AND INPUT DEPARTMENT The union carries on procurement by setting up co-operative societies at village level.Later milk is collected in the chilling centre. Milk collected from the milk centre, is firsttested. There is milk –testing equipments for this purpose. Then a survey on availability oftransportation facilities and productive capacity of villages are conducted. If the marketablesurplus is more than 150 liters pre day, a society is formed. Further 10 promoters are selectedfrom the village and are given the responsibilities of collecting the capital for the society byselling shares. Procurement is done twice a day and payment is made on the basis ofpercentage of content and SNF in the milk. After this, milk is sent to Union else chilling center, whichever is near. At thechilling center, milk is chilled up to 4 degree Celsius. Later this chilled milk is sent to Unionin Insulated Tankers for further processing. The main function of this department is toprocure milk different areas throughout the year. The department also provides facilities that help in enhancing more productivity.The main function of p & I department is to organize, supervise and operate village dairy co-operative societies and to procure more milk from village societies. Other services providedare: Veterinary services to keep up the good health of cattle through - Regular health camps - emergency services round the clock - first aid, vaccination, infertility camps, fodder Artificial insemination facilities for improvements of cattle breed. Facilitating Training programs regarding management of cattle Supply of fodder to the cattleADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 34
  • 35. “Distribution Effectiveness in Hubli-Dharwad for KMF” THE STRUCTURE OF P & I DEPARTMENT ManagerProcurement wing Technical wingDeputy Manager Deputy ManagerAssistant Manager Assistant Manager Extension officer Clerks Helpers ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 35
  • 36. “Distribution Effectiveness in Hubli-Dharwad for KMF” PRODUCTION AND PROCESS DEPARTMENT The main objective of this department is to follow up production schedule as per planand to maintain close and co-ordinate relationship with other department and ensures toupgrade the technical efficiency of production. Milk, as it is highly perishable product has toprocessed immediately to avoid spoilage milk respect to its flavor, texture and taste Production department is well equipped and has various types of highlysophisticated machines imported from Sweden and Denmark. Once the milk is received fromp & I department, it is first weighed with the help of weighing bowl. Later, it is poured indump tank. Sample testing is made through lactometer reading and other tests. The fat andSNF content of each sample of milk is accessed the cow and buffalo‟s milk are separatelyreceived and sent to the production section separately through two different stainless steelpipes. Later, the raw milk is passed through plate chillers of variable capacity where it iscooled up to 4-5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000liters capacity. PURPOSE OF CHILING This is done to avoid the growth of micro organisms, which are responsible forspoilage of milk and bitter taste. The milk, which is stored in silos, is pumped throughpipeline to the balance tank, which helps to maintain the steady speed flow of milk in thepasteurization machine. In, DMU, there are 2 milk pasteurization machine and 1 Creampasteurization machine.PURPOSE OF PASTEURIZATION Pasteurization is a process where milk is heated to high temperature and cooledinstantly, to destroy any microorganism. The pasteurized milk will stored in pasteurized milksilos and then sent to pre-packing section. Package is done in 500ml and stored in coldstorage at 7 degree.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 36
  • 37. “Distribution Effectiveness in Hubli-Dharwad for KMF”Work flow model. (End to End):Production process has the following work flow model. DCS Fresh Liquid Milk Sample Testing FAT and SNF Chilling Storing Pasteurization Separation Homogenization Storing Packing DispatchingADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 37
  • 38. “Distribution Effectiveness in Hubli-Dharwad for KMF” PASTEURIZATION OF CREAM: The milk in bulk is taken to the cream separator. Here, the cream is separated. Thecream is passed through cream pasteurization Unit. This cream is sent to Butter section. Themilk with no fat is skimmed milk. This skim milk is pumped back to pasteurization Unit andheated to72 using steam and chilled to 4 using chilled water and stored silos.This skimmed milk is sent to powder section. The pasteurize cream is mixed in portion toPasteurized milk.CURDS: Raw milk is heated to 90 and allowed to cool to 30. Later culture is added to it andpacked; the curd is formed in the packet itself. It is stored and packed in 200gms and 500gms.BUTTER: The cream, which is stored in cream refining tank, is taken to the churning sectionwhere it is churned. Here butter fat and butter milk are separated. The vacuum pump removesexcess of moisture and butter comes out of continuous butter making machine (capacity-1500kgs/hour).Butter is packed in 100, 200and 500gms and also in 10, 25 gms, these arestored in deep freezer room with temperature -22 and if the order of salt butter they mix saltwater with cream and other process is same.GHEE: There are 2 Ghee Boiler of capacity 1500kgs/batch. A butter of 2.5 tons is melted andis brought Ghee Boiler. Here it is heated to 116-117 degree Celsius for 15 minutes so that theresidue is allowed to settle down and Ghee is passed setting tank through clarifies. LaterGhee is allowed for cooling (at 30 to 40) and packed in Tin of liter, 500ml and 200ml packand kept in the cold storage.PANEER: If there is excess of milk, then, paneer is made. The milk is heated to 90 for 15 to 20minutes. Glacial acetic acid is added to milk, and then milk is strained through fine muslincloth. The solid portion is retained and put in water and then it is put in chilled water and leftover night. Later it is packed and stored in cold storage.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 38
  • 39. “Distribution Effectiveness in Hubli-Dharwad for KMF”MILK POWDER: When there is excess of milk. Milk powder is made the capacity of the powder plant is12tons. There are two sections-Evaporator and spray driver through which milk is convertedto Milk powder. In Evaporator, milk is boiled for 55 at high vacuum, Milk is concentrated todrier 40-45 of milk is solid, moisture is removed and the milk powder obtained consists of4% moisture.PEDHA: Dharwad is famous for its delicious pedhas DMU has separate pedha section. About 80liters (depends upon the demand ) is heated continuously for 3 hours till the milk is semi-solid, later sugar and other ingredients are added and stirred continuously on low flame. Laterit cooled and it is shaped in small balls and packed.The milk produced here is differentiated by the content of FAT and SNFTYPE FAT SNFToned milk 3.1% 8.5%Standard Milk 4.5% 9%Cow Milk 3.5% 8.5%Full cream milk 6.0% 9%Buffalo Milk 5.0% 9%The below table gives a brief idea of the milk products, their fat SNF moisture content:PRODUCT FAT SNF MOISTUREButter 83% 1% 16%Ghee 99.8% - 0.2%Paneer 20% 30% 50%ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 39
  • 40. “Distribution Effectiveness in Hubli-Dharwad for KMF” PRODUCTION DEPARTMENT The production department has the following structure. MANAGER DAIRY DEPUTY MANAGER OFFICE STAFF ASSISTANT MANAGER TECHNICAL ASSISTANT ASSISTANT OFFICER (ACCOUNTS) (STORES) SENIOR CLERK TYPIST SUPERVISOR JUNEIOR SUPERVISOR DAIRY DAIRY DAIRY OPRETORS TECHNICIAN WORKERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 40
  • 41. “Distribution Effectiveness in Hubli-Dharwad for KMF” QUALITY CONTROL DEPARTEMENT In DMU, at every stage, care is taken to ensure that the customer gets the products,which have a very high quality. Hence there is a separate department called QualityDepartment. Where the quality testing is done, there is a separate laboratory for this. Qualitycontrol is very essential as to maintain the freshness of the milk. All the containers, pipes andother equipments are washed with hot water before starting off with new production. Thereare many tests conducted here. The packed milk we get will have undergone 3 quality tests.First test is done on raw milk, which we get from chilling center. Next before standardizationand the last test before packing, The other tests conducted are. TESTS REASONTemperature Should be below 5 degreesClot on Boiling If mill curdles soon after boiling milkAcidity Test To test the extent of acidityAlcohol Test To check the heat stability of milkLactometer To check the density of milkFast test Percentage of fat determinedSNF Test Percentage of SNF determined for pricingADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 41
  • 42. “Distribution Effectiveness in Hubli-Dharwad for KMF” QUALITY CONTROL DEPARTEMENT STRUCTURE DEPUTY MANAGER ASSISTANT ASSISTANT MANAGER MANAGERQUALITY ASSISTANT QUALITY ASSISTANT OFFICER OFFICER (CHEMICAL) (BACTIRIOLOGY) LAB QUALITY QUALITY ASSISTANT ASSIATANT ANALYST MARKETING DEPARTMENT ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 42
  • 43. “Distribution Effectiveness in Hubli-Dharwad for KMF” The Marketing Department has following structure: MANAGER DEPUTY MANAGER DEPUTY MANAGER (ACCOUNTS/AUDIT) (SALES/PRODUCTION) ASSINTANT MANAGER ASSISTANT MANAGER (TECH.OFFIER) SUPERVISOR SUPERVISOR (FGS/STORES) MARKET ASSISTANT MARKET ASSISTANTSTARAGETIES OF THE MARKETING DEPARTMENADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 43
  • 44. “Distribution Effectiveness in Hubli-Dharwad for KMF”  Visit to all routes of individual points by going in a routes distribution vehicle for contact with all agents.  Aims to conduct 5 Consumer Awareness Program and various Seminars.  Aims at conducting agents‟ meetings.  Aims at setting 10 Exclusive NANDINI Milk Parlors.  Aiming to set up new sales promotional and advertisement activities.  Women association programs.  Joining with other programs.Strategy Implementation system:Marketing strategy like sales promotional and advertisement activities of DMU are asfollows.  Press advertisements  Hoardings  Wall paintings  Rental for KSRTC Buses  Leaflets  Banners  Vehicles paintings and own hoarding paintings  Pole ads and Flute boards  Rate display boards  Milk carry bags  Calendar and greetings and Exhibition, drawing and consumer mela.Further the Marketing Department has two sub-department  STORES  FINISHED GOODS STORE STORES DEPARTEMENTADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 44
  • 45. “Distribution Effectiveness in Hubli-Dharwad for KMF”The Stores Department in DMU follows the Cordex System (Coded Control System). A cardis maintained for each item and a number is allotted. The card attached to each articleconsists of amount balance, date of issue, purchase etc. this is later recorded in separatedledger book. The inventories are of different kind ranging from mechanical, spares, packingitems to animal drugs, stationary and veterinary drugs. There are at least 4000 differentinventories.The department has the following services: It tries to maintain maximum and minimum level of inventory so as to avoid blockage of capital and storage. Ordinary and local available commodities are maintained at minimum possible level. Items of urgent and not easily available are stored sufficiently for further demand. The structure of this department is as shown. STORES SUPPERIDENT STORES ASSISTANT (FDS) STORES ASSISTANT (GR-II) HELPERS FINISHED GOODS STORES:ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 45
  • 46. “Distribution Effectiveness in Hubli-Dharwad for KMF” This Department acts as an interface between production and Marketing Department. Itis concerned with manatees of finishes goods connected records. It receives all the finishedgoods and issues the stock to marketing department as per indents. It ensures that the goodsare maintained properly with respect to quality.Accounts are maintained and daily and daily and monthly report is submitted to theproduction. Marketing and Finance Departments, as the products as perishable First-In-FirstOut method of inventory is followed. The FGS Department has the following Structure; ASSISTANT MANAGER MARKETING ACCOUNT ASSISTANT ASSISTANT DAIRY OPERATOR DAIRY WORKERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 46
  • 47. “Distribution Effectiveness in Hubli-Dharwad for KMF” FINANCE DEPARTMENT This Department is responsible for keeping all the inward and outward flow of moneyof union. It prepares budget every year and financial rules for receipts all payments areframed. The functions of these departments are; To prepare monthly accounts (Receipts and payments account P&I account and Balance Sheet). To prepare quarterly financial statement. To prepare integrated business plan. To prepare year ending financial statements.To get accounts audited from statutory books of accounts. DMU, Follows two types of auditing; 1. Pre-Audit System-done by Finance and Accounts Department every year. 2. Statutory System-Done by private charted accounts every year. THE STRUCTURE OF FINANCE DEPARTMENT IS AS SHOWN DEPUTY MANAGER ASSITNANT MANAGER ASSISTANT ACCOUNT OFFICER ASSISTANT ACCOUNTADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 47
  • 48. “Distribution Effectiveness in Hubli-Dharwad for KMF” PURCHASE DEPARTMENT It is a sub-department, which comes under Finance Department. The main work ofthis department is to purchase various materials required by different department. Afterascertaining the stock position by stores department and indent is sent by differentdepartment duly approved by the Managing Director. This department act to purchasematerials.It also maintains records of all the suppliers calls for Tenders, quotation etc. Quotations withlowest rate are sanctioned. Purchase up to 50,000 can be made by Purchase Department.If thepurchase amount is more than 50,000, then the approval of Managing Director.THE STRUCTURE OF PURCHASE DEPARTMENT IS AS FOLLOWS PUCRCHASE OFFICER PURCHASE SUPERDIENT ASSISTANT PURCHASE OFFICER HELPERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 48
  • 49. “Distribution Effectiveness in Hubli-Dharwad for KMF” ADMINISTRATION DEPARTMENT: The Administration Department controls the overall functioning of the organization. The Organization consists of the following three levels. a. Managerial cadre includes Managing Director, Deputy Manager, and Assistance Manager. b. Supervisory level included technical officers and supervisors. c. Worker level includes labors helpers. The department has the following structure: Deputy Manager Asst. Manager (Board) Asst. Manager (Personnel) OZPPppppAdmn Superintendent Admn Superintendent Admn Assistant Time Canteen Security ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 49
  • 50. “Distribution Effectiveness in Hubli-Dharwad for KMF” The Administration Department also handles Canteen, Security and Time KeepingMachine.CANTEENThere is a canteen in the premises itself. The employees are provided lunch, tea etc., atreasonable rates. The canteen is handled by the canteen-In charge.TIME KEEPERThis department records the working hours of the employees. Time machine shows the entrytime and exit time of each employee. The workers divided into different shifts control theworking of the department. Each employee is given a punch card, whenever an employeeenters the premise he has to punch the card in the time machine and before living the premisehe has to do the same. Based on this attendance, canteen bills are charged, wages are fixedand deduction are made.SECURITY DEPARMENT Dharwad milk union occupies 25 acres of land the whole premise is been guarded bythe security personnel. The security people work in three shifts. All the vehicles are checkedbefore entering the premise. The department is also maintains separate registers like store-inregister, attendance register etc.SKILLS The skills here refers to the various skills the workers have here the workers arefurther Divided into three categories, This first category contains the people who are in thetop management level the second category consists of the supervisor‟s office assistants etc.The Third category consists of the supervisor‟s office assistants etc. The third categoryconsists of the workers at the operational. The first category consist of the people who are in the decision making process in KMFthese people are highly qualified few Deputy Managers are to industries like IRMA, Ananddairy for Training. The second category is related to office work and fieldwork. These people are alsotrained in Computer Applications, secretarial skills, accounting skills etc. The third level people consist of the workers who are actually into the operation thesePeople are also trained into fields like checking the quality of milk processing packing etc.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 50
  • 51. “Distribution Effectiveness in Hubli-Dharwad for KMF”TRAINING SYSTEM The Union emphasizes on training the employees. Most of the training given to theemployees here are On-the-Job training and few Off-the-Job Training.  Procurement and Technical Input Training (NDDB)  PG Diploma in Rural Management  Basic Computer Applications.  Data Base Administrator  Finance Training for non-Finance Officer  Co-Operative management Training Programs  Clean Milk Production TrainingSTYLESA) DMU has follows Top to Bottom or Top down style system.B) The Styles of the organization is said to follow the participative type that is themanagement cadre follow the participative type of administration. The fact is that for amanufacturing firm like the KMF, Dharwad this type of administration is necessary The Indicators of the Style are: Follows Orders, rules and procedure Is always Reliable, Dependable Watches DetailsPrefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm, Decision making parameter for day to day operations,The marketing department provides information to production department regarding Dailyrequirements of the sale of the milk and milk products based on the marketing demand, Laterthe production department will take the decision about production activities.STRATEGIES The Dharwad Milk Union has the following set of strategy, which will be formulatedEvent year. The present year has the following strategies. The strategies are formulated withthe help of KMF and NDDB and the union members. Below are the strategies set for thisyear.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 51
  • 52. “Distribution Effectiveness in Hubli-Dharwad for KMF” COMPETITOR PROFILEMajor competitor in Karnataka for K.M.FHATSUN (Arokya)Welcome to the Hatsun world, India‟s largest private dairy. From a modest ice creammanufacturer to one of the leading names in India‟s dairy sector in just a span of threedecades, The company was in-corporated on 4th march 1986 under the name and style ofhatsun foods private ltd. The name of the company was changed hatsun milk foods private ltdand subsequently converted in to a public ltd company in the year 1995. the present name ofthe company was adopted in the year 1998 . The company was found and promoted by Mr. R.G Chandramogan and his associates.R.GChandramogan, Initially started ice cream business in early in 1970 and later in the year 1986formed the business into a private ltd co, which was later converted into a public ltd co. The company is the leading private dairy industry in India. the co enjoys market shareof 60%&35%for its ice creams in tamilnadu & south India respectively .the market share forits milk & milk based product is 45% in the entire south India the co plant are situated in redhills (Chennai),Salem and kancheepuram in tamilnadu and belgum in Karnataka . The co is the first in south India to introduce homogenized milk, which is consumed allover the world .the co was proved to introduced 100% pathogenic bacteria removed milk, thefirst of its kind in India bacteria removed milk is produced by bacteria clarification processusing german technology which physically removes 100% pathogenic bacteria from milk thistechnology helps in preserving the natural flavor and taste of from fresh milk. It started as a creamy dream in 1970: Arun icecream, the rich, delicious brand that hascaptured the heart of millions of icecream lovers. With over 70 delightful varieties it is theNo.1 selling ice cream in south india . Arun ice creams is manufacture at the most modernplant its kind in Chennai. From the ingredients, to the packing and the distribution stringentquality control is maintained at every stage which has made Arun ice creams the first icecream brand in India to win the 9001 certification for quality and world class manufacturingfacilities. Arun ice cream reaches the customer through the largest network of a exclusiveparlours in India.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 52
  • 53. “Distribution Effectiveness in Hubli-Dharwad for KMF”Sales The combined sale of arokya and komatha is 75,000 liters a day. And hastsun is fast nearingits objective 1 million liters a day.Hatsun quest for quality starts at procurement, two times a day, 365 days of the year at over athousand collection centres, from more than a hundred thousand farmers hastsun sources itsmilk with on ever watchful eye, always keen on quality. It‟s an enthusiastic and bustingactivity when milk its takes first step in its journey to the consumers homes.Products  AROKYA  KOMATH  SANTHOSH  ARUN (Ice cream)OTHER COMPETITORS  ADHITYA  SPURTHI  BHARTHI  SRI KRISHNAADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 53
  • 54. “Distribution Effectiveness in Hubli-Dharwad for KMF” SWOT ANALYSISSTRENGTH  Nandini enjoys good image.  Wide distribution network.  Milk processed in local milk.  It enjoys highest share in the packed milk segment.WEAKNESS  Recurrent quality problem.  Lowest paying brand (commission less).  Low milk predominant.  Poor retail serving & consumer grievance handling.  Inadequate sales promotional activity & bad smell.OPPORTUNITY  Scope to develop new area.  Availability of buffalo milk-improve market quality.  Predominant of loose milk segment- divide appropriate strategies.  Market penetration.THREATS  No entry barriers for private players.  Low level of consumer awareness.  Persuade benefits of competing brand.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 54
  • 55. “Distribution Effectiveness in Hubli-Dharwad for KMF” RESEARCH DESIGN INTRODUCTION OF PROJECT This project is carried out in, Karnataka co-operative Milk Federation Hubli. Theywork for the purpose of giving a quality and fresh milk for customer without adding anychemicals. Direct formers (cow) to customer, with a fresh good quality milk.The study has been under taken to find out the effectiveness of distribution channel aboutK.M.F Dharwad Milk and other products.The area of study is limited to  Hubli  DharwadThe study has been done to ensure that this would help and organization to increase theirsales and ultimately profits.SCOPE OF THE PROJECT The project was exclusively conducted for dealers and agents for consumer durables.The time frame of this project lasted about 2 months.TITLE OF THE PROJECT “A Study on Distribution Effectiveness in Hubli & Dharwad For K.M.F”STATEMENT OF THE PROBLEM:Milk is day to day need of any individual all over the world. In India the supply of milk to thecustomers done through the unorganized milk man, for many years co-operative milk unionsenjoyed monopoly in the market but after the entry of private sector in this industrycompetition has increased to maximum extent. Each of players in the market many ranges ofmilk products under different brands and each and every player wishes that his brand ofproduct must be on top of mind of the customers. Hence Distribution becomes major issue inmilk products. How, KMF addresses this issue is the problem of the study.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 55
  • 56. “Distribution Effectiveness in Hubli-Dharwad for KMF”AIMS & OBJECTIVES: 1. To study the organization overview. 2. The study has been understood to find out the distribution channel about K.M.F organization. 3. To know the expectations of the agents, dealers from the organization. 4. To find out the role of the organization in promotion of the product. 5. To determine the satisfaction level of agents and dealers organization 6. To determine the effectiveness of the distribution channel. 7. To know the reason for non satisfaction of the agents. 8. To know the problem faced by agents or dealers.SCOPE OF THE STUDY: Dharwad Milk Union, a Subsidiary of Karnataka Milk Federation, is the oldestcompany in the North Karnataka region in the Packaged Milk and Milk Products segment.The company was the leader in this segment with its various products under the brand ofNANDINI. But now with the increasing competitors from private sector in Packaged Milkand Milk Products industry the company has failed to increase its market.The company has made the attempt to increase the sales through many promotional activitieslike advertisements through various Medias, and Awareness Campaigns. Through thesepromotional activities the company wanted to re-capture the customers who are shifted fromNandini to other private branded products, and also wants to capture those consumers whostill depending on the un-organized suppliers like Dabba Milkmen etc… to serve their needof milk and milk products.So now the company wants to know the Distribution effectiveness about Nandini Milk andMilk products and impact of promotional activities on creating the awareness in the minds ofcustomers. And also the company wants to know what sort of activities to be undertaken toattract the customers.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 56
  • 57. “Distribution Effectiveness in Hubli-Dharwad for KMF” METHODOLOGY In this project the questionnaire was designed for dealers and agents of K.M.F –Dharwad in Hubli and Dharwad.In this project the questionnaire was administrated personally.Questionnaire adapted was 1. Open-ended question. 2. Multiple questions 3. Dichotomous questionsData collection Instrument In this project personnel interview and questionnaire was adapted for collecting thedata. 1. Primary data 2. Secondary data.Primary data is collected through survey method i.e. by preparing questionnaire andinterviewing persons directly and by interacting with the marketing manager, dealers, agentsand other staff members who all are involved in distribution network.Secondary data, which is secondary in nature i.e. already, collected information. Thissecondary data is collected through- Company broachers Books Magazines News papers InternetADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 57
  • 58. “Distribution Effectiveness in Hubli-Dharwad for KMF” Analysis and interpretation From the required data collected from the dealers and agents by way of questionnairesand personal interview, on the basis of collected data can be analyzed and based on thisanalysis, conclusion and recommendations was formulated.Research Approach: Survey MethodSampling Process: The process of drawing a sample from a large number ofAgents and dealers is called sampling The sampling process is broadly divided into three categories, they are 1. Sampling unit 2. Sampling size 3. Sampling techniqueSampling Unit: Sampling unit for study is conducted on distribution effectiveness onNandini Milk and other products for agents and dealers from the various part of the HubliAnd Dharwad.Sampling size: The sampling size consist the 100 agents, dealers for K.M.F products invarious parts of Hubli and Dharwad.Sampling technique:Probability judgment techniques Systematic sampling: The most common form of systematic sampling is an equal-probability method. In this approach, progression through the list is treated circularly, with areturn to the top once the end of the list is passed. The sampling starts by selecting an elementfrom the list at random and then every kth element in the frame is selected, where k, thesampling interval this is calculated as,ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 58
  • 59. “Distribution Effectiveness in Hubli-Dharwad for KMF”Population size: Hubli-Dharwad City Total Male Female Population 943,857 475,980 467,877 Literates 736,506 389,290 347,216 Children (06) 99,989 51,293 48,696 Sex ratio 1:0.98 983 1000Tools for data analysis: SPSS Software and MS Excel Frequency tables Chi-Square test Factor analysisADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 59
  • 60. “Distribution Effectiveness in Hubli-Dharwad for KMF” CHAPTER-III DISTRIBUTION Distribution is one of the four aspects of marketing. A distribution business is themiddleman between the manufacturer and retailer or (usually) in commercial or industrialthe business customer. After a product is manufactured by a supplier/factory, it is typicallystored in a distribution companys warehouse. The product is then sold to retailers orcustomers. The other three parts of the marketing mix are product management, pricing,and promotion. Traditionally, distribution has been seen as dealing with logistics. The Distribution ChannelFrequently there may be a chain of intermediaries; each passing the product down the chainto the next organization, before it finally reaches the consumer or end-user. This process isknown as the distribution chain or, rather more exotically, as the channel. Each of theelements in these chains will have their own specific needs; which the producer must takeinto account, along with those of the all-important end-user.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 60
  • 61. “Distribution Effectiveness in Hubli-Dharwad for KMF” ChannelsA number of alternative `channels of distribution may be available: 1. Selling direct (via a sales force) 2. Mail order (including Internet and telephone sales) 3. Retailer 4. Wholesaler 5. Agent (who acts on behalf of the producer) Vertical MarketingThis relatively recent development integrates the channel with the original supplier -producer, wholesalers and retailers working in one unified system. This may arise becauseone member of the chain owns the other elements (often called `corporate systemsintegration); a supplier owning its own retail outlets, this being forward integration. It isperhaps more likely that a retailer will own its own suppliers, this being backwardintegration. (For example, MFI, the furniture retailer, owns Hygena which makes its kitchenand bedroom units.) The integration can also be by franchise (such as that offered byMcDonalds hamburgers and Benetton clothes) or simple co-operation (in the way that Marks& Spencer co-operates with its suppliers).Alternative approaches are `contractual systems, often led by a wholesale or retail co-operative, and `administered marketing systems whereone (dominant) member of the distribution chain uses its position to co-ordinate the othermembers activities. This has traditionally been the form led by manufacturers.The intention of vertical marketing is to give all those involved (and particularly the supplierat one end, and the retailer at the other) control over the distribution chain. This removes oneset of variables from the marketing equations.Other research indicates that vertical integration is a strategy which is best pursued at themature stage of the market (or product). At earlier stages it can actually reduce profits. It isarguable that it also diverts attention from the real business of the organization. Suppliersrarely excel in retail operations and, in theory, retailers should focus on their sales outletsrather than on manufacturing facilities (Marks & Spencer, very deliberately providesconsiderable amounts of technical assistance to its suppliers, but does not own them).ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 61
  • 62. “Distribution Effectiveness in Hubli-Dharwad for KMF” Horizontal MarketingA rather less frequent example of new approaches to channels is where two or more non-competing organizations agree on a joint venture - a joint marketing operation - because it isbeyond the capacity of each individual organization alone. In general, this is less likely torevolve around marketing synergy. RetailersLike for wholesalers, it may be that you only use retailers if you manufacture your ownproducts: again, evidencing the larger smaller business. Retailers can promote your productby making consumers aware of its availability and by passing on technical information thatcould encourage the sale. Because there are thousands of retailers located all around the country, they are anexcellent intermediary for distributing your product to a wide geographical range ofconsumers. Today, many retailers prefer to buy their products directly from producers (you)instead of going through wholesalers: this is typical of supermarkets. By selling directly toretailers, the added expense of transportation is the only issue. Small businesses account for a high proportion of retailers and so they can often findthemselves at the end or in the middle of a distribution channel, where their own channel ofselling to a consumer would be direct. Using Multiple Channels of DistributionWhen analyzing which distribution channel is best for your business, you should not restrictyourself to one channel, but instead adopt a number of channels that are suitable for sellingyour product/service efficiently and effectively (if necessary).For example, a business may use a retailer to sell their product and at the same time, usedirect mail and telemarketing to further encourage sales: there are a number of feasiblecombinations.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 62
  • 63. “Distribution Effectiveness in Hubli-Dharwad for KMF” Choosing the Right Distribution ChannelThere are several factors affecting how you may decide on the most appropriate distributionchannel(s). A few of these are highlighted below:Profit and Sales Which channels will maximise sales and profit? Using intermediaries such as agents, retailers and wholesalers can distribute your product on a wider scale but can often lead to reduced profit levels. Finding the right balance is the keyProduct/Service Perishable products such as certain foods (e.g. milk) usually require direct sales because of their short shelf lives. The same principle applies to fragile products to reduce the amount of transportation and handling Arguably, services need to be sold direct or through intermediaries that provide a strong link between the consumer and the business such as direct mail, e-commerce or telemarketing. This way the consumer can specifically give their situation or requirements directly to the business so a tailored service can be provided Products of low value that are manufactured in high quantities may be influenced to take a distribution channel involving a wholesaler. This way, it reduces the issue of storage, as wholesalers will buy in bulkThe Consumer How convenient is it for them to purchase your product or service Who is your target audience TelemarketingSelling your product/service through telemarketing is becoming increasingly popular.Similar to direct mail, telemarketing allows sales to be made on a local, national and globalscale, although the costs will increase with the time and distance of phone calls. Extra skillsmay also be required creating the need for more staff. Alternatively, a professional servicecan be consulted to carry out the task: with an increased cost and/or commission.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 63
  • 64. “Distribution Effectiveness in Hubli-Dharwad for KMF” Agents/BrokersAn agent or broker will help sell your product/service, but will not take ownership of whatthey are selling at any time. They usually work on commission taking a percentage of thetotal sales made by themselves. An agency or brokerage will sell your product or service, forexample insurance, tickets for entertainment, accommodation, etc. This can be directly to theconsumer or to retailers and wholesalers.Agents/brokers can sell your product on a scale than extends from your business premisesand are very useful for expanding your business into foreign markets. Perhaps the mostcommon example of an agent would be a travel agency. They never own the holidays orcredit the full amount of the sale to their business. Instead, they act as a link between theholiday resort and the consumer, taking a commission on the sales. WholesalersIt may be that you only sell to a wholesaler if you manufacture your own products: possiblyevidencing a larger small business. If this is the case, a wholesaler can be used to distributeyour products reaching a potentially large number of consumers. The main function of awholesaler is to provide a link between the producer (you) and the retailer. The advantage ofselling to a wholesaler is that they often buy in bulk, splitting the purchase into smallermanageable quantities for further selling to retailers.Once selling to a wholesaler, there are three ways that your product will reach the consumer.Firstly, the consumer will purchase directly from the wholesaler: this is the less commonroute out of the three. Alternatively, your products will be sold on by the wholesaler toretailers. The other advantages of selling to a wholesaler are that they may have strong linkswith quality retailers: research will help discover this fact. In addition, because they buy inbulk, it reduces the burden of on-site storage at your premises reducing overhead costs.Further, wholesalers will also take away the burden of transportation, as they often have theirown network of transport delivering goods directly to retailers, which would normally beyour responsibility. The disadvantage of using a wholesaler to distribute your products is thatthey cannot market your products extensively. Further, because they buy in bulk, it is oftenyou will sell at a price much lower than the final retail price. Therefore, the wholesaler willtake some of the profit because they will sell on your products in smaller quantities at ahigher price.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 64
  • 65. “Distribution Effectiveness in Hubli-Dharwad for KMF” DHARWAD MILK UNION DISTRIBUTION CHANNELDistribution Channel DMU has its own marketing channel. However it fallows two types of direct channels.1. Consumer Market: DMU is selling its products directly to the consumer through its special venders. It alsodistribute to nearly to 600 retailers and milk parlors. These are exclusive milk parlors, whichsell only KMF products.2. Institutional Market: There is also demand for milk, which is sent by institution like government runinstitution, hospital, school, hotels etc.Strategies adapted by the department to enhance sale of its products are. Conduct awareness programs of milk homogenized processed milk. Attain daily complaints of consumers and retailers. Need for healthy promotional activities against competitors. Adapting different marketing strategies in place of undifferentiated strategy. Cross functional teams. New area visits. Door to door survey. New agentsADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 65
  • 66. “Distribution Effectiveness in Hubli-Dharwad for KMF”Distribution Chart Raw Milk Processing Production Milk Bi-product Packing Marketing (Orders) Store Loading & Dispatching Van drivers & Retailers Agents & Retailers Consumers Delivery boysDISTRIBUTION CHANNEL SYSTEMADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 66
  • 67. “Distribution Effectiveness in Hubli-Dharwad for KMF” PROMOTIONAL ACTIVITIES CARRIED OVER BY KMFPromotional activities are the activities conducted by the company which helps the companyto keep its customers informed about the product, any developments, and advancement in theproducts. The promotional activities help the company to place its brand or product on the topof the mind of the customers. These activities depend on the nature of the product, the targetcustomers, the message that the company wants to convey to its customers etc…KMF found the need for adopting the promotional activities in order to create awarenessabout the product which intern lead to increase in sales and help the company to increase itsmarket share. The company has undertaken various promotional activities in order to increasethe market share of its Milk and Milk products.The following are the major promotional activities carried over by KMF:Advertisements Magazines Hoardings Ad boards Banners Dealer displays Television Radio etc…Awareness campaigns Door to door Mass campaignADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 67
  • 68. “Distribution Effectiveness in Hubli-Dharwad for KMF” Analysis and Interpretation Keeping in view of the objectives, the data so collected from various sources and wereanalyzed with the help of appropriate techniques. The results of the study are presented in thischapter under the following headings. 1. Which products do you sell more in a day? S. No Product No of Percentage Respondent 1 Toned Milk 47 47% 2 Standard Milk 29 29% 3 Shubham Milk 19 19% 4 Full Cream Milk 5 5% Total 100 100% 50% 47% 45% 40% 35% 29% 30% 25% Series2 19% 20% 15% 10% 5% 5% 0% Toned Milk Standard Milk Shubham Milk Full cream MilkInterpretation  From the above chart Most of the agents are high sales toned milk and secondly standard milk of NandiniADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 68
  • 69. “Distribution Effectiveness in Hubli-Dharwad for KMF”2. What time do you sell more products? S. No Timing No of Percentage respondent 1 Morning 63 63% 2 Afternoon 5 5% 3 Evening 29 29% 4 Any time 3 3% Total 100 100% 70% 63% 60% 50% Morning 40% Afternoon 30% Evening Any time 20% 17% 11% 9% 10% 0% Morning Afternoon Evening Any timeInterpretation  From the above chart 63 percentage of agents are sell in the morning it has clear that the delivery of the product should reach the agents before 5.45 AM „o‟ clockADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 69
  • 70. “Distribution Effectiveness in Hubli-Dharwad for KMF” 3. What credit period do you expect from the organization? S. No Credit period No of Parentage respondent 1 1 day 40 40% 2 15 day 16 16% 3 1 month 15 15% 4 Cash payment 29 29% Total 100 100% 1 day 29% 40% 15 days 1 month 15% Cash payment 16%Interpretation Most of the agents are wants a credit from one day and some and cash payments are also high in the above pie chartADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 70
  • 71. “Distribution Effectiveness in Hubli-Dharwad for KMF” 4. What incentives do you expect from bulk purchase? S. No Incentives No of Percentage respondent 1 Cash discount 79 79% 2 Gifts 3 3% 3 Scheme benefit 12 12% 4 Other 6 6% Total 100 100% 90% 79% 80% 70% 60% 50% Series1 40% 30% 20% 12% 10% 6% 3% 0% Cash discount Gifts Schems Other specifyInterpretation  In the above chart it is cleared that 79% of the agents wants to increase in the commission or in other scheme benefits which is benefit for agentsADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 71
  • 72. “Distribution Effectiveness in Hubli-Dharwad for KMF” 5. Are you satisfied with delivery time taken by K.M.F? S. No Satisfaction of No of Percentage delivery time respondent 1 Yes 69 69% 2 No 31 31% Total 100 100% 31% Yes 69% NoInterpretation  In the above pie chart 69% of the agents are satisfied with the delivery time but who is in the last points the vehicle are not reaches the correct time that is 31% agents are not satisfied with the delivery time.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 72
  • 73. “Distribution Effectiveness in Hubli-Dharwad for KMF” 6. Are you satisfied with the approach of sales man? S. No Satisfaction of No of Percentage sales man respondent 1 Yes 69 69% 2 No 31 31% Total 100 100% 69% 70% 60% 50% 40% 31% Yes 30% No 20% 10% 0% Yes NoInterpretation  In the above chart the sales man approach is 69% it is cleared that they are satisfied with the delivery person. But in the above chart 31% agents are not satisfied with that person it will effect on sales so improve of the vehicle transporter behaviourADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 73
  • 74. “Distribution Effectiveness in Hubli-Dharwad for KMF” 7. What are the problems you are facing? S. No Problems facing by No of Percentage agents respondent 1 Delivery time 20 20% 2 Exchange of 68 68% damaged milk 3 Approach of sales 10 10% man 4 Other 22 22% Total 100 100% 80% 68% 70% 60% 50% 40% 30% Series1 20% 22% 20% 10% 10% 0% Delivery time Exchange of Approach of Other damaged milk sales manInterpretation  The agents are facing more problems in the exchange of damaged milks so improve in the packaging and also delivery time and approach of sales man. Other problems like more time for cash payment.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 74
  • 75. “Distribution Effectiveness in Hubli-Dharwad for KMF” 8. Whether there is any delay in supplying product S. No Delay in supply No of Percentage respondent 1 Yes 46 46% 2 No 54 54% Total 100 100% 46% Yes 54% NoInterpretation  In the above chart 54% of the agents say no delay in supply of milk. But the 46% of the agents says there is a delay, which are last point of supply and some vehicle contractors are not going on times. After loading the vehicle some are going to homes and some are taking rest in outside any hotels. Concentrate this contractor regularly.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 75
  • 76. “Distribution Effectiveness in Hubli-Dharwad for KMF” 9. When do you sell more milk? S. No Seasons No of Percentage respondent 1 Festival season 60 60% 2 Occasions 9 9% 3 Marriage season 24 24% 4 When discount are 7 7% offered Total 100 100% 70% 60% 60% 50% 40% Festival Occasion 30% 24% Marriage season 20% Other time 9% 7% 10% 0% Festival Occasion Marriage Other time season Interpretation  In the above chart high sale of volume in the festival and marriage seasons, 60%&24% so they give more commission in that time the agents are motivate and they will increase the sales in other time also. In the occasion like world cup this time also sale is increase by 9% and by other time 7%ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 76
  • 77. “Distribution Effectiveness in Hubli-Dharwad for KMF” 10. During the peak time how is the supply S. No Peak time supply No of Percentage respondent 1 Very good 22 22% 2 Good 54 54% 3 Average 14 14% 4 Poor 10 10% Total 100 100% 10% 14% Very good 22% Good 54% Average PoorInterpretation  In the above chart when the sales are more in that time how is the supply the 22% agents says very good, 54% agents says good, and 14%agents says average,10% agents says poor . Concentrate all the agents when sales are increase during the peak time.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 77
  • 78. “Distribution Effectiveness in Hubli-Dharwad for KMF” 11. Which are the parameters a customer giving more preference while purchasing milk? S. No Customer No of Percentage preference respondent 1 Brand Name 17 17% 2 Quality 63 68% 3 Price 9 9% 4 Service 11% 11% Total 100 100% 70% 63% 60% 50% 40% Brand name Quality 30% Price 20% 17% Service 9% 11% 10% 0% Brand name Quality Price Service Interpretation  When buying consumer what factors they are observing the agents view is 17% of the consumers are believe on brand name-The high volume consumers are on quality basis they buy the milk and 9 % of the consumers are buy the price basis, and 11% of the consumer service basis like they are in the morning time. Who are employees, small businessperson, workers they want in early morning.  They organization concentrate the entire thing especially in the quality of the product because now days the consumers are give preference more on quality of the product.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 78
  • 79. “Distribution Effectiveness in Hubli-Dharwad for KMF”12. Cleanliness of the milk crates S. No Cleanliness of crate No of Percentage respondent 1 Very good 21 21% 2 Good 29 29% 3 Average 27 27% 4 Poor 23 23% Total 100 100% 35% 29% 30% 27% 25% 23% 21% 20% Very good Good 15% Average Poor 10% 5% 0% Very good Good Average PoorInterpretation  In the above chart the opinion of the cleanliness of the create 21% agents are says very good, 29% of the agents says good, 27% of the agents says average, and 23% of the agents says its poor.  So concentrate on the cleanliness of the crates it will help for the shelf time of the milk products and sometimes the smell of the milk are comes from this crates they are not cleaned. In the above chart more agents says its not up to the mark so concentrate this all the things.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 79
  • 80. “Distribution Effectiveness in Hubli-Dharwad for KMF” 13. Transportation vehicle condition and insulation S. No Vehicle condition No of Percentage respondent 1 Very good 26 26% 2 Good 38 38% 3 Average 26 26% 4 Poor 10 10% Total 100 100% 10% Very good 26% 26% Good 38% Average Poor Interpretation  The condition of the vehicle and insulation it will help for the shelf time of the milk. When loading the milk the temperature is 4 cc if the vehicles are not proper insulation the temperature will goes up and the shelf time of the milk also.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 80
  • 81. “Distribution Effectiveness in Hubli-Dharwad for KMF”14. Arrangements of advertisement materials from K.M.F against S. No Arrangements of No of Percentage Advertisement respondent materials 1 Very good 10 10% 2 Good 28 28% 3 Average 30 30% 4 Poor 32 32% Total 100 100% 35% 32% 30% 30% 28% 25% Very good 20% Good 15% Average 10% 10% Poor 5% 0% Very good Good Average PoorInterpretation  In the above chart the advertisement of the material (paint of the shops, wall, A shape Boards, STD board) are more for agents. Today‟s competitive world promotion of the product is important so concentrate on this thing alsoADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 81
  • 82. “Distribution Effectiveness in Hubli-Dharwad for KMF” 15. Regarding any complaints how is the response in K.M.F Dharwad? S. No Complaint No of Percentage response respondent 1 Very good 16 16% 2 Good 34 34% 3 Average 38 38% 4 Poor 22 22% Total 100 100% 16% 22% Very good Good Average 34% Poor 38% Interpretation  If any complaints the response of the organization is not so good. Please concentrate on the agents. They are loyal for the organization.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 82
  • 83. “Distribution Effectiveness in Hubli-Dharwad for KMF” 16. Are you satisfied with the present commission for Nandini Milk Products? S. No Satisfaction of No of Percentage commission respondent 1 Yes 22 22% 2 No 78 78% Total 100 100% 78% 80% 70% 60% 50% yes 40% No 22% 30% 20% 10% 0% yes No Interpretation  In the above chart 22% of the agents are satisfied with the present commission. But 78% of the agents are not satisfied with the commission.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 83
  • 84. “Distribution Effectiveness in Hubli-Dharwad for KMF” 16. A. If no which milk products do you feel you should get more commission? S. No Product No of Percentage Respondent 1 Toned Milk 45 45% 2 Standard Milk 21 21% 3 Shubham Milk 29 29% 4 Full Cream Milk 5 5% Total 100 100% 5% 29% 45% Toned Milk Standard Milk Shubham Milk 21% Full Cream Milk Interpretation  The high volume selling milk is toned. After comes standard If increase the commission on toned milk and standard the sales will increase.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 84
  • 85. “Distribution Effectiveness in Hubli-Dharwad for KMF” 17. Are you satisfied with the overall services provided by K.M.F? S. No Satisfaction of No of Percentage overall service respondent 1 Yes 65 65% 2 No 35 35% Total 100 100% 35% Yes 65% No Interpretation  In the above chart how is the overall service provided by K.M.F the 65% of the agents says they are satisfied with the service of K.M.F. But 35% of the agents are not satisfied with service of the K.M.F so concentrate this all agents. If they are high volume sellers it will effect on the sales.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 85
  • 86. “Distribution Effectiveness in Hubli-Dharwad for KMF” 18. Which promotion you recommend to KMF SL. No Which promotion you No of Percentage recommend to KMF Respondent 1 Campaign 19 19% 2 Banner 22 22% 3 Advertisement 48 48% 4 Magazines 11 11% Total 100 100% 48% 50 40 30 22% Campaign 19% 20 Banner 11% Advertisement 10 Magazines 0InterpretationIn the above chart 19% of agents recommend for campaign and 22% of agents recommendbanner and also 48% of agents recommend advertisement, but only 11% of agentsrecommend magazines obtained in this analysis people know the KMF having poorpromotion activities. Then agents says concentrate on TV advertisement and demand onprovide the banners to agents and retailers.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 86
  • 87. “Distribution Effectiveness in Hubli-Dharwad for KMF”19. Any suggestion (Or feed backs) from agents and Dealers  Concentrate on quality of the milk product  More complaints on the smell of the milk concentrate on this also.  Any complaint of the agents there is responsible officer is required and continues meet with agents  If there is any complaints the agents want to contact with him the particular phone number is required for contact a particular person.  Who are selling more milk? They want more commission like slab rates whom sales 100 litre fix the commission, and who sales more than 100 fix commission differently.  Always send extra milk with vehicle.  When order given for more milk the organization will not send that extra. When they don‟t need they are sending more.  Some agent‟s need the cooling boxes concentrate on this also.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 87
  • 88. “Distribution Effectiveness in Hubli-Dharwad for KMF” CONCLUSION Clearly Nandini milk is a long way to go before it becomes a major player in southIndia in the perishable goods like Nandini milk and other products. Its Brand image is thecutting edge to its marketing strategy. K.M.F has its brand image from 30 years. The onlything K.M.F needs to develop strong promotional activities which concentrating more insatisfaction of the agents and retailers and also concentrate on rural market and housewives,which help to improving sales. While conducting a survey I came to know about many agents and retailers areproffered Nandini Brand milk.If the organization will give more commission and other promotional activities likeadvertisement material boards and paint to shop. And also filed officers meet continues toagents and retailers definitely it will become more market share in the Karnataka. There should be some competition in the market from Nandini to other brand milkproducts so Nandini conduct some offers conduct some scratch cards, prizes (who are highvolume sales) for agents and dealers. To avoid in delays in the issue of scheme befits etc.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 88
  • 89. “Distribution Effectiveness in Hubli-Dharwad for KMF” FINDINGS OF RESEARCH The market potential has immense significance in the field of marketing, market cannotignore the market opportunities or the market to be used that are prevailing and going tooccur in the market, this is because today‟s market is basically competition oriented tooutperform other and capture large market shareAs per the survey it clears the all the agents and retailers are getting the complaints ofNandini milk productsAs per the survey I came to know that: As considering Nandini milk  Nandini stands for first in selling the milk.  Toned milk is high selling milk in K.M.F- Dharwad.  By conducting the survey I came to know about that Nandini toned milk and standard are high selling goods.  No sales person or sales manager visit the agents and retailers to get their feedbacks.  Perishability of Nandini milk is very highly compared to other brand of milk.  Most of the agents are part timers  No credit or extension of time for cash payment.  Most of the agents and retailers are not satisfied with the commission.  Other milk products like Aditha, Arokya, Spurthi, Sri krishna etc are selling well in the market because of they are paying more commission.  K.M.F – dharwad are doing very less promotional activities compare to other milk brands.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 89
  • 90. “Distribution Effectiveness in Hubli-Dharwad for KMF”  Nandini milk products are selling very well, but still improvement on some cases is required.  Agents and dealers meetings not conducted regularly which resulted in poor relationship with dealers and agents.  Availability of milk in different points is not known through displays which resulted in poor result.  After removing milk from cold store till the consumer point proper care for minting temperature of milk are not training. RECOMMENDATIONS For any organization to survive in this competitive market the company should adopta distribution channel which will help not only the organization but also its agents andretailers. Therefore the following points should be consider and adopt by the organization inorder to create his good will, brand image and profit.  The company gives increase commission to the agents and retailers so that they get motivated to sell more Nandini milk and its products. This can be done by having some offers, gifts specifically for agents and retailers.  The organization should add some more agents‟ on the distribution channel to add some more agents in the same route it will help for decreasing the cost of transportation.  The main mediator of the organization is the agent and retailers they know the customer behaviour and preference while purchasing the milk so they can easily find out the problem of the product. So continues contact with the agents will give good feedback from the agentADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 90
  • 91. “Distribution Effectiveness in Hubli-Dharwad for KMF”  The marketing filed officers will meet regularly and motivate to sell the products.  68% of the agents are facing the exchange of damaged milk so improve the packaging of the product.  Time taken for Dispatching the route vehicle and time taken for security check in two points has to be minimized for timely dispatch.  Most of the time milk sold in the festival and marriage season.  There should be a quick and timely response to the problems of agents and customers from marketing as well as production section.  The problem of milk spoilage in the evening that has to be solved.  Milk availability throughout the day is totally not found this has to be brought in practice.  Target of reaching at last point at 5.30 am in all routes must be ensured by cross check by field staff regularly.  Filling the milk pouches in the crates with proper ice quantity  Constant guidelines, encouragement, counselling must be done to the staff of marketing and production to maintain and upgrading the good relationship between two departments. Which is the basic necessity to run the entire activities of marketing to achieve the goals successfully?ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 91
  • 92. “Distribution Effectiveness in Hubli-Dharwad for KMF” LIMITATIONS OF THE PROJECTThough the project was very structured one, it had following limitations 1. The area into consideration was limited for the study of the project, as they consider area and the facts collected, cannot be compared at large to entire Karnataka. 2. Ache project required analysis of different areas. With the limitation of time was very difficult to carry out the entire thing in full depth. 3. Analysis of the study is based on the assumption that information collected from the survey which is 100 sample 4. The period of the project is limited for 2 monthsADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 92
  • 93. “Distribution Effectiveness in Hubli-Dharwad for KMF” QUESTIONNAIREDear sir/Madam,I, the student of ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY, MBAPROGRAMME, CHIKMAGALUR, pursuing 2nd year MBA and I have undertaken aproject at K.M.F Dharwad. The topic is “A study on Distribution effectiveness in Hubli &Dharwad for K.M.F”. The information provided will be kept confidential and for academicuse. Please spare your valuable time for answering this questionnaire.Name: ________________Ph No: ________________Area (route):___________1. Since how long you are buying the products from KMFA. 0-1 year B. 1-2 yearC. 2-4 year D. 5 years above2. Which products do you sell more in a dayA. Milk B. CurdC. Sweets D. Other product3. Which milk do you sell more in a dayA. Toned milk B. Standard milkC. Shubham milk D. Full cream milkADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 93
  • 94. “Distribution Effectiveness in Hubli-Dharwad for KMF”4. What time do you sell more products?A. Morning B. AfternoonC. Evening D. Any time5. What credit period do you expect from the K M F?A. 1day B. 15 daysC. 1-month D. Cash payments6. What incentives do you expect from bulk purchase?A. Cash discount B. GiftsC. Scheme benefits D. Other specify…………5. What is your opinion about delivery time taken by K.M.F? A. Excellent B. Good C. Average D. Poor6. Are you satisfied with the approach of sales man?A. Satisfaction B. Dissatisfaction7. What are the problems you are facing?A. Delivery time taken B. Exchange of damaged milkC. Approach of sales man D. Other specify…….8. Whether there is any delay in supplying products from K M FA. Yes B. No9. When do you sell more milk?A. Festival season B. OccasionC. Marriage season D. When discount are offeredADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 94
  • 95. “Distribution Effectiveness in Hubli-Dharwad for KMF”10. During the peak time how is the supplyA. Very good B. GoodC. Average D. Poor11. Which are the parameters a customer giving more preference while purchasingmilk?A. Brand name B. QualityC. Price D. Service12. Cleanliness of the milk cratesA. Very good B. GoodC. Average D. Poor13. Transportation vehicle condition and insulationA. Very good B. GoodC. Average D. Poor14. Arrangements of advertisement materials from K.M.F comparing to competitorsA. Very good B. GoodC. Average D. Poor15. Are you satisfied with the present commission for all brands?A. Yes B. NoA. If no which brands do you feel you should get more commissionA. Toned milk B. Standard milkC. Shubham milk D. Full cream milkADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 95
  • 96. “Distribution Effectiveness in Hubli-Dharwad for KMF”16. What is your opinion about complaint resolution response from K.M.F?A. Very good B. GoodC. Average D. Poor17. Are you satisfied with the overall services provided by K.M.F?A. Yes B. No18. Which promotion activity you recommend to KMF?A. Campaign B. BannersC. T V advertisement D. Magazines19. Any suggestion _______________________________________________________________________________________________________________________________________________________________________Date: ____________ Signature ........THANK YOU........ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 96
  • 97. “Distribution Effectiveness in Hubli-Dharwad for KMF” BIBLIOGRAPHY1. SALES &DISTRIBUTION MANAGEMENT - DR. S L GUPTA,2. MARKETING RESEARCH -DONALD S. TULL,WEBSITES  WWW.KMFNANDINI.COOP  WWW.INDIANDAIRY.COMMAGZINES 1. BUSINESS TODAY 2. BUSINESS WORLD 3. MARKETING MASTER MINDADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR PAGE 97

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