market-potential defination

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market-potential defination

  1. 1. A PROJECT REPORT ON “MARKET POTENTIAL FOR SHIVAMRUT MILK AND MILK PRODUCTS IN AKLUJ AND ADJOINING AREA” AT SHIVAMRUT CO-OPERATIVE MILK PRODUCERS UNION, AKLUJ SUBMITTED TO UNIVERSITY OF PUNE, PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY AMOL S. KORDE. UNDER THE GUIDANCE OF Prof. G. N. SALUNKE AMRUTVAHINI INSTITUTE OF MANAGEMENT AND BUSINESS ADMINISTRATION AMRUTNAGAR, SANGAMNER-422608 2008-2010 1
  2. 2. ACKNOWLEDGEMENT I have a great pleasure in presenting the project report on “MARKET POTENTIAL FOR SHIVAMRUT MILK AND MILK PRODUCTS IN AKLUJ & ADJOINING AREA” for SHIVAMRUT CO-OPERATIVE MILK PRODUCERS UNION, AKLUJ for the partial fulfillment of Master in Business Administration course for “University of Pune”, at Amrutvahini Institute of Management and Business Administration, Sangamner. I would like to take this opportunity to thank the management of company for allowing me to undertake a project in a company of international repute. My special thanks and heartiest gratitude to Mr. Anand Karhade (Marketing Officer) for his kind co-operation and timely help. I am also thankful to DR. R. R. Berad Sir (Director). And my internal guide, Prof. G. N. Salunke Sir for his assistance and encouragement, motivation and valuable advice from time to time that guided me towards fulfillment of my project report successfully. I would like to thank my family and friend for their moral support throughout this project. I sincerely hope that the project report will help the company and serve as guide to those using this project. Thanking you, Amol S. Korde. 2
  3. 3. DECLARATION I, the undersigned hereby state that the report entitled “Market Potential for Milk and Milk Product” with reference to Shivamrut milk in Akluj & Adjoining area is a genuine and bonafide work prepared by me under the guidance of Prof. G. N. Salunke. The empirical findings in this project report are based on the data collected by myself. The matter presented in this report is not copied from any source. I understand that any copy is liable to the punishment in the way the University authority dean fit. The work has not been submitted for the award for any degree or diploma either to University of Pune, or any other University. This project report is submitted to the University of Pune in the partial fulfillment of the degree of Master of Business Administration. Date: ________ Place: ________ Signature (AMOL S. KORDE) 3
  4. 4. EXECUTIVE SUMMARY Location: - Akluj & Adjoining area Duration: - 2 months (June-July 2009) The main object of the project is to find out the scope, trade, and feasibility for milk and milk product, which includes the retail survey, consumer survey. Sample size: Total 145 nos. Retail survey: 45 nos. Consumer survey: 100 nos. In the retail survey which is termed as retail barometer researcher has to find out various aspect related to the products available in the milk product category like name of the manufacturer, brand name, visibility, pop material available, availability of the stock, sale month, source of purchase, Frequency of supply, scheme operating, price to retailer, as well as price to Consumer, manufacturing date Etc. In the Consumer Survey the main thing was to execute scheduled and interview they and customers should belong to the socio-Economic Classification. In Third step researcher has to interview the customers for getting the details regarding the product used by them as well as what are the expectations from the new product. The major findings of the retail barometer were that the market for Milk product is large because of daily used of milk by every human being. Shivamrut is the market leader in category of the Milk & Warana in category of the Milk Product. For the consumers survey is the same became people want fast action, low price and easily available which is fulfilled by milk product only. During the retail survey researcher found some new product also & they are as follows: SHIVPRASAD, HUTATMA, DOODH GANGA, SONAI. 4
  5. 5. From the consumers feedback given by the questionnaire researcher has given some recommendations regarding the product that most of the people want the product available with sweet taste and packing should be good with white color, advertising should be done to promote the product, also the chain between the retailers & the distributors should be maintained. 5
  6. 6. INDEX SR. NO. TOPIC PAGE NO. 1 Introduction 2 Industry Profile 3 Company Profile 4 Product profile 5 Organization Structure 6 Theoretical Background 7 Research Methodology 8 Data Analysis and Interpretation 9 Findings 10 Conclusion 11 Recommendation 12 Questionnaire 13 Bibliography 6
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  8. 8. Background of the Study: Companies and Marketing Managers often carry out study of Specific Problems and opportunities in the market so as to analyze the performance of their Brands and respective Products in the market. This can be done by carting out Market survey, Product Preference Test and Advertisement Evaluation. In this case, as per company suggestion Market surveys were carried out to understand the Customer and Retailers preferences for the Milk and Milk Product. Akluj Market was divided into 13 brief Area and asked us to carry out a detailed survey about Milk product brands sold most area wise, Availability of Shivamrut Products and Suggestion if any given by the retailers to improve service. Doing so researchers as marketing students got a brief exposure to the functioning of small and large scale Retailers, Distributors and Measuring of product performance in an Rural market. 8
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  10. 10. INDUSTRY PROFILE: The World Dairy Situation – 2008-09: According to a report published by International Dairy Federation (IDF) on the World Dairy Situation 2008, the worldwide milk production is expected to grow at a slower pace in 2008-09 and is estimated at 655 million only tonnes, only 9 million tonnes more than the production of 2007-08. The strongest growth would be in Asia, notably in China and India. Milk production is projected at 36 million tonnes in China and 94.60 million tonnes in India. India would continue to be the largest milk producer, followed by the US, with projected production of 82.60 million tonnes The following graph represents world milk production (fig in million Tonnes) Graph No. 1 : World Milk Production Major changes are not expected in dairy products basket. World butter production increased for two years, in 2005 and 2006 and then declined in 2007-08. It is expected to decline again in 2008-09. Industrial cheese production is continuing to grow. The production of condensed and evaporated milks is subject to a declining trend for many years in the developed market. It has been replaced by many other dairy products, especially liquid milks of UHT type, coffee cream 10 83 84 86 89 94 97 99 100 102 102 104 477 484 491 501 509 517 521 533 543 548 554 0 100 200 300 400 500 600 700 1998- 99 1999- 2000 2000- 01 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07 2007- 08 2008- 09 other milk cow milk
  11. 11. and coffee whitener including some of the non-dairy origin. Production of milk powders increased last year and is expected to continue in the year 2008- 09. However, this growth is mainly restricted to whole milk powder (WMP) and semi- skimmed milk powder, while skim milk powder (SMP) production is on the way down. The reason in favour of WMP was the ongoing fat surplus problem in EU, together with the reduction of butter intervention price. This trend would continue to remain despite the price increase for butter. For SMP, despite high market price, production is likely to decline in 2008- 09. The reasons are that milk production would grow only modestly and in most major producing areas of the world, less skim milk would be available for drying, because of the on- going growth of the other product markets. In EU, the subsidy for processing skim milk into casein was set at zero, in October 2008, which dampened the production of SMP. This is good news for Indian dairying, which has created a large capacity for SMP production. World trade in dairy products after a period of relative stagnation, started recovery in the second half of 2007-08 and it continued in the first half of 2008-09. The recovery is due to prosperity resulting from economic demand. Export of butter and butter-oil recovered in 2007-08 and this recovery continued in early 2008-09. The total volume of the world trade in cheese has accelerated and this trend is likely to continue in the year 2009. The world trade in WMP continued to increase in the first half of 2008-09, but it seems that though it would continue in the second half also, it would be at a slower pace. The reason is that the supply is short and countries like New Zealand, US and Argentina have cleared their stocks. The biggest exporter of the WMP in 2007-08 was the New Zealand with export volume of more than 0.7 million tonnes, which is an all-time record. EU was the second major exporter, but with quantities exported, reduced considerably. The outlook for the trade in dairy commodities for 2008-09 appears bright. However, since the new market equilibrium, in respect of prices has to be found, the question is whether international trade in dairy products will continue its growth in 2008-09 at the same momentum as in previous years. Because of the price situation in 2008-09, one may ask whether demand can follow the expected trends, but it would be premature to expect stagnation in the trade. In established markets, the potential for demand to reduce slightly can release the additional supplies, which are needed to maintain the growth of trade. The price rise in 2007 and 2008 11
  12. 12. was unprecedented and therefore no experience is available on which to base conclusions as to what might happen in future! Nevertheless, it can be assumed that much would however depend on the farm policies of the big players. These policies are mainly oriented towards supporting their protected domestic markets and not, with the exception of few, aiming at the new opportunities which are offered by the growing demand of milk and its product by the world's population and its growing purchasing power. Indian Dairy Industry Profile: India’s dairy sector is expected to triple its production in the next 10 years in veiw of expanding potential for export to Europe and the West. Morever with WTO regulations expected to come into force in coming years all the develope countries which are amoung big exporters today would have to withdraw the support and subsidy to their domestic milk product sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk production and increasing production in yhe country multinational companies are planning to expand their activities here. Some of those milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the convesation of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at aound Rs7,00,000mn. 12
  13. 13. Co – Operative Unions: Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. • More than 900 village cooperatives have created jobs for people in their own villages and that too without disturbing the socio-agro-system and thereby the exodus from the rural areas has been arrested to a great extent. • The yearly elections of the management committee and its chairman, by the members, are making the participants aware of their rights and educating them about the democratic process. • Perpetuating the voluntary mix of the various ethnic and social groups twice-a-day for common causes and mutual betterment has resulted in eroding many social inequalities. The rich and the poor, the elite and the ordinary come together to cooperate for a common cause. • Live exposure to various modern technologies and their application in day-to-day life has not only made them aware of these developments but also made it easier for them to adopt these very processes for their own betterment. One might wonder whether the farmer who knows almost everything about impregnating a cow or buffalo, is also equally aware of the process in the humans and works towards planning it. • The income from milk has contributed to their household economy. Besides, women, who are the major participants, now have a say in the home economy. This income is helping these people not only to liberate themselves from the stronghold of poverty but also to elevate their social status. The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio- economic upliftment and common good. 13
  14. 14. • Produce an appropriate blend of the policy makers’ farmers’ board of management and the professionals: each group appreciating its roles and limitations. • Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. • Provide a support system to the milk producers without disturbing their agro-economic systems. • Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers. • Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Cooperative Movement is an example par excellence, of an intervention for rural change. Recently the Indian cooperative movement got a much needed facelift. With competition snapping at its heels, the sector which has been governed by arcane laws until the recent past will see a special provision inserted in the Companies Act, 1956. All the cooperative unions will be re-christened co-operative companies; they will come under the purview of the registrar of companies, instead of the registrar of cooperatives. While they will have to adhere by the audit procedures like any corporate, they will differ from ordinary companies in many ways. Not everyone can join a cooperative. Only users can enroll as members at a fixed membership fee. Quantum of business and not equity capital will see an election to the board. And there will be flexibility to raise capital from members and outside. Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as producer-owned and controlled organizations. NDDB supports the development of dairy Cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). 14
  15. 15. Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. Some of the major Dairy Cooperative Federations include: • Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF) • Bihar State Cooperative Milk Producers Federation Ltd (COMPFED) • Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) • Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) • Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) • Karnataka Cooperative Milk Producers Federation Ltd (KMF) • Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) • Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) • Maharashtra Rajya Sahakari Maryadit Dudh Mahasangh (Mahasangh) • Orissa State Cooperative Milk Producers Federation Ltd (OMFED) • Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) • Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) • Rajasthan Cooperative Dairy Federation Ltd (RCDF) • Tamil Nadu Cooperative Milk Producers Federation Ltd (TCMPF) • West Bengal Cooperative Milk Producers Federation Ltd. (WBCMPF) 15
  16. 16. The Dairy Cooperative Network: • Includes 170 milk unions • Operates in over 338 districts • Covers nearly 1,08574 village level societies • Is owned by nearly 12 million farmer members. National Dairy Development Board: The National Dairy Development Board was created to promote, finance and support producer- owned and controlled organizations. NDDB's programme and activities seek to strengthen farmer cooperatives and support national policies that are favorable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperation. A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years. This commitment has been rewarded with achievements made by cooperative dairies in milk production, employment generation, and per capita availability of milk, foreign exchange savings and increased farmer incomes. The National Dairy Development Board (NDDB) has replaced exploitation with empowerment, convention with modernity, stagnation with growth and transformed dairying into an instrument for the development of Indian farmers. The National Dairy Development Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to "transplant the spirit of Anand in many other places". He wanted the Anand model of dairy development - with institutions owned by rural producers, which were sensitive to their needs and responsive to their demands - replicated in other parts of the country. 16
  17. 17. Milk and Milk Products Industry In Maharashtra: The above map show’s the various milk and milk products industries location in maharashtra. 17
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  19. 19. COMPANY PROFILE SHIVAMRUT CO-OPERATIVE MILK PRODUCERS UNION SHIVAMRUT Co-op Milk Producers Union was established on 27th January, 1976 under the Co-operative Societies Act. Initially five Talukas from Solapur District namely Malshiras, Sangola, Pandharpur, Mangalwedha, & Karmala were brought under the operational area of this sangh. Presently the activities of this sangh are mainly concentrated within Malshiras taluka having 110 villages. Due to effective implementation of this program, income generated from Dairy business tuned to Rs.100 Crores annually in this area. Location: The Shivamrut milk union is situated at village Vijaynagar, near Akluj. It is 165 km from Pune. It is a co-operative dairy founded by Mr. Shankarrao Mohite-Patil in 1976. The total area under processing plant is 13 acres. The plant capacity is 3,00,000 liters. 19
  20. 20. Products manufactured at Shivamrut: The major milk processing is the packaging of pasteurized and homogenized milk in pouches. Also, there is manufacture of milk products like Ghee, Butter, Cheddar Cheese, Processed Cheese, Sterilized Flavoured Milk, Curd, Shrikhand, Amrakhand, Lassi, Pedha, Burfi, Buttermilk, Gulab Jamun, etc. Vision & Mission: SHIVAMRUT aims to be the quality leader in class of milk industry through continuing to be the market pioneer of environmentally innovative technology, introducing good quality of milk to market that increase company popularity. Goal Statement: To enhance the wealth generating capability of the organization in a globalizing environment, delivering superior and sustainable quality of customer services. Objective of Shivamrut: 1. To organize & arrange the activity of milk procurement from producers to the sangh. 2. To process milk by Homogenization & Pasteurization in a highly sanitary condition. 3. To find assured & remunerative market for milk & milk products. 4. To provide veterinary & breeding services by undertaking programs with the use of high quality germ plasma. 5. To perform a role of catalyst in the process of securing financial inputs & purchasing dairy animals for the beneficiaries in the areas. 6. To make available medicinal & biological inputs for the dairy animals in the area. 7. To undertake production & supply of nutritious & balanced cattle feed. 8. To work as an agency for insuring the dairy cattle & for perusing the insurance settlement claim of cattle owners, with the insurance companies. 9. To perform a function of disseminating modem technical know how to the dairy farmers in the area by organizing extension & training programs regularly. Share Capital: Initially the share capital of the Shivamrut Sangh was Rs.51,000/-presently this has gone up to Rs.14,85,13,000/- 20
  21. 21. Sales Turnover: • Procurement of 2.40 -2.50 lakh milk per day. • Sale of 70,000 liters of packing milk per day • Average Rs-15, 00,000/month sales of bi-products. Board of Directors: Name Designation Shri. R. V. Mohite – Patil Chairman Shri. B. G. Salunke Vice-Chairman Shri. D. R. Mohite – Patil Director Shri. D. R. Bhilare Director Shri. H. D. Sool Director Shri. B. G. Bhosale Director Shri. N. Y. Jadhav Director Shri. B. A. Patil Director Shri. M. P. Patale Director Smt. H.P. Patil Director Smt. S. D. Bhosale Director Smt. V. M. Jadhav Director Smt. U. K. Kenjale Director Smt. S. K. Mane Director Smt. K. B. Patil Director Shri. D. L. Inamdar Director Shri. N. Y. Kale Director Smt. R. A. Bhujbal Director Shri. H. B. Dhobale Director Shri. D. A. Avtade Director Smt. S. M. Inamke Director Shri. S. V. Kulkarni M.D Branches:  There are six branches of Shivamrut Sangh- 1. Akluj + ( Head Office ) 2. Vashi (Mumbai) 3. Pune 4. Solapur 5. Latur 6. Nanded 21
  22. 22. Annual Procurement of Milk from April-08 to March-09: MONTHS LITRES (in lakh) APRIL-08 71.26 MAY-08 72.51 JUNE-08 72.21 JULY-08 72.85 AUGUST-08 72.92 SEPTEMBER-08 69.39 OCTOBER-08 73.63 NOVEMBER-08 73.71 DECEMBER-08 74.90 JANUARY-09 75.95 FEBRUARY-09 74.64 MARCH-09 74.22 Graphical Presentation: Annual Sales of Packing Milk from April-08 to March-09 BRANCHES LITRES (in lakh) VASHI 48,30,411 22 66 68 70 72 74 76 78 APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MARCH ANNUAL PROCUREMENT OF MILK (IN LAKHS)
  23. 23. PUNE 34,14,527 LATUR 16,85,420 NANDED 42,05,918 SOLAPUR 26,65,882 AKLUJ 54,63,722 Graphical Presentation: INTERNATIONAL STANDARDS International Standards: The Union has met & achieved the ISO-9001 (Quality Management System) HACCP (Food Safety Audit) & ISO-14001 (Environment Management System) Certifications & is striving to meet the other International Standards. The Union is the first to obtain these Certifications together in the state. 23 0 1000000 2000000 3000000 4000000 5000000 6000000 VASHI PUNE LATUR NANDED SOLAPUR AKLUJ ANNUAL SALES OF PACKING MILK (in Lakhs)
  24. 24. Raw Material Suppliers: Affiliated Societies: It is noteworthy to mention that, two member societies have won the prestigious awards of State Govt. for efficient management continuously in 1984-85 & 1985-86.Initially only five milk procurement societies were in operation in Malshiras Taluka, however this number has raised to 407 primary societies which are involved in milk procurement & collection of each society on an average 600 liters per day. Social Commitment: Supporting Rural Education by aiding school, Erecting public gardens, Bus shelters, Aiding Hospitals, Promoting Rain water harvesting, Motivating people through active participation in Gram Swachchhata Aabhiyan, Helping Drought affected farmers by supplying water & fodder. Generously Donating for relief funds at the time of disaster & natural calamities like earthquake, Floods, Tsunami etc shows social commitment of Shivamrut Sangh. 24
  25. 25. Competitors of Shivamrut: 1. GOVIND 2. SONAI 3. LOKMANGAL 4. GOKUL 5. HUTATMA 6. WARANA 7. CHITALE 8. GOPAL 9. AMUL 10. KRUSHNAI 11. RAJHANS 12. DUDH PANDHARI Ice Factory: Ice is an essential commodity required for procurement of milk, to retain its quality in initial stages Sangh used to procure this commodity from far place like Sangli, Phaltan, Pandharpur, Solapur, etc. This resulted in escalating cost of milk procurement of milk. Ultimately Sangh took a decision to install its own Ice Factory which has provided to be a most profitable event. Financial assistance was obtained from N.C.D.C. New Delhi & Government of Maharashtra & an Ice Factory of 10 M.T. capacity per day with a capital structure of 11.25 Lakh, which commenced production in April, 1982. As even this production is inadequate considering the ever increasing demand of Ice, Sangh proposes to undertake expansion program of 20 tines capacity per day Ice Plant. 25
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  27. 27. PRODUCT PROFILE A) Ghee: • Granular and white colour. • Shelf life of 9 months at ambient temperature. • Hygienically manufactured and packed on automatic FFS M/C. • Available in 200gm, 500gm, and 1 kg polypacks. B) Shrikhand: • Shrikhand is an age old tradition product popular in western India. • It is a fermented product containing useful lactic acid bacteria and is made by mixing concentrate curd (CHAKKA) with sugar condiments, fruits, nuts etc. • Shrikhand is available in Badam, Pista, and Kesar, Elaichi. It is a product having nutritional advantage of fermented milk product and is rich in milk protein. • Available in 100gm. 250 gm, and, 500gms in plastic cups. 27
  28. 28. C) Amrakhand: • The product is made from concentrated curd sugar and alphanso mango pulp. • The product is fermented product having nutritional advantages and distinct flavour due to use of Alphanso mango. • Available in 100gms, 200gms, 500gms, Plastic cups. D) Lassi: • It is a popular Indian fermented drink similar to drinking yoghurt. The product is made from fresh cow milk by using lactic acid bacteria and mixing sugar. It is then pasteurized, homogenized and packed in pouches using form fill seal machine. • Available in poly packs. E) Table Butter: • Butter is now a days commonly used in the breakfast with bread and many more things • Butter is generally used in the restaurants for the different recipes like Pav Bhaji, Soups , curries and cookies • Butter is available in 100gm, 500gm, packets 28
  29. 29. • Butter is prepared by both by milk i.e. Cow and buffalo F) Toned Milk: • Toned milk is product which great demand in the metros. • Milk has good nutritive value and high shelf life. • In this different tetra packs are available. • The consumption of Toned milk is increased day by day. G) Cheese: • Cheese is the innovative product of Shivamrut Dairy • Cheese was previously not consumed by the Indian population due to unawareness but now people more familiar with cheese and demand for the cheese is increasing. • Shivamrut cheese is well processed quality cheese and has great nutritive value. • It is available in 100,200,500 Gms polypacks. H) Sterilized Milk: • It is made from milk by adding various flavours. • It is refreshment drink and available in 200ml. • It is available in 12 flavours i.e. - Badam, Pista, Chocolate, Strawberry, Butterscotch, Rose, Pineapple, Mango, etc. 29
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  31. 31. Organisation Structure: Organization structure of Shivamrut Dairy (Co-Operative) BOARD OF DIRECTORS BOARD OF DIRECTORS CHAIRMANCHAIRMAN MANAGING DIRECTOR MANAGING DIRECTOR PERSONNEL MANAGER PERSONNEL MANAGER MARKETING MANAGER MARKETING MANAGER FINANCE MANAGER FINANCE MANAGER 31 DAIRY MANAGER DAIRY MANAGER SECRETARYSECRETARY QUALITY MANAGER QUALITY MANAGER CATTLE FEED DIVISION MANAGER CATTLE FEED DIVISION MANAGER PROCUREMENT MANAGER PROCUREMENT MANAGER BRANCH MANAGER BRANCH MANAGER PURCHASE MANAGER PURCHASE MANAGER
  32. 32. QUALITY CONTROLQUALITY CONTROL CHEMISTCHEMIST LAB.TECHNICIANLAB.TECHNICIANLAB.TECHNICIANLAB.TECHNICIAN 32 R &D OFFICERR &D OFFICER LAB.TECHNICIANLAB.TECHNICIAN CHEMISTCHEMIST LAB.TECHNICIANLAB.TECHNICIAN
  33. 33. MARKET POTENTIAL MARKET POTENTIAL: Decisions related to products and services - where to offer them, how to set revenue targets for them, how much to spend in support of them - all start with a realistic, accurate and confident understanding of Market Potential. “A Market Potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a good or service during a stated future period.” A market potential indicates how much of a particular product can be sold to a particular market segment over some future period assuming the application of appropriate marketing methods. Market Potential data measures the likely demand for a product or service in a county, ZIP Code, or any other defined trade area. Businesses and other organizations use Market Potential data to make decisions about where to offer products and services. 33
  34. 34. A Market Potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of goods or services during a stated future period. Thus, a market potential indicates how much of a particular product can be sold to a particular market segment over some future period, assuming the application of appropriate marketing methods. Sales potential: A sales potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to a specified company selling a good or service during a stated future period. Thus, sales potential represents sales opportunities available to a particular manufacturer, while market potential indicates sales opportunities available to entire industry. With Market Potential Data One Can- • Optimize organization merchandise mix • Develop successful advertising and marketing plans • Decide which expansions are most profitable • Increasing Share of Wallet/Untapped Potential Increasing market share requires an understanding of "Untapped Potential," which is different than simply taking the difference between Total Potential and your current market share. • Maximize Marketing Budgets & Efficiencies With a realistic picture of Market Potential you can focus resources intelligently, maintaining a presence where you're strong and investing heavily where opportunity is greatest i.e., investing marketing budget more effectively. • Set Aggressive & Attainable Revenue Targets 34
  35. 35. The best way to establish revenue goals and sales quotas for products, territories or stores/branches is to base them on the true consumer demand/market potential within the area. Sales Forecast:- A sales forecasting is an estimate of sales in physical units in a future period under a particular marketing program and assumed set of economic and other factors outside the unit for an entire product line. It may be for a manufacturer’s entire marketing area or for any sub- division of it. Such forecasts are short term or operating it is important to the sales executive. ANALYZING THE MARKET POTENTIAL Market Identification:- The first step in analyzing a product’s market potential is to identify its market. Market identification required finding out Who buys the product? Who use it? Who are the prospective buyers and users? Some companies find answer to these questions in their internal records but most of the companies especially those that use long marketing channels, in consumer- good marketing, Buyers, user, and prospectus are identified and classified according to such characteristics as age, sex, income, and social class. In Industrial goods marketing, buyers, users, and prospectus are identified and classified by size of firm, geographical location, type of industry and the like. Market identification studies reveal the characteristics that differentiate the market segments making up the product’s market potential. market identification studies provides, as a side result, customer data on such factors as purchase frequency, searching time expended unit of purchase, and seasonal buying habits. When assembled and analyzed, these data help in estimating market potential. 35
  36. 36. Market Motivation:- The second step in analyzing market potential is to detect the reasons why customers buy the product and the reasons why potential customers might buy it. Market motivation studies answer twin questions: why do people buy? & why don’t buy? The answer helps not only in estimating market potential but assist the sales executive to increase the effectiveness of promotional programs. Motivation research techniques vary, but the most widely used are the projective techniques, in which respondents projects themselves, their attitudes interests and opinions into interpretation of special materials presented by the researcher. Analysis of results by trained specialist lays bare what goes on in buyer’s minds, including, importantly, the real reasons for buying or not buying the product. Most motivation studies are directed towards explaining the buying behaviour of ultimate consumers rather than industrial users. Information from motivation studies helps not only in estimating a product’s market potential but also assists in deciding 1. How best to present the product in sales talks 2. The relative effectiveness of different selling appeals 3. The relative appropriateness of various promotional methods Analysis of Market Potential:- Third Step is to analyze the market potential. Market potential can not be analyze directly, so analysis make use of market factors (Market factor is a market feature or characteristics related to the product’s demand) using market factor for analyzing market potential is a two step process 1. Select the market factor associated with the product’s demand 2. Eliminate those market segments that do not contain prospective buyers of the product Why Use Market Potential Data 36
  37. 37. Market Potential data helps companies to understand, predict, and influence consumer behavior by providing insight into areas with the highest growth potential. This allows you to make informed decisions about products and services based on the latest trends and consumer demand. RETAILING Introduction Retailing consist of the activities involved in selling goods and services to ultimate consumer for personal use. Thus, a retail sale is one in which the buyer is an ultimate consumer, as opposed to business or institutional purchaser. The term retailing has been derived from old French word ‘retailing which means ‘a piece of ‘or ‘cut-up”. This means breaking of large quantity in small pieces. This is exactly what is done in retailing. In retailing large amount of products are acquired by the retailer, the same is divided into smaller amounts for selling into smaller amounts for selling it to the individual consumer for his consumption. Definition:- Different definition of retailing indicates nature of retailing indicates nature of retailing activities. Following are some the definition of retailing. “Retailing is concerned with sale of goods and services to the consumer for their use.” 37
  38. 38. “Retailing is the link in the distribution system, which makes goods and services available to the consumer.” “Retailing is the intermediate step between the consumer and the manufacturer.” Thus, it can be seen that retail transaction are different from wholesale transaction. In retail, goods are sold to the ultimate consumer who purchases the same for his own consumption. Further characteristics like buying motives, discounts, quantity of purchase, stock requirement and price difference differentiate retail transition from wholesale transaction. FUNCTION OF RETAILING RETAILERS ARE UNDERTAKEN BUSINESS ACTIVIES or perform function that increase the value of the products and service they sell to consumers. These functions are: 1. Providing an assortment of products and services. 2. Breaking bulk. 3. Holding inventory. 4. Providing services. 1. Providing Assortment:- supermarkets typically carry 15000 diff. Items made by over 500 companies. Offering an assortment enables customers to choose from a wide selection of brands, designs, sizes, colors and prices in one location. Manufacturers specialize in producing specific types of products. For e.g. Kellogg makes breakfast cereals. If each of these manufacturers had its own stores that only sold its own products, consumers would have to go many different stores to buy groceries to prepare a single meal. 2. Breaking Bulk:- 38
  39. 39. To reduce transportation costs, manufacturers had its own products, consumers would have to go to many different stores to buy groceries to prepare a single meal. 3. Holding Inventory:- A major function of retailer to keep inventory so that products will be available when consumers required. 4. Providing Service:- Retailers provide Service for customers to buy and use products will be available when consumers required. Retailers provide services for customers to buy and use products. E.g. they offer credit to customers can have a product now and pay for it later. In summery by providing assortments, making bulk, holding inventory and providing services, retailers increase the value of consumer receive from their products and services. Thus retailing is the set of business activity that adds values to the products and sold to the consumer for their personal or family use. Often people think of retailing only as sale of products in haircut or home-delivered pizza. Not all retailing is done in stores. TYPES OF RETAILERS FOLLOWING ARE THE TYPES OF RETAILERS: 1. Super retailers 2. Specilised retailers 3. Franchise retailers 4. Brand retailers 5. Discount retailers 6. Relationship retailers. 1. Super retailing:- In this type of retailing we have to discuss two type of super markets as- i) Conventional super market, 39
  40. 40. ii) Superstores and combination approach The conventional super markets are large self service super markets, offering considerable low prices. They offered groceries meat etc. But is such shop is the sell of non- food items such as health, beauty, aids and general merchandise is limited. Superstores and combination approach, along with the foodstuff, non-food merchandise such as flowers, health and beauty aids, kitchen utensils, also the musical instrument available in the super market. 2. Brand retailers:- The first thing you notice is that almost every product the shelves carry has the stores brand name –ghee, mustard, bread even chocolates. Best example of such type of retailers at Pune in Maharashtra hosiery. 3. Specilised Retailers:- It concentrates on a limited number of complementary merchandise categories and provides high level of service. The specialty segment focuses on narrow market segment or niche. Due to that they can offer a better selection and sales expertise to the customers. 4. Franchise Retailers:- It is contractual agreement in which Franchiser grants Franchisees the right to sell the suppliers product in exchange for some type of consideration. The Franchiser may receive percentage of Franchisee’s revenues in exchange for furnishing marketing professionals. Besides and children are focus of many new Franchises like baby from USA which sales baby furniture. 5. Discount Retailers:- 40
  41. 41. To understand the concept of Discount retailer first of all we have to understand what Discount stores are. The Discount stores are those stores, which offer brand-name products at lower prices. Generally they contain appliances, house ware, sport equipment etc. 6. Relationship Retailers:- This type of retailing is concerned with the relationship with the customers. Here retailers keep good relationship with the customers. So these types of retailers are called relationship retailers. NEED & SIGNIFICANCE OF THE STUDY Managers are always curious to know about position of the Company’s Product in the Markets which largely depends upon the company goodwill & Position of their Brand. Market Potential survey can chart out the Market share of the company along with that of its competitors. It helps the organization to find the Brands being purchased most by the consumers along with the Retailer Stocking and selling preferences. Market Potential survey helps to know the sales of Shivamrut Milk & Milk Products in its Local Area. Market Potential survey helps Managers to know the newly entered Brand in the market & also helps to know the competitors marketing strategy. OBJECTIVES OF THE STUDY • “Market Potential for Shivamrut Milk & Milk Product in Akluj & adjoining area “ 41
  42. 42. • To study the customer preference for the Milk. • To study the Retailers preference for the Milk. • To identify the newly entered Brands in the Market. • To find the milk products brands most purchased by the customers. • To find the milk products brands most preferred by the retailers. 42
  43. 43. RESEARCH METHODOLOGY Every marketing research acts as an aid to decision making by providing valuable information. The information provided by the research should justify the & money which organization puts in research activity, research design plays an important role in collecting useful information in cost effective manner. For the study of customer behavior marketing research is a must, for this purpose questionnaire is prepared for getting information from consumer & retailer. Market research is defined as “the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing”. According to American Marketing Association (AMA), Market Research is defined as “the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services”. 43
  44. 44. I have used Descriptive method for research. My Research is based on Primary as well as Secondary data sources Primary data source: Market survey which comprises of two types-  Consumer’s survey.  Retailer’s survey. Secondary data source: From internet, Company’s Brochure, Magazines, Annual review reports etc. Process of Research: 44 PROBLEM IDENTIFICATION PROBLEM IDENTIFICATION DEFINE RESEARCH OBJECTIVES DEFINE RESEARCH OBJECTIVES RESEARCH DESIGNRESEARCH DESIGN SOURCE OF DATASOURCE OF DATA PRIMARY DATA PRIMARY DATA
  45. 45. Research design: • Descriptive Research : - Descriptive Research includes surveys and fact findings enquiries of different kinds. The basic reason for carrying out descriptive research is to identify the cause of something that is happening. For this instance, research was used in order to find out whether Shivamrut Dairy’s market share differs between geographical regions and to discover how many competitors Shivamrut Dairy have in the Akluj market. A Cross-sectional Study was carried our on the selected sample population of retailers on the selected routes to understand the Market Potential of Milk products in Akluj & adjoining areas. The purpose of Descriptive research is description of the state of affairs as it exists at present. The main characteristics of this method are that the 45 SECONDARY DATA SECONDARY DATA DATA COLLECTIONDATA COLLECTION DATA ANALYSIS AND INTERPRETATION DATA ANALYSIS AND INTERPRETATION FINDINGSFINDINGS SUGGESTIONS AND RECOMENDATIONS SUGGESTIONS AND RECOMENDATIONS
  46. 46. researcher has no control over the variables. He can only report what has happened or what is happening. Sampling method:- Cluster sampling method: - The entire Akluj was divided into a cluster 13 geographical regions. Each cluster was further divided into routes like Sangram Nagar, Ganesh Nagar, etc. On each route Kirana stores and Sweet marts were chosen at random and personal Interviews of store owners or managers was taken to find out the performance of milk products in his area, shop and suggestions if any for improvement of both product and services associated with it. Sampling Plan • Universe: The population for the study was population in the region of Akluj & adjoining areas. • Sample size: The sample size of the study is 120 respondents. It includes 75 milk & milk products consumers & 45milk & milk products retailers/distributors. • Sample media: The respondents in the sample were contacted through personal conversation with help of questionnaire. Questions were open ended as well as close ended. A) PRIMARY DATA For primary data collection, close-ended type of questionnaire was used first one for the consumers & the other for the retailers. 1) close-ended questionnaire In fixed question answer the respondent has to give answer out of the given fixed options & in open-ended question respondent is free to give their views & suggestions. The instruments used for primary data collection were: market survey which comprises of two types- 1). Consumer survey. 2). Retailer survey. 46
  47. 47. POPULATION SIZE Primary Data for Market Survey is as follows:- Total No. of Retailers = 45 Total No. of Consumers = 100 Routes Covered = 13 They are as follows: - 1. Sangram Nagar 2. Market Yard 3. Gandhi Chowk 4. Sujay Nagar 5. Yeshwant Nagar 6. Panchsheel Nagar 7. Ganesh Nagar 8. Gymkhana Road 9. Sadubhau Chowk 10. Old Bus Stand 11. College Road 12. Shankar Nagar 13. Vijay Chowk B) SECONDARY DATA The aim of the secondary data was to get the basic idea of different Milk & Milk Products & to gain the conceptual familiarity with the structure of dairy industry. The secondary data is the one which has already been collected by someone else & which has already been passed through the statistical process. It consists of the information collected from commercial research work done before. This data is collected from Internet, Company’s Brochure, Magazines & Annual Review Reports etc. Method of Data Collection: 1) Personal contact (Interview) - Consumer 2) Questionnaire (Interview) - Retailers 3) Observation - Kirana Stores and Sweet homes Instrument for data collection: 47
  48. 48. A structured Questionnaire was prepared with closed ended Multiple choice question for suggestions. This questionnaire was used to take personal interviews of Store Owners / Managers. Drafting of the Questionnaire: While Drafting a questionnaire for the research the following points were taken into consideration:- 1. The main aim of the study was to find the distribution of Milk product Brands in the given Area. 2. To know the retailer satisfaction level. 3. To know the consumer response to the quality of the product. 4. To know the competitors Position in Akluj market. 5. To collect the valuable suggestions of the retailers in terms of quality of Product and service. Data Analysis Techniques: The data thus collected from the Market survey has been analyzed as per the research plan stated above. The techniques that are used for analysis of data are: 1. Tabulation of data. 2. Pie charts – analysis of Brand distribution survey. 3. Bar graphs- representing secondary information. Limitations: The Limitations to the study are as follows:- 48
  49. 49. 1. The Time Constraint was a major limitation to the study. 2. The information collected solely depends upon the respondents answers and accuracy of information could vary. 3. Getting actual information from the respondents was difficult. 4. According to the sample size, the findings might only be suggestive and not conclusive. 5. The survey was limitsd to Akluj & adjoining area. SCOPE OF THE STUDY The Project was undertaken to understand various aspect regarding brands promoted by retailers & reason for that at Akluj & Adjoining area with reference to the Shivamrut Co-operative Milk Producers union, Akluj. Research endeavored to position of Shivamrut Milk & Milk Products in the market & finds out market share of Shivamrut Milk & Milk Products vis-à-vis its competitors & also find out market preference for various milk & milk products preferred by customer & awareness level of retailers. 1) CONSUMER SURVEY: The survey was conducted in Akluj. The total size of consumer survey was 100 respondents. 49
  50. 50. Research Instruments for Consumer Survey: A structured schedule was used for collecting data in the consumer survey. The questionnaire consists of a combination of simple & limited questions of close ended questions. The questionnaire is prepared in English language. The questions were so designed to get the maximum output of the respondent regarding the project. It was so prepared that it yields the best data for the project which will highlight all the important points of the study. The questionnaire was assembled & prepared in such a manner that it won’t consume more time of the respondent. 2) RETAILER SURVEY The retailer survey was conducted to confirm & corroborate results of the consumer survey. For the retailer survey the sample size was 45.The retailer’s survey was also carried out in the Akluj & adjoining areas. For the retailer survey questionnaire was prepared which was structured & consisted of multiple choice questions etc. The questions were also asked in depth to the retailers for collecting related data which was unstructured in nature. 50
  51. 51. DATA ANALYSIS & DATA INTERPRETATION The data collected was analyzed & presented by using Graphs & Charts etc. The questions in the questionnaire were analyzed individually as it prepared in the questionnaire. The graphical representation is done with an object to understand all analysis in a lucid manner. The analysis is totally depended upon the collected data in the study. Separate presentation of the consumers & the retailers is done in the project. CONSUMER SURVEY: A-1) Profession Wise Profile of Respondent: PROFESSION RESPONDENTS PERCENTAGE Servicemen 20 20 51
  52. 52. Businessmen 30 30 Housewives 35 35 Students 15 15 Total 100 100 Profession Wise Profile Businessmen 30% Housewives 35% Students 15% Servicemen 20% Interpretation From the above graph, it is clear that 35% are Housewives, 30% are Businessmen, 20% are Servicemen and 15% are Students. A-2) Income Wise Profile of Respondent: INCOME RESPONDENTS PERCENTAGE Less than 2500 8 8 2501-5000 12 12 5001-10000 60 60 More than 10000 20 20 Total 100 100 “Income wise Profile” 52
  53. 53. Interpretation From the above graph, it is clear that 60% of the customers belong to income range of 5001 to 10000, 20% belongs to more than 10000, 12% belongs to income range of 2501 to 5000 and only 8% of the customers belongs to income range less than 2500. A-3) Purchase Profile of Respondent in Liters: LITRE RESPONDENTS PERCENTAGE 0.5 litre 15 15 1-2 litre 60 60 Above 2 litre 25 25 Total 100 100 “Purchase wise Profile” 53 0 10 20 30 40 50 60 Less than 2500 2501 To 5000 5001 To 10000 More than 10000
  54. 54. Interpretation From the above graph, it is clear that 60% of the customers purchase in between 1-2 litres, 25% purchase more than 2 litres and only 15% of the customers purchase 0.5 litre. A-4) Profile of Respondent When They Purchase Milk: TIME RESPONDENTS PERCENTAGE Morning 70 70 Evening 25 20 Both the Time 10 10 Total 100 100 54 0 5 10 15 20 25 30 35 40 0.5 litre 1-2 litre Above 2 litre
  55. 55. Interpretation From the above graph, it is clear that 70% of the customers purchase in the morning, 20% purchase in the evening and only 10% purchase both the times. 55 Profile of Respondent When They Purchase Morining 70% Evening 20% Both the Time 10%
  56. 56. A-5) Customer Preference for Milk: BRANDS RESPONDENTS PERCENTAGE Shivamrut 61 61.00 Govind 14 14.00 Sahkar 10 10.00 Gokul 8 8.00 Amul 4 4.00 Other 3 3.00 Total 100 100 Interpretation 56 Customer Prefernce for Milk Shivamrut 61% Govind 14% Sahkar 10% Gokul 8% Other 3% Amul 4%
  57. 57. From the above graph, it is clear that 61% of the customers prefer milk of Shivamrut, 14% prefer Govind, 10% prefer Sahkar, 8% prefer Gokul, 4% prefer Amul and only 3% of the customers prefer other milk brand. A-6) Customers reasons for the preference of Milk Reasons for preference of Milk No. of customer s Percentage Quality 65 65.00 Price 15 15.00 Availability 10 10.00 Brand name 7 7.00 Packaging 3 3.00 Total 100 100 Reasons for the preference of milk Interpretation From the above graph, it is clear that 65% of the customers prefer milk because of its quality, 15% prefer Price, 10% prefer Availability, 7% prefer due to its Brand name, 3% of the customers gave importance to the packaging. 57 0 10 20 30 40 50 60 70 Quality Price Availability Brand name Packaging East West North
  58. 58. A-7) Customer Preference for Milk Product: BRANDS RESPONDENTS PERCENTAGE Warana 62 62.00 Govind 15 15.00 Shivamrut 13 13.00 Chitale 5 5.00 Amul 3 3.00 Other 2 2.00 Total 100 100 58 Customer Preference for Milk Product Warna 62% Govind 15% Shivamrut 13% Chitale 5%Amul 3% Other 2%
  59. 59. Interpretation From the above graph, it is clear that 62% of the customers prefer milk products of Warana, 15% prefer Govind, 13% prefer Shivamrut, 5% prefer Chitale, 3% prefer Amul and only 2% of the customers prefer other milk products brand. A-8) Customers reasons for the preference of Milk Products: Reasons for preference of Milk No. of customers Perce ntage Quality 68 68.00 Price 12 12.00 Availability 15 15.00 Brand name 3 3.00 Packaging 2 2.00 Reasons for the preference of milk products 59 0 10 20 30 40 50 60 70 Quality Price Availability Packaging Brand name
  60. 60. Interpretation From the above graph, it is clear that 68% of the customers prefer milk products because of its quality, 12% prefer Price, 15% prefer Availability, 3% prefer due to its Brand name, 2% of the customers gave importance to the packaging. RETAILER SURVEY: For the survey of consumer behavior it is also necessary to take the retailer under consideration, because they are also consumer of the company. Shivamrut Milk has Distribution Channel in which Distributors & the Retailers are involved. For getting information from retailer & distributor, 45 respondents were taken for survey. This information is used for taking important decisions. B-1) Profile of Milk Consumption in Akluj: The survey shows that milk consumption in Akluj is good. MILK CONSUMPTION RESPONDENTS Good 27 Bad 6 Average 12 Total 45 “Profile of Milk Consumption “ 60
  61. 61. B-2) Profile of Retailers Experience: From the data collected it shows that most of the retailers come under 5 to 10 Yrs & 15 to 20 Yrs experience. Very few retailers have less experience than 1 Year. EXPERIENCE RESPONDENTS 0 to 1 Yrs 3 1 to 5 Yrs 5 5 to 10 Yrs 13 10 to 15 yrs 18 15 to 20 Yrs 4 20 yrs and above 2 Total 45 61 0 5 10 15 20 25 30 Good Bad Average Profile of Retailers Experience 0 to 1 Yrs 7% 1 to 5 Yrs 11% 5 to 10 Yrs 29% 10 to 15 Yrs 40% 15 to 20 Yrs 9% 20 Yrs & Above 4%
  62. 62. B-3) Profile of How Much Liters of Milk they sell per Day: From the data collected it shows that the respondent sell 25-50ltr per day is maximum. Very few respondents sell more than 150ltr daily. LITRE PER DAY RESPONDENTS 25-50 19 51-100 16 101-150 8 150 Above 2 Total 45 62 0 2 4 6 8 10 12 14 16 18 20 25-50 51-100 101-150 150 Above
  63. 63. B-4) Milk Brands stocked by Retailers in the routes covered: From the survey it shows that Shivamrut Milk is stocked by most of the retailers due to its quality & availability. BRAND NAME RESPONDENTS SHIVAMRUT 38 GOVIND 22 SAHKAR 8 GOKUL 15 AMUL 8 OTHER 6 63 Milk Brands Stocked by Retailers Shivamrut Govind Sahkar Gokul Amul Other
  64. 64. B-5) Milk Product Brands stocked by Retailers in the routes covered: From the survey it shows that Warna Milk Products is stocked by most of the retailers due to its quality & availability. BRAND NAME RESPONDENTS WARANA 32 GOVIND 17 SHIVAMRUT 16 CHITALE 12 AMUL 8 OTHER 5 64
  65. 65. B-6) Reasons for milk product brands sold most by retailers: • Above graph shows the reasons for the Milk rpoduct brands sold most by retailers un their respective areas. • 32 % of retailers replied Consumer demand to be the most prominent reason for selling of their respective milk product brands the most. 65 Milk Product Brands Stocked by Retailers Warana Govind Shivamrut Chitale Amul Other Reasons for Milk Product brands sold by Retailers Consumer Demand 32% Incentives 24% Company Schemes 10% Company Service 25% Margin 9%
  66. 66. • 24 % stated good Company incentive as resons for selling of the particular milk product brand the most. • 25 % of Retailers rate company servie as the most important reason for selling their particular milk product the most. • However very few retailers (9%) rated margin as an important factor for selling particular milk brands most. • 10 % of rated Company schemes as important factor of selling most. B-7) Are Shivamrut Products easily available to you? From the research it was observed that most of the retailers are getting Shivamrut Products easily. Only few retailers were not getting Shivamrut products. 66 32 13 0 5 10 15 20 25 30 35 Yes No
  67. 67. B-8Retailer’s opinion about Shivamrut Milk & milk products distributor’s services:- It was observed that 40% retailers said that distribution service is average, 33% said it is good, 18 % retailers said that it is poor, only 9% retailers said that it is Excellent. 67
  68. 68. B-9Opinion of retailers about the credit period requirement:- From the survey it was observed that more than 75% of the retailers expect credit facility for Shivamrut milk &milk product. Only 24% does not expect credit. Sr. No. Options Retailers No. Percentage 1 Poor 8 17.77 2 Average 18 40.00 3 Good 15 33.33 4 Excellent 4 8.89 Total 45 100 68 Poor 18% Average 40% Good 33% Excellent 9%
  69. 69. Sr. No. Option No. of retailers Percentage 1 Yes 34 75.55 2 No 11 24.44 69 0 5 10 15 20 25 30 35 Yes No
  70. 70. Findings of the Consumer Survey: On the basis of the data collected it was observed that more than 60% of the consumers prefered Shivamrut Milk due to its satisfaction level with respect to quality is good & more than 60% of the consumers prefered Warana Milk 70
  71. 71. products due its quality & availabilty. It was observed that most of the consumers prefer to purchase milk in the morining & quantity from 1-2 litres daily. There is less awareness & availability about the Shivamrut Milk Product among the people. From the Retailers Survey: On the basis of the data collected it was observed that most of the retailers prefered Shivamrut Milk due to consumers demand & easily availability & most of the retailers prefered Warana Milk Products due to its consumers demand & incentives. As per the retailers the milk consumption in Akluj & Adjoining area is good. Most of the retailers have lot of experience & stocking of the milk between 25-50 litres & 51-100 is more. Amul, Hutatma, Govind, Sonai are the newly entered brands in the market. 71
  72. 72. 72
  73. 73. RECOMMENDATIONS Recommendations in market survey: The Milk products market has reached Maturity stage in India large no. of Co- operatives having a variety of product range has entered the market, thus the Shivamrut as a Brand can sustain in the market by increasing Brand awareness and Differentiation. This can be done as follows:- Improved Marketing Mix 73 PRODUCT • Increase Product line. • Improve Distribution Channel for Milk Products. PRICE • Lowest Price structure for local market. • Increase margin for retailers.
  74. 74. A. PRODUCT: 1. Product Lines should be increased by introduction of new products like Fat free flavored Milk, Probiotic Curd, and Skim Milk Powder etc. 2. Develop effective Distribution Channel for Milk Products. 3. Improve product quality too by concentrating on taste and increase the no. of flavors in existing products. B. PRICE: 1. Maintain current Price structure as it can compete with the existing brands. 74 PLACE • Improve coverage. • Increase no. of Wholesalers. • Improve delivery schedule PROMOTION • Increase print Advertisement. • Use print media like Banners, Posters and Danglers • Give schemes to retailers for promotion of products TARGET MARKE T TARGET MARKE T
  75. 75. 2. Provide higher Margin to retailers this motivates them to promote company’s Products as retailer recommendation is vital for improvement of sale. 3. Lowest price structure in Akluj Market as the close markets can impact of company goodwill with the retailers. C. PLACE: 1. Improve product coverage by exploring newly developed area in this will provide a new and increase consumer base. 2. Increase the no. of Retailers as compared to the only one distributor in Akluj market. 3. Improve delivery schedule to provide products on time to retailer most retailers compiled about poor service from Shivamrut. 4. Establish Company owned retail outlets in area Like Sadubhau chowk, S.M.P College, Maharshi high school, new bus stand etc. to improve sale and contribute to promotion of the product. D. PROMOTION: 75
  76. 76. 1. Increase advertisement through print media like Local newspapers (Sakal, Lokmat), Local magazines (Family doctor, Gruhashobika), Weekly editorials. 2. Use Media like Banners, Poster, and Danglers outside retail outlets this helps retailers to better promote and recommended company products. 3. Give incentives to retailers like Schemes on selling more then normal quantity during off season and non festival seasons this will space out the orders and stabilize the production. 76
  77. 77. 77
  78. 78. CONCLUSION • The Market Potential for Shivamrut Milk is good but there is very less hammering about Shivamrut Milk Products into the Customers mind. • More than 60% of the Customers prefer Shivamrut Milk due to its quality. • More than 60% of the Customers prefer Warana Milk Products due to its quality. • Most of the Retailers stock Shivamrut Milk & Warana Milk Products due to Customers demand, Company’s service & incentives. • However from the survey it was found that small difference in the consumer purchase preferences and Retailers selling preference of milk & milk product brands was largely due to the varied degree of perception about the brand among them. 78
  79. 79. A) Questionnaire For Consumer. Shivamrut Co-operative Milk Producers Union Date: - _________ Respondent’s Name - ___________________________________________________. Age - ____ years. Gender - Male Female 1) Occupation - ___________________________________________________. 79
  80. 80. 2) Income - a) Less than 2500 b) 2501-5000 c) 5001-10000 d) More than 10000 3) How much Milk do you purchase Daily? a) 0.5 litre b) 1-2 litre c) Above 2 litre 4) When do you purchase milk? a) Morning b) Evening c) Both the times 5) Which Milk do you prefer? a) Shivamrut b) Govind c) Gokul d) Sahkar e) Amul f) Other 6) Why do you prefer the above mentioned Milk? a) Quality b) Price c) Availability d) Packaging e) Brand name 7) Which Milk Product do you prefer? a) Shivamrut b) Warana c) Govind d) Chitale e) Amul f) Other 8) Why do you prefer the above mentioned Milk Product? a) Quality b) price c) Availability d) Packaging e) Brand name B) Questionnaire For Retailers Shivamrut Co-operative Milk Producers Union Date: _________ Retailers’ Name – ___________________________________________. 1. How is the consumption of Milk products in your area? 80
  81. 81. a) Good b) Average c) Bad 2. How long are you in this business ? a) 0-1 Yrs b) 1-5 Yrs c) 5-10 Yrs d) 10-15 Yrs e) 15-20 Yrs f) 20 Yrs & above 3. How much Milk do you sell per day? a) 25-50 lit b) 51-100 lit c) 101-150 lit d) 150 & above 4. Which Brand of Milk do you stock ? a) Shivamrut b) Govind c) Sahkar d) Chitale e) Gokul f) Other 5. Which Brand of Milk Products do you stock ? a) Shivamrut b) Govind c) Warana d) Chitale e) Amul f) Other 6. Why do you stock it the most ? a) Consumer demand b) Incentives c) Company Schemes d) Company service e) Margin 81
  82. 82. 7. Are Shivamrut Products easily available to you? a) Yes b) No 8. Rate the service provided by Shivamrut distributor? a) Poor b) Average c) Good d) Excellent 9. Do you require the credit facility to keep Shivamrut Milk & Milk Product? a) Yes b) No 10. Any suggestion for our brand? 82
  83. 83. Bibliography A. Contacts 1. Mr. S.V. Kulkarni Managing Director, Shivamrut Dudh Utpadak Sahkari Sangh, Akluj. 2. Mr. Anand Karhade Marketing Officer, Shivamrut Dudh Utpadak Sahkari Sangh, Akluj. 3. Mr. H.U Jadhav Shivamrut Dudh Utpadak Sahkari Sangh, Akluj. 4. Mr. Tanaji Pawar Shivamrut Dudh Utpadak Sahkari Sangh, Akluj. B. Books 1) Prof. Kulkarni M. V: Marketing research (Text & Cases), 8th edition 2008, Everest Publishing House, Pune, Maharashtra. 2) Kotler Philip: Kevin Keller, Marketing Management, 12th Edition 2007, Pearson Publication House. New York. 83
  84. 84. 3) De Sukumar: Outlines of Dairy Technology, 20th Edition 2004, Oxford University Press, Delhi. C. Web sites 1) www.fao.org 2) www.indiadairy.com 3) www.google.co.in 4) www.wikipedia.com 5) www.shivamrut.com 84

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