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Internship report md

  1. 1. INTERNSHIP REPORT An organizational study At MOTHER DAIRY, KOLKATASubmitted in partial fulfillment of the requirement of the Bangalore University for the forward of degree in Master of Business Administration Submitted by Mr. Anuranjan Thakur Reg. No. 10XQCMA014 Under the guidance of Prof.Sumithra Sreenath M.P. Birla Institute of Management Associate Bharatiya Vidya Bhavan No. 43, Race Course Road, Bangalore 1. August, 2011 M.P BIRLA INSTITUTE OF MANAGEMENT -1-
  2. 2. Student DeclarationI, Anuranjan Thakur (10XQCMA014) hereby declare that the internship report, anorganizational study conducted at Mother Dairy, Kolkata submitted in partialfulfillment of the requirements of the Bangalore University for the Award of degree inMaster of Business Administration is a bonafide work carried out by me under theguidance of Prof.Sumithra Sreenath, MPBIM, Bangalore.This report has not been submitted earlier to any other university or institution for theaward of any degree/diploma.The contents of this report are based on the data collected by me at Mother Dairy,Kolkata under the guidance of Mr. K. P. Boral (In-charge Personal Department) Place: Kolkata Anuranjan Thakur Date: 18/ 08/2011 Reg. No. 10XQCMA014 M.P BIRLA INSTITUTE OF MANAGEMENT -2-
  3. 3. ACKNOWLEDGEMENTI have this opportunity to acknowledge the invaluable assistance, support and guidanceextended by each and everyone who has contributed towards the successful completionof this project report.I would first thanks God almighty for giving me the wisdom and strength to undertakethis project.I further express my deep sense of gratitude to Mr. Dhiman Sen, without whose helpand support this project would not have been possible.I also express my deep gratitude to the management of Mother Dairy andMr.K.P.Boral(In-charge Personal Department) for the permission, support and for theencouragement which they have provided for the successful completion this project.I would like to thank Prof.Sumithra Sreenath my internal guide for giving hisgraceful assistance and guidance in completion of this report.At last I would thank my parents and all my friends for their support and motivationthroughout the project.Date: 18/08/2011 Anuranjan ThakurPlace: Bangalore Reg. No: 10XQCMA014 M.P BIRLA INSTITUTE OF MANAGEMENT -3-
  4. 4. TABLE OF CONTENTSCHAPTER No. PARTICULARS PAGE NO.1. Introduction 5-16 1.1 Background of the study 1.2 Industry Profile 1.3 Company Profile 1.4 Vision, Mission and Objectives2. Organization Structure 17-19 2.1 Organization heirarchy 2.2 Management Relationship3. Functional Areas 20-42 3.1 Finance Department 3.2 Marketing Department 3.3 Production Department 3.4 HR Department4. SWOT Analysis 43-74 5.1 Strength and Weakness 5.2 Opportunities and Threats 5.3 Problem Identifications and solutions5. Observations, Suggestions and Conclusion 75-79 6.1 Major findings 6.2 Suggestions 6.3 Conclusion6. Annexure(Financial statements) 80-84 Questionnarie Bibliography M.P BIRLA INSTITUTE OF MANAGEMENT -4-
  6. 6. 1.1 Background of study The Internship Study was conducted in MOTHER DAIRY KOLKATA from 18/07/2011 to 18/08/2011. The need to undergo this Internship Study is to fulfill the requirement of MBA degree course of Bangalore University. The training was undertaken during July and August and the main purpose was to know the practical implication and policies of the company, the theoretical aspects that we study during our course can be observed how exactly they are put into practice. The main objective of undergoing this training is to get the practical exposure of the functional departments of the organization such as Marketing, HR, Finance, Production departments and also to study the inventory, cash and receivable at MOTHER DAIRY KOLKATA. During training I studied how the theoretical knowledge is practically applied in various departments. The internship undergone by me has helped me in getting practical exposure to the various departments of Mother dairy. The report traces the growth and development of the company and gives the selected outline about the services adopted by the company. The report also explains the values and gives a brief about the quality and financial aspects of MOTHER DAIRY KOLKATA. The study is to prepare the report on the internship training and submit the detailed and comprehensive report. This will help the company to assess its strength, weakness to take necessary action to improve the future growth. M.P BIRLA INSTITUTE OF MANAGEMENT -6-
  7. 7. OBJECTIVE OF THE STUDY  To understand the function of each department namely Personal (Human Rsource), Finance, Marketing and Production Department.  To study working of various department of the organization in general.  To identify strength and weakness of the organization.  To identifying the effect of competition.  To understand the concept of “Working capital management”.  To suggest ways for better management and control of working capital at the concern.1.2 INDUSTRY PROFILEFast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) – areproducts that are sold quickly and at relatively low cost. Examples include non-durablegoods such as soft drinks, toiletries, and grocery items. Though the absolute profit madeon FMCG products is relatively small, they generally sell in large quantities, so thecumulative profit on such products can be large.The term FMCG refers to those retail goods that are generally replaced or fully used upover a short period of days, weeks, or months, and within one year. This contrasts withdurable goods or major appliances such as kitchen appliances, which are generallyreplaced over a period of several years. M.P BIRLA INSTITUTE OF MANAGEMENT -7-
  8. 8. FMCGs have a short shelf life, either as a result of high consumer demand or because theproduct deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairyproducts and baked goods – are highly perishable. Other goods such as alcohol, toiletries,pre-packaged foods, soft drinks and cleaning products have high turnover rates.The following are the main characteristics of FMCGs:From the consumers perspective:  Frequent purchase  Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule)  Low priceFrom the marketers angle:  High volumes  Low contribution margins  Extensive distribution networks  High stock turnoverFMCG Products and Categories  Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);  Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish;FMCG IN 2006The performance of the industry was inconsistent in terms of sales and growth for over 4years. The investors in the sector were not gainers at par with other booming sectors. M.P BIRLA INSTITUTE OF MANAGEMENT -8-
  9. 9. After two years of sinking performance of FMCG sector, the year 2005 has witnessed theFMCGs demand growing. Strong growth was seen across various segments in FY06.With the rise in disposable income and the economy in good health, the urban consumerscontinued with their shopping spree.Food and health beverages, branded flour, branded sugarcane, bakery products such asbread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottledwater etc, snack food, chocolates, etc.Frequently replaced electronic products, such as audio equipments, digital cameras,Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc.coming under the category of White Goods in FMCG;FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.60,000 crores. FMCG sector generates 5% of total factory employment in the country andis creating employment for three million people, especially in small towns and ruralIndia.The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sectorin the economy. A well-established distribution network, intense competition between theorganized and unorganized segments characterizes the sector. FMCG Sector is expectedto grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming,female hygiene, and the chocolates and confectionery categories are estimated to be thefastest growing segments, says an HSBC report. Though the sector witnessed a slowergrowth in 2002-2004, it has been able to make a fine recovery since then.For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the lastquarter. An estimated double-digit growth over the next few years shows that the goodtimes are likely to continue.With the presence of 12.2% of the world population in the villages of India, the Indianrural FMCG market is something no one can overlook. Increased focus on farm sectorwill boost rural incomes, hence providing better growth prospects to the FMCG M.P BIRLA INSTITUTE OF MANAGEMENT -9-
  10. 10. companies. Better infrastructure facilities will improve their supply chain. FMCG sectoris also likely to benefit from growing demand in the market. Because of the low percapita consumption for almost all the products in the country, FMCG companies haveimmense possibilities for growth. And if the companies are able to change the mindset ofthe consumers, i.e. if they are able to take the consumers to branded products and offernew generation products, they would be able to generate higher growth in the near future.It is expected that the rural income will rise in 2007, boosting purchasing power in thecountryside. However, the demand in urban areas would be the key growth driver overthe long term. Also, increase in the urban population, along with increase in incomelevels and the availability of new categories, would help the urban areas maintain theirposition in terms of consumption. At present, urban India accounts for 66% of totalFMCG consumption, with rural India accounting for the remaining 34%. However, ruralIndia accounts for more than 40% consumption in major FMCG categories such aspersonal care, fabric care, and hot beverages. In urban areas, home and personal carecategory, including skin care, household care and feminine hygiene, will keep growing atrelatively attractive rates. Within the foods segment, it is estimated that processed foods,bakery, and dairy are long-term growth categories in both rural and urban areas.Indian Competitiveness and Comparison with the World MarketsThe following factors make India a competitive player in FMCG sector:  Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.  Labor cost comparison M.P BIRLA INSTITUTE OF MANAGEMENT - 10 -
  11. 11. Low cost labor gives India a competitive advantage. Indias labor cost is amongst thelowest in the world, after China & Indonesia. Low labor costs give the advantage of lowcost of production. Many MNCs have established their plants in India to outsource fordomestic and export markets. Presence across value chain: Indian companies have their presence across the valuechain of FMCG sector, right from the supply of raw materials to packaged goods in thefood-processing sector. This brings India a more cost competitive advantage. Forexample, Amul supplies milk as well as dairy products like cheese, butter, etc.1.3 Company ProfileMa! The first word uttered by a child. Mother‟s Milk, the infant‟s first food enrichedwith all the vital ingredients-amino acids, vitamins, minerals, for growth and the most M.P BIRLA INSTITUTE OF MANAGEMENT - 11 -
  12. 12. important of them all material love after the mother has provide the bay with nourishmentfor as long as possible…. She takes over. MOTHER DAIRY KOLKATA makes the littleinfant‟s first food an integral part of his/ her diet forever. Hence the „Mother‟ is MotherDAIRY with the focus being the development of the rural milk producers.Mother Dairy Calcutta-a Government of Bengal‟s project, was started under operationFlood II of National DARIY Development Board. It was set up initially to cater to thedemand of the Kolkata‟s urban agglomeration spread over the Kolkata Metropolitan area,approximately 852 square Kms. Mother DAIRY is also reaching out to be consumers ofother districts. The commissioning of the DAIRY started In July 1978 and the firstDistribution Vehicle loaded with milk sachets rolled out of the DAIRY in the morning of8th December 1978. Initially, the management of Mother DAIRY was looked after by theNational DAIRY development Board. On 24th March 1982, then honourable ChiefMinister Shri Jyoti Basu Dedicated MOTHER DAIRY CALUTTA to the rural milkproducers and urban milk consumers of West Bengal.From then onwards, the story of Mother DAIRY is one of success after success. TheGrowth of the DAIRY Continued unabated.Mother DAIRY safeguards the interest of the rural milk producers by encouraging co-operative movement & marketing the surplus milk available from the villagers, thushelping the milk producers to realize their own potential for organized endeavourer &creation of more rural wealth in the shape of „Anand Pattern‟ as profounder by Dr VKurain, the Milk Man of India. In November 1996 the management of Mother DAIRYwas taken over by West Bengal Co-operative Milk Producers Federation Ltd.It is selling Milk and Milk products Like Misti doi, Flavored Yoghurt, Plain Yoghurt,Panner, Cow Ghee, and Packaged Drinking Water. Now it has started diversifying itsactivity by selling the produce of other cooperative, unioins of West Bengal and otherstates as Mother Dairy has a strong Marketing network.In the year 2000, Mother Dairy Kolkata received ISO 9002 certification and in the year M.P BIRLA INSTITUTE OF MANAGEMENT - 12 -
  13. 13. 2001 Mother dairy received HACCP certification. Mother Dairy has also receivedEnvironment Excellence Award(2000-2001). In the year October 2003 Mother dairyKolkata received ISO 9001:2000 and the certification agency is SGS India Pvt Ltd. Arenowned London based organization.Consumer Awareness ProgramOver the last few years these programs have gathered momentum and success, Under thisprograms, school children are invited to the Dairy to give them the first hand experienceof the activities inside dairy to inculcate in them the healthy habit of drinking milkeveryday and to educate them on the importance of ensuring that the milk they drink ispure and has been hygienically processedAwards Given to Mother Dairy Kolkata1987: National Productivity Award2000: ISO Certification2001: HACCP Certification2002: First Environment AwardMOTHER DAIRY KOLKATA HERITAGE & TRADITION  MOTHER DAIRY KOLKATA has first introduced poly pouch in Eastern India in year 1978.  MOTHER DAIRY KOLKATA has first introduced loose milk selling through automatic coin operated booth first in Eastern India in the year 1980.  MOTHER DAIRY KOLKATA has first introduced the highly perishable cultured milk product like misti doi and Yoghurts through pilfer proof cup under sealed condition having 6 days self life under refrigeration breaking the tradition of selling this product through earthen pot. M.P BIRLA INSTITUTE OF MANAGEMENT - 13 -
  14. 14.  MOTHER DAIRY KOLKATA has first introduced cultured milk products in Eastern India in most of the trains especially in Rajdhani Express, Coromondal express, Bombay Mail operation from Howrah and Sealdah.  MOTHER DAIRY KOLKATA has first received the National Productivity award in the Eastern India dairy industry.  MOTHER DAIRY KOLKATA has first accredited the ISO 9001: 2000 Certification in the Eastern India dairy Industry.  MOTHER DAIRY KOLKATA has obtained the HACCP Certification in the Eastern India dairy Industry.  MOTHER DAIRY KOLKATA has first received the Environmental Excellence award in 2000-2001 in the Eastern India dairy industry. MOTHER DAIRY KOLKATA (At a glance)Name : MOTHER DAIRYAddress : P.O – Dankuni Coal Complex Dist- Hooghly, West Bengal Pin No: 712310Date of foundation : 8 th December, 1978.Total Area : 10 HectaresBuild Up Area : 8700 SQM (93612 SQFT)Milk Market share( in West bengal) : 25%Average Annual Turnover : 200 Crore M.P BIRLA INSTITUTE OF MANAGEMENT - 14 -
  15. 15. MOTHER DAIRY KOLKATA (Product information)Own Products : Cow Milk, Toned Milk, Double toned Milk, Full Cream milk, Paneer, Misti Doi, Plain Yoghurt, Flavored Yoghurt, Rosogolla, Rajbhog & Packaged drinking water.Traded product : Ghee, Paneer.Installed capacity (Milk) : 600000 Ltr/day.Average Present Production : 400000 Ltr/day.Installed Capacity (Misti doi & Yoghurt) : 2000 Kg/day.Average Present Production : 2000 Kg/day1.4 MISSION, VISION AND OBJECTIVE OF MOTHER DAIRYKOLKATAMission: To sustain market leadership in the production and marketing of a variety ofliquid milk and milk products with assured quality at an affordable price, covering allmarket segments and to maintain the growth, prosperity and unity of all internal andexternal customers.Vision: With full dedication and team work, MOTHER DAIY KOLKATA shall strive todelight its internal and external customers through quality products and services.Create an environment where stake holders feel happy and system will be eco-friendly.Through innovation, continuous learning and consistent improvement achieve sustainedgrowth and excellence. M.P BIRLA INSTITUTE OF MANAGEMENT - 15 -
  16. 16. POLICY & OBJECTIVE OF MOTHER DAIRY KOLKATAQuality policy  Satisfy our customers with quality products and services.  Achieve and sustain growth and excellence.  Maintain a happy and fulfilling work environment.Environment Policy  Be reactive and conscious about various Environment regulation.  Create and maintain a clean green belt in and around the dairy premises.  Always keep our environment safe, free from pollution and continual sustainable development.Quality Objective  Provide regular and timely supply of milk and milk products at convenient distribution points under clean and hygienic condition for different segments of consumers.  Provide remunerative returns to milk producers and other associations.  Promote innovations, continuous learning and improvement.Social objective  Protect the rural marginal milk producing farmers from exploitation of profit earning middleman.  Help them rear their cattle in hygienic condition there by increasing production of Milk.  Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable price throughout the year, right at their door step. M.P BIRLA INSTITUTE OF MANAGEMENT - 16 -
  19. 19. 2.2 MANAGEMENT RELATIONSHIPDesignation ProfileChairman Minister In charge Animal Resource Development Dept. Govt. of W.BVice chairman Principal Secretary to the Govt. of W.B Animal Resource Development Dept. Govt. of W.BMember Managing Director, WBCMPF Ltd.Member Milk Commissioner Govt. of W.BMember State Director National Dairy Development Board KolkataMember-convener Chief General Manager, Mother Dairy Kolkata. M.P BIRLA INSTITUTE OF MANAGEMENT - 19 -
  22. 22. TOTAL NO OF EMPLOYEES: 18Net Profit for the financial years:Year 2005-06 2006-07 2007-08 2008-09Net profit (49657560) (140443042) 25458292 62428340Graph representing the Net Profit of Organization Net profit 100000000 62428340 50000000 25458292 0 2005-06 2006-07 2007-08 2008-09 -50000000 Net profit -49657560 -100000000 -150000000 -140443042 -200000000From the above the above graph it could be understood that the organization was in lossin the year 2005-06 & 2006-07. In further years the organization started earning profitwhich has been described in the graph. The financial position of the organization is goodif we compare with the expenses. The cost of production is increasing year by year butthe profit is also increasing but not up to that extent. M.P BIRLA INSTITUTE OF MANAGEMENT - 22 -
  23. 23. 3.2 MARKETING DEPARTMENT:Mother Dairy Kolkata was set up to cater milk and milk products to the consumers ofKolkata and its metropolitan areas about 852 sq. Km but subsequently in the year 2000Mother dairy is marketing milk and milk product in the town of Burdwan, Durgapur,Asansol, and in the Year 2002 Mother dairy is marketing milk and milk product atMidnapur, Haldia, Bankura, Arambug, Ranaghut, Krishnanagar, Bangaon, Basirhat,Diamond Harbour,Canning, Raychak etc, through its franchises.Mother Dairy has set up 208 coin operated automatic self dispensing milk vending booths(Mini Dairies) all over Kolkata and its metropolitan areas. It has 385 insulated Tankoutlets and about 385 polypack outlets. Beside this all the reputed hotels, Railways,Airlines and Hospitals take milk and milk products from Mother dairy Kolkata.Like any other agricultural commodity, there are regional and seasonal imbalances in theproduction of milk also. In flush season and in milk surplus areas, when excess milk isavailable, it is converted to Skim Milk Powder (SMP) and Butter Fat and then stored.During the lean seasons and in milk deficit areas, when the availability of fresh milk islow, to augment supply, SMP and Butter Fat are recombined without jeopardizing the M.P BIRLA INSTITUTE OF MANAGEMENT - 23 -
  24. 24. goodness and nutritive value of milk.After chilling, the milk from the silos undergoes clarification, homogenization andpasteurization. Milk is passed through the clarifier at 40 o Celsius so that all extraneousmatters are separated and removed from the milk. oHomogenization is carried out at a temperature of 70 Celsius. It is a process by which fatglobules in the milk, which have a natural size of 8-12 microns are broken down intomuch smaller sizes of less than 2 microns and evenly distributed throughout the milk.This reduces the tendency of fat to separate at and float the surface as a cream layer. Thisprocess also makes the milk more easily digestible.The milk is pasteurized at 80o Celsius to destroy pathogenic bacteria.Finally, the milk is chilled to 4o Celsius and stored. The milk is now ready for travel tothousands of waiting consumers.Just prior to dispatch, the milk is glycol chilled to about 2 o Celsius and eitherautomatically packed in polyethylene pouches or loaded in Mother Dairy‟s fleet ofInsulated road milk tankers to be delivered at the various distribution points.Milk and Milk Products:Mother Dairy‟s Milk is wholesome, Pure, healthy, and nutritious an important food for M.P BIRLA INSTITUTE OF MANAGEMENT - 24 -
  25. 25. pregnant mothers, growing children, adolescents, adults, aged, and patients. It is fortifiedwith Vitamin A, antidote to night blindness. Fresh milk procured from milk producers ispasteurized, clarified, Homogenized, processed, and packed and goes through stringentquality checks.Toned Milk Yoghurt.Cow MilkFull Cream MilkDouble Toned MilkMisti DoiGheePaneerPlain YoghurtRosogolla & RajbhogPackaged WaterPictures of the products Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U DOUBLE TONED MILK Per1000 ml ] Composition Consumer Price [Inclusive all taxes] [%] Milk Fat 1.5 Rs. 21.00/Ltr in Poly Pouch Milk SNF 9.0 Rs. 10.50/Half Ltr in Poly Pouch Nutritional Information [100 ml contains approx.] Added Vit A (I.U) 200 Proteins [g] 3.50 Carbohydrates [g] 4.70 Fat [gm] 1.5 Calcium [mg] 124 Available in : Poly Pouches [ 1/2 lts, 1 lts ] Energy : 46 K calories/100ml. Preparation of Coffee/Tea, preparation of Paneer. As it contains low fat. It is ideal Suitable For : source of nutrition for adults & aged people who are weight conscious. M.P BIRLA INSTITUTE OF MANAGEMENT - 25 -
  26. 26. Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U PerCOW MILK 1000 ml ] Composition Consumer Price [Inclusive all taxes] [%] Milk Fat 3.5 Rs. 24.00/Ltr in Poly Pouch Milk SNF 8.5 Rs. 12.00/Half Ltr in Poly Pouch Nutritional Information [100 ml contains approx.] Added Vit A (I.U) 200 Proteins [g] 3.20 Carbohydrates [g] 4.50 Fat [gm] 3.5 Calcium [mg] 117 Available in : Poly Pouches [ 1/2 lts ] Energy : 62 K calories/100ml. Preparation of different Bengali sweet dishes, ideal for drinking purpose. [As it is Suitable For : rich- in flavored due to moderate fat content] M.P BIRLA INSTITUTE OF MANAGEMENT - 26 -
  27. 27. Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U PerTONED MILK 1000 ml ] Composition Consumer Price [Inclusive all taxes] [%] Milk Fat 3.0 No Pouch selling at Milk SNF 8.5 present only in Loose milk Nutritional Information [100 ml contains Through Mini Dairy/IT/Non- approx.] Refrigerated Booth Added Vit A (I.U) 200 Rs. 21.00/Ltr Loose Proteins [g] 3.20 Rs. 10.50/Half Ltr Loose Carbohydrates [g] 4.50 Fat [gm] 3.0 Calcium [mg] 117 Loose [ Any Qty From Mini Dairy/Insulated Available in : Tank] Energy : 56 K calories/100 ml. Preparation of Coffee/Tea, different Bengali Sweet Dishes, ideal for drinking Suitable For : purpose, also used for preparation of Paneer. [ As it is rich-in flavour due to moderate fat content.]MISHTI DOI Delicious Mishti Doi Composition Consumer Price [Inclusive all taxes] [%] [100 gm contains Rs 10.00/100 gms approx.] Milk Fat 3.8 Milk SNF 13.0 Sugar 18.0 Natural Caramel 0.2 Available in : 100 gms packs through Polysterine Cup Energy : 158 K calories/100gms. Relish the palatable and soothing taste of Mishti Doi. Fortified with Vitamin A. It has excellent nutritional profile and food value. It helps in digestion and keeps ones In a Nutshell system cool. Mother Dairy Mishti Doi is packed and shelled in pilfer proof cups in automatic packaging machine ensuring right quality and quantity. M.P BIRLA INSTITUTE OF MANAGEMENT - 27 -
  28. 28. PLAIN YOGHURT A Traditional Yoghurt Composition Consumer Price [Inclusive all taxes] [%] [100 gm contains Rs 9.00/100 gms approx.] Milk Fat 3.0 Milk SNF 11.0 Available in : 100 gms packs through Polystyrene Cup Energy : 71 K calories/100gms. The secret of longer life of the hill tribes of Bulgaria for centuries was a daily diet of yoghurt. Yoghurt improves appetite, vitality In a Nutshell and vigour, cures intestinal disorder and controls cholesterol besides having numerous other beneficial effects.FLAVORED YOGHURT A Traditional Sweet Yoghurt Composition [%] Consumer Price [Inclusive all taxes] [100 gm contains Rs 10.00/100 gms approx.] Milk Fat 3.0 Milk SNF 11.0 Sugar 13.0 Permitted Synthetic Colors [ Food grade ] Added Flovours Available in : 100 gms packs through Polystyrene Cup Energy : 71 K calories/100gms. Mother Dairy Flavoured Yoghurt is a treat to your taste bud and is available in different delicious flavours like Vanilla, In a Nutshell Pineapple, Green Mango, Chocolate, Strawberry and Pista. It posses all the benefits of plain yoghurt. Flavoured Yoghurt is also fortified with Vitamin A. M.P BIRLA INSTITUTE OF MANAGEMENT - 28 -
  29. 29. PANEER Made from fresh pure milk, vacuum packed for extra fresheness per Composition 100 Consumer Price gms Milk Solid Rs 22.00/100 gms Citric Acid Rs 50.00/250 gms Common Salt Nutritional Information [100 gm contains approx.] Milk Fat [gm] 25 Milk Protein [gm] 25 Water [%] 50 Calcium [mg] 600 Vitamin A [micro] 300 Available in : 100 gms / 250 gms / 1 Kg [against Order ] Energy : 312 K calories/100gms. Direct consumption & for preparation of Suitable For : different delicious dishes.COW GHEE Prepared from fresh Cow Milk having cooked flavour Available in [gms] Consumer Price [Inclusive all taxes] 100 - Rs 30.00 200 - Rs 56.00 Rs 125.00 1Kg--- 500 - Rs.230.00 Energy : 900 K calories/100gms. Direct consumption & for preparation of Suitable For : different delicious dishes. Cow Ghee is the richest source of Milk Fat of all Indian Dairy Products. It contains Fat In a Nutshell soluble Vitamins A, D, E & K that provide energy. Its pleasing flavour, aroma and palatability make it a desirable dietary component as well as valuable cooking Fat. From time immemorial Ghee is considered as a source of nutrient in Indian Diet. M.P BIRLA INSTITUTE OF MANAGEMENT - 29 -
  30. 30. PACKAGED DRINKING WATER ISI Marked Packaged Drinking Water Available in [Ltr] Consumer Price [Inclusive all taxes] 1/2 - Rs 8.00 1 - Rs 12.00 2 - Rs 20.00 5 - Rs 40.00 20 [jar] - Rs 60.00 [jar is returnable, Jar can be retained against *Note Security Deposit ] It is produced using reversed osmosis technology with multiple barrier filtration, ozonisation & In a Nutshell ultra violet treatment under total aseptic environment. It is free from harmful chemical, bacteria & Virus.Sales for the Year ending:Year 2005-06 2006-07 2007-08 2008-09Sales 1833108057 2080224425 2207237525 2298407148 M.P BIRLA INSTITUTE OF MANAGEMENT - 30 -
  31. 31. Graph representing the Sales Sales 2500000000 2298407148 2207237525 2080224425 2000000000 1833108057 1500000000 Sales 1000000000 500000000 0 2005-06 2006-07 2007-08 2008-09From the above Graph and data‟s it could be understood that the sales have increasedevery year which has converted the loss into profit.COMPETITORS  Amul  Metro dairy  Red cow  Others M.P BIRLA INSTITUTE OF MANAGEMENT - 31 -
  32. 32. Despite of being the first in the industry, and having the first mover advantage and thebrand name, the sale has fallen down incredibly due to competitors like Amul ,Metrodairy , Red Cow and others. There is a need to revamp the company and position it allover again in the mind of the consumers. In doing so firstly the grievances of thedistributors and the retailers were required to be solved in order to encourage them forpush sales.The company will be able to understand its strengths, weakness, opportunities andthreats. The survey report submitted by me will assist the company to take right decisionsto increase the turnover and market share.PRICE EFFECTIVE FROM 2009Margin (per Product Distribut Retailer’s MRPltrs) : Sl.No or’s Price Price1 Double Toned Milk 19.65 20.00 21.002 Toned Milk 20.75 21.10 22.003 Full Cream Milk 25.45 25.80 27.004 Cow Milk 22.65 23.00 24.005 Skimmed Milk 17.65 18.00 19.00Margin (per Product Distributor’s Retailer’s MRP100 gms) : Price PriceSl.No1 Mishti Doi 6.50 7.20 8.002 Plain Yoghurt 6.50 7.20 8.003 Favoured 6.50 7.20 8.00 Yoghurt a) Vanilla b) Green Mango c) Chocolate d) Pineapple4 Paneer 17.50 18.50 20.00 M.P BIRLA INSTITUTE OF MANAGEMENT - 32 -
  33. 33. CURRENT SCENARIOMother dairy has a market share of around 33 % in the branded sector in West Bengalwhere it sells 3.4 lakh litres of milk daily on an average and undertakes its marketingoperations through around 51 distributors and around 600 retailers in Kolkata itself. It hasa huge advantage over its competitors as it is the only player when it comes to sale ofloose milk through token. Before the entrance of competitors like Amul ,sale of loosemilk through Mother Dairy booths was around 35 % of the entire sale in branded segment, when Mother dairy was the only player in the market. However since last five years thesale is continuously declining and presently it is just 8-9 %. M.P BIRLA INSTITUTE OF MANAGEMENT - 33 -
  34. 34. Advertisement and Promotion by Mother DairyOn the marketing front, Mother Dairy says its trying to take its product campaigns andCommunications to a higher platform. For instance, in the case of milk, the campaigns donot talk about the obvious benefits - milk is good for health, it has calcium and so on - butrather it targets children and are created around ideas such as "The country needs you,grow faster".As far as products such as butter, cheese and ice creams go, the campaigns have beencreated around "taste". For butter again, the focus is on children. "Amul butter may beselling the most, but the advertising and promotions are almost always targeted at adults,"points out an analyst citing Amuls popular Utterly-Butterly campaigns.Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed bykids, the company wants them to sit up and take notice of its butter. Makkhan Singh, asturdy jovial cow (a cartoon character) has been made its brand ambassador.While Mother Dairy has been carrying out school programmes - games and activities –involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai andKolkata as well. It also runs a gaming website on the character to attract children. Equity M.P BIRLA INSTITUTE OF MANAGEMENT - 34 -
  35. 35. and empathy are being built for the brand, the values for which it stands, and the variousother Mother Dairy products, which draw their core values from Mother Dairy milk.Its cheese for children again. A couple of months ago, Mother Dairy carried out a retailactivity:"Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invitedfor a photo op - dressed as superheros - through Polaroid cameras; and the framedphotograph was presented to them. The activity was carried out in about 150 outlets inDelhi and Mumbai, with about 20,000-25,000 snaps being taken.It claims that the exercise resulted in better ties with retailers. A positive response madeMother Dairy to repeat it in Kolkata as well. Clearly, Mother Dairy has aggressive plans.But, strong regional brands and other co-operatives will continue to give it toughcompetition. It will not be a cakewalk anymore. M.P BIRLA INSTITUTE OF MANAGEMENT - 35 -
  36. 36. 3.3 PRODUCTION DEPARTMENT GERNERAL MANAGER SR MANAGER (MFG.) DY MGR (PROD&MFG.) DY MGR (ULITIES) ASSTT.MGR (SAFETY, HEALTHY & ENVIROMENT) SR OFFICER(Thermal) SR OFFICER (ELECT.) SR OFFICER (AUTOMATION) │ │ │ │ PRODUCT UNIT CO-ORDINATOR │ │ │ SHOP FLOOR ENGINEERS & WORKERSPROCESS OF MILK PRODUCTION1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairyco-operatives and producer institutions. Milk is received from farmer cooperativesthrough insulated tankers at 2°C temperature in order to retain its freshness. M.P BIRLA INSTITUTE OF MANAGEMENT - 36 -
  37. 37. 2) Milk distribution: -Tankers in the morning and in the evening bring in milk from theregional collection centers. After collection the same tankers are utilized for the deliveryof the processed milk to the distributors. Mother Dairy has about 51 Distributors in thecity of Kolkata. Each of these LAD‟s(Local area distributor ) place their demand byraising an invoice one day in advance. The demand is also calculated using the„Calendar‟ Scheme, in this depending on the pre-calculated seasonal demands the outletsplace their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers areprovided with a buffer stock of 500 litres each day so that they can be mobilized to caterthe demand in an area. To coordinate its operations all the tankers are equipped withHAM radios.Distribution Channels:a) Token Distribution: Also, termed as “Lohe ki bhains” (metal buffalo), is an automatedmilk vending machine.b) Distributors: The packaged milk is distributed via the distributor network throughoutthe city. M.P BIRLA INSTITUTE OF MANAGEMENT - 37 -
  39. 39. ProcessingAt mother dairy, the processing of milk is done by process automation whereby state ofthe art microprocessor technology is adopted to integrate and completely automate allfunctions of the milk processing areas to ensure high product quality/reliability andsafety. There are four ways of milk processing –Firstly, Clarification, in which milk is spun at very high speed, removing all dust particlesthat are invisible to the naked eye.Secondly, Standardisation which help to maintain uniformity by raising or lowering itsfat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk toconsumers as per prescribed PFA norms.Thirdly, it is Homogenization which improves palatability of milk andFinally, Pasteurization, which kills all pathogenic bacteria present in the milk and thusmaking it safe for consumption.Quality ControlStringent quality control methodologies are employed in Mother Dairy.  The milk is tested for adulterations and quality at the time of collection from the farmers.  The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 4°C and is subjected to 15 product and quality checks.  The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 4°C always.  Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again.  The temperature of milk in the delivery trucks is always maintained less than 4°C.  All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution. M.P BIRLA INSTITUTE OF MANAGEMENT - 39 -
  40. 40.  Since all the employed processing procedures are automated, no contamination by human hands takes place.  To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.  Out of the total production about 9% goes directly to the institutions ,23% is the loose token milk and the rest is distributed through LAD‟s.Recently State Govt. faces crisis about the production of Mother Dairy. Though there isthe demand of this branded dairy product, the production declines it rate. The cost ofproduction is increases day by day but State Govt. oppose to increasing of price rate.Thus for prevent their loss they have to decrease their production.To make a decisionAnimal-Wealth Minister Mr. Nure Alam Chowdhury will meet with CM very soon. In1996 State Govt. took the authority of Mother Dairy from National Dairy DevelopmentBoard. The daily demand of milk in this State is 11 lakhs litre; Mother Dairy had produce3, 80,000 litres till some days ago but now they are producing 3, 50,000 lire. Thedecreasing in production brings other problems like machinery and working problems.Where the other Pvt. Dairy product increases their selling price, Mother Dairy can‟t dothis. As because they could not increase their selling price, they have to decrease theirproduction volume. We hope for the right step from our Govt. to handle this problem anda fruitful solution by which this Brand group gets their profit and common people alsoget their needy product at reasonable cost. M.P BIRLA INSTITUTE OF MANAGEMENT - 40 -
  41. 41. 3.4 HR DEPARTMENT HR HEAD MANAGER D Y MANAGER OFFICERS SUPERVISORSTotal no of Employees: 18HR Functions & ResponsibilitiesThe function of Hr department starts with recruitment and ends with retirement.  Manpower planning  Recruitment & placement  Wages & Salary  Welfare activities M.P BIRLA INSTITUTE OF MANAGEMENT - 41 -
  42. 42.  Safety of the employees Career development Training & development Maintaining Industrial relation Time office management Disciplinary Process M.P BIRLA INSTITUTE OF MANAGEMENT - 42 -
  44. 44. 4.1STRENGTH  Low operational costs  Presence of established distribution networks in both urban and rural areas  Presence of well-known brands in FMCG sector  Financial position is very sound.  The company is equipped with wide range of products.  It has good research and development facilities.  Good infrastructural facilities.WEAKNESS  Low exports levels  "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.  Unions  Lack of work culture in terms of punctuality and meaningful discussions.  Lack of support from the top management.  Lack of quick decision ability.  Dependency on Govt. for taking decision. M.P BIRLA INSTITUTE OF MANAGEMENT - 44 -
  45. 45. 4.2OPPORTUNITIES  Untapped rural market  Rising income levels, i.e. increase in purchasing power of consumers  Large domestic market- a population of over one billion.  Export potential  High consumer goods spending  Scope of increasing the sales by the mean of advertisement and promotion.  Huge availability of Funds and Reserves.THREATS  Mother dairy has got stiff competition from competitors.  Major threats from political condition of the nation and changing of rules and regulation.  Changes in economic condition, Inflation and Deflation. M.P BIRLA INSTITUTE OF MANAGEMENT - 45 -
  46. 46. 4.3 Problem Identification and Solution in a specific area: RESEARCH REPORT ON: Consumers information seeking behavior while Purchasing Milk in KolkataObjectivePrimary: To analyze the factors which influence the purchase of Milk and milk product inKolkata.HYPOTHESIS :Null Hypothesis (H0): The Factors does not influence the buying behavior of consumer whilepurchasing Milk and Milk product.Alternative Hypothesis (HA): The Factors does influence the buying behavior of consumerwhile purchasing Milk and Milk product. RESEARCH OBJECTIVE:  To identify the issues related to Mother Diary retailers.  To study Mother Dairy strategy vis-à-vis competitors.  To study the distribution channel in the retail chain of Mother Diary.  To cover up SOME PARTS OF Howrah district and get the retailer‟s as well as consumer‟s feedback.  To keep track of the daily sales of the retailer in the above mentioned region. M.P BIRLA INSTITUTE OF MANAGEMENT - 46 -
  47. 47.  To add up new out retailers in this area.  To find out short term problem in the region that can be sorted out. Let‟s see how can these task be managed- Suggesting viable recommendations to the area, the concept of consumption may be understood to have either of two related meanings, both involving the notion of an object‟s “disappearance” or transformation. In economic terms, consumption of an object may be considered to have occurred when it has been removed from the market by some exchange mechanism, such as when a transfer takes place between a seller and a buyer of a good. The more commonly understood meaning of consumption is it physical meaning having been taken. It is this latter meaning which applies in this characterization methodology. Some other important definitions are: Dairy Product: A dairy product shall be defined as milk or any product derived from milk. With in the general class of dairy foods, different products will be differentiated by their physical composition or from, or where the market or consumer differentiates them. Consumption pattern: The combination of products consumed the frequency of their consumption and the quantities consumed. Mode of consumption: The manner in which the dairy product is consumed of used, e.g. milk may be taken directly or in tea and either cold or warm; butter may be used as a cooking fat, an edible spread, or a cosmetic. Regulated Market : A market in which government exercises control, forinstance through price regulation, mandatory standards of hygiene, location-specificmarketing licenses, etc. Unregulated Market : is here defined as one which effectively operates beyondthe control of governments and is for all practical purposes “self-monitored”, such as indairy markets dominated by “over-the-fence” sales to neighbors.Strategies Adopted  Directly questioned retailers and distributors.  Interviewed consumer and asked about there test and preference.  Checked on the commotion provided by competitors. M.P BIRLA INSTITUTE OF MANAGEMENT - 47 -
  48. 48.  Personally visited prospective retailers .  Made analyses of the competitors product. METHOD IN SHORTMethodologically, marketing research uses the following types of research designs:Based on questioning:  Qualitative marketing research: Generally used for exploratory purposes-small number of respondents- not generalizable to the whole population- statistical significance and confidence not calculated- examples include focus groups, in- depth interviews, and projective techniques.  Quantitative marketing research: Generally used to draw conclusions- tests a specific hypothesis- uses random sampling techniques so as to infer from the sample to the population- involves a large number of respondents- examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis. Bases on observations:  Ethnographic studies: By nature qualitative, the researcher observes the social phenomena in their natural setting- observations can occur cross sectionally( observation made at one time) or longitudinally (observations occur over several time period)-examples include product- use analysis and computer cookie traces. See also ethnography and observational techniques.  Experimental techniques: By nature quantitative, the researcher creates a quasi- artificial environment to try to control spurious factors, then manipulates at least one of the variables- examples include purchase laboratories and test markets.Researchers often use more than one research design. They may start with secondaryresearch to get background information, then conduct a focus group( qualitative researchdesign) to explore the issues. Finally they might do a full nation-wide survey(quantitative research design) in order to devise specific recommendations for the client. M.P BIRLA INSTITUTE OF MANAGEMENT - 48 -
  49. 49. PRIMARY DATAPrimary data was directly collected from retailers and consumers though a questionnaire. SECONDARY DATAThe secondary source of all the daily sales record of all distributers. CONSUMER BEHAVIORConsumer behavior is the study of when, why, how, and where people do or do not buyproduct. It blends elements from psychology, sociology, social anthropology. It attemptsto understand the buyer decision making process, both individually and in groups. Itsstudies characteristics of individual consumers such as demographics and behavioralvariables in an attempt to understand people‟s want. It also tries to asses influences on theconsumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior, with the customerplaying the three distinct rolls of users, payer and buyer. Relationship marketing is aninfluential asset for customer behavior analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the reaffirmation of the importanceof the customer or buyer. A greater importance is also placed on consumer retention,customer relationship management, personalization, customization and one-to-onemarketing. Social functions can be categorized into social choice and welfare function.Each method for vote counting is assumed as a social function but if Arrow‟s possibilitytheorem is used for a social function, social welfare function is achieved. Somespecifications of the social functions are decisiveness, neutrality, anonymity,monotonicity, unanimity, homogeneity and weak and strong pare to optimality. No socialchoice function meets these requirements in an ordinal scale simultaneously. The mostimportant characteristics of social functions are identification so the interactive effect ofalternatives and creating a logical relation with the ranks. Marketing provides services inorder to satisfy customers. With that in min, the productive system is considered from itsbeginning at the production level, to the end of the cycle. Keeping all these things in mind I have concentrated over what the dealers , retailers andcustomers have said. M.P BIRLA INSTITUTE OF MANAGEMENT - 49 -
  50. 50. DATA ANALYSIS AND INTERPRETATIONFor Data collection, some points have been focused from the people with whom thematters were discussed. I have interpreted these points in graphical presentation andmade some analysis over the Data collected. These are as follows-A. Satisfaction Level;1) Poor- 48%2) Average- 38%3) Good- 10%4) Very Good-3%5) Excellent- 1% M.P BIRLA INSTITUTE OF MANAGEMENT - 50 -
  51. 51. Analysis : According to the graph , the satisfaction level of user of Mother Dairy Milk isnot so much hopeful for the company . It shows a decreasing type of satisfactory level forthis kind of feedback company should be concerned about their quality control , supplyand distribution channel , dealer and retailers demand etc. to hold their market becausecustomer satisfaction is the only way to sustain market status .B. Satisfaction level with their regularity maintained in supply – 1. Pour – 15% 2. Average- 60% 3. Good- 20% 4. Very good- 3% 5. Excellent- 2% M.P BIRLA INSTITUTE OF MANAGEMENT - 51 -
  52. 52. Analysis : In case of supply, mother dairy has done a good job in areas nearbyproduction plant. But in far distance the supply chain though regular still dealers andretailers are not to much happy because the source distributor is not able to meetemergency demand and sometimes regular supply is also interrupted due to randomreasons.C. Inspection Regularity and Response Satisfaction – 1. No visit- 2% 2. Rarely visited-10% 3. Average Visit- 45% 4. Regular Visit- 30% 5. Regular visit and quick action- 13% M.P BIRLA INSTITUTE OF MANAGEMENT - 52 -
  53. 53. Analysis: Inspection from Mother Diary is satisfactory near the Kolkata region and afterwards in between places away from plant the inspection is not too much regular and insome cases its rare and the response to the problem is not also satisfactory. The quickresponse to solve the problem overall is not regular, so the problems of dealers persist. Inspection from problem solving unit is a big demand and its points out the rootcause of dissatisfaction. M.P BIRLA INSTITUTE OF MANAGEMENT - 53 -
  54. 54. D. Satisfaction with the commission rate- 1. Not at all satisfied- 35% 2. Just satisfied- 50% 3. Satisfied- 12% 4. Happy with commission-3%Analysis: Commission is a big deal for any kind of fast moving goods sale. In everysteps of chain, dealers or retailers are heavily concerned about this. According to ourresearch most of the people related to it, are deeply irritated with the marginalcommission rate of the milk products of mother Dairy in comparison to other companiesin the market like Amul, Metro etc. They keep a big margin. The yearly offer for the endsupplier are lesser than the other companies. In some cases it is near about absent. So olddealers and suppliers due to brand loyalty try to keep themselves happy with less M.P BIRLA INSTITUTE OF MANAGEMENT - 54 -
  55. 55. commission as they have big market. But new users are not at all happy with that. Thelinemen deserve and thus expects yearly bonus and other advantages, which are notpossible for the dealers to meet up their demand as their own margin is very less.E. Demand of Products other than Milk –1. Curd – 45%2. Ice cream – 20%3. Water – 10%4. Butter – 15%5. Ghee – 10% M.P BIRLA INSTITUTE OF MANAGEMENT - 55 -
  56. 56. Analysis: Market demands milk of course, but in the Nadia and some areas of 24pgs (N) district milk is the only supply from Mother Dairy, but the market does havedifferent other products apart from milk too. Other companies re aware of that and theyare trying to capture the side market. So if company doesn‟t consider this demand theywill lose a good market of these products. Calcutta Mother Dairy is supplying milk aswell as other products in Kolkata region but not concerned about this in the areas where Ihave conducted my project.F. Percentage of customer loss in 2010 due to competition in comparison with 2009(information from 5 dealers)-1. 5% - 20% ~ 5%2. 20% - 35% ~ 40%3. 35% - 50% ~ 30%4. 50% – 65% ~ 15%5. More than 65% ~ 10% M.P BIRLA INSTITUTE OF MANAGEMENT - 56 -
  57. 57. Analysis: It‟s clear from the survey that during last one year, due to highscale competition the demand for Mother Dairy milk has been reduced. There are manyreasons for that which have been stated in the other analysis and afterwards in the maincompact report. For this, customers have diverted their choice to other brands. Most ofthe dealers have lost customer in minimum 20% - 35% range. Some serious loss ofmarket have been reported even in nearby area of the distribution source. More than 65%customer loss is also there. Below, the reduction has been shown in curve to make thesituation more clear. M.P BIRLA INSTITUTE OF MANAGEMENT - 57 -
  58. 58. G. Longevity of Milk of other companies in comparison with Mother Diary in normaltemperature. 1. 1 to 2 hours 10% 2. 2 to 3 hours 25% 3. 3 to 5 hours 35% 4. 5 to 7 hours 20% 5. More than 7 hours 10% M.P BIRLA INSTITUTE OF MANAGEMENT - 58 -
  59. 59. Analysis: Mother diary milk product longevity is less than other company milkproduct longevity because , Mother Diary milk contains less milk powder than that ofother companies . And this leads to less sustainability than other. If properly notpreserved, milk is spoiled . So, Mother Diary milk longevity time is lesser than other companies milk productlongevity.H. Order frequency change in last one year among 5 dealers-N.B- All readings are in percentage. M.P BIRLA INSTITUTE OF MANAGEMENT - 59 -
  60. 60. Analysis: Order Frequency of no. of crates of milk from retailers have been lessened bythe time of 2009 and 2010 in almost 90% cases. According to the dealers‟ comments, it‟sfound that they have been compelled to cut their order from company short due lessdemand from retailers. It has happened due to entry of some other strong brands. Teastalls are holding a good market of milk. As other brands have some tea friendly milktype, they are now in demand.I. Satisfaction level about clarity of payment and other calculations-1. Poor- 15%2. Average- 30%3. Fair- 45%4. Very Good- 7%5. Happy enough -3% M.P BIRLA INSTITUTE OF MANAGEMENT - 60 -
  61. 61. Analysis: We have got from the research that clarity of payment and clarity of othercalculations have varied from person to persons. With the distributor some dealers havegood terms in relation to this matter and thus have no complaints. But in some cases wehave got some different pictures too which is hampering the business of the company. It‟sa matter of concern. This should be taken care of by the company. J. Dealer meeting reduction. 1. Year 1996-1998->5% 2. Year 1999-2001->10% 3. Year 2002-2004->12% 4. Year 2005-2007->20% 5. Year 2008-2010->53% M.P BIRLA INSTITUTE OF MANAGEMENT - 61 -
  63. 63. ANALYSIS:- From the 2 years frequency stat. data, we can observe that theregular Meeting in between administration & dealers used to take place in regularinterval during 1996 around years, but the rate has been slowly reduced afterwards &during 2008-2010 time period there is a steep rise in reduction rate, which is a bigconcern for dealers & retailers. Their demand is unheard & overlooked by administrativepersonnel.K. According to you which is the main reason for loosing the market share ofmother dairy milk product at Howrah district.1. Quality of product decreasing day by day 45%.2. Competitors (i.e. Amul, Metro Dairy, Red cow etc) improve day by day 5%.3. Low profit margin comparison with competitors 15%.4. No promotional activity comparison with competitors 30%.5. Poor marketing strategy 5%. M.P BIRLA INSTITUTE OF MANAGEMENT - 63 -
  64. 64. L. Do you have your own transport facility to deliver the products?a. Yes 30%.b. No 70%. M.P BIRLA INSTITUTE OF MANAGEMENT - 64 -
  65. 65. ANALYSIS : Clearly it‟s a tough job for the dealers and others in the chain to handle thesmooth flow of distribution if they don‟t have their own vehicle. But in region lacking ofproper transport system in between dealers and distributor is hampering the task ofreaching milk timely and safely. M. Overall market grip of mother dairy along with other companies in that area-a. Mother dairy-20%b. Amul-40%c. Metro dairy-25%d. Red cow-10%e.Others-5% M.P BIRLA INSTITUTE OF MANAGEMENT - 65 -
  67. 67. Chi-Square Test: Factors Observed Expected (O-E)2 (O-E)2 Values(O) Values(E) E Taste 316 297 361 1.215488 Quality 305 297 64 0.215488 Health & Hygiene 321 297 576 1.939394 Packaging 310 297 169 0.569024 Availability 306 297 81 0.272727 Price 286 297 121 0.407407 Density 236 297 3721 12.52862 (O-E)2 17.14815 ELevel of significance: 5%Degree of freedom: 6-1 = 52 tab is 11.143Calculations: 2 = (O-E)2  E = 17.14815 M.P BIRLA INSTITUTE OF MANAGEMENT - 67 -
  68. 68. Conclusion: Since, calculated value of 2=17.14815 is greater than the tabulated value, H0 is rejected. HA is accepted. i.e., The Factors does influence the buying behavior of consumer while purchasing Milk and Milk product.Ranking Method Data Total Ranking Sum of Taste 316 6 Sum of Quality 305 3 Sum of Health &Hygiene 321 7 Sum of Packaging 310 5 Sum of Availability 306 4 Sum of Price 286 2 Sum of Density 236 1 M.P BIRLA INSTITUTE OF MANAGEMENT - 68 -
  69. 69. Total 350 300 250 200 Sum of Taste Sum of Quality 150 Sum of Health Sum of Packaging 100 Sum of Availibilty Sum of Price Sum of Density 50 0 Sum of Taste Sum of Quality Sum of Health Sum of Total Packaging Sum of Availibilty Sum of Price Sum of Density DataAccording to this method we can say that Density influences customers the most followed byPrice, Quality, Availability, Packaging, Taste and lastly Health and Hygiene. M.P BIRLA INSTITUTE OF MANAGEMENT - 69 -
  70. 70. Distribution of respondents based on Usage Milk usage Tea & coffee Drinking Other usage Tea & coffee Grand Total + Drinking NOS. 20 40 5 35 100 M.P BIRLA INSTITUTE OF MANAGEMENT - 70 -
  72. 72. Limitations:  Sample size of 100 is insignificant compared to the large Mother dairy consumers present  Time and money constraint  We are under the assumption that whatever information is given by the respondent is true  This study is based on specific geographical locationsSuggestion:  Mother dairy is the leading brand because of the features provided by it and the competitive pricing. Also it is the most popular brand as per our research.  Density of the milk should be improved  Price as compared to other competitive brands is very low, hence to increase the profit margin the price can be increased.  Availability should be increased because the demand is high.  Taste can be improved.Further research:  Our further research can be done on finding the reasons how the competitors (Amul, Metro) has managed to increase their market share.  We can understand what is lacking in the companies Strategies.CONCLUSION The final outcome of the project is that the parameters which the sale of Mother Dairy are price,density,packaging, quality,taste and flavor, health and hygiene, irregular supply and lasting problem of Milk . Milk market is totally unpredictable market and the organization should be over- cautious of any complaints that come into milk as it includes the sentiments of a mother for her kid and she would not prefer to give anything to her kid which she is not satisfied. Company should not take risk with the quality for sure. The lesson they should remember the only principle of business that the ultimate process of gaining profit is to please the customer with the best effort the company can take. I render this solution to the company. If the problem in system become critical too much critical the perfect and emergency recovery can solve the problem. M.P BIRLA INSTITUTE OF MANAGEMENT - 72 -
  73. 73. SUGGESTIONAs the Research report says-  In Retailer & Dealer‟s view, some of the problems (Thin quality, milk gets spoiled (specially DTM, leakage problem, less replacement facility, supply chain problem, commission problem, pasting & printing problems, Complete absence of advertisement etc.) are mainly important.  They think the marketing officer or marketing executive and the administrative system have become old , the system is not able to cope up with the standard of today‟s other new companies in market like Amul.  They think some thing is suspiciously happening (Product cheating) in the supply chain process.  They feel customer relationship should be better. Neither it will declaim.  The marketing officer or marketing executive don‟t visit for inspection regularly and if visited ,no further results are produced. So they should visit the retailer, dealer, and different booths regularly and take quick steps to solve the problems.  All the retailer, dealer want advertisement & promotion for people awareness where other brands are capturing huge market by promotion. Even new companies like Red Cow has got market demand due to huge promotion. Some dealers advised to provide some scheme or gift for linemen in a year. Other companies have taken this step.  Some of the retailer or dealer wants to be authorization but they don‟t get opportunity. Some of them has huge potentiality to capture market but they are not provided co-operation from the company. Company is still dealing with long supply chain with single line distribution  Some retailer don‟t get much supply but there is market of Mother Dairy. M.P BIRLA INSTITUTE OF MANAGEMENT - 73 -
  74. 74. Insufficient supply.  According to sources it‟s reported that 100% replacement is sent to dealers or retailers but for unknown reason they don‟t get more than 50% of it. So investigation is needed in distribution and supply chain level.  Chalan/voucher/sheet must be provided in hand by the driver and relation in terms of financial as well as behavioural should be fair and clean. It must be ordered if found absent  Direct complaint telephone number should be provided for them and quick response is necessary  All the subsequent notes must be taken care of soon to run in same pace with other Giant companies. I can suggest the company to convert every „NO‟ to „YES‟ and their complaint shouldbe taken care of. This is the gist of the every problem I have got from the people overwhom I have run my research. Solving these, Market will be a bit more to company‟sside. M.P BIRLA INSTITUTE OF MANAGEMENT - 74 -
  76. 76. 5.1 MAJOR FINDINGS  One of the most important finding is that there was lack of skilled people.  The authority to take decision lies in the hand of Government which leads to take lots of time in decision making.  There is no proper utilization of fund.  Scope of expansion is high but the steps are yet to be taken.  Prices of the milk and milk products were low as compared to the competitors.  People are unaware of the product and the services provided by the organization.  Unionization is there in each and every part of West Bengal and Mother Dairy Kolkata is affected by union; which some becomes a threat for the development process and sometime act as remedy for the workers. M.P BIRLA INSTITUTE OF MANAGEMENT - 76 -
  77. 77. 5.2 SUGGESTIONSThe recommendations for the company for further growth and profit are as follows:  Mother dairy should come up with schemes for customers along with retailers as it would be a real boost to the sales and also it will help the company to get back its lost customers  During the survey it was found that many of the retailers were uninterested because they were concerned about the storage of milk. Instead of refrigerators if dry ice boxes can be supplied free of cost, sale would be increased. Also it would be economical and convenient. Later, if the retailer drops out, the box can be collected back.  It was seen that the price of the largest selling variety of Mother dairy which is cow milk is Rs 24/ltr , and the competitor product of Amul is priced at Rs 25/ltr. Thus the price can be increased and thereby margin of the retailers can be increased  Price is not a major concern for the consumers when it comes to a necessity like milk so the price can be increased by a rupee or two and the quality can be improved  Mother Dairy is ISO and HACCP certified. The consumers should be explained about it through advertisements in order to make them aware  If MD can do certain promotions as its competitor AMUL does, then it can attract sales. Promotion with the help of boards, hoardings etc. and also it can advertise in radio  It was found during survey that Mother dairy milk gets spoiled quickly, thus a preservative known as costic which is used by Amul can be applied to produce milk.  In order to improve and maintain quality, total quality management measures should be appointed. It was seen that due to lack of fixed percentage of raw milk mixed, the quality gets hampered and remain unsteady. The extra milk procured should be used for production of milk products which are in short supply and raw M.P BIRLA INSTITUTE OF MANAGEMENT - 77 -
  78. 78. milk should be proportionately used in milk production The smell in milk is because of the usage of skim milk powder beyond a certain point of time, this should be looked into by the manufacturing department and alternative measure should be used The company should try to adopt a relatively short period incentive system in order to make it more friendly and achievable Mother dairy should come up with a scheme for consumers like discount on Mother dairy Ice cream or any other product on supplying empty pouch packets of Mother dairy milk Differential margin should be given by the LADs to the retailers depending upon the location and sales LADs should be directed to supply milk to small retailers according to their preference of time ,sometimes late by 6.30 -7.30 LADs should supply milk through cycle vans and small trolleys also like competitors to areas where trucks cannot go Factory visits helped consumers a lot in understanding the product. LAD should organize the same with the help of MDC officials. Supply of the milk and milk products are very less which results into deviation of customers from MD products to other products. The organization should think of reducing the cost of production which will ultimately lead to in the profit. The company has huge amount as saving in bank which should be used for further investment. The organization should plan to expand its business to other areas of West Bengal. Market research should be conducted frequently which will help the organization to understand the requirement of the consumers. M.P BIRLA INSTITUTE OF MANAGEMENT - 78 -
  79. 79. CONCLUSION It could be said that the organization has huge scope of expansion which can help them to increase there business activities throughout the State. It is a Government organization so it can‟t always work for generating profit only; it has to look at the society also. And this is the only reason the prices of the milk and milk products are not increased. M.P BIRLA INSTITUTE OF MANAGEMENT - 79 -
  80. 80. Annexure (Financial statements) Questionnaire BibliographyM.P BIRLA INSTITUTE OF MANAGEMENT - 80 -
  81. 81. Balance sheet as on 31st March 2009Particulars Schedule 31.03.09 31.03.09 31.03.08 31.03.08Sources of FundReserves & surplus I 586072609 523644268Loans II 107954860 21804039 694027469 738448307Application of fundFixed asset III 65177477 66650252Current Asset, Loan &Adv. 1. Inventories IV 678831846 782504018 2. Sundry Debtors 6583951 6820515 3. Cash & Bank Bal. V 177093871 27445898 4. Other Current VI 15092751 4555950 Assets 5. Loans & Adv. VII 36961569 30208978 914563988 851535359Less: Current Liabilities& Provision 1. Current liabilities VII 257435498 153527028 2. Provision 28278498 26210276 285713996 179737304Net current Asset 628849992 671798055 694027469 738448307 M.P BIRLA INSTITUTE OF MANAGEMENT - 81 -
  82. 82. Profit & loss A/c For the year ending 31st march 2009Particulars 31.03.09 31.03.09 31.03.08 31.03.08INCOMESales 2403797511 2207237525Other income 27016236 38839065(Increase)/Decrease in stock of (258466) 377623finished goods & purchasedstock 2430555281 2248454213EXPENDITURERaw material consumed 744305218 626360406Milk commodities & other 1133679471 1126685043Other purchases 34929333 36179464 1912914022 1789224913Operating Expenses 440370631 403695092Period adjustment 752543 856329Depreciation 7992787 8970945Interest 6096957 18248642 2368126940 2220995921Profit/loss for the year 62428341 25458292Bal. Brought from the previous (182971342) (208429634)yearBal. Carried from the previous (120543001) (182971342)year M.P BIRLA INSTITUTE OF MANAGEMENT - 82 -