Gokulword imp report

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  • 1. A REPORT ONA STUDY ON CUSTOMER LOYALTY OF GOKULMILKBy:Mr. Amit DumbreMr. Anand MehtaMs. Chaitali GhoshMr. Rahul ChavanMr. Shailendra KumarMr. TabrezMBA Program(Class of 2005-2007)ICFAI National CollegeNerul- Navi MumbaiGokul MilkKolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.,
  • 2. Table of Contents 1Objectives…………………………………..3 2Background………………………………...4 3Location…………………………………….5 4Chairmans Statement……………………..6 5Questionnaire………………………………7 6Market share……………………………….8 7Logistics…………………………………….9 8Products…………………………………….9 9Activity……………………………………...13 10Reasons for using milk brands…………...15 11Availability…………………………………15 12Reasons…………………………………….16 13Quantity……………………………………17 14Expectations……………………………….18 15SWOT Analysis…………………………….18 16Awards………………………………………20 17Conclusion………………………………….22
  • 3. Objectives: • To survey market demand and consumption of major traditional dairy products of Gokul Milk, as also their process know-how up gradation. • To identify leading players in Surveyed Areas. • To explore marketing opportunities and investment prospects. • Ensure an assured market for Milk producers throughout the period, as well as good remunerative prices. • Analyze growing need for Milk & Milk products of the consumers in Navi Mumbai & else where. • Study the Co-operative structure of milk producers at the village level. • Imparting training for developing human resource at rural level for effective leadership, Management skills & improvement of services to rural Milk producers.
  • 4. BackgroundThe Kolhapur District Co-operative Milk producers Union Ltd.,Kolhapur was established on 16th March, 1963 under the Co-operative Act. It made a moderate beginning by collecting 700liters of Milk per day from 22 societies. Most success stories havea humble beginning & so have been withKolhapur Zilla Dudh Utpadak Sangh Mayadit.On 16th March 1963 a spark stormed a fire to help the WhiteRevolution revolt heavily, when on this day came into being the“Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd” with theintroduction of its popular brand of Gokul Milk & its wide rangeof Dairy products in to the market.
  • 5. LocationsFollowing series of images will help you locate Kolhapur,where we are located. Simply click the hotspot areas onthe following images.The Kolhapur Production Unit location
  • 6. A word from Chairman,Mr. Vishwasrao Patil...Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur, commonlyknown as Gokul is a farmers Dairy Co-operative organisation dealing withmore than 300,000 rural milk producers. This professionaly managedorganisation is working under able and dynamic leadership of its Chairman,Shri Vishwasrao Patil. Its paid-up share Capital is of Rs.150 million and itsannual turnover is of Rs.3.5 billion.Daily 460,000 liters of milk is handled by the organisation out of which about80% share is of buffalo milk. Its main dairy of 750,000 lpd capacity withpowder plant of 30 M.T. per day capacity is situated at Kolhapur inMaharashtra State. This processing facility is supplemented by a chain ofChilling units located in its operational area.On the merit of its excellent performance, the organisation has won IndianNational Productivity Council Awards for 11 times during last 11 years. It is highly cautious in observing strict quality control norms in its variousoperations. By virtue of this it could be proud recipient of ISO-9002certification in the year 1998.While striving hard to provide utmost satisfaction to its esteemed customersit is also constantly endeavouring to improve the quality of life of its ruralproducer members through execution of unique village developmentprogrammes i.e. Gokul Gram Vikas Yojana.In order to enhance Milk production, the Sangh provides on credit, qualityCattle feed on a no profit no loss basis, as well as free A.H. services &nominally charged A.I. services to the Producer members.All-round achievements of organisation is cumulative outcome of visionarydirections from its members of Board of Directors, Managing Director,dedicated work put up by its able and devoted staff and last but mostimportant one is whole hearted involvement of its member-producers inpolicies of organisation.Vishwasrao Patil
  • 7. Questionnaire for the customers:- 1.Which milk do you prefer? 2.What are the reasons for using that product? 3.For how long are you using that product? 4.How much quantity do you purchase? 5.What is your way of purchase? 6.Have you anytime switched from one company to another? 7.Are you with this roduct? If yes or no why? 8.Which are the expected areas for improving? 9.If there is a price reduction in the compititors product then will you have a shift? 10.Are you satisfied with the service provided by the distributers?
  • 8. Market Share Gokul 18% Others 82% 1According to our survey Market share of Gokul Milk is 18 % in surveyed area. 2Remaining 82% market share are captured by Amul, Warana, Mahanada and others.
  • 9. LogisticsLogistical competency is achieved by coordinating thefollowing: 1 Network Design 2 Information 3 Transportation 4 Inventory 5 WarehousingProductsThe Gokul Dudh Sangh Products are extremely popular in the Local &Distant Markets. Branded as Gokul Products, they include Milk, Shrikhand,Ghee, Table Butter, Skimmed Milk Powder & White Butter.Moreover, Skimmed Milk Powder is IS-Part I & Part II Extra Grade,which is on its way to capture the global market. In 1988, Liquid MilkMarketing was launched in Mumbai by the Dudh Sangh. Sales initially were16,000 Liters/Day. Today Standard, Cow & Tonned Milk together accountfor more than 3.5 Lakh Liters/Day. In 1993 Gokul Milk was launched inPune where the sales are 20,000 Liters/Day. The present sale in local Milkmarket is 70,000 Liters/Day.
  • 10. MilkBrand GokulPacking sizes 1 Liter & 500 m.l. PouchesStandardized MilkFat 6.5 %SNF 9.2 %Rate per Liter Rs. 17/- Local Rs. 18/- for Pune, Kokan & Belgaum Rs. 22/- in Mumbai, Thane & Raigad DistrictCow MilkFat 4.1 %SNF 8.5 %Rate Rs. 16/- Mumbai, Thane & Raigad DistrictTonned MilkFat 3.1 %SNF 8.5 %Rate Rs. 13/- for Mumbai, Thane & Raigad District Rs. 12/- for Pune,Kokan & Belgaum(Toning can be defined as the addition of the constituted skim milk to whole buffalomilk so to reduce the fat to 3%. Its nutritive value is almost similar to that of the freshcows milk. It is a useful source of protein for special conditions such asmalnourishment, pregnancy etc.)ShrikhandBrand GokulVariety Badam Pista Mango, Ilaichi, Nutmeg
  • 11. Fat 7 %Sugar40 %Protein 9%Packing Sizes Rates per K.g.500 gm. Poly Bag Rs. 60/- (only for Ilaichi)500 gm. Cup Rs. 73/-250 gm. Cup Rs. 75/-100 gm. Cup Rs. 85/-GheeBrand GokulPacking sizes 1 K.g Pouch 500 gm. PouchFat 99.7 %Moisture 0.3 %Rates Rs. 130/- per 1 K.gTable ButterBrand GokulPacking sizes 500 gm. Pack 100 gm. PackFat 80.5 %Moisture 16 %Salt 2.5 %Curd 1 %Rates Rs. 115/- per K.g. Rs. 120/- per per K.g.Skimmed Milk PowderBrand Gokul
  • 12. Packing sizes 1 K.g. Poly Bag 500 gm. Poly Bag 100 gm. Poly Bag 25 Kg. in BagFat 1.0 %Moisture 3.5 %Protein 35 %Carbo-hydrates 51 %Minerals 7 %Rates 1 K.g Poly Bag, Rs. 90/- per K.g. 500 gm. Poly Bag, Rs. 90/- per K.g. 100 gm. Poly Bag, Rs. 100/- per K.g.White ButterBrand GokulPacking size 20 K.g. BoxFat 83 %Curd 1 %
  • 13. ActivitiesMilk ProcurementThe rated capacity of the Gokul Dairy is 6.5 Lakh Liters per day. DudhSangh covers 2569 village level dairy co-operatives on 151 milk routes forMilk procurement everyday.Since then, the figure has shot up year after year & today in the year 2000,the average procurement is 4.50 Lakh Liters per day. The ratio of BuffaloMilk to Cow Milk capacity is 78% to 22% respectively. The Buffalo fat is7.21% (SNF 9.4%) & the Cow fat is 4.2% (SNF 8.6%).Preventive & Clinical Veterinary ServicesA team of 47 trained veterinary graduates is recruited by the organization tocater to the Preventive & Clinical Veterinary needs of the milk producers.Each Veterinarian looks after an area of about 20 villages & provides mobileservices round the clock at their doorstep. The Field Veterinarian is providedwith a vehicle.Breeding ServicesIn its operational area 243 Artificial Insemination centers have beenestablished by the Union. All the necessary inputs to these centers such asLN2, semens, sheath, & even Cryogenic containers are made available bythe union. At present more than 700 villages are covered under theseservices.Fodder DevelopmentA team of 5 Agriculture Graduates with the assistance of 5 supervisors arecurrently working under Fodder development section of the Union. Underthis programme seeds of improved fodder varieties are distributed at 25%subsidy cost. Moreover, Manual Chaff Cutter & Power driven Chaff Cutter aredistributed at 25% & 30% subsidy respectively also.Cattle feed PlantIn 1982, Dudh Sangh started production of 100 MTPD Cattle feed under thebrand name Mahalaxmi. To meet the increasing demand for Cattle feed,Dudh Sangh expanded the plant capacity upto 200 MTPD.The production was later switched to by-pass feed to meet more demand at
  • 14. the same production capacity. The sale of Mahalaxmi Cattle feed isonly meant for the village level Dairy Co-operatives that are affiliated to theDudh Sangh.Gokul Gram Vikas YojanaThe Dudh sangh, while keeping a keen eye on the quality of its products,also believes in the development of its Co-operatives. In March 1990 withthe help of NDDB a program known as Gokul Gram Vikas Yojana wasimplemented.This program covered Women’s Education, Member Education, ManagementTraining, Youth Group Discussion, Leadership Development Program &Refresher Courses. Recently it has also included adoption of a Village fordevelopment. Initially more than 250 Villages were bene-ficiaries of thisprogramme.Reasons For Using Milk Brand GOKUL AMUL MAHANAN WARANA OTHERS DAQUALITY v v v v vPRICE High High Low Low LowAVALIBILITY Easy Hard Avg. Easy EasyPACKAGING Good Better Good Good Avg.ADVERTIZEMENT Low High Low High Low
  • 15. Availability 1Door - To – Door 1Retail Outlets 1Malls 1General StoresReasons 1Gokul to Others  Highly conscious  Comparatively costly  Easy availability of competitor products  Less importance to umbrella branding 1Others to Gokul 1. Comparatively high quality 2. Preference during occasions 3. Expanded market demand 4. 2 to the value of 1
  • 16. Quantity Milk consumption 12 12 Gokul 10 Warana 8 Amul 6 Mahananda 4 4 4 4 Others 2 2 2 2 0 0 0 0 0 0 0 <1 1 2 >=3 No. of Liters 1Based on the survey of 72 consumers this graph shows the daily consumption of different milk brands. 2It can be seen that only 12 people have gone for Gokul milk and rest for others which is about 18:82 ratio. 3This graph conveys that there is a huge market for Gokul to capture in Navi Mumbai area.
  • 17. Expectations 1Carton Packaging 2Low fats 3Avoid adulteration 4Increase in retail outlets 5Price effective 6Maintaining high qualitySWOT AnalysisStrengths: 1.High quality 2.Heavy demand during occasion 3.Goodwill 4.Capture of rural market (Maharashtra)Weaknesses: 1.Lack of marketing strategies 2.Less emphasis on R & D 3.Less focus on their other milk products
  • 18. Opportunities: 1.To concentrate on competitors market 2.To increase the awareness of its by products 3.Match the international Standards (in all aspects) 4.To motivate the distributors 5.Have some extra benefit opportunities for the consumersThreats: 1.Competitors aiming at international standards in packaging and quality 2.The adulteration in the consumers market 3.People being diet conscious 4.Easy availability of competitors products
  • 19. AwardsGokul Dudh Sangh, thanks to its high production standards &exemplary performance, has won the National ProductivityCouncil Award 11 times since year 1988-89.Under guidance & assistance from NDDB & FAO, Gokulimplemented a Quality Management System. The Systemcontributed towards improving quality of the plant & its outputnot only up to the National standards but well enough to competeat International levels.Here are some details of the awards that we have won over pastyears..The image on the left denotes 1st Prize for National Productivity Council Award.The 1st Prize was won for the following years • 89-90 • 91-92 • and 93-94 (won for both Dairy & Cattle feed categories)The image on the left denotes 2nd Prize for National Productivity Council Award.The 2nd Prize was won for the following years • 92-93 (won for both Dairy & Cattle feed categories) • 94-95 (won for both Dairy & Cattle feed categories) • and 96-97The image on the left denotes the Merit Certificate award, which was won for thefollowing years • 93-94 • 94-95
  • 20. ConclusionBased on the survey conducted conclusioncan be stated as 1Inspite of maintaining high quality Gokul has not won 100% customer loyalty. 2Gokul Customers may shift to competitors product if the quality offered by them is superior. 3The customers also tend to shift on the basis of easy availability of the competitors product. 4Gokul has a potential of capturing the maximum market if they have a strong marketing strategy.