This document appears to be an internship report submitted by Sudharshan G to Visvesvaraya Technological University in partial fulfillment of the requirements for a Master of Business Administration degree. The report focuses on studying the brand image of Nandini products at KOMUL, Kolar. It begins with an acknowledgment section thanking those who supported and guided the internship. The contents section provides an outline of the report, which includes chapters on the industry and company profile, a theoretical background of the study, data analysis and interpretation, findings, suggestions, and conclusion. Methodologies used include a literature review, collection of primary data through questionnaires, and secondary research. The objectives are to measure Nandini's brand image
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1. INTERNSHIP REPORT ON
A STUDY ON BRAND IMAGE OF NANDINI
PRODUCTS AT KOMUL, KOLAR
By
SUDHARSHAN G
1NZ13MBA44
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mrs. SREOSHI DASGUPTA
Faculty, Dept. of Management
NHCE
Mr. LAKSHMI NARAYANA
DEPUTY MANAGER,
MARKETING
KOMUL, KOLAR
NEW HORIZON COLLEGE OF
ENGINEERING
DEPARTMENT OF MANAGEMENT STUDIES
OUTTER RING ROAD, Bellandur post, near
Marathalli, Bangalore 560103
2013 - 2015
2.
3.
4.
5. ACKNOWLEDGEMENT
I wish to pledge and reward my deep sense of gratitude for all those who have made this
project come alive.
I would like to express my heart-felt gratitude to Dr. MANJUNATHA, Principal, New
Horizon College of Engineering, for his moral support throughout the course of my project.
I would like to express my heart-felt gratitude to Dr. SHEELAN MISRA, Head of
Department of Management Studies, New Horizon College of Engineering for her valuable
suggestions and moral support throughout the course of my project.
I am gratefully indebted to my internal faculty guide, Mrs. SREOSHI DASGUPTA,
Professor, Department of Management Studies, New Horizon College of Engineering, for
encouraging me and for her constant support throughout the course of the project and helping
me complete it successfully.
A special note of gratitude goes to my external guide Mr. LAKSHMI NARAYANA,
Deputy Manager, Marketing Division, KOMUL for providing me an opportunity to work in
this corporate exposure and for his support and guidance in this endeavor.
I wish to thank all the people who have helped me to work on my project. I finally thank my
family and friends for their constant support and guidance.
SUDHARSHAN G
(INZ13MBA44)
6. CONTENTS
Sl.No CHAPTERS Page No
Executive Summary
. Chapter 1
1.1 Introduction about the internship 1
1.2 Title of the study 1
1.3 Need for the study 1
1.4 Statement of the Problem 2
1.5 Objectives of the study 2
1.6 Scope of the study 2
1.7 Methodology adopted 2 – 3
1.8 Literature review 4 – 6
1.9 Limitations of the study 6
Chapter 2
Industry & Company profile
2.1 Industry Profile 7 – 9
2.2 Company Profile 10 – 13
2.2.1 Board of Directors 14
2.2.2 Vision, Mission and Quality Policy 15
2.2.4 Values 16
2.3 Product Profile 16 – 19
2.4 Area of Operation 19 – 20
2.5 Competitors Information 20 – 22
2.6 Infrastructural Facilities 23
2.7 Achievements / Awards 23 – 24
2.8 Work Flow Model 25 – 26
2.9 Mckinsey‟s Model 26
2.10 Structure 27 – 35
2.11 SWOT Analysis 35 – 37
2.12 Future Growth Prospects 37 – 38
2.13 Financial Statements 39 – 40
Chapter 3
3 Theoretical background of the study 41 – 43
Chapter 4
4.1 Data analysis and interpretation 44 – 64
Chapter 5
5.1 Findings 65
5.2 Suggestions 66
5.3 Conclusion 67
Bibliography
Annexure
7. LIST OF TABLES
Table No. Contents Page No
Table – 4.1 Table showing age wise classification Of respondents 44
Table – 4.2 Table Showing Income group of the respondents 45
Table – 4.3 Table Showing No of Respondents using Nandini Products 46
Table – 4.4 Table Showing years of usage of Nandini Milk & Milk
Products
47
Table – 4.5 Table Showing Awareness about Nandini Milk Products 48
Table – 4.6 Table Showing Operating Cost Ratio between 2008 to 201
usage of Nandini Products
49
Table – 4.7 Table Showing places of purchase of Nandini products 50
Table – 4.8 Table Showing Respondents opinion on Nandini products 51
Table – 4.9 Table Showing Respondent complaints about Nandini
Products
53
Table – 4.10 Table Showing type of complaints about Nandini products 54
Table – 4.11 Table Showing No. of Respondents agreeing Nandini
products as best
55
Table – 4.12 Table Showing following aspects are better than Nandini
products
56
Table – 4.13 Table Showing Response on advertising to promote
Nandini products
57
Table – 4.14 Table showing opinion on kind of advertisements 58
Table – 4.15 Table showing opinion on more Customer influential Brand
Ambassadors
59
Table – 4.16 Table showing Opinion on more outlets required to promote
Nandini products
61
Table – 4.17 Table showing respondents influenced by the ads of
Nandini products
63
8. LIST OF GRAPHS
Graph No. Contents Page No
Graph – 4.1 Graph showing age wise classification Of respondents 44
Graph – 4.2 Graph Showing Income group of the respondents 45
Graph – 4.3 Graph Showing No of Respondents using Nandini Products 46
Graph – 4.4 Graph Showing years of usage of Nandini Milk & Milk
Products
47
Graph – 4.5 Graph Showing Awareness about Nandini Milk Products 48
Graph – 4.6 Graph Showing Operating Cost Ratio between 2008 to 201
usage of Nandini Products
49
Graph – 4.7 Graph Showing places of purchase of Nandini products 50
Graph – 4.8 Graph Showing Respondents opinion on Nandini products 52
Graph – 4.9 Graph Showing Respondent complaints about Nandini
Products
53
Graph – 4.10 Graph Showing type of complaints about Nandini products 54
Graph – 4.11 Graph Showing No. of Respondents agreeing Nandini
products as best
55
Graph – 4.12 Graph Showing following aspects are better than Nandini
products
56
Graph – 4.13 Graph Showing Response on advertising to promote
Nandini products
57
Graph – 4.14 Graph showing opinion on kind of advertisements 58
Graph – 4.15 Graph showing opinion on more Customer influential
Brand Ambassadors
60
Graph – 4.16 Graph showing Opinion on more outlets required to
promote Nandini products
62
Graph – 4.17 Graph showing respondents influenced by the ads of
Nandini products
64
9. EXECUTIVE SUMMARY
KOMUL is one of the member milk unions among 13 unions in Karnataka state and it
is functioning at middle level between the Dairy Co – operative societies (DCS) member and
Karnataka Milk Federation (KMF) where the milk procurement, pasteurization, processing
and marketing is taking place.
It was a great experience doing the internship on “A study on Brand Image of
Nandini products at KOMUL, Kolar”. During the study I tried my best to know the various
departments of the company, from production to marketing of milk. In the first two chapters
of my study i.e. Organizational study I found that Marketing department plays a key role in
the company.
The methodology of this study was collection of data through structured questionnaire
and personal interview with consumers in various areas of Kolar district. The sample size was
100 at simple random sampling method. The evaluation of collected data is taken place. Most
of the people have a good opinion about the Brand Image of Nandini products.
In this report I tried to know the Brand Image of Nandini Products which may help
the marketing department of the company as well as to the company as a whole. The study is
focused on how exactly the respondents perceived the brand image of Nandini Products.
This study tells that more advertisements are needed with the help of well-known
Brand Ambassadors which will play a major role in increasing the brand image of the
products and also more outlets are required to build the image of the product.
It can be concluded that Nandini is one such brand which has entered the daily life of
the customers. KOMUL is one such organization where, it is striving hard for building a
Strong Brand Image. This project report at the end gives some suggestions, if adopted it can
lead to much higher developments in sales.
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CHAPTER – 1
INTRODUCTION TO INTERNSHIP
1.1: INTRODUCTION TO INTERNSHIP:
An internship is a learning situation where the student has the opportunity to gain
practical experience .when placed in this situation students expand their concept of different
organizational structures and different working relationship within the work place. In order to
obtain academic credit for this experience the intern is required to complete an internship
report as described in below
The intern is expected to provide information on the organization in which he or she
worked, descriptions of specific work completed, and specific relevant to the assigned task
the report also provides information on our communication skills and should indicate critical
thinking skills since a major part of our experience should be related to analysis and
interpretation of provided data that should be demonstrated in our report.
Responsibilities during internship:
To consult with the faculty advisor
To comply with all requirements and responsibilities established for intern, to
maintain dress and grooming appropriate to the assigned job responsibility
To provide appropriate reports and papers each week ,the students is required to
submit a reflection paper that provides their perception of work week
1.2: TITLE OF THE STUDY:
The title chosen for the study is “A study on Brand Image of Nandini Products at KOMUL,
Kolar”.
1.3: NEED FOR STUDY:
To study the Brand Image of Nandini Products and understand their current position in
market.
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1.4: STATEMEBT OF PROBLEM:
The topic “A study on Brand Image of Nandini products at KOMUL, Kolar” is taken
to study Nandini brand‟s perception by consumers and also to measure the brand image of
Nandini products. This project is taken in order to know where the Nandini products stand in
comparison with their competitors.
1.5: OBJECTIVES OF THE STUDY:
Primary Objectives:
To measure brand image of Nandini Products at Kolar district
Secondary Objectives:
To know customers awareness level about Nandini products.
To rate products of Nandini on their awareness level.
To compare the Nandini products reach with other Brand‟s products.
To measure the impact of Advertisements of Nandini products.
1.6: SCOPE OF THE STUDY:
The study is limited to Kolar district only. But this project covers a wide range of
aspects in terms of customer awareness towards Nandini products. The study is also intended
to know the buyers intension of buying Nandini products in and around Kolar district.
1.7: METHODOLOGY ADOPTED:
1.7.1: Research Methodology:
Sampling and data analysis play a vital role in the research project with prescribed
plan and suitable sample size. The kind of sample taken for this study report is simple
random sampling.
1.7.2: Sampling Population:
Consumers of Nandini products
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1.7.3: Sample Size:
100 Respondents
1.7.4: Sampling Technique:
Simple Random sampling technique
1.7.5: Area of study:
The study was conducted in parts of Kolar district. The information necessary for this
was collected by primary and secondary sources.
1.7.6: The sources are as follows:
Primary Data:
It is based on the original source which a researcher directly collects from the
respondents by administering questionnaires and by interview method.
Secondary Data:
It is that data, which is already been produced by someone else. Here secondary data
is collected from various sources such as internet and journals.
Primary source:
Questionnaire
Secondary source:
Internet
Journals
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1.8: LITERATURE REVIEW:
Article – 1
Hur, Yoonkyung (Katie) Adler, Howard (2011) conducted study to examine how
employees perceive restaurant brand image and the factors that affect those perceptions. An
extensive review of the literature indicated a need for a better understanding of this area,
which is related to both employee training and job satisfaction, and how it affects the
restaurants brand image. Using survey data collected from employees in casual – dining chain
restaurants, the study investigated employee attitudes toward the restaurant brand image,
employee‟s perceptions of their job satisfaction and employee training and demographic
characteristics. Regression analysis results showed that employees job satisfaction, overall all
attitude on the value of employees training, and working conditions were significant
contributors for building positive brand image for employees in casual – dining restaurants.
In addition, one-way analysis of variance results indicated that differences in gender and
educational level for employees had a significant impact on employees‟ attitudes toward
brand image.
Article – 2
Achouri, Mohamed Ali Bouslama, Neji, (2010), this research belongs to the field of
the analysis of the consequences of congruence between brand personality and self – image.
The consequences taken into account in this study are consumer‟s satisfaction and loyalty.
We will present a literature review on the study of impact of the congruence between brand
personality and self – image on the four dependent variables considered in this research:
Satisfaction, attitude, preferences and behavioral intensions.
Article – 3
Dalli et al (2006) examined that there has been a recent increase in consumer research
on the topic of brand dislike: it can be defined as the negative judgment expressed by the
consumer and/or implied in the choice not to buy. The sparse literature in this field is
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fragmented into different streams of research that will be reviewed in this paper: a) consumer
criticism and resistance b) dislike as a means of communicating and constructing self –image,
and c) consumer/brand relationship. After the literature 2 review, the method and results from
fieldwork will be presented. The data coverage towards a unitary and consistent framework,
in which various levels and factors cab be interpreted in the light of the theoretical
perspective outlined above.
Article – 4
Chen and Yu-Shan (2010), article proposed four novels constructs – green brand
image, green satisfaction, green trust, and green brand equity, and explored the positive
relationships between green brand equity and its three drivers – green brand image, green
satisfaction, and green trust. The object of this research study was information and electronics
products in Taiwan. This research employed and empirical study by use of the questionnaire
survey method. The questionnaires were randomly mailed to consumers who had the
experience of purchasing information and electronics products. The results showed that green
brand image, green satisfaction, and green trust are positively related to green brand equity.
Furthermore, the positive relationship between brand image and green brand equity is
partially mediated by green satisfaction and green trust. Hence, investing on resources to
increase green brand image, green satisfaction, and green trust is helpful to enhance green
brand equity.
Article – 5
Kremer et al, (2012) highlight the role store brands can play in retail branding. Does
an image transfer take place between store brands and the retailer brand? To address this
issue, the authors propose to identify and test the dimensions of image transfer from the store
brand to the retailer brand. Design/methodology/approach – A qualitative study of 138
consumers helped to complete the attributes of store brand image and retailer brand image
identified in the literature. A total of 322 customers of three major French retailers responded
to a questionnaire. The data collected were tested in a structural equation model. Findings –
results indicate that store brands have a positive impact on the retailer image. The price image
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of the store brand is positively related to the retailer price image. The price image of the store
brand is positively related to the retailer price image. The values that customers associated
with store brands improve the retailer brand image in terms of its values. Research
limitations/ implications – store brands are considered as a whole, without distinction
between product categories. The paper focuses on standard store brands only, excluding
“premium” store brands. Practical implications – Retailers can find a rationale for investing
in their store brand range in order to differentiate themselves from their competitors.
Managers should ensure that their store brands image is seen as congruent with their own
retailer brand image. In particular, more attention should be paid to the values reflected by
the store brands and the store brands‟ price image. Originality/value – The results indicate
that store brands not only benefit from strength of the retailer brand, but they also contribute,
in reciprocal way, to the improvement of the retailer image.
1.9: LIMITATIONS OF STUDY:
The study was restricted to Kolar district only.
The data given by the respondents were limited to the consumer‟s attitudes,
perception, knowledge, feeling and awareness.
Analysis of schedule is going to be based on the assumption that the respondents give
correct information.
The study is time bound.
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CHAPTER 2
INDUSTRY AND COMPANY PROFILE
2.1: INDUSTRY PROFILE
Introduction – Dairy Industry
Dairy industry is an important industry in India. The country is the world‟s largest
milk producer, accounting for more than 13% of the world‟s total milk production. It is the
world‟s largest consumer of dairy products, consuming almost 100 percent of its own milk
production. Dairy products are a major source of cheap and nutritious food to millions of
people in India. It is the only acceptable source of animal protein for large vegetarian
segment in Indian population particularly among landless, small and marginal farmers and
women. Dairying has been considered as one of the activities aimed at alleviating the poverty
and unemployment especially in the rural areas where it is rain – fed and drought – prone
region.
History of Dairy Industry:
The development of Indian dairy industry took its shape after the white revolution.
The white revolution has increased the milk production from 17 million tons (1950-1951) to
120 million tons (2009 -2010)
Dr. Varghese Kurien engineered the white revolution in India. He was the chairman
of the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and his name was
synonymous with the Amul brand. Operation Flood (white revolution), was done in 3 phases.
Operation Flood:
Operation Flood has helped farmers, direct their own development, placing control of
the resources they create in their own hands. A „National Milk Grid‟, bridges milk producers
throughout India with consumers in over 700 towns and cities, reducing seasonal and regional
price variations while ensuring that the producer gets a major share of the price consumers
pay.
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The bedrock of Operation Flood has been village milk producer‟s cooperatives, which
procure milk and providers inputs and services, making modern management and technology
available to members. Operation Flood‟s objectives included:
Increase milk production ( a flood of milk )
Augment rural incomes
Fair prices for consumers
The market of milk industry in India:
The beginning of organized milk handling was made in India with the establishment of
the “Military Dairy Farms” (oldest in Allahabad. 1889), the salient features of the market of
milk industry so far have been:
Long distance refrigerator rail-transport of milk from AMUL to Mumbai since 1945.
Handling of milk in co-operative Milk Union (oldest: Allahabad, 1913) established
all over the country on a small scale in the early stages.
Pasteurization and bottling on a large scale for organized distribution was started at
Aarey (1950), Worly (1961), Calcutta (Haringhata1959), Delhi (1959), Chennai
(1963), etc.
Establishment of milk plant under the five-year plan for dairy development all over
India. These were taken up with the dual object of increasing the national level of
milk consumption and ensuring better return to the primary milk producer. Their
main aim was to produce more, better and cheaper milk.
Evolution of Karnataka Milk Federation
Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 milk
unions in the state and thus forming the state level apex organization. As a co-operative apex
body of the State of Karnataka, it represents dairy farmer‟s organization and also implements
dairy development activities to achieve the following objectives:
To build village level institutions in co-operative sectors to manage the dairy
activities.
To ensure provision of milk production inputs, processing facilities and dissemination
of know-how.
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Provides assured and remunerative market for the milk produced by the farmer
members.
To facilitate rural development by providing opportunities for self-employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for steady income.
Provide quality milk to urban consumers.
List of Co-operative Milk Producers under Karnataka Milk Federation
Kolar – Chikkaballapur Co-operative Milk Union Limited (KOMUL)
Bangalore Milk Union
Mandya Milk Union
Mysore Milk Union
Hassan Milk Union
Belgaum Milk Union
Shimoga Milk Union
Tumkur Milk Union
Gulbarga Milk Union
Dharwar Milk union
D K Milk Union
Bijapur Milk Union
Bellary Milk Union
Bangalore Dairy, a joint venture of UNICEF, Government of India and Government of
Karnataka was dedicated to the people of Karnataka on 23rd
January 1965 by then Honorable
Prime Minister Late Shri LalBahadur Shastri Ji over an area of 52 acres; the Dairy had an
initial capacity to process 50,000 liters of Milk per day. This dairy was handed over to the
„Karnataka Dairy Development Corporation (KDDC)‟ in December 1975 as a part of Rural
Milk scheme of Mysore, Hassan and Kudige under „ Operation Flood – 11‟ and then
transferred to „Karnataka Milk Federation (KMF)‟ in May 1984 as a successor of SDD.
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2.2: COMPANY PROFILE
Kolar – Chikkaballapur District Co-operative Milk Producers Union Ltd., (KOMUL)
is Karnataka‟s 2nd
highest Milk Producing District Organization. It is a District level apex
body of milk cooperatives in Karnataka, which aims to provide remunerative returns to the
farmers by eliminating the middlemen and also serve the interest of consumers by providing
quality Milk & Milk products, which are good value for money.
Once the district was named as Land of Gold & Silk, is making inroads and quality
Milk Production. It is KOMUL that first installed “Bulk Milk Coolers & Community Milking
Machines” at Society level in the state of Karnataka to get the quality milk required for UHT
milk packed at Kolar Dairy under the brand name of Nandini “Good – Life”.
“Nandini is a brand name for KOMUL, which is operating under KMF”
Background and Inception of the Company
Animal Husbandry is the most preferred allied activity in the district, which
contributes substantially to the total income of the district and dairy farming forms the major
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activity in this sector. Dairy development activity in the district was initiated during the year
1975 under IDA assistance as a part of Bangalore Milk Union Ltd. (BAMUL). Subsequently,
the district was bifurcated from the operational area of BAMUL to form a separate milk
union called Kolar Milk Union (KOMUL) with effect from 1st
April 1987.
The KOMUL has a milk processing plant at Kolar with a handling capacity of 25,000
ltrs/day (LPD) and three chilling units at Chintamani, Gowribidanur, Sadli with handling
capacity of 8,50,000 (LPD), respectively. At Kolar, the dairy is manufacturing Butter, Ghee,
Milk and full cream Milk. UHT milk is being sold under the brand name of “Nandini Good
Life” and “Nandini Smart” while all other products are sold under the brand name of
“Nandini”. The KOMUL started marketing of liquid milk in polythene sachets in entire Kolar
district and in a part of Bangalore City since 1994.
MILK SHED AREA OF KOMUL
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KOMUL Milestones
1987 Bifurcation of the district from an operational area of Bangalore Milk Union Ltd
(BAMUL) to form a separate milk union
1987 Establishment of first Women Dairy Co-operative Society in the union
1989 Inauguration of Sadali Chilling Center
1990 Initiation of milk marketing at Inter-dairy rate.
1991 Inauguration of Gowribidnur chilling center
1991 KMF handed over chilling centers at Kolar, Sadli, Chintamani and Gowribidnur to
Kolar Milk Union Ltd
1994 Inauguration of full-fledged dairy at Kolar with a processing capacity of I lakh liter
per day
1995 Inauguration of Administrative Building in the Dairy campus
1998 Inauguration of Cheese Plant
1999 Union started marketing Nandini Good Life Milk
1999 Expansion of processing capacity of Chintamani chilling center
2001 Inauguration of Animal Disease Diagnostic Laboratory at Chintamani chilling
center campus
2001 Installation of AMC units at DCS level
2001 For the first-time in the history of Karnataka, inauguration of BMC centers
2001 Kolar-Chikkaballapura Dairy certified for ISO-9002 Quality management system
2001 Union started marketing MastiDahi
2001 Expansion of Tetrapak Unit
2001 Inauguration of Community Machine Milking Parlors (centers)
2002 Started implementation of TIFAC Project
2003 Union bagged National Productivity Council Award – 2nd
place
2004 Union bagged National Productivity Council Award – 2nd
place
2004 So far the day maximum milk procurement in the history is 3rd
2004 So far the day maximum milk procurement in the history is 3rd
December 2004
(7,38,838 KGS)
2005 Inauguration of 100th
BMC centers in the jurisdiction of KOMUL
2006 Union bagged Best Co-operative Union Award in the state
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2006 Establishment of producers welfare trust
2007 Expanded UHT Processing Capacity from existing 0.40 LLPD to 1.5 LLPD
2008
Sep
Union started to supply Good Life Milk to Indian army
2008
Dec
Union received Energy Conservation Award both from Central and State
Governments
2008
Dec
KOMUL was renamed to “KOLAR CHIKKABALLAPURA
CO-OPERATIVE MILK PRODUCERS SOCIETY UNION LTD”
2009
March
Installed and Commissioned the following
TFA-A1 500ml Fino Packing Machine – 3600 Liters/hour
TFA-A1 200ml Fino Packing machine – 2100 Liters/hour
2009
April
Introduced Good Life Milk 200ml Fino packets to market
2009
May
Launched New 100ml Brik UHT variant Milk called “Sampoorna” with Fat 4.5%
& SNF 8.5% to market
2009
June
KOMUL Achieved the highest milk procurement of 7,45,446 KGS of Milk on
08/06/2009
2009 1st
place in National Energy Award and 2nd
place in State Energy Conservation
Award
2014 Enhanced UHT plant for 2.5 lakhs liters per day packing
Nature of Business Carried
The nature of business of KOMUL is processing of milk and procuring of milk from the milk
producing co-operative society. The plant carries out its functions of processing the milk and
distributing the milk continuously and regularly.
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2.2.1BOARD OF DIRECTORS
SRI KANTH RAJ PRESIDENT
SRI G.T. GOPAL MANAGING DIRECTOR
SRI PRABHAKAR DIRECTOR
SRI K.V. NAGARAJU DIRECTOR
SRI JAYASIMHA KRISHNAPPA DIRECTOR
SRI ASHWATH NARAYAN BABU DIRECTOR
SRI RAJENDRA GOWDA DIRECTOR
SRI RAMKRISHNA GOWDA DIRECTOR
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2.2.2: VISION, MISSION AND QUALITY POLICY
“Wish to grow into model milk co-operative in the country”
Vision 2020
Kolar-Chikkaballapura will collect 20 lakh liters of milk/day
Entire Milk will be collected through Bulk Milk Coolers, Computerized systems at
villages.
Kolar-Chikkaballapura Milk Quality will be a Global Benchmark.
Milk Products manufactured from Kolar Raw Milk will be of International Standards.
MISSION
Kolar-Chikkaballapura Milk Union continuously procure good quality milk by
providing remunerative price & technical inputs to producers and supply good
quality of Milk & Milk products to the consumers. It also strives to achieve top
position in the dairy industry by improving the financial position of the union.
To provide assured and remunerative market for all the milk sold by the farmer
members.
To provide hygienic milk and milk products to urban consumers.
To eliminate middlemen and organize institutions owned and managed by the milk
producers by themselves, by employing professionals.
QUALITY POILCY
“KOMUL continuously strives to improve their internal quality & operating system
by educating milk producers & motivating work force to achieve customer satisfaction.”
KOMUL has obtained certification for ISO: 9001-2000 Quality Management System
and they are in the process of upgrading the System to ISO-22000.
Quality Policy Objective Statement of KOMUL is as follows:
“Every job operation will be done by everyone in right time & rightly at first time.”
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2.2.5: VALUES
Honesty
Discipline
Quality
Hard Work
Mutual Trust & Belief
Transparency
Co-operation & Team Work
2.3: PRODUCT PROFILE
KOMUL (Nandini) is one of the well-known brands in the country. The union offers
few products to its customers. The products are as follows:
Table showing Product Profile of KOMUL
NANDINI TONED MILK:
Karnataka‟s highest selling and most preferred milk 3% fat and
8.5% SNF content make this milk the best choice for all
purposes.
Available in 200 ml, 500 ml and 1 liter pouches across
Karnataka.
Homogenized variant is also available in 5 liter and 6 liter
pouches in selected markets.
CURDS:
Fresh curd that tastes just like traditional home – made curd.
Can be consumed as such or in combination with cooked rice
or added as an ingredient in certain dishes.
Available in 200g and 500g pouches.
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BUTTER:
Made from fresh pasteurized cream for delectable taste,
smooth texture and butter some delight. Tasty enough to
relish in a variety of ways.
Available in 200g and 500g slabs
GHEE:
Nandini ghee is made from pure butter. It is fresh and pure
with a delicious flavor.
Hygienically manufactured and packed in a special pack to
retain the goodness of pure ghee. Shelf life of 6 months at
ambient temperature.
This is available in 200ml, 500ml, 1liter sachets, 5kg and
15kg tins.
PEDA:
Mouth – watering peda made from pure milk. One bite is
enough to fill the heart with its creamy milk flavor.
Available in sachets and 100g and 250g pack.
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MASALA BUTTERMILK:
Fresh butter milk blended with quality spices to give that
enlivening spicy tang of traditional spiced butter milk. A
drink recommended after meals, for easy digestion.
Masala butter milk is manufactured and sold in the summer
season, especially from the month of March to July, the only
period during which it gets demand.
Available in 200ml Tetra brisk packs and 200ml pouches.
MILK POWDER:
ULTRA HIGH – TEMPERATURE HEAT – TREATED MILK:
It refers to ultra-high temperature heat-treated milk. The concept of UHT milk is
absolute i.e. bacteria free besides retaining the nutritional quality of milk. During the process,
milk is exposed to a temperature of 1370
c for 4 sec and immediately cooled a room
temperature packing it aseptically.
At present two types of UHT Milk are being produced one “Nandini Good Life” with
3.6% fat and 8.5% SNF and another one is “Nandini Smart” with 1.5% fat and 9% SNF.
Nandini Smart being low fat products is good for health conscious people. Both the kinds of
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milk can be stored for at least 45days at room temperature. It needs no boiling before
drinking on an average 25,000 of both kinds of Milk is being sold per day.
Constituents Fat Minerals Proteins Lactose Water Total solids
Nandini
Good Life
3.6% 0.7% 3.3% 4.7% 83% 4.7%
Nandini
Smart
1.5% 0.7% 3.5% 5.0% 84.3% 5.0%
It also includes “GOOD LIFE SLIM” skimmed milk is 99.5% fat free. Cow‟s pure
milk, homogenized, skimmed, UHT processed milk, bacteria free in a temper proof tetra-fine
pack which keeps this milk fresh for 60days without refrigeration until opened. It‟s available
in 500ml pack.
2.4: AREA OF OPERATION
The major area of operation of Nandini is at National Level. Nandini (KOMUL) as a
long tradition of maintaining the highest quality standards, rights from selection of raw milk
to processing and packaging of end products.
The reason why its products are much in demand nationally and are sold and
distributed regularly to states like Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, Goa,
and all over Karnataka.
In Sep 2008 KOMUL started supplying Good Life milk to Indian Army.
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OWNERSHIP PATTERN
KOMUL is a District level Co-operative Society, which operates under KMF (State Level
Co-operative Society)
Table showing ownership pattern of KOMUL
SL.No CATEGORY NO. OF SHARES % OF SHARE
HOLDINGS
1 Promoters Holdings Promoters 8,60,00,00 94.16%
2 Non-promoters holdings
Institutional investors i.e.
banks, financial institutions
35,65,000 3.90%
3 Others
Public
12,00,000 1.31%
4 Employees 5,62,700 0.63%
Total 9,13,27,700 100%
2.5: COMPETITIORS INFORMATION
KOMUL has various competitors in the market such as :-
Nandi
Tirumala
Heritage
Swastik
Shruthi
Arokya
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Nilgiris
Jersey
Dodla
NANDI:
Nandi Milk Products Pvt Ltd was started in the year 1997. It was under the care of
Sri.S.P.Y.Reddy. The industry is located at Nandyal-Kurnool highway road in Kurnool
district. It is an industry that procures milk from four districts. From the 1997-2009 the
company has developed the business day to day. The company not only improves the brand
name but also it is overtaking the competitor‟s brands.
TIRUMALA:
Tirumala Milk Products Pvt Ltd is a professionally manages company engaged in the
manufacture of a wide range of Dairy Products which include Milk in sachets, Sweets,
Flavored Milk, Curd in Cups and Sachets, Milk Powder, Butter, Ghee and Butter Oil both in
bulk as well as in consumer packs.
Established in 1998, Tirumala Milk Products (P) Ltd. Is one of the fastest growing
Private Sector Enterprises in India with a team of dedicated professionals.The company as
one of the most modern and versatile plants in Indian Dairy Industry with state-of-the-art
technology.Tirumala Milk Products (P) Ltd products meet stringent quality control tests and
cater to the premium segment of the market for Dairy Products. Tirumala Milk Products (P)
Ltd is presently implementing an expansion program and proposes to launch new products in
the near future.
Presently Tirumala market presence is in Andhra Pradesh, Karnataka and Tamil
Nadu. They handle 7 Lakh liters oof milk per day in our packing stations and dairy plant,
which is the single largest plant in the state of Andhra Pradesh. TirumalaRegistered office is
located Narasarao Pet, Guntur Dist and Corporate Office is located at Ameerpet, Hyderabad.
Tirumala Milk Products (P) Ltd sells a rich, varied offering of nutritious, tasty and
healthy food products under well-known brand. Taste, health, convenience, reliability and
vitality for consumers are key characteristics.
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HERITAGE:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the
fastest growing Private Sector Enterprises in India, with four-business divisions viz., Dairy,
Retail, Agri and Bakery under its flagship company Heritage Foods (India) Limited (HFIL).
The annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-2011.
Presently Heritage‟s Milk Products have market presence in Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu, Maharashtra and Orissa and its retail stores across
Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak
Districts and these are backbone to retail operations and the state of art Bakery division at
Uppal, Hyderabad and Andhra Pradesh.
DODLA:
Dodla Dairy Limited a Public Limited company established by a well-known family
from Nellore district Andhra Pradesh in the year 1998. It procures, processes and sells milk
and milk products across 66 locations in India. The company Head Quarters is located in
Hyderabad.
Dodla Dairy is an ISO 22000: 2005 and ISO 50001: 2011 (ENMS) Certified
Organization. The company is having 7 State of art technology processing plants, 28 chilling
centers, 15 Bulk Milk Chillers and 17 Associate Chilling centers. The company has a wide
distribution network across pan India. The products and services are offered through 16 sales
offices. The company offers a wide range of Milk Products comprising Fresh Milk, Butter,
Ghee, Paneer, Curd, Flavored Milk, Milk Sweets, Ice Cream and Skim Milk Powder. All the
products are conveniently packed in different pack sizes and types to suit various needs of
consumers. The company has grown multifold rapidly during the past one and half decade
and has become a popular dairy company in India. The consistent growth of the organization
reflects the consumer confidence and strength of the company.
The company has gained the competitive advantage over other players by delivering
the highest quality dairy products to the consumers. Now, the company is prepared to face the
future challenges by upgrading its systems and infusing new technology.
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2.6: INFRASTRUCTURAL FACILITIES
KOMUL dairy is situated in the industrial estate besides the National Highway (NH-
4) a prime locality occupying a vast and ample space of 25 acres of land and it is a noise free
zone. The main building consists of administrative department, finance department and MIS
department. Beside the main building, a canteen and other building where marketing and
purchase departments are situated. The internal parts of the departments are arranged in such
a way that there is sufficient space for work and arrangements are made for proper
ventilation.
Other Facilities
Clean milk production
Emergency facility
First-aid facility
Mobile veterinary facility
Training and development facility to DCS (Dairy Co-operative Societies)
Vision programmed under taken from NDDB (National Dairy Development Branch)
Mass Vaccination programmer against Foot and Mouth Disease
Vaccination against the lariasis
Animal Disease Diagnostic Laboratory
Fodder development programmers
2.7: ACHIVEMENTS/AWARDS
In recognition of the varied initiatives, KOMUL was conferred with several awards and
accolades. Some prominent awards received are as under.
KOMUL bagged National Productivity Council Award – 2nd
Place
KOMUL bagged Best Co-operative Union Award in the State
KOMUL achieved the highest milk procurement of 7,45,446 KGs of milk on
08/06/2009
1st
place in National Energy Award and 2nd
place in State Energy Conservation
Award. Kolar – Chikkaballapur Dairy with 3 Milk Chilling Centers is certified for
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ISO - 9901: 2000 quality management system and they are in the process of
upgrading the system to ISO – 22000.
Winner of “Best Productivity Awards”
ACHIEVEMENTS
1. Community Milking Machines first time in India
2. Highest number of BMCS in the village after Gujarat
3. UHT Tetrapak plant first in Karnataka with Variants “Good Life”, “Smart”, and
“Slim”
4. Union has implemented „Rain-Water‟ Harvesting System
5. Union has implemented “Total Energy Management” at Dairy
6. Kolar-Chikkaballapura Dairy with 3 Milk Chilling centers is certified for ISO-
9001:2000
7. Farmers Health Insurance – “Yashaswini”
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2.8.WORK FLOW MODEL
Manufacturing Process (End to End)
RAW MILK
MILK INLET
MILK STORAGE TANK
MILK INLET
PACKAGING
CHILLED WATER INLET
CHILLED WATER OUTLET
MILK OUTLET
CREAM MILK
BUTTER SECTION
GHEE
PASTURIZATION COOLING SYSTEM
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Preliminarily the raw milk is collected in the stores department. Then the milk goes
through a process in production department where the milk and milk products are produced.
Produced products are clearly checked and packed in accordance to the quality required. This
process will carry on by quality control department. Finally the products which are ready for
sales are sent to sales and marketing department to distribute it to the consumers through
various distribution channels like milk parlors, milk depots and other retail outlets.
2.9: MCKINSEY’S 7S MODEL
The 7S model is better known as Mc-Kinsey‟s 7S, because the two persons who developed
this model, Tom Peters and Robert Waterman, have been consultants at Mc-Kinsey‟s and Co.
at that time. They published their 7S model in their article “Structure is not Organization”
(1980) and in their books “The Art of Japanese Managements” (1981) and “In Search of
Exclusive” (1982).
Chart showing Mc-Kinsey’s 7S Frame work
The model consists of seven elements. Those seven elements are distinguished in so called
hard S‟s and soft S‟s. The hard elements are feasible and easy to identify. They are strategy,
structure and system of the organization. The four soft S‟s are hardly feasible. They are
highly determined by the people at work in the organization i.e., style, staff, skills and shared
values.
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2.10. STRUCTURE:
The structure followed in KOMUL is Functional Structure. It ensures maximum use of
principal of specialization. Since the workers are performing a limited number of functions,
their efficiency would be very high.
Chart Showing Organization Structure
11. KUMO
PRESIDENT
BOARD OF DIRECTORS
MANAGING DIRECTOR
GENERAL MANAGER
MARKETIN
G
MANAGER
FINANCE
MANAGER
QUALITY
CONTROL
ADMIN/HR
MANAGER
PRODCUTION
MANAGER
P & I
MANAGER
DEPUTY
MANAGER
DEPUTY
MANAGER
DEPUTY
MANAGER
DEPUTY
MANAGER
DEPUTY
MANAGER
DEPUTY
MANAGE
R
AM
OFFICER
SUB -
ORDINATE
AM
OFFICER
SUB -
ORDINATE
AM
OFFICER
SUB -
ORDINATE
AM
OFFICER
SUB -
ORDINATE
AM
OFFICER
SUB -
ORDINATE
AM
OFFICER
SUB –
ORDINAT
E
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KOMUL mainly has the following departments:
1. Procurement and input department
2. Production department
3. Quality control department
4. Marketing department
5. Finance department
6. Management information system department
7. Administration and Personnel department
PROCUREMENT AND INPUT DEPARTMENT
The operational efficiency is reflected on procurement prices paid to the member
producers. KOMUL is offering the most remunerative milk procurement price to member
producers. Annual average milk procurement for the years 2009 -2010 is 7.30 lakhs liters per
day. During seasonal time it has procured to the peak of 8 lakhs liters per day.
1) PRODUCTION DEPARTMENT
The production department of the Kolar dairy performs the function of
developing procedures to transform a set of input elements of raw material like milk,
money, machine into specified output like curds, butter, ghee, peda, masala butter
milk etc. in assigned quality and best in order to achieve the organizational goals
successfully.
2) MARKETING DEPARTMENT
KOMUL has a well-established marketing department, under the control of
marketing manager. The manager is responsible for marketing and sales of milk and
milk products. The manager is responsible for selling to the target markets, farming
the plans and polices to achieve the marketing goals and manager is also responsible
for forecasting the demands for their products in the market.
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3) FINANCE DEPARTMENT
Finance department is very important in an organization. It is not just confined
to raising funds, but extends beyond it to control the over utilization of funds and
helps to monitor the utilization of funds rose. This function influences the operation of
other essential functioning areas of the firm such as production, marketing and
personal.
4) ADMINISTRATION AND PERSONNEL DEPARTMENT
The administrative manager heads the administrative department. The
manager comes under the general manager. The administrative department of
KOMUL holds all the official work. The administrative manager reports to the
general manager, then the general manager to the managing director (who is the chief
of administrative department).
5) QUALITY CONTROL DEPARTMENT
The quality control department in the plant performs the function of using the
best raw materials and other inputs, measuring and checking for maintaining then
assured standards. KOMUL represent quality, purity and freshness. The quality policy
of KOMUL is to maintain a leading position and also to build high level of customers
over their products by providing high consumer plans.
SYSTEM:
A system refers to formal process and procedures are used to manage the organization.
The systems followed in KOMUL are as follows:
1) INVENTORY CONTROL SYSYTEM:
KOMUL maintains FIFO (first in first out) method to control the inventory in
the plant. Here the inventory is maintained correctly as it contains only perishable
products.
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2) MILK BILLING SYSTEM:
KOMUL maintains a weekly milk billing system. It has four cycles in a
month. They are from 1-7, 8-15, 16-23 and 24 the end of the month.
3) COLD STORAGE SYSTEM:
KOMUL has cold storage machine called silo machine where the milk is
stored at 40
to 50
Celsius.
STRATEGY:
Strategy is a plan or course of action in allocating resources to achieve identified
goals over time.
PRICING STRATEGY:
Price is an important element in the marketing mix. The right price can be determined
through research and by adopting test marketing techniques. A price policy is thus a standing
answer of the firm. If competition is mainly on price basis, the each company prices its
product at the same level as its products at same level of prices of competition.
DISTRIBUTION STRATEGY:
The Union has their own vehicles for distribution of milk to various places which is
an advantage for the company. The milk distribution vehicles supply milk even during times
of lorry strikes without any delay.
PROCUREMENT STRATEGY:
The Union procures milk form the farmers by giving fair prices to them. Procurement
of milk is twice daily, morning and evening. Milk is collected in dairy which is set up in
every village from their milk is taken to the union.
STYLE:
Style is the way in which key managers behave in achieving organizational goals, that
is the management style.
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The leadership style followed in KOMUL is PARTICIPATIVE STYLE.
Participative leadership style is the styles where the subordinates are given equal
importance in participation of improvising the organization and also in the betterment of the
organization.
The decision taken by the top management is in coordination with the subordinates. In
the organization, some of the decisions are taken with the mutual consultation of the top
management and the middle level management.
These decisions are through mutual exchange of knowledge and the experience of the
employees. The top management consults their immediate subordinates in case of any
important decisions, which are of strategic in nature.
Implementation:
Participation in the meetings: employees must take part in any meeting conducted by
the company to discuss company‟s future plans and employees are allowed to express their
opinion, view and ideas.
Recognition program (Office day):
Employees who have suggested the best ideas in making a decision related to any
functional area and every year management select best employee, they will be awarded by
both monetary and non-monetary benefits.
STAFF: Staff refers to the number and type of people employed by the organization. The
people in the organization are very dedicated and work towards the improvement of the
organization.Staff members as on 1st
January 2012.
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Table showing the Staffing details
Type of staff Number of staff Duties and Responsibilities
Managerial Staff 98 Manages the funds
Handling the difficult
situations
Supervising
Planning
Getting things done
Technical Staff 362 Providing assistance to lower
cadre
Manufacturing of products
on time
Ensuring quality
Training the staff
Non-technical Staff 760 Ensuring quality
Examining the work done
Unskilled 300 Maintaining cleanliness
Providing assistance to
superior staff
Ensuring safety
Providing information to top
level
TOTAL 1520
SKILL:
A skill refers to the fact that employees have the skill needed to carry out the
company‟s strategy. Here the employees are further divided into four categories.
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Table showing the types of Staffing and their Skills
Type of Staff Number of employees Skills Required
Managerial Staff 98 Leadership skills
Conflict resolution skills
Decision making skills
Managerial skills
Learning skills
Analytical and logical thinking
skills
Problem-solving management
Technical Staff 362 Computer knowledge
Secretarial skill
Accounting skill
Non-technical Staff 760 Communication
Writing
Managerial skills
Learning skills
Unskilled 300 Follow the instructions
Complete the work which is
assigned on time
This first category contains the people who are in the top-management level the
second category consists of the supervisor‟s office assistance etc. The third category consists
of the employees at the operational level.
The first category consists of the people who are in the decision making process in
KOMUL these people are highly qualified.
The second category is related to office work and fieldwork. These people are also
trained in Computer Applications, Secretarial Skills, accounting Skills etc.
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STRATEGIES TO COVER SKILL GAPS:
KOMUL Co-operative Society conducts training program that is both on the job
training and off the job training which increases the knowledge and skill of the employee
while performing the job.
On-the-job training method
KOMUL provides on the job training according to the need. For this method of training,
they invite experts from various training institutions. This type of training will be conducted
once in three months/six months/a year. On-the-job training method, which is adopted by
KOMUL, is coaching.
1. Coaching:
The trainer is placed under a particular supervision which functions as a coach in training
the individuals according to organization requirements. To give coaching they invite experts
from National Dairy Development Board (NDDB) and sometimes top managers of the
organizations.
Off the job training
Under off the job training method, trainee is separated from the job situation. Here
employees can place his entire concentration to learn rather than spending time on
performing job.
1. Vestibule Training:
Under this method, actual work condition is stimulated in a classroom. KOMUL sends its
employees to National Dairy Development Board (NDDB), confederation for Indian
Industries (CII) for technical training. This type of training is commonly used for individuals
for technical and clerical jobs.
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SHARED VALUES:
The core or fundamental values that are widely share in the organization and serve as
guidelines that are important, these values have great meaning because they focus attention
and provide broader sense of purpose.
The values of the organization are:
Honesty
Discipline
Quality
Hard work
Mutual Trust & Belief
Transparency
Co-operation & Team Work
2.11: SWOT ANALYSIS
SWOT analysis is the scan of internal and external environment it is an important part
of the strategic planning process. Environment factors internal to the firm usually can be
classified as Strengths (S) or Weakness (w), and that external to the firm can be classified as
Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to
as SWOT Analysis.
The SWOT analysis provides information that is helpful in matching the firm‟s
resources and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. The following diagram shows how a
SWOT analysis fits into an environment scan:
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SWOT Analysis
STRENGTHS OF KOMUL:
Strategically located in KOMUL
Quick availability of raw materials
Popular brand known from years
Milk and Milk products are available at competitive prices
Ability to maintain uniform quality
Timely delivery
New technology implemented for production of milk
KOMUL has very good infrastructure
KOMUL attends to the complaints of consumers immediately
KOMUL pays the highest price for the milk collected from farmers in India and
loyalty among customers for the brand
Raw milk handling needs is upgraded in terms of physio-chemical and
microbiological attributes of the milk collected. The use of clarification and
bactofugation in raw milk processing has improved the quality of milk products.
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WEAKNESS OF KOMUL:
Freezing of marketable area
Lack of flexibility in system
Rivalry among sister unions
Government influence
Lack of personalized service to channel members
High overheads
Returns are unexpected
OPPORTUNITIES OF KOMUL:
The union is facing challenges from the new private entrants, who are mainly thriving
on unfair trade practices. They procure milk at least cost, without bothering about the welfare
of the producers and without extending any technical inputs for improving milk production.
They market milk by resorting to unhealthy and unethical practice deceiving the unsuspecting
consumers. The union wants to counter this in a positive manner by trying to improve its
efficiency of operation and market promotion. It wants to become well trenched in the market
as “Market Leader”.
The computer monitors and the utilization of utilities such as water, electricity, steam
etc hence; it is possible to adopt efficient cost control measures to attain cost competitiveness.
THREATS FOR KOMUL:
Competition from private dairy companies
Unawareness about the various products of KOMUL among people
2.12 : FUTUTRE GROWTH PROSPECTS
Future growth prospects of KOMUL are as follows:
To establish a high-tech production plant in Chikkaballapur district.
To establish hi-tech parlors at Chintamani.
To establish ATM (All Time Money) in all taluk levels.
Expansion of Kolar chilling center.
To introduce clean milk production (CMP) at all levels.
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To introduce Dairy Animal Management (DAM).
To introduce Total Quality Management (TQM) program in all levels.
To introduce Total Energy Management Program (TEM).
To introduce the cluster concept to increase the consumption.
Comprehensive training programs for DCS (District Co-operative Society) personnel
and milk union personnel.
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2.13: FINANCIAL STATEMENTS
Particulars 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
SOURCES OF
FUNDS
Share Capital 28037844 28007270
0
28091620
0
280974200 339879000
Reserves &
surplus
16309526
0
24425932
7
30022049
7
42768810 632969913
Loans 99266539 13511547
0
11424771
6
93009551 57170097
GOK Plan Funds 17560390
2
67235577 69466514 280861501 51642218
Profit & Loss
A/c
34355354 35903162 35667310 33829820 22546389
TOTAL 75269945
6
76258623
6
80051823
7
111644388
3
110420761
7
APPLICATIO
N OF FUNDS
Fixed assets 30446979
4
38693167
9
37255964
3
357857489 449437747
Investments 47876000 69378349 65217425 39513749 198612487
Current assets:
a.Stock 81201796 14444651
3
29934296
8
620587772 27587206
b.Trade Debtors 21820841
9
16609793
7
21239952
3
207253541 443085972
c.Cash& Bank
Balances
98541218 23158706
9
16601055
0
339155600 168582612
d.Loans&
Advances
23108113
0
57456651 84737573 143180788 86911039
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TOTAL (a) 62903256
4
59958817
1
76249061
6
131017770
1
974476830
LESS: Current
Liabilities &
Provisions (b)
22867890
2
29331196
3
39974944
6
591105057 518319446
Net Working
Capital (a-b)
40035366
2
30627620
8
36274117
0
719072645 456157383
TOTAL 75269945
6
76258623
6
80051823
7
111644388
3
110420761
7
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CHAPTER 3
THEORETICAL BACKGROUND
3.1: General Introduction
BRAND:
Brand is usually associated with the logo, sign, name or other image that consumers
associate with your company and product. But in fact, brand also incorporates other factors,
and encompasses those unique characteristics that distinguish your product and sets it apart
from competition. It also refers to the quality of your product, the way you do business, and
how you are perceived by others.
BRANDING:
Branding is a key concept in marketing cycles, as it is the pivotal springboard that can
thrust your business forward, and give you a competitive edge. A well-defined and strong
brand will drive sales, build customer loyalty, create brand value and most of all, it will be
the catalyst for business growth, as consumers will be motivated to buy your product.
Importance of Branding:
Deliver your message clearly: Branding acts as a way of communicating with your
customers. Without expensive advertising, you can deliver a message through your
well-designed brand. Because of this, the importance of branding in marketing is clear
if you want to connect with your customers without going broke in the process. If you
can customize your brand according to the needs of your customer base, you will be
well on your way to the success you crave for your business.
Create Business Credibility: If you can continually associate your brand with
quality products and services, soon they will be one and the same in the minds of your
customers. This credibility is not built overnight. You must prove that your business
can continually innovate to provide top-notch customer service as well as products
and services that are dependable.
Connect the Customer to the Product: You probably feel a connection with – and
even a loyalty to your favorite brands. They have helped you to be successful in
51. A study on Brand Image of Nandini Products at KOMUL, Kolar
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various aspects of your life. Products are the backbone of humankind‟s success, and
every successful product is backed by a recognizable brand and a trustworthy
company, which are the traits you need to create for your own business.
Motivate the Buyer: when the connection between the customer and the product is
strong, the brand becomes a motivator for the customer to continue buying products,
even if they have never used that exact product before. Your customer places trust in
your brand and its quality so they know buying another product from the same brand
is likely to deliver similar satisfaction.
Importance of Brand Image:
A lot of companies these days turn to effective brand strategies in order to connect
effectively with their clients. However, having a brand is not enough; a company must
maintain a good image to be able to attract prospective clients. The term brand image is the
overall opinion of the clients about a certain brand. It can be characterized as one of a kind
collection of associations in the minds of the target market. It also indicates the brands set of
beliefs. In other words, brand image at all costs. The way they present the products or
services in the market can be a deal breaker if they don‟t know how to take care of the image.
Furthermore, brand image is the company‟s overall character. That‟s why companies
should present their mission and vision in a clear manner. Of course, they don‟t want to
confuse their clients with unclear goals. To present a clear brand image, companies should
consider the three elements of image branding, which are unique company logo, precise
company slogan, and key identifiers that maintain the company‟s core values. The thought
behind image branding is that clients are not just buying the products or services but also the
image connected with that particular product or service. Companies should keep in mind that
in order to present a good brand image, they should make their branding strategy be unique,
optimize and direct. This will be attained by Utilizing different types of brand
communications such as packaging, advertising, word of mouth (WOM) publicity, to name a
few an effective brand image brings three types of advantages:
First, emotional benefits will show the client how a company‟s product or service
makes them feel better. Second, rational benefits will encourage clients to choose a
company‟s product or service over the competitors. And third, functional benefits will
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demonstrate the edge of the company. For example, if a company is selling lanyards, the
company must be able to show the client why their products are much better than the others
and the purpose of owning one.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Table No: 4.1
Table showing age wise classification
Age No. of Respondents
15-25 24
25 – 35 64
35 – 45 9
45 & above 3
Total 100
ANALYSIS:
From the above table we can see that more number of respondents belong to the age group of
25 – 35 i.e., 64 respondents, 15 – 25 are 24 respondents, 35 – 45 are 9 respondents and the
least respondents belong to above the age of 45 i.e 3 respondents.
Graph No: 4.1 Age Wise Classification
Interpretation:
From the above graph we can see that majority of Nandini products consumers are between
the age group of 25 – 35 years of age.
24
64
9
3
0
20
40
60
80
15 - 25 YEARS 25 - 35 YEARS 35 - 45 YEARS 45 & above
Age wise Classification
Age Wise
Classifaction
54. A study on Brand Image of Nandini Products at KOMUL, Kolar
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Table No: 4.2
Table showing Income group of the respondents
Income Group No. of Respondents
Less than 20,000 59
20,000 – 40,000 23
40,000 – 60,000 9
60,000 & above 9
Total 100
ANALYSIS:
From the above table we can see that maximum number of respondents belong to the first
option of less than 20,000 i.e 59. The other respondents income group: 20,000 – 40,000 (23),
40,000 – 60,000 (9) and 60,000 & above (9).
Graph No: 4.2 Income Group of Respondents
Interpretation:
From the above graph we can identify that most of the customers fall in the income group of
less than 20,000.
59
23
9 9
0
10
20
30
40
50
60
70
less than 20,000 20,000 - 40,000 40,000 - 60,000 60,000 & above
Income Group
Income
Group
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Table No: 4.3
Table showing No of Respondents using Nandini Products
Age No. of Respondents
Yes 87
No 13
Total 100
ANALYSIS:
From the above table we can see that maximum number of respondents use Nandini Products
that is 87 and the number of respondents not using Nandini Products is 13.
Graph No: 4.3 No. of respondents using Nandini Products
Interpretation:
From the above graph it is identified that most of the respondents are using Nandini products
and this indicates that only few of them are not using Nandini Products so the company has to
concentrate on promotional activities.
87
13
0
20
40
60
80
100
yes No
Respondents using Nandini Products
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Table No: 4.4
Table showing years of usage of Nandini Milk & Milk Products
No of Years No. of Respondents
Less than 1 year 44
1 – 2 years 16
More than 2 years 39
Total 100
Analysis:
From the above table it is found that 44 respondents are using Nandini Milk and its Products
for less than a year, 16 respondents are using it from the past 1 – 2 years and 39 respondents
are using from more than 2 years.
Graph No: 4.4 years of usage of Nandini Milk & Milk Products
Interpretation:
From the above graph we can find that long term users are less compared to less than 1 year.
Majority of the respondents use Nandini milk and its products from less than 1year.
44
16
39
0
10
20
30
40
50
Less than 1 year 1 - 2 years More than 2 Years
Usage of Nandini Milk & Milk Prodcuts
Usage of
Nandini
products
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Table No: 4.5
Table showing Awareness about Nandini Milk Products
Awareness about Nandini Products No. of Respondents
Relative & Friends 44
Magazines & Newspaper 16
Nandini Booth Parlors 39
Any others 1
Total 100
Analysis:
From the above table we can analyse that maximum number of respondents got to know
about Nandini Milk products from relative & friends (44), the least number of respondents
from other sources. The other respondents got to know about Nandini milk products from
magazines & Newspaper (16) and from Nandini booth parlors (39).
Graph No: 4.5 Awareness about Nandini Milk Products
Interpretation:
From the above graph we can see that maximum number of respondents got to know about
Nandini milk products from their relative and friends and the least number of respondents got
to know about it from others.
44
16
39
1
0
10
20
30
40
50
Relative & Friends Magazines & News
Paper
Nandini Booth
Parlors
Others
Awareness about Nandini milk prodcuts
Awareness
about
Nandini…
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Table No: 4.6
Table showing usage of Nandini Products
Usage of Nandini Products No. of Respondents
Milk 36
Ghee 6
Curds 6
Peda 4
All the above 48
Total 100
Analysis:
From the above table we can see that maximum number of respondents use all the Nandini
products i.e 48, 36 respondents use only milk, 6 respondents use only ghee, 6 respondents use
only 6, 4 respondents use only peda.
Graph No: 4.6 Usage of Nandini Products
Interpretation:
From the above graph we can see that as milk being the necessity, most of the consumers
purchase Nandini Milk than other Nandini products. And some purchase all the products
under Nandini brand.
36
6 6 4
48
0
10
20
30
40
50
60
Milk Ghee Curds Peda All the above
Usage of Nandini prodcuts
Usage of
Nandini
Prodcuts
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Table No: 4.7
Table showing places of purchase of Nandini products
Places of purchase No. of Respondents
Door Delivery 41
Milk Parlor 47
Others 12
Total 100
Analysis:
From the above table we can see that maximum number of respondents purchase Nandini
products from milk parlor (47), 41 respondents get milk at their doorstep and 12 from other
sources.
Graph No: 4.7 Places of purchase of Nandini Products
Interpretation:
From the above graph we can see that as all the products are perishable, no consumer will
purchase it in bulk. The entire consumers will purchase the milk early in the morning or in
the evening. The consumers who purchase by door delivery has to pay the extra charges
compared to the consumers who purchase in parlor and they don‟t have to pay extra charges.
41
47
12
0
10
20
30
40
50
Door Delivery Milk Parlor Others
Purchase of Nandini prodcuts
Awareness
about
Nandini…
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Table No: 4.8
Table showing Respondents opinion on Nandini products
Product Very Good Good Fair Satisfactory Unsatisfactory
Milk 49 37 8 4 2
Curd 31 47 15 5 2
Ghee 25 48 18 6 3
Butter 21 55 16 4 4
Sweets 49 31 13 3 4
Analysis:
From the above table we can see the respondents‟ opinion on Nandini products. It is seen that
maximum number of respondents i.e, 49 agree that milk is very good. 37 respondents think it
is good, 8 respondents think it fair, 4 respondents think it is satisfactory and only 2
respondents think it is unsatisfactory.
Most of the respondents opinion on curds is that it is good (47). It is also seen that 31 people
think its very good, 15 respondents think it‟s fair, 5 think its satisfactory and 2 respondents
think is unsatisfactory.
48 respondents opinion towards curds is that it is good. 25 respondents think its very good, 18
respondents think its fair, 6 respondents think its satisfactory and 3 respondents think its
unsatisfactory.
Most of the respondents opinion towards butter is that it is good (55). 21 respondents think its
very good, 16 respondents think fair and there are 4 respondents each who think its
satisfactory and unsatisfactory.
Maximum respondents have agreed that Nandini sweets are very good (49), 31respondents
think its good, 13 respondents think its fair, 3 respondents think satisfactory and 4
respondents think its unsatisfactory.
61. A study on Brand Image of Nandini Products at KOMUL, Kolar
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Graph No: 4.8 Respondents Opinion on Nandini Products
Interpretation:
From the above graph we can see that majority of the respondents opinion towards Nandini
products is that it is good. We can also see another set of respondents opinion is that the
products are very good. From this we can say that the respondents perception about Nandini
products is positive and good.
Very Good
Good
Fair
Satisfactory
Unsatisfactory
0
10
20
30
40
50
60
Milk Curd Ghee
Butter
Sweets
Respondents Opinion on Nandini Prodcuts
Very Good
Good
Fair
Satisfactory
Unsatisfactory
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Table No: 4.9
Table showing Respondent complaints about Nandini Products
Particulars No. of Respondents
Yes 9
No 91
Total 100
Analysis:
From the above table we can see that 91 respondents have no complaints about Nandini
products where as only 9 respondents say they have a complaint.
Graph No: 4.9 Respondents Complaints about Nandini Products
Interpretation:
Most of the customers are happy and satisfied with Nandini products and very few people
have complaints about Nandini Products and the company needs to take necessary measures
by understanding what kind of complaints customers have and how to overcome it.
91
9
0
20
40
60
80
100
Yes No
Complaints about Nandini prodcuts
Complaints
about
Nandini…
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Table No: 4.10
Table showing type of complaints about Nandini products
Type of Complaints No. of Respondents
Low Quality 3
Package Defect 3
Others 3
Total 9
Analysis:
From the above table we can see that 3 respondents in each category have complaints about
Nandini products.
Graph No: 4.10 Type of complaints about Nandini Products
Interpretation:
From the above graph we can see that customers complain with respect to all the features are
equal and the company should take effective measures to correct it.
3 3 3
0
0.5
1
1.5
2
2.5
3
3.5
Low Quality Packaging Defect Others
Complaints Features of Nandini prodcuts
Complaints
features of
Nandini…
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Table No: 4.11
Table showing No. of Respondents agreeing Nandini products as best
Particulars No. of Respondents
Yes 73
No 27
Total 100
Analysis:
From the above table we can see that maximum respondents agree that Nandini products as
best i.e. 73 respondents while 27 respondents disagree that Nandini products is not the best.
Graph No: 4.11 No. of Respondents agreeing Nandini products as best
Interpretation:
From the above graph we can see that some customers are not happy with Nandini products
with respect to some features and they are looking for correction in the defects.
73
27
0
20
40
60
80
Yes No
Agreeing Nandini prodcuts as best
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Table No: 4.12
Table showing following aspects are better than Nandini products
Particulars No. of Respondents
High Quality 13
Freshness 8
Price 6
Total 27
Analysis:
From the above table we can see that 13 respondents feel that the competitors‟ products are
better when compared with that of Nandini with respect to quality. 8 respondents are not
happy with freshness of Nandini and 6 respondents are not happy with the price of Nandini
products.
Graph No: 4.12 aspects are better than Nandini products
Interpretation:
From the above graph we can see that customers are not happy with quality and freshness of
Nandini products. So in order to attract customers the company has to show interest with
respect to price, packaging and quality.
13
8
6
0
2
4
6
8
10
12
14
High Quality Freshness Price
Aspects are better than Nandini prodcuts
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Table No: 4.13
Table showing Response on advertising to promote Nandini products
Particulars No. of Respondents
Yes 83
No 17
Total 100
Analysis:
From the above table we can see that 83 respondents feel that more advertisements are
needed to promote Nandini products in the competitive market and 17 respondents feel that
more advertisements are not needed to promote Nandini products in the market.
Graph No: 4.13 Response on advertising to promote Nandini products
Interpretation:
From the above graph we can see that majority of the respondents feel that more
advertisements are needed to promote Nandini products in the market. So the company needs
to have more intensive advertising strategies
83
17
0
20
40
60
80
100
Yes No
Response on advertising
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. Table No: 4.14
Table showing opinion on kind of advertisements
Particulars No. of Respondents
TV ads 53
Banners/Hoardings 13
Transit Ads 6
Newspaper 11
Total 83
Analysis:
From the above table we can see that maximum no of respondents feel more TV ads are
required to promote Nandini products i.e., 53. 13 respondents feel banners/hoardings are
needed to promote Nandini products, 6 respondents feel transit ads are needed and 11
respondents feel newspaper ads are needed to promote Nandini products.
Graph No: 4.14 Opinion on kind of advertisements
Interpretation:
From the above graph it is identified that most of the customers feel TV ads are needed to
promote Nandini products. So the company has to increase the rand image of Nandini
products by using TV ads.
53
13
6
11
0
10
20
30
40
50
60
Opinion on kind of advertisements
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Table No: 4.15
Table showing opinion on more Customer influential Brand
Ambassadors
Particulars No. of Respondents
Punith Rajkumar 58
Upendra 22
Ragini 20
Total 100
Analysis:
From the above table we can see that 58 respondents feel that Punith Rajkumar is most
customer influential brand ambassador, 22 respondents feel that Upendra is more customer
influential brand ambassador and 20 respondents feel that Ragini is more customer influential
brand ambassador in promoting Nandini products in the market.
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Graph No: 4.15 Opinion on more Customer influential Brand
Ambassadors
Interpretation:
From the above graph it is identified that most respondents feel Punith Rajkumar is more
customer influential brand ambassador. So the company can make more ads using him to
improve the brand image of the company.
58
22 20
0
10
20
30
40
50
60
70
Punith Rajkumar Upendra Ragini
Response to Brand Ambassadors
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Table No: 4.16
Table showing Opinion on more outlets required to promote Nandini
products
Particulars No. of Respondents
Yes 79
No 21
Total 100
Analysis:
From the above table we can see that 79 respondents feel that there is need for more number
of outlets to promote Nandini Products in the market and 21 respondents feel that more
outlets are not required to promote Nandini Products in the market.
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Graph No: 4.16 Opinion on more outlets required to promote
Nandini products
Interpretation:
From the above it is identified that most respondents feel that more outlets are required to
promote Nandini products in the market. So the company has to take measures to open new
outlets.
79
21
0
10
20
30
40
50
60
70
80
90
Yes No
Response to More outlets
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Table No: 4.17
Table showing respondents influenced by the ads of Nandini
products
Unsatisfactory Satisfactory Fair Good
Very
Good N Mean Var SD
Milk 34 18 34 26 30 142 3 2.133803 1.460754
Curd 31 28 22 22 39 142 3.070423 2.340607 1.529904
Ghee 23 25 27 38 29 142 3.176056 1.899821 1.37834
Butter 25 38 33 23 23 142 2.866197 1.783971 1.335654
Sweet 26 25 30 34 27 142 3.077465 1.924122 1.387127
Analysis:
From the above table we can see the respondents influenced by the ads of Nandini products.
All the products mean is above 2.5 which shows that the ads are impressive and the company
need not take any extra measures on it. The mean of milk is 3, the mean of curds is 3.070423,
the mean of ghee is 3.176056, the mean of butter is 2.866197 and the mean of sweet is
3.077465. As we have taken a 5 point rating scale the mean should be above 2.5 for it to be
satisfactory.
The table also shows the range between which the influence of the ads of Nandini products
have on the respondents. This is shown by calculating the standard deviation (SD) of the
products with the help of a 5 point rating scale. The standard deviation of milk is 1.460754,
the SD curd is 1.529904, the SD of ghee 1.37834, the SD of butter is 1.335654 and the SD of
sweet is 1.387127.
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Graph No: 4.17 respondents influenced by the ads of Nandini
products
Interpretation:
From the above graph we can see that the Mean, Variance and SD of various products and the
influence they have on the respondents. The mean of the products are satisfactory as they are
above the standard of 2.5. The SD shows the range between which the respondents influence
lay. The overall influence of ads on the products is good.
Milk
Curd
Ghee
Butter
Sweet
0
1
2
3
4
Mean Var
SD
Milk
Curd
Ghee
Butter
Sweet
74. A study on Brand Image of Nandini Products at KOMUL, Kolar
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CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 Findings:
Most of the respondents fall in the age group between 25 – 35 years of age.
It is found that maximum number of respondents is income is less than Rs.20000.
From the sample size we can see that most of the respondents use Nandini Products.
Majority of the respondents are using Nandini products from less than a year.
Respondents awareness about Nandini products is either through relative & friends or
from Nandini Booth parlors.
From the sample size we can see that most of the respondents use all the Nandini
products taken for the study.
As milk is the basic regular requirement, most of the respondents purchase it on a
daily basis and they opt for door delivery or buying it from Nandini parlors.
Many of the respondents found that the quality of Nandini products is good.
There are very few complaints on Nandini products.
The few respondents who have complaints it is with respect to quality, packaging and
price.
Most of the respondents feel that Nandini products are best in the market.
We can see that there is need for advertisement for the promotion of Nandini
products. Most of the respondents in the rural area are unaware of Nandini products.
We can also notice that there is a very small % rise in new customers, so to improve
the sales better promotional activity must be conducted.
Advertisements should be given more television as a large section of the population
can be covered.
We can see that there is a need for brand ambassadors for the promotion of Nandini
products and it also helps in creating and improving the brand image of Nandini
products.
We can also see that more number of outlets are required for promoting Nandini
products in the competitive market.
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5.2 Suggestions:
Brand loyalty is the most influencing factor for the purchase of Nandini milk; the
union should identify the loyal customers and should free gifts. This will help in
spreading news about the products through word of mouth.
Effective delivery system should be designed in order to ensure regular availability
and on – time delivery of milk.
It has been observed that advertisement is the most important factor to establish the
product in the market. So, they should increase advertisements in different media, like
TV, hoardings, Transit ads, newspaper etc
The company is suggested to improve the packing design of the products.
The products, being highly perishable and as the customers are sensitive in the quality
of the milk, the transportation should be refrigerated.
The company should take measures in improving the sales by making availability of
Nandini milk, curds, ghee and butter in all the kirana shops because these are the
products that customers use on a regular basis.
The company has to open more outlets for promoting Nandini products in the
competitive market.
The company should sign influential people has their brand ambassadors as they are
very influential to the public through which the brand image of Nandini products will
increase.
The company should also take into considerations the complaints they receive from
the customers so that they will not lose out on them and so that there brand image will
increase.
The price of the Nandini milk can be subsidized as Milk is one of the most essential
food supply for all.
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5.3 Conclusion:
The project titled “A study on Brand Image of Nandini Products at KOMUL” will
help the company to understand the perception, purchasing behavior and satisfaction level of
the consumers.
The study was made by collecting data through questionnaires making it as a primary
source of data collection and company website, annual reports were used as secondary data
collection. After the collected data it was tabulated and analyzed that has helped to identify
the company‟s weakness and also helped the union to identify the buying behavior of the
customers. It has been observed that advertisements are the most important factor to establish
the product in the market. So, they should increase the advertisements in different media like,
TV, Billboards/Hoardings and newspaper. The company should take some measures in
improving the sales by making availability of milk, curds and ghee in all the kirana shops.
We can conclude through this study that the brand image of Nandini products is quite
high as compared to its competitors. The company should take few measures in improving
the packing quality of Nandini milk which will further increase its image. We can also
observe that the brand ambassadors of the company also play an influential role in building
the image of the company, therefore the company should plan is making effective
advertisements with the help of the ambassadors. The company should make efforts in
promoting the Nandini products in the rural areas as well through which their customer base
will increase.
78. ANNEXURE
A Study on Brand Image of Nandini Products at Kolar, KOMUL
QUESTIONNARIE
Dear Sir/ Madam,
I SUDHARSHAN G, student of NEW HORIZION COLLEGE OF ENGINEERING, Bangalore
currently pursuing MBA in Marketing. I am doing a project on Measuring of brand image
towards Nandini Milk Products. I kindly request you to fill this questionnaire which will help
me in my project work.
1. Name :
2. Address :
Phone / mobile no :
Designation :
3. Age group
a) 15 – 25 years [ ] b) 25 – 35 years [ ]
c) 35 – 45 years [ ] d) 45 and above [ ]
4. Income group
a) Less than Rs.20000 [ ] b) Rs.20000 – 40000 [ ]
c) Rs.40000 – 60000 [ ] d) Rs.60000 & above [ ]
5. Do you use any of the Nandini Products?
a) Yes [ ] b) No [ ]
6. If no, Reasons for not using Nandini Products?
a) Non availability [ ] b) More price [ ] c) others [ ]
specify______________________________________________
7. From how many years are you using Milk and Milk products of Nandini?
a) Less than one year [ ] b) 1 - 2 years [ ] c) More than 2 years [ ]
79. 8. How did you come to know about Nandini Milk products?
a) Relatives and friends [ ] b) Magazines and Newspaper [ ]
c) Nandini booth parlors [ ] d) any others [ ]
specify_______________________________________________
9) Please tick which of the Nandini products do you use?
a) Milk [ ] b) Ghee [ ] c) Curds [ ] d) Peda [ ] e) All the above [ ]
10) How do you purchase Nandini products?
a) Door delivery [ ] b) Milk Parlor [ ] c) others [ ]
specify__________________________________________________________
11) What is your opinion on Nandini Milk Products?
Product very good Good Fair Satisfactory Unsatisfactory
Milk [ ] [ ] [ ] [ ] [ ]
Curd [ ] [ ] [ ] [ ] [ ]
Ghee [ ] [ ] [ ] [ ] [ ]
Butter [ ] [ ] [ ] [ ] [ ]
Sweets [ ] [ ] [ ] [ ] [ ]
12) Do you have complaints regarding Nandini Products?
a) Yes [ ] b) No [ ]
13) If yes please tick the complaint you have?
a) Low quality [ ] b) Package defect [ ] c) others [ ]
specify_______________________________________________
14) Do you agree that Nandini products are better than other dairy brand’s products?
80. a) Yes [ ] b) No [ ]
15) If no then in which aspects you feel other brand’s products are better than Nandini?
a) High quality [ ] b) Freshness [ ] c) Price [ ]
(Mention the product and company name which u feel is better than Nandini?)
16) Do you feel more advertisements are needed to promote Nandini products in the
competitive market?
a) Yes [ ] b) No [ ]
If no, Specify ________________________________________________________
17) If yes what kind of advertisement will be more effective in your opinion?
a) TV ads [ ] b) Banners/ Hoardings [ ] c) Transit ads [ ] d) Newspaper [ ]
18) Among the current brand Ambassadors who according to you is more customer
influential?
a) PunithRajkumar [ ] b) Upendra [ ] c) Ragini [ ]
19) Do you feel more outlets are required to promote Nandini products?
a) Yes [ ] b) No [ ]
specify___________________________________________________
20) How much are you influenced by ads of Nandini products?
Ads for
products
Excellent Very Good Good Bad Very Bad
Milk
Ghee
Butter
Curd
Total
THANK YOU