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CONSUMER SATISFACTION ON SUDHA MILK & SUDHA
PRODUCT IN BOKARO AND DHANBAD
SHUDHA DAIRY
PROJECT REPORT
Submitted to the Pondicherry University in partial fulfillment of
the requirement for the award of the degree of the degree of
MASTER OF BUSINESS ADMINISTRARION
(INTERNATIONAL BUSINESS)
Submitted by
VISHAL KUMAR
Register No: 14382064
Under the supervision and guidance of
Dr. M. BANUMATHI
ASSOCIATE PROFESSOR
DEPARTMENT OF INTERNATIONAL BUSINESS
DEPARTMENT OF INTERNATIONAL BUSINESS
SCHOOL OF MANAGEMENT
R.Venkatraman Nagar, Kalapet, Puducherry-605014
CERTIFICATE OF THE GUIDE
This is to certify that the Project Work entitled “Consumer satisfaction on
Sudha Milk & Sudha Product in Bokaro & Dhanbad” is a bona-fide work of Mr.
Vishal Kumar (Roll No:14382064) carried out in the partial fulfillment for the
award of degree of MBA (International Business) of Pondicherry University under
my guidance. This project work is original and not submitted earlier for the award
of any degree / diploma or associateship of any other University / Institution.
Dr. M. Banumathi Dr. P. Sridharan
Associate Professor HOD and Associate Professor
Department of International Business Department of International Business
DECLARATION
I, VISHAL KUMAR hereby declare that the Project report entitled “Consumer
satisfaction on Sudha Milk & Sudha Product in Bokaro & Dhanbad” in Bokaro
and Dhanbad is the outcome of my summer practical training from 26th
May- 7th
July- 2014 with the company. It is the original work done by me and submitted to
the Pondicherry University in partial fulfillment of requirements for the award of
degree Master of Business Administration in International Business. This report is
not submitted to any other university/ institution, either in full or in part, for the
award of any degree/ diploma earlier.
PLACE: Vishal Kumar
DATE: Roll No.: - 14382064
Acknowledgement
It is not possible to prepare a project report without the assistance & encouragement
of other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere &
heartfelt obligation towards all the personages. Without their active guidance, help,
cooperation & encouragement, I would not have made headway in the project.
I would like to give my deep sincere regard to Dr. M. BANUMATHI
(Associate Professor, Department of International Business, Pondicherry
University) and others who helped me in the successful completion of the project
and preparation of the report.
I would like to owe debt of gratitude to Sri Bhopal Ji Sahay (Chief
Executive, Bokaro Dairy) for giving me the opportunity to gain exposure in the
organization.
I would like to express my sincere thanks to Mr. BIPIN GUPTA (Company Guide
and Marketing Manager of Bokaro Dairy, Bokaro Steel City), who imparted help
support & experience even at the cost of busy schedule without this help it, would
not have been possible to complete this project.
I would also thank all distributors & all route agents for their continuous support.
Lastly I would give special thanks to my parents & my teachers for their proper
guidance.
Thanks
Vishal Kumar
EXECUTIVE SUMMARY
The training at Bokaro Dairy Project, COMPFED helped me to gain the practical
experience and the study conducted by me centers around the importance and
position of different dairy industries. A thriving dairy sector is of vital importance
to every person specially farmers. It provides milk, Ghee, Cheese other products to
every person. It provides a source of income to rural and urban enterprises and
productive individuals and also a way for the farmers to make their living standard
high. During my summer training in Bokaro Dairy Project, COMPFED, the basic
focus of my training was on consumer satisfaction on Sudha milk and Sudha product
in Bokaro and Dhanbad. Under this project I had to find out the different players
carrying on business of liquid milk in Bokaro and also their market share in the same
region. After that we had to make comparative analysis so that we can recommend
suggestion to the Bokaro Dairy Project, COMPFED to increase its share in the
market in Bokaro and Dhanbad. The training was quite a comprehensive one in itself.
TABLE OF CONTENT
Chapter No. Contents Page No.
1 INTRODUCTION
1.1 Statement of the study
1.2 Objective of the study
1.3 Scope of the study
1.4 Limitation of study
1-7
4
5
6
7
2 REVIEW OF LITERATURE
2.1 Industry Profile
2.2 Company profile
2.3 Preface
2.4 Marketing objective of Bokaro dairy
2.5 Milk procurement of Sudha Bokaro
2.6 Dealership appointment to Bokaro and Dhanbad
2.7 Major dairy product manufacturer in India
2.8 Marketing department structure
2.9SWOT analysis of Sudha
8-28
8
10
13
16
18
18
19
21
27
3 RESEARCH AND METHODOLOGY 29
4 ANALYSIS AND INTERPRETATION 30-38
5 FINDING AND SUGGESTIONS
5.1 Finding
5.2 Suggestion
39-40
39
40
6 CONCLUSION 41
BIBOLOGRAPHY 42
CHAPTER I
INTRODUCTION
Milk is a unique marketing product due to its very perishable nature, unique sales timing, need of
a very distribution networking and its sensitive usability. It is a complete food and due to its
nutritional value is consumed by people of all ages especially children. Milk is highly attached
with Indian’s emotional and religious value and cow is given equivalent status to mother just
because it provides milk to human beings. Milk is provided to children in place of mother’s milk.
So, it’s clear that people’s perception about the quality of a specific brand of milk becomes a very
influential factor in the sales ability of the brand. This uniqueness of an unquantifiable influence
of people’s perception of brand and quality on the sales makes marketing a real challenging
marketing job.
Milk is hand to mouth product and a significant proportion of it is consumed directly in is
consumed directly in the households. Other consumption forms like tea, coffee, curd etc. are also
almost direct consumption forms. So, people remain very sensitive about the purity of the milk
they are consuming. Consumers, in general, quantify the quality of a product by looking, touching,
testing and smelling it. Milk being a liquid and whitish in color has higher chance of getting
adulterated. There are high chances of milk available in the market. All these factors combined
make milk a product for which quality and purity of the milk consumed is mostly dependent on
the trust on the supplier.
Other than people’s perception of quality of a brand, availability is the second most important
factor in marketing of a particular milk brand. As milk is more a commodity than a product, there
are not many differentiating factors between different brands and switching cost is really low for
consumers and therefore, brand loyalty is really very less. So, the logistic setup supporting the
milk marketing operations has to be in place and any delay in the system would lead the consumers
to shift to an alternate brand which guarantees regular supply.
Milk market at every place has its own dynamic and traits, which are closely related to
demographic profile, culture outlook and habits of the people staying there. So, the success of a
particular milk brand in specific region will depend upon the fact that how specifically it
understands the demands of specific markets and cater to it.
Milk being a commodity of dairy necessary has its own peculiarities and dynamic. It’s a
commodity which is needed to be supplied daily at correct time and place. Sudha has been the
major supplier of milk in Jharkhand for the last 30 year and created consumer awareness about
pouch milk in different milk markets Jharkhand. Even today, Sudha is the sole flag bearer of
quality pouch milk in Jharkhand with rest of open space filled busy local players.
Civilizations began to use milk as a source of nourishment around 8000 BCE. Although animals
used for milk include cattle, goats, sheep, horses, buffalo, yaks, donkeys and camels, cow’s milk
is one of the mildest tasting mammalian milks and the most popular.
No culture has ever habitually consumed milk from an animal that didn’t live on grass/leaves, as
flesh-eating animals secrete milk with an odd flavor that most people don’t fancy. Most flesh eating
animals also give birth to a litter (think dogs and pigs), which means the mammary system is spread
along the length of the torso. Translation: Milking is difficult with big, clumsy human hands.
Cheese is said to have been discovered by an Arab nomad travelling across the desert during the
Neolithic period with milk in a container made from an animal’s stomach. The enzymes in the
stomach curdled the milk.
Fast forward to the 1800s & 1900s when our relationship with dairy cows changed. Populations
increased and the importance of calcium and phosphorus for skeletal health became evident. Milk
was promoted by public education campaigns and doctors as a rich source of these minerals.
Doctors considered milk as an “indispensable” component of a child’s diet based on this
association. The industry responded to the demand and milk came from cows crowded into dirty
milking sheds. Lots of cows, lots of dirt, and little space meant sick cows.
There was concern of a milk-borne epidemic as this new form of unhygienic milk production took
precedence. Dairy farmers tried sterile bottling and disease testing on cows, but problems
persisted; thus, pasteurization and refrigeration became common after 1900.
"Operation Flood started the White Revolution in India and made our country self-sufficient in
milk and this was achieved entirely through the cooperative structure. Today around 12 million
farmers in more than 22 states across the country own around 250 dairy plants handling around 20
million liters of milk a day. This is a remarkable achievement. While we in India tend to take our
achievement for granted, this feat elicited high praise and admiration throughout the world.
"In 1955 our butter imports were 500 tons per year; today our cooperatives alone produce more
than 12,000 tons of butter. Similarly, we imported 3000 tons of baby food in 1955; today our
cooperatives alone produce 38,000 tons of baby food. By 1975 all imports of milk and milk
products stopped. The import permitted was that of food aid under Operation Flood.
"A separate agency called as the Indian Dairy Corporation (IDC) was created to receive grants of
food aid and use it in the Operation Flood, this agency was also headed by the marvelous Dr.
Verghese Kurien." "Milk powder production increased from 22,000 tons in the pre-Operational
Flood year to 1, 40,000 tons by 1989.
"In 1998 the World Bank published a report on the impact of dairy development in India and
looked at its own contribution to this. The audit revealed that of the Rs 200 crore the world bank
invested in Operation Flood, the net return on India's rural economy was a massive Rs. 24,000
crore each year over a period of 10 years to which no other dairy programed has ever matched.
"Moreover when Amul started there were so many competitors in the market like Polson and other
foreign players but Amul stood the test of time and over the years emerged as India's favorite."
1.1 STATEMENT OF THE STUDY
Sudha is the producer of milk and various milk product and prepare a budget estimating the various
expenses and income for each financial year, on the basis of consumer satisfaction. The budget is
prepared by the accounts department of in consultation with the various other departments.
However, the estimated figures does not match with the actual figures always. Milk procurement
is based on consumers. It is almost impossible to predict the exact figures and so deviations are
bound to occur. Thus, it become necessary to identify the consumers satisfaction and analysis
them. Thus, this study focuses on the calculation of the consumer’s satisfaction and ascertaining
the reasons for the same.
1.2 OBJECTIVES OF THE STUDY
 To identify the market share and potential of Sudha Dairy in Bokaro and Dhanbad and
its satellite area.
 To analyze product and market strategy of Sudha Dairy
1.3 SCOPE OF THE STUDY
The scope is limited to extent of the place, time, organization and their information collected
during the project. It is done as a part of academic study. The scope of the study limited information
supplied by the Department Head and information collected by standing order and settlement to
the academic knowledge gained by the student during of the course.
1.4 LIMITATIONS OF THE STUDY
The study is not proposed to be an expert study as it was done by a student for the purpose of a
partial fulfillment of the course in the in plant training, which is an integral part, in completion and
reward of MBA. The study was conducted in short period of six week, and so the finding cannot
be generalize for all times. Some of the information’s being confidential was not included in the
study. The scope of the study by and large is very vast. It is difficult to satisfy all the areas;
therefore an attempt is made to cover as much as possible.
CHAPTER II
REVIEW OF LITERATURE
2.1 INDUSTRY PROFILE
The Bihar State Milk Co-Operative Federation Ltd. (COMFED) was established in 1983 as the
implementing agency of Operational Flood (OF) programed of dairy development on “Anand”
pattern in Bihar. All the operations of erstwhile Bihar State Dairy Corporation were handed over
to COMFED.
Till the end of programmer in March 1997, there were five district level Milk Producers'
Cooperative Unions covering eighteen districts of Bihar. The dairy development work continued
and at present there are eight district level milk unions covering thirty three districts of Bihar.
Comfed develops the districts first in terms of dairy development coupled with capacity
development of milk producers to shoulder broader responsibilities and then hands over the entire
operations to the representatives democratically elected by the milk producers.
Comfed is serving the consumers of Jharkhand also and there are three dairies at Bokaro, Ranchi
and Bokaro. These dairies are serving a good number of towns and cities of Jharkhand in Ranchi,
East & West Singhbhoom, Hazaribagh, Gumla, Khunti, Palamu, Lohardaga, Bokaro, Dhanbad,
Giridih etc. Sudha Milk and some products are now available in Delhi/NCR region and
Uttarakhand also apart from a number of towns and cities of U.P. and West Bengal.
The Farmer's Training Centre at Patna, Barauni and Begusarai provides training to the milk
producers and society functionaries in various aspects of dairying, clean milk production, society
operation, artificial insemination etc.
Bihar state co-operative milk union manufactures and markets the Sudha range of products, which
include toned Milk, Double toned milk, Standardized Milk, Full cream Milk, Curds, Ghee, Peda,
and butter milk. Liquid milk is the product of primary importance owing to its large volumes of
the four varieties of liquid milk Toned milk is the variety that captures greater volumes.
PEOPLE: - Marketing Department is mainly headed by Marketing Manager, who looks all the part
of the Marketing Department.
POLICIES: - As far as policy is concern Marketing Department follows the policy of enhancing
marketing which is necessary for the department.
SYSTEMS AND PROCEDURES: - Sales activities currently undertaken include obtaining
indents from the retailers consolidating them by routes and preparing necessary documentation for
the retailers of the indented goods from the finished goods section (FGS) on the following day.
Also, the field staff is expected to visit the retailers on the routes assigned to them on a regular
basic to ensure that service is proper a report any disturbances noted, to higher authorities. They
also deal with those who intend to become retailers of Sudha.
Sales activities include collecting Marketing information about the other brands that competitors
are selling with the union’s area and extend of penetration achieved by them. Also falling under
Intelligence activities. Intelligence activities are the function of keeping watch on retailer, who
violates norms of the Sudha products.
2.2 COMPANY PROFILE
Bokaro Dairy, a unit of Bihar state Co-operation Milk Producers Federation Limited (COMFED),
with infrastructure of Processing 25,000 liters, Milk per day was commissioned in January 1984.
The dairy was set up to cater the need of the urban population, the of good quality milk at a
reasonable price. The dairy in a very short period achieved sale of 25,346 liters. Milk per day by
the year 1988-89 i.e. 101% of the installation capacity. The expansion of the dairy from 25,000
liters, per day to 1, 00,000 liters milk per day was done in June, 1991. Today the dairy is marketing
on average 85,000 liters milk per day. We are working on to increase sale from to 64000 thousand
liters/day in the marketing year 2014-15.
The Dairy follows strictly the international norms of hygiene & good manufacture practices
recommended by Codex Alimentations Commission in reception, processing, manufacturing,
packaging, storage & transport In order to ensure a safe, sound & wholesome product reaching the
customer.
A. Dairy at a Glance
Year of establishment: January 1984
Brand name: “SUDHA”
Present handling capacity: 1, 00,000 LPD
Registered handling capacity: 1, 00,000 LPD
Milk storage capacity: 1, 80,000 liters
Year of HACCP & ISO certification: 19.04.2002
License number: QSC/L-5000787.1
Name of the ISO & HACCP agency: BIS
B. Features of Marketing in Sudha Dairy
a. Marketing areas Satellite area:
Bokaro
Satellite area:
Nirsha
DHANBAD
Maithan
Bhuli Sindri Katrash Angarpathar
GIRIDIH
Dhanwar Dumri Paratdih
GOMO
GOBINDPUR
JHARIA
*Number of functional retailers: 424
*Number of whole day milk parlors 13
*Number of dealer/distributor (liquid milk) 09
b. List of products in Sudha dairy
PRODUCTS PACK SIZE
LASSI POUCH 200ml
PANEER PACK 200gm & 1 kg
SUDHA COOL BOTTLE 200ml
MISTI DOI PACK 100gm
FINESS CURD PACK 100gm & 250gm
PEDA PACK 100gm & 250gm
TONNED MILK POUCH 500ml & 1ltr
STD MILK POUCH 500ml & 1 ltr
2.3 PREFACE
A. Marketing management
Marketing Management is a business disciplines which is focused on the practical application of
marketing techniques and the management of a firm’s marketing resources and activities. Rapidly
emerging force of globalization have compelled firms to market beyond the borders of their home
country making international marketing highly significant and an integral part of firm’s marketing
strategy. Marketing managers are often responsible for influencing the level, timing, and
composition of customer demand accepted definition of term. In part, this is because the role of
marketing manager may act as the overall general manager of his assigned product. To create an
effective, cost-efficient Marketing management strategy, firms must possess a detailed, objective
understanding of their own business and the market in which they operate. In analyzing these
issues, the discipline of marketing management often overlaps with related discipline of strategic
planning.
B. The 4 P’S of marketing
Elements of the marketing mix are often referred to as the four P’s.
a. Product:-
A tangible object or an intangible service that is mass produced or manufactured on a
large scale with a specific volume of units. Intangible products are service based like the tourism
industry & the hotel industry codes based products like cell phone load and credits. Typical
example of mass produced tangible object are motor car and the disposable razor. A less obvious
but ubiquitous mass service is a computer operating system. Packaging also needs to be taken into
consideration.
b. Price:-
The price is the amount a customer pays the product. It is determined by a number of factors
including market share, competition, material cost, product identify and the customer’s perceived
value of the product. The business may increase or decrease the price of product if other stores
have the same product.
c. Place:-
Place represent the location where a product can be purchased. It is often referred to as the
distribution channel. It can include any physical store as well as virtual stores on the internal.
d. Promotion:-
Represents all of the communication that a marketer may use in the market place.
Promotion has distinct element: advertising, public relations, onward of mouth and point of sale.
A certain amount of crossover occurs when promotion uses the four principal elements together,
which is common in film promotion. Advertising covers any communication that is paid for, from
cinema commercials, radio and internet advert through print media and billboards. Public relations
are where the communication is not directly paid for and includes press release, sponsorship deals,
exhibitions, conference, seminars or trade fair and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied customers or people
specifically engaged to create words of mouth momentum. Sales staff often plays an important
role in word of mouth and Public relation (see Product above) today there are many approaches of
marketing mix enlargement. Just the 4 P cannot describe all possibilities and needs; a company
has to deal with when thinking about itself and the market. To fulfill all different point of views,
markets and marginal studies, there are still more P relevant. Some of them are:-
Packaging Partner
People Project
Public voice
Pamper
Politics
Physical Evidence
C. Marketing Strategy
If the company has obtained an adequate understanding of the customer base and its own
competitive position in the industry, marketing manager are able to make their own key strategic
decision and develop a marketing strategy designed to maximize the revenues and profits of the
firm. The selected strategy may aim for of specific objectives, including optimizing short term unit
margin, revenues growth, market share, long term profitability, or other goals.
To achieve the desired objectives, marketers typically identify one or more target customer
segments which they intend to pursue. Customer segments are often selected as targets because
they score highly on two dimensions:-
a. The segment is attractive to serve because it is large, growing, makes frequent purchases,
is not price sensitive (i.e. is willing to pay high price) or other factors., and
b. The company has the resources and capabilities to competition to complete for segment’s
business, can meet their needs better than the competition, and can do so profitability. In
fact, a commonly cited definition of marketing is simply “meeting needs profitably.”
The implication of selecting target segments is that the business will subsequently allocate more
resources to acquired and retain customers in the target segments than it will for other, non-targeted
customer who are not in its target segment. The doorman at a swanky nightclub, for example, may
deny entry to unfashionably dressed individuals because has made a strategic decision to target the
“higher fashion” segment of nightclub patrons.
2.4 Marketing objective of Bokaro dairy
The Bokaro dairy unit has adopted some of the marketing objectives for the improvement of “Fresh
milk products” and to capture the markets. The objectives of the dairy are:
 To give the consumers a better quality of milk and milk products at a reasonable price.
 To ensure maximum consumer satisfaction by extending proper service.
 To make arrangement for the availability of dairy products at every corner of the city &
satellite outlets possible.
 To supply products in time.
 To give the company’s products at an agreed satisfaction.
 To adopt quality management policy and systems with continual improvement.
 The management as well as the staff of Bokaro Dairy is working hard to maintain the
quality standards and improvement of dairy products.
A. Present Strategy of the dairy for production unit
 To reduce overhead expense.
 Increase better margin for profitability.
 To reduce quality product.
 To save maximum time by using efficient and modern techniques of products.
 To engage an efficient and skilled workforce in the production unit.
B. Marketing strategy of Bokaro Dairy
a. Mapping of market to increase sale
In the year 2001-02, the number of retail outlets was 330 in Bokaro dairy has 447 retail outlets
across Bokaro. A regular market visit was made specifically to these new retailers and their
problems were carefully solved. This helped the retailers to establish themselves. In this event,
sale continuously increased. While appointing the retailers, the preference was given to grocery
shop owners so that the ‘fresh milk products’ could be made available for a longer period and easy
accessibility of the consumer be ensure.
b. Relationship Building
Advertising build brand and attracts customer while building relationship retains customers and
enhances brand equity. This is more true in a competitive market, where in a whole lots of brands
started pouring in, giving the customer their right choice to choose from. In such a scenario, all the
posturing & lip service paid to relationship building will only stared losing a customer because, it
is almost 5 time difficult “to enroll a new customer than to lose loyal one”. And the dairy’s motto
is “it takes years to retain a customer... and second to lose one”. To strengthen the bandage of
company with retailer, of weekly route meeting, preferably on Sunday is kept to listen their
problems and address the same, irrespective the gravity of complaints. The views and suggestion
for further augmenting the sale are also discussed. Invariably, the meeting is attended by Chief
Manager, marketing in charge, Asst. Marketing Manager and related marketing and production
staff to share their views.
This approach, made by the dairy is not to catch hold of the satisfied customers and retailers, but
also they will be walking talking advertisement of the products.
2.5 Milk Procurement of Sudha Bokaro
Semi processed milk is transported from 4 places of North Bihar to the Bokaro plan. These are:-
Sl.
No
Source Mode of transport Milk Volume in Litters
1 BARAUNI RAIL/ROAD 35000
2 ARA ROAD 25000
3 SAMASTIPUR ROAD 15000
4 BHAGALPUR ROAD 5000
Mainly is daily transported from Barauni plant. But it takes 2 days for the milk to reach Jamshedpur
from other 3 plants due to bad shape of road connectivity in the region. The deficit amount of milk
is fulfilled through the SMP. The milk is supplied directly from the plant to the market through the
vehicles (mainly 407) arrangement by dealers. Some of the dealers have their own small vehicles
to distribute in the mirror markets of the city. Distribution to retails outlet as well as the dedicated
outlets is handled by the same distribution.
The dealership is given through tender call which is for the least 3 years of time. Security deposit
varies from Rs 1-2 lacks based on the location of the route. Order booking is done over telephone
or personal visit to the plant by the leaders. They deposit cash in advance in Sudha’s bank account
against which the invoice is raised. On holy days and Sundays, the dealers deposit the cash at the
plant office or by the demand draft. Similarly, retailers pay cash in advance at the dealer’s office
against which the booking is done for the next day. So the dealer is dedicated by Sudha office in
the same time retailers are dedicated by the dealers which shows a monopoly of kind of Sudha in
the market. Sudha directly supplies milk to some of the MFS store and institutions from its plant
through its hired vehicles.
2.6 Dealership appointment to Bokaro and Dhanbad and its satellites towns
Bokaro dairy’s main marketing strategy is focus on local markets as well as city market. Bokaro
dairy has generated to the market at optimum level (retail universe-447, covering all possible
strategic location across Bokaro city). To maintain further a growth of 15% per annum in local
market in coming year would be at the higher administration cost because the dairy is in the last
phase of growth and early phase of maturity. In such a phase, marginal cost would lesser, compared
to hire in put in, affecting the financial help of the organization.
Keeping this is view; dairy has decided to focus now on the satellite town. Through dairy has its
present in this towns but an opportunity still exit to expand the market, further but at the sometime
dairy does not 12 increase the overhead cost in comes of deployment of more manpower.
Therefore, it was through prudent to appoint dealer having financial power and business acumen
to expand the market for Bokaro dairy.
Appointment to Dealers
At present dairy is having 30 dealers for the distribution of fresh milk products”
Dairy appoints the dealers for one year generally on contract basis.
2.7 Major dairy product manufactures in India
Some of the major dairy product manufacture in the country.
Company Brands Major Products
Nestle India Limited Milk, Cereals’, Lactogen,
Milo, everyday
Sweetened condensed milk,
malted food, milk powder and
dairy whitener.
Smith line Beecham Limited Horlicks, Maltova, Viva Malted milk food, ghee,
butter, powder milk, milk
fluid and other milk base baby
foods.
Indodan Industries Limited Indana Condensed milk, skimmed
milk, milk powder,
Gujarat Co-Operative milk
Marketing Federation limited
Amul Butter, Cheese and other Milk
food
H.J. Heinz Limited Farex, Complain, Glactose,
Bonnie mix, Vitamin
Infrant milk food, malted milk
food
Britannia Milkman Flavored milk, cheese, milk
powder, food
Cadbury Bournvita Malted food
A. Market size and growth
Market size for milk (sold in loose/packaged from) is estimated to be 36mn MT valued at
Rs.470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus
states in India are Utter Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka and Tamil Nadu. The manufacture of milk products is concentrated in these
milk surplus states. The top 6 states viz. Utter Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil
Nadu and Gujarat together account for 58% of national production.
Milk production grew by mere 1% per annum between 1947 and 1970. Since the early 70’s, under
Operation Flood, production growth increase significantly averaging over 5% pa.
About 75% of milk is consumed at the household level which is not a part of commercial dairy
industry. Loose milk has market in India as it is perceived to be fresh by the most consumers. In
reality however, it poses a higher risk of adulteration and contamination.
The production of milk product, i.e. milk products including infant milk food, condensed milk %
cheese stood at 3.07 lakh MT in 1999. Production of milk powder including infant milk-food has
risen to 2.25 lakh MT in 1999, whereas that of malted food is at 6500 MT. Cheese and condensed
milk production stands at 5000 and 11000 MT respectively in the same year.
B. Major Player
The packaged milk segment by dominated by the dairy co-operatives. Gujarat co-operatives Milk
Marketing Federation (GCMMF) is the largest players. All other local dairy cooperatives have
their local (For e.g. Gokul, Warana in Maharashtra, sares in Rajasthan, Verka in Andhra Pradesh,
Aavin in Tamil Nadu, ect). Other private players include J K Dairy, Heritage Foods, Indian Dairy,
Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt
and is facing liquidation.
2.8 Marketing department structure
A. Marketing Strategy of Bihar State Milk Co-operative Federation Production:
We can study the four main elements under the product mix that is as follow: -
Product range
Branding
Packing
Price
a. Product Range:-
Product Range plays a vital role in any organization it is the heart of the market
mix. Without a product, there is nothing to sell or nothing to promote. If the product fails to satisfy
consumer demand, the organization will fail, but in Bihar State Milk Co-operative Federation,
the products are satisfied to consumers by introducing new varieties of milk. It represents the
goodwill of Sudha in Bihar & Jharkhand.
b. Branding:-
Sudha is the brand name of Milk & Milk products, which manufacture & market by
Bihar state milk co-operative federation. Sudha has earned name for pure and quality products,
which has capture the minds and hearts of Bihar & Jharkhand.
c. Packaging:-
Bihar state milk co-operative federation milk is packed in polythene covers, milk
products are packed in paper boxes and Ghee is covered in polythene covers.
d. Price:-
In the developing countries like Indian most of the consumers always decide on the basis
of pricing for purchasing of any commodity on its cost. Bihar state milk co-operative federation
fixes the price with suggestion from the union. The pricing structure should therefore ensure that
production of Milk is encouraged and the farmers get a remunerative return for their milk. The
system should also ensure better incentive and quality of milk.
The pricing structure for the farmers are paid based on FAT & SNT content in the milk sold by
them the price of milk products are fixed by Bihar State milk co-operative federation.
Price list of Product’s
NAME OF THE PRODUCTS PRICE
Lassi (pouch 200ml) Rs.15.00
Paneer (200gm) Rs.55
Plain Doi Rs.12 & Rs.24
Misti Doi (pack 100g) Rs.14.00
Fitness curd (pack 200g, 500g) Rs.13.00 & 28.00
Sudha Standard milk (500ml &1ltr) Rs.19.00 & 38.00
Sudha Double toned milk Rs.16
Sudha toned milk (500ml, 1ltr) Rs.18.00 & 34.00
B. Marketing Activities
The marketing of the milk and milk product is being done by a cell headed by office of marketing
manager rank. Since the marketing milk was less, no much of endeavors were made to strengthen
it.
There is a limited scope of liquid milk marketing in local area; therefore, the union the main
suppliers of liquid milk to the South Bihar Dairies.
The closest competitors with regard to market share quality of milk, price and goodwill is Local
Vendor.
a. Promotion Mix:
Promotion is a major tool for any company; it is a powerful tool for facing the competition
providing the cutting edge to entire marketing program. People must be informed that right product
is available at the right product is available at the right time and right quantity. They must be
motivated and induced to purchase the products. This is done through sales promotion. There are
two wings in sales promotion:-
Advertising
Salesmanship
i. Advertising:
An identified sponsor defines advertising as any paid from non-personal presentation and
promotion of idea good services. Major advertises work is carried by Bihar Milk Co-operative
Sudha cream milk Rs.23
Peda (Pack 100g & 250 gm) Rs.18.00 & 42.00
Federation it looks after all the activities. It advertises the products through Television, Newspaper
and Radio.
Bihar state milk co-operative federation also advertises the products in local Newspaper, Handbills
and in local channel in TV & Wall painting.
ii. Salesmanship:
Bihar state co-operative federation sells the milk & milk products in four states, the present
approximate sales are as follows:-
110000 liters of milk per day
40 kg peda per day
3000 kg curd per day
10 to 20 tons of ghee per month
C. Field officers duties and responsibilities:
Field officers are appointed to look after the smooth operation and attending the customer
complaints and market development activities and sales promotion activities there are three
responsibilities of field officers they are as follows:-
Sales Promotion
Consumer Education
Marketing information & Marketing intelligence
a. Sales Promotion:-
The major task of the field officers is to promote the products and take up sales promotional
activities, identifying the channel partners and conducting sales promotion campaigns and setting
target for dealers.
Steps taken to increase the milk sales
Fixing up of sales targets to the agents and parlors.
Opening of milk parlors in the area wherever needed.
Giving agency to right person who can project the correct image of the dairy. Regarding quality
and timing supply.
Giving prompt attention to the problem and complaints of the consumers.
Steps taken to increase commission to 20paisa/liter to encourage the sales.
Introduce standard milk for sales as per the market survey report.
We have ensured timely supply of milk even in the evening shift in the major cities.
b. Consumer Education:-
Education the consumer about the ill health caused by consuming non-pasteurized milk and
education about the usage of milk.
c. Marketing Information and Marketing Intelligence:-
Collection the information from the market about the product and preparing day-to-day reports
and forwarding it to marketing department and keeping eye on the competitor.
D. Test Marketing:-
Test marketing was conducted while introducing 200ml packet of Sudha milk. While introducing
any milk & milk products the union conducts the test marketing activities.
a. Incentive, Discounts & Allowance:-
The marketing head, in consultation with the managing director of union, will take the major
decision and percentage will be fixed.
b. Procedure adopted is as follows:-
i. By analyzing the market. Requirement and demand the dealer’s requirements for that
particular area decided by field officers and marketing officers.
ii. Application areas are requested to put their willingness for dealership by personnel
contact.
iii. Application is scrutinized and the dealers are selected on their basic of their ability in
all respect.
iv. The dealer has to execute an agreement with Bihar state co-operative milk union and
hence they become the authorized dealers.
v. Marketing field officer during their visits ensures timely and proper distribution of milk
products to the dealers and provides feedback for the marketing division for further
corrective action.
vi. If any complaints, from the consumers or dealers are redressed by marketing assistants
on the sport and sorted out and if quality problem about the product are referred to the
plan for corrective action.
vii. Dealers meet are arrange twice in a year to address their grievance suggestions for
improving sales.
viii. In addition the marketing field assistants ensure the proper distribution of milk & milk
products to the consumer by dealers.
c. Training to marketing field officers:-
Timely advice and training will be given to the marketing field officer field officers by the
marketing head and the field officers are sent to various training program conducted by NDDB &
other institution.
Strategies to achieve the sales targets
 Rescheduling Existing route.
 Trap new potential market.
 Introducing new outlets.
 Renovation of whole day milk parlor with ACP.
 More meeting with Distributors & Retailers for better co-ordination & service
enhancement.
 Strengthening of present supply channel.
 Focus on non Sudha milk users.
 Back up supply.
Introducing New Outlets
 To increase availability of milk at customer’s door step.
 To control the overcharging.
 To avoid any shortage of milk and milk product in the market.
 Increase new business partners.
2.9 SWOT Analysis of Sudha
Strengths
 Strong brand image & name
 Strong presence
 Strong distribution network
 Government support
 Good procurement potentially in the market
 ISO certified dairy
 Government aid for full time parlors.
Weakness
 Governmental board takes long time to pass decision on concern stand high demand
periods.
 Lesser margin offered to retailers.
 Most of the plant machineries are old, traditional & difficulty to stand high demand periods.
 Facing problem in maintaining the quality throughout the year.
Opportunities
 Huge market potential.
 No branded player in the market with strong presence.
 Acquisition of local for supply.
Threats
 Launching of NEW BRAND in these in these markets can destroy its market share.
 Logistics from far flung areas to major place.
 Switching cost is really low in the pouch milk market.
 Shortage of water the production process weak. This is a mainly problem summer.
CHAPTER III
RESEARCH METHODLOGY
Research design: This study designed as a descriptive one.
Sources of data: Study is based on both primary data and secondary data.
Primary data: The primary data required for the study were collected from respondents through
questionnaire.
Secondary data: The secondary data mainly consist of data gather from company record and
websites, secondary data were also complied from journals, magazines and books.
Population: The general public during the survey the response from 100 customers were taken.
Also include response from reputed dealer of milk and its product in Bokaro and Dhanbad.
Method of selection: Purposive sampling
Analytical tools: Percentage method were used to analysis.
CHAPTER IV
ANALYSIS AND INTERPRETATION
This chapter covers the analysis and interpretation of collection of data from various Customers
those who are using Sudha milk and milk product. The sample size 100.
Table 4.1 Do we satisfy your daily requirement of milk and milk product
Serial No. No. of respondents Percentage (%)
Poor 0 0
Satisfy 8 8
Good 92 92
Total 100 100
Fig. 4.1 Do we satisfy your daily requirement of milk and milk product
ANALYSIS: The above table and graph indicates that- 92% of respondents are feel good about
requirement of Sudha milk and milk product and 8% of respondents are satisfy with requirement.
0
20
40
60
80
100
120
Poor Satisfactory Good
Series 3
Series 2
Series 1
Table 4.2 Do we satisfy you supply of milk product as per you expectation on quality
Serial No. No. of respondents Percentage (%)
Poor 0 0
Satisfy 10 10
Good 90 90
Total 100 100
Fig. 4.2 Do we satisfy you supply of milk product as per you expectation on quality
Analysis: From the above analysis it is interpreted that 10% of consumers satisfy with the supply
of milk product and 90% of consumers are respond good for supply of milk product.
0
10
20
30
40
50
60
70
80
90
100
Poor Stisfactory Good
Series 3
Series 2
Series 1
Table 4.3 Do we supply you milk & milk products timely in the morning and evening
Serial No. No. of respondents Percentage (%)
Poor 4 4
Satisfy 20 20
Good 76 76
Total 100 100
Fig. 4.3 Do we supply you milk & milk products timely in the morning and evening
Analysis: 4% of consumers give poor response, 20% of consumers are satisfy with and 76% of
consumer respond good on supply of milk and milk products timely on morning and evening.
0
10
20
30
40
50
60
70
80
90
Poor Satisfactory Good
Series 3
Series 2
Series 1
Table 4.4 Do you feel that milk & milk Products are priced suitable
Serial No. No. of respondents Percentage (%)
Poor 0 0
Satisfy 32 32
Good 68 68
Total 100 100
Fig. 4.4 Do you feel that milk & milk Products are priced suitable
Analysis: The above table and graph indicates that- 68 % of consumer response good and 32 %
are satisfy with milk and milk product price is suitable.
0
10
20
30
40
50
60
70
80
Poor Satisfactory Good
Series 3
Series 2
Series 1
Table 4.5 Do you listen to your complaints, if any, patiently
Serial No. No. of respondents Percentage (%)
Poor 5 6
Satisfy 36 36
Good 59 59
Total 100 100
Fig. 4.5 Do you listen to your complaints, if any, patiently
Analysis: From the above table and graph it is clear that 5 % of consumer feel poor, 36 % are
satisfy and 59% are response on good about retailer are listen his complain.
0
10
20
30
40
50
60
70
Poor Satisfactory Good
Series 3
Series 2
Series 1
Table 4.6 Do we redress your complaints
Serial No. No. of respondents Percentage (%)
Poor 5 5
Satisfy 19 19
Good 76 76
Total 100 100
Fig. 4.6 Do we redress your complaints
Analysis: 76% of consumer response on good, 19% consumer response on satisfy and 5% give
a poor response for the retailer not giving his reply.
0
10
20
30
40
50
60
70
80
90
Poor satisfactory Good
Series 3
Series 2
Series 1
Table 4.7 Do we give you information you need
Serial No. No. of respondents Percentage (%)
Poor 2 2
Satisfy 39 39
Good 59 59
Total 100 100
Fig. 4.7 Do we give you information you need
Analysis: The above graph and table it is clear that 59% consumers of respondents on good, 39%
are satisfied and 2% consumers give a poor response for getting information about anything.
0
10
20
30
40
50
60
70
Poor Satisfactory Good
Series 3
Series 2
Series 1
Table 4.8 Do we answer your queries promptly and politely
Serial No. No. of respondents Percentage (%)
Poor 2 2
Satisfy 34 34
Good 64 64
Total 100 100
Fig. 4.8 Do we answer your queries promptly and politely
Analysis: From the above table and graph 2% of consumer give response poor, 34 % are satisfy
them and 64 % are response good for answering the question punctually or graciously.
0
10
20
30
40
50
60
70
80
Poor satisfactory Good
Series 3
Series 2
Series 1
Table 4.9 Do we fulfill your additional requirement in festival
Serial No. No. of respondents Percentage (%)
Poor 0 0
Satisfy 5 5
Good 95 95
Total 100 100
Fig. 4.9 Do we fulfill your additional requirement in festival
Analysis: From the above table and graph 95% consumer response on good, 5% are satisfy them
fulfillment of the additional requirement of milk and milk product in festival.
0
20
40
60
80
100
120
poor Satisfactory Good
Series 3
Series 2
Series 1
CHAPTER V
FINDING AND SUGGESTION
5.1 FINDING
1. In Dhanbad areas, the consumers are very much satisfied with the fulfillment of their daily
requirement of milk & milk products. This is very good sign for Bokaro dairy.
2. Regarding quality expectation, there was mixed responses from the consumer satisfaction
from the service of Bokaro dairy in both areas.
3. In both areas some respondents said that the Retailers do not answer their queries promptly.
4. According to few respondent’s they do not get the information they need about the
products. This must be due to the retailers.
5. The respondents in Dhanbad & local area are very much satisfied with supply for their
additional requirements during festivals. This indeed is very positive sign for the dairy.
6. Some products of Sudha are not available in Dhanbad & local area.
SUGGESTION
1. To encourage interaction with the consumers, Bokaro dairy can organize a cooking
competition in the different-different colonies involving the housewives. This will
help the dairy to get closer to the consumers & will also helpful in providing vital
information to the consumers.
2. The dairy should chart out some plan to get regular feedback from the consumer as
well as retailers. This can be done through creating an e-mail id and providing it to
the consumers so that they can directly mail their feedback and complaints.
3. The dairy should arrange for meeting of the retailers and distributors to increase the
co-ordination among them.
4. Home delivery system for supplying milk and products by major portion of retailers
needs to be increased for enhancing the sale and market.
5. In all areas, some prime retail location may be marked and these may be converted to
model retail outlets and treated as whole day milk parlor.
6. The distributors & retailers who achieve the expected targets may be awarded and
some incentives may be given to them boost morale.
7. To boost up the field supervisor, they might be awarded for efficient performance.
8. The dairy should arrange for meeting of the retailers & distributors to increase the co-
ordination among them.
9. A periodic survey may be done about the giants companies in the industry for
strategic planning.
10. Bokaro dairy may organize events like quiz, debate, art competition etc., be in the city
school and award the winning students. In this event, Sudha products may be
distributed to the students. This would help to increase brand awareness.
CHAPTER VI
CONCLUSION
India is the world’s highest milk producer and all set to become the world’s largest food factory.
In celebration, Indian dairy sector is now ready to invite NRIs and foreign investors to find this
country a place for the mammoth investment projects. Be it investor, research, entrepreneurs, or
the merely curious-Indian Dairy sector has something for everything. Sudha has been major
supplies of milk in Jharkhand in last 30 years and creates consumer awareness about pouch milk
and milk products in different milk market in Jharkhand & Bihar. Even today, Sudha is the sole
flag bearer of quality pouch milk and milk products in Jharkhand with rest of open space filled by
local players. Bokaro dairy has grown every moment since its birth and the process is still on. With
its innovative ideas, it has always satisfaction and attracted its Retailers. The main focus of Bokaro
dairy is distributor & retailers satisfaction. It has always given important to retailer preference and
demand. Probably this is why it is today’s market leader.
The effective marketing strategies help the dairy help reach maximum number of retailer.
Innovating and effective marketing is the most important aspect in the increasing popularity of
Sudha. Sudha has never compromised with its quality of the products. Product quality is the main
focus of Bokaro Dairy. Bokaro dairy user all possible techniques of product promotion. The
distribution channel is also very good. It has created a strong brand image in its 27 years of gory.
All the 4 P’s of marketing mix are well exploited by the dairy. A proper product, price, promotion
and place selection helped the dairy become what it is today. The SWOT analysis of dairy says
that there are many strangers and opportunities of the company. I am sure they will exploit them
well. Taking about the threats and weak and weaknesses, there are not many of them and those
will also disappear in the future.
Bokaro Dairy has always represented a good organization culture and the staffs are well trained,
efficient and dedicated. The sales bar has always looked up and so did the profit bar. This proves
the efficiency, hard work and dedication of the company ever since it came into existence. The
success story of the company ever since it came into existence. The success story of the company
is worth appreciating.
Marketing says that a company sells and markets two different things. For example, a car company
sells cars but it markets freedom and comfort. On this note, we can say that SUDHA sells milk
and milk products, but it markets goods health, fitness and happiness.
BIBOLOGRAPHY
Books:-
 Philip Kotler……………. “Marketing Management”
 Naresh K. Malhotra…... “Marketing Research”
 Britt and Boyd (Ed)……. “Marketing Management and Administration”
 Michael J Etzel, Bruce J Walker, William J Stanton and Ajay Pandit (2005)
Marketing Concept and Cases (Special Indian Edition)
Weblogy
 www.sudha.coop
 www.scribd.com
 www.slideshare.com
Consumer satisfaction on sudha milk and Product

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Consumer satisfaction on sudha milk and Product

  • 1. CONSUMER SATISFACTION ON SUDHA MILK & SUDHA PRODUCT IN BOKARO AND DHANBAD SHUDHA DAIRY PROJECT REPORT Submitted to the Pondicherry University in partial fulfillment of the requirement for the award of the degree of the degree of MASTER OF BUSINESS ADMINISTRARION (INTERNATIONAL BUSINESS) Submitted by VISHAL KUMAR Register No: 14382064 Under the supervision and guidance of Dr. M. BANUMATHI ASSOCIATE PROFESSOR DEPARTMENT OF INTERNATIONAL BUSINESS DEPARTMENT OF INTERNATIONAL BUSINESS SCHOOL OF MANAGEMENT R.Venkatraman Nagar, Kalapet, Puducherry-605014
  • 2. CERTIFICATE OF THE GUIDE This is to certify that the Project Work entitled “Consumer satisfaction on Sudha Milk & Sudha Product in Bokaro & Dhanbad” is a bona-fide work of Mr. Vishal Kumar (Roll No:14382064) carried out in the partial fulfillment for the award of degree of MBA (International Business) of Pondicherry University under my guidance. This project work is original and not submitted earlier for the award of any degree / diploma or associateship of any other University / Institution. Dr. M. Banumathi Dr. P. Sridharan Associate Professor HOD and Associate Professor Department of International Business Department of International Business
  • 3. DECLARATION I, VISHAL KUMAR hereby declare that the Project report entitled “Consumer satisfaction on Sudha Milk & Sudha Product in Bokaro & Dhanbad” in Bokaro and Dhanbad is the outcome of my summer practical training from 26th May- 7th July- 2014 with the company. It is the original work done by me and submitted to the Pondicherry University in partial fulfillment of requirements for the award of degree Master of Business Administration in International Business. This report is not submitted to any other university/ institution, either in full or in part, for the award of any degree/ diploma earlier. PLACE: Vishal Kumar DATE: Roll No.: - 14382064
  • 4. Acknowledgement It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception. On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages. Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project. I would like to give my deep sincere regard to Dr. M. BANUMATHI (Associate Professor, Department of International Business, Pondicherry University) and others who helped me in the successful completion of the project and preparation of the report. I would like to owe debt of gratitude to Sri Bhopal Ji Sahay (Chief Executive, Bokaro Dairy) for giving me the opportunity to gain exposure in the organization. I would like to express my sincere thanks to Mr. BIPIN GUPTA (Company Guide and Marketing Manager of Bokaro Dairy, Bokaro Steel City), who imparted help support & experience even at the cost of busy schedule without this help it, would not have been possible to complete this project. I would also thank all distributors & all route agents for their continuous support. Lastly I would give special thanks to my parents & my teachers for their proper guidance. Thanks Vishal Kumar
  • 5. EXECUTIVE SUMMARY The training at Bokaro Dairy Project, COMPFED helped me to gain the practical experience and the study conducted by me centers around the importance and position of different dairy industries. A thriving dairy sector is of vital importance to every person specially farmers. It provides milk, Ghee, Cheese other products to every person. It provides a source of income to rural and urban enterprises and productive individuals and also a way for the farmers to make their living standard high. During my summer training in Bokaro Dairy Project, COMPFED, the basic focus of my training was on consumer satisfaction on Sudha milk and Sudha product in Bokaro and Dhanbad. Under this project I had to find out the different players carrying on business of liquid milk in Bokaro and also their market share in the same region. After that we had to make comparative analysis so that we can recommend suggestion to the Bokaro Dairy Project, COMPFED to increase its share in the market in Bokaro and Dhanbad. The training was quite a comprehensive one in itself.
  • 6. TABLE OF CONTENT Chapter No. Contents Page No. 1 INTRODUCTION 1.1 Statement of the study 1.2 Objective of the study 1.3 Scope of the study 1.4 Limitation of study 1-7 4 5 6 7 2 REVIEW OF LITERATURE 2.1 Industry Profile 2.2 Company profile 2.3 Preface 2.4 Marketing objective of Bokaro dairy 2.5 Milk procurement of Sudha Bokaro 2.6 Dealership appointment to Bokaro and Dhanbad 2.7 Major dairy product manufacturer in India 2.8 Marketing department structure 2.9SWOT analysis of Sudha 8-28 8 10 13 16 18 18 19 21 27 3 RESEARCH AND METHODOLOGY 29 4 ANALYSIS AND INTERPRETATION 30-38 5 FINDING AND SUGGESTIONS 5.1 Finding 5.2 Suggestion 39-40 39 40 6 CONCLUSION 41 BIBOLOGRAPHY 42
  • 7. CHAPTER I INTRODUCTION Milk is a unique marketing product due to its very perishable nature, unique sales timing, need of a very distribution networking and its sensitive usability. It is a complete food and due to its nutritional value is consumed by people of all ages especially children. Milk is highly attached with Indian’s emotional and religious value and cow is given equivalent status to mother just because it provides milk to human beings. Milk is provided to children in place of mother’s milk. So, it’s clear that people’s perception about the quality of a specific brand of milk becomes a very influential factor in the sales ability of the brand. This uniqueness of an unquantifiable influence of people’s perception of brand and quality on the sales makes marketing a real challenging marketing job. Milk is hand to mouth product and a significant proportion of it is consumed directly in is consumed directly in the households. Other consumption forms like tea, coffee, curd etc. are also almost direct consumption forms. So, people remain very sensitive about the purity of the milk they are consuming. Consumers, in general, quantify the quality of a product by looking, touching, testing and smelling it. Milk being a liquid and whitish in color has higher chance of getting adulterated. There are high chances of milk available in the market. All these factors combined make milk a product for which quality and purity of the milk consumed is mostly dependent on the trust on the supplier. Other than people’s perception of quality of a brand, availability is the second most important factor in marketing of a particular milk brand. As milk is more a commodity than a product, there are not many differentiating factors between different brands and switching cost is really low for consumers and therefore, brand loyalty is really very less. So, the logistic setup supporting the milk marketing operations has to be in place and any delay in the system would lead the consumers to shift to an alternate brand which guarantees regular supply. Milk market at every place has its own dynamic and traits, which are closely related to demographic profile, culture outlook and habits of the people staying there. So, the success of a particular milk brand in specific region will depend upon the fact that how specifically it understands the demands of specific markets and cater to it.
  • 8. Milk being a commodity of dairy necessary has its own peculiarities and dynamic. It’s a commodity which is needed to be supplied daily at correct time and place. Sudha has been the major supplier of milk in Jharkhand for the last 30 year and created consumer awareness about pouch milk in different milk markets Jharkhand. Even today, Sudha is the sole flag bearer of quality pouch milk in Jharkhand with rest of open space filled busy local players. Civilizations began to use milk as a source of nourishment around 8000 BCE. Although animals used for milk include cattle, goats, sheep, horses, buffalo, yaks, donkeys and camels, cow’s milk is one of the mildest tasting mammalian milks and the most popular. No culture has ever habitually consumed milk from an animal that didn’t live on grass/leaves, as flesh-eating animals secrete milk with an odd flavor that most people don’t fancy. Most flesh eating animals also give birth to a litter (think dogs and pigs), which means the mammary system is spread along the length of the torso. Translation: Milking is difficult with big, clumsy human hands. Cheese is said to have been discovered by an Arab nomad travelling across the desert during the Neolithic period with milk in a container made from an animal’s stomach. The enzymes in the stomach curdled the milk. Fast forward to the 1800s & 1900s when our relationship with dairy cows changed. Populations increased and the importance of calcium and phosphorus for skeletal health became evident. Milk was promoted by public education campaigns and doctors as a rich source of these minerals. Doctors considered milk as an “indispensable” component of a child’s diet based on this association. The industry responded to the demand and milk came from cows crowded into dirty milking sheds. Lots of cows, lots of dirt, and little space meant sick cows. There was concern of a milk-borne epidemic as this new form of unhygienic milk production took precedence. Dairy farmers tried sterile bottling and disease testing on cows, but problems persisted; thus, pasteurization and refrigeration became common after 1900. "Operation Flood started the White Revolution in India and made our country self-sufficient in milk and this was achieved entirely through the cooperative structure. Today around 12 million farmers in more than 22 states across the country own around 250 dairy plants handling around 20 million liters of milk a day. This is a remarkable achievement. While we in India tend to take our achievement for granted, this feat elicited high praise and admiration throughout the world.
  • 9. "In 1955 our butter imports were 500 tons per year; today our cooperatives alone produce more than 12,000 tons of butter. Similarly, we imported 3000 tons of baby food in 1955; today our cooperatives alone produce 38,000 tons of baby food. By 1975 all imports of milk and milk products stopped. The import permitted was that of food aid under Operation Flood. "A separate agency called as the Indian Dairy Corporation (IDC) was created to receive grants of food aid and use it in the Operation Flood, this agency was also headed by the marvelous Dr. Verghese Kurien." "Milk powder production increased from 22,000 tons in the pre-Operational Flood year to 1, 40,000 tons by 1989. "In 1998 the World Bank published a report on the impact of dairy development in India and looked at its own contribution to this. The audit revealed that of the Rs 200 crore the world bank invested in Operation Flood, the net return on India's rural economy was a massive Rs. 24,000 crore each year over a period of 10 years to which no other dairy programed has ever matched. "Moreover when Amul started there were so many competitors in the market like Polson and other foreign players but Amul stood the test of time and over the years emerged as India's favorite."
  • 10. 1.1 STATEMENT OF THE STUDY Sudha is the producer of milk and various milk product and prepare a budget estimating the various expenses and income for each financial year, on the basis of consumer satisfaction. The budget is prepared by the accounts department of in consultation with the various other departments. However, the estimated figures does not match with the actual figures always. Milk procurement is based on consumers. It is almost impossible to predict the exact figures and so deviations are bound to occur. Thus, it become necessary to identify the consumers satisfaction and analysis them. Thus, this study focuses on the calculation of the consumer’s satisfaction and ascertaining the reasons for the same.
  • 11. 1.2 OBJECTIVES OF THE STUDY  To identify the market share and potential of Sudha Dairy in Bokaro and Dhanbad and its satellite area.  To analyze product and market strategy of Sudha Dairy
  • 12. 1.3 SCOPE OF THE STUDY The scope is limited to extent of the place, time, organization and their information collected during the project. It is done as a part of academic study. The scope of the study limited information supplied by the Department Head and information collected by standing order and settlement to the academic knowledge gained by the student during of the course.
  • 13. 1.4 LIMITATIONS OF THE STUDY The study is not proposed to be an expert study as it was done by a student for the purpose of a partial fulfillment of the course in the in plant training, which is an integral part, in completion and reward of MBA. The study was conducted in short period of six week, and so the finding cannot be generalize for all times. Some of the information’s being confidential was not included in the study. The scope of the study by and large is very vast. It is difficult to satisfy all the areas; therefore an attempt is made to cover as much as possible.
  • 14. CHAPTER II REVIEW OF LITERATURE 2.1 INDUSTRY PROFILE The Bihar State Milk Co-Operative Federation Ltd. (COMFED) was established in 1983 as the implementing agency of Operational Flood (OF) programed of dairy development on “Anand” pattern in Bihar. All the operations of erstwhile Bihar State Dairy Corporation were handed over to COMFED. Till the end of programmer in March 1997, there were five district level Milk Producers' Cooperative Unions covering eighteen districts of Bihar. The dairy development work continued and at present there are eight district level milk unions covering thirty three districts of Bihar. Comfed develops the districts first in terms of dairy development coupled with capacity development of milk producers to shoulder broader responsibilities and then hands over the entire operations to the representatives democratically elected by the milk producers. Comfed is serving the consumers of Jharkhand also and there are three dairies at Bokaro, Ranchi and Bokaro. These dairies are serving a good number of towns and cities of Jharkhand in Ranchi, East & West Singhbhoom, Hazaribagh, Gumla, Khunti, Palamu, Lohardaga, Bokaro, Dhanbad, Giridih etc. Sudha Milk and some products are now available in Delhi/NCR region and Uttarakhand also apart from a number of towns and cities of U.P. and West Bengal. The Farmer's Training Centre at Patna, Barauni and Begusarai provides training to the milk producers and society functionaries in various aspects of dairying, clean milk production, society operation, artificial insemination etc. Bihar state co-operative milk union manufactures and markets the Sudha range of products, which include toned Milk, Double toned milk, Standardized Milk, Full cream Milk, Curds, Ghee, Peda, and butter milk. Liquid milk is the product of primary importance owing to its large volumes of the four varieties of liquid milk Toned milk is the variety that captures greater volumes. PEOPLE: - Marketing Department is mainly headed by Marketing Manager, who looks all the part of the Marketing Department.
  • 15. POLICIES: - As far as policy is concern Marketing Department follows the policy of enhancing marketing which is necessary for the department. SYSTEMS AND PROCEDURES: - Sales activities currently undertaken include obtaining indents from the retailers consolidating them by routes and preparing necessary documentation for the retailers of the indented goods from the finished goods section (FGS) on the following day. Also, the field staff is expected to visit the retailers on the routes assigned to them on a regular basic to ensure that service is proper a report any disturbances noted, to higher authorities. They also deal with those who intend to become retailers of Sudha. Sales activities include collecting Marketing information about the other brands that competitors are selling with the union’s area and extend of penetration achieved by them. Also falling under Intelligence activities. Intelligence activities are the function of keeping watch on retailer, who violates norms of the Sudha products.
  • 16. 2.2 COMPANY PROFILE Bokaro Dairy, a unit of Bihar state Co-operation Milk Producers Federation Limited (COMFED), with infrastructure of Processing 25,000 liters, Milk per day was commissioned in January 1984. The dairy was set up to cater the need of the urban population, the of good quality milk at a reasonable price. The dairy in a very short period achieved sale of 25,346 liters. Milk per day by the year 1988-89 i.e. 101% of the installation capacity. The expansion of the dairy from 25,000 liters, per day to 1, 00,000 liters milk per day was done in June, 1991. Today the dairy is marketing on average 85,000 liters milk per day. We are working on to increase sale from to 64000 thousand liters/day in the marketing year 2014-15. The Dairy follows strictly the international norms of hygiene & good manufacture practices recommended by Codex Alimentations Commission in reception, processing, manufacturing, packaging, storage & transport In order to ensure a safe, sound & wholesome product reaching the customer.
  • 17. A. Dairy at a Glance Year of establishment: January 1984 Brand name: “SUDHA” Present handling capacity: 1, 00,000 LPD Registered handling capacity: 1, 00,000 LPD Milk storage capacity: 1, 80,000 liters Year of HACCP & ISO certification: 19.04.2002 License number: QSC/L-5000787.1 Name of the ISO & HACCP agency: BIS
  • 18. B. Features of Marketing in Sudha Dairy a. Marketing areas Satellite area: Bokaro Satellite area: Nirsha DHANBAD Maithan Bhuli Sindri Katrash Angarpathar GIRIDIH Dhanwar Dumri Paratdih GOMO GOBINDPUR JHARIA *Number of functional retailers: 424 *Number of whole day milk parlors 13 *Number of dealer/distributor (liquid milk) 09
  • 19. b. List of products in Sudha dairy PRODUCTS PACK SIZE LASSI POUCH 200ml PANEER PACK 200gm & 1 kg SUDHA COOL BOTTLE 200ml MISTI DOI PACK 100gm FINESS CURD PACK 100gm & 250gm PEDA PACK 100gm & 250gm TONNED MILK POUCH 500ml & 1ltr STD MILK POUCH 500ml & 1 ltr 2.3 PREFACE A. Marketing management Marketing Management is a business disciplines which is focused on the practical application of marketing techniques and the management of a firm’s marketing resources and activities. Rapidly emerging force of globalization have compelled firms to market beyond the borders of their home country making international marketing highly significant and an integral part of firm’s marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of term. In part, this is because the role of marketing manager may act as the overall general manager of his assigned product. To create an effective, cost-efficient Marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with related discipline of strategic planning.
  • 20. B. The 4 P’S of marketing Elements of the marketing mix are often referred to as the four P’s. a. Product:- A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry codes based products like cell phone load and credits. Typical example of mass produced tangible object are motor car and the disposable razor. A less obvious but ubiquitous mass service is a computer operating system. Packaging also needs to be taken into consideration. b. Price:- The price is the amount a customer pays the product. It is determined by a number of factors including market share, competition, material cost, product identify and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. c. Place:- Place represent the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the internal. d. Promotion:- Represents all of the communication that a marketer may use in the market place. Promotion has distinct element: advertising, public relations, onward of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and internet advert through print media and billboards. Public relations are where the communication is not directly paid for and includes press release, sponsorship deals, exhibitions, conference, seminars or trade fair and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people
  • 21. specifically engaged to create words of mouth momentum. Sales staff often plays an important role in word of mouth and Public relation (see Product above) today there are many approaches of marketing mix enlargement. Just the 4 P cannot describe all possibilities and needs; a company has to deal with when thinking about itself and the market. To fulfill all different point of views, markets and marginal studies, there are still more P relevant. Some of them are:- Packaging Partner People Project Public voice Pamper Politics Physical Evidence C. Marketing Strategy If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing manager are able to make their own key strategic decision and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for of specific objectives, including optimizing short term unit margin, revenues growth, market share, long term profitability, or other goals. To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions:- a. The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high price) or other factors., and b. The company has the resources and capabilities to competition to complete for segment’s business, can meet their needs better than the competition, and can do so profitability. In fact, a commonly cited definition of marketing is simply “meeting needs profitably.”
  • 22. The implication of selecting target segments is that the business will subsequently allocate more resources to acquired and retain customers in the target segments than it will for other, non-targeted customer who are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because has made a strategic decision to target the “higher fashion” segment of nightclub patrons. 2.4 Marketing objective of Bokaro dairy The Bokaro dairy unit has adopted some of the marketing objectives for the improvement of “Fresh milk products” and to capture the markets. The objectives of the dairy are:  To give the consumers a better quality of milk and milk products at a reasonable price.  To ensure maximum consumer satisfaction by extending proper service.  To make arrangement for the availability of dairy products at every corner of the city & satellite outlets possible.  To supply products in time.  To give the company’s products at an agreed satisfaction.  To adopt quality management policy and systems with continual improvement.  The management as well as the staff of Bokaro Dairy is working hard to maintain the quality standards and improvement of dairy products. A. Present Strategy of the dairy for production unit  To reduce overhead expense.  Increase better margin for profitability.  To reduce quality product.  To save maximum time by using efficient and modern techniques of products.  To engage an efficient and skilled workforce in the production unit. B. Marketing strategy of Bokaro Dairy
  • 23. a. Mapping of market to increase sale In the year 2001-02, the number of retail outlets was 330 in Bokaro dairy has 447 retail outlets across Bokaro. A regular market visit was made specifically to these new retailers and their problems were carefully solved. This helped the retailers to establish themselves. In this event, sale continuously increased. While appointing the retailers, the preference was given to grocery shop owners so that the ‘fresh milk products’ could be made available for a longer period and easy accessibility of the consumer be ensure. b. Relationship Building Advertising build brand and attracts customer while building relationship retains customers and enhances brand equity. This is more true in a competitive market, where in a whole lots of brands started pouring in, giving the customer their right choice to choose from. In such a scenario, all the posturing & lip service paid to relationship building will only stared losing a customer because, it is almost 5 time difficult “to enroll a new customer than to lose loyal one”. And the dairy’s motto is “it takes years to retain a customer... and second to lose one”. To strengthen the bandage of company with retailer, of weekly route meeting, preferably on Sunday is kept to listen their problems and address the same, irrespective the gravity of complaints. The views and suggestion for further augmenting the sale are also discussed. Invariably, the meeting is attended by Chief Manager, marketing in charge, Asst. Marketing Manager and related marketing and production staff to share their views. This approach, made by the dairy is not to catch hold of the satisfied customers and retailers, but also they will be walking talking advertisement of the products.
  • 24. 2.5 Milk Procurement of Sudha Bokaro Semi processed milk is transported from 4 places of North Bihar to the Bokaro plan. These are:- Sl. No Source Mode of transport Milk Volume in Litters 1 BARAUNI RAIL/ROAD 35000 2 ARA ROAD 25000 3 SAMASTIPUR ROAD 15000 4 BHAGALPUR ROAD 5000 Mainly is daily transported from Barauni plant. But it takes 2 days for the milk to reach Jamshedpur from other 3 plants due to bad shape of road connectivity in the region. The deficit amount of milk is fulfilled through the SMP. The milk is supplied directly from the plant to the market through the vehicles (mainly 407) arrangement by dealers. Some of the dealers have their own small vehicles to distribute in the mirror markets of the city. Distribution to retails outlet as well as the dedicated outlets is handled by the same distribution. The dealership is given through tender call which is for the least 3 years of time. Security deposit varies from Rs 1-2 lacks based on the location of the route. Order booking is done over telephone or personal visit to the plant by the leaders. They deposit cash in advance in Sudha’s bank account against which the invoice is raised. On holy days and Sundays, the dealers deposit the cash at the plant office or by the demand draft. Similarly, retailers pay cash in advance at the dealer’s office against which the booking is done for the next day. So the dealer is dedicated by Sudha office in the same time retailers are dedicated by the dealers which shows a monopoly of kind of Sudha in the market. Sudha directly supplies milk to some of the MFS store and institutions from its plant through its hired vehicles. 2.6 Dealership appointment to Bokaro and Dhanbad and its satellites towns Bokaro dairy’s main marketing strategy is focus on local markets as well as city market. Bokaro dairy has generated to the market at optimum level (retail universe-447, covering all possible
  • 25. strategic location across Bokaro city). To maintain further a growth of 15% per annum in local market in coming year would be at the higher administration cost because the dairy is in the last phase of growth and early phase of maturity. In such a phase, marginal cost would lesser, compared to hire in put in, affecting the financial help of the organization. Keeping this is view; dairy has decided to focus now on the satellite town. Through dairy has its present in this towns but an opportunity still exit to expand the market, further but at the sometime dairy does not 12 increase the overhead cost in comes of deployment of more manpower. Therefore, it was through prudent to appoint dealer having financial power and business acumen to expand the market for Bokaro dairy. Appointment to Dealers At present dairy is having 30 dealers for the distribution of fresh milk products” Dairy appoints the dealers for one year generally on contract basis. 2.7 Major dairy product manufactures in India Some of the major dairy product manufacture in the country. Company Brands Major Products Nestle India Limited Milk, Cereals’, Lactogen, Milo, everyday Sweetened condensed milk, malted food, milk powder and dairy whitener. Smith line Beecham Limited Horlicks, Maltova, Viva Malted milk food, ghee, butter, powder milk, milk fluid and other milk base baby foods. Indodan Industries Limited Indana Condensed milk, skimmed milk, milk powder, Gujarat Co-Operative milk Marketing Federation limited Amul Butter, Cheese and other Milk food
  • 26. H.J. Heinz Limited Farex, Complain, Glactose, Bonnie mix, Vitamin Infrant milk food, malted milk food Britannia Milkman Flavored milk, cheese, milk powder, food Cadbury Bournvita Malted food A. Market size and growth Market size for milk (sold in loose/packaged from) is estimated to be 36mn MT valued at Rs.470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus states in India are Utter Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacture of milk products is concentrated in these milk surplus states. The top 6 states viz. Utter Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production. Milk production grew by mere 1% per annum between 1947 and 1970. Since the early 70’s, under Operation Flood, production growth increase significantly averaging over 5% pa. About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Loose milk has market in India as it is perceived to be fresh by the most consumers. In reality however, it poses a higher risk of adulteration and contamination. The production of milk product, i.e. milk products including infant milk food, condensed milk % cheese stood at 3.07 lakh MT in 1999. Production of milk powder including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is at 6500 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same year. B. Major Player The packaged milk segment by dominated by the dairy co-operatives. Gujarat co-operatives Milk Marketing Federation (GCMMF) is the largest players. All other local dairy cooperatives have their local (For e.g. Gokul, Warana in Maharashtra, sares in Rajasthan, Verka in Andhra Pradesh, Aavin in Tamil Nadu, ect). Other private players include J K Dairy, Heritage Foods, Indian Dairy,
  • 27. Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation. 2.8 Marketing department structure A. Marketing Strategy of Bihar State Milk Co-operative Federation Production: We can study the four main elements under the product mix that is as follow: - Product range Branding Packing Price a. Product Range:- Product Range plays a vital role in any organization it is the heart of the market mix. Without a product, there is nothing to sell or nothing to promote. If the product fails to satisfy consumer demand, the organization will fail, but in Bihar State Milk Co-operative Federation, the products are satisfied to consumers by introducing new varieties of milk. It represents the goodwill of Sudha in Bihar & Jharkhand. b. Branding:- Sudha is the brand name of Milk & Milk products, which manufacture & market by Bihar state milk co-operative federation. Sudha has earned name for pure and quality products, which has capture the minds and hearts of Bihar & Jharkhand. c. Packaging:-
  • 28. Bihar state milk co-operative federation milk is packed in polythene covers, milk products are packed in paper boxes and Ghee is covered in polythene covers. d. Price:- In the developing countries like Indian most of the consumers always decide on the basis of pricing for purchasing of any commodity on its cost. Bihar state milk co-operative federation fixes the price with suggestion from the union. The pricing structure should therefore ensure that production of Milk is encouraged and the farmers get a remunerative return for their milk. The system should also ensure better incentive and quality of milk. The pricing structure for the farmers are paid based on FAT & SNT content in the milk sold by them the price of milk products are fixed by Bihar State milk co-operative federation. Price list of Product’s NAME OF THE PRODUCTS PRICE Lassi (pouch 200ml) Rs.15.00 Paneer (200gm) Rs.55 Plain Doi Rs.12 & Rs.24 Misti Doi (pack 100g) Rs.14.00 Fitness curd (pack 200g, 500g) Rs.13.00 & 28.00 Sudha Standard milk (500ml &1ltr) Rs.19.00 & 38.00 Sudha Double toned milk Rs.16 Sudha toned milk (500ml, 1ltr) Rs.18.00 & 34.00
  • 29. B. Marketing Activities The marketing of the milk and milk product is being done by a cell headed by office of marketing manager rank. Since the marketing milk was less, no much of endeavors were made to strengthen it. There is a limited scope of liquid milk marketing in local area; therefore, the union the main suppliers of liquid milk to the South Bihar Dairies. The closest competitors with regard to market share quality of milk, price and goodwill is Local Vendor. a. Promotion Mix: Promotion is a major tool for any company; it is a powerful tool for facing the competition providing the cutting edge to entire marketing program. People must be informed that right product is available at the right product is available at the right time and right quantity. They must be motivated and induced to purchase the products. This is done through sales promotion. There are two wings in sales promotion:- Advertising Salesmanship i. Advertising: An identified sponsor defines advertising as any paid from non-personal presentation and promotion of idea good services. Major advertises work is carried by Bihar Milk Co-operative Sudha cream milk Rs.23 Peda (Pack 100g & 250 gm) Rs.18.00 & 42.00
  • 30. Federation it looks after all the activities. It advertises the products through Television, Newspaper and Radio. Bihar state milk co-operative federation also advertises the products in local Newspaper, Handbills and in local channel in TV & Wall painting. ii. Salesmanship: Bihar state co-operative federation sells the milk & milk products in four states, the present approximate sales are as follows:- 110000 liters of milk per day 40 kg peda per day 3000 kg curd per day 10 to 20 tons of ghee per month C. Field officers duties and responsibilities: Field officers are appointed to look after the smooth operation and attending the customer complaints and market development activities and sales promotion activities there are three responsibilities of field officers they are as follows:- Sales Promotion Consumer Education Marketing information & Marketing intelligence a. Sales Promotion:- The major task of the field officers is to promote the products and take up sales promotional activities, identifying the channel partners and conducting sales promotion campaigns and setting target for dealers.
  • 31. Steps taken to increase the milk sales Fixing up of sales targets to the agents and parlors. Opening of milk parlors in the area wherever needed. Giving agency to right person who can project the correct image of the dairy. Regarding quality and timing supply. Giving prompt attention to the problem and complaints of the consumers. Steps taken to increase commission to 20paisa/liter to encourage the sales. Introduce standard milk for sales as per the market survey report. We have ensured timely supply of milk even in the evening shift in the major cities. b. Consumer Education:- Education the consumer about the ill health caused by consuming non-pasteurized milk and education about the usage of milk. c. Marketing Information and Marketing Intelligence:- Collection the information from the market about the product and preparing day-to-day reports and forwarding it to marketing department and keeping eye on the competitor. D. Test Marketing:- Test marketing was conducted while introducing 200ml packet of Sudha milk. While introducing any milk & milk products the union conducts the test marketing activities. a. Incentive, Discounts & Allowance:- The marketing head, in consultation with the managing director of union, will take the major decision and percentage will be fixed.
  • 32. b. Procedure adopted is as follows:- i. By analyzing the market. Requirement and demand the dealer’s requirements for that particular area decided by field officers and marketing officers. ii. Application areas are requested to put their willingness for dealership by personnel contact. iii. Application is scrutinized and the dealers are selected on their basic of their ability in all respect. iv. The dealer has to execute an agreement with Bihar state co-operative milk union and hence they become the authorized dealers. v. Marketing field officer during their visits ensures timely and proper distribution of milk products to the dealers and provides feedback for the marketing division for further corrective action. vi. If any complaints, from the consumers or dealers are redressed by marketing assistants on the sport and sorted out and if quality problem about the product are referred to the plan for corrective action. vii. Dealers meet are arrange twice in a year to address their grievance suggestions for improving sales. viii. In addition the marketing field assistants ensure the proper distribution of milk & milk products to the consumer by dealers. c. Training to marketing field officers:- Timely advice and training will be given to the marketing field officer field officers by the marketing head and the field officers are sent to various training program conducted by NDDB & other institution.
  • 33. Strategies to achieve the sales targets  Rescheduling Existing route.  Trap new potential market.  Introducing new outlets.  Renovation of whole day milk parlor with ACP.  More meeting with Distributors & Retailers for better co-ordination & service enhancement.  Strengthening of present supply channel.  Focus on non Sudha milk users.  Back up supply. Introducing New Outlets  To increase availability of milk at customer’s door step.  To control the overcharging.  To avoid any shortage of milk and milk product in the market.  Increase new business partners. 2.9 SWOT Analysis of Sudha Strengths  Strong brand image & name  Strong presence  Strong distribution network  Government support  Good procurement potentially in the market  ISO certified dairy  Government aid for full time parlors.
  • 34. Weakness  Governmental board takes long time to pass decision on concern stand high demand periods.  Lesser margin offered to retailers.  Most of the plant machineries are old, traditional & difficulty to stand high demand periods.  Facing problem in maintaining the quality throughout the year. Opportunities  Huge market potential.  No branded player in the market with strong presence.  Acquisition of local for supply. Threats  Launching of NEW BRAND in these in these markets can destroy its market share.  Logistics from far flung areas to major place.  Switching cost is really low in the pouch milk market.  Shortage of water the production process weak. This is a mainly problem summer.
  • 35. CHAPTER III RESEARCH METHODLOGY Research design: This study designed as a descriptive one. Sources of data: Study is based on both primary data and secondary data. Primary data: The primary data required for the study were collected from respondents through questionnaire. Secondary data: The secondary data mainly consist of data gather from company record and websites, secondary data were also complied from journals, magazines and books. Population: The general public during the survey the response from 100 customers were taken. Also include response from reputed dealer of milk and its product in Bokaro and Dhanbad. Method of selection: Purposive sampling Analytical tools: Percentage method were used to analysis.
  • 36. CHAPTER IV ANALYSIS AND INTERPRETATION This chapter covers the analysis and interpretation of collection of data from various Customers those who are using Sudha milk and milk product. The sample size 100. Table 4.1 Do we satisfy your daily requirement of milk and milk product Serial No. No. of respondents Percentage (%) Poor 0 0 Satisfy 8 8 Good 92 92 Total 100 100 Fig. 4.1 Do we satisfy your daily requirement of milk and milk product ANALYSIS: The above table and graph indicates that- 92% of respondents are feel good about requirement of Sudha milk and milk product and 8% of respondents are satisfy with requirement. 0 20 40 60 80 100 120 Poor Satisfactory Good Series 3 Series 2 Series 1
  • 37. Table 4.2 Do we satisfy you supply of milk product as per you expectation on quality Serial No. No. of respondents Percentage (%) Poor 0 0 Satisfy 10 10 Good 90 90 Total 100 100 Fig. 4.2 Do we satisfy you supply of milk product as per you expectation on quality Analysis: From the above analysis it is interpreted that 10% of consumers satisfy with the supply of milk product and 90% of consumers are respond good for supply of milk product. 0 10 20 30 40 50 60 70 80 90 100 Poor Stisfactory Good Series 3 Series 2 Series 1
  • 38. Table 4.3 Do we supply you milk & milk products timely in the morning and evening Serial No. No. of respondents Percentage (%) Poor 4 4 Satisfy 20 20 Good 76 76 Total 100 100 Fig. 4.3 Do we supply you milk & milk products timely in the morning and evening Analysis: 4% of consumers give poor response, 20% of consumers are satisfy with and 76% of consumer respond good on supply of milk and milk products timely on morning and evening. 0 10 20 30 40 50 60 70 80 90 Poor Satisfactory Good Series 3 Series 2 Series 1
  • 39. Table 4.4 Do you feel that milk & milk Products are priced suitable Serial No. No. of respondents Percentage (%) Poor 0 0 Satisfy 32 32 Good 68 68 Total 100 100 Fig. 4.4 Do you feel that milk & milk Products are priced suitable Analysis: The above table and graph indicates that- 68 % of consumer response good and 32 % are satisfy with milk and milk product price is suitable. 0 10 20 30 40 50 60 70 80 Poor Satisfactory Good Series 3 Series 2 Series 1
  • 40. Table 4.5 Do you listen to your complaints, if any, patiently Serial No. No. of respondents Percentage (%) Poor 5 6 Satisfy 36 36 Good 59 59 Total 100 100 Fig. 4.5 Do you listen to your complaints, if any, patiently Analysis: From the above table and graph it is clear that 5 % of consumer feel poor, 36 % are satisfy and 59% are response on good about retailer are listen his complain. 0 10 20 30 40 50 60 70 Poor Satisfactory Good Series 3 Series 2 Series 1
  • 41. Table 4.6 Do we redress your complaints Serial No. No. of respondents Percentage (%) Poor 5 5 Satisfy 19 19 Good 76 76 Total 100 100 Fig. 4.6 Do we redress your complaints Analysis: 76% of consumer response on good, 19% consumer response on satisfy and 5% give a poor response for the retailer not giving his reply. 0 10 20 30 40 50 60 70 80 90 Poor satisfactory Good Series 3 Series 2 Series 1
  • 42. Table 4.7 Do we give you information you need Serial No. No. of respondents Percentage (%) Poor 2 2 Satisfy 39 39 Good 59 59 Total 100 100 Fig. 4.7 Do we give you information you need Analysis: The above graph and table it is clear that 59% consumers of respondents on good, 39% are satisfied and 2% consumers give a poor response for getting information about anything. 0 10 20 30 40 50 60 70 Poor Satisfactory Good Series 3 Series 2 Series 1
  • 43. Table 4.8 Do we answer your queries promptly and politely Serial No. No. of respondents Percentage (%) Poor 2 2 Satisfy 34 34 Good 64 64 Total 100 100 Fig. 4.8 Do we answer your queries promptly and politely Analysis: From the above table and graph 2% of consumer give response poor, 34 % are satisfy them and 64 % are response good for answering the question punctually or graciously. 0 10 20 30 40 50 60 70 80 Poor satisfactory Good Series 3 Series 2 Series 1
  • 44. Table 4.9 Do we fulfill your additional requirement in festival Serial No. No. of respondents Percentage (%) Poor 0 0 Satisfy 5 5 Good 95 95 Total 100 100 Fig. 4.9 Do we fulfill your additional requirement in festival Analysis: From the above table and graph 95% consumer response on good, 5% are satisfy them fulfillment of the additional requirement of milk and milk product in festival. 0 20 40 60 80 100 120 poor Satisfactory Good Series 3 Series 2 Series 1
  • 45. CHAPTER V FINDING AND SUGGESTION 5.1 FINDING 1. In Dhanbad areas, the consumers are very much satisfied with the fulfillment of their daily requirement of milk & milk products. This is very good sign for Bokaro dairy. 2. Regarding quality expectation, there was mixed responses from the consumer satisfaction from the service of Bokaro dairy in both areas. 3. In both areas some respondents said that the Retailers do not answer their queries promptly. 4. According to few respondent’s they do not get the information they need about the products. This must be due to the retailers. 5. The respondents in Dhanbad & local area are very much satisfied with supply for their additional requirements during festivals. This indeed is very positive sign for the dairy. 6. Some products of Sudha are not available in Dhanbad & local area.
  • 46. SUGGESTION 1. To encourage interaction with the consumers, Bokaro dairy can organize a cooking competition in the different-different colonies involving the housewives. This will help the dairy to get closer to the consumers & will also helpful in providing vital information to the consumers. 2. The dairy should chart out some plan to get regular feedback from the consumer as well as retailers. This can be done through creating an e-mail id and providing it to the consumers so that they can directly mail their feedback and complaints. 3. The dairy should arrange for meeting of the retailers and distributors to increase the co-ordination among them. 4. Home delivery system for supplying milk and products by major portion of retailers needs to be increased for enhancing the sale and market. 5. In all areas, some prime retail location may be marked and these may be converted to model retail outlets and treated as whole day milk parlor. 6. The distributors & retailers who achieve the expected targets may be awarded and some incentives may be given to them boost morale. 7. To boost up the field supervisor, they might be awarded for efficient performance. 8. The dairy should arrange for meeting of the retailers & distributors to increase the co- ordination among them. 9. A periodic survey may be done about the giants companies in the industry for strategic planning. 10. Bokaro dairy may organize events like quiz, debate, art competition etc., be in the city school and award the winning students. In this event, Sudha products may be distributed to the students. This would help to increase brand awareness.
  • 47. CHAPTER VI CONCLUSION India is the world’s highest milk producer and all set to become the world’s largest food factory. In celebration, Indian dairy sector is now ready to invite NRIs and foreign investors to find this country a place for the mammoth investment projects. Be it investor, research, entrepreneurs, or the merely curious-Indian Dairy sector has something for everything. Sudha has been major supplies of milk in Jharkhand in last 30 years and creates consumer awareness about pouch milk and milk products in different milk market in Jharkhand & Bihar. Even today, Sudha is the sole flag bearer of quality pouch milk and milk products in Jharkhand with rest of open space filled by local players. Bokaro dairy has grown every moment since its birth and the process is still on. With its innovative ideas, it has always satisfaction and attracted its Retailers. The main focus of Bokaro dairy is distributor & retailers satisfaction. It has always given important to retailer preference and demand. Probably this is why it is today’s market leader. The effective marketing strategies help the dairy help reach maximum number of retailer. Innovating and effective marketing is the most important aspect in the increasing popularity of Sudha. Sudha has never compromised with its quality of the products. Product quality is the main focus of Bokaro Dairy. Bokaro dairy user all possible techniques of product promotion. The distribution channel is also very good. It has created a strong brand image in its 27 years of gory. All the 4 P’s of marketing mix are well exploited by the dairy. A proper product, price, promotion and place selection helped the dairy become what it is today. The SWOT analysis of dairy says that there are many strangers and opportunities of the company. I am sure they will exploit them well. Taking about the threats and weak and weaknesses, there are not many of them and those will also disappear in the future. Bokaro Dairy has always represented a good organization culture and the staffs are well trained, efficient and dedicated. The sales bar has always looked up and so did the profit bar. This proves the efficiency, hard work and dedication of the company ever since it came into existence. The success story of the company ever since it came into existence. The success story of the company is worth appreciating. Marketing says that a company sells and markets two different things. For example, a car company sells cars but it markets freedom and comfort. On this note, we can say that SUDHA sells milk and milk products, but it markets goods health, fitness and happiness.
  • 48. BIBOLOGRAPHY Books:-  Philip Kotler……………. “Marketing Management”  Naresh K. Malhotra…... “Marketing Research”  Britt and Boyd (Ed)……. “Marketing Management and Administration”  Michael J Etzel, Bruce J Walker, William J Stanton and Ajay Pandit (2005) Marketing Concept and Cases (Special Indian Edition) Weblogy  www.sudha.coop  www.scribd.com  www.slideshare.com