1. - 1 -
Summer Internship Project Report
On
“Consumer and Retailer Awareness level Regarding Dairy Products with Special Reference
to Reliance Dairy Food Ltd”
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION
SCHOOL OF BUSINESS STUDIES,
PUNJAB AGRICULTURAL UNIVERSITY
2014-16
Under the Guidance of: By:
I. Faculty Mentor - Prof. Khushdeep Dharni Tanuj
(Associate Professor) L-2014-BS-39-MBA
II. Industry Mentor Name - Mr. Sameer Arora 2014-16
(Area In charge)
2. 2
ACKNOWLEDGEMENT
Success of every Summer Internship Program and their Project depend largely on the
self & encouragement and guidance of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of my
Internship Program as well as the Project Report.
First of all I would like to thank the management at Reliance Dairy Food Ltd for
giving me the opportunity to do my 8 weeks Summer Internship Training in their esteemed
organization and also for providing me with valuable advice, data for project and endless
supply of new ideas & support for the Project.
I would like to thank my Industrial Mentor, Mr. Sameer Arora (Area in Charge) and
Mr. A.P.S Bhatia (Marketing Head) for providing practical exposure for project during
training and his valuable guideline during the Training Period.
I would like to thank Dr. Khushdeep Dharni (Associate Professor) and Dr. Babita
Kumar (Associate Professor) for providing valuable suggestions and helping throughout
the course of training.
At the last but not the least, I want to thank all the mentors i.e. both industrial and
institutional, all the people, Respondent, Retailers, Distributors and each & every person
who support and help me in Performing my Training Successfully and help in completing
this Report directly or indirectly.
Thanking You:
Tanuj
L-2014-BS-39-MBA
SCHOOL OF BUSINESS STUDIES,
PUNJAB AGRICULTURAL UNIVERSITY
3. 3
DECLARATION
I hereby declare that the following project report titled “Consumer and
Retailer Awareness level Regarding Dairy Products with Special Reference to
Reliance Dairy Food Ltd” at Reliance Dairy Food ltd. Ludhiana is an authentic
work done by me. It is to the best of my knowledge and belief. This is to declare
that all my work indulged in the completion of this Project Report such as research,
competitor analysis and sales promotion is a profound and honest work of mine.
The work done by me had not been submitted to any organization, Institution,
Company for any incentive or activity.
Signature:
Tanuj
4. 4
SR/No. INDEX P/No.
1 EXCUTIVE SUMMARY 5
2 INTRODUCTION TO THE ORGANIZATION 7
3. FINANCIAL ANALYSIS 22
4 INTRODUCTION TO SUMMER TRAINING PROJECT 28
5 RESEARCH METHODOLOGY
31
6 DATA ANALYSIS & INTERPRETATTION 34
7 FINDINGS 54
8. RECOMMEDATIONS 56
9. CONCLUSION 58
9 ANNEXTURE 60
5. 5
EXECUTIVE SUMMARY
This Study has been done with an aim of determining the various factors which would
Influence Sale of the Dairy Product of the Reliance Dairy Food Ltd. and also to determine the
method or strategy to place the product in the new and existing market.
This study is fully based on the collection of Primary data through questionnaire method during the
Summer Internship Program which started from 15th June 2015 till 8th August 2015. There our main
objective is to collect the order from the assigned market area and provide it to the distributer as
well as to help him in delivering the product at the required place. The reporting time was 06:30
AM in morning till the 12:00 PM at noon.
Our responsibility was to collect various complains of the retailer & the customer and make it
available before the respected authority i.e. ASM (Area Sales Manager) in order to resolve the
problem.
This also involves processes to collect the data for completion of the project. The training also
includes daily report submission to the mentor about the overall development of the work.
The project was divided into further division in Research mythology:-
I. Research Design
i. Exploratory research
ii. Descriptive research
II. Data Sources
i. Primary Data
ii. Secondary Data
III. Sampling Design
i. Definition Of Population
ii. Sampling procedure
iii. Sampling size
IV. Statistical Tools
6. 6
The scope of this project is given below:-
Help in finding out the various factors affecting the sales of the product
of RDFL.
Help in sorting out the relationship and their level of extent on which
they affect.
To overview the different ways to place the product of Reliance Dairy
Food ltd.
To help in finding out the different demographic factors in executing the
product placement and their sales.
ORGANIZATIONS AREA COVERED:-
In order to pursue this project report the following area has been covered:-
Marketing area of Reliance Dairy Food ltd.
Different territories where these product has been selling earlier.
New area to be covered during the summer internship program.
Sales Department of Reliance Dairy Food ltd.
Distribution channel of Reliance Dairy Food ltd.
7. 7
INTRODUCTION TO THE ORGANIZATION
The Organization in which the summer internship has been conducted is a subsidiary body of
Reliance Industries ltd. which deals with the production of dairy product known as Reliance Dairy
Food ltd.
"Our dreams have to be bigger.
Our ambitions higher.
Our commitment deeper.
And our efforts greater.
This is my dream for Reliance and for India."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of US$ 66 billion. The flagship company, Reliance Industries Limited, is a
Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
8. 8
integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil
and gas exploration and production - to be fully integrated along the materials and energy value
chain. The Group's activities span exploration and production of oil and gas, petroleum refining
and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles,
retail, infotel and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre
producer in the world and among the top five to ten producers in the world in major
petrochemical products.
Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance
Industrial Infrastructure Limited.
Performance and Achievements
2015- Ranked 142th on Forbes Global 2000 Top Companies list.
2014- The Brand Trust Report ranked Reliance Industries as the 9th trusted brand in
India.
2013- Ranked 107th. on the Fortune Global 500 list.
2013- Ranked 25th. on ICIS Top 100 Chemical Companies list.
2012- Certified as 'Responsible Care Company' by the American Chemistry Council.
2012- Jamnagar Refinery listed among the world’s top five manufacturing units by
Discovery Channel.
2010- Ranked second amongst BCG’s ten top global ‘Sustainable Value Creators’.
2010- Reliance E&P's KG-D6 won Marico Innovation Foundation’s Innovation for India
Award for combined synthesis of advanced technologies, extreme engineering,
innovative execution, yielding unprecedented results and impact on India's energy
security.
9. 9
RELIANCE RETAIL
Reliance Retail is the retail initiative of the group and an epicenter of our consumer facing
businesses. It has in a short time forged strong and enduring bonds with millions of consumers by
providing them unlimited choice, outstanding value proposition, superior quality and unmatched
experience across all its retail stores.
With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small
shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to
lead Reliance Group’s foray into organized retail.
Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization that
caters to millions of customers, thousands of farmers and vendors. Reliance Retail serves over 2.5
million customers every week, and its loyalty programme, Reliance One, has the patronage of
more than 6.75 million customers. Our nationwide network of retail outlets delivers a world-class
shopping environment and unmatched customer experience powered by our state-of-the-art
technology and seamless supply-chain infrastructure. Based on its core growth strategy of
backward integration, RRL has made rapid progress towards building an entire value chain
starting from the farmers to the end consumers.
Reliance Retail has adopted a multi-format strategy and operates convenience stores,
supermarkets, hypermarkets, wholesale cash & carry stores, and specialty stores and has
democratized access to all types of products and services across all segments for all Indian
consumers. Its presence in the optics business is in partnership with Grand Vision. 51 new stores
were added during FY-11 taking the total presence to 100 stores across key markets in the
country. The retail chain offers single brand optical products including Vision Express frames,
lenses, contact lenses, sunglasses, solutions and accessories.
Deep insight into India’s economic, cultural and consumption diversity drives Reliance Retail’s
vision in the retail universe. The operating model is based on customer centricity, while
leveraging common centers of excellence in technology, business processes and supply chain.
More importantly, it has built a strong and unwavering foundation through its extraordinary
10. 10
people.
Reliance Retail has achieved the distinction of being the largest retailer in the country with core
format sectors attaining market leadership in their respective categories. Reliance Retail’s
commitment to bettering lives has been embodied in its pursuit to make a difference on social
socio-economic issues in India. The initiative has brought millions of farmers and small producers
to the forefront of the retail revolution by partnering with them for growth. Reliance Retail has
emerged as the partner of choice for International brands and has established exclusive
partnerships with many revered international brands such as Diesel, Superdry, Hamleys,
Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks
Brothers, Steve Madden, Payless Shoesource, Grand Vision and many more.
For the very first time, consumers in India got the opportunity to experience Hamleys, which is
considered to be the world's most wonderful toy shop. The brand was launched in India with
opening up of 2 stores during the year. iStore by Reliance Digital is a one-stop-shop for all Apple
products and services. There are 17 such stores currently operational.
Reliance Brands also announced exclusive licensing arrangement with two leading international
brands:
Steve Madden, a leading designer, wholesaler and retailer of fashion-forward footwear
and accessories for women, men and children.
Quicksilver, a leading outdoor sports lifestyle company to launch their core brands
'Quicksilver' and 'Roxy'.
Across India, Reliance Retail serves over 2.5 million customers every week. Its loyalty
programmed, "Reliance One", has the patronage of more than 6.75 million customers.
Reliance Retail Reliance Retail is the retail business wing of the Reliance business. Many
brands like Reliance Fresh, Reliance Dairy Food Ltd., Reliance Footprint, Reliance Time
Out, Reliance Digital, and Reliance Wellness, Reliance Trends, Reliance AutoZone,
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Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance Market
(Cash n Carry) and Reliance Jewel come under the Reliance Retail brand.
Achievements
Retail Recognised as the ‘Best Brand’ in the Consumer Electronics and Appliances
Retailers category by The Economic Times.
Best Brands 2014 Franchise India Retail Awards 2014.
CDIT and Telecommunications Retailer Awarded the ‘Most Admired Retailer’ of the
Year.
Large Format as well as Private Label by Images Retail Awards 2014.
Ranked among the ‘Most Trusted Service Brands’ in India by Brand Equity.
Award for ‘Marketing Excellence in Retail Sector’ given in the field of Marketing
Dynamics towards a sustainable tomorrow and continuous marketing practice in Retail.
Award for ‘Best Diamond Jewellery’ of the Year from National Jewellery Awards 2014,
in Vogue and Bridal category.
12. 12
RELIANCE DAIRY FOOD LTD (RDFL)
Reliance Dairy Foods Limited is a Public Company incorporated on 28 November 2006. It is
classified as Indian Non-Government Company and is registered at Registrar of Companies,
Mumbai. Its authorized share capital is Rs. 2,500,000 and its paid up capital is Rs. 2,500,000.
Reliance Retail started at Hyderabad, July 16 after fresh vegetables & fruits and FMCG products,
Reliance Retail has stepped into the dairy products sector with a national ‘pilot’ launch of its
liquid milk (family milk segment) in Hyderabad. The milk brand is also being sold “through
general trade (including milk retailers) in Haryana, Punjab, Andhra Pradesh, Tamil Nadu,
Rajasthan, Delhi NCR (National Capital Region) and Himachal Pradesh.
Reliance Dairy Foods Limited's Annual General Meeting (AGM) was last held on 31 August
2013 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last
filed on 31 March 2013. Directors of Reliance Dairy Foods Limited are Pankaj Mohan Pawar,
Harsev Singh and Pramod Madhukar Bhawalkar.
Reliance Dairy Foods Limited's Corporate Identification Number is (CIN)
U15419MH2006PLC165826 and its registration number is 165826.
Its Email address is akanksha.mota@ril.com and its registered address is 3rd Floor, Court House,
Lokmanya Tilak Marg , Dhobi Talao, MUMBAI - 400002, Maharashtra INDIA.
Current status of Reliance Dairy Foods Limited is - Amalgamated.
With the beginning of sale of ‘Dairy Pure’ through general milk retailers, as opposed to
mostly through Reliance Retail-owned stores now, the company expects further growth in this
business.
Mission & Vision of RDFL:-
Mission
"Bring prosperity to millions of Indian producers, especially our farmers, by providing the
most attractive returns for their effort".
13. 13
Vision
Become Number One Dairy Brand in the Country.
Ensure cost & quality competitiveness through adoption of best technology & business
practices.
Maximizing returns to stake holders, farmers and value for money to the consumer.
SWOT ANALYSIS
STRENGTHS:
1. The reliance group is India’s largest private sector enterprise.
2. The company has strong brand image for its products.
3. Well qualified and technically sound people in the organization.
WEAKNESS:
1. Company is new in the dairy sector.
2. Absence of a strong distribution channel.
3. Company has a poor market share in Ludhiana.
4. No effective promotional efforts are being taken by the company.
OPPORTUNITIES:
1. Ludhiana is one of the biggest markets for milk product in the country.
2. Per capita consumption of milk is still below the world average.
THREATS:
1. Presence of established players like VERKA, MOTHER DAIRY, TRU mik.
2. Margin is very low in dairy industry.
3. Uncertainty in market factors and changing market scenario.
14. 14
Organization Structure
Organization Structure is divided into two parts:
→ Internal Organization Structure
→ External Organization Structure
● External Organization Structure
External Organization Structure is the organization structure that affects the organization from
the out side.
State Level Marketing Federation
District Milk Product Union Ltd.
Village Milk Product Union Ltd.
Villagers
As we know, Reliance Dairy Foods Ltd is unit of Ludhiana Milk Marketing Federation, which is
a co-operative organization. The villagers of more than 10000 villages are the bases of this
structure. They all make village milk producers union, district level milk producers union and
then a state level marketing federation is established. The structure is line relationship, which
provides easy way to operation. It also provides better communication between two stages.
15. 15
Internal Organization Structure:
The following is internal organization chart of Reliance Dairy:
Organization Structure Chart
Chairman
Managing Director
General Manager
Ass. General Manager
Finance Dept. Production Dept. Marketing Dept. Sales & purchase Dept. Personnel Dept
Senior Senior Senior Senior Senior
Manager Manager Manager Manager Manager
Finance Production Marketing Sales Personal
Manager Manager Manager Manager Manager
Accountant Officer Marketing Officer P.R.F
Executive
Officers Supervisor F.S.R. Salesmen Executive
16. 16
Production Function:
Explosion of the production technology and changes in technical field is going to bring out
revolution in the industry sector which eventually gives stand to study and favors the come
backing subject i.e. production and management.
Production and operation management is planning, organizing, staffing, directing and controlling
of all the production system those portion of organization that convert inputs into products and
services. In general production system takes raw material, personnel, machines, buildings and
other resources and produce products and services.
The core of production system is its conversion subsystem where in workers; raw
materials are used to convert inputs into products and services. This production department is at
heart of the firm, as it is able to produce low cost products and superior quality in timely
manners.
Thus, there arises enormous need of giving due importance to this department as a whole
and a strong concrete base being foundation pillars of a manufacturing organization, if the
intention is to succeed domestically and globally.
17. 17
SUPPLY CHAIN MODELS OF RDFL MILK
RELIANCE
DAIRY PLANTS
PROCESSIN
G
UNIT/POINT
COLLECTION
POINT/UNIT
DISTRIBUTER DISTRIBUTER
RELIANCE
DAIRY PLANTS
RELIANCE
DAIRY PLANTS
RELIANCE OWN LOGISTICS
DISTRIBUTER
FARMERS
CATEGOR
Y 1
FARMERS
CATEGOR
Y 1
FARMERS
CATEGOR
Y 1
RETAILE
R
RETAILE
R
RETAILE
R
18. 18
Product list, Variety and Price:-
Products Variety Pack Size Price (Rs)
Milk
FCM 500 ml 24
1 ltr 48
SM 500 ml 21
1 ltr 42
6 ltr 246
TM 500 ml 19
6 ltr 222
DTM 500 ml 17
Curd
Cup 350 g 25
Cup 185 g 15
Pouch 175 g 10
RDFL
Milk Curd Butter Milk SweetsPaneer
FCM
TM DTM
SM
Ghee
19. 19
Pouch 400 g 24
Pouch 1 kg 60
Buttermilk Pouch 500 ml 15
Pouch 900 ml 25
Paneer Pouch 200 g 60
Pouch 1 kg 295
Sweets
Rasgulla 1 kg 190
Gulab Jamun 1 kg 180
Milk Cake 400 g 175
Doda barfi 400 g 175
Mathura Peda 400 g 175
Kaju Katli 400 g 299
Combo- Peda 400 g 399
Combo- Kaju Katli 400 g 499
Operating Analysis-
Reliance only source of raw material is Village Milk societies. Milk is brought from
such village milk societies every morning and evening. This milk is then sent to the dairy plant.
In the dairy plant the milk is processed i.e. it is made free from germs.
Milk Processing
The entire process of milk can be divided into following steps:
Process of Procurement & Distribution of Milk:-
Farmers and the Milk Co-operative Society.
The Operation Floodprogramme helps both farmers as wellas the city consumers. The
programme ensures that thefarmers get a fair price for their cow & buffalo milk and
theconsumers get best quality milk at reasonable prices.
In order to maintain freshness, this milk is chilled and then transported to Diary in insulated milk
tankers by road and by rail.
Checking the quality of Milk: -
20. 20
At the Dairy stringent hygienic standards aremaintained. The milk in the tankers is firstchecked
for quality and freshness and thenunloaded into huge insulated stainless steelstorage tanks. These
tanks have a capacity of 1lakh liters each. The presence of adulterants (impurities) like urea,
neutralizers, preservatives and germs like bacteria arechecked. All these tests ensure that only
goodquality milk is accepted. Once empty, thetankers are thoroughly cleaned and sanitized
Processing of milk
Unprocessed milk may contain small dirtparticles invisible to the naked eye. Inorder to remove
these particles the milk has to be processed.
Dispatching of milk
After processing, the milk is chilled and stored insilos and further chilled to about 2 C. by the
glycol chilling system, and then dispatched to the MilkShops in insulated road milk tankers.
Prior to the milkbeing dispatched in tankers, it is tested for quality tomake sure that it meets the
quality standards. Whenthe tanker arrives at the shop the milk is transferred into a large
refrigerator
21. 21
Milk Processing Chart: Collection of Raw-Milk
Electronic Milk Test
Ethylene Blue Reduction Test
Purchasing and Standardizing Process
Separation Process
Quality Check
Packaging Process
Cold Storage
22. 22
2. FINANCIAL ANALYSIS
I. Liquidity Ratio
1). Current Ratio = Current Assets_
Current liabilities
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Current
Assets
94,896 130,399 137,138
Current
Liabilities
92,468 85,011 83,968
Current
Ratio
1.03 1.53 1.63
Standard Ratio= 2:1
Interpretation: Since 2012-13 current ratio is continuously decreasing. There is a decrease in
current assets from 2012 to 2014 and an increase in current liabilities as well. This is the reason
that the current ratio is decreasing over the past three years.
2). Quick Ratio/ Acid Test Ratio= Current Assets- Inventory- Prepaid Expenses
Current Liabilities
YEAR
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
2011-12
(Rs. Crore)
Quick Assets 58345 87467 94409
Current
Liabilities
92,468 85,011 83,968
Quick Ratio
0.63 1.03 1.12
Standard ratio= 1:1
Interpretation: Quick ratio for the current year is 0.63:1 and there is a decrease in quick ratio
over years as it has been 1:1 in year 2012 and has decreased to 0.63:1 in year 2014. The decrease
in the ratio is because the currents liabilities have increased at an extent as compared to the
increase in quick assets. The company needs to increase its quick assets so as to meet the
standard ratio.
3). Absolute Liquid Ratio= Cash+ Marketable Securities
23. 23
Current Liabilities
YEAR
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
2011-12
(Rs. Crore)
Cash +
marketable
Securities
11,571 36,624 49,547
Current
Liabilities
92,468 85,011 83,968
Absolute
Ratio
0.125 0.43 0.59
Standard Ratio= 0.5:1
Interpretation: The purpose of absolute ratio is to find whether absolute liquid assets are
sufficient or not and they should be approximately half of the current liabilities. The company
should increase its assets in order to reach the standard ratio.
II. SolvencyRatio
4). Debt Equity Ratio= Total Debts____
Shareholder’s Funds
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Total Debts
89,141 85,481 54,523
Shareholder’s Funds
216,176 197,091 178,965
Debt Equity Ratio
0.41 0.43 0.30
Standard Ratio= 1:1
Interpretation: Debt is outsider’s funds thus own funds are essential which leads to equity in an
organisation. But debt is a cheaper source thus a mix of debt and equity should be there.
According to the standard ratio, the debt and equity proportion should be same but debts are less
in every year.
5). Interest Coverage Ratio= Operating Income/EBIT
Interest Expenses
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
24. 24
EBIT
31600 30874 30785
Interest Expenses
2,367 3,206 3,036
Interest Coverage Ratio
13.35 9.63 10.14
Interpretation: This ratio is calculated to know that how many times the interest is covered
from our operating income. So the higher the ratio, better will be the position of the company to
cover its interest from profits.
III. Profitability Ratios
6). Operating Profit Ratio= Operating Profit x 100
Net Sales
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Operating Profit 31,602 30,877 30,787
Net Sales
329,076 390,117 360,297
Operating Ratio
9.60 7.91 8.54
*Operating Profit= Net Sales - Operating Cost/ Gross Profit – Operating Expenses
Interpretation: Operating profit ratio measures what proportion of a company's revenue
is left over, after deducting direct costs and overhead and before taxes and other
indirect costs such as interest. The company has favourable operating profit ratio.
7). Net Profit Ratio = Net Profit x100
Net Sales
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Net Profit
22,719.00 21,984.00 21,003.00
Net Sales
329,076 390,117 360,297
Net Profit Ratio
6.90 5.63 5.82
Interpretation: Higher the ratio, better is the position of the organisation.
25. 25
8). Profits before tax to Sales= Profits before tax x 100
Net Sales
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Profit before tax(PBT)
29,468 27,818 26,284
Net Sales
329,076 390,117 360,297
Profit before tax to
Sales
8.95 7.13 7.29
Interpretation: A profitability measure that looks at a company's profits before the company
has to pay corporate income tax. A higher ratio is considered favourable.
IV. Profitability Ratios (Investments)
9). Return on Equity= Profit after tax ×100
Shareholder’s Funds
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Profit after tax (PAT)
22,719 21,984.00 21,003
Shareholder’s Funds
216,176 197,091 178,965
Return on Equity 10.51 11.15 11.73
Interpretation: Higher the return on equity, better in the position of the organisation.
10). Return on Investment= Net Profit before Interest & Taxes x 100
Capital Employed
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
PBIT
31,602 30,877 30,787
Capital Employed 303282 281467 245315
Return on
Investment
10.42 10.97 12.55
26. 26
Interpretation: ROI measures the amount of return on an investment relative to the
investment’s cost.
11). Earnings per share= ____Profit After Tax_____
No. of equity shareholders
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Profit after Tax (PAT)
22,719 21,984.00 21,003
No. of equity
shareholders
32359 323199 32287
Earnings per share
70.21 68.02 65.05
Interpretation: Higher earnings per share is always better than a lower ratio because this means
the company is more profitable and the company has more profits to distribute to its shareholders
12). Price Earning ratio= Market price of share
Earnings per share
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Market Price of shares 865 961 793.70
Earnings per share
70.21 68.02 65.05
Price earning ratio
12.32 14.13 12.20
Interpretation: A high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E.
V. Activity Ratios
13). Stock turnover ratio= Cost of goods sold/ Net Sales
Average Inventory
YEAR
2014-15
(Rs. Crore)
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
Net Sales
329,076 390,117 360,297
Average Inventory 35309 41724 41461
Stock turnover ratio
9.32 9.35 8.69
27. 27
Interpretation: Inventory Turnover Ratio measures company's efficiency in turning its
inventory into sales. Its purpose is to measure the liquidity of the inventory. Increasing
inventory turnover ratio is a signal of efficiency.
14). Debtor turnover ratio= _Net sales_
Debtors
YEAR
2013-14
(Rs. Crore)
2012-13
(Rs. Crore)
2011-12
(Rs. Crore)
Net Sales
329,076 390,117 360,297
Debtors
7662 11272 15152
Debtor turnover
ratio
42.95 34.61 23.78
Interpretation: Accounts receivable turnover ratio simply measures how many times the
receivables are collected during a particular period. Higher ratio implies that receivables are
more liquid.
29. 29
Title of the study
Awareness among the consumers and retailers regarding the Reliance milk.
OBJECTIVES OF STUDY:
1) To enhance the sales of Reliance milk.
2) To study which product of Reliance milk has highest sale among the retailers in
Ludhiana.
3) To study the level of awareness among retailer regarding Reliance milk.
4) To study retailer satisfaction with price, profit margin, packaging, promotional scheme
and quality of Reliance milk.
5) To study the consumer awareness level.
6) Identify consumer’s priority.
7) To study the consumer perception regarding the product and services of Reliance Milk.
SCOPE OF THE STUDY:
1) It will provide information about the size of Retailers network.
2) It will give information about the services provided by company and distributors to
their retailers.
3) It will provide information about competitor’s products.
4) It will serve consumers in better manner.
5) It will provide suggestions to company for improving their sales.
6) It will provide information about the sale promotion activities to improve the milk
sales.
7) From this study, we will get to know about the consumer’s perception about the services
offered by the company.
30. 30
Limitations of the study:-
1) Since the study was done in few areas of Ludhiana. The results cannot be
generalized on all Ludhiana bases.
2) Shopkeepers also tend to hide some facts and figures due to some reasons which can
hinder the results we get from this survey.
3) Overall market was too vast and it was not possible to cover each and every customer
in the available short span of time.
4) The research was conducted in present prevailing conditions. There can be some
fluctuations in the market, which can offset the findings.
5) Generally, the respondents were busy in their work and were not interested in
responding.
6) Respondents gave very idealistic viewpoints, thus, gauging true feelings was tough but
still best efforts were made through disguised statements.
7) Paucity of time acted as major constraint in my study.
8) The customer response was little biased as many respondents gave a positive reply even
though they had complaints regarding the delivery of the order.
9) Still a lot can be done to make the whole system efficient.
32. 32
RESEARCH METHODOLOGY:-
Research methodology is way to systematically solve the research problem. Research, in
common terms refers to a search for knowledge. Research methodology consists of different
steps that are generally adopted by a researcher to study the research problem along with the
logic behind them.
RESEARCH DESIGN:-
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answers to research question.
There are two types of research design. One is exploratory research and other is
descriptive research.
Exploratory research:-
We studied the company report, talked to the retailer and employee of the company.
We identified that, retailer are not satisfy of Reliance Dairy Products.
Descriptive research:-
Survey method was adopted for this research.
DATA SOURCES:-
The study is mainly based on the data collection from primary as well as secondary sources.
Primary data: Data collected for specific purposes in the form of
questionnaire.
Secondary data: Data existing in the form of Internal sources, Internet
Catalogues etc.
SAMPLING DESIGN:-
Definition of population: All the RDFL Retailers in Ludhiana.
Sampling procedure: A non-probability sampling technique i.e. convenient
sampling procedure was adopted.
Sampling size: A sample of 100 retailers was selected from the target
population for the study.
33. 33
DATA COLLECTION - FLOW CHART:-
SOFTWARE USE:-
Microsoft Excel
Microsoft Word
From each one
randomly selected
the data
Data was collected
through structure
questionnaire
First allocate the
area as per
company norms.
Personally visited &
filled by asking them
questions.
Then total covered as Ludhiana: -
I) Jamalpur II) Moti Nagar III)
Arjun dev nagar IV) Sarpanach
Colony V) College Road VI)
Ghumar Mandi VII) Model town
VIII) Agar Nagar
To filled 10 questionnaires
normally I had interact
more than 20 respondents.
I chose for filled data in
8 locations.
Finally 100 primary data was
collected each from Retailer
and Consumer.
36. 36
1. GENDER
Gender No of respondents % age of respondents
Male 28 28%
Female 72 72%
INTERPRETATION:
72% of respondents were female and 28% of respondents were male.
28%
72%
Male
Female
37. 37
2. LEVEL OF INCOME:
Monthly income No ofrespondents % age ofrespondents
< 25,000 15 15%
25,000-50,000 23 23%
50,000-75,000 42 42%
>75,000 20 20%
INTERPRETATION:
15% of respondents have less than 25 thousand monthly income and 23% of respondents have
monthly income between 25 thousand to 50 thousand and 42% of respondents have monthly
income between 50 thousand to 75 thousand and 20% of respondents have monthly income more
than 75 thousand.
15%
23%
42%
20%
< 25000
25000-50000
50000-75000
75000-100000
38. 38
3. Type of milk consumption:
No ofrespondents % age ofrespondents
Pouch milk 40 40%
Loose milk 42 42%
Both 18 18%
INTERPRETATION:
40% of respondents were consuming pouch milk, 42% of respondents were consuming loose
milk and 18% were consuming both.
40%
42%
18%
Pouch milk
Loose milk
Both
39. 39
4. Satisfied with milk you are consuming:
No of respondents % age of respondents
Yes 84 84%
No 16 16%
INTERPRETATION:
84% of the consumers were satisfied with the milk they were consuming and 16% were not
satisfied.
84%
16%
yes
no
40. 40
5. Factor influencing buying milk behavior:
Parameters
Most
important
Important Neutral
Least
important
Not
important
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Quality 72 72 24 24 4 4 - - - -
Taste 57 57 27 27 11 11 8 8 - -
Price 21 21 27 27 32 32 14 14 6 6
Packaging 15 15 24 24 39 39 15 15 7 7
Availability 47 47 30 30 12 12 9 9 2 2
INTERPRETATION:
72% of the respondants considered quality as most important factor affecting their milk buying
behavior. 57% of the respondants considered taste as most important for buying milk. Price was
considered as neutral factor by 32% respondants. 39% of the respondants considered packaging
also as neutral factor. 47% of the respondants considered availability factor as most important.
0
10
20
30
40
50
60
70
80
Most important Important Neutral Least important Not important
Quality
Taste
Price
Packaging
Availability
41. 41
6. Preferance of brand in pouch milk
INTERPRETATION:
57% of the respondants preferred Verka milk followed by 21% preferring Reliance milk. Tru
Milk and Mother Diary was preferred by 10% and 6% respectively. Remaining 6% preferred
Other brand.
Verka
57%
Mother Diary
6%
Reliance
21%
Tru Milk
10% Others
6%
42. 42
7. Scaling of Pouch milk
Attributes
Most
important
Important Neutral
Least
important
Not
important
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Price 14 14 26 26 41 41 11 11 8 8
Taste 24 24 43 43 14 14 13 13 6 6
Packaging 16 16 27 27 39 39 10 10 8 8
Availability 26 26 42 42 19 19 8 8 5 5
Schemes 14 14 29 29 36 36 17 17 4 4
INTERPRETATION:
According to 41% of the respondants, price did not affected them. 43% of the respondants
considered taste as an important factor. 39% of the respondants were not affected by the
packaging of the pouvh milk. 42% of the respondants considered availability as an important
0
5
10
15
20
25
30
35
40
45
50
Most important Important Neutral Least important Not important
Price
Taste
Packaging
Availability
Schemes
43. 43
factor in scaling the pouch milk. 36% of the respondants were not affected by the schemes
offered by the companies.
8. Sale of reliance milk according to type:
Milk type No ofrespondents % age ofrespondents
FCM 15 15%
SM 23 23%
TM 42 42%
DTM 20 20%
21%
54%
9%
16%
FCM
SM
TM
DTM
44. 44
9. Source of getting milk:
Source No ofrespondents % age ofrespondents
Retailer 11 11%
Door step 89 89%
INTERPRETATION:
11% of the consumers were purchasing the milk from retailer and 89% of consumers were
getting milk at door step.
0
10
20
30
40
50
60
70
80
90
Retailer Doorstep
11
89 %age
45. 45
10. Source of Information
Source %age
Friends/family 22
Salesman 20
Retailer 47
Other 11
INTERPRETATION:
Majority of the respondants i.e. 47% got the information about the Reliance milk from the
retailer. 22% of the respondants were informed by friends or family. 20% of the respondants got
information from the salesman and rest 11% from other sources.
0
10
20
30
40
50
Friends/family Salesman Retailer other
22
20
47
11
(%)
46. 46
11.Promotional activities affecting buying behavior
Milk type No ofrespondents % age ofrespondents
Yes 54 54%
No 46 46%
INTERPRETATION:
54% of the consumers were affected by promotional activities and 46% of the consumers were
not affected.
54%
46%
Yes
No
48. 48
1. Procuring milk:
Milk type No ofrespondents % age ofrespondents
Yes 100 100%
No 0 0%
INTERPRETATION:
All the retailers were selling milk.
Yes
No
49. 49
2.Procurement of different brands of milk:
Source No ofrespondents % age ofrespondents
Verka 77 77%
Reliance 9 9%
Mother dairy 6 6%
Tru milk 5 5%
Others 3 3%
INTERPRETATION:
77% of the retailers were procuring verka milk , 9 % of the retailer were procuring reliance milk
, 6% of the retailer were procuring Mother Dairy milk , 5% of the retailer were procuring Tru
milk and 3 % of the retailer were procuring others.
77%
9%
6%
5% 3%
verka
reliance
mother dairy
Tru milk
Other
50. 50
3.Demand of different milk types:
Milk type No ofrespondents % age ofrespondents
FCM 17 17%
SM 61 61%
TM 9 9%
DTM 13 13%
INTERPRETATION:
Demand for Full cream milk was 17% , 61% for standard milk , 9% for tonned mik and 13% for
double tonned milk.
17%
61%
9%
13%
FCM
SM
TM
DTM
51. 51
4. Factors affecting milk procurement behavior
Parameters Affects the
most
Affects
moderately
Neutral
Affects
mildly
Affects the
least
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Consumer
demand
72 72 24 24 4 4 - - - -
Profit
margin
57 57 32 32 9 9 2 2 - -
Shelf life 11 11 43 43 37 37 6 6 6 6
After sale
services
19 19 35 35 27 27 11 11 11 11
Special
schemes
18 18 41 41 29 29 7 7 7 7
INTERPRETATION:
72% of the respondant’s milk procurement behavior was most affected by consumer demand.
57% of the respondants were most affected by the profit margin.43% of the respondants were
moderately affected by the shelflife of the product. 35% of the respondants were also moderately
affected by the after sales services offered by the company. 41% of the respondants were
moderaltely affected by the special schemes offered by the company.
0
10
20
30
40
50
60
70
80
Affects the most Affects
moderately
Neutral Affects mildly Affects the least
Consumer demand
Profit margin
Shelf life
After sale services
Special schemes
52. 52
5. Rating of the milk being procured
Parameters Affects the
most
Affects
moderately
Neutral
Affects
mildly
Affects the
least
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Frequency
Percentage
(%)
Quality 11 11 15 15 56 56 17 17 1 1
Shelf life 14 14 29 29 33 33 19 19 5 5
Packaging 12 12 21 21 35 35 22 22 10 10
After sale
services
10 10 13 13 29 29 37 37 11 11
Schemes 3 3 17 17 19 19 44 44 17 17
INTERPRETATION:
56% of the respondants were not affected by the quality of the milk being procured.33% and
35% of the respondants were also not affected by the shelf life andpackaging of the product.
According to 37% and 44% respondants, after sale services and schemes affected them mildly.
0
10
20
30
40
50
60
Excellent Good Neutral Bad Worst
Quality
Shelf life
Packaging
After Sales service
Schemes
53. 53
6. Brand faces complaints by Retailers:
Brand No. ofrespondents % age ofrespondents
Verka 71 71%
Mother Dairy 12 12%
Reliance 5 5%
Tru milk 9 9%
Other 3 3%
INTERPRETATION:
71% of the retailers said verka
71%
12%
5%
9% 3%
Verka
Mother dairy
Reliance
Tru milk
Other
55. 55
FINDINGS;
Non- flexibility of schedule between distributer and retailers for providing the product.
Retailers do not agree for selling the Reliance product because of low consumer demand.
Margin problem and fewer margins provided by distributer to retailers.
Poor promotional activities and force retailers to sale milk.
Less number of distributors and non attractive schemes.
Less number of Reliance milk booths.
Variation in the taste of buttermilk.
57. 57
RECOMMENDATIONS
Company should conduct camps and awareness programmes in Ludhiana to create
awareness among people.
Company should attract more retailers by keeping low margin and by reducing the
price so as to increase the profit margin and sales.
Demand and Visibility go hand in hand. If Reliance Dairy can do certain promotions
as its competitor verka does, then it can attract sales. Promotion with the help of
boards, hoardings etc.
The major problem faced by Retailers is the supply problem i.e. problem with the
distribution. The company should aim at improving its supply chain management.
The company should increase incentives that can increase Retailers Nominal Income.
This can be done through certain Schemes that increase the overall sales.
The company should lay emphasis on proper promotion of the brand at the Retail
Outlet.
The company should get a feedback from Retailers time to time. In case they are
facing any problem it can be solved timely, without delays.
The company should start SMS service which will give the details to retailer’s full
account information.
59. 59
The project conclusion:-
After doing the project now conclusion is as we know Reliance is a popular
company and providing more products to the customers, Reliance dairy foods ltd
company provides the dairy products in some cities, and somewhere is more awareness
and somewhere is low but during the my summer internship in the Ludhiana the mostly
Retailers are dissatisfied with Reliance dairy foods ltd. So for this situation company
have to improve the quality , delivery systems and promotions etc.
Finally we conclude on basis of objective led down the project one as follows.
After this study I found that BUTTER MILK & CURDS selling of
Reliance dairy food products ltd is very poor in Ludhiana.
Mostly retailers are not ready to procure Reliance milk because of low
consumer demand.
Retailers are dissatisfied with TIMELY DELIVERY & CREDIT
FACILITY of Reliance dairy milk in Ludhiana.
Mostly retailers are satisfied with PRICE, PACKAGING,
REPLACEMENT FACILITY, & SCHEME of reliance dairy product.
61. 61
QUESTIONNAIRE 1
Dear Sir/Madam,
I am conducting a survey entitled “Consumer Awareness About Reliance
Milk.” Please give your valuable information, your information will be kept confidential
and will be used only for academic purpose.
Tanuj
MBA 2nd Year
PAU
Name:- _______________________
Address: - _______________________________________________
Age : - _________________ Gender : - _________________
Contact No.: - _________________________
Level of education:- __________________
Your monthly Income is(in Rs.)?
below 25,000 50,000-75,000
25,000-50,000 above 75,000
1) Which milk do you consume?
a) Pouch milk
62. 62
b) Loose milk
c) Both
2) Are you satisfied with the milk you are consuming?
a) Yes
b) No
3) How much quantity do you consume?
Pouch milk_____
Loose milk_____
4) Which factor influence your milk buying behaviour?
Parameters
Most
important
Important Neutral
Least
important
Not
important
Quality
Taste
Price
Packaging
Availability
5) In pouch milk which brand do you prefer?
a) Verka
b) Mother Dairy
c) Reliance
d) Tru Milk
63. 63
e) Others________________
6) How do you scale your pouch milk?
Attribute
Most
important
Important Neutral
Least
important
Not
important
Price
Taste
Packaging
Availability
Schemes
(Note:- 5- point likert scale is used where 1 is least preferred and 5 is for most
preferred)
7) If you buy RELIANCE milk pouch which pack you purchase?
a) Double toned milk
b) Toned milk
c) Standard milk
d) Full cream milk
8) Reason for buying/ not buying RELIANCE?
a)……………………………………………………..
b)……………………………………………………..
c)……………………………….…………………..…
9) Where do you get milk pouch?
a) Doorstep
b) From retailer
64. 64
10)How far do you travel to purchase milk , generally?
<100 mt
100-300 mt.
300-500 mt.
>500 mt.
11)How do you come to know about the RELIANCE milk?
a) Friends/family b) Salesman
c) Retailer d) Other
12) Does promotional activities affect your purchasing behavior?
a) Yes b) No
65. 65
QUESTIONNAIRE 2
Dear Sir/Madam,
I am conducting a survey entitled “Retailers Awareness About Reliance
Milk.” Please give your valuable information, your information will be kept confidential
and will be used only for academic purpose.
Tanuj
MBA 2nd Year
PAU
Name of retail outlet : - ______________________________
Name of retailer:- _____________________________, Age: - _________________
Area : - _____________________________________________
Contact No : - ___________________
City:- __________________
1) Do you sell milk?
a) Yes b) No
( proceed only if you sell milk)
2) In which area do you sell milk?
3) From which company do you procure milk?
a) Verka
b) Mother dairy
c) Reliance
d) Tru Milk
e) Other_________
66. 66
4) Which milk type has more demand?
Milk type Rank
Double tonned milk
Tonned milk
Standard milk
Full cream milk
5) Which factor influence your milk procurement behaviour?
Parameters
Affects the
most
Affects
moderately
Neutral
Affects
mildly
Affects
the least
Consumer
demand
Profit margin
Shelf life
After sale
services
Special
schemes
6) How do you rate the milk procured by you on various attributes?
Attribute Excellent Good Neutral Bad Worst
Quality
Shelf life
Packaging
After Sales
service
Schemes
67. 67
7) The buyers are mostly of the age groups
15-25yrs 26-35yrs 36-45yrs >45 yrs
8) Which brand is more preferred by buyers?
Brands
Most
preferred
Preferred Neutral
Least
preferred
Not
preferred
Verka
Mother dairy
Reliance
Tru milk
Other
9) Reason for procuring/ not procuring RELIANCE milk?
a)……………………………………………………..
b)……………………………………………………..
c)…………………………………………………..…
10) Which of the other milk products do you sell?
a) Paneer
b) Dahi
c) Lassi
d) Ghee
e) Other _________
11) According to you which brand has better product line?
Brands 1 2 3 4 5
Verka
Mother dairy
Reliance
68. 68
Tru milk
Other
12) Which brand faces more complaints by the customer?
Brand Rank
Verka
Mother Dairy
Reliance
Tru Milk
Other
13) Which type of complaints you face the most?
Type of Complaint Rank
Pouch leakage
Bad Odour
Bad printing
Bad Quality
Adulteration
