1

A

SUMMER TRAINING REPORT

ON

“BRAND LOYALTY OF BARODA DAIRY’S MILK

PRODUCT”

FOR

Baroda District Co-operative Milk Producers Union Ltd., Baroda Dairy

AS PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

JUNE-JULY, 2011

ANAND INSTITUTE OF MANAGEMENT MBA PROGRAMME

(AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY) OPP. TOWN HALL, NEAR GRID, ANAND

Mr. Snehal Bhatt Mr. A. P. Jagani

Lecturer Marketing Officer Anand Institute of Management Baroda Dairy

Submitted By

JALPESH R LAD ENROLLMENT NO: 107020592046

M.B.A- SEMESTER 2

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CERTIFICATE

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PREFACE

Summer project is an internal part of MBA program. This exercise enables the

students to get practical exposure to realities of corporate world in action and practice. A

great knowledge comes from better book education and a good experience. Thus we got a

truly rewarding chance to get the best feel and experience of the real world economic

environment in the best possible manner.

I was required to undertake a detailed study of the activities of Baroda Dairy as a

whole and its Marketing Department etc. It helped me to apply theoretical knowledge into

practical experience, working with all kinds of perishable commodities. Looking at Baroda

Dairy it has one of the modern plants with latest equipments and the best personnel.

Having milk as a major product, it has various by-products, which also has a bigger

share in the total production. People have total faith in the Baroda Dairy products and it

has highest quality control norms, duly certified with ISO 9001:2000. Baroda Dairy

products have become most popular and preferred by people.

The intent of my works is to provide a survey on “Brand Loyalty of Baroda Dairy‟s

Milk Products”. Due to the good guidelines and support of marketing department of Baroda

Dairy, I could produce a useful survey from consumers. This survey covers 100

consumers of 3 different areas of Baroda city (i.e. Vasna, Gotri & Old Padra Road). Any

successful primary research requires good response. Due to the same I am able to

complete the project report, which is submitted as a part of two years course leading to

Anand Institute Of Management.

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ACKNOWLEDGEMENT

I have been able to prepare my report successfully and I acknowledge a special

thanks to all those people without whose support it was impossible for me to make the

project report. It has been an enriching experience for me to undergo my summer

training at “Baroda Dairy” which would have not been possible without the goodwill and

support of the people around.

I would hereby take this opportunity to show my gratitude towards all my mentors

for what I have learnt during my training. A good response, feedback and co-operation

given by whole staff helped me in gaining knowledge and solving my queries. I

convey my sincere thanks to all the officials of Baroda Dairy.

I would like to thank to Mr. Ravindra Mathur (Managing Director) for giving me this

opportunity to work at Baroda Dairy. I am also thankful to Mr. V.C.Patel Marketing

Ma Mr. A. P. Jagani Officer

Mr. Alok Desai (Training Officer) for guiding me and supporting me in giving

complete and comprehensive data required for my project work. Finally I am thankful to

all Baroda Dairy‟s Family.

I would like to thanks our honorable Director Dr. N. N. Patel who provided

me the permission for the Industrial Training. I would also like to thank Mr. Snehal Bhatt

for guiding me and other faculty members and staff of the institute who co-cordially helped

me about morally and provided me all the academic and other information required for this

industrial training.

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DECLARATION

This project report entitled “BRAND LOYALTY OF BARODA DAIRY’S MILK

PRODUCT” has been submitted to, Anand Institute Of Management, Anand in partial

fulfillment for the award of Degree of Post Graduation in Masters Of Business

Administration . The undersigned hereby declare that this report has been completed by

me under the guidance of Mr.Ashok Jagani (Sr officer Marketing) and Mr.Snehal Bhatt

(Faculty Member, Anand Institute Of Management, Anand)

The report is entirely the result of my own efforts and has not been submitted either in part

or whole to any other institute or university for any degree.

JALPESH R. LAD

Date:

Place:

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EXECUTIVE SUMMARY

The report consists of the details on Baroda District Co-operative Milk Producers

Union Ltd. It is a Co-operative society. The main aim of the welfare of the society by

providing quality milk to its consumers at an affordable price.

It has various functional departments such as Production, human Resource,

Finance, Marketing, Purchase and Stores, Quality Assurance, Dispatch and Logistics. A

detail study of Marketing has been made so as to get a clear view of the working of each

of them.

In addition to it a survey on the „Measurement of Brand Loyalty of Baroda Dairy Milk

Products‟ has been done in the Baroda city. This survey is useful for the company to know

that to what extent the customers are loyal towards the milk products of Baroda dairy. This

will enable the company to take appropriate action as needed to increase as well as to

retain its loyal customers in the market. The survey has been analyzed by presenting it in

the form of charts and based on it the results and findings have been made. Lastly the

conclusion as well as the recommendations necessary has been made.

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INDEX

Topic Page No.

CERTIFICATE FROM THE ORGANISTION

PREFACE

ACKNOWLEDGEMENT

DECLARATION

EXECUTIVE SUMMARY

GENERAL INFORMATION INTRODUCTION VISION AND MISSION STATEMENT ACHIEVEMENTS ENVIRONMENT POLICY COMPNAY INFORMATION

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9 9 10 11 12

GENERAL INFORMATION OF DEPARTMENTS

PRODUCTION DEPARTMENT FINANCE DEPARTMENT HUMAN RESOURCES PURCHASE & STORE DEPATMENT QUALITY ASSURANCE DEPARTMENT DISPATCH & LOGISTIC DEPARTMENT MARKETING DEPARTMENT

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19 23 27 33 36 39 41

BRAND LOYALTY 51

RESEARCH METHODOLOGY 53

ANALYSIS 57

FINDINGS & CONCLUTION 68

RECOMMOMDETIONS & LIMITATIONS 71

BIBLOGRAPHY

ANNEXURE

8

General

Information

9

INTRODUCTION

Traditionally Dairy was a subsidiary occupation of the farmer. However, the

contribution of the farmer‟s income was not prominent as it was from farming. But this

attachment to dairy was keep as tradition handed down from one generation to the next.

Baroda District lies in the centre of Gujarat, a state of Western India, well-known for co-

operative dairying. Baroda District co-operative Milk Producers‟ union Ltd Is the full name

of Baroda dairy. As the name suggests that it is a co-operative union The Company is

engaged in the production of milk, flavored milk, butter and ghee, butter milk. The

company also produces a wide variety of ice-cream, shrikhand, and many sweets through

Sugam unit, a subsidiary of Baroda dairy. The plant is situated in Makarpura area, in the

center of the city. The plants of Baroda dairy are fully equipped with latest technology and

modern facilities. Baroda dairy always work for welfare of society.

VISION AND MISSION STATEMENT

Baroda dairy is a co-operative society and it is not just a profit motive unit but to

serve the society. The main mission of the Baroda dairy is to assure and safe guard the

interest of the both nominal consumer of milk in city area and supplier of rural areas. And

for this the Baroda dairy deals accordingly to provide the best quality products at a

reasonable price to their customer.

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ACHIEVEMENTS

• SUGAM‟ unit of Baroda dairy received “Jamanalal Bajaj Award” in the year 1994 for

the best Mgt.

• In 1998, to remain as a „Market Leader‟ in this competitive World, Baroda dairy has

acquired the ISO 22000:2005 & 9001:2008 certificate.

• In 1998, vice president, Shri Krishna Kant Awarded Baroda dairy by presenting

“National Productivity Award” for its production & development.

• In 2001, Baroda productivity council organized “Good Housekeeping Competition” in

which the Bodily Unit of Baroda dairy won the prize.

• In 2002, Baroda dairy received certificate from “Gujarat Safety Council” for the

various safety measures adopted at all the units.

• In 2003, Baroda dairy received ISO 14001 certificate under its environmental policy.

• Highly automated plan for manufacturing GULAB JAMUN, SHRIKHAND and PENDA

unique in India “Sugam” brand

• Second in horticulture

• Received 2nd prize for minimum accidents among drug, pharmaceutical, food and

dairy industries.

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ENVIRONMENT POLICY

We are committed to protect and preserve natural Environment for social welfare

and co-existence. Baroda Dairy, A leading co-operative organization is engaged in

manufacturing and marketing of milk and milk products in India and abroad.

FOLLOWING ARE THE PRINCIPLES OF ENVIRONMENTAL POLICY

• Control our plant operations to prevent pollution.

• To conserve natural resources and energy.

• Comply with applicable environmental legislation and regulations.

• Applying greening of the earth within our premises.

• Continually improve our environmental performance.

• To minimize generation of waste and follow appropriate methods for it‟s disposal

• Create awareness among employees on environmental issues and environmental

management system.

• Keep our work environment clean and safe.

• This Environmental policy will be communicated to all employees, contractors and

suppliers of Baroda Dairy.

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PRESENT PROFILE OF COMPANY

UNIT NAME:-

Baroda District Co-operative Milk Producers

Baroda Dairy.

FORM OF ORGANIZATION

Co-operative Sector

ESTABLISHMENT YEAR

24th December 1957

Rg. No.:- D 4/57.

REGISTERD OFFICE

Baroda District Co-operative Milk Producers

Union Ltd., Baroda Dairy.Opp.

O.N.G.C. Regional office,

Makarpura Road, Vadodara-390009.

Phone: - 0265-2641066

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TOTAL UNITS

1. Baroda Dairy – Baroda

2. Sugam Unit – Baroda

3. Cattle Feed Factory – Itola

4. Milk Chilling Center – Bodeli

5. Veterinary Sub Unit – Savli

6. Veterinary Sub Unit – Dabhoi

SIZE OF THE UNIT

Large Scale Industry

BANKERS OF BARODA DAIRY

1. The Baroda Central Co-operative Bank Ltd.

2. The UCO Bank, Baroda

3. Bank of Baroda, Baroda

4. Punjab and Sindh Bank, Baroda

5. Bank of India

6. Central Bank of India, Baroda

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DIMENSIONS

1. Area in Sq.Km.77.94

2. No. of District: 12

3. Urban Land: 611300 Hectares

4. Irrigated land: 127900 Hectares

CHAIRMAN

Shree Narendrabhai Patel

VICE-CHAIRMAN

Shree Ajitsinh Thakor

MANAGING DIRECTOR

Shree Ravindra Mathur

AUDITOR:-

Shree N. A. Chauhan

INVESTMENT OF BARODA DAIRY

Particulars Amount (Rs.)

Land 54, 98,752

Building 3, 56, 68,046

Plant & Machinery 8, 08, 41,885

Furniture & Fixtures 80, 89,866

Vehicles 43, 54,466

Total 13, 53, 53,015

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PRESENT PRODUCTS MIX

Baroda Dairy is a unique place processing several products from the basic raw-material

i.e. Milk, These products are as under and are immensely popular in and around city of

Baroda.

• Milk

1. Amul Gold

2. Amul Shakti

3. Amul Slim & Trim

4. Amul Cow‟s Milk

• Butter Milk

• Jeera Chhas

• Flavored Milk

1. Elaichi

2. Kesar

3. Mango

• Butter

1. Table Butter

2. White Butter

• Ghee

1. Surbhi

2. Amul

• Cheese

• Masti Dahi

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PRODUCTS OF SUGAM UNIT

• Ice Cream

1. Vanilla

2. Mango Chocolate

3. Strawberry

4. Pineapple

5. Rose

• Cones

1. Vanilla

2. Chocolate

3. Butter Scotch

4. Tri tiny chocobar

• Shrikhand

1. Mango

2. Kesar

3. Badam

4. Pista

5. Elichi

6. Butter Scotch

• Lassi

1. Rose

2. Mango

• Sweets

1. Kaju katri

2. Mava

3. Kopra pak

4. Kesar peda

5. Gulabjamun

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COMPETITIVE SCENARIO

Baroda dairy is offering the largest number of dairy product to the customer in

Baroda district. So the dairy has largest market share in these types of products. The dairy

enjoys the position of market share of more than 85 % in Baroda city. It‟s due to the

policy of providing the best quality of product at reasonable price. Dairy faces competition

from many big organizations for its sugam unit products. It has also loose vendors and

small private dairies, as competitors for Baroda dairy unit products, mostly for milk.

ORGANIZATIONAL CULTURE

The organizational culture of Baroda dairy is the greatest factor for employee. All

the departments are highly co-related and through which information reaches easily and

especially to all levels.

All the employees work Co-operatively and also feel as family members. In the

dairy, discipline is maintained so that employees at all levels have respect for each

other. Any kind of nuisance is not seen in the dairy.

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GENERAL

INFORMATION

OF

DEPARTMENT

S

19

PRODUCTION

DEPARTMENT

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DEPARTMENTAL STRUCTURE

Production Manager

Assistant Manager

Shift Superintendent

Worker

Operator

Supervisor

Technical Officer

RMRD

Section

Process

Section

Ghee

Section

Pouch Packing

Section

SAewSection

Butter

Section

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ACTIVITIES OF THE PRODUCTION DEPARTMENT

There are 1192 registered co operative societies, giving milk to Baroda dairy.

Baroda dairy has set up a modern plant for the production process. It has established

its plant in a modern high tech style which functions nearly 80% automatically.

1) Raw Material Receiving Dock

It is a big open area, where milk is brought from various societies by way

of tankers and canes. The cans are emptied in the milk tank with the help tankers and

cranes. The cans are emptied in the milk tank by the way of belt conveyors system

and then after the cans are washed in automatic washing machine. The average number

of cans washed per minute are

5 to 6. Before distilling cans, the milk is graded and weighted. The samples from cans

are taken and sent to the laboratory where they are graded in terms of fats and S.N.F.

once the milk is collected in the tank, the net process will start to separate the fat and cash

will be separately stored.

2) Pasteurization

The term pasteurization means heating treatment and cooling to suitable

temperature before distribution. After the separation of FAT and SNF, the milk is

passed through the heat section of pasteurization and is the very first step of

pasteurization. The milk is boiled up to 74 c for 15 seconds in the machine and then

very next second it is chilled at 4 to 6 c instantly. This will lead milk to be cream less that is

pasteurized.

3) Standardization

To reduce the FAT percentage of milk SMP or skimmed milk is added and to

increase the FAT percentage, cream is added. Cost of pouch is worked out according to

the stand of fat in the milk.

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After standardization, milk is stored in silos. Sample is taken for analysis of FAT,

SNF. Acidity MRP tests etc.If the result is o.k., it is sent to the storage tank. Milk

sample from the same further subjected to analysis prior to packing.

4) Homogenization

It is the process of mixing. Humanizer is used to homogenize milk, butter milk

and flavored milk.

5) Pouch packing section

There are 14 machines used for packing the milk pouches. The milk from

pasteurization section is restored in the tanks and from there it is brought to the section

by the help of pipelines. Here the machines are operated automatically giving the bags of

500 ml each. The number of bags to be filled with the milk can be derived through the

regularity of machine. An average output number of bags per hour are 3000

pouches. The department also consists of the carats washing system and it is also fully

automatic.

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FINANCE

DEPARTMENT

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FINANCE DEPARTMENT

INTRODUCTION

The first & foremost requirement of any business is finance. Finance is

required in each & every stage of the business. Business is nothing but a process of

making money through money. So to make money you need money. It can be acquired

through various sources. After getting sufficient money the process of utilization of it starts.

The finance dept. has to deal with not only the procurement of finance but also with the

proper utilization of it. Finance is the basic requirement for purchase of assets, production

of goods, marketing, selling, etc. The finance dept take the decision regarding financial

matters. Thus, we can say that finance dept. is one of the most important dept.

FINANCIAL PLANNING

“Planning” is one of the most important principles of Mgt. the success of the

org. depends mainly on proper planning. The proper estimation of the requirement of

funds, determination of sources from where the fund will be raised and its proper

utilization can be termed as financial planning.

Financial planning includes the preparation of projected profit & loose account,

fund flow statement & balance sheet. Estimation of growth in sales is very important

because from that the need of funds is decided. As due to rise in sales there is need of

more assets. As more investment has to be made for additional plant & machinery to raise

its capacity to produce. Additional current assets are also required to products & sell

more quantity.

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SOURCE OF FINANCE

Baroda dairy does not raise finance for short term as all the requirement for

short-term finance are fulfilled by the internal sources (i.e. reserves & surplus). Mostly,

finance is aisled from long-term sources of finance. All the requirement of finance is

fulfilled either by issuing equity shares or by taking loan from “National Dairy

Development Board”. The repayment of loan is done in equal installments, the amount is

predefined. Generally, 6% interest is charged on the amount of loan.

CAPITAL STRUCTURE

Capital Structure of an organization refers to the makeup of its Capitalization.

Capital structure includes all the long term source of finance. Thus capital structure of

company shows the borrowed capital and their sources.

Baroda Dairy is co-operative society. So, its shares are not listed in stock

exchange.

MANAGEMENT OF FIXED ASSETS

Assets of any organization can be classified into two parts:

• Fixed Assets

• Current Assets

Fixed Assets are those assets which remained beyond the accounting year. In

other words, they are the assets which would be in used for more than one year

investment. Fixed assets are vital decision in financial literature. The investment decision

involving fixed assets is knows “Capital Budgeting”.

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CAPITAL BUDGETING

In Baroda Dairy, there is a budget committed by managing director along with

assistant managers. The budget committee considers the provision years, figure and

every department received by comparing the actual performance, modernization and

expansions. The decision is taken by the budget committee and the Project Report is

also prepared by them.

The following points are considering in budgeting steps.

1. Allot money for preparation of budget.

2. The money is available as per the requirements with financial institutions.

3. Review with projected finance and its implementation.

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HUMAN

RESOURCE DEPARTMENT

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DEPARTMENTAL STRUCTURE

DEPARTMENTAL STRUCTURE

Managing Director

General Manager

Manager

(Personnel)

Manager

(Time Keeping)

Manager

(Welfare)

Superintendent

(Telephone)

Officer

Jr.Officer

Sr.Executive

Sr.Assistant

Jr.Assistant

Officer

Jr.Officer

Sr.Executive

Time Keeper)

Sr.Assistant

(Time Keeper)

Jr.Assistant

Officer

Jr.Officer

Sr.Executive

Sr.Assistant

Jr.Assistant

Sr.Officer

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HUMAN RESOURCE MANAGEMENT AT BARODA DAIRY

“Baroda Dairy is one of the leading Dairy” It shares collaborative and friendly

relationship with preferred partners, employees, consumers and other workers involved to

it. It maintains a transparency in handling the above relations and stick to its standards.

The HRM function or Personnel department function in Baroda Dairy is indeed

vast. All major activities since working of a worker – from the time of his/her selection in to

an organization until he/she resigns or get retired or leave job for any reason – comes

under the preview of HRM.

The HR planning in Dairy is very smooth and transparent. It made Baroda Dairy a

HUGE BIG Family of approximately 1400 employees. In Baroda Dairy major attention is

given on the welfare and Safety of employees. They are also given different kind of

incentives to increase their production effectiveness.

Dairy also focuses on developing human value and potential through various

bearing and development activities and provide favorable atmosphere. All these functions

are performed by HR in Baroda Dairy.

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Human Resource Is Divided Into Different Parts

The HR in Baroda Dairy in mainly divided into four sections:

• Personnel Department

Recruitment, selection, training, industrial relations, negotiation with Union etc.

• Administration Department

Its handles canteen, security, welfare facilities, safety, Any theft or loss,

Absenteeism , events, AGM meeting organizing, licensing work, hygiene of various

dept, etc.

• Time Keeping Department

It handles salary & wages, records of employees, provides benefit of statutory,

ESS, Form fill up, punching System, provident fund, ESI etc.

• Telephone Department & Computer Department

Maintains the connection of each department and provides facility of CUG to each

employee to remain in contact while doing work. So that if any query or problem

occur they can contact each other easily. Computer system handles the whole MIS

in Baroda Dairy.

Trade Union in Dairy

Trade unions are the voluntary collective group of employees or employers formed

to promote and convey their interest through collective actions to the organization.

At Baroda dairy, there are two unions. One for the workers & another for officers which are

working for the following:-

1. BARODA DAIRY TRADE UNION:- ( FOR OFFICER)

2. RASTRIYA MAJDOOR UNION:- ( FOR WORKERS)

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• To get adequate bonus

• Strive for better working condition.

• To secure better pay scale for employees in keeping with the prevailing standards

of living in the country.

• To work for welfare and development of workers educational facilities and group

benefit scheme for them.

Recruitment

Recruitment is a process of searching for prospective employees & stimulating

them to apply for the job in the org. Recruitment of an employee is done on the bases of

“Human Resource Planning” carried by Baroda dairy Mgt. At Baroda dairy recruitment is

done through both sources i.e. internal as well as external sources.

• Internal Recruitment

Recruiting employees internally like promotion, transfers, etc.

• External Recruitment

Recruiting employees form job portals, employment exchange, campus interview,

advertisements. Dairy uses External source of recruitment mostly.

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Selection

Selection procedure includes the selecting Right candidate, at Right time, for

right job. It is as follows:

• Application form

• Bio-data analysis

• Short-listing.

• Interviews

• References/security screening

• Ability tests

• Aptitude, intelligence and personality

• Work experience/short term contracts

• Medical checkups.

• Placement/Appointment.

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Purchase and

Stores

Department

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Inventory Management System

In Baroda dairy, the store department uses the FIFO method. I.e. First In First Out

method of inventory management.

Purchase Procedure

Baroda Dairy‟s main raw material is milk. The purchase department has only to pick

up just 10% of other raw material. The purchase procedure is as under:

1. First of all respective department heads find out their need and get it approve by

the managing director.

2. Then they contact the stores department.

3. After this they send an indent to the purchase department.

4. The purchase department then asks for quotation from the suppliers.

5. After the quotations are received will then be selected.

6. The least cost giving suppler will then be selected.

7. Then take the approval and give the authority to the supplier who gets the

quotation passed.

8. Then just let the finance department will make the payment the supplier after the

delivery of goods.

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Types of Stores

• Cold Stores

The cold stores are use for storing milk, chhas, flavored milk, dahi etc. and many

other products.

• General Store 1

In this general store, the veterinary products, medicines, transportation instrument,

buckets, flavors for milk and shrikhand are stored here.

• General Store 2

Here plastic of milk bags is store; tins of ghee, milk powder, fodder for cattle‟s etc.

are stored.

36

Quality

Assurance

Department

37

DEPARTMENTAL STRUCTURE

Managing

Director

Quality

Control

Manager

Worker

Sampler

Junior

Chemist

Quality

Control

Officer

Senior

Chemist

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Activities Carried By People in Quality Control Lab

• Superintendent

The superintendent observes all the activities in the lab, packing and giving

the guidance.

• Junior Officer

Here the officer looks after all Agmarks related to ghee and butter in the lab.

• Senior Officer

Here the senior chemist looks after ISO 14000 and ISO 9000-20000

certificates.

• Chemist

The chemist looks after all the society milk, pasteurized milk and other milk

products.

• Sampler

The sampler takes the samples from the milk received from different co-

operative societies.

• Micro Biologist (Milk Plant)

The microbiologist cleans up all the tools and machines, which are used for

milk, butter and buttermilk.

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Dispatch and

Logistics

Department

40

Dispatch and Logistics

All activities carried out under the supervision and order General Manager of Marketing

head i.e. order of milk and milk products are dispatched as per the order of customers and

retailer and all records of dispatch are kept in dispatch register and computer.

• In dispatch department the work is divided in 3 shifts

1. Morning

2. Afternoon

3. Evening

• Sources of Mode of Transportation

There are trucks, tempos, insulated vans, three wheeler tempos are used to deliver the

milk and the milk products in all the three shifts.

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Marketing

Department

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INTRODUCTION

Every organization whether big or small needs to have a marketing department.

Marketing department serves as an important part of an organization, which bring revenue

in the business. It depends mostly on the marketing dept. as to how they sell the final

products & creates demand for it. Baroda dairy is having a fully fledged marketing dept.

where all the functions related to marketing are performed. As a part of marketing strategy

Baroda Dairy has increased its Morning milk centers to1078, full time centers to 1322, and

franchisee to 67 from 56.

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DEPARTMENTAL STRUCTURE

Marketing

Manager

Superintendent Senior Officer Senior

Supervisor

Marketing

superintendent

Junior

Superintendent

Junior

Officer

Junior

Supervisor

Junior

Officer

Junior

Assistant

Senior

Assistant

Junior

Inspector

Salesman

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PRODUCT PLANNING

At Baroda Dairy, the market division set up a team which surveys and researches

into the need of the customers. When Baroda dairy launches any new product it questions

consumers that what they require in their product. Baroda dairy also researches about its

new introduced product

MARKETING RESEARCH

Marketing research may be defined as scientific & controlled process of gathering

non-routine information regarding the product & its market condition. It helps the Mgt. to

solve many problems. Marketing research concentrates on the study of products planning

& development, pricing policies, effectiveness of personal selling, advertising & sales

promotion, distribution system, marketing strategies, market competition, buying behavior

& attitude of consumer.

Marketing research is carried out periodically with the help from the students who

approach “Baroda dairy” for industrial training. Survey is conducted by the students doing

post graduation in Masters In Business Administration under the guidance of “marketing

dept”. At the end of the survey, the results are verified & conclusion is abstracted.

TARGET MARKET

The whole city of Baroda is the target market for Baroda dairy. Also the town of

Baroda city is the target market for the Baroda dairy.

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MARKET SHARE

Baroda dairy has 80% market share. It is market leader. It is due to the quality and

variety of milk & milk products which are sold at reasonable price.

PRODUCT PLAN

A “product” is a tangible thing that has capacity to satisfy human needs. The

“product” forms an important part of marketing mix. If the product fails to satisfy consumer

there will be no effect of additional cost incurred on marketing the products. Before

launching any new product or before having change in product mix, a survey is carried on

to know the view of consumer. E.g. during one survey it was found that the consumer were

in a need of milk with more fats. So, after proper analysis by the marketing dept. and with

the concerned from production dept. milk having more fats was made available to the

consumer. It is sold under the brand name “Amul gold”.

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ADVERTISING

It can be defined as “any paid form of non-personal presentation & promotion of

ideas, goods & services by an identified sponsored. It is a means for mass communication

and an impersonal salesmanship for mass selling.”

Advertising is a major promotional tool. It has following strengths as a promotional tool:-

1. It offers a planned & controlled message.

2. It can influence many people / prospects at a low cost.

3. It can reach to the prospects that cannot be approach easily by salesman.

4. It assists in the introduction of a new product in the market.

Baroda dairy does not have to advertise on a large scale for its products because

most of the people are aware of the products produced by the dairy. In fact, the products

are of daily used and they are so popular that there is little need for advertisement. The

different media used for advertisement by the Baroda dairy are:- Road side hoardings,

bottom line advertisement on television.

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SALES PROMOTION

Baroda dairy enjoys the position of market leader and it has satisfactory sells, so there is

no major need of sales promotion but, whenever any new products is launched in the

market it is sold at a introductory price. i.e. price less than the normal price. Baroda dairy

does not give promotional schemes in its entire product. Dairy also gives cash discount in

its entire product. Usually at time of festival days. Apart from above description the dairy

provide incentives in form of Commission. It described as follow.

• 30 paisa commission as road side commission of milk/litter.

• 38 paisa is to fall time as their as their electricity is consumed for whole Day/litter.

• 2 rupees commission of flavored milk / 200ml.

• 50 paisa commission of jeera chhas / 100 ml.

Instead of all this is one scheme for masala chhas as it is in introduction stage. 10 packets

free purchasing of 60 packets of masala chhas. Dairy give incentives on each pouch sold.

This is another promotion effort done by dairy. By inviting school children, house wives

and other focus group to dairy and conducting on effective awareness program by

focusing on milk processing pasteurization, chilling clarification and homogenization. Now

in a mall culture Baroda Dairy‟s products are also available in mega malls like

Spencer’s,

Reliance fresh,

More mega store etc.

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MARKET SEGMENTATION

At Baroda dairy the market segmentation is done in several ways for various

products. But, for the plain milk there is no segmentation and it is marketed & sold all over

Baroda. Whereas, for flavored milk & other products there is geographic and demographic

segmentation. In geographic segmentation the flavored milk is distributed from the “milk

bars” located at the famous and mostly crowded areas of the Baroda. For e.g. Kamati

baug / sayagi baug, raopura, fatehgunj, outside the dairy, Kareli baug etc. But the most

important place where there is highest demand for flavored milk is the “Railway station”.

The demographic segmentation means dividing the consumer. Market in terms of age,

sex, family, income, occupation, etc. At Baroda dairy, it is done by having “milk bars” near

schools & collage, as the major consumers for dairy products are children any young

people.

CHANNEL OF DISTRIBUTION

One level distribution system is managed at Baroda dairy for all the products

excepted ghee. A one-level channel contains one selling intermediary, such as retailer.

Products like milk, flavored milk, curd, chhas etc. One level system is maintained where

there is only a retailer between the manufactured and the final consumer.

Manufacturer

Retailer

Consumer

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The durability of milk is only for 72 hrs. So the distribution has to be such that milk

is delivered to the final consumer before it gets spoiled. Hence, there is only one mediator

between the manufacturer & the final consumer. For the milk distribution there are morning

& evening booths & the full time centers, which work as per the orders from Baroda dairy.

The morning booth centers have a short span of working from 4:00am to about 7:00 am

but they also have a major chunk of sales as compared to the full time centers. About 80%

of the sales are through the morning booth and the rest 20% are by the evening booth s as

well as full time centers. Now this retailers are stared the home delivery to boost up their

sale. They have a coupon system where in the coupon are issued to the customers and

milk is delivered against it. The distribution system at Baroda dairy is very systematic. The

vans take their particular routs & deliver the crates to the morning centers. While returning,

these vans deliver the milk to the FTC and collect the empty crates from the morning

centers. There are about 1078 morning centers, & evening centers, 322 full time centers

and 67 franchisee. In all there are about 114 routes for morning centers, 3 routes for

evening centers & 20 routes for afternoon centers. Baroda Dairy also providing milk

through mega malls such as more mega mall, Reliance fresh, Spencer‟s.

PRICING POLICY

“Price” may be defined as the value of product expressed in the monetary terms

which a consumer pay or expected to pay in exchange and anticipation of the expected or

offered utility. Therefore, we can say “price is a link between the consumer and

organization”. As the main objective of Baroda dairy is not profit maximization, so it sets

Reasonable price for its products. It considers the interest both the parties. I.e. the

suppliers of milk and the consumers currently, all over India the price of milk is fixed by the

NDDB (National Dairy Development Board)

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EXPORT

The products produced at Baroda dairy are not exported to other countries. The products

of SUGAM unit are Exports to countries

• USA

• SINGEAPORE

• JAPAN

• AUSTRALIA

• KUWAIT

• BATLERIN

• DUBAI

• ABUDHABI

WAREHOUSING & TRANSPORTATION

WAREHOUSING

Baroda dairy does not have any warehouse but it has “cold storage”. Mostly, all the

products are perishable in nature so there is a facility of cold storage and it is within the

dairy premises.

TRANSPORTATION

There is use of private vehicles i.e. tempo & trucks which are hired to transport milk. The

transportation cost is low as it is within Baroda district.

LIST OF COMPETITORS

Small loser milk Retailers.

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BRAND

LOYALTY

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INTRODUCTION

A general term used to describe the extent to which consumers buy or use a brand

in preference to other brands. In practice consumers often buy or use several brands,

therefore brand loyalty is a relative measure.

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or

otherwise continue using the brand and can be demonstrated by repeated buying of a

product or service or other positive behaviours such as word of mouth advocacy.

Brand loyalty of current clients is a critical asset that must be managed carefully.

This loyalty is a major barrier to competition. Countless new business has succeeded

because companies neglected existing customers.

Strength of preference for one brand compared to other similar available options.

This is often measured in terms of repeat purchase behavior, or in terms of price

sensitivity.

• Brand equity

Investors: Brand equity is brand valuation

Customers: value of brand to customer compared to other brands

• Brand equity versus Brand loyalty

Brand loyalty is consistent repurchase of brand accompanied by a

favorable brand attitude

Brand equity is the value of the brand to the buyer and seller

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RESEARCH

METHODOLOGY

54

BACKGROUND OF THE STUDY

There are many reasons behind conducting this study. The first reason is to find

out brand awareness among the citizen of Baroda, who are consumer of Baroda Dairy`s

milk & milk products. And the second reason is to find out loyalty of consumers

towards Baroda Dairy`s milk products.

For conducting this survey, I had prepared a questionnaires‟. I met 100 persons

from different back ground and filled questionnaires‟ from them.

IMPORTANCE OF STUDY

From this research Baroda Dairy would get know certain thing like:

• To know that people of Baroda are well aware of Baroda Dairy‟s milk

products.

• To get the decision about introduction of new products under

existing brand or new brand.

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OBJECTIVES OF STUDY

The main objective of this survey is to find out the Brand loyalty of Baroda Dairy‟s

milk products.

Research Design

For this particular research descriptive research design has been used. Descriptive

research design is used to know about the market characteristics, marker share.

Sources of data:

Primary Data

I had use questionnaire as a tool in my marketing research. I started my project very first

educating the respondents about my entire project and ask them to cooperate with me.

Mostly all the respondent were aware of this type of surveys. So I didn‟t face any type of

difficulty during my project in the process of explaining and taking their responses on the

questionnaire.

Secondary Data

Secondary data I got through following sources.

● Past Reports

● Data through internet source

● Annual Reports of the Dairy

Data collection method

Personal survey has been used to collect the data through structured questionnaire. Data

was collected between 14th June-2011 to 28th June-2011 in Baroda city.

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Population

The population consists of the consumers of Baroda city.

Sampling Method

Convenience Sampling Method has been used to decide on the selection of samples.

Sample Size:

100 consumers.

Sampling Unit

I had taken consumers of different area in the Baroda city i.e. Vasna, Gotri & Old Padra

Road.

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ANALYSIS

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Data Analysis & Interpretation

Chart-1

Do you consume Baroda Dairy‟s Milk Products?

a) Yes--------- 98%

b) No---------- 02%

Interpretation

Here, the chart shows that 98% people buy Baroda dairy‟s milk products and 2%

people doesn‟t buy milk products out of 100 samples from Baroda city

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Chart-2

If yes, what is the reason you like Baroda Dairy‟s Milk Product?

a) Quality-------------56.12%

b) Price----------------13.26%

c) Brand Image------24.50%

d) Quantity-----------06.21%

e) Other reason------00.00%

Interpretation

Above the chart shows that 56.12% Quality, 13.26% Price, 24.50% Brand image,

6.21% Quantity/size, 0% other reason are the reason why the people choose Baroda

dairy‟s milk products.

Most of the people like Baroda Dairy‟s Milk Product because of its Quality & Brand

image in the Market

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Chart-3

3) Which milk products of Baroda dairy do you like most?

a) Chas -------------------------------68.37%

b) Flavors milk ----------------------09.18%

c) Ghee & cow ghee --------------10.20%

d) Curd -------------------------------12.25%

Interpretation

Above the chart shows that 68037% people likes Chas,

09.18% Flavored milk, 10.20% Ghee & cow ghee and 12.25% curd are the most

liked Baroda dairy`s milk products

The products which is most like by the people is Chas.

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Chart-4

4) Which milk do you currently use?

a) Amul Gold----------------------------12.25%

b) Amul Shakti--------------------------76.50%

c) Amul Slim and Trim----------------02.05%

d) Amul cow`s milk--------------------09.20%

Interpretation

Above chart shows that 76.50% people uses Amul Shakti, 12.25% uses Amul

Gold, 9.20% uses Amul cow‟s milk & 2.05% people uses Amul Slim & Trim.

Most of the people buy Amul Shakti Milk

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Chart-5

5) Reasons for using Baroda Dairy‟s milk products?

a) Easily available ------------------61.23%

b) Proper fat contain ---------------12.25%

c) Family preference----------------20.40%

d) Price -------------------------------06.12%

Interpretation

The above chart shows the reason for using Baroda dairy`s milk product. The main

reason of people is Easy Availability.

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Chart-6

6) Will you buy Baroda Dairy‟s milk product if price increase by

a) Rs. 1/- per product Yes ------84.70% No ------15.30%

b) Rs. 3/- per product Yes ------58.20% No ------41.80%

c) Rs. 5/- per product Yes ------36.70% No ------63.30%

Interpretation

In order to measure brand loyalty of consumer in term of price, I had used the

above three questions. 36.70% are highly loyal towards Baroda dairy`s milk

product, which indicates if Baroda dairy increase the price then also the consumers

will buy the milk products.

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Chart-7

7) Baroda dairy‟s milk & milk products as compared to other dairy`s milk products.

a) Best --------------16.30%

b) Good ------------82.60%

c) Not good -------01.10%

Interpretation

The above the chart shows that Baroda dairy`s milk products as compare to other

dairy`s milk products most of people says good, 16.30% says best and 1.10% people say

are not good.

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Chart-8

8) You are currently using Baroda dairy`s milk products. Suppose this brand is not

available at one shop will you-

a) Search for the same brand in other shop & buy-----------------------------------68.40%

b) Purchase from other dairy`s milk & milk products immediately --------------31.60%

Interpretation

The above question measures the brand loyalty towards Baroda dairy`s milk

products mostly consumers are loyal towards Baroda dairy`s milk products. Only in case

of emergency, consumers to go for another dairy`s milk products otherwise they preferred

Baroda dairy`s milk products. The reason for such Brand loyalty is only because of its

availability and family preference.

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Chart-9

9) How would you rate your level of overall satisfaction with brand?

a) Strongly dissatisfied---------------------------00.00%

b) Dissatisfied -------------------------------------03.10%

c) Moderated --------------------------------------20.40%

d) Satisfied ----------------------------------------67.30%

e) Strongly satisfied ------------------------------09.80%

Interpretation

Above chart shows that overall satisfaction level of consumers. Most of consumer

are satisfied of Baroda dairy`s milk products and 9.80% people are strongly satisfied,

20.40% people moderated & in fact there was no one who was dissatisfied.

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Chart-10

10) In total how long have you been a user or customer of Baroda dairy`s milk products?

a) < 1 year--------------------------12.30%

b) 1 to 3 years ---------------------23.50%

c) 3 to 5 years ---------------------22.40%

d) 5 to 10 years --------------------18.30%

e) 10 to more years ---------------24.50%

Interpretation

The above chart shows that the consumers have been using Baroda dairy‟s milk

products for how many years. The most of customers are 10 to more years use the

Baroda dairy`s milk products. This also shows the consumers loyalty toward Baroda

Dairy‟s Milk Products.

NOTE:-% found in all the question from 2 to 10 are out of 98 as two

respondent when asked 1 question do u consume Baroda Dairy Milk Product? They

said no.

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FINDINGS &

CONCLUTION

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FINDINGS

The major consumer of Baroda City consumes Baroda dairy`s milk products. It is

98% people used Baroda dairy`s milk products.

The reason is brought consumers of Baroda dairy`s milk products is Quality i.e.

56.12%

The most consumers Jeera Chas and Butter milk i.e. 33.67% and 34.70%

respectively.

The reasons for buying Baroda dairy`s milk products because of it is easily

available and family preference.

36.70% of respondents are highly loyal towards Baroda dairy`s milk products. As

they would even buy dairy`s milk product even if the price increase by Rs.5 per product.

In Baroda, The Baroda dairy `s milk products as compare to other dairy`s milk

products is Good.

The most of consumers are consuming Baroda dairy`s milk products from more

than 10 years.

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CONCLUSION

• Brand loyalty towards Baroda dairy`s milk products is very good.

• Brand is good because of long life of Baroda dairy as a major supplier of

milk products.

• Respondents are satisfied about the easily availability of Baroda Dairy‟s milk

products.

• Brand loyalty is very good because respondent use it since past many

years.

• Baroda dairy`s milk products users give preference to its Quality and

Freshness in buying products.

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RECOMMENDATION

&

LIMITATION

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Recommendation

• Price of milk product is somewhat high, so it should be reduced to attract

new consumers as well as to retain the present consumers.

Baroda Dairy should launch some more milk products to compete with big

competitors like Amul, Havemor, and Vadilal etc.

Limitation

• Survey limited to Baroda city with 100 samples only. • I had prepared questionnaires as the primary mean to collect data and

some time it was a hard task to handle with some types of consumers.

• Non co-operative nature of respondents.

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BIBLIOGRAPHY INTERNET

• www.google.com

• www.barodadairy.org

BOOKS

• Marketing Management, Philip Kotler,

• Research methodology by Naresh Malhotra

OTHER

• Past reports of Baroda Dairy

• Annual reports of Baroda Dairy

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ANNEXURE

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ANNEXURE

BRAND LOYALTY OF BARODA DAIRY`S MILK PRODUCTS (Gotri, Vasna & Old Padra) Questionnaires

1) Do you consume Baroda dairy`s milk products?

a) Yes b) No

2) If yes, what reason you like of Baroda dairy`s milk products?

a) Quality

b) Price

c) Brand image

d) Quantity / size

e) Other reason

3) Which milk products of Baroda dairy do you like most?

a) Chas

b) Flavors milk

c) Ghee & cow ghee

d) Curd

4) Which milk do you currently use?

a) Amul Gold

b) Amul Shakti

c) Amul Slim and Trim

d) Amul cow`s milk

5) Reasons for using Baroda Dairy‟s milk products?

a) Easily available

b) Proper fat contain

c) Family preference

d) Price

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6) Will you buy Baroda Dairy‟s milk product if price increase by

a) Rs. 1/- per product Yes No

b) Rs. 3/- per product Yes No

c) Rs. 5/- per product Yes No

7) Baroda dairy‟s milk & milk products as compared to other dairy`s milk products.

a) Best

b) Good

c) Not good 8) You are currently using Baroda dairy`s milk products. Suppose this brand is not

available at one shop will you-

a) Search for the same brand in other shop & buy

b) Purchase from other dairy`s milk & milk products immediately

9) How would you rate your level of overall satisfaction with brand?

a) Strongly dissatisfied

b) Dissatisfied

c) Moderated

d) Satisfied

e) Strongly satisfied

10) In total how long have you been a user or customer of Baroda dairy`s milk products?

a) < 1 year

b) 1 to 3 years

c) 3 to 5 years

d) 5 to 10 years

e) 10 to more years

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Personal Information Name:-_____________________________________

Age:-_______________________________________

Occupation:-_________________________________

Income p.m:-_________________________________

Family member:-______________________________

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