KOMUL

CHAPTER-I

INDUSTRY PROFILE

INTRODUCTION

The ‘Indian Dairy Industry’ has made rapid progress since independence. A large

number of modern milk planes and product factories have since been established. These

organize dairies have been successfully engaged in the routine commercial production of

pasteurized milk and milk products.

India is the world’s largest milk producer certified by the ‘International Dairy

Industry’. This is the reason for the recognition of India as a dairy giant by the United Nation’s

‘Food and Agriculture Organization (FAO)’.

India has become the world’s No. 1 milk producing country, with output in 1999-2000

(marketing year ending March 2000) forecasted at 78 million tones. The annual rate of growth

in milk production in India is between 5-6 per cent, against the worlds at 1 per cent. India’s

annual milk production has more than trebled in the last 30 years, rising from 21 million tones in

1968 to an anticipated 80 million tones in 2001. This rapid growth and modernization is largely

credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project,

assisted by many multi- lateral agencies, including the European Union, the World Bank, FAO

and WFP (World Food Program), In the Indian context of poverty and malnutrition, milk has a

special role to play for its many nutritional advantages as well as providing supplementary

income to some 70 million farmers in over 5,00,000 remote villages.

Milk is the raw material of the dairy industry, which cannot be created artificially and

stored for a long time. The term “Milk Market” refers to the fluid whole that is sold to the

individuals usually for direct consumption.

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The dairy industry has come up to the present stage because of well-planned, effective

and coordinated efforts of the National Dairy Development Board, co-operative of the

Government.

THE MARKET OF MILK INDUSTRY IN INDIA:

A Beginning in organized milk handling was made in India with the establishment of the

“Military Dairy Farms” (oldest in Allahabad, 1889), the salient features of the market of milk

industry so far have been:

Handling of milk in co-operative Milk Union (oldest: Allahabad, 1913) established all

over the country on a small scale in the early stages.

Long distance refrigerator rail-transport of milk form AMUL to Mumbai since 1945.

Pasteurization and bottling on a large scale for organized distribution was started as

Aarey (1950), Worley (1961), Calcutta (Haringhata, 1959), Delhi (1959), Chennai

(1963), etc.,

Establishment of milk plant under the five-year plan for dairy Development al over India.

These were taken up with the dual object of increasing the national level of milk

consumption and ensuring better return to the primary milk producer. Their main aim

was to produce more, better and cheaper milk.

Actual expenditure of the milk industry in India’s first three Five-year plans:

Table-22

Plan period Expenditure

I five year plan (1951-55) Rs.7.8 Crores

II Five year plan (1955-61) Rs. 12 Crores

III five year plan (1961-66) Rs.36.6 Crores

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GROWTH AND DEVELOPMENT OF THE INDUSTRY

Until the year 1940, there was very little published information of the method of

preparation and use if these products. The credit for the first publication on the subject goes to

Dr. W. B. Davis, the first director of Dairy Research.

Within a span of three or four decades since Dr. Davis’ book arrival, considerable

research had been conducted at the National Dairy Research Institute and other places on

indigenous dairy produces.

Since then on the Dairy Industry had begun to grow at a rapid rate. There has been a

tremendous efforts put in by the various organizations to assure good quality milk to the people

and the saying of “All that is white is pure milk” came to existence.

HISTORY AND EVOLUTION

On January 1st 1958 a pilot scheme under the ‘Department of Animal Husbandry’,

Government of Karnataka was started to cater to the Veterinary Hospitals and Milk Process

facilities at National Dairy Research Institute (NDRI). In 1962 the Bangalore Milk Supply

Scheme came into existence as an independent body.

In June 1974, an interacted project was launched in Karnataka to restructure and

recognize the Dairy Industry on the co-operative principle and to lay foundation for a new

direction in dairy development.

Work on the first ever, World Bank aided Dairy Development Project was initiated in

1975. Initially the project covered 8 southern Districts of Karnataka and Karnataka

Development Corporation was set up to implement the project.

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Sprawling over an area of 52 acres, the Dairy had an initial capacity to process 50,000

liters of Milk per day. This dairy was handed over to the ‘Karnataka Dairy Development

Corporation (KDDC)’ in December 1975 as a part of Rural Milk Scheme of Mysore, Hassan and

Kudige under ‘Operation Flood-II’ and then transferred to ‘Karnataka Milk Federation (KMF)’

in May 1984 as a successor of SDDC.

The multilevel, multiunit organization with total vertical integration of all dairy

development activities was set up with Dairy Co-operative Societies at the grass root level, Milk

unions at the middle level and a Dairy Development Corporation at the state level as an apex

body, was vested with the responsibility of implementing Rs.51 Crore’s project.

At the end of September 1984, the World Bank aided project ended and the Dairy

Development activities continued under “Operation Flood-II”. The activities were extended to

cover the entire state expect coastal Taluk’s of UttarKannada districts.

The process of dairy development was continued in the second phase from April, 1984.

KMF i.e., Karnataka Milk Federation came into existence in May 1984 as a successor to KDDC

i.e., Karnataka Dairy Development Corporation after the closure of “Operation flood-III” on

31st March 1996.

Bangalore Dairy, a joint venture of UNICEF, Government of India and Government of

Karnataka was dedicated to the people of Karnataka on 23rd January 1965 by the then Hon’ble

Prime Minister Late Shri Lal Bahadur Shastriji.

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CHAPTER-II

COMPANY PROFILE

II.a.BACKGROUND AND INCEPTION OF THE STUDY

ORGANIZATION STATUS:

DCS Organizations; the member producers and their Dairy Co-operative Societies

(DCS) are the vital constituents of the Union and their progress is the judging yardstick on the

efficiency of the Union’s operation. Hence the maximum importance has been given to the

development and the progress achieved in various activities is the fruit of these efforts.

Komul comprises of Kolar District 11 Taluks with a total of 2930 revenue villages.

Under the 1682 Dairy co-operative societies (DCS) ambit out if which 88 are inclusively Women

Dairy Co-operative Societies. There are 2, 88,751 Milk producing members out of which

69,749 are women members. There has been steady growth in membership.

KOMUL is certified for ISO 9001-2000 for quality management and Food Safety Systems.

As at end of March 2007 the network off 1682 dairy Co-operative Societies (DCS) have

been organized and spread over 175 taluks in all the 27 districts of Karnataka.

These societies have been organized into 13 Milk unions. Komul at a glace can be known

form the table below.

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BRIEF OVERVIEW OF “KOMUL”

(Table-23)

PROCUREMENT and INPUTS

Inhabited Villages 2930

Milk producer Members 288751

Dairy Co-operative Societies 1497

Milk Procurement Routes 105

Artificial Insemination Centers 1475

PROCESSING PLANTS CAPACITY

Kolar Dairy 2,00,000 Kg’s PD

Gowribhidanur Chilling center 1,00,000 Kg’s PD

Sadil 1,00,000 Kg’s PD

Chintamani 1,00,000 Kg’s PD

MARKETING and SALES

Number of distribution routes 32

Agents 292

Milk Parlors

Every day Sachet milk sales

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15.56 Lakhs

FINANCE

Total Share Capital 9.13 Crores

Annual Turnover 271.97 Crores

Source: Company Records.

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II.b.NATURE OF THE BUSINESS CARRIED

The organization’s core operation is in the milk industry. The company main

concentrates on producing milk products. The company is having at present 13 milk products

manufacturing organizations, among that KOMUL which is located in Kolar.

The Kolar milk union limited is a typical example of a successful family owned and

managed business house, which constitutes the bulk of number of business houses prevalent in

the country.

II.c.VISION, MISSION, OBJECTIVES and QUALITY POLICY

1) VISION

"Wish to grow into a model milk co-operative in the country"

2) MISSION

The mission of this co-operative milk producer's organization is to eliminate middlemen

and organize institutions owned and managed by the milk producers by themselves, by

employing professionals. Achieve economies of scale and to ensure maximum returns to the milk

producers, at the same time providing wholesome milk at a reasonable price to urban consumers.

Ultimately, the complex network of co-operative organization should build a strong bridge

between masses of rural producers and millions of urban consumers and achieve a socio-

economic revolution in the vicinity of the territory.

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3) OBJECTIVES:

The primary objective of dairy development program in Karnataka is to encourage the

growth of the dairy industry in the rural areas and to supply genuine milk to all the cities in

the state.

Providing assured remunerative market for all the milk sold by the farmer members.

Organizing milk co-operative societies at village level and providing extension service.

To ensure the provision of milk production, inputs, processing facilities and dissemination of

know-how.

To facilitate rural development by providing opportunity for self - employment.

4) QUALITY POLICY

The quality policy of Komul is to maintain a leading position and international standards

and also to build high level of customers over their products by providing high consumer

surplus.

Paramount importance has been given to quality and hygiene of milk and milk products

in the dairy. This is the reason why at every stage quality maintenance is done. It is due to

this reason that they were able to get the ISO-9001-2000 for quality management.

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II.d.PRODUCT PROFILE

1. Toned Milk: Karnataka’s most favourite milk,is NandiniToned milk. Pure milk

containing of 3.0percent fat and 8.5percent SNF. It is available in 500 ml and 1-liter

packs.

2. Full Cream Milk: This pure milk containing 6percent fat and 9percent SNF, A

rich, creamer and tastier milk, ideal for preparing home made sweets and savouries. It

is available in 500 ml and 1-liter packs.

3. Cheese: Cheese plant was started in the union in 1997 at a cost of Rs.3.5crores. At

present Cheddar Cheese is produced from Cow Milk and ripened to various lengths of

time will be blended and processed to obtain processed Cheese.

4. Peda: Peda is sweetened heat desiccated product obtained from milk. It is Rich in Fat,

Proteins, Lactose and minerals especially iron content. On an average 25 Kg Peda is

Produced and sold in units of 250gms box. Each box contains10 pedas weighting 25 gm

each.

5. HOMOGENIZED MILK: This Milk is consistent right through; it gives you more cups

of tea or coffee and is easily digestible. This is available in 500ml, 1 liter and 5 liter

packets.

6. CURDS: ‘Nandini’ curds are made out of pure Milk. It is thick and delicious, giving all

the goodness of homemade curds. It is available in 200gms and 500gms packets.

7. BUTTER: Rich, smooth and delicious, ‘Nandini’ butter is made out of fresh pasteurized

Milk cream. Any preparations made from this will be a delicious treat. It is available in

100gms (salted), 200gms and 500gms cartons both salted and unsalted.

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8. GHEE: ‘Nandini’ ghee is made from pure butter. It is fresh and pure will a delicious

flavor. Hygienically manufactured and packed in a special pack to retain the goodness of

pure ghee. Shelf life of 6 months at ambient temperature. This is available in 200ml,

500ml, 1-liter sachets, 5-liter tins and 15kg tins.

9. FLUID MILK: Currently two types of HTST pasteurized fluid Milk in processed and

packed. They are toned Milk with 3percent fat and 8.5percent SNF (Solids Non Fat) and

full cream Milk with 6percent fat and 9percent SNF. Both are packed in the units of ½

Later and 1 Later Fluid Milk is sold in bulk to other dairies both inside and outside the

state.

10. UHT MILK: It refers to ultra high temperature heat-treated Milk. The concept of UHT

milk is absolute i.e. bacteria free besides retaining the nutritional quality of milk. During

the process, milk is exposed to a temperature of 137ºc for 4 sec and immediately cooled a

room temperature packing it aseptically.

At present two types of UHT Milk are being produced one “Nandini Good Life” with

3.6percent fat and 8.5percent SNF and another one is “NANDINI smart” with 1.5percent fat and

9percent SNF. Nandini Smart being low fat products good for health conscious people. Both the

milks can be stored for at least 45 days at room temperature. It needs no boiling before drinking

on an average 25,000 of both the Milk is being sold per day.

The packing material used for UHT Milk packing consists of 6 layers consisting of

polythene, aluminum, foil and paper which prevents the enter of air, water, light and bacteria

there by keeping the Milk well 60 level quality i.e. “less than one defect out of ten lakhs

products”, has been achieved in UHT Milk due to good quality initial raw Milk. At least

70percent alcohol test negative raw Milk is being used for UHT processing to get good quality

end products. The composition of the milks is more nutritious and is as below.

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11. MASALA BUTTERMILK: Masala buttermilk is manufactured and sold in the summer

season, especially form moth of March to July, the only period during which it gets

demand. On an average the selling mounts to about 1000lts. Per day in 250ml sachets.

12. MASTI DHAI: Recently Kolar dairy was taken up the production of “Masti-dhai” in

polythene cups of units of 200gms and 400gms. The Milk used for “Masti-dhai”

preparation consists of 4,7percent of fat and 11percent of SNF added with lactic stator

culture. This product is being marketed by Gujarat Co-operative Milk Marketing

Federation (G.C.M.M.F).

13. SLIM MILK POWDER: Excess Milk obtained during flush season is converted into

SLIM Milk powder at other product dairies as Mandya, Dharwad and Dempo dairies

belonging to K.M.F and packed in bulk sachets of 25kgs. Annually about 1000 tons of

SMP is produced and sold to other dairies in Karnataka, Bihar Milk federation, Delhi

Mother Dairy and others the remaining is used for reconstitution during lean.

II.e.AREA OF OPERATION

Total geographical area of Kolar district is 8,200 sq. km with 2889 inhabited villages and

the total population averaging 26,00,000. Average annual rainfall in the area is about 750mm.

The area of operation of the milk union consists of all the eleven taluks of Kolar District.

Initially the union started its function with a total number of 460 dairy co-operative societies. At

the time of bifurcation, the average daily procurement of the union was 1,56,774 Kg. Today

with a total 1385 functional Milk Producers Co-operative Societies [MPCS], a total membership

of 3.00 lakhs and an average daily procurement of about 5,53,350 Kgs/day., it ranks second as

far as milk procurement is concerned and first as far as the functional MPCS are concerned.

Total cattle population in the milk-shed area is about 4,20,000, which includes 1,60,000,

crossbred cattle. At present the average milk procurement per society is 401 kg per day with a

minimum price paid per kg of milk is Rs.8.94.

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II.f.OWNERSHIP PATTERN

SL NO CATEGORY NO. OF

SHARES

percent OF

SHARE

HOLDINGS

1. Promoters holdings

Promoters

8,60,00,000 94.16

2. Non – promoters holdings

Institutional investors i.e. Banks,

Financial institutions.

35,65,000 3.90

3. Others Public 12,00,000 1.31

4. Any other

KMF Employees

5,62,700 0.63

Total 9,13,27,700 100

In Komul more than 90percent of the share capital is owned by the promoters, nearly 4percent

is owned by the financial institutions, 1.31percent is owned by General public and 0.63 percent is

owned by their own employees.

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II.g.COMPETITORS INFORMATION

Competitors to Komul in local and in Bangalore

AREA’S:

COMPETITORS IN LOCAL AREAS:

HERITAGE MILK

SWASTHIK

DODLA GOLD FIELD

GOOD MORNING

AROGYA

THIRUMALA

SHRUTHI

COMPITETORS IN BANGALORE AREAS:

NILGIRIES DAIRY

HERITAGE

DODLA DAIRY

LAKSHMI DAIRY

SHIVA SHAKTHI

KRISHNA DAIRY

SHRUTHI DAIRY

RAMANA DAIRY

KAMADHENU

SWATHI MILK

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II.h. INFRASTRUCTURAL FACILITIES

FACILITIES PROVIDED TO EMPLOYEES OF KOMUL:

Training is provided to all officers/employees in their particular fields, conducted at CTI,

KMF and NDDB Erode/Gujarat, etc., The main aim of giving training is to gain

knowledge and experience in their work, which is helpful to the employees and to the

organization.

Canteen facilities are provided at very cheap rate (meal is Rs.3 per head Rs. 3 for contract

laborers and Rs.10 for visitors).

Conveyance allowance is given to all employees.

Shift allowance/heat cold allowances are being paid to the employees who work in shifts

in respective places.

The following leave facilities are given:

30 days earned leave (EL) in a year.

15 days casual leave in a year.

12 second Saturday’s availment of encashment/compensatory off as the case may be.

Half pay leave for 20 days in a year.

INPUT SERVICES:

Profits so earned (if earned) BY the societies and KOMUL are used for the developmental

purpose of the DCS and villages have a whole. KOMUL provides a lot of other facilities to

its members through its input division. It should be noted that these facilities are only for its

members not for the non-members whereas milk in the society is collected from both

members and non- members. The various inputs facilities provided by the KOLAR DAIRY

are as follows:-

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1.TECHNICAL INPUT SERVICES: - KOMUL is providing various Technical input and

Extension Services to the producers members and their cattle through ‘Eleven Camp Office’ one

in each taluks i.e., Kolar, Chintamani, Gowribidnur, Malur, Mulbagal, Chikkabalapura,

Shitalgatta, Srinivasapura, Bangarpet, Bagepalli. For these camps all facilities are carried

forward. Each camp office has camp officer who under him has a veterinary doctor, agriculture

doctor and extenuation officer. In order to get treatment form the veterinary doctor, the members

have to get a coupon of Re.1 only from the society whereas the cost of treatment is Rs.34.

2.EMERGENCY SERVICES:- This is a special service provided to the members to help

overcome emergency situations. There will be a 24 hours veterinary clinic on wheels i.e., mobile

clinic working in different routes who cater to the needs of the members round the clock. To

avail this service the member has to get a coupon of Rs.30 only whereas the actual cost for such

a treatment is Rs.150.

3. ARTIFICIAL INSEMINATION:- artificial insemination (AI) has been the main function

tool in dictating this upsurge of development off Dairying in KOMUL. Farmers have taken up

cross breeding from way back in 1962. The union has surveyed and appropriately located AI

centers based on cattle population. It has been planned to popularize the idea of cluster AI

centers and replaced thee single AI center in a phased manner. The use of ‘Progeny’ tested

semen from “Nandini Sperm Station” is also giving a further boost to the breeding activities

To reduce infertility in the cattle, a frontal attack has been continuously attempted by conducting

infertility camps under the export guidance and by the use of infertility connected drugs.

During 1999-2000, a vertical silo of 10,000 liters capacity for storing liquid nitrogen has been

installed under TMDD program in collaboration with National Dairy Development Board and

KMF. This has helped in protecting the quality of semen straws. Thereby considerably

increasing the probability of conception during AI of cattle.

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CATTLE FEED AND FODDER DEVELOPMENT: The union is implementing several

programs to increase milk production and also to reduce the cost of milk production and also

to reduce the cost of milk production in the milk shed area. Balance cattle feed is being

procured from the cattle feed plants of KMF for distribution among member producers.

Fodder seeds are distribution to member producers at 50percent subsidy. In addition to

these technical advices on growing of fodder crops are being extended to them. Chaff cutter

has been supplied to milk producers at 60percent subsidy to ensure effective utilization of

fodder.

A seed processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs. The

union is catering to the seed production needs of many unions in Karnataka and also of

Southern India.

Lastly it needs to be noted that payment to the members is made according to the fat and

SNF (Solid Non Fat). An amount of 3 paisa/liter of the producers is retained by DCS for the

vaccination of Foot and Mouth and Thaileriasis this retained money is remitted in bank for

avoiding out break of any disease.

II.i. ACHIEVEMENTS AND AWARDS

The World Bank for its achievements has lauded the third and final phase of “Operation

Flood”, which culminated in April 1996. “Operation Flood” has helped knit ten million farmer

members, spread over 70,000 villages into a catalyst of “White Revolution” in the country.

In the year 1993 the prime minister P.V. NARASIMHA RAO has decided the KOMUL

as model milk union and he has given 60 lakhs subsidy to the organization.

16

Butter Section Butter Cheese

But But Ghee Section ter Section ter SectionGhee PACKING

Reception CanWasher

Processing Section

Chilled Water Inlet

Pasturieser Cooling System

Chilled Water Inlet 20C

Milk Inlet Milk Outlet 40C 40C

CHILLER

Milk Storage Tanks

Cream Separation

Cream Tank

H M S T

Ghee

II.j. WORK FLOW MODEL

PRODUCTION PROCESS CHAT

Raw Milk

32 0 C

Milk Inlet 40C

17

CHILLER

II..k. FUTURE PLANS

The main aim of the organization is to meet the requirements of the day to day rapid

changes in the society, environment and advent of the ‘high-tech’ technology in the production

segment, the organization after identification has deployed the latest technologies and skills

for exploration and finished milk products.With vast experience in the Milk industries the

organization is capable of meeting the buyer’s requirements of different quantity and quality of

the milk products the supply/Delivery within the stipulated time.

The organization is also in a position to arrange many milk parlors in different places so

that the products are delivered to the consumers easily and effectively.

"You name or ask the product AND we shall supply the same."

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CHAPTER-III

McKENSEY’S 7 S MODEL OF KOMUL

McKinsey's 7-S

McKinsey and Co's 7S framework provides a useful framework for analyzing the

strategic attributes of an organization. The McKinsey Consulting Firm identified strategy as only

one of seven elements exhibited by the best managed companies.

These seven elements are distinguished is now called hard S’s and soft S’s. The hard

elements are feasible and easy to identify. They can be found in strategy statements, corporate

plans, organizational charts and other documents.

The four soft S’s however, are feasible. They are difficult to describe since capabilities,

values and elements of corporate culture are continuously developing and changing. They are

highly determined by the people at work in the organization. Therefore, it is much more difficult

to; plan or to influence the characteristics of the soft elements.

Although the often factor’s is below the surface, they can have a great impact of the hard

structures, strategies and systems of the organization. By the words above implies that that the

company should apply the McKinsey’s 7s model for its better performance.

Companies, in which these soft elements are present, are usually more successful at the

implementation of strategy.

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The 7-Ss are:

Structure

Shared values

Systems

Style

Staff

Skills , and

Strategy .

There is no particular order to the 7Ss.

Each of the 7Ss is elaborated on below:

a) STRUCTURE

The policies and procedures which govern the way in which the organization acts within

itself and within its environment. The organization (e.g. hierarchical or flat) as well as the group

and ownership structure is included here. Also note Porter's categorization of group structures:

Efficient allocators of Capital; Allocation of Resources, etc.

20

http://www.chrisfoxinc.com/7SAndPascale.htm#Strategy%23Strategy

http://www.chrisfoxinc.com/7SAndPascale.htm#Skills%23Skills

http://www.chrisfoxinc.com/7SAndPascale.htm#Staff%23Staff

http://www.chrisfoxinc.com/7SAndPascale.htm#Style%23Style

http://www.chrisfoxinc.com/7SAndPascale.htm#Systems%23Systems

http://www.chrisfoxinc.com/7SAndPascale.htm#Shared%20Values%23Shared%20Values

ORGANISATIONAL STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

MANAGER DEPUTY MANAGER

DEPUTY MANAGER SYSTEMS

EXTERNAL MANAGER(EO-1)/SR SUPERINTENDENT

EO-11/ACCOUNTS/ADMINSTRATION SUPERINTENDENT

EO-111/AA-1/SR.STENO

AA-11/SSR.TYPIST/STENO

AA-111/MOBILE VETERNARY ASST

PEONS/HELPERS

21

A) PRODUCTION DEPARTMENT

The production department of the Kolar dairy performs the function of developing

procedures to transform a set of input elements like raw material like milk, money, machine into

specified output like curds, butter, ghee, Peda, masala butter milk etc. in assigned quality and

best in order to achieve the organizational goals successfully. Production department is the most

important and the largest department in the organization.

Komul has a well-organized and totally computerized system of production. The scope of the

department is to plan, execute and control all production activities with the available resources

inputs and equipment in co-ordination with the other department.

The Production manager heads the production department. The production manager monitors the

activities of this department with the support of Deputy Manager, Asst. manager and technical

officers.

The production department works 24 hours every day. As much as 100 thousand Kegs

packets of milk made every day and all are sold every day. The milk from the dairy is

transported through trucks to the dealers. Out of 4.56 lakh liters of milk procured 100008 liters

are sold as liquid milk (‘Nandini’ Milk) and the rest is converted into milk products like Butter,

curds, Ghee, Peda etc.,

B) QUALITY CONTROL DEPARTMENT

The quality control department in the plant performs the function of using the best raw

materials and other inputs, measuring and checking for maintaining then assured standards. As it

known that Komul represents quality, purity and freshness. The quality policy of Komul is to

maintain a leading position and international standards and also to build high level of customers

over their products by providing high consumer surplus.

Paramount importance has been given to quality and hygiene of milk and milk products

in the dairy. This is the reason why at every stage quality maintenance is done. It is due to this

reason that they were able to get the ISO-9001-2000 for quality management.

22

All the processors are controlled and monitored by computers. Hence, the probable

occurrence of manual error is completely eliminated. Milk is processed in a closed system with

out exposure to the atmosphere and human hands. It is due to this that milk is protected from the

contamination by external sources of bacteria and other contaminants. This efficiency of milk

processing operation is of the highest order and hence the quality of milk and milk products

processed in the plant is excellent.

C) MARKETING DEPARTMENT

KOMUL has a well – established marketing department, under the control of the

marketing manager. He is responsible for marketing and sales of milk and milk products. He is

responsible for selling to the target markets, framing the plans and policies to achieve the

marketing goals and he is also responsible for forecasting the demands for their products in the

market.

Now a day’s consumer the focal point of all business decisions. So it is very important to

focus on the consumer satisfaction to create more demand for milk and milk products for which

selection of a proper channel of distribution becomes very important for the long survival of the

union.

Presently KOMUL is vested with the responsibility of marketing milk and milk products.

In KOMUL, priority is given to meet the UHT milk demand and only the excess milk procured is

converted into milk products. KOMUL sells its milk and milk products under the corporate

brand name of “ NANDINI” within and outside the state. Most importantly KOMUL is a co-

operative institution.

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FUNCTIONS OF MARKETING DEPARTMENT:

Selection of agents and calling tenders for setting up of parlours.

Dispatch of the indented supplies to the channel members.

Distribution of milk and milk products to local areas and district areas in its jurisdiction.

Consumer compliant redressal with in 12 hours of reporting a compliant

Improving the “ consumer satisfaction index”

Meeting the needs of the channel members.

DISTRIBUTION SYSTEM OF KOMUL FOR MARKETING ITS PRODUCTS:

Milk and milk products have been distributed twice a day that is in the morning and evening.

The distribution routes are allotted on the basis of the quantity of milk or the number of crates in

a geographically convenient pattern. At present there are 292 milk selling agents, 7 parlors

operating for the distribution of milk and milk products to the public.

Agents are appointed on the basis of organizational norms. The agents are placed at

minimum distance of place from each other.

The agents collect milk twice in a day from the dairy. After the sales is done agents remit the

money to the dairy after deducting their commission, money can be remitted to dairy in 3 forms:

1. Cash payment

2. Cheque payment

3. Credit basis (institutions).

ACTION PLANS OF MARKETING DEPARTMENT FOR THE YEAR 04-05.

It has 292 selling agents.

Introducing insulated distribution transportation vehicle.

To supply in time quality milk to customers in each and every corner of the city, smaller

capacity distribution transport vehicles will be introduced.

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SALES PROMOTIONAL ACTIVITY:

Distribution of glow sign boards (both small and big)

Distribution of V shape boards

Caps/T-shirts/bags to be distributed to the agents.

Wall paintings

Painting of insulated distribution transport vehicles etc

TRAINING

The marketing staffs are trained both on field as well as in the office. For training to the

marketing officers cross functions team workshops are to be conducted.

CONSUMER EDUCATIONAL PROGRAMS

Plant visit for school children and others.

Door to door marketing. Etc

MARKETING STRATEGY OF KOMUL

Make the “ Nandini” milk and milk products available all through the day to prevent the

competitor’s penetration.

Make the “ Nandini” milk and milk products available in time and in enough quantity at

consumers convenient places

Improve the quality of service provided to channel members and also to motivate them for

better sales performance.

Bring out consumers awareness on positive aspects of the organization

Prompt consumer’s complaint redressal.

As part of their growth oriented strategy, they are strengthening their infrastructure facilities

by embarking on new ambitious projects such as commissioning of new equipment,

Strengthening existing facilities at all centers of the union.

D) FINANCE DEPARTMENT

25

Finance department is very important in an organization. It is not just confined to raising

funds, but extends beyond it to control the over utilization of funds and helps to monitor the

utilization of funds raised.

This function influences the operation of other essential functioning areas of the firm

such as production, marketing and personal.

FUNCTIONS OF FINANCE DEPARTMENT:

Preparation of finance reports

Preparation of annual budgets

Budgetary control

Scrutinizing of purchase bills and proposals

Passing of all payment bills

Maintenance of sales ledger

Maintenance of all subsidiary books under the co-operative societies acts like cashbook,

debtors, and salary register.

Preparing of cost sheet

Direction of internal auditing.

There is an important section in finance department, which is the computer section.

Computer section is newly modernized and has expert computer operators, which does the

following functions:

Maintaining records of sundry debtors of milk and milk products

Preparation of dairy co-operative milk purchase bills

Preparation of pay bills

Daily generation of sales Cheque remittance etc.,

E) PURCHASE DEPARTMENT

26

Every industrial setup requires a separate department to cater to the needs of the various

departments. KOMUL has a centralized purchase department headed by a well experienced and

qualified purchase officer purchase manager who in turn is assisted by assistant

manager.Material purchase starts with the needful department forwarding an Indent which is a

kind of material requisition letter to the purchase department. On the receivable of such an

indent, the purchase department calls the suppliers to give quotations (purchases department

maintains a list of names of suppliers for suppliers for various materials). The suppliers have to

submit their quotation including all the details like the percentage of tax, excise, discount, etc.,

and the general terms and conditions.

After receiving the quotations from various suppliers, and ‘comparative Statement’ is

made containing the various quotations. The opinion of the user department is taken. The

quotation, which is feasible, is considered and that supplier is given the order. If there a need for

changes in the price so determined by the purchase department, the quotations are placed before

the committee consisting of heads of the various departments. Negotiations are made with the

supplier over the price if the price is found to be abnormal.

FUNCTIONS OF THE PURCHASE DEPARTMENT:

Calling for quotations/Performa invoice etc., as the case may be. Processing the proposal in

the connected file and submitting to the managing director with recommendation seeking

approval from the accounts or finance section etc.,

After approval, purchase order will be placed on the lowest quoted responsive firms for the

supply of concerned items on the quotations.

F) STORES DEPARTMENT:

27

Storing of required materials is an important function. The Kolar dairy has 4 stores each of

them maintaining certain materials only. The 2 different stores are as follows

Store I : Maintenance of machines and spares.

Stores II : Maintenance of packing materials, pouch films, carton boxes,

Caustic soda, gunny bags, medicines used for employees, etc.,

This stores is also known as consumable stores.

Stores III : Maintenance of transport or vehicles related materials.

Stores IV : Maintenance of stationery.

Stores V : Maintenance of Oil and lubricants.

Stores VI: Procurement and Input stores.

Based on the user’s application the materials are purchased. Here an important document

called the “Materials Receipt Report” (MRR) comes into the picture.

The stores raise the MRR after receiving the materials. These materials are then checked and

certified by the respective department (for stationery quality control certifies and for vehicles

spares transport section department certifies).

The materials are accepted if they are of the required. The stores department prepares four

copies of MRR.

The stores retain one copy, two are sent to the purchase department and one is sent to the

accounts or finance department to make payments to the suppliers. One the MRR is raised and

the materials are accepted, the next step of the stores department is to prepare the “Kardex”.

The kardex contains the date, purchase order number, supplier details, quantity received,

issued and the balance. If the purchase is done for a regular item the kardex will already be

present, but if it is a new then a new kardex is prepared.

An efficient Stores Manager/Officer heads the stores department and has an Assistant who

assists him along with helpers.

FUNCTIONS OF THE STORES DEPARTMENT:

28

Make proper arrangements to retain the goods in a perfect condition till they are needed by

any of the users section.

Maintain a up to date stock ledger.

Bring to the notice of the lower amount of stock of any kind in the stores.

Maintain the kardex with the regular entries so as to make the accounting easy.

G) ADMINISTRATION DEPARTMENT

A manager called administrative manager heads administration department. He comes under

the general manager. The administrative department of KOMUL holds all the official work. The

administrative manage reports tot he general manage, then the general manager to the managing

director (who is the chief of administrative department).

FUNCTIONS OF THE ADMINISTRATIVE DEPARTMENT:

The main functions of the administrative department are concerned with taking care of

matters like:

Employee’s attendance.

Sanction of increments.

Promotions.

Transfer.

Disciplinary action against misbehavior of employees.

Termination and retirement.

To follow the policies and principles lain down by the top management.

Recruitment and performance appraisal etc.,

b) SHARED VALUES

29

Shared values means that the employees share the same guiding values. Values are things

that you would strive for even if they were demonstrably not profitable. (Example: The

Christians being fed to the Lions.)

Values act as an organization’s conscience, providing guidance in times of crisis.

Example: 'The "famous" Johnson and Johnson Tylenol case is an example where a credo helped

provide guidelines for practical decision making. When tainted Tylenol was discovered, JandJ's

leaders could quickly make a decision to immediately, publicly, remove all Tylenol from the

nation's shelves, because they were following the organization’s credo - which said that JandJ's

first responsibility was to provide quality products to doctors, nurses and patients. This dramatic

action helped unsure a reinstatement of both public trust and employee pride in the integrity of

the company, and led to higher long term sales.

Identifying corporate values is also the first essential step in defining the organization’s role

in the larger community in which it functions.

Ethical practices with an emphasis on transparency

Equal opportunity

Credibility for better dealing

Care and compassion for others

Team work

c) STRATEGY

The integrated vision and direction of the company, as well as the manner in which it

derives, articulates, communicates and implements that vision and direction.

Kolar Milk Union Limited will Endeavour to become learning and knowledge based

organization. The company will establish itself as a preferred supplier of metallic by delighting

the customers with its products and services.

The company will strive to become one of the most cost competitive plants in the

industry and generate wealth to serve its shareholders, the surrounding community and the

30

nation. Consistent with the purpose of improving the quality of life in India through leadership in

sectors of national economic significance, Kolar Milk Union Limited will strive to lead the Milk

sector for the Milk industry. This shall be achieved through high productivity, continuous

improvement and technological break-through.

Kolar Milk Union Limited shall Endeavour to return to society what it earns by creating a

difference in the lives of people in its immediate surroundings.

d) SYSTEMS

The decision making systems within the organization can range from management intuition,

to structured computer systems to complex expert systems and artificial intelligence. It includes

Computer Systems,

Operational Systems,

HR Systems, etc.

COMPANY SYSTEM

The company is following systems such as quality control system, cost control

system, budget control system, and production system, planning and controlling system; goods

receipt system, material issue, pay roll system, and attendance information system, preparation of

monthly journal ledger and trial balance, link schedule preparation personnel information

system.

e) STYLE

Style refers to the employees shared and common way of thinking and behaving - unwritten

norms of behavior and thought:

Leadership Style

Organizational Culture

Here style implies the leadership approach of top management and the company’s

employee’s way of thinking and behaving. The style is the tangible evidence of what

31

management considers important, the way it collectively spends time and attendance and uses

symbolic behavior.

COMPANY STYLE

The company is following participative style workers in management (usually the

management will discuss with the union or group leader and enter into memorandum of

settlement under sec 12(3) of industrial dispute act, which comprises terms and condition, labor

compliments i.e. number of operation required to work per day (standard strength) and work load

category wise).

f) SKILLS

A skill refers to the fact that employees have the skills needed to carry out the company's

strategy. Training and Development - ensuring people know how to do their jobs and stay up to

date with the latest techniques.

Kolar Milk Union Limited is committed to upgrade the skills and knowledge of its

workforce for developing all employees into knowledge workers. In order to achieve this, The

company will strives to

a. Provide both ‘on the job’ and ‘off the job’ training to its employees

b. Prepare and implement a training plan based on identified training needs to

develop employees as better human beings

g) STAFF

Staff means that the company has hired able people, trained them well and assigned them

to the right jobs. Selection, training, reward and recognition, retention, motivation and

assignment to appropriate work are all key issues. At present the KOMUL is having 710

employees in the organization.

32

CHAPTER-IV

SWOT ANALYSIS OF KOMUL

SWOT analysis helps to know the strengths, weakness, opportunities and threats of the

KOMUL.

STRENGTHS OF KOMUL:

Quick availability of raw material.

Popular brand known from years.

Milk products are available at competitive prices.

Ability to maintain uniform quality.

Timely delivery.

New technology implemented for production of milk.

KOMUL has very good infrastructure.

KOMUL attends to the complaints of consumers immediately.

KOMUL pays the highest price for the milk collected from farmers in India and

loyalty among customers for the brand.

The use of clarification and bactofugation in raw milk processing has improved the

quality of the milk products.

WEAKNESS OF KOMUL:

Lack of freezer and storage facilities.

Lack of flexibility in system.

Rivalry among sister unions.

Government influence.

Lack of personalize service to channel members.

High overhead chargers.

Damaged products are not accepted by the wholesellers results in wastage.

33

OPPORTUNITIES OF KOMUL:

The union is facing challenges from the new private entrants, who are mainly

thriving on unfair trade practice.

They procure milk at least cost, with out bothering about the welfare of the

producers and with out extending any technical inputs for improving milk

production.

They market milk by resorting to unhealthy and unethical practice deceiving the

unsuspecting consumers.

The union wants to counter this in a positive manner by trying to improve its

efficiency of operation and market promotion.

It wants to become well trenched in the market as " Market Leader ".

The computer monitors the utilization of utilities such as water, electricity, steam etc

hence, it is possible to adopt efficient cost control measures to attain cost

competitiveness.

THREATS FOR KOMUL:

Competition from private dairy companies.

Lack of awareness about the various products of KOMUL among the people.

Low price strategy by the unorganized sectors.

Advertising revenue moving to commercial broadcasting and new media.

Lack of trainers- Unbalanced environmental taxes.

Potential shortcomings of adequate protection of content.

34

CHAPTER-V

ANALYSIS OF FINANCIAL STATEMENT

There is no change in the share capital of the company from 2008 to 2009. But the reserves

and surplus were decreased from the year 2008 to 2009 because the company used these funds to

buy the fixed assets.

The sundry debtors were increased from Rs. 1825.24 crores to Rs. 2268.17 crores this

shows they are having more credit sales than last year. And the profit was increased from Rs.

17.22 crores to Rs.21.82 crores in the year 2009. This shows the company made profit of Rs.4.6

crores more than last year. The company reduced the losses and they are coming out from the

continues losses due to heavy competition in the market and lack of proper planning and

improper management. This shows there is a good improvement in the financial position of the

KOMUL .

35

CHAPTER-VI

LEARNING EXPERIENCE

Learning is synonymous to experience. This is because every human being learns hence

only out of experience and experience is the way of life. In life a person enhances his / her

knowledge only when exposed to real world situations, and by being exposed to the real

conditions in a systematic manner. He / she understand how to live and face various unforeseen

situations.

In this in-plant training I have learnt a lot. Interacting with an organization that has

existed since long was an experience of a life time. The employees of KOMUL had been of

tremendous support to me in doing my project work. They guided me in every step and gave all

the necessary information for doing the organization study. This has made me learn that people

in organization are accommodative in HR. Without their support it would have been highly

difficult.

The working of the dairy is well planned. Especially the production department, Quality

control and the packing section. Every human being consumes milk but not everybody knows

how it reaches him or her pure and fresh. Before interacting with dairy I had thought of the

complication and quality standards to be maintained for getting the packed milk.

36

CHAPTER-VII

GENERAL INTRODUCTION

Perception is the process by which individuals select, organize and interpret stimuli into

meaningful and coherent picture of the world. Perception has strategy implications for

marketers, because consumers make decisions based on what they perceive, rather than the

basis of objective reality. The lowest level at which an individual can perceive a specific

stimulus is that person’s absolute threshold.

Consumer’s selections of stimuli from the environment are based on the interaction of their

expectations and motives with the stimulus itself. The principle of the selective perception

includes the following concepts; selective exposure, selective attention, perceptual defense and

perceptual blocking.

Consumers organize their perceptions interest unified wholes according to the principles of

Gestalt psychology. The interpretation of stimuli is highly subjective and it is based on what the

consumer expects to see in light of previous experience, on the number of plausible explanations

he or she can envision, on motives and interest at time of perception, and on the clarity of the

stimuli’s itself.

Just as individuals have perceived images of themselves, they also have perceived images of the

products and brands. The perceived image of a product or service is probably more important to

its ultimate success than its actual physical characteristics products and services that are

perceived favorably have many chances of being purchased those products or services with

unfavorably or natural images.

Consumer strategies for reducing perceived risk include increased information search, brand

loyalty, buying a well known brand, buying from a reputable retailer, buying the most expensive

brand and seeking reassurance in the form of money- back, guarantees, warranties and free

37

purchase trial. The concept of perceived risk has products by incorporating risk reduction

strategies in their new product promotional campaigns.

Consumer goods

Consumer goods are those goods, which are meant for direct consumption by ultimate consumers

and house holds.

For example car, television, radio, furniture, etc. There is a direct demand for consumer goods.

The demand for consumer goods is elastic.

Consumer goods are classified into three types:

a) Convenience goods

b) Shopping goods

c) Specialty goods

a) Convenience goods

Goods that the customer usually purchases frequently, immediately and with the minimum

efforts are known as convenience goods. These goods are daily necessaries for human beings, for

instance coffee, tea, milk, etc.

b) Shopping goods

Shopping goods are consumer’s products; consumers make comparison in the selection of

products as to quality price, style, suitable etc.

Example: cloth, furniture, television etc.

38

c) Specialty goods

Specialty goods are those goods “which have some particular attraction for the consumer, other

than price, that induces him to put in special effort to visit the store in which they are sold and

make a purchase without shopping”. These are also known as luxurious goods.

Example: scooters, cars, bikes, watches, clothes etc.

SIGNIFICANCE OF THE STUDY

The main purpose of the study is to find the consumer opinion towards Nandini products and to

find weather the consumer’s perception is matching with their expectation towards Nandini

products. The concept consumer has occupied a pivotal role in the present as well as the future

business scenario. Only those business firms’ survives, who continuously satisfies the needs of

the consumers tastes, preferences, healthy and quality products to the consumers of the society.

Consumer is the king of the market, therefore his/her expectations such as tastes, quality, prices,

etc., should be meticulously satisfied by the marketers of the products/services.

The buying behaviour and post purchase behaviour of the consumer can be expected only when

the good products rendered by the business firms. The perceptions of the customers are

diversified and they are more concerned about their buyings, in any field of the business

activities, therefore the business organizations should be tailored to cater the needs of the

consumers. The present business is consisting of competitive business, where the existing firms

as well as the new competitors should compete with the existing business firms. if any of the

business firms fails to provide and fails to satisfy the expectation for the products or the services,

which the consumer buy, hence the varied needs of the consumers is crucial for the business

firms for its survival.

39

STATEMENT OF THE PROBLEM

To Study and analyse on the Perception and Expectations of Consumers with regard to Nandini

Milk and its Products in KOMUL.

In this era of competitive business, the business firms are to be specialized in the various

offerings in the form of products/services, which are to be successfully sold in the market,

therefore the firms need to be designed there offerings with the consumer perception and

expectation of the society which can best satisfy the current and potential consumers, hence the

study focused on findings of its bottlenecks and to analyze weather the business firm is satisfying

the consumer needs are not? Are the consumers perception towards the products provided by

KMF are favorable? and How best the consumer perceptions favorably brought to the attention

of the business firm? Therefore the research is being conducted to answer the above

questions/problems and suggest the best possible means of route to succeed.

OBJECTIVES OF THE STUDY

To study on the komul nandini products and its marketing strategies at kolar.

To ascertain the consumer expectation regarding the milk and its products.

To analyse the prospect of opening Nandini outlets in and around the Kolar town

premises.

To seek suggestions and opinions from consumers regarding the improvements to be

made for the better sale of Nandini products.

40

OPERATIONAL DEFINITION

a) Marketing

The American Marketing Association defines marketing as “the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and services to

create exchanges that satisfy individuals and organizational objectives”.

Paul Mazur defined marketing as “the creation and delivery of a standard of living to society”

b) Perception

Perception is described as a person’s view of reality. Every person perceives the world and

approaches the life problem differently. Perception is one of the most important psychological

factors affecting the human buying behavior, because perception is the way an individual

experiences the situation.

Perception is the process through which the information from outside environment is selected,

received, organized and interpreted to make it meaningful.

The Perception Process

FIGURE - I

41

SCOPE OF THE STUDY

The study is confined for Kolar district that is places like Bangarpet, KGF, Kolar and

Malur only. The study is based on primary and secondary data collected from the responses of

consumers, dealers, text books and employees of KOMUL.

The study focuses attention mainly on the consumer perception and expectations with regards to

the Nandini milk and its products produced by Kolar Milk Union Limited.

METHODOLOGY

Descriptive research is the methodology used to conduct the research on the current

business problem.

Descriptive research, also known as statistical research, describes data and characteristics

about the population or phenomenon being studied. Descriptive research answers the

questions who, what, where, when and how...

In short descriptive research deals with everything that can be counted and studied. But

there are always restrictions to that. Your research must have an impact to the lives of the

people around you.

SOURCES OF DATA

Data collection is a key marketing research. The design of the data collection is the back

bone of the research design. Normally the sources of the data are classified in two types

a) Primary data

b) Secondary data

42

a) Primary Data

The primary data are the first hand data collected from the filed and therefore it consists of

original information gathered for a specific purpose. It is relatively expensive, laborious and time

consuming, but it assures a greater accuracy and reliability.

Data was collected by preparing questionnaires, which was distributed among consumers to get

their opinion towards the Nandini products, in this study the more importance has been given to

primary data then secondary data because primary data is more reliable.

b) Secondary Data

The secondary data is collected from text books, annual reports of the company, company

prospectus, published books and project reports of other research who would have collected for

various other purposes, therefore it may not be totally reliable. It is less expensive and involves

less time and labour than the collection of primary data.

SAMPLE SIZE

Collection of the data was made from dealers of the KOMUL and from its consumers. The

sample size consists of 100 respondents residing in Kolar, Bangarpet, KGF and Malur.

A few people or a unit of population called as sample size was taken to obtain representative

sample of the whole universe. The chosen sample size was 100 respondents. The sampling units

consisted of people who consume Nandini products; those were the only eligible candidates for

interview.

A simple random technique was resorted to with personal administered questionnaire to each

individual as only to the people who regularly purchase Nandini products in position to give a

feed back based on their experience.

43

SAMPLING TECHNIQUE

Sampling technique used is Random Sampling where every one has an equal opportunity

of being selected as a sample unit.

LIMITATION OF THE STUDY

The study relates to komul of kolar, that is it cant give a generalized picture.

Baised information from respondents.

44

CHAPTER-VIII

DATA ANALYSIS AND INTERPRETATION

INTRODUCTION

The data was collected from 100 respondents who are consuming Nandini milk products. A set

of questionnaires were firstly issued to 10 respondents as a pilot study in order to know whether

the set objectives of the study are fulfilled, then later the verified questionnaires were issued to

100 respondents and thus analysis made is based on that aspect.

Analysis acts as the basis for suggestions, recommendations, and conclusion for the problem

worked out during the research study.

Classification and Tabulation of Data

Classification

Classification of raw data was done so as to reduce large volume to homogenous groups and so

as to arrive at meaningful relationship. This fact necessitates classification of data, which of

common characteristics are placed in one class and this way the entire data got divided into a

number of groups or classes. By this method several handed response are reduced to five to six

appropriate categories containing critical information needed for analysis.

The tabulation analysis and interpretation of data is done here completely on the basis of

fieldwork. The field consists of the answers got from the questionnaire.

45

Tabulation

When a mass of data has been assembled it becomes necessary to arrange the same in some kind

of concise logical order. This procedure is referred to as tabulation. Thus tabulation is the

process of summarizing raw data and displaying the same incompact form (That is in the form of

statistical tables) for further analysis, in a broader sense, tabulation is an orderly arrangement of

data in columns and rows.

ANALYSIS AND INTERPRETATION OF DATA

To study the consumer perception and expectations regarding ‘KOMUL’ products, questionnaire

was prepared and views obtained from the respondent’s data were summarized.

In order to extract meaningful information from the data collected the data analysis is carried out

the data analyzed is vital step in the research process. The data are first edited, coded and

tabulated for the purpose of association of difference between the various present in the research.

I visited the local areas of Kolar District to contact respondents which included consumers like

person doing business, education etc., so that I could gather the best possible and probable

information required to meet the objectives of my study.

46

TABLE –1

TABLE SHOWING THE LOCATION OF RESPONDENTS

PLACE NO. OF RESPONDENTS PERCENTAGE

BANGARPET 22 22

KGF 20 20

KOLAR 39 39

MALUR 19 19

TOTAL 100 100

Source: Primary data

GRAPH SHOWING THE LOCATION OF RESPONDENTS

GRAPH-1

BANGARPET KGF KOLAR MALUR0

10

20

30

40

RESPONDENTS FROM DIFFERENT LO-CATIONS

Source: Table 1

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and

its products. 22percent respondents are from Bangarpet, 20percent respondents are from FGF,

39percent are from Kolar and remaining 19percent respondents are from Malur.

Therefore majority of respondent’s are located in Kolar region.

47

TABLE – 2

TABLE SHOWING THE GENDER OF RESPONDENTS

GENDER NO. OF RESPONDENTS PERCENTAGE

MALE 56 56

FEMALE 44 44

TOTAL 100 100


GRAPH SHOWING THE GENDER GROUP OF THE RESPONDENTS

GRAPH-2

CLASSIFICATIONS OF GENDERS

MALEFEMALE

Source: Table 2


The above analysis shows that more percentage of respondents are male i.e., 56percent and the

remaining 46percent of respondents are females.

48

TABLE – 3

TABLE SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE GROUP NO. OF RESPONDENTS PERCENTAGE

BELOW 25 22 22

25 – 35 30 30

35 – 50 36 36

ABOVE 50 12 12

TOTAL 100 100


GRAPH SHOWING THE AGE GROUP OF THE RESPONDENTS

GRAPH-3

AGE GROUP OF RESPONDENTS

BELOW 2525 – 3535 – 50ABOVE 50

Source: Table 3



its products. 22percent respondents are in the age group of below 25 years, 30percent

respondents are in the age group of 25-35 years, 36percent are in the age group of 35-50 years

and remaining12percent in the age group of 50 and above.

Therefore majority of respondent’s age group is between 35-50 years.

49

TABLE – 4

TABLE SHOWING THE QUALIFICATION OF THE RESPONDENTS

QUALIFICATION NO. OF RESPONDENTS PERCENTAGE

METRIC OR BELOW 19 19

UNDER GRADUATE 32 32

GRADUATE 35 35

POST GRADUATE 14 14

TOTAL 100 100


GRAPH SHOWING THE QUALIFICATIONS OF THE RERESPONDENTS

GRAPH – 4

QUALIFICATION OF RESPONDENTS

METRIC OR BELOWUNDER GRADUATEGRADUATEPOST GRADUATE

Source: Table 4



its products, 19percent of the respondent’s qualification is Metric/below metric, 32percent

respondents are Under Graduates, 35percent respondents are Graduates and rest 14percent

respondents are Post Graduates.

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TABLE – 5

TABLE SHOWING THE FAMILY INCOME OF THE RESPONDENT (MONTHLY)

INCOME NO. OF RESPONDENTS PERCENTAGE

BELOW 5000 15 15

5000 – 10000 42 42

10000 – 20000 34 34

ABOVE 20000 9 9

TOTAL 100 100


GRAPH SHOWING THE MONTHLY INCOME OF THE RESPONDENTS

GRAPH– 5

BELOW 5000 5000 – 10000 10000 – 20000 ABOVE 2000005

1015202530354045

MONTHLY INCOME OF RESPONDENTS

Source: Table 5



its products, 15percent of respondents monthly income is below 5000, 42percent of respondents’

monthly income are between 5000-10000, 34percent of respondents monthly income are 10000-

20000 and remaining 9percent of respondents monthly income is above 20000.

51

TABLE – 6

TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION NO. OF RESPONDENTS PERCENTAGE

SELF EMPLOYED 20 20

EMPLOYED 31 31

HOUSE WIFE 23 23

STUDENT 26 26

TOTAL 100 100


GRAPH SHOWING THE OCCUPATION OF TH RESPONDENTS

GRAPH – 6

SELF EMPLOYED

EMPLOYED

HOUSE WIFE

STUDENT

0 5 10 15 20 25 30 35

OCCUPATIONS OF RESPONDENTS

Source: Table 6



its products, 20percent of respondents are self employed, 31percent of respondents are

employed, 23percent of respondents are house wife and rest 26percent of respondents are

students.

52

TABLE – 7

TABLE SHOWING THE PERIOD OF USAGE OF MILK PRODUCTS BY THE

RESPONDENTS

PERIOD OF USAGE NO. OF RESPONDENTS PERCENTAGE

PAST 6 MONTHS 12 12

PAST 2 YEARS 38 38

PAST 5 YEARS 29 29

PAST 10 YEARS 21 21

TOTAL 100 100


GRAPH SHOWING THE PERIOD OF USAGE OF MILK PRODUCTS BY THE

RESPONDENTS

GRAPH – 7

PERIOD OF USAGE OF RESPONDENTS

PAST 6 MONTHSPAST 2 YEARSPAST 5 YEARSPAST 10 YEARS

Source: Table 7


The above analysis shows that out of the total number of respondents who use Nandini Milk

products, 12percent of respondents were using Nandini milk products from past 6 months,

38percent of respondents were using milk products from past 2 years, 29percent percent of

respondents were using milk products from past 5 years and 21percent are using it from past 10

years.

53

TABLE – 8

TABLE SHOWING THE REASONS OF RESPONDENT FOR BUYING NANDINI

PRODUCTS

REASON NO. OF RESPONDENTS PERCENTAGE

IT HAS GOOD QUALITY 42 42

REASONABLE PRICE 12 12

IT HAS GOOD TASTE 18 18

EASILY AVAILABLE 16 16

IT CAN BE STORED 12 12

TOTAL 100 100


GRAPH SHOWING THE REASONS OF RESPONDENT FOR BUYING NANDINI

PRODUCTS

GRAPH –8

REASONS OF RESPONDENT FOR BUYING NANDINI PRODUCTS

IT HAS GOOD QUALITYREASONABLE PRICEIT HAS GOOD TASTEEASILY AVAILABLEIT CAN BE STORED

Source: Table 8

Analysis and Interpretation: The above analysis shows that out of the total number of

respondents who use Nandini Milk products, 42percent of the respondents use Nandini products

because of its good quality, 12percent of respondents use it because of its reasonable price,

18percent of them use it because of its good taste, 16percent of them use it because it is available

easily and rest 12percent use it because it can be stored.

54

TABLE – 9

TABLE SHOWING REACTION OF THE RESPONDENTS IF THE CHOICE OF THE

MILK IS NOT AVAILABLE IN THE NEAR SHOP

REACTION NO. OF RESPONDENTS PERCENTAGE

Buy another brand of milk 62 62

Go to another shop 38 38

Total 100 100


GRAPH SHOWING REACTION OF THE RESPONDNETS IF THE CHOICE OF THE

MILK IS NOT AVAILABLE IN THE NEAR SHOP

GRAPH– 9

REACTION OF RESPONDENTS IF NANDINI MILK IS NOT AVAILABLE IN NEAR SHOP

Buy another brand of milkGo to another shop

Source: Table 9



products, 62percent of the respondents buy another brand of milk and rest 38percent of

respondents go to another shop if the Nandini brand product is not available in near shop.

55

TABLE – 10

TABLE SHOWING THE RESPONDENT AWARENESS OF THE NANDINI

PRODUCTS

Product No. Of Respondents No. of Respondents

aware of

percentage

Full Cream Milk 100 59 59

Gulab Jamoon Mix 100 79 79

Flavored Milk 100 80 80

Ghee 100 100 100

Badam Powder 100 67 67

Ice Cream 100 12 12

Toned Milk 100 100 100

Butter Milk 100 100 100

Curds 100 100 100

Butter 100 100 100

Mysore Pak 100 79 79

Peda 100 68 68


56

GRAPH SHOWING THE RESPONDENT AWARENESS OF THE NANDINI

PRODUCTS

GRAPH– 10

0

20

40

60

80

100

120

No. ofRespondentsaware of

Source: Table 10



products, 100percent of respondents are aware of these products namely ghee, toned milk, butter

milk, curds and butter produced by KOMUL, 80percent of them are aware of flavored milk,

79percent of them are aware of gulab jamoon mix and mysore pak, 68percent of them are aware

of peda, 67percent of them are aware of badam powder, 59percent of them are aware of full

cream milk and only 12percent of respondents are aware of ice creams produced by KOMUL.

57

TABLE - 11

TABLE SHOWING THE NECESSARY OF ADVERTISEMENT FOR NANDINI

PRODUCTS

NEED FOR ADVERTISING NO. OF RESPONDENTS PERCENTAGE

YES 76 76

NO 24 24

TOTAL 100 100


GRAPH SHOWING THE NECESSARY OF ADVERTISEMENT FOR NANDINI

PRODUCTS

GRAPH -11

YES NO0

1020304050607080

RESPONDENTS SHOWING ADVERTISING IS ESSENTIAL

Source: Table 11



products, 76percent of respondents say there is a need of advertising for Nandini milk products

and only 24percent of respondents say advertising is not necessary for Nandini milk products.

58

TABLE – 12

TABLE SHOWING ADVERTISING MEDIA PREFERRED BY THE RESPONDENTS

MEDIA NO. OF RESPONDENTS PERCENTAGE

LOCAL MAGAZINES 8 10.53

PAMPHLETS 4 5.26

NEWS PAPER 17 22.37

TELEVISION 38 50

RADIO/FM 6 7.9

POSTERS 3 3.94

TOTAL 76 100


GRAPH SHOWING ADVERTISING MEDIA PREFERRED BY THE RESPONDENTS

GRAPH -12

MEDIA OF ADVERTISING

LOCAL MAGAZINES PAMPHLETSNEWS PAPER TELEVISIONRADIO/FM POSTERS

Source: Table 12


The above analysis shows that out of the total number of respondents, who use Nandini Milk

products, 8 respondents prefer local magazines for advertising Nandini milk products, 4

respondents prefer pamphlets, 17 respondents prefer news paper, 38 respondents prefer

television, 6 respondents prefer radio/fm and rest 3 respondents prefer posters for advertising

Nandini milk products.

59

TABLE – 13

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PRICE OF

NANDINI PRODUCTS

PRICE NO. OF RESPONDENTS PERCENTAGE

COSTLY 28 28

REASONABLE 49 49

CHEAP 23 23

TOTAL 100 100


GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PRICE OF

NANDINI PRODUCTS

GRAPH - 13

ATTITUDE TOWARDS THE PRICE OF NANDINI PRODUCTS

COSTLYREASONABLECHEAP

Source: Table 13



products, 28percent of the respondents do believe that the price of Nandini products are costly,

49percent of respondents say it is reasonable and rest 23percent feel it is cheaper.

60

TABLE – 14

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE QUALITY OF

NANDINI PRODUCTS

QUALITY NO. OF RESPONDENTS PERCENTAGE

GOOD 46 46

SATISFACTORY 38 38

POOR 16 16

TOTAL 100 100


GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE QUALITY OF

NANDINI PRODUCTS

GRAPH -14

GOOD

SATISFACTORY

POOR

0 5 10 15 20 25 30 35 40 45 50

46

38

16

ATTITUDE TOWARDS THE QUALITY OF NANDINI PRODUCTS

Source: Table 14



products, 46percent of the respondents feel it has good quality, 38percent of respondents say the

quality level is satisfactory and rest 16percent respondents feel it is of poor quality.

61

TABLE – 15

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PACKAGE OF

NANDINI PRODUCTS

PACKAGE NO. OF RESPONDENTS PERCENTAGE

GOOD 38 38

SATISFACTORY 47 47

POOR 15 15

TOTAL 100 100


GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PACKAGE

OF NANDINI PRODUCTS

GRAPH – 15

38

47

15

ATTITUDE TOWARDS THE PACKAGE OF NANDINI PRODUCTS

GOODSATISFACTORYPOOR

Source: Table 15

Analysis and Iterpretation


products, 38percent of the respondents attitude towards package are good were as 47percent of

respondents feel it is of satisfactory level and rest 15percent respondents feel it is poor.

62

TABLE – 16

TABLE SHOWING THE RATE GIVEN BY THE RESPONDENTS FOR KOMUL IN

RENDERING OF PRODUCT

RATE NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 16 16

GOOD 32 32

SATISFACTORY 35 35

POOR 17 17

TOTAL 100 100


GRAPH SHOWING THE RATE GIVEN BY THE RESPONDENTS FOR KOMUL IN

RENDERING OF PRODUCT

GRAPH - 16

EXCELLENT GOOD SATISFACTORY POOR0

10

20

30

40

RATE GIVEN BY THE RESPONDENTS FOR KOMUL IN RENDERING OF PRODUCT

Source: Table 16



products, 16percent of respondents rated it has a excellent, 32percent respondents say it is good,

35percent respondents feel it is at satisfactory level and 17percent respondents say it is poor.

63

TABLE – 17

TABLE SHOWING RESPONDENT AWARENESS OF NANDINI COMPETITORS

COMPETITORS NO. OF RESPONDENTS PERCENTAGE

YES 74 74

NO 26 26

TOTAL 100 100


GRAPH SHOWING RESPONDENT AWARENESS OF NANDINI COMPETITORS

GRAPH – 17

YES NO0

10

20

30

40

50

60

70

80

74

26

RESPONDENT AWARENESS OF NANDINI COM-PETITORS

Source: Table 17



products, 74percent of respondents are aware of its competitors and 26percent of respondents are

not aware its competitors.

64

TABLE – 18

TABLE SHOWING THE NEAREST COMPETITOR OF NANDINI PRODUCTS

PREFERRED BY RESPONDENTS

COMPETITORS NO. OF RESPONDENTS PERCENTAGE

HERITAGE 31 31

SWASTIK 5 5

TIRUMALA 11 11

AROGYA 42 42

KCA 9 9

SHRUTHI 2 2

TOTAL 100 100


GRAPH SHOWING THE NEAREST COMPETITOR OF NANDINI PRODUCTS

PREFERRED BY RESPONDENTS

GRAPH – 18

31

51142

9

2

NEAREST COMPETITOR OF NANDINI PRODUCTS HERITAGESWASTIKTIRUMALAAROGYAKCASHRUTHI

Source: Table 18



products, 31 respondents say Heritage is the nearest competitor for Nandini, 5 respondents say

Swastik, 11 respondents say Tirumala, 42 respondents say Arogya, 9 respondents say KCA and 2

respondent say Shruthi is the nearest competitor to Nandini.

65

TABLE – 19

TABLE SHOWING THE POSITION OF NANDINI PRODUCTS WHEN COMPARED

TO ITS COMPETITORS

STANDS FOR NO. OF RESPONDENTS PERCENTAGE

HYGIENIC and QUALITY 34 34

POPULAR BRAND 20 20

DIVERSIFIED PRODUCTS 35 35

GOOD PRICING 11 11

TOTAL 100 100


66

GRAPH SHOWING THE POSITION OF NANDINI PRODUCTS WHEN COMPARED

TO ITS COMPETITORS

GRAPH – 19

NO. OF RESPONDENTS

PERCENTAGE

HYGIENIC & QUALITY

POPULAR BRAND

DIVERSIFIED PRODUCTS

GOOD PRICINGTOTAL

0

10

20

30

40

50

60

70

80

90

100

HYGIENIC & QUALITY POPULAR BRAND DIVERSIFIED PRODUCTS

GOOD PRICING TOTAL

Source: Table 19



products, 34percent respondents say Nandini products are hygienic and quality when compared

to its competitors products, 20percent respondents say it is a popular brand, 35percent

respondents say it has a diversified products and 11percent respondents it has good pricing

strategy.

67

TABLE – 20

TABLE SHOWING THE RESPONDENTS PREFERENCE FOR INCREASING THE

SALES OF NANDINI PRODUCTS

PREFERENCE NO. OF RESPONDENTS PERCENTAGE

DECREASE IN PRICE 36 36

INCREASE IN PRICE 19 19

OPENING RETAIL OUTLETS 45 45

TOTAL 100 100


GRAPH SHOWING THE RESPONDENTS PREFERENCE FOR INCREASING THE

SALES OF NANDINI PRODUCTS

GRAPH – 20

INCREASING THE SALES OF NANDINI PRODUCTS

DECREASE IN PRICEINCREASE IN PRICEOPENING RETAIL OUTLETS

Source: Table 20



products, 36percent of respondents suggests to decrease the price to increase the sales of Nandini

milk products, 19percent respondents suggests to increase the price and 45percent of the

respondents suggests to open a retail outlets.

68

TABLE – 21

TABLE SHOWING THE RESPONDENTS OPINION REGARDING OPENING A

RETAIL OUTLET IN THE REGION OF KOLAR DISTRICT

OPINION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 38 38

GOOD 45 45

CANT SAY 17 17

TOTAL 100 100


GRAPH SHOWING THE RESPONDENTS OPINION REGARDING OPENING A

RETAIL OUTLET IN THE REGION OF KOLAR DISTRICT

GRAPH –21

EXCELLENT GOOD CANT SAY05

101520253035404550

3845

17

OPINION REGARDING OPENING A RETAIL OUTLET

Source: Table 21



products, 38percent of the respondents say excellent for opening a retail outlet in the region of

Kolar district, 45percent of respondents say good and rest 19percent of respondents are not sure

about it.

69

CHAPTER-IX

FINDINGS, SUGGESTIONS and RECOMMENDATIONS, CONCLUSION

a) FINDINGS

Out of the 100 consumers interviewed, 36 percent of the respondents were in the

age of 35-50 years and they are graduates and 42 percent respondents were in the

income group between Rs. 5000-10000.

49 percent of consumers’ attitude towards price of “NANDINI” milk is reasonable,

and 46 percent people say quality and freshness of “NANDINI MILK” is good.

From the survey, NANDINI Brand is the fastest moving brand in the market

followed by Heritage, Swastik, Gold field etc.

Respondents indicated that, consumers giving preference for freshness and quality,

not for price only some of the consumers giving more importance to price.

When we compared to other brand in the market (i.e., Swastik, Heritage, Gold field

etc.,) more percentage of consumers prefer “NANDINI” Brand because its

diversified products and hygienic and quality

45 percent of the consumers suggested opening retail outlets in and around Kolar

district to increase the sales of Nandini milk products.

35 percent of the respondent has ranked KOMUL as a satisfactory in rendering the

products to its consumer.

Respondents indicated that, the package of the Nandini product is at satisfactory

level.

74 percent of the respondents feel that there is a requirement for advertisement for

Nandini milk products and 38 percent of them suggested television is the best media

to advertise.

42 percent of the respondents are aware of the competitive brands of Nandini milk

products and the feel Arogya is the nearest competitor.

45 percent of the respondent’s opinion regarding opening a Nandini outlet in the

region of Kolar district will be good.

70

b) SUGGESTIONS and RECOMMENDATIONS

1. Company should encourage opening more Nandini outlets in and around Kolar district to

boost the sales of the Nandini milk products.

2. Many products like ice creams, badam powder, gulab jamoon mix, full cream milk, etc, is

known to only few respondents so it is suggested to advertise these products so the consumer

come forward to buy these products.

3. Company should provide gift schemes to customers as well as retailers during some special

festivals etc., so it can be possible to remove the other brands in the market.

4. Company should give more commission to retailers compares to other competitors in the

market (i.e., Heritage, Swastik, Goldfield) than, retailers will give more concentration on

selling “Nandini” products.

5. Company must improve the quality of the product and quality of packing, through quality of

packing leakages should be avoided and also improve the sales.

6. Advertisement should be improved in the areas of Malur, K.G.F, Bangarpet and other places

of Kolar District. So, customers are pursuing more. This will help to create a better brand

image and improve its market share.

7. Company must reduce the price if Good life milk is very costly so middle class people are

not forward to purchase Good life milk, if reduce the price; company will increase its

turnover in all the areas.

8. Company should improve the taste and fragrance of Ghee when compared to other Ghee

Brands.

9. For increasing sale of Nandini Product Company must introduce some unique and new

feature in the product and also give new benefits to existing retailers and also for the new

retailers.

71

c) CONCLUSION

Our society consists of heterogeneous people, their value, beliefs attitudes are different from one

another. Some people will give preference for quality and freshness. Some will give preference

for availability, some will give preference only for quantity and thickness of milk the company

should study the attitude of consumers and accordingly should satisfy the consumers, as per as

possible, it should give importance for quality, freshness and price of the milk and try to satisfy

all the category of people. But it is not possible to satisfy the consumers only through the

company but retailers should also co-operate with the company and the consumers but even

though the company takes so many measures then it is also not possible to give 100percent of

satisfaction to the consumers.

1.At present Nandini Milk and Milk products is available in convenient packing of 250grms,

500grms. 1-litre capacity. The pricing policy adopted by the company is cost plus profit

method. They are promoting the product through Hand bills and Neon signboards.

Distribution Network consists of door-to-door delivery and through retailer’s shops. At

present the area covered is Kolar, Tirupati, Palmnair, Chittur and Maharastra.

2.Majority of the respondents were aware of Nandini milk and its product but they don’t prefer it

because of lack of publicity and it is not available in all the places. Those who use Nandini

milk and its product feel that it is almost good. But they were not happy with the packing.

Most of them feel that the price is moderate and more publicity is required.

72

KOMUL

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